The rise of the digital economy could open a range of new opportunities for firms to play a more active role in global value chains (GVCs). New digital technologies are radically changing the outlook of manufacturing and services industries by altering the way how companies organize their production processes and which business models they adopt. How the digitalization is affecting, or could affect future, enterprises (actors) contributions to GVCs. The various opportunities that the digital economy opens for actors, especially in terms of cost reductions and the emergence of new business models, but also discusses policy measures that could be taken to promote actors participation in GVCs. Significant challenges remain for SMEs to enter GVCs, some of which are exacerbated by the new digital economy.

1. Global Value Chains in the
Digital Economy
Togar M. Simatupang
Institut Teknologi Bandung
17 December 2020

2. Overview
1. Main features of Global Value Chain
2. Digital Economy
3. Making Indonesia 4.0
4. National Logistics Ecosystem
5. Global Value Chains (GVCs) in the Digital Economy
6. Technology Innovation in Logistics 4.0
2

3. Introduction
• The rise of the digital economy could open a range of new opportunities
for firms to play a more active role in global value chains (GVCs).
• New digital technologies are radically changing the outlook of
manufacturing and services industries by altering the way how companies
organize their production processes and which business models they
adopt.
• How the digitalization is affecting, or could affect future, enterprises
(actors) contributions to GVCs.
• The various opportunities that the digital economy opens for actors,
especially in terms of cost reductions and the emergence of new business
models, but also discusses policy measures that could be taken to promote
actors participation in GVCs.
• Significant challenges remain for SMEs to enter GVCs, some of which are
exacerbated by the new digital economy.
3

4. Main features of Global Value Chain
4

5. Main Features of Global Value Chain
 Product upgrading or moving to better
and more sophisticated goods;
 Process upgrading or improving
efficiency of production;
 Functional upgrading, which refers to
moving from manufacturing tasks to
pre- and postmanufacturing activities
such as R&D, branding, and marketing;
and
 Chain upgrading, that is moving into a
completely new chain.
5

6. Determinants of global value chain governance
Source: Modified from Gereffi et al. (2005) 6

7. The transition from value chains to value ecosystems
7

8. Digital Economy
8

9. What is Digital Economy?
• What is the digital economy?
• Economic activity that results from billions of digital connections among people, firms and devices
• How is it affecting global industries?
• Tech platforms changes way buyers and suppliers interact (e.g. Alipay)
• Established leaders facing new competition new tech firm (e.g. Uber/Didi)
• How are countries responding?
• Global race between countries to drive digital transformation to remain competitive (e.g.
Germany: Industrie 4.0, Japan: Society 5.0, Indonesia: Making Industry 4.0)
• What does this mean for Indonesia?
• Potential to participate in digital economy, but needs to understand how new technologies and
services are shaping existing industries and creating new ones.
9

10. Digital transformation in context
Source: Driving Digital Transformation in Higher Education by D. Christopher Brooks and Mark McCormack (15 June 2020),
https://www.educause.edu/ecar/research-publications/driving-digital-transformation-in-higher-education/2020/defining-digital-transformation
Digitalization can be a driver of
‘upgrading’ in GVCs and help
developing countries move into
higher value-added activities
10

11. 11

12. Making Industry 4.0
12

13. PENINGKATAN
DAYA SAING
DAN
KESEJAHTERAAN
MASYARAKAT
DAN BANGSA
4 Pilar Perubahan
13
ESCAPING FROM MIDDLE
INCOME ECONOMY TRAP
IMPROVING
COMPETITIVENESS INDEX
FULFILLING PEOPLE
EXPECTATION
(ROLE OF UNIVERSITY)
IMPROVING
UNIVERSITY
COMPETITIVENESS
INNOVATION DRIVEN
ECONOMY
BOOSTING
INNOVATION
AGENT OF
ECONOMIC
DEVELOPMENT
INCREASING
INTERNATIONAL
PUBLICATION
CONTRIBUTING TO DEV OF
SCI. & TECH

