Digital Economy: Hundred Millions of New Advocates Threaten Indonesia

In 2017, a research institute Mckinsey Global Institute predicts the majority of jobs will shift from human to machine power controlled digital technology. In addition to predictions about the unemployment rate, Mckinsey also mentioned that in the coming 2030 digital-based economy will give birth at least 9% of jobs that have never existed before. Although not calling Indonesia directly, but the negative impact of digital-based economy is considered to be a negative impact for Germany and China.

President of the Republic of Indonesia, Joko Widodo, said that Indonesia have to prepare a digital economic road map, following Thailand and Singapore who have already published the long-term strategy. To avoid labor-intensive industries from the negative impacts of the digital economy, the government will maximize the development of the '10 new Bali ' or boosted tourist sites to spin the economy.

Earlier, Tourism Minister Arief Yahya stated that the government has pursed '10new Bali 'into four destinations, namely Lake Toba, Mandalika Special Economic Zone, Labuan Bajo, and Borobudur Temple Area.

Meanwhile, according to Minister of Industry Airlangga Hartanto, the government has prepared training for the community to face the era of digital economy called 'skill of competence'.

“Behind the robot there will be a lot of manpower in the field of maintenance, the important thing is retraining and reskilling, it's the government's job to do retraining." he said.

The Ministry of Industry has published the road map of digital economy contains 10 strategic steps entitled Making Indonesia 4.0 that targeting Indonesia to be the 10th largest strength of economy in the world in 2030.

Indonesia's digital economic roadmap will focus on developing five manufacturing industries, there are food and beverages, automotive, electronics, chemicals and textiles. The contribution of these five sectors to gross domestic product (GDP) reaches 17.8% with an increase of research budget 2% of GDP’s nominal.

Five of the 10 steps to be implemented bythe government include empowering SMEs through digital technology, improving digital infrastructure, attracting foreign investors, changing educational curricula, and providing incentives for digital technology-based businesses.