State budget ready to support science-based urban renewal: Ministry

During a Focus Group Discussion on the Jakarta Education and Innovation Center plan, Nazara reaffirmed the government’s commitment to advancing the knowledge and innovation-based transformation of the national economy using state budget resources.

“Indonesia needs to shift from relying on perspiration (physical hard work) to innovation,” he said in a written statement issued here on Wednesday.

He outlined the central government’s long-term commitment to supporting education and research through the constitutional mandate requiring the allocation of 20 percent of the state budget to education from 2009 through 2026.

The total allocation has reached Rp7,667.3 trillion (around US$424.45 billion). Of that amount, the government has built up the Education Endowment Fund, managed by the Indonesia Endowment Fund for Education (LPDP), with its accumulated value currently standing at around Rp195 trillion (US$10.79 billion).

To address Indonesia’s low spending on research and development (R&D), the government has introduced a Super Tax Deduction incentive.

The incentive allows companies in Indonesia to claim a tax deduction of up to 300 percent of total costs incurred for R&D activities, whether conducted independently or in collaboration with research institutions.

Regarding the implementation of the Jakarta Education and Innovation Center, the deputy minister encouraged close collaboration between the central government and the Jakarta Provincial Government.

The central government, through its relevant technical ministries, will provide support through programs and policies, while the Jakarta Provincial Government will provide space, land, and infrastructure.

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Translator: Imamatul, Kenzu