Industrial Revolution 4.0: Universities in the Midst of Attack of the Industrial Revolution

The Minister of Finance, Sri Mulyani, speaking on the seminar and discussion on “Preparing Indonesia’s Human Resources in Facing the Fourth Industrial Revolution” on January 14, 2019 (Photo: Beritasatu)

Facing this digital-based industrial era, there are a number of jobs that shifts to new ones, with different expertise. The industry in Indonesia is entering the 4.0 era. In response to this, Vice President Jusuf Kalla asked universities to follow these changes and market needs.



“Let’s avoid the campus teaching skill A, but the needs call for skill B. Science must constantly change,” said JK, delivering his opening speech in the National Seminar and Dialogue on Preparing Indonesia’s Human Resources in Facing the Fourth Industrial Revolution, held by the State Universities Alumni Association, Monday, January 14, 2019.



In meeting the needs for industrial revolution 4.0, JK said that the government should focus on improving the quality of its human resources. However, he expects the campus and alumni of universities to contribute by providing inputs for both the education world and government.



This statement from the Vice President was agreed by the Minister of Finance Sri Mulyani, who said that President Jokowi felt the need to improve human resource quality to face the era of industry 4.0. The Ministry of Finance supports this program in two ways, namely allocating funds for human resource improvement from APBN and taxation mechanism.



Minister Sri Mulyani explained that human resource development is done by investing in education and health. From the allocation amount, the government spends its APBN for education in accordance to the constitution at 20 per cent or around IDR 492.5 trillion. Improving human resources is done as early as possible through Early Childhood Education (PAUD) program.



“Developed countries like Singapore, Finland, Korea, and Japan pay great attention to early childhood education. Managing PAUD becomes an important instrument,” said the best minister of finance in the world according to the World Bank and IMF. 



Investment on human resources is done by maximizing health budget of IDR 123 trillion. This budget is focused on pregnant mothers and program against child malnutrition. The social program to help poor families also becomes the priority of APBN 2019, in addition to connectivity infrastructure and basic services to reduce inter-regional disparities.



Because of the development that focuses on reducing disparities and improving human resources as conveyed by the Minister of Finance, Sri Mulyani, the National Development Planning Agency (Bappenas) will be holding the Indonesia Development Forum. This international forum, supported by the Government of Australia through Knowledge Sector Initiative, promotes solutions to Indonesia’s key development challenges based on researches and best practices.

The Government’s Bait to Engage Private Sector



The Government of Indonesia needs the private sector to build human resource capacity to face the era of industry 4.0. The Minister of Finance, Sri Mulyani, said there will be a tax deduction for companies holding job training, especially on expertise related to technology and digital.



“The government needs private sector for this. The aim is not only to absorb workers but also improve industries in Indonesia,” said Sri Mulyani on mid-January.



Job training for workers is indeed useful to improve capacity and productivity. The Minister of National Development Planning/Bappenas, Bambang Brodjonegoro, said that improving workers’ capacity can be done by providing vocational training facilities. The objectives are to gain new skills and improve existing ones.



“In Australia, there is an institution playing an important part in building skills, namely TAFE (Technical and Further Education). Its participants range from new workers to existing ones wanting to improve their skills or gain new skills,” said Minister Bambang.



Bambang said Australian workers from vocational education receive higher salaries than graduates from general education school. On the other hand, in Indonesia, the highest unemployment prevalence rests in those graduated from vocational schools.



The solution, according to Bambang, is that the Government of Indonesia will involve the industry for vocational education. Learning in a company will use up the same amount of time as attaining knowledge in a class. This program is intended so that vocational graduates obtain skills suitable for market needs. They will be certified, which in turns ensures the number of wages and salaries they will receive.



One of the entrepreneurs working together with the Ministry of Education and Culture on vocation is Chairul Tanjung. In his retail company, Chairul Tanjung has provided an apprenticeship space for vocational school students by giving training as cashier and marketing.



“If you are doing a good job, after graduating you can immediately work,” said CT, Chairul Tanjung’s nickname.



CT hopes that the cooperation efforts shown by the industry in improving human resources are welcomed by education institutions. He argues that a number of universities are still reluctant in following the demands of the industry. In the era of industry 4.0, he said, efficiency and productivity are not enough to excel in competition. We also need innovation, creativity, and entrepreneurship.



Head of Employers’ Association of Indonesia, Haryadi Sukamdani, said that there is a gap between expertise needed by the industry and output from educational institutions. He is thankful that the government is currently attempting to link between the industry and education.  



“Because employers do not have time for re-matching,” said Haryadi.



He continued that the industry can establish its own university, in line with its needs, and provide the space for people to improve their competencies.



Improving human resource to face the era of industry 4.0 cannot be undertaken by the government alone. It needs the private sector and the community. The same goes with inclusive development and sustainable economic growth in Indonesia, which still need inputs from research institutions, local activists, scholars, and the non-government sector.



Indonesia Development Forum becomes one of the spaces for all stakeholders to convene and provide developmental solutions. This event returns in 2019 to accept various new and strategic breakthrough offers in resolving disparity issues, followed by an initiative to turn the discussion results into applicable action plans. Please look forward to the launching of IDF 2019!