Artificial Intelligence Challenges To Future Industries And Employment In Indonesia
The world is witnessing significant changes in several tasks traditionally performed by humans which have been unleashed by technological innovations, also known as, Artificial Intelligence. These innovations are implementing major changes to future industries and employment, especially in Indonesia. Formerly, computers could execute only the rigidly defined tasks for which they were programmed. Now they can be given a general strategy for learning, enabling them to adapt to new techniques that only humans could do.
AI’s capabilities have dramatically improved over the past years as it now has the potential to complete mundane tasks through intricate automation that will increase productivity extremely. At the moment, only11% of adults are currently above the skill level that AI is close to reproducing. Theoretically, this can even remove monotonous tasks from humans and free them up to be increasingly creative. Overall, AI is much more efficient, faster and less risky to humans. Indonesia is part of ASEAN (Association of Southeast Asian Nations) which has adopted AI over the past few years, with current adoption rates standing at 14%, compared with 8% a year ago. In the year 2017, the UN strongly stated Artificial Intelligence is already transforming our world “socially, economically and politically”, with its main aim to develop systems which can understand, think, learn, and behave like humans, which further lead to its increasing role in the economy today.
While advanced technologies might seem hopeful in the moment, they do come along with colossal detriments to the labour market. This fundamentally means job losses and income inequality will increase significantly. Middle-level jobs that require routine manual and cognitive skills are the ones that are most at risk, this is called job polarization. Massimo Grosso Geloso, Head of the Organization for Economic Co-operation and Development (OECD) Indonesia, further acknowledged this by stating that 9% of jobs have been replaced by automation. If humans don’t keep up they will lose the race to technology However, Abdul Wahab Bangkona, the Expert for the Indonesian Manpower Minister on International Relations reassures by saying “Technology can be a challenge but also an opportunity. Education and skills training are important to anticipate changing employment in the future. ” Yes, some workers will be temporarily displaced, but even as automation destroys old jobs, it creates new ones. The new jobs tend to be focused on the sort of non-routine tasks requiring great mental agility that computers are inferior at, which means they pay more. Skills development and improvement are vital for the future of work to the country therefore, the government of Indonesia is immensely working hard to tackle employment challenges and to prepare for jobs in the future.
Alongside social partners like the other ASEAN countries, Indonesia has developed new vocational programs and increases marketability of skills to help with the job loss issue. AI is not only a replacing technology, but also an enhancing one and, as populations age, it should be used to help increase productivity.
