The target of the 5 percent global share is ambitious in the current situation but not impossible. There are lots of challenges, but the government of the country has already taken lots of positive and potential initiatives to achieve the goal.
The policymaker thinks the high-tech revolution to improve Indonesia’s RMG sector and increase competitiveness for other industries. Recently the Indonesian government officially launched the roadmap called “Making Indonesia 4.0”. Industry 4.0 is a term that refers to the fourth industrial revolution in manufacturing and industry.
The Making Indonesia 4.0 strategy highlights the technological advancements, including the hi-speed internet, artificial intelligence, human-machine interface, 3D printing, robot and sensor technology, to boost industrial capacity and rapid change of production output.
RMG is one of the major priority sectors of Indonesian and it can become a global leader under the roadmap, with manufacturing forecasts to account for 21 to 26 percent of GDP by 2030, up from 18 percent in 2016. It will make seven million to nineteen million new jobs by 2030 and that will contribute a sustainable GDP growth 1 to 2 percent.
These dramatically huge technological changes influenced by the Chinese and American Trade war will increase competition for China. Chinese investors are already in pressure on the domestic market for high wages. On the other hand, the American tariffs on the Chinese goods are “To pour water on a drowned mouse.”