The Future of Jobs: Trends, Innovations,

and Challenges in the Era of Industry

4.0 - Lessons Learned for Indonesia

Ekonomi Perencanaan (Special Topics)

Pertemuan - 9

Viktor Pirmana
Motivations (Global Trend)

Green Economy Industry 4.0 Migration and

(automation and digitalization) Globalization Aging

Structural transformation – driven by various interconnected megatrends – is accelerating and increasing pressure on countries to have a workforce
with skills that can respond to rapidly changing demands.
For middle-income countries, additional pressure comes from setting priorities on various goals combined with international commitments.
Cutting Edge Industry Phenomena
What is Cutting Edge Industry?
A dynamic landscape that continuously
evolves with breakthrough technologies and
pioneering ideas, leading industries are at the
forefront of innovation and revolution.
"Cutting edge industry" refers to
sectors or fields involved in the
development and application of the
most advanced and innovative
technologies, products, or
methods. These industries often
push the boundaries of
technological progress and play a
crucial role in shaping the future of
the economy, society, and the
environment.
The Cutting Edge Industry Characteristics
Technological Innovation: They are often pioneers in developing new technologies, which can encompass anything from artificial
intelligence, robotics, information and communication technology, to renewable energy and biotechnology.

Intensive Research and Development (R&D): These industries typically invest a large proportion of their revenues in R&D to
continuously create new and revolutionary products or services.

Rapid Change: A key characteristic of cutting edge industries is the fast pace of innovation and change. This means that
products and technologies can become obsolete quickly, requiring continuous innovation.

Significant Social and Economic Impact: Cutting edge industries have a major impact on the economy and society, creating jobs,
transforming industries, and affecting social and environmental issues.

Global Collaboration: Many cutting edge industries work globally, with collaboration between companies, universities, and
governments across countries to drive innovation and the dissemination of new technologies.
Key Trends and Innovations

Technological Advancements Market Demand Shifts

Revolutionary breakthroughs in technology are reshaping New trends in consumer behavior are driving radical
industries, from the integration of AI to continuous changes in product development and service offerings.
innovation.
Market Size and Growth Potential

Industry Growth Global Reach

This industry is experiencing exponential growth, Expanding into global markets, this industry
driven by increased demand and technological shows significant growth potential and diverse
advancements. opportunities.
Case Illustration for West Java Province
The age structure as seen in West Java indicates that development can be focused on harnessing the
The population structure of West Java Province is dominated by Millennials energy and creativity of the younger generation, while also ensuring that the needs of the older generation
and Generation Z (SP 2020) are met.

Dominance of the Young Generation

Generation Z and Millennials, who account for over 50% of the population, represent a significant
potential for innovation and technology adoption.

Labor Market
The high percentage of the working-age population (Generation Z and Millennials) indicates an abundant
human resource for economic development.

Infrastructure Needs
The availability of adequate educational, healthcare, and transportation facilities is a priority to support
the dynamic activities of the younger generation.

Digital Consumers
The high number of Generation Z and Millennials also means a large market for digital products and
services, providing opportunities for the growth of the start-up and e-commerce sectors.

Welfare and Retirement

Economic Development
Focus on developing economic sectors that appeal to the younger generation, such as
technology, creative industries, and sustainability, to leverage their innovation and
creativity.
Health and Environment
The younger generation's understanding and concern for health and environmental
issues can be leveraged to advance eco-friendly initiatives and sustainable
development.
The lower percentage of Baby Boomer and Pre-Boomer generations requires careful planning for long-
term retirement and social welfare.
Public Policy
Policymakers must develop strategies targeting the needs and preferences of the younger generation,
including education, employment, and entertainment.
Dynamic Demographics
The dynamics of demographic changes must be continuously monitored to predict and respond to the
changing needs of the population in the long term, including shifts in the labor and consumer markets.
This is in line with the results of the 2023
Jobs Survey by the World Economic Forum
(WEF)…
Future of Jobs Report 2023 (WEF,
2023)
Green Transition:
Impact: Driving job growth.
Transitioning to a greener economy creates new job
opportunities in sectors like renewable energy and green
technology.

Technology:
Impact: Both driving job growth and decline.
Technology creates jobs in fields like AI and automation
while also reducing jobs in automated sectors.

Economic Outlook:
Impact: Driving job decline.
Negative economic outlooks can reduce job availability due
to factors like recessions and global uncertainty.
 Key Points

Total 23% of current jobs will undergo

Job changes.
Chan
ge

Each red dot represents one million

Lost lost jobs.
Jobs

Each green dot represents one

New million new jobs.
Jobs
Proportion of Tasks Completed by Humans vs.
Machines

2022:
‐ 34% of tasks were completed by machines.
‐ 66% of tasks were completed by humans.
2027 (Projected):
‐ 43% of tasks will be completed by machines.
‐ 57% of tasks will be completed by humans.

