THE REPUBLIC OF INDONESIA V.V. Krishna - Unesco
THE REPUBLIC OF INDONESIA V.V. Krishna - Unesco
THE REPUBLIC OF INDONESIA V.V. Krishna - Unesco
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<strong>THE</strong> <strong>REPUBLIC</strong> <strong>OF</strong> <strong>INDONESIA</strong><br />
Introduction<br />
V.V. <strong>Krishna</strong><br />
Indonesia proclaimed its independence on August 17, 1945, after more than 350 years under<br />
Dutch occupation. During this long colonial period, Indonesians frequently fought to restore<br />
their pre-colonial independence. Finally, in the early 20th century, attempts to overthrow the<br />
Dutch by force were replaced by the development of nationalist organizations that sought<br />
change and reforms through political means. The Japanese invasion in 1942 and occupation<br />
until 1945 further strengthened the determination of the nationalist movement.<br />
The population of Indonesia in 1980 was 147.5 million, up from 119 million in 1971 and 79<br />
million in 1961. With the present population of 179 million, Indonesia is the fifth most populous<br />
nation in the world, exceeded only by China, India, the Soviet Union and the United States.<br />
Although the population is widely dispersed throughout the archipelago, the heaviest<br />
concentrations are located in the fertile islands of Java, Madura and Bali, where the<br />
population density I 755 per square kilometre.<br />
1. Scientific Activities in the Colonial Period<br />
The first organized scientific activities in Indonesia started in 1778 with the founding of the<br />
“Batavia Society of Arts and Sciences”, a private organization for the promotion of research<br />
for the benefit of trade and agricultural development. Although in the beginning the work of its<br />
members covered all fields of science, there interest gradually shifted more and more to the<br />
social sciences. Even to the present period, the “Proceedings” of the Batavia Society of Arts<br />
and Sciences remain an important source of knowledge concerning the social and cultural life<br />
of the people in several parts of the Indonesian Archipelago.<br />
The establishment of the famous Botanical Garden in Borgor in 1817 was the starting point of<br />
systematic botanical research. Gradually more and more research activities were carried out<br />
in other fields such as zoology, geology and marine sciences. With regard to the applied
sciences, much attention was given to agricultural research especially on export crops, and<br />
later to medical research; important contributions were made in both fields.<br />
The Universities did not have a major part in the last two decades of Dutch Colonial rule. This<br />
was understandable as the first school of higher learning was founded abroad for a university<br />
degree and so only, a small minority could pursue scientific research. Most of the research<br />
was done by the Dutch scientists and other foreign scientists employed by the Dutch. This<br />
isolatation of local researchers had consequences after independence.<br />
The other development during the colonial period was the establishment of an organization<br />
for the promotion and coordination of scientific research in 1928 by Government Decree the<br />
“Natuurwetenschappelijke Raad Voor Nederlandsch Indie” (The Natural Science Council for<br />
the Netherlands Indies). The main objective of this organization was to stimulate and<br />
coordinate research, to function as a point of contact between scientists in the country and<br />
abroad and to act as an advisory body to the Government on matters relating to the natural<br />
sciences.<br />
Twenty years later, in 1948, another organization was created, the “Organization for Scientific<br />
Research” which was intended to become a national research council. Its primary aim was to<br />
stimulate, support and coordinate research that was important for the country. A similar<br />
organization was established for the Natural Sciences, the “Institute of Natural Sciences”. It<br />
was this latter organization, which organized the Fourth Pacific Science Congress, held in<br />
Indonesia in 1929. After the transfer of sovereignty, which took place in the last days of<br />
December 1949, Indonesia encountered a number of problems in many fields, including<br />
scientific research. Since most scientific research was done by the Dutch, after the transfer of<br />
