Jakarta, CNBC Indonesia – Industrial automation or simply factory operation is said to be a phase that must be faced by the manufacturing industry, including the processed food and beverage industry in Indonesia. The phenomenon of factory automation using more modern and automated machines is said to be part of factory efficiency efforts.
“Efficiency is a normal thing for companies to do. With efficiency they can still expand,” said General Chair of the Indonesian Food and Beverage Entrepreneurs Association (GAPMMI) Adhi S Lukman to CNBC Indonesia, quoted on Thursday (23/11/2023).
“But, I am sure there will be no wave of layoffs (layoffs) because the food and beverage industry itself is still growing. Investment is also still growing, both foreign and domestic,” he added.
According to Adhi, currently there are around 4 million direct workers in the processed food and beverage industry.
“Automation in this industry will become a necessity, it can’t be done or not. In order to maintain the sustainability of the industry. If not, we won’t be able to compete and the challenges will become even more difficult,” he said.
“That is why the competency of our workforce must be improved. Innovation must be encouraged so that we can increase the competency of our workforce,” he said.
Adhi said factory automation would provide room for companies to expand so they could be more efficient.
“Maybe absorption won’t grow much, but I’m sure there won’t be a wave of layoffs due to automation in food and beverage factories. Because, if there is efficiency in one area, it will expand to other areas. This means there will be employment,” he said.
“Expansion can be closer to the market so it will be more efficient. Like now, the trend is to expand to East Java so it can be closer to the Eastern Indonesia region. So the costs are more efficient, right,” explained Adhi.
He is also optimistic that investment and growth in the processed food and beverage industry will still occur.
“This year I predict it can grow 5%, last year around 4.9%. Previously it was hoped for 7% but it seems heavy. I’m sure foreign investment in the food and beverage industry can still grow. Last year it was around US$ 2.5 billion, this year up to “In the third quarter it was around US$ 1.7 billion. Domestic investment too, last year IDR 54 trillion, this year up to the 3rd quarter it was around IDR 45 trillion,” he explained.
“So it will still grow. What is important is that workforce competency is improved because standards are increasing,” he said.
He emphasized again that the food and beverage industry will not experience a reduction in the total number of workers.
“A decrease in labor will not happen. But what will happen is a transition. In one area there will be efficiency due to automation, in another area it will expand and absorb labor. So it will be balanced,” he said.
“Switching from humans to machines is indeed happening. But in other places there is expansion, which means there is employment,” concluded Adhi.
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