Ministers urge businesses to use local technology

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.