The Impact of the Industrial Revolution 4.0 Transformation on the Circular Economy in Indonesia

Currently in the millennial era, the industrial revolution 4.0 is a necessity that almost touches all areas of life. On the other hand, Indonesian people are increasingly aware that resources are increasingly limited and must be managed properly and wisely. The traditional take-make-waste paradigm has proven inefficient and irrelevant to the earth’s finite resources, while the human population continues to grow. Do not let all resources be utilized today without leaving resources for the next generation. The role of Industry 4.0 with its complexity and combination of various scientific fields seems to lead the orchestra to create a new economic model. With the help of Industry 4.0, the circular economy offers minimal resource utilization, efficient production processes, utilization of recycled products, and high-value job opportunities.


Introduction
Before understanding what the industrial revolution is, it would be better if we knew a brief history of the industrial revolution itself.The industrial revolution 1.0 times began in the 18th century in England or precisely in the 1780s [1].The Industrial Revolution was first marked by the mechanization of agricultural, manufacturing, transportation, and mining equipment.The Industrial Revolution 2.0 began in 1870 and was characterized by machine efficiency, where the invention of the steam engine began to be used in textile machinery, automotive, railways, etc.The Industrial Revolution 3.0 began in 1969 when for the first time computers, robots, transistors, and semiconductors that help humans work [2].The industrial revolution 4.0 began around 2011 and was first created in Germany which was characterized by combining automation technology and cyber technology.Figure 1 Describes the timeline of the first stage of the industrial revolution that occurred in 1784 which was marked by the discovery of mechanization of production, railroads to steam-powered engines.Then followed the second stage of the industrial revolution that occurred in 1870 which was characterized by machines that were more efficient when mass producing products, electrically powered machines, and efficiency on production lines.Continued then with the third industrial revolution that occurred in 1969 with the discovery of machines capable of producing automatically and computers and finally the fourth stage of the industrial revolution that occurred in 2011, which was characterized by the internet, digital technology, artificial intelligence, and data processing.
The existence of the Industrial Revolution 4.0, of course, as the birth of the previous industrial revolution will certainly have positive and negative impacts in various fields, one of the positive impacts that currently occurs is the emergence of a new economic model, a circular economy.
Circular Economy itself was first introduced in Japan in 1991.Japan has been known as one of the resource-poor countries, but with these few resources, it managed to manage it so well that it became one of the industrialized countries and economic superpowers respected by the world.Japan is also slowly but surely, finding solutions to reuse recyclables.Japan's recycled products ultimately benefit society, the environment, and business.So this characteristic of the Japanese circular economy is a form of economic activity designed to regenerate itself, or a planned economic system by reusing waste materials into repeated production cycles to reduce the impact of waste as much as possible [3].
In recent years, ranging from the problem of flooding disasters due to blockage of river flows by non-biodegradable waste, repeated occurrences related to demonstrations or protests from communities around landfills, illegal landfills, to the problem of excessive waste loads that make waste increasingly uncontrollable.The burden of excess waste that occurs in these big cities if not immediately addressed can be a source of new follow-up problems [health, cleanliness, and beauty of the city] which is also the starting point for handling waste as a big problem that must be managed better, integrated and sustainable.
The increase in waste, as well as the intention to manage waste well, especially for types of waste that can be recycled along with the reduction of limited natural resources, finally sparked a circular economy that aims to reuse the waste into value-added products and can be used to improve welfare as well as community empowerment.Meanwhile, in the complex, sophisticated, and interconnected millennial era, the role of Industry 4.0 can play a central role in overcoming both of the above.
The emergence of the Industrial Revolution 4.0 is related to the development of a circular economy model, expected to be able to increase value-added products efficiently and quality, be able to manage (natural) resources more efficiently, increase labor productivity, and produce circular products with shorter lead times.In a recent study shows that companies that aim to achieve sustainable growth should use Industry 4.0 technology.Industry 4.0 is expected to be a tool or bridge that connects data processing to locations that are waste collection sites while utilizing it to carry out a series of production flow automation, big-data exchange, and information dissemination to formulate what types of valuable products are needed by the community through the use of cloud services, and the Internet of Things (IoT) [4].The application of Industry 4.0 can also be a refinement of all efforts to utilize waste resources utilized, through digital transformation in the circular economy corridor to realize the main goal, which is to improve community welfare and waste handling into new products that are of high value and needed by the community.Figure 2 above, it can be explains how the waste processing process can be carried out more effectively and efficiently by involving the digital transformation process, namely the use of GPS technology starting from the process of transporting waste in temporary garbage shelters to the final garbage shelter which is also a waste processing site to be processed through robotic machines that use artificial intelligence.Starting from the sorting process, validation operations, and waste processing to become semi-finished goods or finished goods that have added value.
With various interdisciplinary combinations as described above, coupled with increasingly limited resources on earth, Industry 4.0 played an important role in the birth of the circular economy model.
As mentioned in the description above, the existence of Industry 4.0 can function as a tool or bridge connecting waste handling to realize a circular economy.The author hopes that with the sophistication of the internet, big data, and cloud, in the digital transformation of the industrial revolution 4.0 mentioned above, the millennial generation is increasingly interested in participating in managing this waste problem.
It is indisputable that there is still a dearth of research and literature on waste treatment based on industrial technology 4.0, much alone in upper-middle countries like Indonesia.However, lately with various events such as various virus pandemic issues that are endless and greatly disrupt economic growth, the discourse on implementing a circular economy related to waste processing used based on industrial technology 4.0 can be considered as one way out to improve the nation's economic structure which was torn apart due to the Covid-19 pandemic.Moreover, Indonesia is currently enjoying a demographic bonus, where the productive force (15-64 years old) is predicted to increase to 10 million people by 2025.Of course, the abundance of productive power among millennial youth can be utilized to participate in the development of a circular economy based on Industry 4.0.
Circular Economy.Although the global economic paradigm continues to develop, the economy still adheres to a fundamental characteristic at the beginning of the Industrial Revolution, namely a linear model economy.This economic model is very inefficient in the use of resources, especially natural resources.The linear economic model follows the takemake-dump cycle and remains guided that the goods made must be in accordance with the wishes of the customer or customer without any intention to educate customers.A circular economy is a business model that replaces the concept of 'end of life' by reducing, or reusing, recycling and recovering materials in production/distribution and consumption processes, thus operating at the micro level (product, company, consumer), meso level (ecoindustrial area) and macro level (city, region, country, and so on), with the aim of achieving sustainable development, which means creating environmental quality, economic prosperity and social justice, to achieve those goals.Benefits for present and future generations" [6,7].
The understanding of the linear economic model that has existed so far is that there are still assumptions about the processing of unlimited resources and ignoring their negative impacts on the environment.For example, linear economic management is the use of various mining minerals, as well as other natural biota.On the other hand, the issue of natural damage caused by the application of this linear economic model continues to surface along with world climate change and natural damage.Even though the goal of a sustainable economy or sustainable economy does not only think about the current generation, but it is necessary to think about what legacy will be left for the next generation.

