Wed, 28 Dec 1994

Research council touts projects to private sector

JAKARTA (JP): The National Research Council has began touting projects for industrial application to private companies, hoping those interested will pay part of the research costs.

The research projects will be strictly for commercial purposes with a view to solving various industrial problems, including enhancing the competitive edge of domestic products, the council's deputy chairman, Samaun Samadikun, announced on Monday.

The council is inviting the industrial world to participate in the program, known by its Indonesian acronym RUK, by partly financing some of the projects, said Samaun, who is also chairman of the Indonesian Institute of Sciences.

He said the government is prepared to pay between 20 percent and 80 percent of the total costs, setting a ceiling of Rp 2 billion for each project. The rest of the financial burden is expected to be borne by private companies, the Antara news agency reported.

He added that the financial arrangement could still be negotiated because it relates to property rights and profit sharing. Of course, the bigger the equity of the private sector, the bigger its share of the profit will be.

"Given that the research program is strictly for commercial purposes, then its success is to be judged by the return it gives to the industry which financed the project," he added.

The program will be launched in the 1995/1996 fiscal year which begins on April 1.

This will be a departure from the present program of the National Research Council which emphasizes scientific research projects that often have no commercial application.

The new program, Samaun said, is intended to build a bridge between the world of research and the industrial sector.

He acknowledged that so far the industrial world appears somewhat reluctant to take up the council's offer.

"We should know for sure about their response by the end of January," he said, adding that the council has received queries about the new program from 60 industrial companies.

The council has set a Jan. 10 deadline for research project proposals under the program.

Science institute deputy chairman Aprilani Sugiarto said that the Energy and Natural Resources Section which he heads had already received two project proposals -- one on the use of microriza and rizobium in enriching soil came from two timber companies; and another on the use of dust particles for construction material came from the state electricity company PLN, LIP and an Australian company.

Aprilani said there is always a risk in any research project.

"But the companies have to be willing to take the risk." (emb)