Private sector expected to take over research funding
Private sector expected to take over research funding
JAKARTA (JP): As the expected transfer of technology from foreign countries has not occurred, the government expects the private sector to provide most of the funds for research and development activities, an official says.
Currently, the government provides an estimated 80 percent of the total funds required for research activities and the remaining 20 percent by its "partner", the private sector.
"Ideally, the proportion should be reversed. The government should function only as a facilitator and contribute only the remaining 20 percent," Mohammad Ridwan, an expert staff of the state ministry for research and technology, said Wednesday.
That "ideal" proportion, according to Ridwan, has been practiced in industrialized countries, where research is the key to their advancement.
He also said the government would continue to encourage the private sector to invest in research and development programs by providing incentives, like tax cuts, to companies carrying out scientific research at their own expense.
"The government will no longer play a dominant role in financing research activities because the private sector has been strong enough to take it over," Ridwan said.
Indonesia's budget for research activities represents only 0.3 percent of its Gross Domestic Product and 80 percent of it comes from the government sector, he said.
For the 1995/96 fiscal year, the government has set aside Rp 700 billion (about US$315 million) for research projects. "This is far from adequate," he said.
The state ministry will review the government policy on research and development activities during its national workshop in Serpong, about 30 kilometers west of here, next month.
The meeting will be attended by representatives of various government agencies, such as the Agency for Research and Application of Technology, the Indonesian Institute of Sciences, the Central Bureau of Statistics, and National Atomic Agency as well as members of industry.
The participants will also seek to raise the proportion of research and development funds against the Gross Domestic Product, Ridwan said.
Ridwan also acknowledged that the transfer of technology to Indonesia has not occurred as expected because foreign investors are generally reluctant to share their know-how.
"Besides, no government agency has been appointed to handle the transfer of technology," he said.
He said thousands of foreign investors have opened businesses in numerous sectors over the last 20 years but the transfer of technology has been very slow.
"The laws require that foreign investors transfer their technology to their domestic counterparts within 10 to 15 years but things have not proceeded as expected," he said. (rms)