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1 Global Megatrends : Revolution Industry 4.0

2 The Future of Works : Are you ready for the future ?

3 Employment Transformation - Indonesia

4 What’s Next
Navigating the next industrial revolution
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Welcome To The 4th Industrial Revolution:


Transform Now Or Be Disrupted Tomorrow

Aberdeen
Navigating the next industrial revolution
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1
IMPACT
ECONOMY
__________________________________________
MEGATRENDS
2
IMPACT
Physical BUSINESS
_____________________________
__________________________________________

3
MEGATRENDS IMPACT
Biological NATIONAL
_____________________________ __________________________________________

4
IMPACT
MEGATRENDS
SOCIETY
Digital __________________________________________

5
_____________________________ IMPACT
INDIVIDUAL
__________________________________________

The Fourth Industrial Revolution , World Economic Forum 2016


Global Mega trends : World Economic Forum
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▪ Growth
▪ Employment
1
IMPACT
MEGATRENDS ECONOMY ▪ New skill
▪ Nature of work
Biological __________________________________________

_____________________________

▪ Genome ▪ Customer expectation


▪ Data-enabled products

2
▪ Synthetic biology IMPACT
▪ New collaboration
BUSINESS ▪ New operating models
__________________________________________

MEGATRENDS
Physical ▪ Public institution

3
IMPACT
▪ Deep studies
_____________________________
NATIONAL ▪ New way to voice opinions
▪ Autonomous vehicles __________________________________________
▪ 3D printing
▪ Advanced robotics

4
▪ New materials IMPACT
▪ New modernity vs traditional values
SOCIETY ▪ Individual values vs space work
__________________________________________
MEGATRENDS ▪ Behaviors
Digital ▪ Privacy
_____________________________
▪ Ownership

5
IMPACT
▪ IoT ▪ Consumption
▪ Blockchain INDIVIDUAL ▪ Time for work and leisure
__________________________________________
▪ Platform
The Fourth Industrial Revolution , World Economic Forum 2016
Industry 4.0, not only comprises the digitization but will also revolutionize the product and service portfolio of companies
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Economy Impact
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Industrial Revolutions 4.0 has impacted on economy issues that creates ‘future of works’.
Growth
The impact that the Industrial Revolution 4.0 will have on economic growth an issue that divides
economists. ‘Techno-pessimist’ argue that critical contributions of the digital revolutions have
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already been made and their impact on productivity is almost over. ‘Techno-optimist’ claim that
technology & innovation are at an inflection point and will soon unleash a surge in productivity
and higher economic growth.

Employment
There are two competing effects that technology exercises on employment. First, there is a destruction
effect as technology-fueled disruption and automation substitute capital for labour, forcing workers to
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become unemployed or to reallocate their skills elsewhere. Second, this destruction effect is accompanied
by a capitalization effect in which the demand for new goods and services increases and leads to the
creation of new occupations, business and even industries.

The Nature of Work


Today, the on-demand economy is fundamentally altering our relationship with work and the
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social fabric in which it is embedded. More employers are using the “human cloud” to get things
dones.. This is the new on-demand economy, where providers of labor are no longer employees in
the traditional sense but rather independent workers who perform specific tasks.

Source: Klaus Schwab, 2016, The 4th Industrial Revolution


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1 Global Megatrends : Revolution Industry 4.0

2 The Future of Works : Are you ready for the future ?

3 Employment Transformation - Indonesia

4 What’s Next
Future of works
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Demographic & Socio-Economic The 8 FoW Scenarios2

1 Jobs Impact
New categories of jobs will
2 emerge, partly or wholly
displacing others.
The Future of
Industrial Works1 3
Revolution Skills Impact
4.0 4 The skill sets required in both
old and new occupations will
5 change in most industries.

