KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Labour Export Proposed to Address Demographic Bonus Explosion

The industrial sector has not maximally absorbed the magnitude of the demographic bonus, this is also evident in the high trend of capital-intensive investment compared to labour-intensive investment. The business world proposes that the government make a breakthrough in labour exports to countries with aging populations.

Arsjad Rasjid, Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), said that the industrial era 4.0 has significantly reduced the number of jobs. As a result, the large demographic bonus cannot be accommodated by the industrial sector.

"With the name Industry 4.0, digitalisation, and technology, the number of jobs will definitely decrease, because they are replaced by machines. That is a fact. Well, for that we must anticipate too,’ said Arsjad in CNBC Indonesia's Economic Update 2024 programme, quoted on Wednesday (6/8/2024).

To anticipate these problems, the government can prepare human resources who have skills according to the needs of countries with old populations. Not only will it solve the problem of labour absorption, but it can also be a place to bring home skilled workers who have insight into developed countries whose populations are old.

"Well, that is an opportunity for us to send our younger siblings to these countries. While learning too. Open your mind,’ said Arsjad.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry