Hannover Messe 2021: What is The Impact for Indonesia?

by | Apr 28, 2021 | Study Insight | 0 comments

Analyze the event prospect for the Indonesian industrial sector in the future.

Source: Indonesia’s Ministry of Industrial

Every year, one country will have a chance to be spotlighted at the world’s leading industrial technology show: Hannover Messe. Indonesia is being featured as the country show’s official partner country and the first one in Southeast Asia countries. The country resource-rich belongs to the Association of Southeast Asian Nations (ASEAN) and has the most crucial economy within the group. Through this event, Indonesia launched the initiative “Making Indonesia 4.0” to revitalize manufacturing with the introduction using Industry 4.0 concepts.

The Hannover Messe 2021 may be an excellent opportunity for Indonesia to manifest and enhance its industrial vision and introduce the roadmap for achieving the mission for Indonesia 4.0 globally. Many sectors have got an enormous impact from the effect of Hannover Messe. Thus, it is essential to find out more about the impacts of Hannover Messe 2021 for Indonesia if you are interested in starting your business in Indonesia.

Hannover Messe 2021: Making Indonesia 4.0

The Hannover Messe is one of the largest trade shows in the world which is usually held at the Hanover Fairground in Hanover, Germany. In this COVID-19 pandemic situation, the event was held online on 12-16 April 2021 with the entitled “Hannover Messe 2021: Digital Edition”. As the result of a long way curation process by the Indonesian government, 155 potential participants become official participants of this event and consist of large-scale industrial companies, small and medium-sized enterprises (SMEs) and start-ups, industrial estates, industry associations, government-owned enterprises, as well as ministries and institutions.

This year, there are four main goals for Indonesia in its contribution to this event, namely presenting making Indonesia 4.0, promoting industrial corporation, promoting foreign investment and export, and lastly, bilateral relations between Indonesia and Germany. The Making Indonesia 4.0 initiative provides great potential to multiply workforce productivity, increase global competitiveness and raise the share of the global export market. Higher exports will open more jobs so that domestic consumption will be stronger and Indonesia can become one of the top 10 world economies.

Seven industrial sectors have been designated as the priority focus of Making Indonesia 4.0, namely the food and beverage industry, the textile and clothing industry, the automotive industry, the chemical industry, the electronics industry, the pharmaceutical industry, and the medical device industry. These seven sectors were chosen because they can contribute 70% of the total manufacturing Gross Domestic Product (GDP), 65% of manufactured exports, and 60% of industrial workers (Press Release Kontan, 2021).

Developing Industry Through This Year Hannover Messe

Indonesia has always been committed to building many strong industrial sectors to strengthen the nation’s economy. These sectors were chosen to be the focus after going through an evaluation of the economic impact and implementation of eligibility criteria which included GDP measure, trade, potential impacts on other industries, the amount of investment, and the speed of market penetration. Here are the highlights of these sectors.

Health Sector

For Indonesia, especially the health sector, this event is an opportunity to present the face of the Indonesian health industry in the eyes of the world in an effort to transform the economy, especially in industry 4.0 to restore the national economy during the COVID-19 pandemic (Liputan6, 2021). According to Indonesia’s Ministry of Health (2021), the priority sector in this field is the pharmaceutical and medical device industry. Also, the government introduced breakthroughs that have been made by them to increase wider access to health services for all Indonesian people, especially during this pandemic through the telemedicine program or known as the Sehatpedia application.

The health sector is the sector most likely to benefit from the Industrial Revolution 4.0 due to the merging of physical, digital, and biological systems. It may also be the sector that is least prepared to accept it by combining Artificial Intelligence (AI) in the form of a machine that functions to diagnose certain diseases or examinations, wearable devices have several uses such as assessing sleep patterns, measuring heart rate, blood sugar levels and finally Augmented Reality (AR) and Virtual Reality (VR), serves as a tool to change the way patients are treated and cared for.

Digital and Telecommunication

For Indonesian state-owned telecommunication company, PT Telkom Indonesia (Persero) Tbk or Telkom, Hannover Messe 2021 is one of the important moments to promote the state-owned enterprise as a digital telecommunications company with a focus on three digital business domains, namely digital connectivity, digital platform, and digital service. In the digital era and the COVID-19 pandemic, Indonesia’s current challenge is to develop digital sovereignty, accelerate Indonesia’s digitalization, build a digital economy, and encourage domestic digital content to host in its own country.

Telkom wants to show its readiness and commitment to accelerate the realization of the digitalization of Indonesia. Various superior products and services displayed by Telkom, including IndiHome fixed broadband service, BigBox big data platform, IoT service solutions, Telkomsat satellite services, and digital solutions for various ecosystems, from Wonderin for tourism ecosystems to the medium MSME Digital Market (PaDi) as ecommerce aggregator application platform for MSMEs.

