COMPUTER INDUSTRY DEVELOPMENT

Development of the “Software” Industry

The Ministry of Industry (Kemenperin) continues to encourage the development of the national software, content and animation industry, as part of its readiness to face the 4.0 industrial revolution that is being pushed. This is at the same time to catch up with the national industry from other ASEAN countries.

Minister of Industry Airlangga Hartarto said that his party had issued Minister of Industry Regulation Number 29 of 2017 concerning Provisions and Procedures for Calculation of Domestic Component Level Value (TKDN) for Cellular Phones, Handheld Computers, and Tablet Computers. Through this regulation, the Ministry of Industry not only emphasizes the hardware TKDN scheme, but also software and investment TKDN.

Development of the “Software” Industry

The Ministry of Industry (Kemenperin) continues to encourage the development of the national software, content and animation industry, as part of its readiness to face the 4.0 industrial revolution that is being pushed. This is at the same time to catch up with the national industry from other ASEAN countries.

Minister of Industry Airlangga Hartarto said that his party had issued Minister of Industry Regulation Number 29 of 2017 concerning Provisions and Procedures for Calculation of Domestic Component Level Value (TKDN) for Cellular Phones, Handheld Computers, and Tablet Computers. Through this regulation, the Ministry of Industry not only emphasizes the hardware TKDN scheme, but also software and investment TKDN.

“Through this software scheme, we want to spur increased innovation in so as to support sustainable industrial development,” he said at the Bandung Techno Park (BTP) Inauguration event at Telkom University Bandung, West Java, Tuesday (16/1).

He explained that telematics products provide tremendous market space in Indonesia as seen in smartphone sales of up to 60 million units per year. The technology cycle is very fast, especially smartphones, where every six months there is always a product update, so it requires the power of research and technological innovation. Facing this opportunity, the government is not only encouraging the growth of the hardware industry but is also encouraging the development of the software, content and animation industries.

Currently, the Ministry of Industry encourages the establishment of research and innovation centers for electronics and telematics products in five regions. In Bandung, there is the Bandung Techno Park, then in Denpasar there is the TohpaTI Center, the IKITAS Business Incubator in Semarang, the Makasar Techno Park in Makassar, and the Mobile Design Center in Batam, Riau Islands Province.

Reference Model

Especially in Bandung, the government is trying to strengthen and encourage the existence of BTP to become a role model (reference model) for the development of other techno parks in the country.

In addition, BTP can become an icon, not only for the city of Bandung but also for the province of West Java, and even become a national icon for the development of the information and communication technology industry.

The Central Statistics Agency (BPS) stated that the production growth of the micro and small manufacturing industry in the second quarter of 2019 increased by 6.19% (yoy) driven by a 24.36% increase in production of the computer, electronics and optical industries.

According to the Head of the Central Bureau of Statistics, Kecuk Suhariyanto, (yoy) other micro and small manufacturing industries (IMK) that rose were; printing and reproduction of recording media 16.23% (yoy), non-machinery and equipment metal goods industry rose 9.79% (yoy), tobacco processing industry experienced an increase of 9.68% (yoy), and beverage industry rose 9.67 % (yoy).

In quarter III/2019 (qtq), IMK increased by 0.29% compared to quarter II/2019 (qtq), in quarter I/2019 it increased by 4.55% against quarter IV/2018.

Suhariyanto detailed that the IMK that experienced the highest increase was; tobacco processing industry rose 42.25% (qtq), base metal industry rose 9.06% (qtq), machinery and equipment industry rose 7.55% (qtq), chemicals and chemical goods industry rose 7.38% (qtq), and the motor vehicle industry rose 6.42% (qtq).

Meanwhile, the declining growth of IMK also occurred in several sectors. The electrical equipment industry contracted 17.23% (qtq), the leather, leather goods and footwear industry contracted 7.45% (qtq), the clothing industry fell to 6.06% (qtq), the furniture industry fell to 3.95% (qtq), other processing industries fell 1.80% (qtq).

BPS recorded IMK production growth with the highest rate of increase occurred in East Nusa Tenggara Province at 30.32% (yoy). Meanwhile, the province that experienced the largest decline was the Province of D.I. Yogyakarta by 0.002%.

Meanwhile, in terms of (qtq), the highest growth rate was in North Kalimantan Province at 15.14%. Meanwhile, the province that experienced the biggest decline was North Sumatra, which contracted 3.0% (qtq).

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