14. Industry 4.0: Key Driver [ Skill, Policy, Culture]
INDUSTRIES
(NEW CORPORATE
CULTURE)
INDUSTRY
4.0
HIGHER LEARNING
INSTITUTION
TECHNICAL
DEVELOPMENT
INSTITUTION
GOVERNMENT
 Skill
o Reskill / Upskill / New skill
o Syllabus & Curriculum revision
 Policy
o Incentive, Data security
o Foreign labour, Digitalisation, ICT infrastructure
 Culture
o New paradigm shift in corporate culture
o Change process
14

15. Tahap-Tahap Revolusi Industri
1800 1900
Lini Masa
2000 now
Penemuan Mesin
Uap mendorong
munculnya kapal
uap, kereta api, dll
Penemuan listrik dan
assembly line yang
meningkatkan
produksi barang
Inovasi teknologi
informasi,
komersialiasi
personal computer,
dll.
Revolusi Industri ke-4
Kegiatan manufaktur
terintegrasi melalui
penggunaan
teknologi wireless
dan big data secara
masifFase periode Revolusi Industri membutuhkan masa
yang semakin singkat dari waktu ke waktu
15

16. Wajah Kegiatan Ekonomi Dunia saat Ini
Revolusi Industri Ke-4
Smart Manufacturing Smart City
e-Education e-Government
Online Health ServicesCloud Collaborative
Sharing economy
Marketplace
Smart Appliances
Saat ini berbagai macam
kebutuhan manusia telah banyak
menerapkan dukungan internet
dan dunia digital sebagai wahana
interaksi dan transaksi
16

17. Era Baru Industrilisasi Digital
Ancaman:
- Secara global era digitalisasi akan menghilangkan sekitar 1 – 1,5 miliar
pekerjaan sepanjang tahun 2015-2025 karena digantikannya posisi manusia
dengan mesin otomatis (Gerd Leonhard, Futurist);
- Diestimasi bahwa di masa yang akan datang, 65% murid sekolah dasar di
dunia akan bekerja pada pekerjaan yang belum pernah ada di hari ini (U.S.
Department of Labor report).
Peluang:
- Era digitalisasi berpotensi memberikan peningkatan net tenaga kerja hingga
2.1 juta pekerjaan baru pada tahun 2025
- Terdapat potensi pengurangan emisi karbon kira-kira 26 miliar metrik ton
dari tiga industri: elektronik (15,8 miliar), logistik (9,9 miliar) dan otomotif
(540 miliar) dari tahun 2015-2025 (World Economic Forum).
Dampak Dunia Digital dan Revolusi Industri Keempat
17

18. Gejala-Gejala Transformasi di Indonesia
Dunia Digital dan Revolusi Industri Keempat
Toko Fisik Market Place Online
Ojek dan Taksi Konvensional GO-Jek, Grab, Uber, dll.
Saat ini beberapa jenis model bisnis
dan pekerjaan di Indonesia sudah
terkena dampak dari arus era
digitalisasi
• Toko konvensional yang ada
sudah mulai tergantikan dengan
model bisnis marketplace.
• Taksi atau Ojek Tradisional
posisinya sudah mulai
tergeserkan dengan moda-moda
berbasis online
18

