Technopreneurship Among the Youth as Supporting Factors for Economic Sustainability of ASEAN towards the Fourth Industrial Revolution

October 9, 2019/0 Comments/in ASEAN Notes/by akmal.muhammad.f

Written by Cavin Dennis Tito Siregar

Science and Technology have never stopped advancing since the very first time humans invented fire. The fact that we are experiencing The Fourth Industrial Revolution has opened a wide gate of opportunities to everyone. Those who can make use of such opportunities will prevail. ASEAN, being one of the most diverse regions, shall unite and utilize this opportunity.

“For the first time in the history of living standards ordinary people have experienced sustainable growth. This kind of economic behavior has never happened before. ”

(Robert E. Lucas, 2017)

The Fourth Industrial Revolution

Curiosity is in our DNA. This is what underlies the rapid development of Science and Technology that enables humans to classify epochs in each transition of their lives according to the standard of living which applies at that time. Beginning in the 18th century, the first Industrial Revolution was marked by the mechanization of production through steam power which gave rise to the proletarian. In the 19th century, the industrial revolution was marked by the automation of mass production.

At this time, countries worldwide competed to bring innovation in the automobile industry and build large scale electrical networks. The third industrial revolution in the 1950s was

marked by the development of digital systems and information technology. Industries become increasingly rapid with the development of computer-based automation. Industrial machineries work automatically through computer. Humans at this time have become the supervisor of these machines.

Artificial intelligence, robot technology, big data and Internet of Things connect human lives so easily with one another. Some even argue about humans being replaced with their own technology. The Industrial Revolution 4.0 could have a negative impact on the government that stutters and cannot utilize rapid technological developments (Schwab, 2017). While the Fourth Industrial Revolution comes with massive improvement in productivity, with it comes the replacement of human labor.

Automation has come a long way since the 19^th century. Wealthy markets, such as The Gulf States, have the resources to invest in new technologies, and those with better established manufacturing sectors, such as the countries in Southeast Asia, appear best placed to reap the benefits of the revolution. The global economy is entering the 4^th Industrial Revolution based on the application of advanced automation all the way from production to service delivery. The transformative impact of this revolution will require countries to think deeply about their policies and priorities on a national scale.

Many ASEAN governments are well aware of this need and have launched national responses, such as Thailand 4.0, Singapore’s Smart Nation initiative, Making Indonesia 4.0, The Philippines’ inclusive Innovation Industrial Strategy (I3S), etc. However, some of the greatest impacts of the 4^th Industrial Revolution will play not on a national scale but at a regional scale. The nature of cross-border relations and economic interaction will be revolutionized. It will not be enough to think only about a national response. In the years ahead, regional organizations like ASEAN will be called upon ever more heavily to help steer and shape these historic transformations.

And yet, given the accelerating speed of technological advancement, shaping regional policies is growing increasingly harder. It means that ASEAN and organizations like it will need to redesign the way they manage regional governance.

Trade, Entrepreneurship, and Economic Sustainability of ASEAN

Today, entrepreneurs are the lifeblood of economies all over the world. Even in a command economy like China, entrepreneurs are valued for their contributions to the economy and encouraged to innovate to compete with companies worldwide. The global economy, combined with modern infrastructure and communications, has introduced a new age of

competition to the world of entrepreneurship. There will no longer be competition within ASEAN’s own tribe, town, village, or city, instead competition will be held among entrepreneurs worldwide.

Many of these entrepreneurs can access cheaper means of production than before. They may have better access to raw resources of cheap labor, for example. This has made modern entrepreneurship more challenging and arguably more rewarding than ever before.

As a region, ASEAN has dramatically outpaced the rest of the world in growth of GDP per capita since the late 1970s. Income growth has remained strong since 2000, with the average annual real gains of more than 5 percent. In comparison, ASEAN has real GDP growth of 66% in the Asia-Pacific from 2006 to 2015. According to a study by McKinsey, in the year 2000, 14 percent of the region’s population is living below the international poverty line of $1.25 a day (calculated in purchasing-power-parity terms), but by 2013, that share had fallen to just 3 percent. Already several million households in the ASEAN countries have incomes that allow them to make significant discretionary purchases.