Technological 6
The fourth industrial revolution is interacting with other socio-economic and Works Impact
demographic factors to create a perfect storm of business model change in all
industries, resulting in major disruptions to labor markets. New categories of
7 Transforming how & where
jobs will emerge, partly or wholly displacing others. The skill sets required in
people work.
both old and new occupations will change in most industries and transform
how and where people work. That’s the ‘future of works’.
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Source:
1World Economic Forum, 2017, The Future of Jobs
2World Economic Forum & BCG, 2018, Eight Futures of Work: Scenarios and their

Implications
Future of Works : Drivers of change
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Future of Jobs Report 2016, World Economic Forum


Global perspective - employment outlook across job families ( Jobs )
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Future of Jobs Report 2016, World Economic Forum


Regional perspective ( Jobs )
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Four key trends affecting employment


until 2020

The Fourth Industrial Revolution Report 2016, JLL


New Job families will emerge ( Jobs )
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New job
families and
fields will
emerge as a
result of
disruptive
tech creating
demand for
new skill
types
New Job families will emerge ( Example: IoT revolution will spawn 15 new roles ) ( Jobs )
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Change in demand for core work-related skills ( Skills )
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Skills Impact : Change in Skills Demand ( Skills )
16

Technological, Social
and Emotional Skills
C even
will become
more Important

© 2018 PT Astra Internasional Tbk.


The skills needed to face future of works ( Skills )
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Functional Skill

▪ Science
▪ Technology
▪ Art STEAM C
▪ Engineering
▪ Math
▪ Combined disciplinary skills
▪ Data and Digital literacy

Soft Skill

▪ Creativity
▪ Analytical skill & problem solving
C
▪ Communication & networking skills
▪ Entrepreneurship
▪ Flexible & adaptive skills
Works Impact : The Way of Work Transformation ( Works )
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1. CHANGE 2. WORKING WITH 3. PERMANENT 4. PLATFORM 5. DIGITAL FROM


@SPEED PURPOSE FLEXIBILITY FOR TALENT THE INSIDE OUT

The ability to change, and Embedding a higher sense Flexibility is more than Organizations arebecoming To unlock growth in the
change quickly, is of purpose into the workingwherever/ smartplatformsfor Human Age, technology
emerging as adifferentiating employee value whenever; it’s also matching skillsupplywith must augment the human
organizational competency proposition unlocks rethinking what work is workdemand while work experience
individual potentialand done, how it is done, and maximizing human
spurs people to be by whom creativity andambition
change agents
IN P R AC T IC E

• Agile organization design • The thrive contract • Working inflow • Diverse talentecosystem • Digital living
• Exponential learning • Careers peoplecrave • The rise of adaptive • Rethinking theHR • Distributed &flexible
working paradigm teaming
• Cultivating a labmindset • Commitment tohealth
and well-being • Support for digital lives • The intelligentworkplace • Fostering a digital culture

Source: Mercer, 2018, Global Trends Talent Study: Unlocking Growth in the Human Age © 2018 PT Astra Internasional Tbk.
Conclusion : Impact on Jobs , skills , and works 19

JOBS SKILLS WORKS

▪ Redefining the job roles ▪ ICT literacies & STEAM skills ▪ Leveraging flexible working
▪ Diversifying & Shifting to become the most demanding ▪ Collaboration with technology
the right employment skills ▪ Democratizes learning &
model ▪ Upskilling & Reskilling, esp. innovation
▪ More agile in job rotation for potentially disrupted jobs ▪ Collaboration & project based
to enlarge the experiences ▪ Creating/Acquiring new working
& competencies organization capabilities ▪ Less hierarchical Organization

© 2018 PT Astra Internasional Tbk.


