Synergy of green industry with industrial revolution 4.0 in Indonesia

D. Prasaja & M.W. Rini

Polytechnic APP Jakarta, Ministry of Industry, Indonesia

B. D. Yoga

Kumamoto University, Kumamoto, Japan

R. Wikansari

Polytechnic APP Jakarta, Ministry of Industry, Indonesia

ABSTRACT: This study aims to identify and analyze the synergy of the Green Industry with the Industrial Revolution 4.0 which is both programs from the Ministry of Industry and the Government of Indonesia.

characteristics.

1 INTRODUCTION

Industrial development is increasing rapidly, both glo­bally and in Indonesia. In its journey, the current industrial revolution has reached the 4th generation, called Industry 4.0, which is characterized by various characteristics, especially increasingly high technol­ogy and increasingly unlimited information technol­ogy. Since the first industrial revolution recorded in history began in England in the mid-18th century, the other side of industrial development has the effect of decreasing the quality of the environment which is the habitat of humans and other living things.

The Green Industry Movement is increasing because of the growth of industrial technology that has an impact on the environment. The development of the green industry movement in the world cannot be separ­ated from the development of a UN institution called UN-IDO (United Nations Industrial Development Organization) which was established on 17 November 1966.

Based on above, this study is about the synergy of Green Industry and Industrial Revolution 4.0, which we will restrict to include its implementation by the Government of the Republic of Indonesia through the Ministry of Industry program.

2 INDUSTRIAL REVOLUTION 4.0

2.1 A brief history of industrial revolution

Industry 4.0 is continuing a series of industrial revolutions. European Parliament Research Ser­vices in Davies (2015) said that the industrial revo­lution had taken place four times. The first industrial revolution occurred at the end of the 18th century which was a mechanical production based on water and steam (Bahrin et al. 2016). It began to replace human power for industry. The second industrial revolution occurred at the beginning of the 20th century, starting with the introduction of conveyor belts and mass production. The machines are powered by electricity. The use of computer technology for manufacturing automation occurred in 1970 (Prasetyo & Sutopo 2018). This was marked as the beginning of the third industrial revo­lution. In the third industrial revolution, electronic systems and information technology (IT) were used by industry. At present, the rapid development of sensor, interconnection and data analysis technol­ogy has led to the idea of integrating this technol­ogy into various industrial fields. This idea is predicted to become the next industrial revolution. The fourth industrial revolution became public as Industry 4.0 was recognized in 2011 (Bahrin et al.

2.2 Characteristic of industry 4.0

The principles of cyber physical systems (CPS), inter­net and future technology, and intelligent systems with enhanced para-digma human-machine inter­action are applied to industry 4.0 (Sanders et al.

2016). CPS is a technology for combining the real world and the virtual world. This combination can be realized through integration between physical and computational processes (embedded and networked computer technology) in a closed loop (Lee 2008). Industry 4.0 focuses on creating smart products, pro­cesses and procedures that can make activities more effective and efficient (Crnjac et al. 2017). Industry 4.0 is related to the Internet of Things, Internet of Ser­vices, and Internet of Data. This is the essence of industry 4.0. There are six industry principles 4.0 namely interoperability, virtualization, decentraliza­tion, real time, service oriented, and modular (Prase- tyo & Sutopo 2018). Based on research using literature review as a method, there are several char­acteristic approaches to industry 4.0 such as horizon­tal integration, vertical integration, Internet of Things, Internet Service, Internet Computing Cloud Data, Cyber-Physical Systems, new business models, flex­ible production, and cluster concepts (Crnjac et al.

2017). Industrial 4.0 is estimated to have big advan­tages for industries such as rapid product develop­ment, product customization, flexible production, increased productivity, optimality in decision making, and revenue growth (Prasetyo & Sutopo 2018). In conclusion, industry 4.0 is an industrial era in which all entities within it can connect with each other in real time using internet technology and CPS to achieve optimization in every process in the industry.

3 GREEN INDUSTRY BASED ON MINISTRY OF INDUSTRY

Green industry is an industry that in its production process prioritizes efforts to efficiency and effective­ness of sustainable use of resources so that it can harmonize the development of industries with the sustainability of environmental functions and can provide benefits to the community.

