Bright with contrast: media sentiments on the future of work in Indonesia

5 min read

The future of work, or how technology such as automation and artificial intelligence have impacted a transformative change of work, has been saliently discussed among policy scholars worldwide. Case studies on how it will affect the labour market have been viewed both optimistically and pessimistically. However, the discussion is primarily centred on the OECD world while putting aside cases in middle-income countries and the Global South. Indonesia (as a middle-income country) is an interesting case study, since it combines a largely traditional and informal economy with a rapidly expanding tech sector and digital economy, as well as the adoption of advanced digital financial services.

The country’s booming tech ecosystem has been characterised by the emergence of successful startups, such as Tokopedia’s marketplace platform and Gojek’s app-based ride-hailing company, which have been in operation since 2009 and 2010, respectively, and are currently leading the Indonesian digital market.

According to Google, Temasek and Bain & Company , the Indonesian digital economy, especially in online sales, saw a steady increase in gross merchandise value (which measures the total value of goods sold on online platforms) from 2019 to 2021. It also predicted that the value could grow to US$360M from 2022 to 2030. This is due to the rise in online sales supported by affluent urban consumers and young digital natives, as well as the digital ecosystem the country has enabled, for example with the adoption of digital financial services (fintech).

The country’s promising potential for a digital economy has caught the government’s attention and translated into several tech-friendly public policies. One of them is the “E-Commerce Roadmap”, which has been initiated to integrate more Indonesian microenterprises and small and medium-sized enterprises into digital platforms. Additionally, there is the “Making Indonesia 4.0” initiative, which seeks to modernise and integrate technology such as AI and the Internet of Things into manufacturing industries nationwide.

Despite the optimistic discussions surrounding Indonesia’s digital and technology sectors, particularly in the digital economy, I wonder if similar progress is evident in areas such as education, labour and broader socio-political domains. In OECD countries, for instance, scholars are debating whether technology, such as automation and AI, will create more jobs than it eliminates. This issue is highly relevant for Indonesia, a labour-intensive country expected to benefit from a demographic dividend by 2035. Therefore, I question whether the future workforce will align with the number of available jobs, especially as some roles may be automated by new technologies.

To examine the social and political consequences of technological changes on Indonesia’s work sector, I conducted research (together with Achim Kemmerling from the University of Erfurt) that looked at the role of discussions in 518 online news articles covering “technological change” and “work” from 2014-2023 in four media outlets in Indonesia (Antaranews.com, Cnnindonesia.com, Kompas.com and Liputan6.com). The aim was to see what sentiment these debates promote and what kind of arguments for or against certain aspects of the future of work are visible in these communications.

Sentiments towards technological change in the work sector are optimistic.

Examining the sentiments of four media outlets on technological transformation in the work sector, we observe that more than half of the articles convey an overall positive tone. Coverage of how online ride-hailing and e-commerce served as a buffer income source for lower-income families during COVID-19, or how digital platforms can be a motor of […] have dominated the positive news coverage. Other articles discuss how technology introduces new ways of working, such as increased mobility by working from home or more flexibility in working time. At the same time, another 29% are neutral (including those with ambivalent sentiments). Just under one fifth of the articles were negative in tone.

The articles’ optimistic outlook on technological transformation often comes in the guise of discussions on how technology will contribute to the country’s overall economy and act as a catalyst to leverage (in)formal small and medium-sized enterprises that dominate people’s economic activity. Aside from that, they also focus on how the digitalisation of services will optimise government bureaucracy and accelerate tasks and decision-making.

However, the government-affiliated Antaranews.com is much more positive than the other three. This attitude truly highlights the clear pro-tech tendency of the (last) administration. The other three outlets, which happen to be independent and privately owned, present a considerably more negative tone.

Job creation vs. reduction

While the changes in the labour market, including unemployment, are part of the debate on the future of work in Europe, in the case of Indonesia these fears are much less pronounced. Most articles (over two thirds) are neutral or positive about the employment outlook. The neutral/ambivalent articles focus on how technological transformation will lead to job creation and loss. Many of these articles reference reports from organisations such as McKinsey and the World Economic Forum (WEF).

Again, the narrative is much more positive in the government-affiliated Antaranews.com, with 62% of the 29 articles discussing the employment sector’s view that digitalisation will create more jobs than it destroys. The discussion mainly centres on various government discourses, including from Coordinating Minister for Economic Affairs Airlangga Hartanto, who highlighted the workforce’s need for around 9 million digital talents over the next 15 years. This statement coincided with the launch of a White Paper on the National Strategy for Developing Indonesia’s Digital Economy 2030.

In contrast, other sources highlight employment problems, such as concerns about future job prospects, the rights of digital workers and their social protection. Antaranews.com, the government source, does mention these concerns, but to a far lesser extent. The one exception here seems to be the consequences of online trade on small and medium-sized retailers, a salient issue on which the government takes a much more proactive stance compared with other platforms such as ride-hailing or service delivery.

Overall, we see fairly optimistic attitudes within the Indonesian media regarding technological change and the work sector. This may be due to the demographic boom, which is seeing many young and potentially tech-affine people embracing the digital economy. Yet important differences between government-related and other news sources suggest that not everyone agrees with this positive outlook.

The differing attitudes in Indonesian debates compared with those in Europe may be linked to the distinct economic foundations of each region. Unlike Europe, Indonesia – which was traditionally reliant on industries such as tobacco, mining and fossil fuels – has largely bypassed the industrial/manufacturing phase, shifting directly to non-tradable services. This is in contrast to Europe, which relied on its strong manufacturing industries, traditionally employing maybe half of its population since the industrial revolution. This could explain why Europe-like debates, such as concerns over job losses from automation and robotics, are virtually non-existent in Indonesia. Consequently, discussions on the positive impact of digitalisation for sectors such as ride-hailing are more prominent than in other areas.

Indonesia is not unique in experiencing a shift from agriculture and mining to services over the past 30 years; many other developing countries have undergone similar transitions. For instance, public opinion research in Ghana has identified a generally positive acceptance of technology integration within the workforce.

The media analysis highlights different political visions for engaging with the future of work. On the one hand, we see the government’s pro-tech narratives, which view technology as a solution, according to various discourses in the media analysed, as well as policies to boost the digital economic sector in Indonesia. This implies a light touch on regulating the digital economy, except for e-commerce. On the other hand, more critical views are being heard, highlighting the dangers of the future of work when it comes to employment rights and social protection. However, compared with Europe, these critical views are relatively moderate. Other crucial concerns for Europe, such as rising inequality due to the digital (superstar) economy, are almost absent from Indonesian online media. This suggests that the global outlook on digital disruption might differ considerably from the experience of richer countries.

This analysis is only one facet of the complex story surrounding the future of work in Indonesia. Technology will undoubtedly reshape Indonesia’s socio-economic landscape, particularly given its vast labour-intensive workforce, high informality and significant urban-rural divides. As we move forward, a deeper look into other sectors and perspectives is essential to grasp the full impact of digitalisation. We aim to uncover the nuanced dimensions of digital divides, tech capitalism, data protection and digital literacy – understanding not only the challenges, but also the opportunities technology brings to Indonesia’s evolving workforce. In doing so, we hope to contribute meaningfully to the development of informed public policies for a more inclusive and resilient future.