19. Launching Making Indonesia 4.0
Jakarta, 4 April 2018
19

20. 20

21. 21

22. 22

23. Internet of Things
● Sensor & Actuator
● Hardware
● Network
PEMBANGUNAN SDM
MENDUKUNG INDUSTRI 4.0
Cloud Computing
● Infrastructure as a service (IAAS)
● Platform as a service (PAAS)
● Software as a service (SAAS)
Digital Production Manufacturing
● Flexible Manufacturing System
● Additive Manufacturing
Big Data
● Analisis & Komputasi Data
● Advance Database
● Data Warehouse
● Data Cyber security
Artificial Intelligence
● Robotic
● Sistem Informasi
● Micro controller
● Coding & Programming
● Apps Developing
Augmented/
Virtual
Reality
Softskill
Flexibility
KOMPETENSI YANG DIKEMBANGKAN
75–375 Juta
TENAGA KERJA GLOBAL
BERALIH PROFESI
Diperlukan dukungan infrastruktur dasar, yaitu :
Jaringan
Internet
Energi
Listrik
Sistem
Logistik
Delivery
Time
Ketepatan
Standar/SNI
Regulasi
Indonesia perlu meningkatkan
kualitas keterampilan tenaga
kerja dengan teknologi digital
(Parray, ILO, 2017)
23

24. 34
121
25
16
15
11
8
7
5
2
Healthcare
Manufacturing
Mining
Public sector and utilities
Retail
Agriculture
Transport
Telecom and media
Financial
Total
Industry 4.0 can have significant
impact in Indonesia – up to USD 120
billion by 2025
Across key sectors, Indonesia could harness digitization to realize
total productivity impact of USD 120 billion by 2025, USD billion
Sector Estimated 2025 GDP base impact
Indonesia’s positive story: many more jobs will
be created in 2030 than lost to automation
Number of job jobs gained and lost
Million
9
10
23
27
Jobs lost Jobs gained
Jobs gained, step-up
Jobs lost, midpoint scenario
New occupation created
Jobs gained, trend line
SOURCE: McKinsey Global Institute (MGI) research: Unlocking Indonesia’s digital opportunity (2016), Automation and the Future of Work in Indonesia (2019)
24

25. 1. Politeknik STTT Bandung (Smart Apparel)
2. Politeknik STMI Jakarta (Automotive Component)
3. Politeknik Industri Furnitur dan Pengolhan Kayu
Kendal (Advanced Manufacturing-Wood)
4. Politeknik ATI Makassar (Advanced Manufacturing)
5. Politeknik ATK Yogyakarta (Advanced Manufacturing-
Footwear)
6. PT Schneider Electric Indonesia (Advance
Manufacturing)
7. PT YPTI (Advance Manufacturing)
PUSAT INOVASI DAN PENGEMBANGAN SDM INDUSTRI 4.0 (PIDI
4.0)
SATELITE PIDI 4.0
Visi
Solusi Satu Atap Penerapan I4.0 di Indonesia dan jendela Indonesia 4.0
25

26. National Logistics Ecosystem (NLE)
26

27. FOOD
SUPPLY CHAIN
ECOSYSTEM
Food Parks,
APEDA, Freight
Corridors
Sensor networks &
supply chain
visibility
Cold Chain
Logistics
DELIVERYSERVICE
INFRASTRUCTURE
Sourcing Hubs, Food
Courts, Clusters
HR management
Dealing with Kirana
shops, Financials
Water, Power , seeds
Infrastructure:
Canals, Roads,
Research: University,
Seeds, Testing, Dev,
Labs
RESOURCES
Quality Control &
Environmental Issues
APMC, Min price, Essential
Commodities, PDS,VAT
INSTITUTIONS
Social (Kirana shops),
Financial & Trade issues
FOOD SUPPLY CHAINS
Retail Chains
Mandis, Restaurants
Distribution
Packaging
Food
Manufacturing
Suppliers
Farmers, Fisheries,
Meat, Dairy
Rantai Pasokan
Pangan di India
Sumber: SV Agri – Consolidating India’s
Potato Supply Chain,
https://digital.hbs.edu/platform-
rctom/submission/sv-agri-consolidating-
indias-potato-supply-chain/
27

28. Ekosistem untuk Manajemen Kargo
28

29. Mengapa Perlu Penataan Ekosistem Logistik
Indonesia?
29

30. Gambaran Kerumitan Sistem Logistik Saat Ini
Sumber: Sri Mulyani Indrawati, Penataan Ekosistem Logistik Nasional (NLE), Kamis 24 September 2020 30

