The government can try to develop its science, technology and innovation by focusing on three main problems: a lack of digital infrastructure, low quality human resources and lack of coordination between the private sector, government and academia. By focusing on these primary issues, it can pay more attention to specific efforts and solutions.

Building more information and communications technology facilities and internet infrastructure, especially in remote and rural areas, is a great idea. Technology and connectivity are the enablers of innovation.

The Palapa Ring project, scheduled to be completed in June, is a public-private partnership scheme that costs Rp 20.9 trillion (US$1.48 billion) and will cover 514 cities and regencies with 57,087 kilometers of fiber optic cable across the country. This is a great policy, especially as a maritime country where connectivity is key. Such a digital infrastructure project will foster connectivity between islands as well as reduce geographical barriers.

Another required facility is an innovation center, where original ideas can turn into real action. The government should promote more incubation places beyond the capital. Jakarta’s innovation center, the Jakarta Creative Hub, is a unique pilot project with three main functions: providing workshops, functioning as offices and as a coworking space. Such a facility needs to be developed in more cities and provinces.

Building infrastructure is good, but not enough. Human capital remains a significant weakness, although expenditure on education has increased steadily over the last five years. In the PISA ranking, Indonesia is still behind neighboring countries such as Thailand, Vietnam and Singapore. Based on the Human Development Index, Indonesia has a score of 0.53.

Compared to some middle-income countries, Indonesia is among the lowest as indicated by its persistently low position in world rankings of the higher education system. Every year, the government allots 20 percent of the national budget to education. This is a huge amount of money. The government should improve the quality of spending related to education and human capital development. Otherwise, Indonesia will stay behind other countries.

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