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The Center of Economic and Law Studies (CELIOS) recently released a comprehensive study titled “The Future of Work in Indonesia: Key Actors’ Perspectives on the Transformation of Work in the Public and Private Sectors from Socio-Economic and Policy Standpoints.” The study offers an in-depth exploration of the challenges and opportunities arising from the rapid digital transformation of the Indonesian labor landscape.
Through focus group discussions held at the Faculty of Administrative Sciences, University of Indonesia (FIA UI), in collaboration with Germany’s Willy Brandt School and DAAD Indonesia, the research engaged a wide range of stakeholders, including government officials, academics, labor unions, NGOs, and other relevant parties. The findings revealed a broad consensus that digitalization holds significant potential to drive economic growth through increased productivity and the creation of new jobs.
However, the study also highlights serious concerns over the potential widening of inequality, especially affecting vulnerable groups such as informal workers, rural communities, and individuals with limited access to technology.
Key findings underscore the urgency of cross-sector collaboration to address policy and skills fragmentation. Experts stress the need for Indonesia to learn from other countries’ experiences in dealing with bureaucratic dynamics in the digital age.
Furthermore, the study calls for a balanced approach between digital economic development and worker protection, advocating for universal yet responsive social policies tailored to the specific needs of vulnerable groups and the asymmetric challenges brought by technological change. Inclusive narratives and in-depth analyses of the impact of automation and artificial intelligence (AI) are deemed essential in preparing Indonesian society for a future of work increasingly dominated by technology.
The report recommends a comprehensive policy response, including strengthened collaboration between government and non-governmental stakeholders in formulating effective digital transformation strategies. It also emphasizes the importance of social protection for workers in the digital era and adapting education curricula to equip future generations with relevant skills.
