Page 54 - e-KLIPING KETENAGAKERJAAN 31 DESEMBER 2019

economic growth in priority sectors, such as manufacturing, infrastructure and
agribusiness --- almost double the current number of skilled workers.

With such skills issues, the looming increased adoption of automation would be
problematic. A 2018 study by the McKinsey Global Institute and the World Bank
projected a shortage of 9 million skilled and semiskilled workers for the digital sector
in Indonesia between 2015 and 2030.

As many as 120 million workers from the world's 12 largest economies, including
Indonesia, may also need to participate in reskilling programs in the next three
years as a result of automation enabled by artificial intelligence, according to a
study released by technology giant IBM's Institute for Business.

"Digital economic developments leave no choice for businesses to shift to
automation," University of Indonesia labor law expert Aloysius Uwiyono said in
August. "But those who are laid-off should be educated so that they can get a better
job."

Nearly 75,000 workers were laid off between 2015 and 2018, according to
Manpower Ministry data, albeit gradually decreasing in number year by year. The
data clashes with that of Labor Institute Indonesia, which calculated that at least
100,000 workers in 2018 alone were fired due to increasing digitalization in various
sectors.

As part of President Jokowi's campaign to solve the issues mentioned above, the
government will disburse Rp 10.3 trillion (US$725,217) for training through pre-
employment cards to equip jobseekers with the needed job skills.

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