Job Cuts Expected in Major Industries
The increasing use of digital technology in major industries, especially manufacturing, is not accompanied by increasing manpower skills. Consequently, workers with redundant competencies will be subject to gradual staff reduction and enter the informal sector.
/https%3A%2F%2Fkompas.id%2Fwp-content%2Fuploads%2F2018%2F11%2F20180426RAD10_1543050733-1.jpg){kind=logo}
Employees work at a factory in Wadas village, Tegal district, Cirebon, West Java, on Wednesday (25/4/2018). Entering the era of Industry 4.0, improving workers’ capacity will increase industries’ productivity and competitiveness, especially in the manufacture sector.
JAKARTA, KOMPAS — The increasing use of digital technology in major industries, especially manufacturing, is not accompanied by increasing manpower skills. Consequently, workers with redundant competencies will be subject to gradual staff reduction and enter the informal sector.
The Indonesian Institute of Sciences (LIPI) has conducted qualitative research on employment opportunities and human resource development in the digital era. The research subjects in the 2018 case study are garment and textile businesses in Bandung as well as the industries of snacks and wooden crafts in Bantul, Yogyakarta.