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Jakarta Post

Human capital mismanagement slows Industry 4.0

  • Bitra Suyatno

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PREMIUM
Jakarta   /   Tue, July 23, 2019   /  01:46 pm
Human capital mismanagement slows Industry 4.0 Economic Challenges: Unemployed youngsters throng a recent job fair in Jakarta. (The Jakarta Post/Ricky Yudhistira)

At a discussion themed increasing efficiency in managing state finances in the era 4.0 toward a “golden Indonesia” in June, Deputy Finance Minister Mardiasmo raised the very interesting and provocative issue that accounting standards have not considered human capital as an asset of an organization. Yet if employees are acknowledged as a vital resource to contribute to a company’s competitive advantage, especially in the era of Industry 4.0, arguably they should be measured and recorded as an intangible asset. The dynamic movements of Industry 4.0 consistently show that lesser but high value intangible assets can perform better than companies with luxurious physical assets. For instance, large stores, like Giant, have closed several outlets in 2019 because of competition from smaller and online retailers. Mardiasmo suggested stakeholders start designing accounti...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.