Deriving the Community Readiness Index in Facing the Industrial Revolution 4.0 in Indonesia

Abstract

Abstract The demographic dividend that is being experienced by Indonesia is an opportunity to increase the economic growth rate. At the same time, Indonesia has enrolled in the revolution era of industry 4.0, which can provide benefits and boost the Indonesian economy. However, this can negatively impact if the community is not ready, such as increased unemployment due to disruption and job automation. This study examines how ready the Indonesian people are to face the industry 4.0 related to education and the use of information and communication technology (ICT) by forming an index utilizing the factor analysis and then grouping districts based on the index formed. The data used comes from the National Socio-Economic Survey (SUSENAS) 2018 by the Statistics Indonesia (BPS). The results show that there are differences in community readiness based on the groupings formed. This research also shows that in general, Papua and East Nusa Tenggara are not ready to face this era. Therefore, policies are necessitated following each region’s conditions to improve education and ICT, especially Papua and East Nusa Tenggara, which require more attention.