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Digital Revolution Will Cause 50 Million Job Opportunity Losses in Indonesia

 

The digital revolution or the fourth industrial revolution (4.0) could create economic storage that would potentially cause Indonesia to lose 50 million job opportunities.

Minister of National Development Planning Bambang PS Brodjonegoro said all parties should be ready to face it including the manager of the national social security provider.

Bambang Brodjonegoro

Bambang Brodjonegoro said this when opening international seminar ‘Expanding Social Security Coverage in The Disruptive Economy Era’ in Nusadua, Bali, Tuesday (2/6/2018).

Bambang quoted Mckinsey, saying the phenomenon had already occurred in a number of business sectors.

In recent years several sectors are already preparing to reduce their workforce, such as toll road management that reduces toll payment service workers with cashless payment services.

The banking sector is also preparing to reduce its staff as it will improve its services by way of online, as well as ticketing services for aircraft, trains and boats that will use automated teller machines (ATM).

McKinsey & Co research consulting firm in the end of 2017 predicted about 800 million workers worldwide will lose their jobs until 2030 as their jobs are replaced by robots and automation technology.

Bambang said on the other hand, there are still other job opportunities due to business digitization which will create an independent business community by utilizing the progress of digital technology.

President of the International Social Security Association Joachim Breuer said the world is undergoing a digital revolution known as the industrial revolution 4.0, where many activities are done by way of digital means, artificial intelligence, big data, robotic use, which are then known as disruptive phenomena.

Breuer acknowledged there will be many layoffs, but on the other hand there will be many job opportunities created.

“It’s just that until now we do not know exactly how much the loss of work and how many new job opportunities created,” he said.

This article was originally published on www.en.netralnews.com and can be viewed in full

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