Figure 3. Difference between linear economy and circular economy
In Figure 3, it can be explained that there is a difference between a linear economic system and a circular economy.The most obvious difference lies in the principle of linear economics which uses the concepts of take-make and discard.In a linear economy, this model also assumes that resources are abundant and their use has damaging side effects on the preservation of nature.While the circular economy, and vice versa.That is by utilizing waste/waste used to be remade into useful and value-added goods.The circular economy also uses environmentally friendly and renewable resources.For example, the use of solar energy or wind energy.Not using fossil energy.In essence, a circular economy is a conceptual framework that seeks to balance human consumption with the earth's capacity to provide resources.The focus is on business models that drive sustainability improvement at the company level. [7]The circular economy can also be used as an optimization of the Triple Bottom Line (TBL), and can be used as a new business model while creating jobs.So that the circular economy can function, among others; to save costs, reduce resource price instability, improve resource security for supply chains, and lastly, reduce environmental pressure and impact.
Lately, many companies and business observers have revealed the weaknesses and risks associated with linear models.The risk most felt by companies and customers today is the rising price of resources.This increase in resources is what further worsens conditions amid the decline in people's purchasing power due to the increasing human population, it is increasingly difficult to find adequate work, while the market price of raw materials continues to change and ends up out of control.Issues such as urbanization, social conflicts, and security risks, further add problems to linear economic models.Economists then again thought that it was necessary to start changing the economic model that had been used into a circular economy model, in which a balance between limited resource consumption, better distribution of products, and avoiding waste of raw materials was needed.
Implications of Industry 4.0 on the circular economy in Indonesia.How do Indonesians respond to the existence of a circular economy model?The concept of a circular economy model in Indonesia has actually begun to be discussed in the second half of 2010.Issues such as household waste, factory waste, and environmental degradation began to receive public attention.Along with the issue of waste and the environment, a discourse on the creative industry began.One of the main issues of this creative industry is to reuse waste materials to be used or recycled so that they become more useful materials and can provide added value for their producers.So, it can be concluded that the issue of implementing a circular economy in Indonesia is only limited to government policies (the establishment of various institutions that handle waste), waste banks have begun to be developed by involving the community to care for the environment, public-private partnerships and education to increase awareness at the community level about the importance of protecting the environment from various wastes and pollutants [8].

