Government Agencies’ Readiness Evaluation towards Industry 4.0 and Society 5.0 in Indonesia

Abstract

The introduction of the Industry 4.0 and Society 5.0 concepts has been undoubtedly challenging, and the readiness towards them could be fundamentally enhanced by strategic management and entrepreneurial governance. Bureaucracy in the majority of developing countries, including Indonesia, is an impediment due to the delays in bureaucratic reform and weak patterns of communication and coordination between their institutions. This study aims to analyze the readiness towards the era of Industry 4.0, and Society 5.0 in Indonesia from the perspectives of strategic management of the bureaucracy and entrepreneurial government. We undertake a case study on the organization of the Deputy for Human Resources of the Indonesian Ministry of Empowerment of the State Apparatus and Bureaucratic Reform and use a mixed method that simultaneously combines quantitative and qualitative methods. The resulted data from observations, in-depth interviews, and focus group discussions were then analyzed using path analysis, descriptive methods, and qualitative approaches. Our results finding shows that there is a strategic value in data-based policies, and the ownership of data from various perspectives is strategically used as a direction for policymakers. One of the impacts of the Industry 4.0 and Society 5.0 concepts is that the world has become increasingly connected. Hence, there are no boundaries between systems. Bureaucratic strategic management and entrepreneurial government have a significant effect on the readiness towards the Industry 4.0, and Society 5.0 concepts, in Indonesia, either partially or simultaneously.