Running Head: THE IMPACT AND ROLE OF IR 4.

0 1

The impact and the role of IR 4.0

Aqilah Padia Haya

Intan Yosa Pramisela

Industrial Engineering

Submitted in partial fulfillment of the requirement of the

Production System and ERP Course

0042018000034

004201800040

April 27 th, 2021

President University

Jababeka Education Park, Jl. Ki Hajar Dewantara, Jababeka

CikarangBaru, Bekasi 17550 – Indonesia

THE IMPACT AND ROLE OF IR 4.0 2

Abstract

This research was conducted to determine the impact and the role of concept
Industry Revolution 4.0 related to the employment in Indonesia and the core
of the IR 4.0 in Indonesian the advancement of connectivity and
communication in comparison to technology. The revolution in the industry
had a critical effect on labor issues. The taking after approaches could be
actualized by the movement of the government forward labor capabilities: To
begin with, competency and standardization certification can be harmonized
by the cross of regional, sectoral, and trade accomplice that consist inside the
system of advertising openness. Next is the program development
collaboration to the government and industry technology, as well as the
regional governments and central region to develop and improve the quality
of workforce of the labor. Third, shifting economies of scale to high -
productivity sectors and sub-sectors. The findings of this study include a
decrease in unemployment and increasing employment. To increase worker
that can be categorized in Indonesia, demonstrating the impact and role of
Indonesia in successfully exploiting the opportunities of the Industrial
Revolution 4.0

Keywords: Industry Revolution 4.0, role, concept, employment

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1. Introduction

The development of technology that is increasingly developing cannot

be stopped because artificial intelligence generates innovation in creating a
product to make the work efficient and effective. According to Suhadi as
Head of Instructors and Training Personnel, the Ministry of Manpower of the
Republic of Indonesia (Kemenaker) Indonesia still faces some basic problems
in the employment sector. Starting from the quantity and quality of labor, the
gap in human resources quality between regions, low productivity, to industry
or users who have not much sided with the competence of the workforce. This
phenomenon in the face of IR 4.0 becomes a challenge that must be
anticipated in the future. In line with unstoppable technological adv ances will
change the economy and the industrial sector itself. When looking at the
industrial revolution cycle of industrial revolution 1.0 starting in 1784
occurred in the sector of the use of steam engines in the industry. The impact
is a major change in mining, agriculture, manufacturer, transport, and
technologies and also has an impact on the world's social, economic, and
cultural conditions
The Industrial Revolution 2.0 can also be called the Technological
Revolution is a phase of rapid development of industrialization between the
late 19th century and the beginning of the 20th century. The emergence of
combustion chambers or fuels and power plants during the generation 2.0
industrial revolution triggered the development of automobiles, airplanes,
telephones, and other products that significantly altered the industry. With the
existence of the internet, digital technology marked the beginning of the
Industry 3.0 Revolution. In this era, there has been a change in the use of labor
in the industrial sector and changes in the behavior of the community in
communicating. This is reflected in the use of technology in factories and
industrial machinery prefers machines that are more efficient than using
human labor because the machines created are capable and can produce more
than human labor.
According to (Laka Y, 2019). added that the advancement of new
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technologies will affect all disciplines, In the field of industry, for example.
especially in the industrial revolution ahead namely Industrial Revolution 4.0.
To the face of the Industrial Revolution 4.0 era.
According to the Minister of Research and Technology,
(Bodjonegoro) the 17 th seminar entitled said that in the future artificial
intelligence (AI) technology or robots will replace various models and types
of work in 2022. Therefore, the role of human resources in the future must be
based on innovation and technology. Regarding the role of humans w ith
robots will start from the work of Low Labor to the work of accountants.
According to experts that Artificial Intelligence (AI) will do the work of about
42 percent of human work activities. Researchers will examine in particular
has the impact of industrial revolution 4.0 on the automotive sector. What is
the Role of Trade Unions to face of the Industrial Revolution 4.0 This is Related
to the, (Company, 2015) in the journal Hendra Sardana "that the impact of
technology on the industrial revolution 4.0 will result in 52.6 million types
shifting or disappearing from the face of the earth in the next 5 (five) years
“The findings of this study suggest that any individual who wishes to maintain
a self-existence in the global competition should begin preparing superior and
competitive skills and knowledge as soon as possible.