That number could reach 125 million households by 2025, making ASEAN an important consumer market. ASEAN has long heeded the connectivity imperative, and the benefits of regional cooperation and economic integration, through initiatives such as the ASEAN Economic Community (AEC), are paying dividends. ASEAN commands a combined GDP of about $2.4 trillion, and GDP per capita has increased by 63.2% from 2007 to 2015. If it were a single country, it would be among the top 10 economic powers in the world.

To further drive growth, ASEAN and its six strategic partners will come together in November for the anticipated signing of the Regional Comprehensive Economic Partnership. This will create the world’s largest free-trade area, representing nearly 30% of global GDP, and will demonstrate ASEAN’s commitment to removing barriers to trade and expanding market access both within the region and with its partners.

There is a substantial list of opportunities associated with AEC integration. For instance, economic integration provides opportunities to boost economic stability in the region. Another benefit is that integration would turn ASEAN into a more competitive region within the world economy. A stronger regional economy will help to improve the living standards of the ASEAN population by reducing poverty through economic development.

ASEAN member countries expect to achieve greater economic cooperation in the areas of financial policies, trade, and human capital. AEC integration will also serve to promote goods and services, investment, labor mobilization, and mobilization of capital. The ASEAN region could potentially become a highly competitive economic union operating as a single market. ASEAN also intends to improve regional agricultural and industrial utilization, as well as expand trade, and improve transportation and infrastructure.

As an example, Six Southeast Asian countries, namely Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, are the most suitable countries for entrepreneurial goals. The population in these six countries reaches 9% of the world’s population. While the Gross

Domestic Product (GDP) reaches 3.17% of world GDP. This makes these six countries considered capable of being a land for establishing trade, business and economic partnerships. Thus, the results of the Global Entrepreneurship Monitor (GEM), the world’s foremost study of entrepreneurship, establish the conduct of entrepreneurial research comprehensively in six Southeast Asian countries.

The Future of ASEAN’s Technopreneurship

The process of organizational creativity is a process of mainstreaming innovation or continually finding important corporate problems, solving those problems, and implementing the solutions to satisfy the global market and is referred to as Technopreneurship (S.O.O., 2014). Technopreneurship emerges when entrepreneurship is combined with the development of Science and Technology. The equation between entrepreneurship and Technopreneurship is caring for profit. But Technopreneurship, aside from caring for profit, also cares about the development of Science and Technology.

A Technopreneur is an entrepreneur who understands technology, who is creative, innovative, dynamic, and dares to be different. They take paths that have not been explored, and are very excited about their work. ASEAN is home to an abundant of natural resources and is one of the world’s largest producers of agricultural commodities. Many ASEAN Member States (AMS) used this endowment as a springboard for industrialization, and today the region is a thriving hub for global manufacturing and trade. These developments have been supported by a number of common trends: most AMS have achieved sound macroeconomic fundamentals and a high savings rate, and they demonstrate relatively open trading systems with a young, rapidly growing population.

The creation of the AEC promises to open up sizeable new market opportunities for ASEAN firms, including SMEs, yet it also threatens to open up new challenges. Small and medium enterprises (SMEs) are the backbone of ASEAN economies. Between 89% and 99% of enterprises within ASEAN are SMEs, providing between 52% and 97% of employment in member states. They’re also an important source of innovation. But many SMEs are limited in their ability to grow because of lack of access to finance, business services and information, and constrained access to markets beyond their immediate neighborhoods.

However, the rise of digital marketplaces and online services can empower and support SMEs to trade in ways that was unimaginable even a few years ago, connecting them to giant, regional

markets rather than just local customers. There are 6 unicorn Technopreneurship or e-commerce that are widely-known, which are Gojek (Indonesia), Grab (Malaysia), Lazada (Chinna), Sea (Singapore), Tokopedia (Indonesia), Traveloka (Indonesia), etc.