sovereignty, many of these scientists left the country.<br />
1.1 Developments in S&T Policy Institutions after Independence, 1949<br />
As soon as the country proclaimed independence in 1945, a document on the ‘Constitution<br />
1945 of Republic of Indonesia’ was issued. In this document chapter 31 assigned an<br />
important role for S&T in the development of the country. From 1950, Indonesia started its<br />
programme of expanding education at all levels and science and technology. In 1956, the<br />
government formed the Indonesian Council of Sciences to coordinate developments in S&T<br />
and to advise the government on science and technology policy.<br />
The new regime of President Suharto, established in 1966, begun to promote science and<br />
technology for development through a planning process of Five Year Development Plans.The<br />
first Indonesian Ministry of Research and Technology (IMRT) was created in 1970. Following<br />
this, the government established the National Research Centre for Science and Technology<br />
(called PUSPIPTEK) and the Life Sciences Centre. The PUSPIPTEK even today remains the<br />
country’s main R&D research complex. In 1984, the President Suharto formed the National<br />
Research Council (NRC) by constituting members from academia, R&D institutions and<br />
industry to advise the government on S&T; and to work in close collaboration with the Ministry<br />
of Research and Technology.<br />
Besides the developments noted above, Indonesia embarked on a planned process of<br />
development and S&T was given importance in this process. The First Five Year<br />
Development Plan (PELITA I) 1969 – 1974, carried out with the help of foreign governments<br />
and international organizations in the forms of loans grants and expertise, was aimed at<br />
getting the economy of the country out of its precarious position.
PELITA II (1974-75 to 1978-79), set out development objectives and provided directions for<br />
the desired growth process and for the order of priorities. The Second Plan focused on<br />
employment opportunities, a rising level of income, a more equitable distribution of<br />
development projects among the various regions of the country, greater economic and social<br />
integration of the region into one effective national entity and an enhanced quality of life<br />
including its environmental, cultural and nutritional aspects. With regard to the policy on<br />
research and development, focus was placed in the short term on R & D in agriculture,<br />
industry and mining. Cross-sectoral research activities in population, health education, social<br />
attitudes, communication etc, were also emphasized in this plan.<br />
Science and technology activities during PELITA III (1979-80 to 1983-84) were grouped into<br />
pure and applied sciences, supporting each other and directed towards the requirements of<br />
short-and long-term developments. The fifth Five Year Development Plan (PELITA V) laid<br />
down the task for the National Research Council to prepare the formulation of the principal<br />
National Programme in the fields of research and technology through planning and national<br />
development strategy. This exercise evolved a national Matrix on research and technology to<br />
be followed and further developed by other national level R&D and S&T institutions. Even<br />
though the planned process and having S&T component included in the national plans<br />
continues, some of the other developments in the recent times include:<br />
• National Development Programme of 2000, which became a Law in 2002 for National<br />
System of Research and Development, and Application of Science and Technology<br />
• Mechanism and Schemes to Regulate Technology Transfer<br />
• Strategy Policy of National Science and Technology Development 2001-2005<br />
by IMRT<br />
• Law of 2003 on National Education System<br />
• Schemes on Entrepreneurship Development and New Technology Insurance<br />
Programmes by IMRT in 2003<br />
Among the above-mentioned policies, the National Law No. 18, 2002, on National System<br />
Research, Development, and Application of Science and Technology assumes considerable<br />
importance. The government has set up the direction and research development priority as<br />
stated in the National Development Strategic Policy for Science and Technology. The present<br />
structure of Organisation of S&T is shown in Figure-1.
