The Reason Why IoT good for Indonesian Industrial

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Photo from Kemenperin.com

The Ministry of Industry fully supports telecommunications operator companies in Indonesia that can build innovation ecosystems. This is to develop digital technology as a future solution in an effort to improve the competitiveness of national industries. “To implement Industry 4.0, one of the supporting factors that support digital infrastructure. One of them is the internet of things (IoT), “Industry Minister Airlangga Hartarto said at the inauguration of the IoT Lab named X-CAMP, which was built by PT XL Axiata Tbk in Jakarta, Tuesday (11/13).

The Minister of Industry explained, related to five digital technologies as the basis for the implementation of the industrial revolution 4.0 in Indonesia, namely IoT, artificial intelligence, usable devices (augmented reality and virtual reality), sophisticated robotics, and 3D printing. “So, today we focus on the internet of all things. This is what our young generation must master, “he said.

Networking devices, devices, household appliances, and other items planted with electronic devices, software, sensors, actuators, and connectivity that make it possible to connect to the internet network and collect and exchange data. In the road map for Making Indonesia 4.0, one of the priority programs that needs to be done is to build a national digital infrastructure. In fact, based on research from McKinsey & Company, digital infrastructure in Indonesia will create new business opportunities of up to USD150-200 billion in 2025-2030.

“In addition, Indonesia is also one of the countries with the highest internet users in the world, reaching 143.26 million people or more than 50 percent of the total population in Indonesia,” said Airlangga. Therefore, to achieve the Making Indonesia 4.0 target, 17 million workers are needed to understand digital technology. “The big aspiration is optimism for the future, with a target in 2030, Indonesia will be among the 10 countries that have the strongest budget in the world. With a note, doubling income, exports reaching 10 percent, and the research budget up to two percent, “he explained.

The Minister of Industry explained, carrying out the industrial revolution 4.0 was needed and carried out jointly by all countries. This collaboration “More, currently there is no one country that can claim to be ready in industry 4.0. So, everything is starting together, “he said. Airlangga added, releasing the IoT market in Indonesia is estimated to grow rapidly and its value will reach Rp444 trillion in 2022. The value is contributed from content and applications amounting to Rp192.1 trillion, the platform is followed by Rp156.8 trillion, IoT devices Rp56 trillion, and networks and gateways IDR39.1 trillion.

In the same period, based on Indonesia IoT Forum data, there are likely to be around 400 million sensor devices installed, of which 16 percent are in the manufacturing industry, 15% percent in the health sector, 11% insurance, 10% banking and securities, and the sector retail, gossip, computer repair 8% each. Furthermore, around 7% in government, 6% in transportation, 5% in utilities, and real estate and business services and agriculture are 4% each, and the remaining 3% in housing and so on. At present, the government is developing a Palapa Ring or a 36,000 km fiber optic project in 440 cities in Indonesia, to support the achievement of equitable high-speed internet access in 2019.

With the completion of the Palapa Ring in 2019, it is hoped that connectivity problems in Indonesia can be resolved. That way, there will be no problems in IoT connectivity either with direct connectivity (from end devices to server / cloud) or from gateway to server or cloud. “IoT technology has indeed become a solution. In fact, the manager of the industrial area has been thinking about developing this technology as a pilot plant immediately. And, of course this will be the back of bone for the national industry going forward, “he said.

Hendra Wiguna as Microsoft Indonesia’s Strategic Technology Partner said that the adoption of IoT will affect the potential of the global economy up to USD 3.9 T-USD 11 T in the year 2025.

Therefore, for the manufacturing industry, the use of IoT is non-negotiable. Following is Hendra’s explanation related to the importance of the application of IoT in the manufacturing industry.

1. Create a field service that is connected

IoT will provide new services that connect smart products from the manufacturing industry with efficient technicians to provide proactive and predictive services. IoT can turn service centers into profit centers.

2. Strengthening the synergy between the sales and service team

Sales and service are some important parts for the manufacturing industry that plays a role in providing the best service for customers. With the help of IoT, for example with the application of Dynamics 365, sales and service will be increasingly collaborated and synergized well. The application of IoT will also increase customer involvement and ultimately drive sales.

3. Realizing the factory of the future

IoT’s presence in the manufacturing industry will encourage the birth of smart factories of the future. IoT will improve employee skills in using AI (Artificial Intelligence), encourage operational activities, as well as detect defects and solve production problems in real time at the factory.

4. Creating smart supply-chains

Customer satisfaction is a major milestone for the manufacturing industry. Therefore, supply chains in the manufacturing industry must synergize smartly with each other. The application of IoT will result in integrated business planning which ultimately helps the manufacturing industry in making strategies, production, and ensuring that the delivery of goods and services goes well into the hands of consumers.

5. Increase product innovation

One of the things that excels at IoT is the existence of cloud computing technology. With this technology, all stakeholders will be more easily connected and collaborate wherever and whenever. Strong collaboration between stakeholders will create products that continue to innovate in accordance with the challenges of the times in the Industrial Age 4.0.

The President Director of XL Axiata, Dian Siswarini said, the concept of the IoT Open Lab and facilities currently owned, X-Camp is the most comprehensive IoT Innovation Lab owned by telecommunications operators in Indonesia. X-Camp is also the only IoT Lab incorporated in the GSMA Lab Alliance in the Southeast Asia Region. X-Camp will actively develop the potential of local resources, including those from universities.

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