UPNVJ Public Relations – The Minister of Manpower of the Republic of Indonesia, Prof. Yassierli, Ph.D., revealed the challenges of national productivity and the readiness of Indonesian human resources to face the transformation towards Industry 5.0. In the last two decades, Indonesia's economic growth has been largely supported by the addition of capital (61 percent) and labor (37 percent), while the contribution of pure productivity has only reached 1.6 percent.

This was conveyed by Yassierli when presenting material entitled "Human Resources Readiness in Facing Industry 5.0 to Build a National Productivity Ecosystem" at the 2026 Industrial Fair Seminar (INFAIR) at the Bhinneka Tunggal Ika Auditorium, "Veteran" National Development University Jakarta (UPNVJ), Wednesday (23/9/2026).

According to Yassierli, the low contribution of productivity indicates that Indonesia's economic growth needs to be increasingly focused on improving efficiency, innovation, human resource quality, and the use of technology. In comparison, productivity contributes 26 percent to China's economic growth, 23 percent to South Korea's, and 22 percent to Vietnam's, based on data since 2010.

Similar challenges are evident in labor productivity. In 2023, Indonesia's labor productivity was recorded at approximately USD 30.1,000 per worker, still below the ASEAN average of USD 32.3,000 per worker.

Nevertheless, Indonesia's productivity growth shows improvement. According to the APO Productivity Databook presented in his presentation, Indonesia's productivity growth is above that of Malaysia and Thailand, although it still lags behind the Philippines and Vietnam.

Yassierli emphasized that increasing productivity requires interventions that go beyond labor. The government is promoting a 4P approach: People, Process, Product, and Policy .

This approach positions human competency development as one component of the productivity ecosystem. At the same time, production processes and work systems need to be improved, product innovation must generate added value, and policies must foster a supportive environment for increased industrial competitiveness.

AI and Changes in Work Systems

Technological change is one factor that will impact the structure of the workforce. According to the World Economic Forum's Future of Jobs Report 2025 , presented in the Minister of Manpower's presentation, approximately 22 percent of jobs are expected to be impacted by changes in the workforce structure. As many as 170 million new jobs are potentially created, while 92 million jobs are projected to be lost.

These changes are influenced by developments in artificial intelligence (AI), robotics, digital platforms, and automation. The development of the digital and creative economy, the green economy, global value chains , and the care economy are also driving shifts in work patterns toward remote work, platform work, project-based work , and human-machine collaboration.

Yassierli pointed out that AI has significant potential to increase productivity, but implementing the technology alone isn't enough. Data from PwC's 2026 AI Jobs Barometer , presented in his presentation, showed that companies in sectors with high AI exposure will record 33.5 percent productivity growth by 2025, compared to 24 percent for companies with low AI exposure.

Furthermore, using AI solely as an "assistant" without changing the division of roles and workflows only results in a productivity increase of around 5 percent. When AI is combined with workflow redesign, a clear division of human and AI roles, and worker reskilling , productivity gains can reach around 30 percent.

These data show that technological transformation needs to go hand in hand with improving human competency and improving work systems.

Industry 5.0 Puts Humans at the Center

In facing these changes, Yassierli emphasized the Industry 5.0 approach which complements Industry 4.0 through three main orientations, namely human-centric, sustainable, and resilient .

A human-centric approach places human capabilities, potential, and well-being at the center of work systems. Sustainable principles integrate resource and environmental sustainability into industrial activities, while resilience emphasizes an industry's ability to anticipate, respond to, and recover from various forms of disruption.

Therefore, increased productivity is not solely determined by the sophistication of machines and AI. The concept of human-centric productivity emphasizes three main components: capable people, technology that enhances human capabilities, and work systems designed to suit human characteristics.

The future workforce, according to the presentation, requires increasingly broad skills. In addition to technical skills, workers will need human skills , ethics, compassion, a growth mindset , and an innovative mindset . Competencies in AI, big data , networking and cybersecurity, technological literacy, and robotics are also increasingly important.

Universities Become a Bridge to Industry

Yassierli positions universities as a key player in preparing human resources for this transformation. Universities have at least three strategic roles: ensuring graduates possess measurable competencies, systematically integrating human skills , and serving as a strong bridge between campuses and industry.

He believes that graduate competency cannot be adequately represented by a diploma. Students' abilities need to be demonstrated through portfolios, micro-credentials , and mastery of emerging skills .

The relationship between universities and the industrial world also needs to be strengthened through the development of joint curricula or co-design curriculum , the implementation of project-based learning , and the development of micro-credentials that are recognized by the job market.

On the government side, the Ministry of Manpower is preparing various programs to improve workforce competency. By 2026, National Vocational Training is targeted to reach 340,000 participants, with training tailored to industry needs and oriented toward job placement.

The Ministry of Manpower is also targeting 150,000 National Internship participants to strengthen the school-to-work transition. This program is complemented by the development of Centers of Apprenticeship Excellence , the transformation of Vocational Training Centers, the alignment of curriculum and certification with industry needs, and the improvement of the Labor Market Information System (LMIS).

In addition, the Ministry of Manpower is developing Labor Productivity Clinics at Vocational Training Centers as centers for increasing productivity. The program includes teaching factories , productivity training, company mentoring, communities of practice , and learning about AI for Productivity Improvement and Smart Operations .

For UPNVJ, the implementation of INFAIR 2026 is a space that brings together the perspectives of the government, universities, students, and industry in responding to national productivity challenges.

UPNVJ Rector Prof. Dr. Anter Venus, MA, Comm. continues to encourage the strengthening of the connection between education, research, innovation, and community needs. Through forums such as INFAIR 2026, UPNVJ encourages students' competencies to go beyond mastering knowledge to developing into the ability to solve real-world problems, adapt to technological changes, and provide added value to Indonesia's productivity and competitiveness.