Figure 1: S&T Organisation in Indonesia - National Expenditure on Research<br />
In Indonesia, the predominant proportion of gross national expenditure on research<br />
and development and S&T activities is funded through government sources. Compared<br />
to other neighbouring countries such as Malaysia, Singapore, Thailand and others, Indonesia<br />
spends a relatively low proportion (about 0.2% in 2001) of its GDP budget on science.<br />
This proportion has come down drastically from 0.47% of GDP Indonesia spent on R&D in
1980. As the table 1 shows, S&T and R&D expenditure in Indonesia did not witness any<br />
significant increase between 1999 and 2002.<br />
Table 1: S&T and R&D expenditure of Indonesia (figures in million rupees)<br />
Sector 1999 2000 2001 2002<br />
S&T 1061 1634 1385 1239<br />
R&D 648 659 656 635<br />
Source: Various Websites on Indonesian S&T system<br />
Table 2: Sources of R&D Funds in Indonesia 2000<br />
Sources Billion Rupiah Percentage<br />
Government 659 68.6%<br />
Universities 54 5.6%<br />
Private 247 25.7%<br />
Total 960 100%<br />
Source: Various Websites on Indonesian S&T system<br />
Indonesian S&T and R&D funding relies quite substantially on the government source<br />
of funding. In 2000-02, 68.6% of national R&D was spent by the government, 25.7% by<br />
the private industry and 5.6% by the academic sector. Even from the limited sources of extra<br />
mural R&D funds, the type of allocation made in 1999 (See Table 3) reveals that directly<br />
relevant R&D components such as in universities, government laboratories etc<br />
have accounted for less than 12% and indirect NGO related R&D activities account for over<br />
92%.<br />
Table 3: Distribution of Extramural of Industry R&D Expenditure, 1999<br />
Recipient Rp. Billion %<br />
University 0.756 4.3<br />
Government R&D Inst 0.559 3.2<br />
Other company 0.046 0.3<br />
Overseas 0.894 5.1<br />
Others (NGOs, individuals, etc.) 15.248 87.1<br />
Total 17.503 100<br />
Source: IMRT and LIPI, 2003
As Table 4 shows, out of the R&D budget allocated to research institutions, four institutions<br />
including the one involved in Aerospace field, received substantial funding. It is clear from the<br />
above table that these four institutions are quite important for Indonesian S&T system.<br />
Table 4: Research Institution’s R&D Budget, 2003<br />
Non Departmental Research Institutions Rp. Billion<br />
Indonesian Institute of Science (LIPI) 137.6<br />
National Institute for Atomic Energy (BATAN) 78.5<br />
Agency for the Assessment and Application of Technology (BPPT) 60.9<br />
National Institute for Aerospace and Aeronautic (LAPAN) 51<br />
National Coordinating Board for Survey and Mapping (BAKOSURTANAL) 4.0<br />
National Institute for Standardization (BSN) 0.2<br />
Source: MORT, 2005<br />
2. Universities and Human Resources<br />
Higher education in Indonesia began at the end of the Nineteenth Century with the<br />
establishment of medical education for local doctors in Jakarta. After independence in 1949,<br />
particularly after Education Act of 1961, the country witnessed a good deal of progress in<br />
higher education. In 1950, there were 10 institutions of higher education with 6500 students.<br />
In twenty years in 1970, there were 450 private and state funded institutions of higher learning<br />
with enrolments of 237,000 students. This increased further to 900 institutions in 1990 with<br />
nearly 1.5 million students. In 2004-05, there are some 2600 institutions of higher education<br />
including 82 public institutions. However, given different types of higher educational<br />
institutions, one good source indicates that there are currently 51 state/public universities<br />
(including several teacher-training institutions), 26 state/public polytechnics (engineering,<br />
commerce and agriculture) and 1,328 private higher education institutions (including<br />
academies, polytechnics and teacher training institutions). Besides, there are also Islamic<br />
higher education institutions (both private and state/public) which are under<br />
the control of the Ministry of Religious Affairs<br />
(http://www.rihed.seameo.org/hesystem/indonesiaHEsystem.htm). The Table-7 below shows<br />
