Ministers urge businesses to use local technology
Abdul Khalik, The Jakarta Post, Jakarta
Four ministers teamed up on Wednesday to encourage businesspeople to apply technology created by local researchers, launching a joint exhibition of over 100 proven research outcomes from government agencies, universities and private institutions.
The Research Commercialization Forum marks the government's first major effort since the 1998 economic crisis to bridge a gap between local researchers and businessmen to lessen the country's dependence on imported technology.
At the event, 30 researchers and owners of 30 small- and medium-scale businesses signed a memorandum of understanding, showing the seriousness of both sides in commercializing local research results. Other researchers participating in the forum will exhibit their innovations until March 5 at the Semanggi Expo building, South Jakarta.
Minister of Trade and Industry Rini M.S. Soewandi, State Minister of Research and Technology Hatta Rajasa, Minister of Agriculture Bungaran Saragih and Minister of Fisheries and Maritime Affairs Rokhmin Dahuri, as well as Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Mohamad Hidayat, backed the promotional initiative for local technology.
"We realize that technology plays a decisive role in enhancing the nation's competitiveness in the global era. Without our own innovations in technology, we will be left behind as developed countries use advanced technology to benefit from us. This event is one answer to the problem," said Hatta.
He added that local researchers had created technology that could replace imported technology, but most lacked the opportunity to develop their technology further, due to the absence of support from the business community.
"For example, our researchers are now able to create devices for weather forecasting, which used to be imported," said Hatta.
Rokhmin said local researchers could also produce sensors to locate large schools of fish.
Meanwhile, Rini criticized those businesspeople who called themselves industrialists, but only assembled imported technology.
"I'm sorry to say this, but these people are not industrialists. Those who produce foreign branded shoes like Reebok or Nike use materials from abroad, because they don't have the technology to produce the materials here," she said.
Rini said the ministry had taken steps to follow up the commitment to local researchers by holding similar exhibitions biannually and raising working capital for small- and medium- scale businesses wanting to use the technology.
"We will discuss with the finance minister as to how to help companies using local, innovative technology to secure bank loans as well as venture capital. We will also continue to coordinate the research and technology agenda with other departments," she said.
Currently, support for technological research in the country is mainly provided by private and foreign institutions. In December, Germany helped Indonesian researchers by providing technical assistance and access to German industries, while Bank Muamalat and Bank Bumi Putera pledged this year a Rp 70 billion (US$8.33 million) loan facility to help technology businesses.
According to Joseph Prokopenko, who presented a paper to the International Labor Organization, a country's competitiveness in the global economy is heavily dependent on its technological development.
In 1997, the U.S. ranked first in terms of a country's global competitiveness, followed by Singapore, while Indonesia ranked 39th among more than 100 countries. After 1998, Indonesia dropped in rank to below 90, mainly due to a decline in the field of technological research.