2. Research Methodology
To understand, the scenario of this case study area related to the
Industry Revolution 4.0 To attempt a thorough review of the literature
consolidation, research was conducted using scientific literature databases,
journals, and articles. Moreover, the literature study authors use Conference
Paper from Knowledge E. The objectives of conducting this research consist
of: to facilitate an understanding role and impact of Industry Revolution 4.0,
describe the criteria employees should prepare in Industry Revolution 4.0,
and analyze the increasing workforce and decreasing unemployment and the
opportunities of the Industrial Revolution 4.0.
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3. Discussion
Industry Revolution 4.0 Concept
This Industry Revolution of 4.0 era contains several facilities
production, to increase the value it is needed for services, and integrate the
value of the supply chain. This brings up some technologies like the analysis
of the data that as the adaptive data, management manufacture, horizontal,
simulation, and the vertical to the big data change. One of the most crucial
parts is the spread of the use of Industrial technology and its alternatives in a
scattered network of work. In this part of the research, the background of
Industry Revolution 4.0 is analyzed and several key characteristics of this
non-consensual concept are representing the IR 4.0 to get the better
improvement.
Technological advancements make it possible to implement
automation all around the world. Some of the technologies and tools that
combine the biological, digital, and physical stuff will rotate the order,
lifestyle, and people interaction (Tjandrawina, 2016). Some Scientists in
Industry identify the challenges 4.0 as Problem’s information in security
technology, stability, reliability and reality the machinery, low of the skills,
many jobs as turned in the manufacture and the changes of the stakeholders.
This opportunity in IR 4.0 drives some changes such as the field of
creative innovation in the industrial era. Government should do some judicial
review between industrial and innovation to reply to the challenges, changes,
and all the advantages that are given in 4.0 in humanities aspects. An example
of the movements that the government can make is by amplifying one
movement which is literacy to be proclaimed to explain industry 4.0. The
intended new movement of literacy focuses on three literacy, consisting of
technology, digital, and human literacy. Those skills are predicted to be
needed skills in IR 4.0. Digital literacy is geared towards improving the way
the reader analyzes and uses the information from data. It aims to give an
understanding on the way of the application of technology and machinery and
to improve the communication skill towards human literacy (Ali, 2017).
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Literacy awarded is willing to be expected as the improvement of the old

movement to create the competitive students that freshly graduated to not
only focus on reading and writing ability.

Employment in the Industrial Revolution Era in Indonesia

Mapping industry challenges and opportunities 4.0 for preventing
some impacts in human lives, an example of them is the unemployment
problem. There is a trend in Indonesia 2020 which is Social Outlook Trend to
predict the total unemployed in general with the expectations to build the
number of people increase and reach two hundred four people. It is almost the
same condition of unemployment which the threat challenges given. Nearly
the same with the Unemployment the challenge tends to be a threat in
Indonesia; the rate is 5.2% or seven million people out of the total one
hundred thirty-one million labor force (BPS, 2020). One of the real
challenges in Indonesia is the problems of resources and unemployment. The
demands of the company are one of the challenges that Indonesian facing
right now. Based on the research of authors, the unit and education system
both needed multi-skills of graduated education.
By doing research, Indonesia expected to get the experience of
demographic bonuses by 2020-2040, i.e., residents with the age of productive
population compared to non-Productive. The number of Indonesian age of
productive is estimated at 65%of Indonesia's total resident population at 298
million people. People in the productive age are expected to get quality in
improving their skills, education and compete in the workspace.
To deal with the problems posed by the application of industry 4.0 is
to print resources for a reliable human being who is ready to meet the
challenges in IR 4.0. Therefore, stakeholders must improve the quantity and
the education’s quality so that graduates must be ready to work in various
fields to see IR 4.0 challenges.
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4. Research result and Findings

In this IR 4.0 has a background that will be discussed in this paper.
Despite the concept's breadth and complexity, three key spots could be
identified, which is the concept of IR 4.0 encompasses not only in the
company direct manufacturing, but it gives the providers to the customers as
the entire value to enterprises the services and functions.
The Industry 4.0 model expected the support broad for the life cycle
of systematically, series, and product that are organizationally distributed.
The product doesn't seem to be only intelligent but in a lifetime it provides a
data state. This information is used for preventive maintenance and may be
useful to the manufacturer. IR 4.0 is one of the things on the internet that in
an industrial or manufacturing environment can be applied and implemented.
All the data collections are assumed as real-time, which raises the problem of
analyzing and handling large amounts of data, as well as cybersecurity
concerns. In considering a widely held belief regarding the impact and the
role of the concept of IR 4.0. Specifically, IR 4.0 is frequently regarded as a
disruptive technology that is expected to give away the next industrial
generation in a manufacturing system that will be changed from the previous
existing generation. Furthermore, IR 4.0 could be widely accepted as an
example of the industrial revolution fourth concept.
On the contrary, Industry 4.0can be viewed as a transformation
triggered by the trend in digitalization as a system in manufacturing
production. The concept of IR 4.0 is well-known globally, and it's one of the
examples of the implementation in industrial manufacturing applications that
transferred in engineering and non-engineering fields. Logistic, education and
automotive are the ICT tools that the data analyzed and shared in the original
meaning of IR 4.0 (Rojko, 2017). The widespread adoption of the IR 4.0
concept of production is still on a journey. There are only a few of IR 4.0
enterprises, most of which are new ventures created to test the concept. Most
businesses will most likely introduce IR 4.0 elements built on gradually
software solutions with existing equipment of their long-term viability.
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Industry Revolution 4.0 is also a system technology that is