some important public and private universities in Indonesia. According to the estimates given<br />
by Djanali (2005), the period of 1990 and 1996 saw enrolments in public universities doubling<br />
to around 1.5 million and enrolments in private universities rose by one third to about 1.9<br />
million. An average of 14,540 additional teachers were recruited for higher education every<br />
five years between 1968 and 1993.<br />
Table 5 shows that both in terms of education inputs (public expenditure on education), and<br />
participation in education, Indonesia in general lacks behind its South East Asian neighbours.<br />
Indonesia lags far behind its South East Asian neighbours and the Republic of Korea<br />
concerning public expenditure and the gross enrolment ratio in secondary and particularly in<br />
tertiary education. Only as regards the adult literacy rate for both adult males and females is<br />
Indonesia on a par with the other East Asian countries, because of the vast expansion in<br />
primary education during the Soeharto era. In 1995/96, just before the Asian economic crisis,<br />
central government expenditure on education accounted for 15 percent of total central<br />
government expenditure or Rp. 12 trillion in absolute terms. However, in 2004 public<br />
expenditure on education accounted for only 10 percent of central government expenditure or<br />
Rp. 25 trillion in absolute terms. Aside from the fact, that Indonesia’s public expenditure on
human resource development is even lower than the average low-income country, let alone<br />
the average middle-income country, the current education and training system in general<br />
does not meet the needs of industry. The reason is that the general secondary education<br />
system relies on rote learning, and does not develop adequate mastery of basic literacy, basic<br />
numeracy, and thinking and creative skills. (Thee Kian Wie, ‘The Technology and Indonesia’s<br />
industrial competitiveness’, Asian Development Bank, Mimeo). According to the recent<br />
UNESCO 2005, report gross enrolment ratio witnessed considerable improvement from 9.2 in<br />
1990 to 15 in 2000 as shown in Table 6 below.<br />
Table 5: Gross enrolment ratio, 2000/02<br />
Country<br />
Public expenditure<br />
on education (% of<br />
total government<br />
expenditure, 2003)<br />
Primary (% of<br />
relevant age group)<br />
Secondary (% of<br />
relevant age group)<br />
Tertiary (% of<br />
relevant age group)<br />
Male (% ages 15 and<br />
older)<br />
Indonesia 9.8 111 58 15 92 83<br />
Malaysia 20.0 95 70 27 92 85<br />
Philippines 14.0 112 82 31 93 93<br />
Thailand 28.3 98 83 37 95 91<br />
China - 116 67 13 95 87<br />
The Republic of Korea 13.1 104 90 85<br />
Table 6: Gross Enrolment Ratios 1970-2000<br />
1970 1980 1990 2000<br />
Secondary Education 16.1 29.0 44.0 57.0<br />
Higher Education 2.5 3.8 9.2 15.0<br />
Source: UNESCO (2005)<br />
Female (% ages 15<br />
and older)
Table 7: Main Universities in Indonesia<br />
Public Universities Private Universities<br />
Cenderawasih University, Jayapura<br />
University of Airlangga, Surabaya<br />
Institut Teknologi Bandung, Bandung<br />
Bogor Agricultural University<br />
Diponegoro University, Semarang<br />
Universitas Gadjah Mada, Yogyakarta<br />
University of Indonesia, Jakarta<br />
Padjadjaran University<br />
Universitas Sumatera Utara, Medan<br />
Sepuluh November Institute of Technology,<br />
Surabaya<br />
Sriwijaya University<br />
Universitas Islam Negeri<br />
Yogyakarta State University<br />
Source: http://en.wikipedia.org/wiki/List_of_universities_in_Indonesia<br />
Brawijaya University<br />
Institut Seni Indonesia, Yogyakarta Sekolah Tinggi<br />
Seni Indonesia Surakarta, Surakarta<br />
Universitas Mataram, Mataram, West Nusa<br />
Tenggara Universitas Udayana, Denpasar, Bali<br />
Atma Jaya University<br />
Bina Nusantara University<br />
Parahyangan Catholic University<br />
STT Telkom, Bandung<br />
Tarumanagara University<br />
Trisakti University<br />
Pelita Harapan University<br />
Islam Indonesia University<br />
Petra Christian University, Surabaya<br />
Kristen Satya Wacana University, Salatiga<br />
3. Indonesia’s Main Science Institutions<br />
As noted earlier, Indonesia remains behind many Asian countries in several important<br />