Green industry means implementing 4R in its pro­duction process which consists of reduction, reuse, recycling, and recovery. Some of the characteristics of a green industry are the production process using fewer raw materials, supporting materials, energy and water, using alternative energy, using recycled packaging, etc. which produce less waste (Hutahaean 2017).

The implementation of the Green Industry in Indonesia has so far been in the form of government recommendations. The registration of the Green Industry Awards is voluntary by the industry itself. The Green Industry Award is an award given to industries that have made efforts to preserve the use of natural resources. this is done through various stages of selection and verification based on a scor­ing system to be evaluated regularly (Ministry of Industry 2018b). Green Industry Awards are given to every industry that has succeeded in implementing and running its industry in green industry standards.

4 MAKING INDONESIA 4.0 BASED ON MINISTRY OF INDUSTRY

Industry 4.0 can have a direct and indirect impact on Indonesia. The direct impact is to revive the produc­tion sector and regain the position of net exporters. Indirect impacts are increasing the country’s finan­cial strength, increasing government spending, increasing investment, and building a strong econ­omy (Ministry of Industry 2018a).

Figure 1. Direct and indirect impact of industry 4.0 (Minis­try of Industry 2018a).

In making Indonesia 4.0, there are 5 top priority sectors of the industry such as food, textile and apparel, automotive, electronics and chemical bever­ages. Indonesia has set 10 National Priorities to Make Indonesia 4.0 such as material material reforms by redesigning industrial zones, embracing sustainability, empowering small micro-enterprises, building national digital infrastructure, attracting foreign investment, increasing human capital, build­ing ecosystem innovations, investing incentive tech­nology, and optimizing regulations and policies.

Indonesia 4.0 can create a large increase in over­all GDP growth, job creation, and manufacturing GDP contributions. Making Indonesian policy 4.0 also needs to be well coordinated with several stake­holders and policies. Collaboration from govern­ment, industry and education is needed. Making Indonesia 4.0 will trigger immediate action with long-term aspirations based on the focus sector. For food and beverages, the sector’s aspirations focus is establishing the ASEAN food and beverage center. In the field of textiles and apparel, becoming a lead­ing functional clothing manufacturer is the aspiration of the focus sector. Automatically, this is the focus for building export leadership on ICE and EV. In addition, developing leading biochemical producers is the aspiration of the focus sector of the chemical industry. For the electronics industry, the sector aspirations focus on maintaining very capable domestic champions. Immediate actions must be taken by Indonesia such as technology incentives, investor roadshows, vocational schools, and support for small micro businesses.

5 DISCUSSION

The government has set 10 national priority steps in an effort to implement the Making Indonesia 4.0 road­map. In the third priority, as stated by the Minister of Industry, Mr.

Figure 2. The third key national priority for making Indonesia 4.0 (Ministry of Industry 2018a).

Indonesia will strive to meet the sustainability requirements in the future by identifying the applica­tions of technology and green growth opportunities and to promote a conducive environment.

When the government program Making Indonesia 4.0 runs well, either directly or indirectly, processes in the industry are increasingly leading to green industry. The demand for efficient use of raw mater­ials and energy as well as every process become online and real-time, will have a positive impact on the reduction of waste and contamination by industry.

Table 1. Comparison characteristic between industry 4.0 and green industry (Ministry of Industry 2018b).

Table 2. Relationship and influence between industry 4.0 and green industry.

Table 1 show the characteristics of the two pro­grams which will then be compared to connect with each other. The relationship between them shows synergy and relationships for each characteristic seen in table 2 below.

Based on Table 2, there are 27 characteristics which can be matched each other from total 35 characteristics.

6 CONCLUSION

The synergy of the Green Industry with Industrial Revolution 4.0 was 77.1% with at least 27 character­istics that could be matched with each other from a total of 35 characteristic items. The Indonesia 4.0 program from the Ministry of Industry is in line with the Green Industry concept. Collaboration from gov­ernment, industry and education is needed to main­tain this synergy.

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