Indonesia is a country in Southeast Asia, which consists of 16.056 islands. The Indonesian government is a Republic, with President, the People’s Representative Council (DPR), and the Regional Representatives Council (DPRD) are directly elected. Furthermore, as a country consisting of many cultures, languages and religions, Indonesia has many problems to be faced, among others: poverty alleviation; corruption (in the central government and regional government); religious issues which make it easy for people to play one against the other, mostly for political purposes; terrorism; and human right violations.
Leadership has numerous definitions. According to Bass and Riggio (2006), leadership is defined as a form of persuasion, a power relation, the arts of inducing compliance, and the exercise of influence. Meanwhile Northouse (2009) gives a different definition of leadership. To him, leadership is the moral use of power and that power occurs in relationships and should be used by leaders and followers to promote their collective goals which should be ethically good (Northouse, 2009). Indonesian leadership for some time suffered extraordinary shocks, the distrust of the leaders to make them not a role model anymore. The loss of integrity within the leader is very worrying for our state and nation; Indonesia’s national security can be destroyed by it.
In the leadership history in Indonesia, seven Presidents have led Indonesia, since 1945 up to today. They lead Indonesia with various leadership styles. As state leaders, they are required to have the capability to make the right and brave decisions to determine the direction and the future of the state they lead. In order to make decisions well, a state leader should have a qualified knowledge and should apprehend the issues that arise. The following is an explanation of the leadership’s role of the seven presidents of Indonesia, from 1945 up to today, related to their policies, achievements and weaknesses:
President Policy Focus Achievement Weakness
Soekarno Post-Independence, the situation in the country is much less conducive. The policy focus is on post-colonial improvement Stabilization of political situations and internal conflicts The control system of the economy is weak so inflation is not controlled
Soeharto Five-Year Development Plan (REPELITA) I-VI
Long Term Development (PJP) I Continuous and targeted economic development
Long Term Development Corruption, Collusion and Nepotism became a major problem during the New Order period
B.J. Habibie Strengthen economic recovery after the Monetary Crisis by restoring investment, trade, recovery performance of banking sector and business sector Anti-monopoly Law and Regional Autonomy Law Public purchasing power declined sharply and high business risk in the country so that the recovery of confidence in the economy is slow
Abdurrahman Wahid Strengthening on Small and Medium Enterprises sector (SMEs, Bank Indonesia Liquidation Assistance (BLBI)) Establish bilateral and multilateral relationships with several countries The process of economic recovery is relatively slow, the burden of government spending on debt interest payments and subsidies
Megawati Soekarno Putri Foreign Debt Management, SME program, Privatization of SOEs Inflation rate started to decline, interest rates declined sharply, economic growth increased and rupiah exchange rate strengthened Bali Bombing, Increase in Fuel Prices
Susilo Bambang Yudhoyono Direct Cash Assistance (BLT) and BBM Subsidy, Policy focuses on the real sector and finance that is directed to maintain stability in the macro economy Indonesia’s economy is stable and inflation is more controlled, domestic demand growth and import decline The unemployment rate is rising and the lag revenue distribution
Joko Widodo Make a strong national development through change the economy fundamentals and the substitution of Indonesia’s centrist model
Encourage the national development acceleration, develop the physical infrastructure to became more better, accelerate human resource development, and improve the competitiveness to catch up with other countries
Equitable economic equity Massive infrastructure development in various regions
Managed to keep the stability of food prices which is also reflected from the level of inflation is still maintained below 4%
More focused on the distribution of social assistance (BANSOS) Economy crisis
The difficulty of getting a job
The high price of basic food and basic electricity tariff (TDL)
The large number of corruption
Law enforcement considered to be selective
II. Leadership ; Leader’s Role in the Year 2030
According to research conducted by Hay Group and Z_Punkt in Leadership 2030 book. There are six global megatrends that leader need to understand to prepare for the future, as follows:
• Globalization 2.0
Economic power is shifting to Asia. Trade is booming between developing markets, leaving ‘old’ economies increasingly out of the loop. The East is no longer merely the sweatshop of the West.
• Environmental Crisis
The signs of climate change are becoming frighteningly real. At the same, critical natural resources – oil, water, and minerals – are running out.
• Individualism and Value Pluralism
Under globalization 2.0, millions of people will discover a wider range of life and career options, and they will have the freedom to make decisions based on values, not economies.
• The Digital Era
Technology is shifting the balance of power away from organizations and their leaders. In the digital era and the climate of transparency, leaders must display high standards of integrity and sincerity.
• Demographic Change
The world’s population is expanding and getting older.
• Technological Convergence
Advanced technologies are joining forces to transform many aspects of everyday life.