aspects. One important indicator, which shows low importance and national effort in R&D and<br />
S&T, is the low level of spending for R&D, which was less than 0.2 percent of GDP during<br />
2000-02. This level of funding for R&D is much lower than several South Asian and South<br />
East countries. Public spending on education was also low by Asian standards, despite the<br />
rapid expansion of the educational system.<br />
The State Ministry for Research and Technology has the responsibility for coordinating R&D<br />
policy in Indonesia but has little control over the allocation of research expenditure. The<br />
Ministry operates a number of competitive grants and other programs for funding research,<br />
especially for universities. Budgets for government research institutions are allocated either<br />
through Ministries or directly through non-department agencies. The most important nondepartment<br />
research institutions include the Agency for Assessment and Application of<br />
Technology (BPPT) for industrial technology, the Indonesian Institute of Sciences (LIPI) for<br />
basic sciences, the Central Statistics Agency (BPS), the National Nuclear Energy Agency<br />
(BADAN), and the National Institute for Aeronautics and Space (LAPAN). Nevertheless,<br />
agriculture remains the highest priority for government-supported research. IAARD in the<br />
Ministry of Agriculture is the largest government research agency in Indonesia with over 3,000<br />
researchers (Table 8). Together with IPARD (estate crops), FORDA (forestry) and the Centre<br />
for Fisheries R&D, agriculture receives by far the largest allocation of research staff by<br />
government research institutions. Table 8 lists Indonesia’s main science agencies, their fields<br />
of activity and research staff in the respective institutions. As can be seen agriculture and<br />
related research constitutes the predominant segment of the national S&T effort. As can be<br />
seen from the table below, Indonesia maintains two frontier based R&D institutions, namely<br />
Aerospace and Nuclear related research that both constitute 1800 full time researchers.
Table 8: Major government research institutions in Indonesia 1995-2000<br />
Name of Research Institution Fields of activity Research staff*<br />
Indonesia Agency for Agricultural Research and<br />
Development (IAARD)<br />
Agricultural crops and<br />
livestock<br />
3063<br />
Central Statistics Agency (BPS) Statistics 1343<br />
Agency for Assessment and Application of Technology<br />
(BPPT)<br />
Industrial Technologies 2074<br />
Indonesian Institute of Sciences (LIPI) Basic sciences 1692<br />
National Nuclear Energy Agency (BADAN) Nuclear Energy 1314<br />
National Institute of Aeronautics and Space (LAPAN) Aeronautics and space 487<br />
Forestry Research and Development Agency<br />
(FORDA)<br />
Indonesian Planters Association for Research and<br />
Development (IPARD)<br />
Centre for Oil and Gas Technology Research and<br />
Development<br />
Agency for Trade and Industry Research and<br />
Development<br />
Centre for Fisheries Research and Development 308<br />
National Coordination Agency for Survey and Mapping<br />
(BAKOSURTANAL)<br />
*Research staff includes those with University degree (B.Sc., M.Sc., or Ph.D.). Data are from 1995-2000.Sources:<br />
RISTEK (1996, 2002); IAARD (Statistik Penelitian Pertanian: Sumberdaya, Program dan Hasil Penelitian, 2000).<br />
4. Indonesia’s Agriculture Research<br />
In Indonesia, the central government is the primary source of funds for agricultural research.<br />
The international agencies and donor institutions played a major part in developing<br />
agricultural research in Indonesia, especially during the 1980s and early 1990s. This was the<br />
period when Indonesia’s capacity in agricultural research was established. IAARD is the<br />
primary body responsible for conducting and coordinating crop and livestock research in the<br />
country. Research institutes for estate commodities are managed by the Indonesian Planters<br />
Association for Research and Development (IPARD). IPARD, though largely autonomous and<br />
self-financed, is nominally under the guidance of IAARD. Forestry and fisheries research were<br />