ASEAN Youth’s Role on Technopreneurship

The youth are an important section of the population in any country in the world and are in need of attention as they are both our current and future leaders and the catalyst for economic, social, and cultural development. Over the years, the ASEAN youth have become more aware and more involved in building and promoting the ASEAN Community. There are currently 213 million youth (15-34 years) in ASEAN countries, constituting the largest ever cohort of ASEAN youth. The peak population of just over 220 million is expected in 2038.

Technopreneurship in its development is always associated with technological developments that end in internet use. With a total population of 644.1 million, ASEAN holds 8.4% of the world’s total population. 53% of the population are internet users. This gives benefits to technopreneurs to develop Technopreneurship in Southeast Asia. Adding to 35% of the ASEAN population is the younger generation.

Technopreneurship is sometimes connected to the youth’s role in all countries in the world. Youth is best understood as a period of transition from the dependence of childhood to adulthood’s independence. That’s why, as a category, youth is more fluid than other fixed age-groups. Yet, age is the easiest way to define this group, particularly in relation to education and

employment, because ‘youth’ is often referred to a person between the ages of leaving compulsory education, and finding their first job.

Adopting a standardised definition of youth is complex as there is no definition which is universally recognised (Global YDI Report, 2016). The complexity comes from the different aspects and issues involved in the transition stages of young people’s development from adolescence to adulthood. The UN definition of youth is 15-24 years and the Commonwealth Global Youth Development Index definition is 15-29 years. In the context of ASEAN Member States (AMS), the age ranges of youth are defined in the law and regulations which exist in each country.

It should be noted, however, that the age ranges available for the indicators do not align with this definition. Should further disaggregation by age become available in the future, this may improve the accuracy of the picture provided of the youth in the region by the YDI, which stands for Youth Development Index, in ASEAN.

The emergence of Technopreneurship provides great support to the government, related institutions, and also ASEAN youth. ASEAN youth, with their enthusiasm and abilities, are able to adapt to the development of science and technology, specifically the internet. This can be seen from the Technopreneurship unicorn leaders in Southeast Asia, mostly young people. For example, e-commerce is a subsidiary of SEA Group originating from Singapore. Christin Djuarto, 29, right on February 2018 served as Director of Shopee Indonesia.

Not only that, the founder of Gojek and CEO of Gojek, Nadiem Anwar Makarim, founded Gojek in 2015 when he was 31 years old and still adrift as a youth in Southeast Asia. Therefore, the youth have roles in the development of Technopreneurship which is very promising not only in ASEAN but also in the world. However, most young people feel optimistic and pessimistic about the development of technology or the internet for their work later. But again, it takes good cooperation and contribution between all parties so that this can work well and the younger generation can be encouraged to be more enthusiastic.

The ASEAN Youth Forum (AYF) has committed itself to upholding meaningful youth participation in the following:

Realising action-based activities on youth issues at the national, sub-regional, and regional levels.
Engaging key participants including civil society, youth-relevant bodies at the national, regional, and international level through meaningful dialogues and activities.
Expanding influences with other significant groups in ASEAN and beyond.
Strengthening capacity of this body/organization/ network and other related groups in the region.
Bringing youth in the region to take part in the movement towards the ASEAN Community 2015. The AYF believes that the pursuance of a Youth Development Index, initiated by ASEAN and its Member States, will open doors for young people to be involved in more meaningful engagements at the regional and national levels.

Technopreneurship provides a way and guidance for the progress of ASEAN countries to achieve and realize the vision of the Industrial Revolution 4.0. This is reflected in the development of science and technology in vital sectors that support the economies of ASEAN countries. With population growth increasing every year and supported by human resources, which constitutes the many young people, ASEAN is becoming ready to face the Industrial Revolution 4.0. The development of Technopreneurship or e-commerce is often associated with the younger generation, who, recently, has become the originator of the largest e-commerce in ASEAN.

The youth are the country’s biggest treasure, in which they will become future leaders in ASEAN countries. Therefore, the government and related institutions should establish good cooperation with the younger generation, so that the generation of pride in ASEAN countries can be created to bring ASEAN to unity in the world.