To facing 2030, Indonesia has a vision to become a developed country with high income in that year. Based on McKinsey report, Indonesia’s fast-growing economy could become the world’s 7th largest by 2030. Because it has an attractive value proposition. Over the past 20 years, labor productivity improvements, largely from specific sectors rather than a general shift out of agriculture, have accounted for more than 60 percent of the country’s economic growth. Productivity and employment have risen in tandem in 35 of the past 51 years. And unlike typical Asian “tiger” economies, Indonesia’s has grown as a result of consumption, not exports and manufacturing. Nevertheless, to meet the government’s goal of 7 percent a year growth by 2030, the economy must grow faster. Given current trends, the McKinsey Global Institute estimates that Indonesia has to boost productivity growth to 4.6 percent a year – 60 percent higher than it has been during the past decade.
The vision will not be realized if the issues that exist nowadays are not resolved, such as improving the quality of education to enhance the quality of human resources, law enforcement, and infrastructure development. Therefore, it requires a leader who has a vision, competent and honest and has a strong commitment to the nation not a personal interest. Through visionary leadership, Indonesia’s vision for 2030 will be maximally achieved. These leaders also have to be able to solve various problems. Therefore, the future leaders will need to be adept conceptual and strategic thinkers, have a deep integrity and open-minded. Besides that, leaders will have to be multilingual, flexible, internationally mobile and adaptable. However, most crucial of all, they have to be highly collaborative and have strong conceptual and strategic thinking skills. Here are the aspects that can be considered by the leaders to realize the vision of Indonesia 2030 and which will affect to leadership and leader’s role in the year 2030:
2.1 Industry Revolution 4.0
The history of the industrial revolution begins with industry 1.0 which is characterized by the mechanization of production to support the effectiveness and efficiency of human activities. Followed by industry 2.0 which is characterized by mass production and quality standardization. Then industry 3.0 which is characterized by automated customization and manufacturing flexibility and robotics-based automation. And the last but not least, industry 4.0 which is characterized by physical cyber and manufacturing collaboration (Hermann et al, 2015; Irianto, 2017). The term of industry 4.0 comes from a project initiated by the German government to promote manufacturing computerization.
On the other hand, Hermann et al (2016) explains there are four principles of industry 4.0, such as: First, the interconnection is the ability of machines, devices, sensors, and people to connect and communicate with each other through the Internet of Things (IoT) or the Internet of People (IoP). This principle requires collaboration, security, and standards. Second, information transparency is the ability of information systems to create virtual physical copy by enriching digital models with sensor data including data analysis and information provision. Third, technical assistance which includes: (a) the ability of the support system to support humans by consolidating and evaluating information to make decisions and solve problems in a short time; (b) the ability of the system to support humans by performing unpleasant, exhausting, or insecure tasks; (c) including visual and physical assistance. Fourth, decentralized decisions are the ability of virtual physical systems to make their own decisions and perform tasks as effectively as possible.
The Indonesian government through the Ministry of Industry has designed Making Indonesia 4.0 as an integrated roadmap to implement a number of strategies to enter the industry 4.0 era. Currently, the national industrial sector needs many improvements, especially in the aspect of technology that becomes the key determinant of competitiveness in the era of industry 4.0. Furthermore, there are five main technologies that support the development of Industry 4.0 system, namely Internet of Things (IoT), Artificial Intelligence, Human-Machine Interface, Robotics and Sensor Technology, and 3D Printing Technology.
According to the Minister of Industry, Airlangga Hartanto, by applying industry 4.0 will bring Indonesia into the top 10 economies by 2030, returning 10 percent of the net export rate of industry, doubling the labour productivity of labour costs, and 2 percent of the GDP for technological innovation and R & D activities or seven times from today. Additionally, according to the Secretary General of the Ministry of Industry, Haris Munandar, one of Indonesia’s strategy to enter Industry 4.0 is to prepare five manufacturing sectors that will be pilot projects to strengthen the country’s industrial structure fundamentals, namely Food and Beverage Industry, Automotive Industry, Electronic Industry, Chemical Industry, and Textile Industry.
With the technological advances, which can be easily accessible in industry 4.0, then it requires the business environment to support the development of innovative businesses that will create new markets and can increase people’s incomes. Therefore, it is necessary for the role of a leader who are able to lead the development of industry 4.0 to provide more benefits for people who are living in poverty, for instance: by preparing the most effective education (in soft skills and in hard skills) for the young generations, so the young generations as the successor of the nation have competence and high competitiveness; and facilitate the job training and professional certification to support formal education, in order to meet the needs of skilled workers.
