Economist says high-tech projects yield few benefits

JAKARTA (JP): An observer has recommended the country shift its approach to technology development to focus more on small industries over the long-standing preference for high-tech projects with intensive capital investment.

Economist Hal Hill, who conducted research in Indonesia and edited the book Indonesia's Technological Challenges launched yesterday, said the country had treated high-tech projects as advantageous investments despite their limited rewards.

"Those high cost projects have yet to contribute to the life of small industries or the greater community at all," he said after a discussion held at the Center for Strategic and International Studies.

Hill referred to projects of state-owned technology and research institutions like Bandung-based aircraft manufacturer PT IPTN, the Indonesian Institute of Sciences (LIPI) and the Agency for the Assessment and Application of Technology (BPPT).

"Technology to the majority of people is easily referred as high-tech products and intensive capital investment. But, the sad part is that it has little contribution to small industries."

Technology was supposed to be a creative human product which could be used by many aspects and sectors of life, Hill said.

He added that small industries which had managed to survive without any technological assistance from the government should be given priority for promotion.

Hill cited a small garment business in Bali which, with limited access to technology, marketed its products directly to tourists or foreign brokers who happened to be in Bali and wanted to make additional money from their trip.

"There will be a transfer of knowledge and it will be a very strong tie as producer, buyer and middlemen are engaged in the practice."

Despite its small size, the garment business established a strong network with its business counterparts in Australia.

"Government should see the effects of that simple pattern and immediately provide assistance produced by proper technology."

Hill said the government could learn lessons from the modest businesses and the technology applied within them to find a solution to the monetary crisis.

"But I'm afraid this modest opinion is not in line with the big frame from (President B.J.) Habibie, (Minister of Industry and Trade) Rahardi Ramelan and even (Minister of Cooperatives) Adi Sasono as it's too simple," Hill said. (emf)