Industrial Revolution 4. 0 and Its Impacts to Indonesian Labor Force

Abstract

The most significant impact of Industrial Revolution 4. 0 goes to low-educated labors with repetitive work. International Labor Organization (ILO) reported that 56 % of job opportunity are threatened due to the emergence of robots and automation. Experts predict that labors will lose jobs and stagnancy of wages for high market competition suggests businesses to minimize labor cost. It might gets worse if liberal market system continues and waging policy does not advocate labor’s interest. Transition of jobs as the result of Industrial Revolution 4. 0 gives businesses advantages of less labor cost due to robots and automation, yet putting labors aside to disadvantage. More massive automation will challenge labor consolidation because more permanent labors will lose their jobs. However, others are optimistic that Industrial Revolution might brings forth advantages for labors such as less working hours, more productivity and balanced life. In the case of Indonesian labor market, BPS (Central Body of Statistics) shows that Industrial Revolution 4. 0 has not yet bring high-scale impact. Still awareness and preparation is obligatory to embrace these impacts. Government plays significant role in this matter to lead to