Disruptive Technology is an alternative to boost productivity

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 The Habibie Center (THC) of Jakarta, in collaboration with the Ministry of Finance of the Republic of Indonesia and the World Islamic Economic Forum (WIEF) Foundation,  held a public dialogue on Wednesday entitled “Seizing the Benefits of Disruptive Technology for Manufacturers in Increasing Labor Productivity” This public dialog was part of the 12th WIEF series of events that will culminate at the Forum on 2 – 4 August 2016 in Jakarta.

Speaking at the event, Senior Economic Researcher of Indonesian Institute of Sciences Dr. Zamroni Salim says, “Disruptive technology does not always oppose conventional operations with massive labor forces. Manufacturing operations such as big data and the Internet of Things that help analyze details of operations, real time data from suppliers’ inventory to downstream customer demand.”

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Disruptive technologies can in fact serve as an alternative for Indonesia and other ASEAN countries to widen profit margins and lower costs in manufacturing, and potentially create US$25 to US$45 billion in annual ASEAN economic impacts by 2030.

Research and Development

The development of disruptive innovation and technology are still concentrated in countries with high commitment and pools of experts in research and development, such as China, Japan, India, and South Korea. Nevertheless, ASEAN countries have the opportunity to attract more cost-conscious global manufacturers and embed themselves deeper into the global supply-chain. One of the reasons is due to the increase of China GDP per capita and its shift from an export-driven economy to a consumption-driven model that have caused wages to rise in the country.

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In Indonesia, where the majority of its workforce is employed by SMEs, digital disruption will particularly offer many opportunities. Identification of the right technologies and relevant experiences are therefore key in making SMEs in Indonesia global ready. Such opportunities are available through global B2B networking events such as the upcoming 12th WIEF that allow for B2B synergy to materialize. The 12th WIEF is themed “Decentralizing Growth, Empowering Future Business”. – PRNewswire.

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