Trend

‐ Increasing role of machines in task completion.

‐ Decreasing proportion of tasks completed by
humans.
‐ Women. 79% of DEI programmes prioritize women, indicating a
strong focus on gender equality and empowering women in the
workplace.
‐ Youth from Gen Z (under 25): 68% of DEI programmes prioritize
young people from Generation Z, highlighting the importance of
including younger generations and preparing them for future
leadership roles.
‐ Those with Disabilities. 51% of DEI programmes prioritize
individuals with disabilities, showing a commitment to creating
accessible and inclusive work environments for people with different
abilities.
‐ Those from a Disadvantaged Religious, Ethnic, or Racial
Background: 39% of DEI programmes prioritize individuals from
disadvantaged religious, ethnic, or racial backgrounds, emphasizing
the need for diversity and addressing historical inequalities.
‐ Older Workers (over 55). 36% of DEI programmes prioritize older
workers, recognizing the value of experience and the need to support
older employees in the workforce.
‐ LGBTQ+. 35% of DEI programmes prioritize LGBTQ+ individuals,
reflecting efforts to ensure inclusivity and support for diverse sexual
orientations and gender identities.
‐ Those from a LowIncome Background. 33% of DEI programmes
prioritize individuals from lowincome backgrounds, aiming to
provide opportunities and support for those facing economic
https://www.weforum.org/events/t
he-growth-summit-jobs-and-opport
unity-for-all-2023/sessions/2023-fut
ure-of-jobs-report-media-briefing/
Key Messages
1. Structural Transformation:
Various interconnected megatrends like aging, Industry 4.0 (automation and digitalization), migration, globalization, and the green economy
are driving rapid structural changes, increasing the demand for a skilled workforce that can adapt to these changes.

2. Cutting Edge Industry:

Cutting edge industries, characterized by technological innovation, intensive research and development (R&D), rapid change, significant social
and economic impact, and global collaboration, are at the forefront of shaping the future economy and society.

3. Key Trends and Innovations:

‐ Technological advancements and market demand shifts are revolutionizing industries, creating a dynamic landscape that requires
continuous innovation.
‐ Industry growth and global reach present significant opportunities for expansion and development.

4. Demographic Dynamics in West Java:

‐ The population structure dominated by Millennials and Generation Z presents a significant potential for innovation and technology
adoption.
‐ The high percentage of the working-age population suggests abundant human resources for economic development.
‐ Adequate infrastructure and public policy focusing on the younger generation are essential for supporting economic activities and ensuring
sustainable development.

5. Future of Jobs:
‐ The transition to a greener economy and technological advancements are driving both job growth and decline, necessitating strategies to
manage these changes.
‐ The increasing role of machines in task completion highlights the need for continuous upskilling and reskilling of the workforce.
General Conclusion
‐ This presentation highlights the critical need for
readiness in a rapidly evolving job market shaped by
technological advancements, demographic shifts,
and global megatrends. Indonesia’s regions for
example West Java's youthful and dynamic
population presents a unique chance to leverage
innovation and stimulate economic growth.
‐ However, addressing infrastructure needs, enacting
supportive public policies, and focusing on
continuous workforce development are essential to
fully capitalize on these opportunities and mitigate
potential challenges.
Way Forward
1. Workforce Development:
- Invest in education and training programs that focus on digital
literacy, technological skills, and innovation to prepare the
workforce for the demands of Industry 4.0.
- Promote continuous upskilling and reskilling initiatives to
ensure that the workforce remains adaptable and
competitive.
4. Economic Development Focus:
‐ Prioritize the development of economic sectors that
appeal to the younger generation, such as technology,
creative industries, and sustainability, to leverage their
innovation and creativity.

2. Infrastructure Improvement: 5. Monitoring and Adaptation:

- Enhance educational, healthcare, and transportation ‐ Continuously monitor demographic dynamics and
infrastructure to support the dynamic activities of the younger labor market trends to predict and respond to the
generation and foster economic development. changing needs of the population, ensuring long-term
sustainable development.
3. Public Policy and Strategic Planning:
- Develop policies targeting the needs and preferences of the
younger generation, including education, employment, and
entertainment.
- Implement strategies to advance eco-friendly initiatives and
sustainable development, leveraging the younger generation's
concern for health and environmental issues.