<![CDATA[The implementation of industrial engineering technologies, such as automation, the Internet of Things (IoT), artificial intelligence (AI), and lean manufacturing, has significantly transformed human resource (HR) capabilities in the production sector, particularly in response to the Industry 4.0 paradigm. This study aims to examine the relatively low level of technology adoption in Indonesia, estimated at only 6–20% of manufacturing companies, and its impact on the development of HR competencies. The analysis focuses on changes in technical skill requirements, including digital literacy, data analytics, and technology-based decision-making, as well as the shift in job roles from manual tasks to more strategic functions. This research employs a qualitative descriptive approach grounded in sociotechnical systems theory and the strategic alignment model. The findings indicate that existing skill gaps can be addressed through continuous upskilling and reskilling programs, supported by strengthened triple helix collaboration among government, industry, and educational institutions. The implementation of these strategies has been shown to increase productivity by approximately 30–72% and enhance the competitiveness of the national production sector in the global industrial landscape. ]]>
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