Friday, April 19, 2024

Hannover Messe 2023: Making Indonesia 4.0, and encourages more investment to Indonesia

Reading Time: 3 minutes
Journalist IBP

Journalist

Mahinda Arkyasa

Editor

Interview

Indonesia has been trusted to be the official country partner at the 2023 Hannover Messe event in Germany for the third time. Followed by 90 participating countries, and many business people from all over the world. Indonesia wants to optimize its industry and export markets as well as mastery of new technologies.

Hannover Messe is the largest annual industrial technology exhibition in the world, organized by Deutsche Messe AG (DMAG) in partnership with countries as the Official Partner Country. Nearly 100 participating countries participated in the Hannover Messe 2023, and were visited by global business people.

The top 10 brands participating in Hannover Messe 2023 are, among others:

  • Amazon Web Services, Inc.;
  • Beckhoff;
  • Cisco Systems, Inc.;
  • Festo;
  • Harting Technologiegruppe;
  • ifm electronic;
  • Lenze Gruppe;
  • Microsoft Corporation;
  • Phoenix Contact;
  • Schneider Electric SE;
  • Siemens; and
  • Yaskawa Electric Corporation.

Making Indonesia 4.0

At the Hannover Messe 2023, a Business Summit will be held followed by business agreements involving Government to Government (G2G), Business to Business (B2B), and Government to Business (G2B) partnership.

Some of the agreements signed by Indonesia are, among others:

  • JDoI of RI-Germany Joint Economic Committee with the Coordinating Ministry for the Economy of Indonesia;
  • JDoI on Cooperation in the Digitalization with the Indonesian Ministry of Transportation; And
  • B2B consists of 18 agreements and MoUs as well as three G2Bs such as machine grants to the Center for Digital Industry (PIDI) of the Ministry of Industry, waste processing for the Mayor of Pekanbaru, and waste processing with the Governor of West Nusa Tenggara (NTB).

At the event, the Indonesian Pavilion was officially opened by Indonesian President Jokowi and German Chancellor Olaf Scholz. 

“We want to present Indonesia’s spirit in navigating future challenges. This phinisi ship has a compass that we call ‘Making Indonesia 4.0,’ as a navigator of transformation in Indonesia,” said Jokowi on April 17, 2023.

According to Jokowi, the acceleration of Indonesia’s industrial transformation will contribute to the rise of the regional economy and the digital economy. Indonesia’s focus on a downstream strategy and a green economy is supported by abundant natural resources, large market demographics, and a stable economy.

With this advantages, Indonesia has the potential to become a big player in the electric vehicle (EV) industry. 

“Indonesia is very open to investment and cooperation in building downstream industries in Indonesia. Until 2040, there are 21 commodities on the downstream roadmap, projected to reach an investment value of US$ 545.3 billion,” Jokowi said.

In addition, Indonesia will become a member of the “cooperative climate club,” with a target of decarbonizing the electricity sector by 2025. “Germany will encourage investment among the G-7 countries to Indonesia which reaches € 10 billion,” said Olaf Scholz, Chancellor of Germany.

Indonesia’s growth has generated high investor confidence to invest in Indonesia

According to Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, the Hannover Messe 2023 will help to encourage industries by opening up more access to exports of Indonesian products. Indonesia’s focus on exports had helped the country’s economy to grow during the pandemic. In addition, the event will allow Indonesia to master new technology and increase productivity.

“Especially in the industrial sector itself, in the short term, many policies will take effect starting this year, such as downstreaming of the mineral and coal sector apart from nickel products. On June 2034, bauxite, and others minerals will be prohibited to be exported in raw form. There must be downstream process that provides added value in Indonesia. So, we believe the role of the industrial sector will be even higher. Maybe the key word is, Hannover Messe 2023 must be successful, industry revives, the economy grows, and Indonesia progresses,” said Moegiarso.

The government will encourage higher investment and industrial development in the manufacturing and processing sectors. This investment strategy is to increase post-pandemic national economic growth, and in the midst of global economic uncertainty.

Confidence in the international world in the strength of the Indonesian economy has also been reflected in Indonesia’s election as President of the G20 in 2022, and Chair of ASEAN in 2023. Also, being the official partner for Hannover Messe, who previously served in 1995 and 2021.

Currently, the industrial economy is showing economic growth which will reach 5.31% at the end of 2022. This growth condition has generated high investor confidence to invest in Indonesia.

“Currently, Indonesia’s position in various international forums is very good, including at the Hannover Messe 2023, that our trust and credibility is very high since the holding of the G20 yesterday which resulted in the Leaders’ Declaration. Even in 2020/2021, and 2023 we are still entrusted as Official Partner Country. It’s not easy, only big countries, even in our new ASEAN, so this is a real measure of Indonesia’s position in the eyes of the international community,” said Moegiarso on April 14, 2023.

Journalist IBP

Journalist

Mahinda Arkyasa

Editor

 

Interview

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