Economist says high-tech projects yield few benefits
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)