Changes in Indonesia’s Economic Structure in the Era of the Industrial Revolution 4.0: Transformation and Adaptation Strategies

Abstract

The Fourth Industrial Revolution represents a major transformation phase characterized by digitalization, automation, artificial intelligence, and the integration of cyber-physical systems. This transformation has significantly impacted the global economic structure, including Indonesia. This article aims to analyze the implications of the Fourth Industrial Revolution on changes in Indonesia’s economic structure through a literature study. The findings indicate that Industry 4.0 enhances efficiency and productivity through e-commerce, fintech, and the digitalization of the industrial sector, yet it also presents challenges such as digital infrastructure inequality, low technological literacy, resistance among traditional workers, and regulatory frameworks that remain less adaptive. The Indonesian government, through the Making Indonesia 4.0 program, has established strategies to strengthen digital infrastructure, improve workforce skills, and provide incentives for the technology industry. With an inclusive approach, collaboration among stakeholders, and the integration of technology-based education, Indonesia has significant potential to leverage the momentum of the Fourth Industrial Revolution as a driver of sustainable economic growth.