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.
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