Although it seen to offer many advantages, the industry 4.0 also gives disadvantages, which can be seen in the table below:
It is easy to do backend integration with ERP/MES, etc The IoT security is a major concern. The companies are working to address the security related loop holes
It is possible to host micro services Skills and education of workers working on industry 4.0 based processes need to improved
It enables execution of transactions with soft real time There are redundant workers in corporate IT Department and hence adoption of industry 4.0 is a major threat for these IT staff
It enables simple distribution of functionalities to multiple nodes There will be general reluctance to change to industry 4.0 by company stakeholders
It is easy to install, activate and change in industry 4.0 architecture Need to eliminate any IT snags as this will cause costly production outages
Clear and monitored communication paths in industry 4.0 makes resource management very simple Reliability and stability are requires for M2M (Machine to Machine) communication. This demands very short and stable latency timings in the system
It is easy to add new protocols and processes It requires to maintain integrity of production processes
It is possible to communicate between components on the shop floor It requires to educate staff to adopt this 4th industrial revolution. This requires considerable time as well as efforts across the industries
Digitalization is the integration of digital technologies into everyday activity by the digitization of everything that can be digitized. It also means the process of making digital everything that can be digitized and the process of converting information into digital format. The digital era brings tremendous change in many areas in almost all parts of the world. In Indonesia, in accordance with Digital Indonesia’s book by Edwin Jurriens and Ross Tapsell, digital technology has at least caused major changes in connectivity, diversity, identity, knowledge, and business / commerce.
Digitalization will affect the economic growth of a country and will change the future of human lives, especially in the presence of Automation, Big Data, IoT (Internet of Things), and Artificial Intelligence (AI). Technology can guarantee higher productivity, increased efficiency, security, and comfortability. Along with providing benefits, technological developments also offer some disadvantages, such as automation systems in technologies can cause negative effects such as job losses, wasted skills, and wage savings. In addition, the World Economic Forum estimates that 5 million jobs will be lost by 2020 due to technological developments. Therefore, to prevent this, human resources in Indonesia need to be prepared to have relevant education and skills in today’s digital era.
On the other hand, through digitalization can accelerate the turnaround of information that can then change the structure of the global and national economy. Increased efficiency by utilizing digital technology can also provide a significant effect on improving Indonesia’s economics competitiveness, especially to achieve Indonesia’s vision in 2030. The role of a leader, in this case the government, is urgently needed, for example by developing infrastructure that supports technological advancement.
2.3 Demographic Issues
Demographics is the study of population based on factors such as age, race, sex, and other factors. Governments, corporations and non-government organizations use demographics to find out more about a population’s characteristics for many purposes, including policy development and economic market research. Since 2012, the government and numerous economists predict that Indonesia will face the Demographic Bonus in 2030-2035. The Demographic Bonus is a population phenomenon in which the population of a country will dominated by productive workforce (15-60 years) which will be about 64 percent compared to non-productive population (below 15 or above 60 years).
Demographic issues, such as the demographic bonus, should be utilized and well prepared to become a useful opportunity for Indonesia. Without proper preparation, the demographic bonus will only be a burden on the government and may increase the unemployment rate. Therefore, to face the demographic bonus, the quality of human resources should take precedence, by improving the quality of education and educational facilities, as well as updating the education system to create competent and highly competitive human resources.
According to the Minister of Manpower, M. Hanif Dhakiri, to face the demographic bonus, the government not only continues to increase the number of jobs but also continues to improve the quality of the job. Therefore, President Joko Widodo’s government is targeting 2 million new jobs per year or 10 million jobs in the 2019 government period and the goal has been exceeded in each year. To improve the quality of the job, the government seeks to improve the competence or skill of workers, among others, by improving job training in the Training Center (BLK). The Training Centers (BLK) are conducted in government and private companies, as well as through internship programs. Along with creating jobs, the government also encourages the emergence of new entrepreneurs by providing entrepreneurship training programs and provision of facilities.
2.4 The Millennials Special Characters
Millennials is a generation which born in the period of the development of technology, especially in information technology development. This generation is a creative generation that is familiar with social media and digital technology and it is an important asset in the development of the Indonesian. Millennials also known to have 3-C advantages as follows:
This generation loves new challenges or new ideas, even the way they think sometimes out of the box. They can work creatively in solving the surrounding problems. It will provide an advantage for the state to maximize the potential of this generation.
Interpersonal connectivity becomes an advantage possessed by this generation, especially in networking in cyberspace. Each individual can reach other individuals without being obstructed by the geographical areas of each other. However, ethics should still be considered in connecting in the virtual world.
Indonesia has never separated from the culture that has been attached with the identity of the nation that is gotong royong. In this generation, the spirit is manifested in the spirit of collaboration. The spirit is not only in one group but cross-sectoral. The cross-sectoral collaboration no longer involves a single entity but involves all development sectors from the government sector, the private sector, academia, to the mass media.