31. Penataan Melalui NLE
Sumber: Sri Mulyani Indrawati, Penataan Ekosistem Logistik Nasional (NLE), Kamis 24 September 2020 31

32. Ekosistem Logistik Nasional (National Logistics Ecosystem)
Sumber: Instruksi Presiden Republik Indonesia Nomor 5 /16 Juni 2020 tentang Penataan Ekosistem Logistik Nasional
https://nle.kemenkeu.go.id/portal/
National Logistic Ecosystem (NLE) merupakan program yang menyelaraskan arus lalu lintas barang (flow of goods) dan
dokumen (flow of documents) baik internasional maupun domestik yang berorientasi pada kerjasama antar instansi
pemerintah dan swasta, melalui pertukaran data, simplifikasi proses, penghapusan repetisi dan duplikasi, serta didukung
oleh sistem teknologi informasi yang mencakup seluruh proses logistik terkait dan menghubungkan sistem-sistem logistik
yang telah ada melalui konektivitas dan aksesibilitas antar kawasan, simpul transportasi, dan jaringan transportasi.
32

33. Program Kerja NLE
33

34. Efisiensi Logistik Nasional
Sumber: Sri Mulyani Indrawati, Penataan Ekosistem Logistik Nasional (NLE), Kamis 24 September 2020 34

35. GVCs in the Digital Economy
35

36. The digital transformation of value chain system
Source: https://www2.deloitte.com/us/en/insights/focus/industry-4-0/digital-transformation-in-supply-chain.html 36

37. Benefits of the digital transformation of value chain system
Access to
Market
Access to
Training
Access to
Finance
Collaboration
and
Coordination
• Linkages
• Preferences
• Certification and Standards
• Technical
• Entrepreneurial
• Financial literacy
• Soft skills
• Horizontal (among
producders)
• Vertical (among value chain
actors)
• Infrastructure
• Equipment
• Certification and Standards 37

38. Eight Key Findings of the Global Digital Study 2018
38

39. Aproach to Digital Economy
• A holistic approach that combines investment in ICT infrastructure and human capital with trade
policy measures and measures to improve the business environment, access to finance and
logistics, and promote innovation and R&D is necessary.
• Improving the availability of data would also help to better understand and integrate SMEs in
GVCs.
• The digital transformation of value chain system, ranging from digital profiling of value chain
actors to mobile payments and e-commerce.
• The necessary policy and regulatory frameworks for inclusiveness, scalability and viability,
includes data governance and protection, digital financial products, digital ID systems, e-
contracts, and e-extension services.
• The policy and investment fronts for digitalization is to help make value chain systems especially
agri-food systems more productive, more inclusive and more sustainable in the future
• This wave of interest to build digital platforms that facilitate linkages between value chain actors
at much-reduced transaction costs.
39

40. GVCC Digital Economy and GVCs:
Big Picture Trends
• Incumbent firms earn a larger share of revenue by providing services rather than
physical goods.
• Additional data enables equipment manufacturers to upgrade to analytical
consulting services to clients.
• Dichotomy between the products and services offered and the source of revenue
in consumer segments due to advertising.
• New skill requirements along the entire value chain (programming, analytics,
sales, etc.); global shortage of workers with these skills.
• New forms of education in certifications to respond more rapidly to changing
demand.
• Expanding value creation through collaborative ecosystems over linear supply
chains.
• Largely driven by US firms.
40

41. GVCC IT-Enabled Services:
Anything as a Service (XaaS)
• In-house servers to Infrastructure as a Service (IaaS)
• Cloud: AWS, Microsoft Azure, Google Cloud
• In-house database storage to Platform as a Service (PaaS)
• IBM Bluemix, RedHat OpenShift, GE Predix, Siemens Mindsphere
• Application software to Software as a Service (SaaS)
• Salesforce, SAP, start-ups
• Selling physical products to Products as a Service (PaaS)
• Rolls Royce, Komatsu
41

