1. Subtitle/other information
Title of Presentation
Innovative Innovation in:
Indonesia
STI Days, Bangkok, 21 Jan 2014
Session: Innovation in ASEAN
Dr. Rudie Trienes (KNAW-The Netherlands)
Florian Gruber (ZSI-Austria)
Ms. Tri Sundari (RISTEK-Indonesia)
Ms. Herlina Hadisetiawati (RISTEK-Indonesia)
EU-ASEAN S&T cooperation to jointly tackle societal challenges
Subtitle/other information

2. Agenda Context II. Innovative Innovation Support III. Conclusion
Key Indicators
Key Players
Legal Framework
Indonesia S&T Development Framework
Regional Innovation Clusters in 6 Economic Growth Centers
II. Innovative Innovation Support
- Best practices of funding scheme
- Strengths and Weaknesses
III. Conclusion

3. I. Context (Key Indicator)
Indonesia, the only ASEAN country to be selected as member of the G20
R&D Expenditure counts about 0.08% of GDP
Ranks 38th on the Global Competitiveness Index in
Ranks the 4th most populous country in the world
5. Demographic bonus

4. I. Context (Who is the key players)
Ministry of Finance
The National Development Planning Agency
National Innovation Committee (KIN)
The Indonesian Academy of Science (AIPI)

5. I. Context (Legal Framework)
The National Long Term development Plan sets the R&D priorities for
The medium-term five-year plans (RPJMNs)
National Research Agendas (NRAs)
National Strategic Policy on Science and Technology
Masterplan Accelaration and Expansion of Indonesia Economic Development (MP3EI)

6. Indonesian S&T Development Framework

7. Regional Innovation Clusters in 6 Economic Growth Centers
According to The Presidential Working Unit for Supervision and Management of Development (UKP4):
‘the focus has to be on gradual, incremental innovation to ensure that the local end-users will have
access to appropriate innovations, i.e. local SMEs using existing technology and adapting this to local conditions’.

8. II. Innovative innovation support
The dominant mode of STI funding in Indonesia is institution rather than
programme-based. Funding is usually provided in the form of direct institutional funding
rather than funding allocated via competitive programmes.
INSTRUMENTS
Strengthening NIS through strengthening:
1. S&T Institution;
2. S&T Resources;
3. S&T Networking
Research funding
Capacity building program (degree
& non- degree)
Entrepreneurship Programme for
Students in Universities
Co-operative Academic Education
(Co-op) with SMEs
IPR Support Programme
Dissemination Programme
Triple Helix Examples of Innovation
Clusters, Incubators, Centres of
Excellence
International cooperation
Supported by:
Ministries; Universities; Industries; Regional Governments; SMEs; Financial Agencies
From basic research to commercialization

9. Best Practices of Funding Scheme
Consortium Research (Universities; R&D Institutes; Industries)
- Vaccine Development
- Defense Technology
- Information and Communication Technology (CBI)
International Cooperation (private sector leaders, and research
partners internationally)
- Indonesia International Institute for Life-Sciences (I3L), research-based
educational institutions bioscience innovation (life sciences).
3. Corporate Social Responsibility
- Mandiri Young Technopreneur Awards (Mandiri Bank)

10. Strengths and Weaknesses
Indonesia has many potential natural resources.
Strong domestic market.
Having sufficient institution that role as key player of innovation.
Universities receive big support from the government on research activities.
There is impression to having widely collaborative research.
Indonesia’s government acknowledges the need both to strengthen
the private business sector and state-owned enterprises by implementing incentive
systems that reflect industrial needs.

11. Strengths and Weaknesses
Need to align regulations and policies conducive to the whole chain involved in
innovation (S&T, finance and tax systems, higher education, trade, social welfare)
in a coherent, transparent fashion.
2. Lack of coordination among ministries, universities under the authority of the Ministry
of Education, Non-departmental Government Institutes under the Ministry of Research
and Technology, Provincial R&D Agencies under the authority of the
Ministry of Internal affairs, etc.
3. R&D activities fail to be regarded as commercially viable proposals.
4. Royalty sharing procedure is not yet in place.

12. III. Conclusions
Indonesia needs to address a number of major challenges in setting up
a National Innovation System on the route to an innovation-driven national
economy.
Consortium scheme is considered as an effective way to improve the
collaboration between researches in universities, R&D institutes and industries.
Indonesia’s government also acknowledges the need both to strengthen the
private business sector and state-owned enterprises by implementing incentive
systems that reflect industrial needs, and to strengthen small and medium
innovative enterprises and start-ups by developing new products and providing
customized innovated technologies.
Indonesia’s government feels the need of a coherent, independent funding
mechanism.
More challenges in facing the ASEAN Community 2015.

13. Contact
Dr. Rudie Trienes (KNAW-The Netherlands) -
Florian Gruber (ZSI-Austria) -
Ms. Tri Sundari (RISTEK-Indonesia) –
Ms. Herlina Hadisetiawati (RISTEK-Indonesia) –
Thank you!
The final study will be available at:
in June 2014