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Jakarta Post

Manufacturing decline in 2019 raises concerns about deindustrialization, Industry 4.0

  • Made Anthony Iswara

    The Jakarta Post

PREMIUM
Bali   /   Mon, December 30, 2019   /  04:35 pm
The Jakarta Post Image
Factory fashions: Workers operate sewing machines at a garment factory in Bogor, West Java, in September 2018. (Antara/Yulius Satria Wijaya)

Two issues have been central to the Indonesian manufacturing industry throughout 2019; the sector’s growth continuing to stagnate and the digitalization of industries posing both new threats and opportunities. In particular, the term “deindustrialization” garnered more attention this year following claims made in April by presidential candidate Prabowo Subianto, who argued the country’s manufacturing sector was in decline and was being left behind by its peers. Former vice president Jusuf Kalla later sought to shed light on the situation, saying the declining percentage should not be prematurely perceived as a sign the country was experiencing deindustrialization.  But the numbers don’t lie: while the manufacturing sector’s contribution to GDP remains large, its percentage contribution to GDP only amounted to 19.86 percent last year, stru...