Implementation of Automation Causes Shrinking Jobs

INDUSTRY.co.id - Jakarta, Chamber of Commerce and Industry (Kadin) Indonesia is worried about the recent retail closure. This was stated by Vice Chairman of Kadin for International Affairs, Shinta Kamdani in Jakarta (4/10/2017).

"With the retail closure will have less impact and shrinkage of employment, the society's income will decrease and expenditure or consumption will decrease," said Shinta.

Based on Aprindo's record, the retail industry is only able to grow 3.8 percent, this figure is far below the growth in the first half of 2016 which reached 10.25 percent.

Furthermore, Shinta said, the impact of the application of technology in large companies participate take the loss of demand side in the community. "Right now the technology automation is very influential," she added.

As is known, the current industry in Indonesia is entering a new era of automation. In this era, humans created robots and computers to help ease the physical work and daily routine. To that end, the government continues to encourage the application of Industry 4.0 to enhance the competitiveness of national industries in the digital era.

Shinta is worried that the implementation of automation will cause the shrinking of employment. "The reason, now the amount of investment declines, because capital-intensive not to labor-intensive again that absorb labor," she added.

Shinta also Stated, Now the entrepreneurs are very careful. More consolidated than over expansion. For that, Shinta hopes the government will immediately take steps to overcome the problem. "Jobs are very important, because with the growth of employment will increase the purchasing power of the community," she said.