Digital Transformation and Industry 4.0 in Indonesian Shipyards (Case Study at PT PAL Indonesia)

Digital transformation and Industry 4.0 have proven to be capable of strengthening corporate performance, creating value, and gaining competitive advantage in various industries. Its appeal has increased among companies from various sectors and government agencies in the Indonesian economy, but limited generalizability and replicability have been found in existing models, which poses difficulties in applicability to the Indonesian shipbuilding industry. Therefore, this research study aims to identify and analyze PT PAL Indonesia's implementation of industry 4.0 principles including the impact of digital transformation and implementation on production processes and overall company performance and the main challenges faced in industry 4.0 transformation. In this study using mixed methods with qualitative and quantitative analysis to collect data from surveys/ questionnaires and also company data. The results of simultaneous testing research (F test) shows the simultaneous influence of the application of industrial transformation 4.0 on the achievement of organizational goals. The test results are shown in the financial performance of PT PAL Indonesia's RKAP which experienced a significant increase from 2020 worth Rp. 1,826 billion to Rp. 3,620 billion in 2023 and projections in 2024 reached Rp. 5,109 billion. In terms of productivity capabilities, it has also increased from 20 ship blocks per month to 50 ship blocks per month, which of course has an impact on shorter dock time and faster shipbuilding time. However, the challenges faced in implementing industry 4.0 are related to culture and openness to change. In addition, there are also investment costs for infrastructure provision and human resource development.