Finance Ministry Pledges State Budget Support for Knowledge-Based Urban Renewal
Indonesia needs to shift from relying on perspiration (physical hard work) towards innovation.
Jakarta (ANTARA) - Deputy Finance Minister Suahasil Nazara has assured that the State Revenue and Expenditure Budget (APBN) is ready to serve as the main catalyst for knowledge-based urban regeneration, one example being the Jakarta Education and Innovation Centre initiative.
During a focus group discussion (FGD) on the design of the Jakarta Education and Innovation Centre, the Deputy Minister emphasised the government’s commitment to steering the national economic transformation towards knowledge and innovation through the use of the state budget.
“Indonesia needs to shift from previously relying on perspiration (physical hard work) towards innovation,” Suahasil said in a written statement in Jakarta on Wednesday.
Deputy Minister Suahasil also outlined the central government’s long-term commitment to supporting the education and research sectors through the constitutional obligation to allocate 20 per cent of the budget to education from 2009 to 2026.
The total funds allocated have reached Rp7,667.3 trillion. From this allocation, the government has successfully built up the Education Endowment Fund (Sovereign Fund), managed by the Education Fund Management Institution (LPDP), with total accumulation currently reaching around Rp195 trillion.
To address still-low spending on research and development (R&D) in Indonesia, the government provides a tax incentive in the form of a Super Tax Deduction.
This incentive allows a gross income reduction of up to 300 per cent of the total costs of R&D activities carried out by companies in Indonesia, whether independently or in collaboration with research institutions.
Regarding the implementation of the Jakarta Education and Innovation Centre, the Deputy Minister encouraged close collaboration between the central government and the Jakarta Provincial Government.
Technical ministries of the central government will support the programme and policy side (software), whilst the Jakarta Provincial Government will provide space, land, and infrastructure (space and building).