Industry 4.0: Welfare literacy to face the challenges of rural community Muhammad Shobaruddin Faculty of Public Administration Universitas Brawijaya Malang, Indonesia shobar_fia@ub.ac.id Abstract—This study identifies literacy that has an influence on improving the welfare of rural communities in the industrial era 4.0. Industrial revolution 4.0 has integrated the physical and digital world that affects all disciplines and sectors. Along with the opportunity arise, industrial revolution 4.0 has implications for the unemployment rate, the emergence of human and machine competition, and the demand for competency that continues to increase, especially in the developing countries. In this era, poor people are vulnerable group who should be concern to improve the ability to survive. In Indonesia, the percentage of poor people in rural areas is twice higher as compared to those in urban areas. Therefore, the competency development of poor people in rural areas become a focus in Indonesia based on the Village Law or Law no. 6 of 2014. Competency can be upgraded by increasing the literacy rate, especially welfare literacy including literacy related to information, entrepreneurship, and productivity. Therefore, this study conducted literature review on welfare literacy within 10 years (2008-2018). The result shows that welfare literacy including literacy of information, entrepreneurship, and productivity are interrelated. Rural communities that obtain information will improve their knowledge, thus capable to develop their productivity that positively influences their welfare. Moreover, digital devices especially smartphone made easy the access to needed information. Community library will help rural community which cannot operate digital devices to obtain information. Keywords—literacy; welfare; rural; industry 4.0 I. INTRODUCTION Klaus Schwab was a German economist who was also the founder and chairman of the Executive World Economic Forum (WEF) to introduce the concept of the Industrial Revolution 4.0. in his book entitled "The Fourth Industrial Revolution". In his book, it is explained that the industrial revolution 4.0 has fundamentally changed human life and work [1]. As the 4th generation industrial revolution, differences are seen on a broader scale, scope and complexity (figure 1). Evolving technology has integrated the physical and digital world that affects all disciplines and sectors. Areas that have experienced breakthroughs due to new technological advancements [2], including: blockchain (example: bitcoin), artificial intelligence robots (3D artificial intelligence), 3D printers, quantum computer technology, biotechnology, internet-based technology, and nanotechnology. Fig. 1. Revolution of industry 4.0. Source: kompasiana.com The fourth generation industrial revolution certainly raises opportunities and challenges. The trigger for the industrial revolution, one of which is the development of science and technology has implications for the unemployment rate, the emergence of human and machine competition, and the demand for competency that continues to increase. One of them, Linangkung in sindonews.com [3] stated that the industrial revolution 4.0 in the next five years will reduce 35% of work. Moreover, he also mentioned that 75% kind of jobs will be lost in 10 years. This happens because the work using manpower slowly been replaced by technology, the digitization program. This statement was also stated by Bonekamp & Sure [4] that industry 4.0 is predicted to have a negative impact especially from a social and economic perspective. In particular, the impacts that are particularly vulnerable to developing countries with their level of social and economic inequality are still relatively high. In particular, Figure 2 shows the number of jobs that have the potential of digitization. Some of these jobs, from the highest percentage, are 1) manufacturing business, 2) retail trade, 3) transportation and warehousing, 4) administrative staff, construction, and 5) food and accommodation services. It can be concluded that the fourth-generation industrial Advances in Economics, Business and Management Research, volume 93 Annual International Conference of Business and Public Administration (AICoBPA 2018) Copyright © 2019, the Authors. Published by Atlantis Press. This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/). 124