Reaping the Benefits of Industry 4.0 Through Skills Development in Indonesia

By Asian Development Bank

This report explores the implications of the Fourth Industrial Revolution (4IR) on the future of the job market in Indonesia. It assesses how jobs, tasks, and skills are being transformed in food and beverage as well as in automotive manufacturing. These two industries have high relevance to 4IR technologies and both are important to Indonesia’s national employment, economic growth, and international competitiveness. They are also likely to benefit considerably from the transformational effect of 4IR, if there is adequate investment in jobs, skills, and training. The report is part of series developed from an Asian Development Bank study on trends in skills demand in Cambodia, Indonesia, the Philippines, and Viet Nam.

• Language: English
• Publisher: Asian Development Bank
• Release date: Jan 1, 2021
• ISBN: 9789292624538

Book preview

REAPING THE BENEFITS OF INDUSTRY 4.0 THROUGH SKILLS DEVELOPMENT IN INDONESIA

JANUARY 2021

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

© 2021 Asian Development Bank

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Some rights reserved. Published in 2021.

ISBN 978-92-9262-452-1 (print); 978-92-9262-453-8 (electronic); 978-92-9262-454-5 (ebook)

Publication Stock No. SPR200327

DOI: http://dx.doi.org/10.22617/SPR200327

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Cover design by Mike Cortes.

Contents

Tables, Figures, and Boxes

Foreword

Talent and skills are valuable in powering knowledge-based economies. The Fourth Industrial Revolution (4IR) has ushered in extraordinary technological advances, fusing boundaries of physical, digital, and biological worlds to create new paradigms in the way we live, work, and interact. These trends have heralded excitement and fear—excitement in advancing frontiers of human endeavor and fear of negative repercussions on jobs and rising inequalities.

To respond to questions and concerns in developing member countries of the Asian Development Bank (ADB) on how their economies can transition effectively to 4IR, the study "Reaping the Benefits of Industry 4.0 Through Skills Development in High-Growth Industries in Southeast Asia" builds an evidence based on opportunities, challenges, and promising approaches in 4IR. It covers Cambodia, Indonesia, the Philippines, and Viet Nam with specific focus on two industries in each country deemed important for growth, employment, and 4IR: tourism and garments in Cambodia, food and beverage manufacturing and automotive manufacturing in Indonesia, information technology and business process outsourcing and electronics in the Philippines, and agro-processing and logistics in Viet Nam.

Much has been written about anticipated loss of millions of jobs arising from automation. At ADB, we take a tempered view. The study reaffirms a positive outlook to