Figure 4. Diagram of Most Circular Economy Implementation in Indonesia
From Figure 4, it can be explained that most of the circular economy applications in Indonesia are still limited to recycling production waste materials (waste) into new reusable goods.There is absolutely no Industry 4.0 interference in it.It could be that in processing raw material waste into new goods that are reused still use fossil energy (diesel oil for diesel engines or using coal to heat boilers).The circular economy value of water supply and recycling waste treatment can be seen in Figure 4 below ; In Figure 5 above, it is known that the contribution of the circular economy in Indonesia from 2016-2020 is still very small when compared to the value of Indonesia's overall economic turnover which has reached thousands of trillion Rupiah.
Implications of Industry 4.0 on circular economies abroad.Meanwhile, if we compare it with the circular economy management model in developed countries such as Japan and Germany, it can be seen in Figure 6 below; In Figure 6 it can be seen how the role of the process of collecting used goods (3D validation), sorting goods using robotic arms, the process destroying used goods, all of which have been used using CPS (Cyber Physical System), a type of system that can process waste goods with the help of artificial intelligence data analysis, will help the process of processing used raw materials (waste) into new products that can increase added value.The positive benefits are of course that the environment is kept clean, not polluted by garbage and garbage, the social impact can also increase employment opportunities in new sectors and improve the economy through the sale of new products that are more valuable and environmentally friendly [9] Speaking of the implementation of Industry 4.0 into the management of the circulation model economy, the Japanese government in 2000 made a law containing the Basic Law on Building a Healthy Material Cycle Society.To further drive the circular economy in Japan, they set a vision and strongly encourage digital technology interventions (Industry 4.0) to transform Japanese society to contribute to saving the environment and leave a good legacy for the next generation.

Methodology
This research was conducted by looking for literature reviews and other resources of information related to technology 4.0 and water sustainability.The purpose of this study is to obtain relevant information and to find out the relevance of this information to produce useful conclusions.
1. Knowing the definition and implementation of technology 4.0.2. Knowing water sustainability and its current situation.3. Identify the information relevancy and summarize key points supported by the context.4. Write the points in a structured manner.

Result and discussion
Economic Impact.The parameters of circular economy growth can be seen from its growth.If it is associated with the role of Industry 4.0, it is certainly related to the efficiency of using inputs to produce products that have high value so that it has an impact on providing profits or increasing income for the actors involved in it.In addition to the impact of increasing profits for companies or income for individuals, other socio-economic benefits that can be felt are job creation, increasing family welfare rates, and the discovery of innovative products that have high added value.Another benefit for companies is that the supply of recycled raw materials is guaranteed so that in addition to having a low budget to buy them, companies can also create new jobs [10], especially for individuals who collect recyclables.
Circular Economy Data Analysis.Circular economy management in Indonesia is not solely waste management to be recycled and processed into new products but must involve Industry 4.0 for handling from upstream to downstream so that the substance of efficiency can be fulfilled in every line of business.Starting from a neatly recorded waste bank, data on the amount of recycled raw materials available and used for the production process into new goods or products.Therefore, Bappenas together with other ministries and institutions will make the circular economy one of the tools for the Indonesian government to achieve green economy-based economic development in the next 20 years.Table 1.below will further illustrate the circular economy conditions currently being carried out by various local governments in all provinces in Indonesia; Based on Table 1 above, it can be seen that only 16 provinces out of 38 provinces exist in Indonesia today.This means that not 50% of all provinces implementing a circular economy still have a simple understanding of waste or recyclable management.Thus, the potential entry of Industry 4.0 in integrating data on the existence of waste banks to upstream downstream management is still not optimal.

