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.

The government can learn from other countries in improving human capital. In Malaysia, for example, the government trains a significant number of researchers and technicians, ensuring that long-term research grant schemes and E-science funds effectively target industry-related innovations. The Malaysian government also tries to strengthen collaboration between public research institutes, universities and industry through long-term plans.

It also integrates basic research with commercialization. Meanwhile, in Brazil, a growing, qualified human resource base is a primary engine for their national innovation system. Some universities and research institutions in Brazil are internationally recognized. Brazil also hosts several internationally recognized research institutions in agricultural research (Embrapa), health (FioCruz) and space research (the Aerospace Technical Center).

Strengthening coordination between the private sector, government and academia can be another important option for the government. The implementation of the triple helix concept seems to be a good solution and it has never really been implemented in the country. There are five essential keywords to improve coordination: innovation, productivity, research and development, value-added, and industry and economy.

The government must involve the private sector and universities in this issue. To increase universities’ involvement, the government should increase the number of patents by providing more incentives for scientists. The government can organize national innovation competitions. China, for example, has a competition to encourage scientists to produce more patents. The government can facilitate how the private sector can use the research from the scientists who win the competition. In this way, the government helps scientists market their research and also helps the private sector connect with the academia.

Enhancing cooperation, especially with Southeast Asian countries, should also be of consideration. As the leader of the region, Indonesia can lead an initiative that facilitates scientists from ASEAN countries to work together and publish international papers. Indonesia can also work together with ASEAN to improve its universities. Lecturer exchange programs can be a good option. Another option is to open a branch of some best universities in the ASEAN capitals.

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Dwinanda Ardhi Swasono is a masters student at the Sanford School of Public Policy, Duke University and Agil Wibowo is an assistant to the finance minister’s advisor on organization, bureaucracy and information technology. Both work for the Finance Ministry. The above views expressed are their own.

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