[PRESS RELEASE] The Digital Revolution and the Future of Global Economy | Difussion # 5
Thu, 10 May 2018 || By Admin CfDS

Yogyakarta, May 9, 2018 - The digital disruption inside the global economy has gradually created changes in the human behaviour and even more unpredictable future. It is now increasingly important for businesses to take into account the role of technology and its impact on their business strategies. Center for Digital Society brought up the topic of the digital economy in its monthly discussion session, Difussion, on Wednesday (9/5).

Uber's departure from Southeast Asia

Once again, Uber surprises the world by announcing the merger of the ride hailing company with its competitor, Grab in Southeast Asia. This decision has important consequences in the ride hailing industry in Southeast Asia. However, this does not mean that Uber lost the competition or will depart from the market completely, as the business move also granted Uber a sizeable share of Grab's shares.

"Although their physical existence no longer exists, Uber still has a presence in the Southeast Asian market through their role from the leadership ranks of Grab. Grab’s growth and development will surely benefit Uber as well," said Birgitta Purnama Putri, CfDS researcher who delivered the first session in this discussion.

The relationship between Grab and Uber will also further strengthen their position in the competition in Southeast Asia, and make price competition more effective. This step also has many potentials given the number of new sectors that can be explored by technology-based transportation service companies such as Grab and Uber using big data mined from its users. However, we still need to wait and see further developments to get a bigger picture.

Facebook and our Privacy Protection

Facebook and Cambridge Analytica’s data privacy leakage scandal has raised the issue of personal data protection on the internet. Data is often mined and used illegally without consent by information technology firms for personalized advertising, including sensitive information such as sexual orientation and political views. In this regard, the EU strongly condemned the companies as data and privacy of their citizens is highly valued and protected. The EU develops General Data Protection Regulation (GDPR) to protect the EU resident from the Facebook and other social media companies.

The GDPR imposed by the EU requires companies like Facebook to clarify and strengthen the implementation of the law regarding granting consent from users to use their data, so that users have full control over the data they upload to the internet. In the end, it also encourages Facebook to take part in improving privacy policies globally, not just in the EU.

Darasti Zahira explained, "After all, social media is not free. Users do not pay with money, but with their data which is collected and will be used for the personalized advertising we see on the internet."

Automation and Job Loss

Job automation become a major characteristic of the fourth industrial revolution. Many predict this will wipe out many jobs and cause an economic crisis that will have a significant impact on the middle class. However, job automation will only replace jobs that are repetitive and require less humanity touch. Furthermore, it will also push the creation of new jobs and increasing productivity and effectiveness.

"There are five trends that affect the employment sector in the robotic era, namely increase in income, technology, an ageing population, renewable energy, and domestic job marketisation. The transition process is certainly not easy, but as long as it is well facilitated by the government, a group of workers replaced by robots will be easy to move to new jobs, "Gehan Ghofari said as he closed the discussion.

Reporter: Agnes Intan Puspadewi