REFERENCES

Article

http://infobanknews.com/asean-menciptakan-kewirausahaanterbanyak-di-dunia/

https://aseanup.com/tech-unicorns-southeast-asia/

https://asean.org/asean-enhance-roles-young-women-entrepreneurs/

https://bebusinessed.com/history/history-of-entrepreneurship/

https://kominfo.go.id/index.php/content/detail/4301/Prospek+Cerah+Technopreneurs%20hip +di+Masa+Depan/0/sorotan_media/

https://wearesocial.com/special-reports/digital-southeast-asia-2017.

https://businessinsight.kontan.co.id/news/christin-djuartofigur-anak-muda-di-bisnis-e-commerce/

https://oxfordbusinessgroup.com/overview/gearing-economies-around-world-arepreparing-opportunities-and-challenges-brought-about-next/

https://oxfordbusinessgroup.com/overview/gearing-economies-around-world-are-preparing opportunities-and-challenges-brought-about-next

https://oxfordbusinessgroup.com/overview/gearing-economies-around-world-are-preparing-opportunities-and-challenges-brought-about-next

https://www.weforum.org/agenda/2018/09/trade-entrepreneurship-and-the-future-of-asean/

Journal

https://www.adb.org/sites/default/files/publication/379401/asean-fourth-industrial-revolution-rci.pdf

https://asean.org/storage/2018/04/ASEAN-Leaders-Vision-for-a-Resilient-and-Innovative-ASEAN.pdf

http://www.oecd.org/investment/sme-policy-index-asean-2018-9789264305328-en.html

https://asean.org/storage/2017/10/ASEAN-UNFPA_report_web-final-05sep.pdf

https://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-definition.pdf

0 replies

Want to join the discussion?
Feel free to contribute!

Latest Articles

RELIGION: BOON OR BANE FOR DEMOCRACY?December 20, 2023 - 12:32 am
Redefining Commodities in International Trade: ASEAN Blue Carbon Initiative and Its Role in Navigating Climate Crisis in the Southeast Asia RegionDecember 18, 2023 - 12:05 am
Korea-Indonesia Cooperation Forum in Commemoration of the 50th Anniversary of Diplomatic RelationsDecember 6, 2023 - 3:53 am
NACT Country Coordinators Meeting and Annual Conference 2023October 16, 2023 - 4:48 pm

Facebook

RELIGION: BOON OR BANE FOR DEMOCRACY?December 20, 2023 - 12:32 am
In December 2022, the Indonesian government passed a law that penalizes sex outside marriage. This is only one of the many changes in the criminal code that observers warn of the increasing conservatism in the country.

Indonesia houses the largest Muslim population in the world and is also a republic whose democratic experiences and milestones have been widely studied by scholars within and beyond the region. This makes Indonesia a compelling case for reflection on the nexus and tensions between religion and democracy. Is religion compatible with democracy? What opportunities and challenges does the “Islamic Renaissance” entail in the country? Democracy on Religion

Liberal democracy espouses secularism, the separation of church and state, and freedom of religion. In an “ideal” democratic system, the state must not endorse nor support any specific religion while guaranteeing the free exercise of religion among citizens. This is essential in a democracy for many reasons. Religious freedom is a crucial civil right that enhances citizens’ individuality and relations with others. It stops one religion from dominating society, hence promoting diversity and co-existence. At the same time, it prevents policies from being framed according to religious beliefs, which may result in discrimination and repression of fundamental human rights.

Religion and its Tensions with Democracy: The Case of Indonesia

This is particularly important for Indonesia. While the country is predominantly Muslim, Indonesia also has many ethnolinguistic groups with different cultures and practices. It is a challenge in itself to build one nation with an immensely heterogeneous society. The diversity in the country resulted in years of ethnic conflict and violence. Even a religious minority, the Ahmadiyya, faces intimidation and oppression in the exercise of their faith. Indonesia’s dilemma points to the longstanding debate in human rights discourse and practice – are human rights universal, or are they relative to culture and local customs? While I am more inclined to support the former, it is important to be aware and carefully consider the context of a country when designing human rights advocacy and interventions.

