The Industrial Revolution 4.0 and Labour Issues: Case in Indonesia

The Industrial Revolution 4.0 allows the advanced technology to replace the need for human power. Based on the analysis of McKinsey Global Institute, Industrial Revolution 4.0 has an impact especially on the labour sector because the presence of robots and machinery will eliminate many jobs in the world. It is expected to eliminate 400-800 million jobs by 2030. This automation and robotization era raises two paradox conditions. The digitalization era provides benefits through the ease and efficiency of economic activities of companies and industries to increase productivity. On the other hand, Industrial Revolution 4.0 reduces the use of low skill labour because it is replaced by artificial intelligence, so the unemployment rate will increase. Indonesia will experience a demographic bonus. In 2030, estimated the population of productive age will reach 64 percent of the total population, so need for employment will increase. And, the presence of Industry 4.0 will raise problems (threats) related to employment in Indonesia, while providing opportunities