separated from IAARD when the Ministry of Forestry and Ministry of Marine Affairs and<br />
Fisheries were created. The principal role of universities in agricultural research has been to<br />
train the scientific and technical personnel employed in government research institutes and<br />
the private sector.<br />
International agricultural research centres play an important role in Indonesia’s agricultural<br />
research system. There are a number of international research agencies conducting research<br />
in Indonesia. These are the Centre for International Forestry Research (CIFOR) and the SE<br />
Asia regional offices of the International Centre for Research on Agro-Forestry (ICRAF) and<br />
the International Potato Centre (CIP). The UN ESCAP CGPRT Centre, which conducts<br />
486<br />
429<br />
343<br />
328<br />
239
socioeconomic research on secondary food crops, and the ASEAN-funded South East Asia<br />
Regional Centre for Tropical Biology (BIOTROP) are also located in Indonesia. IAARD has<br />
cooperative research arrangements with several other international agricultural research<br />
centres as well (including AVRDC, CIMMYT, ILRI, and IRRI) and agricultural research<br />
institutes in Japan, Europe, North America, and Australia. IAARD established a semiautonomous<br />
foundation in 1999, the Intellectual Property and Technology Transfer<br />
Management Office (IPTTMO), to help commercialize IAARD innovations. This office has<br />
responsibility for patenting and licensing IAARD innovations to private firms.<br />
5. Industry and High Technology<br />
Although Indonesia's rapid industrial growth and transformation during the past three decades<br />
was undoubtedly accompanied by technological upgrading, particularly since the mid-1980s,<br />
the development of Indonesia's industrial technological capabilities (ITCs) has lagged behind<br />
that of other Asian neighbours, particularly the Republic of Korea and China. These low ITCs<br />
are, amongst others, reflected by the low percentage of high technology exports of<br />
Indonesia’s manufactured exports, as compared to those of the other East Asian countries<br />
(Table 9)<br />
Table 9: The amount and percentage of high technology exports of selected East<br />
Asian countries, 2003<br />
Country High-technology exports (millions<br />
of US$)<br />
Indonesia 4580 14<br />
Malaysia 47042 58<br />
Singapore 71421 59<br />
Thailand 18202 30<br />
China 107543 27<br />
Percentage of manufactured exports<br />
Source: World Bank: World Development Indicators, 2005, table 5.12, pp. 314-8.<br />
Note: High technology exports are products with high R & D intensity, as in aerospace, computers, pharmaceuticals,<br />
and scientific instruments.<br />
5.1 Aircraft Industry<br />
Under the leadership of the then minister of state for research and technology,<br />
Bacharuddin J. Habibie, the government attempted to move into aeronautics with foreign<br />
technological assistance in the 1970s. The Archipelago Aircraft Industry (IPTN) was<br />
established in 1976 to assemble aircraft under license from Construcción Aeronauticas of<br />
Spain, and helicopters under license from Aerospatiale of France and Messerschmitt of<br />
Germany. In 1979, IPTN designed and produced a 35 passenger aircraft (CN-235) with the<br />
Spanish partner. This plane was produced from 1986 when IPTN had delivered 194 aircraft,<br />
almost entirely to domestic buyers. In 1994, IPTN rolled out its first independently designed<br />
aircraft, a 50 passenger commuter aircraft (N250) (Soedarsono et al 1998). IPTN is valued at<br />
US$3 billion in 1998 and among its 15,000 employees about 2,000 were university graduates.<br />
(http://countrystudies.us/indonesia/71.htm & U.S. Library of Congress)
5.2 Biotechnology in Indonesia<br />
Modern biotechnology in Indonesia was institutionalised in October 1994 with the<br />
establishment of the Biotechnology Consortium (IBC). The aim of IBC is to actively engage in<br />
mastering, developing and making use of the benefits of biotechnology for the people, country<br />
and environment conservation. These activities are conducted by building up:<br />
• promoting cooperation among government and private institutions working in the field<br />