However imperfect, the democratization process in Indonesia has assisted in facilitating efforts for reconciliation and balancing competing interests in the country. Recently, the President stunned the world when he acknowledged past grave human rights abuses in the country, including an anti-communist purge in the ’60s and the arrest of democracy activists during the Suharto presidency.

Indonesia sits in between secularism and theocracy. The country’s fundamental law espouses Pancasila, which is the foundational political theory of Indonesia. Through its five principles, Indonesian society believes in one God and aspires to create a just and civilized humanity, unity, democracy, and social justice for all. This tells us that, by principle, Indonesia gives importance to pluralism and citizenship. Scholars and practitioners of the law also adopt legal pluralism and believe that different legal systems are complementary rather than contradictory. For example, community practices and customs are considered along with national and local regulations in settling disputes and conflicts at the village level.

However, in recent years, Indonesia has seen the expanding role of Islam in the country’s social and political life. Aside from Islam being a “source of ethical and cultural guidance”, many Islamic organizations have secured formal power, which allows them to easily introduce measures within the state apparatus that cement their own interests. Hardliner Islamic groups have also proliferated, and fundamentalist thought and practices are becoming more and more widespread. Islamic identity politics have also been evident since Widodo coalesced with conservative Islamic factions and appointed Amin, an influential Islamic figure, as his vice president. The new penal code tends to be more religious than secular. This has implications for Indonesia’s supposed secularism and diversity. How can the Indonesian government best represent the interests and aspirations of all?

As Indonesia continues to modernize and extend its economic and political ascendancy in the region, rapid changes in its social relations and dynamics are also expected. This demands a more careful look at the kind of laws and “social controls” that the government enforces. Suppose conservative forces are forwarding laws in the name of protecting tradition and keeping Indonesian values in check. In that case, it should not be at the expense of fundamental civil and political liberties, nor should it be to repress vulnerable groups even further, such as women, LGBT+, and ethnic communities. Admittedly, this is easier said than done. Hence, political representation must reflect the diversity and vibrance of Indonesian society. If only one group dominates political and policy discourse, it ultimately jeopardizes the general will.

When religion becomes the yardstick for crafting rules and policies, it creates biases, whether intended or not. Propositions that are credible and necessary but “contradictory” to a certain religion may be rejected simply because they do not fit the personal convictions of decision-makers. Integrating religion into politics usually leads to oppressive and harmful policymaking. Religion is also a form of heuristics or cognitive shortcut that devalues deliberation and discussion. Instead of scrutinizing issues, people may resort to using their religion as the sole basis for their position on a particular matter. Democracies ought to be deliberative and pluralistic.

Human rights activists and organizations in Indonesia have sounded the alarm on many changes in the criminal code that could stifle individual freedoms and lead to setbacks in the country’s democratic progress. Aside from banning sex outside marriage, the government also reinstated laws that criminalize insulting the President and other state officials and institutions. They also increased the punishment for blasphemy. These laws can be disproportionately used against individuals and groups with legitimate criticisms and concerns about the government. It may also render already marginalized communities even more vulnerable. Religion, Populism, and Repression

This trend is not only unique to Indonesia. Much of the world has seen the rise of “nationalist” movements, often within the pretext of religion and safeguarding culture. India’s Modi has exhibited Hindu nationalist tendencies, which have meant greater intolerance against the Muslim minority in the country. Myanmar’s Tatmadaw has weaponized Buddhism to rally support from the public and account for its atrocities.

The use of religion to justify repressive and oppressive regimes is apparent. Religion is an effective tool to unify a group of people and subject them to a specific set of beliefs and values, which may be highly prejudiced and absurd. Religion acts as a moral compass that defines what is right and what is wrong. Because religion is subjective, it can easily be manipulated to serve political objectives. Populists and autocrats can bastardize religion to create a public enemy, instill an “us vs them” mentality, and sow further polarization.