Characteristics and Barriers of Waste Management in Indonesia.
There are many government regulations or laws that regulate this waste management.It's just that so far the waste problem is only limited to dirt that must be 'hidden' or 'removed' from the eyes, even though the method is only by moving places.The majority of waste management in Indonesia is still mixed and not disaggregated.The waste management system in Indonesia until now has arguably not been well integrated and is far below adequate standards.The participation of private companies is almost said to be non-existent or unwilling to deal with this waste problem.Public awareness of environmental cleanliness is still very low, even though they live in a city as big as Jakarta.The penal system for littering also doesn't work.The waste management system in Indonesia is still mostly traditional.
With various shortcomings and constraints as mentioned in the paragraph above, the waste management system in Indonesia is currently unable to identify; the volume (amount), type, or characteristics of waste collected from the smallest community landfill to landfill.All waste management only moves and disposes of dirt and in front of our eyes, without any processing must be given waste which eventually becomes mountainous and causes new problems in the landfill.
Utilization of Industry 4.0 in the Circular Economy.It is time for the government, private sector, and tech-savvy millennials to unite, together integrate a circular economy system by utilizing industrial technology 4.0.The role of the government in making firm waste management regulations, plus the role of extension workers as agents of change to the community to provide education about the importance of waste management.The private sector as a full financier (or share with local governments) makes modern and healthy waste IOP Publishing doi:10.1088/1755-1315/1324/1/0120839 collection, plus the role of the younger generation of digital technology literacy that makes algorithms regarding waste handling, recycling processes, recyclable goods production processes into new items that can benefit the community.An integrated, comprehensive, upstream waste management system by utilizing a scientific mix of information technology, artificial intelligence, the Internet of Things, and Cyber-Physical Systems will realize a circular economy that is good for the environment, society, and economy.Ultimately, by leveraging Industry 4.0, the presence, volume (amount), and type (characteristics) of waste, wherever its existence can be tracked and monitored in real-time, allows waste to become a valuable resource or raw material.

Conclusion
This paper discusses the potential implications of Industry 4.0 in the circular economy model by taking the example of the case in Indonesia.Industry 4.0 is a compromise between humans and various scientists related to millennial technological advances, namely the Internet of Things (IoT), cyber physics system -CPS, artificial intelligence (AI), blockchain, and robotic arm.The sophistication of this digital technology is expected to overcome various obstacles in the implementation of a circular economy in Indonesia.
In the implementation of Industry 4.0, of course, there are various obstacles.Those obstacles can be due to the culture, customs, or unique characteristics of a society.Therefore, there needs to be a strong encouragement and intention that is not just making government regulations.In addition to cultural barriers, habits, and unique characteristics of a society, several other things that can be obstacles to the implications of Industry 4.0 on the circular economy in Indonesia are; limited infrastructure, lack of skills, and uneven educational capacity (including quality human resources), obsolete government regulations, strong intentions and awareness and understanding of the Indonesian people themselves on the importance of protecting the environment in order to pass it on to future generations.
The need for an active role of the three main stakeholders; government, with a strong intention to start an integrated circular economy, from upstream-downstream, by involving millennials, and agents to realize a sustainable green economy, and can increase added value for the national economy and the welfare of the Indonesian people as a whole.

Figure 2 .
Figure 2. Utilization of Industry 4.0 for Waste Management in the Framework of Circular Economy Development Source: Petros Gikas et al., Unlocking digital technologies for waste recycling in Industry 4.0 era: A transformation towards a digitalization-based circular economy in Indonesia, Journal of Cleaner Production, Vol.357, 2022 Jul 10 th , 1319

Figure 6 .
Figure 6.Circular Economy Process by Industry 4.0 Implementation

Table 1 .
Circular Economy Conditions Each Province in Indonesia