Other considerations (Bank of Indonesia, Monetary, Banking and Quarterly Payment System IV/2003), such as when the economic condition of Indonesia was in a slump in the years 1997-1999, at a time when economic growth recorded a decline in terms of development milestones (-4.43%), clearly accompanied with the weakening of capital contribution (-0.05%), and at the same time technological contribution drastically dropped to -9.66%.

Even before Indonesia’s development  was generated on financial support, we actually had the “muscle power” to solely rely on in facing our journey of development. Though, knowledge of economics dictates that even when capital is not dominant, technology will almost automatically contribute to development: a lesson still rare o the list of Indonesia’s experiences in development. The least we can learn from the 1997-1999 crisis era is that the technology previously used in the Old Order and New Order eras was not properly integrated into the industrial sector; importation of technology was not followed up with its adaptation. This can be seen from the fact that the steady downfall of the economy could actually be prevented with proper management of science and technology in the production sector. Independent technology could strengthen the production sector.

With the passing of time, the acceleration of our economy has and will be even more burdened with the need to equate itself with the performance rhythm of the increasingly efficient economies of developed/industrial country groups that are  being backed up by the latest developments in technology. In the need to reassert its presence, Indonesia may be tempted to look back at the success of the New Order that fit the capitalist bill perfectly. And when such logic is matched with the country’s financial condition, which is insufficient to achieve any  a complete industrial unit independently (as was the case in the plan to build airplanes), this would mean the tendency to increase consumers trust through the purchase of foreign technological products as a more instant solution than actually developing our own technological sector, once again trapping us in the  never ending vicious circle of chasing inefficient hi-tech solutions.

Meanwhile, the ever vibrant display of globalization becomes even more prominent as a differential situational beacon for the present generation. The challenge of climate change has forcibly given birth to new demands for an engineered domain for creating technology products that are minimally “symbiotic commercialism” or at least do not distort the earth’s ecology. In a nutshell, technology worth using in this era of globalization must not only be cutting edge and in accordance with economics, but also nature friendly. Zero pollution implies the rule of good engineering: at a level of complexity incomparable to that of the past.

One of the  unique aspects of the notes on what happened in the previous eras is the fact that academics had achieved proficiency in science and technology,  even with minimal funds. Blessed with budget allocations from foreign funds, Indonesia was able to provide schooling for its citizens under the past regimes.  Dreams of a higher education persist among the people of Indonesia even now.

On the other hand, the favoritism toward the sectoral style of production groups has decreased the performance value of academicians in the eyes of society. As a result, academicians do not get to play a part in the production sector in general, and this contributes to the sequential lack of appreciation towards them among business circles. The strength of the academicians, who could contribute completely new and fresh production techniques in the processing of commodities,, cannot be clearly seen in the history of Indonesia, and so Indonesia experiences a drought of technological innovation. This fertile field has been burned up in  the prejudiced view that the Department of Research and Development is very cost heavy and inefficient. As a conclusion, Indonesia stays stuck in the old habit of failing to master the technology used daily by its citizens or in its production activities. We don’t know how to create an inclusive production chain, and still tend to work against ourselves as we remain blind to the true potential of technology.

The break in the production process chain not only exacerbates unemployment, it also causes inefficiency in the production sector. Not a very good tale to tell about a country’s condition in this era of  globalization. For said reasons, the country’s Department of Research and Technology is now intensively attempting to breathe life into collaboration among academics and industrialists. The tripartite connection is popularly known as Academics-Business-Government, or ABG.

By means of ABG, the recipe for accretion of middle value (innovation) through an independent production expense structure to increase competition may be achieved with active synchronization of these three development elements. Once it becomes clear that a complete production chain of activity is impossible to carry through, resulting in dependence on the importation of goods, then the contribution of academics in supplying general technical guidance (step by step details of general production methods), may serve to medicate, with carefully measured dosages adjusted on the basis of field work, the “foreign goods addiction”. If permitted to lend a hand the academics could play a key role in developing and launching  “originally Indonesian” products. From here, while facing demands to develop a production sector for Indonesia that is both independent and highly competitive in this era of globalization, business groups should not have to feel burdened by overwhelming responsibility. Because, a big part of the burden could actually be shouldered by the academics, with the ensuring of smooth cooperation between these two being the government’s responsibility.

Of course, the government has taken solid steps toward ensuring that the ABG relations may work in reality. For example Regulation No. 20/2005 concerning the Shift of Intellectual Technology and the Results of Research and Development from the Tertiary Level of Education and Department of Research and Development. This government ordinance has allowed academics to be more flexible in utilizing funds provided in order to establish and run a working relationship with the business groups. Foreign researchers, who may be working in Indonesia without benefiting the country financially, are restricted in terms of leeway by Regulation No. 41/2006. This ordinance guarantees research cooperation with overseas countries and is arranged in such a way as to always make equitable use of Indonesia’s researchers, ensuring their right to scientific patents and publications.

Another government ordinance, Regulation No. 35/2007 on Allocation of a Portion of Corporate Profit to Increase Capability in  Engineering, Innovation and Technology, should become a favorite among the business groups in Indonesia, because it includes the promise of tax exemption (up to 100%!) for companies active in scientific and technological research and development.

 Apart from said policies and legislation, the government has also constructed facilities and infrastructure in order to support optimal relations among the academics and the business groups. The presence of institutions, such as the Business Innovation Centre (BIC) in Jakarta, which was the initiative of the government, is of course encouraging in the effort to synchronize the three ABG elements.

The initiative behind the birth of BIC carries the mission of forming a bridge from the A element to the B element and from B to G and connecting G with A. Innovation is the key to the appropriate steps that BIC is taking. Not only innovation for the products and processes, but innovation in transforming the people of Indonesia into wanting  and being able to see, and able to support each other toward creating human resource plus points in the work of managing the wealth of resources belong to Indonesia, which is also known as the emerald of the equator.

True enough, science and technology currently remains an abstract expression of nationalism, an irrational motivation in this globalization era. Instead, science and technology should be linked to regulations on active  production toward preventing further economic colonization y outsiders. The ABG pattern is a means for the nation’s youths to prove their love for the country in the form of establishing trust within the many racial elements, until cooperation is built. The integral pattern of ABG focuses on differential responsibility and  inter-group adaptation able to explore the work function of every faction, an the development of an inclusive attitude and value generalization as the solution toward including Indonesia in the group of productive nations..

The right to grow and develop should be monitored throughout the whole country. Because, Indonesia’s independence, which aspires for social justice for its people, is clearly not only aimed at a small community group; rather it is to be understood by the country’s citizens must make Indonesia a solid sovereign nation, just and prosperous. All able, all proud!

Kusmayanto Kadiman
MINISTER OF RESEARCH AND TECHNOLOGY
OF THE REPUBLIC OF INDONESIA