Engineering and Technology

Over the past 40 years, Indonesia has undergone a significant economic transformation for engineering and technology. Since 1970, the proportion of GDP from agriculture has fallen from 45 percent to around 17 percent.

Indonesia implemented reforms in investment, trade facilitation, and deregulation that support importing new engineering  technology and allow manufacturers to operate more efficiently. The manufacturing sector became a significant source for investment in new engineering and technology growth. By the early 1990s, Indonesia was already considered one of the new “Tigers” among the East Asian economies, along with Malaysia and Thailand. But progress in Indonesia’s engineering and technology sector has slowed considerably after the 1998 Asian Crisis. Only very recently has Indonesia finally seen an increase in investment supporting technology in the manufacturing sector, and unusually high growth in manufacturing output. Engineering and technology, as well as industrial development, are critical in every country.  The government has rolled out five programs that aim to increase annual growth in the manufacturing sector to at least 10 percent by 2020.


Automation

The automation industry grows around 10-15% annually in Indonesia, creating a market worth more than US$15 billion. With Indonesia’s gradual integration into the world economy, automation will play an important role in bringing down costs and increasing the productivity of companies.


Building and Construction

Indonesia’s  construction sector is in the midst of a sustained boom, with both private and public spending on the rise. Asia Construction Outlook notes that 2013 construction spending in Indonesia totaled US$247 billion.


Heavy Industry

Heavy industry in the country has grown significantly since 2008. This is in line with the rapid growth of industrial sectors that use heavy equipment, particularly mining, agribusiness, forestry sectors and the construction industry.


Information Technology

The Indonesian economy is at its healthiest since the crisis in the late ’90s. The once-sluggish telecommunications market has also started to show impressive growth. In 2014,  internet penetration was 16.72 percent, accounting for over 42 million internet users.


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