The Ministry of Industry (Kemenperin) pushed Batam into a center for the development of a high value-added electronic industry cluster.
This effort is to support the implementation of Making Indonesia 4.0, as the electronics industry is one of five manufacturing sectors that will be piloted in the application of technology in the fourth industrial revolution era.
“Up to now that it has developed in Batam it’s shipbuilding industry, which also supplies marine offshore. This sector is affected by the price cycle of petroleum, “said Minister of Industry (Menperin), Airlangga Hartarto, during a working visit in Batam, Riau Islands, Friday (13/4).
With the decline in world crude oil prices some time ago, the growth of shipyard industry sector in Batam had decreased. “Currently, Batam’s economy is only two percent. To that end, we are spurring the competitiveness of electronic-based industries. In addition, which is also a potential is the maintenance industry, repair, and overhaul (MRO), “said Menperin.
Great opportunity to advance the electronics industry in Batam, is believed Airlangga, because in the city there are industrial areas that 70 percent filled by electronics manufacturers and producers of various supporting components. “This is what we will push the cycle to complement the electronics industry in Batam, from the recycle industry to the high added value,” he said.
For example, in the Batamindo industrial area, PT Infineon Technologies has been established since 1999 to produce semiconductors and system solutions for the needs of electronic components in the automotive, communications and energy sectors. One of the excellent products of this German company is the microelectronics applied to the vehicle powertrain for the efficiency of electric or hybrid engines.
“The company is the top three in the world. In the energy field, its products are number one in the market. They are able to meet the needs for electronic components power plant, smartphone and automotive, “said Menperin. In fact, other products from Infineon, added Menperin, can also be applied to support the system of internet of things, which became one of the characteristics of industrial technology 4.0.
Globally, Infineon has 36 R & D centers and 18 factories. Infineon’s profit from global semiconductor product sales in 2017 is estimated to reach USD414 billion, up from last year’s earnings of USD339 billion. In the Asia Pacific region, Infineon absorbs a workforce of 18 thousand people, with contributions from Batam about 2,000 employees.
To optimize the ability of the electronics industry in Batam, according to Airlangga, it continues to attract more investors to deepen their industrial structure and increase the added value of its products especially to meet the export market.
“Most of the industries in Batam are for global market, because their potential is close to Singapore and its location is very strategic, so it should be able to grow higher,” said Minister of Industry while conveying that the electronics industry market for automotive parts is still quite large.
These opportunities are in line with government efforts that are boosting the vehicle sector, such as the development of electric cars. In addition to the electronics industry, the automotive industry is also designated as a pilot sector of the implementation of Industry 4.0, followed by food and beverage, chemical, and textile and apparel industries.
Furthermore, high value-added electronic components such as those used in smartphone devices. Moreover, currently more and more gadget users, so as to encourage Batam to realize industrial clusters that generate multiplier effect. “Batam is so outsourcing for smartphone production. The contents of the smartphone there chips, and chips that have been produced in Batam, “he added.
Menperin mentioned four strategic steps that have been prepared and will be run in an effort to accelerate the development of electronic industry in Indonesia to be able to enter the era of Industry 4.0, which attracts leading global players by providing attractive incentive packages, developing the ability to produce high value-added electronic components.
Furthermore, improving the competence of domestic workers through various training programs to become more skilled and innovative according to the needs of today’s industrial world, as well as developing leading domestic electronic industry players to encourage technology transfer to other similar industries.
“We are also continuously working to make the electronics industry in Indonesia reduce dependence on imported raw materials or components. To that end, we are spurring the domestic electronics industry to not only concentrate on assembly, but also engage in high value-added value chains, “he explained.
Besides visiting Batamindo industrial area and reviewing PT Infineon Technologies, in ag the Minister of Industry and Trade of the Republic of Indonesia, at the Coordination Meeting of the Government, Regional Government and Bank Indonesia. The MROP Industry Development on the same day, Minister Airlangga continued its activities to directly observe the aircraft maintenance and repair industry MRO) belonging to Lion Group, namely Batam Aero Technic (BAT) in Hang Nadim Airport area, Batam. With standing on an area of 28 hectares, in addition to being a workshop for maintenance and maintenance of aircraft, BAT also has aircraft test facilities.Menperin said the government is encouraging the growth of MRO industry in Indonesia. This is because there is still a lot of potential for the development of this sector which is integrated with several airports in the country. “Like the direction of President Joko Widodo, the aircraft maintenance industry is very important. Indonesia should have a high competitiveness and this becomes our great opportunity, with many number of airports. Because, if there are foreign aircraft damaged, can be treated by our workers, “said Airlangga.Menperin added, the domestic aviation industry continues to grow and experience significant growth. This is indicated by an increase in the amount of air traffic, both passengers and the flow of goods. “The growth of domestic air passengers increased by an average of 15 percent per year over the last 10 years, while the number of international air passengers increased by about eight percent and Indonesia was the third largest country in Asia in the purchase of aircraft after China and India, “he explained. In the future, MRO industry business is also quite promising as the increase of tourism and economy in the country. In addition, the aircraft maintenance industry can lower the cost of the aviation industry, one of which is the cost of importing aircraft components.