42. GVCC Characteristics of Digital Economy Lead Firms
• Internal development, investment in R&D and workforce skills
• Acquisitions to achieve greater diversity (products and markets) and
capability
• e.g., IBM, Microsoft & Google – 165+ acquisitions each past 15 years
• Firms have venture capital arms and start-up funds.
• Global MNEs create incubators for entrepreneurs globally to grow workforce
and expand globally.
• Collaboration across industries and sectors: common and important.
42

43. Upgrading strategies for the digital economy
Source: “Upgrading strategies for the digital economy” by Timothy J. Sturgeon (2019), Global Strategy Journal, https://doi.org/10.1002/gsj.1364
Three key business strategies underpinning its organization: modularity, open innovation, and platforms.
43

44. Stages of value chain modularity and the emergence of GVCs
Source: “Upgrading strategies for the digital economy” by Timothy J. Sturgeon (2019), Global Strategy Journal, https://doi.org/10.1002/gsj.1364 44

45. Facebook's digital ecosystem
Source: https://hernaes.com/2015/10/29/what-is-a-digital-ecossytem/
45

46. 46

47. 47

48. The organizational continuum of technological platforms
Source: “Bridging differing perspectives on technological platforms: Toward an integrative framework” by Annabelle Gawer (2014), Research
Policy, Volume 43, Issue 7, Pages 1239-1249. https://doi.org/10.1016/j.respol.2014.03.006 48

49. Platform innovation and competition
49

50. Innovation Technoloy in Logistics 4.0
50

51. Evolusi era digital
Sumber: Frazzon, E., Rodriguez, C. M., Pereira, M., Pires, M., & Uhlmann, I. (2019). Towards Supply Chain
Management 4.0. Brazilian Journal of Operations & Production Management, 16(2), 180-191.
https://doi.org/https://doi.org/10.14488/BJOPM.2019.v16.n2.a2 51

52. Transisi logistik dengan inovasi
Mekanisasi
transportasi
Otomatisasi dalam
pergerakan muatan
Sistem
pengendalian
logistik
Standardisasi proses
dan Internet untuk
segala
Sumber: “Logistics centers in the new industrial era: A proposed framework for logistics center 4.0” by Volkan Yavas and Yesim Deniz Ozkan-Ozen
(2020) in Transportation Research Part E: Logistics and Transportation Review, Vol. 135, https://doi.org/10.1016/j.tre.2020.101864
Produksi Logistik Logistik Terpadu Logistik Cerdas
• Meningkatkan kecepatan dan
daya dukung moda jalan dan rel
• Tawaran model jalur air
• Otomatisasi gudang dan
penggunaan mesin pengangkat
barang (forklift) dalam
pergerakan dan penyimpanan
muatan
• Standarisasi muatan
menggunakan kontainer
• Sistematisasi pengendalian
logistik menggunakan WMS dan
TMS
• Digitalisasi dokumen dan proses
logistik
• Gudang otomatis dan kendaraan
terpandu jarak jauh dengan
pengurangan tenaga kerja
• Standardisasi untuk seluruh
rantai pasokan
Logistik 1.0 Logistik 2.0 Logistik 3.0 Logistik 4.0
Abad 20 1960-an 1980-an Abad 21
52

53. 53

54. The digital supply chain revolution
Source: https://www.weforum.org/agenda/2018/01/the-digital-supply-chain-revolution-a-mountain-worth-climbing/
54

55. Teknologi Dalam Rantai Pasokan
Sumber: “The emerging role of Big Data in Digital Ecosystems ” by Mark Skilton (2014) 55

56. National Agri Platform by promoting digitalization among
Agricultural value chain actors
56

57. Ways the digital economy can reduce SME business costs
Source: Alphabeta framework (from AMTC, 2018)
57

58. Benefits of new technologies across different players
Source: Impacts of the digital economy on the food chain and the CAP 58