fundamentally created by integration, connectivity, digitalization production,
and emphasizing the element possibilities of all elements during a system in
a value-added. This concept predicted digital manufacturing, network
communication, engineering, and automation technologies. Industry 4.0
advancements are eradicating.

Cyber-Physical System and Smart Factories

IR 4.0 enables rapid technological progress in several areas.
Therefore, the technological revolution is being created primarily using the
integration of Cyber-Physical Systems to the manufacturing area, similarly
because using the web of Things and Services into the Process of Industrial.
As a result, this section provides a short overview of every key technology
drive in IR 4.0. Some of the key features of Industry revolution 4.0. A smart
factory is defined as a factory capable of managing the complexity of a
process production, less susceptible to interference, and capable of producing
to make more efficiently also efficient. In smart factories, machines, people,
and other resources can be a medium to communicate naturally as happens in
a social environment. Intelligent products have a detailed knowledge of how
they are produced and how they will be Used. This smart product actively
supports the manufacturing process. Smart products are equipped with
interfaces to connect with the system of intelligent mobility, logistics systems
smart logistics, and smart grid systems. Things like this are what will make a
smart factory become key components of future intelligent infrastructure. It's
these smart factories, intelligent processes, and smart products manifestation
of the concept of cyber-physical systems. Industry 4.0 cannot be seen as a
system that is isolated, stand-alone. But it should be seen as wrong, one
component of several key components of an Application.

Internet of Things (IoT) and Internet of Service (IoS)

The Internet of Systems and Internet of Things has a concept in which
THE IMPACT AND ROLE OF IR 4.0 9

some objects can do a data transfer over the network without using any
interactions of humans but by using computer-based. This IoT is already
growing from the convergence of microelectromechanical system and
wireless technology, that can be stated as (MEMS), and often identified the
communication method with Radio Frequency Furthermore, IoT could using
another kind of technology sensor that we frequently encounter, such as
wireless technology and QR codes, are also included.
The Author's concept of IoT is quite simple with the way it works
refers to the 3 elements of IoT architecture which are, Physical items outfitted
with IoT modules, the connection from internet devices and the last is cloud
data where to store applications along with databases. and how the entire use
of internet-connected goods will store the data, the data collected as 'big data'
which can then be processed for good analysis by the government, companies,
as well as foreign countries to then be utilized for the benefit of each.
The number of employees in the level of production will increase if
the population is growing bigger and greater. Increasing the productivity of
labor is predicted to be expected to increase the growth of the country's
economy. There are positive things in IR 4.0 to the employee and company
which can reduce the number of errors, give more efficiency, increase
productivity and increase cost and time efficiency. It always represents both
sides of positive and negative in every change, such as the progress of
technology that is inseparable. To make a better improvement of human
quality, it is needed in the form of humans that lose their jobs, where this
thing happened in Indonesia.
One of the conflicts in the relationship between technological
employment in IR 4.0 is the conflict that comes between the online taxi driver
and the conventional motorcycle taxi where it is one of the service providers.
The main reason of the conflict is actually where the main source income of
them both are the same and the other party can't accept that situation, due to
government readiness, the problem should be resolved.
Another achievement in employments and unemployment is the
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decrease of the number of unemployment and the increase of the nu mber of

employments in Indonesia, so it means that Indonesia successful at utilizing
the development of digital economic the number of young people that
successful in the entrepreneurs’ field is one of the most evidence in Indonesia
that survived in the digital field. It shows that the Indonesian young
generation has that potential and high quality in developing business in this
IR 4.0 era and became successful entrepreneurs.

