The Future of Indonesian Use of Industrial Robot

by | Feb 28, 2023 | Market Research | 0 comments

How is the industry will be automated by industrial robots in the future? How is the Indonesian government preparing automation in its domestic industries?

Industrial Robot
Source: Unsplash

According to the data from, the market of the robotics industry is estimated to be worth USD 23.67 billion in 2020. It is predicted to continue growing to USD 74 billion in 2026 at a CAGR of 20.4% during the period 2021 to 2026. Robots are becoming extremely popular both in the field of manufacturing and non-manufacturing worldwide.

In August 2022, Hyundai Motor Group invested USD 400 million in Boston Dynamics to advance artificial intelligence and robotics. The automation systems market in Indonesia is expected to record a CAGR of 8.5% from 2023 to 2028. Increased government support to promote automation systems in various industries, increased demand for automation in various manufacturing sectors, increased innovation in industrial robotics, and increased development technology in production.

The demand for mass production and related supply chains to meet a growing population is an important factor in the growth of the process automation market in Indonesia. The Indonesian government itself is implementing Industry 4.0 through the Making Indonesia 4.0 plan drawn up by the Ministry of Industry, which is expected to encourage the use of automation technology in the industry.

What is the potential of the industrial robotic industry and its demand in Indonesia? What is the trend of automation of industry that happening in Indonesia? 

The Growth and Potential of the Industrial Robots Industry Globally

Covid-19 has had an impact to become a technology accelerator for many industries. Automation has enabled many projects to continue or continue faster and has proven that long-distance work is an effective way to maintain operations while reducing costs. Beyond that, said that the handling of Covid-19 is also increasingly effective and efficient through various robotic technologies which include cleaning and disinfection of servant robots.

Increased demand for uninfected people has opened a new horizon for this service robot. Therefore, most manufacturers register new disinfection robots for sale. Based on data from, the explosion of the global industry of robot delivery was mostly driven by the demand for the automotive and electronic industries, each of which contributed 23% and 31% of the new installation in 2020.

Therefore, the use of industrial robots is very high, especially in countries with automotive industries and strong electronics, such as Japan, China, Germany, South Korea, and the United States. In South Korea, there are more than 930 robots for every 10,000 production workers, seven times the global average. According to, many manufacturing companies have used robots in their operations to increase efficiency, and productivity and improve the quality of their products. 

The Ford Motor Company factory in Sanand in India uses about 450 robots to paint vehicles and bodywork. Moreover, Maruti Suzuki India uses at least 5,000 robots in any of its factories. Siemens also recently partnered with Google Cloud to integrate Google Cloud and AI/Machine Learning technologies into their factory automation solutions.

In March 2022, Mitsubishi also developed a robotic system that could be controlled with voice commands and operate as fast as humans. Various companies around the world have used robot automation in their warehouse operations to reduce working capital costs, such as Alibaba which has reduced labor significantly by up to 70% by adding automatic robots to one of the warehouses.

Accelerating the Industrial Revolution, the Trend of Using Industrial Robots in Indonesia is Increasing

Based on data from, Indonesia has seen an increase in the use of robots in the industry. The use of industrial robots in Indonesia has increased by around 20%. Most robot users are coming from the food industry. In 2017, the number of robots in Indonesia was around 950 and jumped to 1,200 the following year. This is a sign that Indonesia can start adopting robots in helping its production operations.

According to the results of research conducted by McKinsey, Indonesia ranks second in the optimism of the implementation of industry 4.0 with a value of 78%. Indonesia was outperformed by Vietnam with a value of 79%. Under Indonesia, there was Thailand with the optimism of industry application 4.0 value is 72%, followed by Singapore with a value of 53%, the Philippines with a value of 52%, and Malaysia with a value of 38%.

The research also shows that Industry 4.0 will provide a significant impact on the manufacturing industry in Indonesia. For example, digitalization can add USD 150 billion to Indonesia’s economic output in 2025. Especially around a quarter, or worth USD 38 billion, originating from manufacturing. said that the Indonesian market has great potential because the use of robots in the Indonesian manufacturing industry is generally still low. The level of use of robots in the Indonesian industrial world is five robots per 10,000 employees, which means there are five robots operating for every 10,000 employees. This situation is not much different from countries such as the Philippines and India, with an average of 3-4 robots per 10,000 employees.

Several Potential Industries Carrying Out Robotization in Indonesia said that the use of robots has been started for a long time in Indonesia, but still balances in the automotive industry where robots are used in very dangerous production processes or require precise results, such as painting that endangers health. The robotization process in Indonesia has been running, but its application still takes into account the use of human solutions.

This means that not all human power has been eliminated. Robots have been used in the Indonesian cigarette industry for quite a long time. For example, Sampoerna has used robots in white cigarette production, and many companies have integrated robots with humans. Another example is the underground mining sector in Papua, where robots are also used in the mining process to replace humans for security reasons. said that the Making Indonesia 4.0 Program is implemented through the Ministry of Industry aiming to provide clear directions and strategies for the development and digitization of the Indonesian industry going forward. Meanwhile, Making Indonesia 4.0 includes five target industries and 10 national priorities to strengthen Indonesia’s industrial structure.

The five industries prioritized by the government in Making Indonesia 4.0 are the food and beverage, textile, chemical, electronics, and automotive industries. Where these five industries have contributed 60% of Indonesia’s GDP and exports. The great potential of Indonesia’s industrial robot industry has attracted many global corporations to establish their operation in Indonesia. Here are three international key players operating in Indonesia.

1. Honeywell International, Inc.

Honeywell International, Inc. is a software company headquartered in Charlotte, USA, that provides industry-specific solutions for products, services in the aerospace, and automotive industries. It operates through the segments of aviation, housing, and construction technologies including high-performance materials, technologies, safety, and productivity solutions. With 34,000 employees worldwide, Honeywell will generate USD 34.4 billion in revenue, and USD 5.5 billion in profit by 2022, with a balance sheet total of USD 64.5 billion.

2. Siemens AG

Siemens AG is a global powerhouse headquartered in Munich, Germany. Focused on power generation and distribution, smart infrastructure for buildings, distributed energy systems, automation, and digitization of process and manufacturing industries. For more than 160 years, the company has innovated and inventoried technologies to support America’s manufacturing, energy, healthcare, and infrastructure industries. Siemens with 303,000 employees successfully generated USD 76.5 billion in revenue, USD 6.6 billion in profit in 2022, and a balance sheet total of USD 64.5 billion, with total assets of USD 164.2 billion globally.

3. Schneider Electric Co.

Schneider Electric SE engages in the digital transformation of energy management and automation. The energy management segment uses complete and comprehensive technology supported by EcoStruxure. The industrial automation segment includes industrial automation and industrial control functions for discrete, process, and hybrid industries. According to the data from Forbes, Schneider Electric will generate USD 34.2 billion in revenue and USD 3.8 billion in profit in 2022 with 128,000 employees, and USD 62 billion in assets worldwide.

Enter The Indonesian Industrial Robots Market with BRIGHT Indonesia

Because of the huge impact of the industrial robots industry in Indonesia, of course, it takes a lot of in-depth research about the industrial robots market in Indonesia. So, to enter the Indonesian market, you need the right local partner to assist you.

BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.

BRIGHT Indonesia provides several services such as Market Insight Research, Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:

  1. Provide assistance for you in expanding and developing your business by identification of potential partners.
  2. Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arranging business meetings, and acting as a liaison.
  3. Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
  4. Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.

For more information, email


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