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Securing the future, social security and the evolving labor market
The social protection system provided by the state to assist informal workers from various elements remains insufficient.
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Workmanship: Workers repair a ship on July 8, 2024 at a shipyard in North Jakarta. (Reuters/Ajeng Dinar Ulfiana)
T
he rapid development of the world with digitalization and automation in all aspects has led to a shift in human activities. Coupled with the unprecedented health and economic issues brought about by the pandemic, this situation has become a catalyst for the massive use of information technology.
This presents both challenges and opportunities, especially in Indonesia's labor sector.
According to “The Future of Jobs Report 2023” released by the World Economic Forum, the labor market is undergoing significant structural changes, with an expected churn of 23 percent over the next five years. This includes the creation of new roles and the elimination of existing ones, driven largely by technology, digitalization and sustainability trends.
Jobs in fields such as artificial intelligence and machine learning, sustainability, business intelligence and information security are projected to grow rapidly. However, the slower-than-anticipated adoption of automation means that only 34 percent of tasks are currently automated, with expectations to reach 42 percent by 2027.
This shift brings about both job creation and job displacement, particularly affecting clerical and secretarial roles.
Indonesia is required to adapt to these trends by integrating technology adoption in the labor sector, leading to a transformation of work patterns. This transformation in the labor sector will also inevitably affect the Social Security Employment (BPJS Ketenagakerjaan) process.
Indonesia's social security employment system needs to be updated in terms of both its system and implementation to face the new era. The system and policies need updating due to several existing issues.
