It is believed that this industry 4.0 has contributed to higher productivity and a greater production scale in response to the problem of the middle-income trap.

The IGJ’s notes how the classic recipe of capitalism was again transmitted by the World Bank and OECD to Indonesia as a way out of the stagnation of current economic growth by adapting to global trends that lead to the models of economic transformation and digital technology-based industries in the Global Value Chain scheme.Īccording to the World Bank, the main key of GVC successes as a source of new economic growth is by doing trade transformation that leads to the industrial revolution 4.0. In IGJ’s Framing Paper on Omnibus Law also has been mentioned that the change on globalization trends nowadays is caused by the changes of global production supply chains that are become more regionalized due to the development and the use of digital technology. The process of industrial globalization where global supply chains in many types of industries will encourage the transition process of using technology becomes trends globally. The tendency for layoffs will not be avoided if the transition is done in order to increase the productivity of 10-12%.

The production which known as Smart Factory will add manufacturing productivity where the productivity occurs with the lower utilization of human labor. The intended bill such wants to create jobs, but by encouraging the adaptation and utilization of technology, especially based on Industry 4.0, there will be a tendency to the labor reduction in existing or current industries. These two things are simply can be seen as contradictory. This issue will certainly have an impact especially in the employment field“.

that with job creation it is expected to be able to absorb the widest Indonesian labor in the midst of increasingly competitive competition and the demands of economic globalization“.īesides, in the background, it is quite clearly stated about preparing competitiveness in facing digital revolution: “ In line with technological developments, current needs and conditions, labor challenges and problems are increasingly complex and varied, especially in facing Industrial Revolution 4.0 where in the future, the digitalization era become more dominant and the existence of demographic bonus in Indonesia.

Discussions and debates have begun when cognizing the point b of consideration in the bill stating “…. The planning on changing of labor regulations in the National Legislation Program 2020 through the bill of Omnibus Law on Job Creation has triggered long discussions among workers and academics.

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