Pegatron Launches Smart Factory in Batam, Powered by Telkomsel’s 5G Technology

INDONESIAUPDATES.COM, News En – Pegatron, the global manufacturing giant and key supplier to Apple, has officially launched its smart factory in Batam, marking a significant milestone in its digital transformation. The new facility, established under Pegatron’s subsidiary PT Pegaunihan Technology Indonesia, integrates cutting-edge artificial intelligence (AI) and automation technologies, with robust support from Telkomsel’s 5G network.

This innovative smart factory is part of Pegatron’s broader strategy to modernize its operations globally. PT Pegaunihan Technology Indonesia, established to expand Pegatron’s manufacturing footprint in Southeast Asia, is now leveraging AI and 5G technology to streamline production processes, boost efficiency, and accelerate digital transformation in the region.

In a statement released by Pegatron and Telkomsel, it was revealed that Telkomsel’s enterprise division, Telkomsel Enterprise, has provided the essential 5G Private Network Standalone (SA) infrastructure to ensure reliable connectivity across the production facility. Additionally, Telkomsel has supplied 1,200 SIM cards for Internet of Things (IoT) devices, enabling real-time machine monitoring and process control. This move is expected to enhance operational efficiency and provide a seamless integration of systems that optimize production workflows.

Gary Cheng, CEO of Pegatron, emphasized the importance of the collaboration with Telkomsel, Indonesia’s first 5G operator, stating that the partnership is crucial for realizing a highly adaptive, connected, and efficient smart factory. “With Telkomsel’s reliable 5G network and robust digital infrastructure, we are accelerating our digital transformation in the production chain while also contributing to the growth of Indonesia’s technology-driven industries,” Cheng said.

Pegatron through PT Pegaunihan Technology Indonesia together with Telkomsel operates an AI-based smart factory with 5G Telkomsel ( Corpcomm Telkomsel)

Government Support for Digital Transformation in Manufacturing

The government has expressed strong support for this technological advancement in Indonesia’s manufacturing sector. Setia Diarta, Director-General of the Ministry of Industry’s Metal, Machinery, Transportation Equipment, and Electronics Industry, lauded Telkomsel and Pegatron’s initiative, noting that the integration of 5G, AI, and IoT technologies is critical to enhancing Indonesia’s competitiveness in the global market. “The manufacturing sector is a key pillar of Indonesia’s economy, and the adoption of advanced technologies like 5G is essential for sustaining growth and global competitiveness,” Diarta remarked.

Adis Alifiawan, Director of Spectrum Planning, Satellite Orbit Management, and Digital Infrastructure Standardization at the Ministry of Communications and Information, highlighted the significance of the Pegatron smart factory in Batam. “This development is a crucial milestone for the national industry, particularly in the technology and ICT sectors. We aim for Indonesia to be not just a market but also a producer and innovator in the global technology industry,” Alifiawan stated.

5G Adoption in Industry on the Rise

Telkomsel has reported a growing adoption of 5G technology in various industries. According to the company, over a third of industrial producers plan to integrate 5G into their operations within the next one to three years. Telkomsel believes that the 5G Private Network will enable the real-time integration of thousands of sensors and machines, supporting automation, analytics, quality optimization, cost efficiency, and predictive maintenance.

Wong Soon Nam, Director of Planning & Transformation at Telkomsel, underscored the importance of the partnership, noting that the collaboration is a continuation of a Memorandum of Understanding (MoU) signed between Telkomsel and Pegatron at the 2025 Mobile World Congress in Barcelona. “We hope this initiative strengthens Indonesia’s manufacturing ecosystem and fosters the growth of the technology sector in the country,” he said.

Andy Hsieh, Director at Pegaunihan Technology Indonesia, expressed his hopes that the new smart factory will not only drive technological advancements but also facilitate the transfer of knowledge and solidify Indonesia’s position in the global supply chain.

As Indonesia accelerates its shift towards digital manufacturing, Pegatron’s new facility in Batam stands as a beacon of technological innovation and a testament to the country’s growing role in the global tech landscape. The integration of 5G, AI, and IoT technologies is expected to reshape the future of manufacturing in Indonesia and beyond, contributing to a more connected, efficient, and sustainable industry.

Frequently Asked Questions (FAQ)

What is the purpose of Pegatron’s new smart factory in Batam?
- The new smart factory aims to enhance Pegatron’s manufacturing operations by integrating cutting-edge technologies such as artificial intelligence (AI), automation, and 5G connectivity. The facility will streamline production processes, improve efficiency, and accelerate Pegatron’s digital transformation.
How does Telkomsel support Pegatron’s smart factory?
- Telkomsel provides the necessary 5G infrastructure, specifically the 5G Private Network Standalone (SA), to ensure reliable connectivity across the facility. Additionally, Telkomsel supplies 1,200 SIM cards for Internet of Things (IoT) devices, allowing for real-time monitoring of machines and optimized production processes.
What role does 5G play in the smart factory?
- The 5G network enables low-latency, high-speed communication between machines, sensors, and systems. This ensures real-time integration, efficient automation, predictive maintenance, and quality optimization in the factory, making production processes more efficient and cost-effective.
Why is this development significant for Indonesia?
- The establishment of Pegatron’s smart factory in Batam is a significant milestone for Indonesia’s manufacturing sector. It represents a major step in digital transformation, positioning the country as a leader in the adoption of advanced technologies such as 5G, AI, and IoT, and enhancing Indonesia’s competitiveness in the global manufacturing industry.
How does this collaboration benefit the Indonesian government?
- The government views the collaboration as a vital part of its strategy to modernize the manufacturing sector. By integrating the latest technologies, the government hopes to boost Indonesia’s industrial capabilities, improve productivity, and attract further investments in technology-driven industries.
What technologies are being used at the Pegatron smart factory?
- The smart factory utilizes artificial intelligence (AI), automation, and 5G connectivity to optimize production workflows. These technologies support real-time monitoring, process control, predictive maintenance, and quality optimization across the manufacturing process.
How will this initiative impact the global supply chain?
- The smart factory is expected to strengthen Indonesia’s position in the global supply chain by enabling more efficient, tech-driven manufacturing processes. It will also facilitate the transfer of advanced technologies and knowledge, contributing to the development of a more competitive and innovative manufacturing sector in the country.
What is the future of 5G adoption in Indonesia’s manufacturing sector?
- 5G adoption in Indonesia’s manufacturing sector is expected to grow rapidly, with many industrial producers planning to integrate 5G into their operations within the next few years. The adoption of 5G will further enhance automation, connectivity, and efficiency in the manufacturing industry, driving long-term growth.
How does this smart factory align with Pegatron’s global strategy?
- Pegatron’s smart factory in Batam is part of its broader global strategy to digitally transform its operations. By integrating advanced technologies and collaborating with Telkomsel, Pegatron aims to boost its manufacturing capabilities in Southeast Asia while maintaining global competitiveness.
What impact will this smart factory have on Indonesia’s tech ecosystem?
- The smart factory is expected to drive innovation and technology development in Indonesia, contributing to the growth of the local tech ecosystem. By leveraging 5G and AI, the initiative supports the country’s ambition to become not only a market but also a producer and innovator in the global technology industry.