Experts at a public dialogue titled “Seizing the Benefits of Disruptive Technology for Manufacturers in Increasing Labor Productivity” emphasized that disruptive technology can work alongside traditional, labor-intensive methods. The event was organized by The Habibie Center, in partnership with the Indonesian Ministry of Finance and the World Islamic Economic Forum Foundation, as a precursor to the 12th World Islamic Economic Forum (WIEF).
Dr. Zamroni Salim, a Senior Economic Researcher at the Indonesian Institute of Sciences (LIPI), explained that disruptive technologies don’t always clash with conventional labor models. He cited examples like big data and the Internet of Things (IoT), which analyze operational details, real-time supplier data, and customer demand, ultimately complementing existing processes.
The dialogue concluded that these technologies could offer Indonesia and other ASEAN countries a way to boost profits, reduce manufacturing costs, and potentially generate US$25 to US$45 billion annually in economic impact by 2030. This aligns with Indonesia’s industrial development master plan (RIPIN) for 2015 to 2035, which aims to increase the contribution of non-oil and gas industries.
With China shifting from an export-focused to a consumption-driven economy, wages in the country are rising. This presents ASEAN nations, including Indonesia, with an opportunity to attract cost-conscious manufacturers and become more integrated into the global supply chain.
Wijayanto Samirin, Special Staff of the Vice President of Indonesia for Economic and Finance, stressed that Indonesian and ASEAN manufacturers must embrace these technologies through international partnerships. He highlighted the need for collaboration between large and small companies to enhance global competitiveness.
Digital disruption holds significant potential for Indonesian small and medium enterprises (SMEs), which comprise the majority of the workforce, by opening up previously unattainable opportunities. Technology can empower Indonesian SMEs to compete globally. Accessing the right technologies and relevant knowledge, through platforms like the 12th WIEF in Jakarta from August 2-4, 2016, is crucial for preparing them for the global stage.
Themed “Decentralising Growth, Empowering Future Business,” the 12th WIEF aims to foster inclusive growth within the business ecosystem and connect Muslim and non-Muslim communities through the shared language of business. Past forums have been held in Malaysia, Kazakhstan, Indonesia, Kuwait, Pakistan, the UK, and the UAE.
Day 1 (August 2) features a ministerial panel discussing the “AEC Blueprint 2025” (12:30 pm-4:00 pm), exploring economic integration among ASEAN members and their goals for 2025. Another noteworthy session is the “Global Economic Outlook” (4:15 pm-5:45 pm), which will examine consumer-driven frameworks powered by peer-to-peer networks and DIY platforms.
Highlights for August 3 include the “CEO Panel” (10:30 am to 12:00 pm) on “Disruptive Technology and the Rise of New Industries,” addressing the rapid evolution of robotics, artificial intelligence, and internet technologies, and their impact on business practices. The panel will also explore strategies for staying ahead of the curve. Concurrently, the “Achieving Synergies between Corporations and Startups” Masterclass will focus on the growing collaboration between these two groups. Another Masterclass, “Innovation in Education: Preparing for the Next 10 Years” (4:15 pm to 5:45 pm), will examine ways to adapt education systems for future business demands.
MOCAfest, a two-day creative arts festival celebrating the role of creative and cultural sectors in empowering youth economically, kicks off on August 2. The event will bring artists and audiences together for performances, masterclasses, discussions, and networking opportunities.
Day 3 features a panel discussion (9:00 am to 10:30 am) on restructuring SMEs and enhancing their credit access, covering available credit options and frameworks for sustainable financing.