Green Development

In the Hannover Messe 2021, Indonesia President Joko Widodo was mentioned to emphasize three main aspects in preparing Indonesia’s Industry 4.0 roadmap. Namely, including some moves like strengthening human resources, creating a conducive investment climate, and investing in green development. The pandemic may be a momentum to hold out green development. Thus, several breakthroughs are made in Indonesia, including biodiesel or green diesel development from palm oil and, therefore, installing solar panels. These projects also will create new jobs while reducing greenhouse gas emissions. With this project, consistent with Nickel, the government has set a renewable energy mix target of 23% by 2025 and 31% by 2050 (Antara News, 2021).

For this reason, Pertamina, an energy state-owned enterprise, is expanding its involvement within the Indonesian energy industry by increasing its contribution to the advancement of the energy mix. Pertamina converted refineries to supply green fuel like green diesel, green avtur, green gasoline, and continuing bio-energy development like biomass and bioethanol to realize this target. Pertamina also optimizes the installed capacity of heat, also because of the utilization of green hydrogen. Collaborating with several other Stated-owned Enterprises (SOEs), Pertamina has to make another strategy by taking a strategic role within the Electric Vehicle (EV) battery and energy store ecosystems integration in Indonesia.

The Whole Impact for Indonesia

Hannover Messe 2021 has impacted many Indonesia sectors, but there is another impact for the whole country itself, including strengthening partnership between two countries, the benchmark towards the newest technology, and also there will be an impact for the economic regions in Indonesia, an industrial park system that will be a new thing for Indonesia.

Opportunities for benchmarking the newest technology

Hannover Messe in Germany will open the worldwide industry’s perspective toward Indonesia’s enormous potential to encourage partnerships before Industry 4.0 and offer opportunities for benchmarking the newest technology. The chance presented to Indonesia, because the official partner country at the 2021 Hannover Messe, must be optimally utilized to ink business agreements, forge industrial cooperation, draw investment, and also by driving the implementation of Industry 4.0 in Indonesia as a part of the national economic recovery. 

The pre-conference was organized to supply opportunities to local industries in existing prioritized sectors that are currently transforming to Industry 4.0 to demonstrate their successful journey in implementing Industry 4.0. Some experiences and achievements within the path to improving Indonesia Industry 4.0 are expected to trigger industrial players in Indonesia also to implement Industry 4.0 (Antara News, 2021).

The smart industrial park 

The Smart industrial park refers to the economic area development concept through the digital transformation that enhances the belief of the green industrial area. It is often achieved by utilizing digital technology and innovation in line with the sustainable development principle, including carbon emission reduction and the circular economy.

In 2021, Indonesia has 128 industrial areas operating. Through this pre-conference, the economic regions in Indonesia are expected to implement the Smart industrial park concept so that an efficient, environment-friendly, and sustainable industry is achieved. The world is recently facing the age of accelerated digitalization (Antara News, 2021).

Create more strategic cooperation opportunities for the two countries

Indonesia may be a strong partner country for Germany. The partnership between Indonesia and Germany happened many times, including organizing international exhibitions at the Hannover Messe and other events, like the Berlin international tourism exhibition. For Germany, Indonesia may be a dream destination. That is one of the explanations Indonesia has been a partner country in international tourism exhibitions.

Indonesia is not only referred to as a tourism destination and the proper country for innovation developments, technological transformations, and vocational education. Therefore, the invitation of Indonesian President Joko Widodo to partner in completing digital transformation within the archipelagic country got a very warm welcome for Germany (Indonesia Window, 2021).

BRIGHT Indonesia as Perfect Local Partner

The partnership between Indonesia and Germany is becoming more strengthened. With these exhibitions, cooperation from many industries in Indonesia has been dealt. Many opportunities will show up in the future. So, this will be the right time to invest in Indonesian industries. However, despite the wonderful opportunities that Indonesia will offer during this event in the future, it is crucial to have the right local partner to open a business or invest in Indonesia.

BRIGHT Indonesia is a perfect partner for your company. We will assist you on the ground, including virtual assistant during the mission, logistic arrangement, and communication of every detail. It can make your company focus on developing partnership cooperation without thinking further about the hassle during the business trip.

BRIGHT Indonesia provides several services such as Business Partnership Engagement, Management and Strategy Consulting, Foreign Direct Investment Promotion, Business Registration and Establishment, and Market Insight Research services that can help you in expanding and developing your business by identification of potential partners as well as obtain the work and stay permit in Indonesia (expatriates utilization plan (RPTKA), expatriates utilization permit (IMTA), limited stay permit (KITAS)) easier. 

The domain of our strategy consulting services focuses on supporting private sector clients with the development of corporate/business unit strategies and helping public sector organizations with public policy, training and assisting our clients entering FDI source countries to gather investment for our client’s local markets. 

We also help your company registration by becoming a representative office with the rights to trade and by limited liability foreign-owned companies and also we will help your company with a full report of market insight research.

BRIGHT Indonesia always strives to give excellent services designed to fulfil your company’s needs with experiences in assisting multiple global clients in entering Indonesia and Southeast Asia Market. These collaborations are proof of our unrivalled service. 

For more information, email info@brightindonesia.net.

*This article is Co-written with @raniasavira.

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