The issue to Face Employment as a Result of IR 4.0

The linkage between employee readiness and the IR 4.0 which is very
strong can be due to the existence of the Industrial Revolution 4.0 or Industrial
Digitalization which is a challenge in itself for trade unions/labor unions as
well as management and government so that trade unions/labor unions must
take part when there is a restructuring of machinery in a company. and
trade/labor unions, including workers, must be proactive rather than reactive,
looking for innovations in how to organize or in other words revitalizing the
organization. The objective of establishing a trade is to aim at providing a
defense of rights, interests, and protection, as well as improving proper
welfare for workers and their families. As the form of explanation that
workers or laborers are business partners is the most important process to
improve the welfare of the Indonesian people in general. These trade unions
are expected to fight for the interests of workers and create industrial relations
that are dynamic. The employee must have a sense of belonging and
responsibility in the company's continuous improvements, the employers
must treat the laborers and the workers as working partners with human
dignity. There is a system of relations between the parties that are interrelated
to achieve the expected goals in the production process known as Industrial
Relations. This can be seen from the existence of industrial relations within
the company which is described through the stages of relations between labor
unions and management. There are several stages of trade union relations and
management in the industrial sphere which are classified into five stages of
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growth, as conflict stage is a stage opposed by management because it can

create an atmosphere of conflict, is the initial stage of the establishment of a
trade union at first, recognition stage (Existence): is the stage where there is
pressure from the government through laws and regulations, as a result, the
presence of a trade union is recognized by management with a compulsion,
negotiation stage is the stage of management that does not obstruct the union
because of its presence as a reality in industrial life but tries to put the union
in a weak position when negotiating. The accommodative stage: is the stage
where management uses the union as a partner that connects management and
workers in enforcing discipline and directing worker behavior so that a
harmonious working relationship is established, its presence is considered to
play a positive role in the company's environment. The cooperation phase is
the most ideal and advanced stage in the relationship between workers,
management, and employers because of the many roles that increase the
efficiency, effectiveness, productivity, and morale of workers. Work
relationships can be established based on the principles of mutual respect and
support, as well as putting oneself in the position of the other party and taking
mutually beneficial actions. Employee readiness has a reboot influence on IR
4.0.
Labor and workers use a significant relationship role in
communication with the related company to desire the employee to the
workers in training and education to adapt the improvement and development
of the employee competence in facing the changes of the technology to be
aligned with the performance of the company. Companies also need to do a
development of the workers to ensure the continuity of the company and
increased Indonesian people welfare generally. Besides, trade unions must
also pay attention to the change in management sectors around the world to
welcome the era of IR 4.0. Trade unions that are also a forum for
workers/laborers in corporate organizations need to be prioritized to achieve
a work program that is consistent with encouraging the productivity of
company performance (Stachova, 2019).
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Impact and Role of IR 4.0 to Worker

The industrial revolution which has always been the basis for changes
in the work system, including the work relationship system, as in the initial
concept of industrial relations, is work relations, private relations between
workers/laborers and entrepreneurs or employers. Furthermore, the industrial
revolution 4.0, which has been taking place since 2018, is marked by, among
other things, changes in the way of life, work, and relationships between
people. The phenomenon of changing actors in the production process from
labor to machines or robots (automation). Changes in work relations have also
emerged in the form of the development of business systems, for example,
online buying and selling, online-based transportation (online motorcycle
taxis, and online taxis), and others that greatly facilitate the general public.
These conveniences also result in the threat of the position of
conventional workers/laborers. Workers/laborers who have a working
relationship with certain companies are currently prioritizing the concept of
industrial relations which will change with the IR 4.0. In this era, the initial
concept of industrial relations then developed in line with the industrial
revolution, in which industrial relations which were dominated by relations
between workers/laborers and private entrepreneurs between the two caused
many problems in the production process. Among other things, there is the
domination of employers against workers/laborers who work for them in the
production process which ends in the exploitation of workers/laborers. In a
country, where the state cannot intervene in the trade process, including the
production process, which then results in low wages, excessive working
hours, increasing poverty among workers/laborers, and a lack of respect for
workers/laborers (Sharma, 2016).

5. Conclusion
In this era of the IR 4.0, The relationship between workers and
employers is no longer in the form of an employment relationship but a
partnership anticipating the disruption of the IR 4.0, it takes labor reform that
THE IMPACT AND ROLE OF IR 4.0 13

gives the best protection not only for workers but also for the community so
that they can access employment opportunities. On the contrary, Industry 4.0
can be viewed as the digital trend by systems triggered in the production
system of industrial trend. By looking at the development of relationships in
the era of the IR 4.0.
THE IMPACT AND ROLE OF IR 4.0 14

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