In the year 2030, the current millennials will enter the productive age, and in that year, demographic bonus in Indonesia at a peak point, where the productive age population is significantly more than nonproductive age. Therefore, the government has a significant role to provide policies aimed at improving the quality of human resources, especially the millennial generation, so they are ready to become leaders in the future, such as improving the quality of education, youth services, increasing employment, strengthening workforce skills, support for an entrepreneurship and strengthening the policies of others that directly impact on skills and quality improvement.
Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.
Globalization, digitalization, and the economy are the three issues that are related to each other. In the era of globalization, the development of digitalization will affect the economy of country. Therefore, currently is known as the era of digital economy. Additionally, technological advancements make the social and economic life more productive, effective, efficient, and making domestic production in a position to compete in the international market. Nowadays, the world’s economic power is shifting from West to East (Asia), especially China. China is one of the countries in Asia that experienced an excellent rate of economic growth, and most has great potential to compete in the era of globalization. Looking at its development, China has become a world leader in the automotive and electronic industries.
In addition to China, Indonesia also has the potential to compete in the era of globalization because it has a large population with a number of skills owned and continuously improved, the number of internet users are constantly increasing, and abundant of natural resources. All these things are very useful to seize the competition in the era of globalization and the digital economy. However, Indonesia still has several obstacles, such as the lack of adequate digital infrastructure, security instability and the lack of clarity of labor regulations that still lead to more labor demos. Therefore, the role of a decisive and innovative leader is needed to reduce the obstacles to Indonesia’s development in this era of globalization.
2.6 Environmental Sustainability
Environmental sustainability is defined as responsible interaction with the environment to avoid depletion or degradation of natural resources and allow for long-term environmental quality. The practice of environmental sustainability helps to ensure that the needs of today’s population are meet without jeopardizing the ability of future generations to meet their needs.
Globalization has a positive effect, for instance we are able to get information more quickly. However, it also has an impact on environmental sustainability, such as the ever-increasing development in all areas, especially industrial development, increasing the amount of waste generated including the harmful and toxic that can jeopardize the environment and human health. Furthermore, global warming is also a problem faced by the world community today. Global warming is caused by human activities that produce greenhouse gas emissions from industry, motor vehicles, and excessive electricity usage.
On the other hand, demographic issues also have an impact on environmental sustainability. With the explosion of the population as a result of rapid population growth has adverse impacts on life and environmental pollution. Increasing the density of the human population has resulted in an increase in the necessities of life, which inevitably lead to the exploitation of natural resources. The problems caused by these demographic issues as follows: reduced the availability of clean water; decreased the availability of food due to an imbalance of population increase with food production that may lead to malnutrition; reduced the availability of clean air due to the increasing number of vehicles used; and reduced the availability of land due to the abundance of trees or forests burned for shelter and for industrial development.
The role of leader, especially the state leader, is necessary to maintain the environment sustainability because no human being can be separated from the natural resources to meet the needs of their life. Therefore, every leader should have policies to protect the environment, for example updating eco-friendly technologies, reducing activities that have adverse environmental impacts, and supporting research and development in the environmental field.
In the conclusion, to be a good leader is not an easy thing, especially in the face of the era of globalization and digitization. A good leader must know exactly the issues that exist in order to provide the best solution. Additionally, a leader must also know the aspects related to each other, such as technological developments and population growth will affect the economy and environmental sustainability. Therefore, to face the digital era, the year 2030 and to achieve the vision of Indonesia in 2030, Indonesia needs a good leader, as follows:
• A Visionary Leader
A visionary leader can see beyond the ambiguity and challenges of today to an empowering picture of tomorrow. He / She is not authoritarian or dictatorial. Here are ten traits of visionary leader: inspirational, emotionally intelligent, open minded, imaginative, resolute, persistent, collaborative, bold (there is no place for timidity in visionary leadership), magnetic (visionary leaders are inclusive, inviting others to make the vision their own), and optimistic.
• An Innovative Leader
An innovative leader is creative visionaries who have big ideas and, most importantly, can motivate people around him/her to turn those ideas into reality.
• A Leader who has Character
Discipline, transparent, firm, wise, honest, etc.
• A Servant Leader
Leaders who serve will ensure that priority needs the highest of others have been fulfilled. Servant leader is a person with high sense of humanity. Not the fate of the leader to be served, but it is a privilege to serve. Without the character of servant leaders, the leadership may appear to be-and in fact become self-motivated to serve themselves and their own selfish interests. Leaders who serve direct the goals of the organization will be achieved on the basis of long-term development, which facilitate the growth, development, and welfare of the members of the organization.