Future of Works – Disruption in Revolution Industry Era
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21

1 Global Megatrends : Revolution Industrion 4.0

2 The Future of Works : Are you ready for the future ?

3 Employment Transformation - Indonesia

4 What’s Next
Trends shaping the future employment 22

The 4 Trends Impacting


Employment WEF Trends Relations

Advanced ▪ Advanced Robotics &

Trend 1
Technology Autonomous Transport
▪ Advanced Manufacturing & 3D
Printing
▪ Mobile Internet & Cloud
Technology

Sharing ▪ Crowdsourcing, The Sharing

Trend 2
Economy & Economy, and Peer-to-peer
Crowdsourcing Platforms

Gig Economy ▪ Changing Work Environment &

Trend 3
Flexible Working Arrangements

New Generations ▪ Young Demographics in

Trend 4
Of Workforce Emerging Markets

Source:
World Economic Forum, 2017, Future of Jobs Survey © 2018 PT Astra Internasional Tbk.
Trend 1 : Advanced technology 23

Indonesia Global
Other

Avoid mistakes/

Trend 1: Advanced
reduce risks

Augment human
performance &
productivity

0% 4%
Technology (2)
Emerging wave
Reduce costs

Note: Percentages may not


Automating work now has a
more transformative role as
add up to 100% due to
43% 15% rounding it augments human
40% 57% capability and creates new
work, an evolution from
17% 24%
pure labor substitution.
While for Indonesia, there
remains an emphasis on
Source: Willis Towers Watson FOW Global Survey, 2017 – 2018, Indonesia reducing risk.

© 2018 PT Astra Internasional Tbk.


Trend 1 : Advanced technology 24

62% | 41% Global 38% | 26% Global 36% | 11% Global

32% | 29% Global 41% | 30% Global 18% | 21% Global

6% | 30% Global 21% | 44% Global 45% | 68% Global

Talent at the
Support humans Take over some of the Autonomously
completing work found in jobs and complete work
center:
business processes business processes

Automation and
1 – Not at all / 2 3 4 / 5 – To a great extent digitalization are
Indonesia Global Indonesia Global Indonesia Global used to support,
not replace,


Note: Percentages may not add up to 100% due to rounding
humans.
Source: Willis Towers Watson FOW Global Survey, 2017 – 2018, Indonesia

© 2018 PT Astra Internasional Tbk.


Trend 1 : Advanced technology 25

Humans Automation

3 years ago…
Indonesia 93% 7%

Global 93% 7%

Currently…
Indonesia 89% 11%
Use of automation will
continue to expand:
Global 88% 12%

In 3 years…
It is expected to nearly
Indonesia 79% 21%
double over the next
three years.
Global 78% 22%

””
Source: Willis Towers Watson FOW Global Survey, 2017 – 2018, Indonesia

Source: Willis Towers Watson FOW Global Survey, 2017 – 2018, Indonesia © 2018 PT Astra Internasional Tbk.
Trend 2 : Sharing Economy and Crowdsourcing 26

GLOBAL TRENDS

© 2018 PT Astra Internasional Tbk.


Trend 2 : Sharing economy and Crowdsourcing 27

INDONESIA TREND on Sharing Economy & Crowdsourcing Platform

Advertise on Healthcare Healthcare Online Online


Motorcycle Services Services Transportation Transportation

Mitra : 15.000 Mitra : 3.500 Mitra : 20.000 Mitra : 900.000 Mitra : 930.000
(Pengemudi Motor) (Dokter & Perawat) (Praktisi Kesehatan) (GoCar & GoRide) (GrabBike & GrabCar)

Active User : Active User : Active User : Active User : Active User :
N/A 250.000 14.000.000 15.000.000 17.000.000

Valuation (2017) : Valuation (2018): Valuation (2018): Valuation (2018): Valuation (2018):
US$ 0,77 M US$ 0,86 M US$ 0,91 M US$ 4 B US$ 7 B

Source :
1Tech in Asia, 2018, Top 20 Indonesian Startup Platforms
2Kemkominfo, 2018, Pengarusutamaan Kewirausahaan melalui integrasi E-Commerce dan Media Sosial
© 2018 PT Astra Internasional Tbk.
Trend 3 : GIG Economy 28

Indonesia’s Trend

Source: Sribulencer Survey, 2018, https://blog.sribu.com/infografis-pekerja-muda-indonesia-makin-minati-pekerjaan-freelance © 2018 PT Astra Internasional Tbk.


