Conceptualizing the Promise of Industry 4.0 Technology Adoption: Case Study of Indonesian Automotive Industry

Leading the car market in the Southeast Asia region, Indonesian automotive industry is considered as one of important pillars of manufacturing sector due to its significant contribution to national economic growth. Along with the presence of the next wave industrial revolution, Industry 4.0 creates an opportunity for the Indonesian government to not only stimulate further growth of the sector, but also increase energy efficiency simultaneously. However, the complexity of structural challenges that exists in the automotive industry has raised a question, what aspects or factors that could accelerate the technology adoption process? This paper aims to explore the policy structure that could influence the growth of Industry 4.0 technology adoption in improving energy efficiency in the Indonesian automotive industry. The exploration will be explored through a qualitative conceptual model, developed within system dynamics modeling approach, to provide an understanding of the causal relationship and dynamics between factors included in the fourth industrial ecosystem creation in Indonesia.