Prospects of the Manufacturing Sector in Indonesia in 2024
Approaching the year 2024, various trends in the manufacturing sector are predicted to happen. After undergoing significant positive changes in the manufacturing sector in 2023 and making a substantial contribution to Indonesia's economic growth, the government has put even higher expectations for the new year. The government hopes that the growth of the manufacturing sector can reach 7% to position it above 20% of the Gross Domestic Product (GDP).
Here are the predicted manufacturing trends in the year 2024!
Industrial Revolution 4.0
The future growth of the manufacturing industry is being driven by the continued implementation of Industry 4.0 concepts. In 2024, it is projected that Indonesia will reach the peak of the Industry 4.0 revolution, and it is expected that more companies will invest in robotics and smart factory automation to handle repetitive tasks, improve operational efficiency, and reduce overall labor costs. This technological advancement is also anticipated to enable companies to enhance flexibility and rapidly increase production.
Smart Factory
Smart factory is a manufacturing practice that utilizes advanced technology to enhance productivity and quality while reducing production costs. With the implementation of a smart factory, manufacturing businesses can monitor and optimize processes in real-time and virtually.
This allows them to quickly identify and address production issues, improving operational efficiency. Additionally, a smart factory enables better integration among various production systems, such as machinery, software, and human resources, facilitating more effective collaboration in the production process.
In line with the Ministry of Industry's plan in 2023 to increase domestic product procurement in the acquisition of goods and services, smart manufacturing can reduce Indonesia's factories' dependence on foreign suppliers and manufacturers therefore limiting imports of raw materials.
Thus, to realize this ambition, the manufacturing sector in Indonesia can enhance the implementation of smart factories in its facilities. Some smart factory implementations that may see improvement in 2024 include:
1. Artificial Intelligence (AI)
Artificial Intelligence (AI) has already been employed in various industrial sectors, including the financial and insurance industries as the most prominent users.
AI has facilitated businesses by enhancing production capacity, and reliability, and reducing operational and maintenance expenses. The ability of artificial intelligence to proactively predict and solve problems, along with its advantage in minimizing human errors, has become a widely discussed topic among business professionals.
In addition to the financial and insurance industries, according to Indonesia Business Machines (IBM), the use of Generative AI in the manufacturing sector has proven to enhance production in many cases.
Therefore, artificial intelligence has a significant opportunity to experience increased implementation in 2024, driving the growth of the manufacturing sector and the Indonesian economy.
2. Internet of Things (IoT)
The Internet of Things (IoT) enables electronic devices to connect and communicate with each other solely through the Internet. IoT technology can facilitate manufacturing businesses in accessing data analytics and monitoring product quality and production processes in real time. With continuous device connectivity, manufacturing businesses can optimize operational efficiency and enhance productivity.
The Chairman of the Indonesian IoT Association (ASIOTI), Teguh Prasetya, predicts that the IoT market will reach IDR 572.7 trillion. This high forecast is also in response to the growing interest and needs of the Indonesian community.
3. Robotics
One advanced technology that can simplify and expedite manufacturing industry operations is the use of robots. At the Manufacturing Indonesia 2023 event, several companies were seen showcasing a variety of robots.
The use of robots in the production process can reduce dependence on human labor, enhance production efficiency, and decrease the risk of human error. These robots are equipped with sophisticated sensor technology, allowing them to work with high precision and deliver consistent results. Additionally, the use of robots can improve workplace safety by reducing risks.
Other industries such as automotive, chemical, and agriculture have already integrated robots into their production processes. In 2024, the manufacturing sector is expected to follow suit, contributing to the sector's development.
After examining the projected manufacturing trends in Indonesia for 2024, there are many aspects that industry players can prepare for to keep pace with rapid manufacturing technological advancements.
In addition to technology, the country also needs to focus on the implementation of green and sustainable manufacturing processes and prepare a skilled workforce to keep up with technological advancements. This preparation is crucial for the Indonesian manufacturing industry to compete in the global market and produce high-quality products, services, and human resources.
Imajin Manufacturing HUB is committed to continuously innovating in the development of the manufacturing industry to offer cutting-edge technology for project management with real-time monitoring through a web-app online dashboard.
In the new year of 2024, Imajin aims to create solutions for Small and Medium Enterprises (SMEs) and manufacturers in Indonesia by introducing cloud computing-based innovative manufacturing tools and systems. Through an open collaborative manufacturing ecosystem embracing digitization, Imajin's products continuously evolve to provide features that consistently support players in the manufacturing industry.
Moreover, we can also provide technical assistance from simulation processes, and design, to achieving 100% part accuracy in quality improvement. Our engineering, project, and quality teams will meticulously monitor every step to ensure each process adheres to the predefined standards. We can assist you with the design process, machining process, trial process, to product sample checking.