Trend 3 : GIG Economy 29

FREELANCER DALAM USIA

Demographically, millennials
owns the biggest percentage in
working world and it is
predicted that the number
could reach up to 75% in 2025.
What is surprising is that
nowadays more than one-third
of the millennials all over the
world is freelancers, that is also
predicted to be increasing in
number.
I Gede Christian – PPM Manajemen, 2017, Gig
Economy: Do Companies Need to be Worried?

Source: Sribulencer Survey, 2018, https://blog.sribu.com/infografis-pekerja-muda-indonesia-makin-minati-pekerjaan-freelance © 2018 PT Astra Internasional Tbk.


Trend 4 : New Generation of Workforce 30

INDONESIA TRENDS TENAGA KERJA ANGKATAN KERJA


GEN Z
6.323.688 5% 22.233.393 12%
18 s.d. 21
GEN Y
64.001.817 48% 83.542.918 45%
22 s.d. 40
GEN X
30.111.063 22% 36.317.667 19%
40 s.d. 52
BB
28.513.326 21% 35.659.858 19%
52 s.d. 68
TOTAL
VET
NEW GEN 4.989.205 4% 9.753.559 5%
68++
OF TOTAL 133.939.099 187.507.395
WORKFORCE

(Y+Z) Tenaga Kerja Angkatan Kerja


100
80
53% 60
represent
40
70.32 M 20
of Workforce
-
GEN Z GEN Y GEN X BB VET
Source: BPS, June 2018

© 2018 PT Astra Internasional Tbk.


Trend 4 : New Generation of Workforce 31

EMPLOYMENT STATISTIC TENAGA KERJA


The composition of Diploma to
Based on Education Level Tidak Bekerja Bachelor graduates is only 11%
5% (14,8 M) of the total Workforce.
The government must take
strategic & bold actions also
collaborate with the Industry to
improve the composition
considering the prediction of the
Bekerja Demographic Bonus in 2030.
95%

BEKERJA TIDAK BEKERJA


D1- S1 S2-S3 Tidak Sekolah
D3 9% 0% S1 S2-S3 Tidak…
3% D1-D311% 0% Tidak…
3% Tidak
SMK Tama… 4% SD
11% 14%

SMK
SD 21%
SMP
SMA 25% 18%
17%

SMP SMA
18% 24%

Source: BPS, February 2018


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1 Global Megatrends : Revolution Industrion 4.0

2 The Future of Works : Are you ready for the future ?

3 Employment Transformation - Indonesia

4 What’s Next
Linkage Future of Work to Government and Company Context
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Company’s
Industrial Revolution 4.0 Making Indonesia 4.0
Context

Industrial Characteristics Business Strategy

c c
Future of Work (HC Characteristics) HC Strategy

Stay Aware to Adapt Stay Relevant to Win


Government role for future of works
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▪ Government must proactively make several policies and


regulations that can anticipate the new employment landscape in
Indonesia.
(ie.Wages system , Social security , skill development and others )

▪ Adapting and updating the skills become increasingly important.


This means expanding development opportunities for people to
avoid skills obsolescence and depreciation.

▪ Governments and other stakeholders, including education


institution have to develop curriculum that is aligned to future
needs.
What Corporations need to do?
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Reshaping business and people strategy :


A new business landscape and competition emerge in era of revolution
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industry 4.0 . Corporations must be reshaped their business and people
strategy to maintain business sustainability in the future .

Strengthen top leadership :


Leadership is determinant factor in facing current VUCA
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environment in disruption era . Preparing strong leadership is very
crucial and important at this time .

Reinventing HR Function :
As the rate of skills change accelerates across both old and new roles in all
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industries, proactive and innovative skill-building and new talent management
is an urgent issue.
Future of Works: Are You Ready?
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