Failed democracies thrive out of fear, whether it is real or manufactured. Religion can be a potent force to ingrain this fear. This hysteria against change and modernization is easy to whip up when people already have preexisting beliefs. It is not too difficult to segregate people and label them as the “other”. When this distinction is entrenched, it is convenient to normalize discrimination and violence.

It is said that Indonesia is a model for “Moderate Islam” when compared to the Middle East; the “Indonesian way” can complement Western values and democracy. It also has the potential to correct Islamophobia and promote Islam as a religion of peace. On the other hand, if Indonesia cannot find its balance and condone fundamentalist and hardliner Islamic groups to flourish, Indonesia will certainly regress in its hard-won democratic gains.

Religion has inherent contradictions with democracy. Subscribing to a religion and structuring a supposedly diverse society using its tenets is monopolistic and can bring about intolerance. It is paramount for democracies to ensure that civil, political, and socioeconomic rights are not deprived based on religion and other forms of cleavages. The access and exercise of power should be as widely distributed as possible. Public office should not be limited to certain political clans or religious organizations. For instance, at the village level, cultural and socioeconomic elites must share power and administration with vulnerable and historically marginalized groups. There are more reasons and illustrative cases, present and past, to posit that religion is more of a bane than a boon to democracy. At the moment in world history when (dis)information is fast and instant, we must maintain vigilance in dealing with autocratic agendas in the guise of “respecting” values and tradition. It is easier to believe and conform than to reflect and deliberate. But democracy dies when we rely on shortcuts to define what is good for us. Democracy dies, slowly and deliberately, when we allow a few to sabotage our freedoms and liberties to increase their own. Demagogues and despots are usually cunning and do things “in the name of God”.

REFERENCES

Evans, M. S. (2014). Religion and political decision making. Journal for the Scientific Study of Religion, 53(1), 145–163. http://doi:10.1111/jssr.12088

Evans, T. (2012). Separation of Mosque and State in Indonesia. Policy, 27(4), 35–39.

Głodek, A., & Grzywacz, A. (2020). Indonesia – between religion and democracy, Warsaw: Boym Institute. Retrieved from https://instytutboyma.org/en/indonesia-between-religion-and-democracy

Jaffrey, S. (2020). Is Indonesia Becoming a Two-Tier Democracy?, Washington D.C.: Carnegie Endowment for International Peace.

Jamaluddin, M., Chen, H. & Watson, A. (2022). Indonesia bans sex outside marriage as parliament passes sweeping new criminal code, Jakarta: CNN.

Klinken, G. v. (2019). Living in a Sacred Cosmos: Indonesia and the Future of Islam. Journal of the Humanities and Social Sciences of Southeast Asia, 175(1), 81–135. http://doi:10.1111/jssr.12088

McWilliams, E. (2018). Democracy in Indonesia: A Progress Report, Washington D.C.: The Foreign Service Journal.

Nagda, A. (2020). The Diplomat. [Online] Available at: https://thediplomat.com/2020/03/the-islamization-of-indonesias-foreign-policy/

Omelicheva, M. & Ahmed, R. (2018). Religion and politics: examining the impact of faith on political participation. Religion, State, and Society, 46(1), 4–25.

The World Factbook. (2023). Indonesia, s.l.: Central Intelligence Agency.

Wieringa, S. E. (2006). Islamization in Indonesia: Women Activists’ Discourses. Signs: Journal of Women in Culture and Society, 32 (1), 40–27.

Short Biography:

Kay Conales is a student of the Asia Pacific-Master of Arts in Human Rights and Democratization of the Institute of Human Rights and Peace Studies (IHRP) of Mahidol University (Thailand). She also studied in the Faculty of Social and Political Sciences (FISIPOL) of APMA’s partner-university Universitas Gadjah Mada (Indonesia). She can be reached through e-mail at ksconales@gmail.com.

Technopreneurship Among the Youth as Supporting Factors for Economic Sustainability of ASEAN towards the Fourth Industrial Revolution

Leave a Reply

Leave a Reply Cancel reply

ASEAN STUDIES CENTER UGM

CONTACT US