2013年-世界发展银行全球_Indonesia___Research_and_Development_Financing_72页_1mb

Summary of Indonesia: Research & Development Financing

Core Content

This report provides an analysis of Indonesia's research and development (R&D) financing system, focusing on its current performance, policy framework, and challenges. It highlights the importance of R&D in driving economic growth, innovation, and poverty reduction, and identifies the need for reform in the institutional and financial management of R&D activities in the country.

Main Points

• Economic Growth and R&D: Indonesia has experienced sustained economic growth between 2002 and 2010, ranging from 4.5% to 6% annually. However, R&D investment remains low, with Indonesia spending only 0.08% of GDP on R&D in 2009, far below regional peers like China (1.46%) and even below some other developing countries.

• R&D Performance: Indonesia's R&D output is weak in international comparisons. In 2012, it ranked 108th in the World Bank's Knowledge Economy Index. The country lags in scientific and technical journal publications, patent filings, and high-technology exports. For instance, in 2009, Indonesia published only 262 papers, compared to Malaysia's 1,351 and Singapore's 4,187. Patent activity is also low, with only 1.25 patents per million population in 2006.

• R&D Funding Sources: Around 75% of R&D funding in Indonesia comes from the government, while the private sector contributes minimally. Public funding is distributed across various institutions, including 22 government ministries (BALITBANG) and seven independent research institutes (LPNK). The LPNK, although having more staff than BALITBANG, receive less funding and face challenges in flexibility and retention of talent.

• Government R&D Policy: The government has set ambitious goals for increasing R&D investment to 1% of GDP by 2014 and 3% by 2025. The National Long-Term Development Plan (2005–2025) identifies key areas for R&D, including food security, energy, transportation, ICT, defense, health, and advanced materials. The Masterplan for the Acceleration and Expansion of Indonesian Economic Development (2011–2025) emphasizes the need for increased R&D funding.

• Institutional and Management Issues: The current R&D financing system is characterized by a lack of competitive mechanisms, single-year budgeting, and delayed disbursement of funds. These issues hinder the planning and execution of long-term research projects. Additionally, the distribution of resources is uneven, with public universities receiving a significant share of funding, but the system is not well-aligned with the needs of the R&D sector.

• Human Resource Constraints: Indonesia's R&D workforce is limited, with only 89.6 researchers per million people in 2009, compared to 4,000–5,000 in developed countries. The LPNK have a higher number of staff but a lower proportion of PhD holders, which affects the quality and depth of research. There is a need for strengthening postgraduate programs and increasing international collaboration to build a better R&D human resource base.

• Opportunities for Growth: The report identifies several opportunities for improving R&D financing, including the introduction of competitive funding mechanisms, peer review systems, and matching funds to leverage private investment. It also highlights the potential of the ASEAN-China Free Trade Agreement to boost economic growth through better resource allocation.

• Need for Reform: To improve the effectiveness of R&D financing, the report calls for institutional reforms, including greater autonomy and accountability for public research institutions, and the development of a more flexible and competitive funding system. These reforms are essential to ensure that R&D efforts contribute to economic and social development and help reduce poverty.

Key Information

• R&D Spending: In 2009, Indonesia spent 0.08% of GDP on R&D, which is much lower than its regional peers.
• Patent Activity: Indonesia's patent filings grew from 0.74 to 1.25 per million population between 2000 and 2006, but this is still low compared to countries like Malaysia, China, and Thailand.
• Public Universities: They receive the most diversified R&D funding, with a significant portion coming from the Directorate for Higher Education, other central government agencies, and domestic research contracts.
• Policy Goals: The government aims to increase R&D investment to 3% of GDP by 2025 through a mix of state, state-owned, and private funding.
• Institutional Challenges: The current system lacks competitiveness, flexibility, and efficient resource allocation. Single-year budgeting and delayed fund disbursement are major constraints.
• Human Capacity: The R&D sector in Indonesia is constrained by a lack of qualified personnel, with a low proportion of PhD holders and a high number of bachelor's degree holders.
• Social Impact: R&D in social sciences is crucial for supporting evidence-based public policy and ensuring that economic growth benefits all segments of the population.

Conclusion

Indonesia's R&D sector is underfunded and inefficient, which limits its ability to drive innovation and economic growth. While the government has set ambitious goals, the current institutional and financial framework is not well-suited to achieving them. Reforms in budgeting, funding mechanisms, and human resource development are necessary to improve the effectiveness of R&D financing and support Indonesia's long-term development objectives.