Using the 2-stage least squared (2SLS) model, the author found that foreign automation reduces Indonesia’s manufacturing exports. However, the author also found that the reduction in exports can be offset by the productivity induced by domestic automation. While the net effect of automation is positive, We also have to note that domestic automation grows at a slower adoption rate leaving an unbalanced weight of the impacts of automation. Furthermore, a similar impact can also be found in employment. We found that foreign automation reduces the employment of both the production and non-production workers. However, unlike in the case of exports, domestic automation is found to also negatively impact employment. This reduction is caused by two things, in particular, the skill gap and the wage gap between the production and non-production workers. "