Capturing Indonesia's automation potential
Automation is transforming the nature of work in Indonesia, driving strong GDP growth and lifting workers’ incomes. But it could add much more if Indonesia lifts its rate of automation to match ASEAN leaders.
Our report for the Australia-Indonesia Partnership for Economic Development (Prospera) is the first to use Indonesian data to study automation and the future of work in the country. It finds that since 2000, advances in technology have eliminated about 5.5 hours of repetitive and menial tasks from the average Indonesian working week, while also adding more than A$170 billion to the nation’s GDP.
But there is more to be done. With the appropriate policies that encourage technology adoption while helping workers adapt, automation could add up to A$500 billion to Indonesia’s GDP by 2030.
This will be critical to Indonesia achieving its strong growth targets, and also has the potential to improve working conditions across the economy if workers – especially vulnerable cohorts – are targeted and supported.