59. Pembangkitan ide:
Tahap pertumbuhan perusahaan yang berbeda membutuhkan Tujuan yang berbeda pula
59
Hasilkan pendapatan
Berinvestasi untuk
berinovasi
Hasilkan Keuntungan
Investasikan untuk
efisiensi
Sumber: Zone to Win: Organizing to Compete in an Age of Disruption by Geoffrey Moore (2015)

60. Pendekatan
Transformasi Digital
Sumber: “Art of Digital Jujutsu” by Mohammed Hashim (2016), Conference: Dell
EMC World At:
https://education.emc.com/_content/_common/docs/ks_articles/2016KS_Hashi
m-The_Art_of_Digital_Jujutsu.pdf
60

61. Penyedia Solusi:
Bagaimana merancang aplikasi rantai pasokan yang memadukan
kegiatan ekonomi UMK dari hulu ke hilir?
Sumber: Made Dana Tangkas (2020)
61

62. Penyedia Solusi:
Bagaimana merancang interkoneksi rantai pasokan untuk meningkatkan
utilitas industri manufaktur khususnya optimalisasi belanja pemerintah?
Sumber: Achmad Sigit Dwiwahjono (2020)
https://siinas.kemenperin.go.id/ 62

63. Penyedia Solusi:
Bagaimana mereplikasi EKOSISTEM INOVASI INDUSTRI 4.0 (SINDI 4.0)
dengan pemuktahiran data industri di daerah?
63

64. Aplikasi Pertanian di Indonesia
• Eragano merupakan sebuah startup yang menyediakan solusi dari hulu ke hilir di sektor pertanian.
• iGrow adalah sebuah platform yang memungkinkan kamu untuk berinvestasi di bidang pertanian dan
memantaunya secara online.
• 8Villages merupakan perusahaan yang membuat aplikasi bernama Petani.
• Dengan aplikasi tersebut, para petani bisa bertukar informasi dengan para pakar pertanian, serta menanyakan berbagai masalah
terkait pertumbuhan tanaman.
• SayurBox adalah aplikasi yang memungkinkan kamu untuk memesan sayuran organik segar yang baru saja
dipanen.
• Simbah adalah aplikasi yang bisa membantu petani untuk bertanya segala hal tentang dunia pertanian.
• Pantau Harga adalah aplikasi yang bisa kamu gunakan untuk mengetahui informasi harga dari beragam
komoditas pangan di pasar.
• Karsa adalah aplikasi yang bisa memberikan informasi pertanian kepada para petani, produsen produk
pertanian, serta pemerintah.
Source: https://id.techinasia.com/kumpulan-emstartupem-dan-aplikasi-pertanian-di-indonesia
64

65. Eragano
• Eragano
• Teknologi aplikasi Android dengan fitur lengkap dan mudah digunakan untuk PETANI
• Apa yang disediakan Eragano?
• Penjualan perlengkapan pertanian dan pupuk
• Penjualan hasil panen
• Sistem pengelolaan sawah
• Pemberian pinjaman untuk petani
• Startup yang dibangun oleh Stephanie Jesselyn dan Aris Hendrawan ini telah mendapat pendanaan tahap
awal dari East Ventures pada bulan Juli 2016 yang lalu.
• Stephanie Jesselyn
• CEO dan Founder dari eragano (sebuah start-up yang membangun solusi dari hulu ke hilir untuk Petani kecil, mulai
dari pinjaman, pendampingan budidaya sampai penjualan panen sehingga kesejahteraan Petani dapat meningkat dan
Petani lebih fokus dalam bertani).
• Berpengalaman sebagai Business Intelligence Specialist di Zalora Indonesia, perusahaan anak dari Rocket Internet
Gmbh yang menangani Business Plan dan forecast dan data analytics Zalora.
Source: eragano.com 65

66. 66

67. Thank You
67