of biotechnology,<br />
• communication and synergistic cooperation with foreign institutions in the field of<br />
biotechnology which are related, and<br />
• assisting government in developing of sectors that relate to biotechnology.<br />
At present, more than 34 institutions belong to the government and private sector working in<br />
the field of biotechnology. (www.binasia.net/binasiadownload/downloadFile.asp?).In 2005, the<br />
country hosted the BINASIA-Indonesia National Workshop to promote active participation of<br />
biotechnology-stakeholders in the Network and international cooperation among participating<br />
countries. One of the objectives of this workshop was to deliberate the status of<br />
biotechnological developments and the national priority areas of Indonesia. However,<br />
although the country is working in the area of biotechnology but a government policy on this is<br />
yet to be issued.<br />
Table 10: S&T Publications from the Web of Science (SCI)<br />
1998 1999 2000 2001 2002 2003 2004 2005<br />
Bangladesh 324 359 346 389 423 471 430 501<br />
PR China 18833 23398 29004 33206 38469 46900 47306 56,524<br />
India 16037 17104 15983 17501 18525 20803 20830 21,164<br />
Indonesia 342 381 422 486 395 489 455 560<br />
Japan 68585 70435 69773 70215 71207 78046 69433 66,411<br />
Korea 10458 11894 13200 15519 16642 20529 21939 23,004<br />
Malaysia 798 869 814 922 934 1171 1254 1,586<br />
Mongolia 34 38 45 39 41 105 97 54<br />
Pakistan 601 577 596 531 691 763 903 1,060<br />
Philippines 311 344 351 315 410 440 424 486<br />
Singapore 2490 3046 3392 3802 4238 4846 5109 5,419<br />
Sri Lanka 124 168 167 157 176 264 226 290<br />
Taiwan 8745 9152 9346 10780 11011 12675 13146 14,057<br />
Thailand 935 1043 1185 1331 1591 2048 2047 2,543<br />
Vietnam 239 249 322 356 346 497 412 573<br />
Total 128856 139057 144946 155549 165099 190047 184011 196,237
6. Concluding Remarks<br />
Indonesia witnessed a number of crises during the last decade. First the Asian financial crises<br />
of 1990s and then the Tsunami and a number of other natural disasters affected the economy<br />
in a number of ways. To some extent, these compounding problems diverted the attention of<br />
government away from the growing needs and demands of the R&D system.<br />
The current investment of around 0.2% of GDP on R&D is very inadequate to meet the<br />
objectives and challenges outlined in the government’s S&T policy, particularly those<br />
concerning the new technologies. In a relative sense, much of Indonesian strength in<br />
innovation is in the agriculture and related areas of research. In a situation of low levels of<br />
R&D investment and efforts during the last three decades, over emphasis on developing high<br />
technology and high capital-intensive sectors such as nuclear and aviation industries has<br />
further compounded the S&T and R&D problems for Indonesia. This resulted in the spreading<br />
of thin financial resources to a number of R&D projects without having to witness any<br />
reasonable degree of success and output. As can be seen from Table 10, compared to other<br />
South East Asian neighbours, Indonesian R&D output as measured in research papers is<br />
quite low for the period 1998 and 2005. Indonesian output is comparable to countries such as<br />
Bangladesh, Vietnam and Sri Lanka. Secondly, one sector which has showed some<br />
promising results, has been the manufacturing sector. Given the growing challenges of new<br />
technologies and the importance of ICT and BT, the government needs to increase the<br />
R&D/GDP ratio to at least three times to 0.6% in the coming three to five years. Government<br />
need to evolve institutional innovations in S&T policies to mobilize private sector industry to<br />
invest greater sums in R&D.<br />
7. References<br />
Soedarsono, A.A. L.M.Susan and Yildirim Omurtag, (1998), ‘Productivity Improvement at a<br />
High-Tech State-Owned Industry – An Indonesian Case Study of Employee<br />
Motivation’, IEEE Transactions on Engineering Management, 45(4).<br />
Aiman, S. Lukman Hakim and Manaek Simamora (2005), ‘National Innovation System of<br />
Indonesia: A Journey and Challenges’ Paper presented at the Seminar at AEGIS,<br />
UWS, Sydney, 2005.