Digitalisation Impact on Indonesia Labour Market: SWOT-TOWS Analysis with Islamic Economic Principles

Abstract

This study examines the impact of digitalisation on the Indonesian labour market using a SWOT-TOWS analysis framework and alignment with Islamic economic principles. The study aims to identify the strengths, weaknesses, opportunities, and threats of digitalisation for the labour market, as well as to formulate strategies and recommendations based on the SWOT-TOWS matrix. The study also explores whether the results of the SWOT-TOWS analysis can be aligned with Islamic economic principles, which emphasise social justice, equality, and welfare. The study uses a qualitative method with a critical literature review approach to collect and analyse data from various sources. The study finds that digitalisation has both positive and negative implications for the labour market, such as increased efficiency, innovation, and access to information, as well as job displacement, skill shortages, and inequality. The study also suggests some possible ways for academics, it improves understanding and directs future study. For industry, it enhances workforce management and ethical business practices. Policymakers may use it to assist in developing regulations for social security, job creation, and workforce development that are in line with Islamic principles. The study concludes that digitalisation can be a catalyst for economic development and social welfare if it is guided by Islamic values and principles.