TECHNOLOGY POLICY FOR THE NEXT FIVE YEARS
BY
RAHARDI RAMELAN
I. INTRODUCTION
1. In the State's Policy Guidelines (GBHN) 1993, it is mentioned that the objective of the national development in science and technology is: "To improve the capability to use, develop, and master science and technology by prioritizing the transfer of technology through change and innovation in technology supported by the development of the human resource, the development of means and infrastructure in research, and appropriate development and improvement of education in view of supporting the effort for strengthening, mastering, and developing industry to expedite the process of industrialization in order to achieve the formation of a progressive, independent, and wealthy Indonesian nation."
2. Therefore, the policy of the development of science and technology is as follows:
a. the development of science and technology is implemented by the Government as well as the society, including the academic and business circles, in view of accelerating the achievement of a solid and excellent nation;
b. the development of science and technology shall be supported by the capability to use, master, and develop production techniques, technology, applied sciences, and basic sciences proportionally based on a dynamic and effective relations among human resources development, development of mens and infrastructure of science and technology, implementation of research and development, as well as engineering and production of goods and services;
c. the mastery of science and technology shall be continually improved directed to promote the level and quality of life of the nation in harmony with its religious and high cultural values, the socio-cultural condition of the society, and the environment;
d. the institutional development of science and technology shall be improved to achieve higher levels of productivity, efficiency, and effectivity of research and development in the framework of the use and mastery of value-added and problem-solving technology for the development.
3. Actors and users of science and technology, especially industries, cooperatives, NGOs, universities, research and development institutions, and the Government should promote partnership in research, studies, as well as the development of innovative and efficient science and technology in order to face market competition in-country and overseas. This partnership does not only aim at supporting economic development, but also at supporting the acceleration of development in the regions as well as allevation of poverty.
4. The effort for partnership in the development of science and technology is influenced by the good quality of the human resource and the institutions which are responsive to trends, challenges, and opportunities appearing in the national development and the changes in the international world as well as the rapid development of science and technology. The effort for partnership is aimed at accelerating the process of technology transfer and progressive manufacturing using high as well as simple technology. Partnership in technology development can also be implemented through international cooperation taking into consideration the national interest. Thus, institutional development of science and technology is needed to enhance partnership in research which is efficient and effective for economic development and the welfare of the people.
5. The promotion and extension of partnership between the Government and the society in the development of science and technology win be the priority of the second twellty-five-year development, so that there win be a shift of role from the government to the society in the development and funding of science and technology. Extended partnership in science and technology development win increase the capability of the society in using the opportunity during second twellty-five-year development period. Therefore, the effort to use, develop and, master science and technology can be performed in an appropriate, accelerated, and careful as well as responsible manner so that the society is able to accelerate the development toward the achievement of an independent, developed, and prosperous nation.
II. THE RESULTS OF THE DEVELOPMENT OF SCIENCE AND TECHNOLOGY DURING THE FIRST FIVE-YEAR DEVELOPMENT
6. The development of science and technology during the first twellty-five-year development was implemented by the Government, private institutions, and universities in the fields of social sciences, humanities, health sciences, natural sciences, and engineering. Technology transformation was also conducted in a planned and directed manner through nine industrial vehicles, i.e. aeronautical industry, marine and shipping industry, ground-transportation industry, electronic and telecommunication industry, energy industry, engineering industry, agricultural tools and machines industry, defense and security industry, and other supporting industries. These research and technology transformation activities opened the way to the improvement of the capability of the human resource having the potential to use, develop, and master science and technology.
7. Besides, increase of quality and quantity of the human resource in the development of science and technology was achieved with the increase of number institutions of higher learning, school of polytechnics and other vocational schools. During the first twellty-five-year development, the number of public higher learning institutions was 51, while private higher learning institutions were 1,035. Degree student body increased from 156,000 at the beginning to 2.3 minion at the end of the first five-year development period. Diploma program student body had increased from 12,000 or around 3 % of the entire student body at the end of the second five-year development to 465,000 or around 20 % of the entire student body at the end of the fifth five-year plan. The number of diploma program graduates was approximately 51,000 comprising various specialties. The number of researchers in the different institutions also increased. The total number of researchers at an educational levels was around 29,000 at the end of the third five-year development and increased to around 68,000 at the end of the fifth five-year development.
8. In view of directing an research and technology activities five main programs of research and technology were established comprising problems related to basic human needs; natural resources, energy, and environment; industry; defense and security; social, economic, cultural, philosophical, legal and regulation issues.
9. Moreover, in 1984, a National Research Council was established in order to coordinate, formulate, and evaluate the main programs in science and technology. Since 1991the main programs formulated by the Council have been used as a guide for selection in administering competitive grant for selected research programs in the universities as well as integrated principal research programs involving various related sectors. Further, in 1991, the Indonesian Academy of Sciences was founded in order to give advice to the Government and the society about the development of science and technology. The establishment of the National Standardization Council in 1984 has been a support to the development of standardization related to the development of industry, science, and technology, as well as to the enactment of laws related intellectual property such as the Patent Law of 1990 and the Copyright Law of 1987.
10. In the framework of the effort to support research, development, and the use science and technology, a Science and Technology Development Center was established. The center was established to house applied research laboratories to support science and technology activities of the business world, e.g. Construction Test Laboratory, Calibration Laboratory, Instrument and Metrology Laboratory, Natural Resources and Energy Laboratory, Applied Chemistry Laboratory, Applied Physics Laboratory, Aerodynamics and Vibration Laboratory, Siwabessy Multipurpose Reactor Center and its supporting laboratories, Applied Metallurgy Laboratory, Motor Thermodynamics and Propulsion Laboratory, and Process Technology Laboratory.
11. In addition, a number of other laboratories were constructed, i.e. Laboratories for biotechnology development, food and industrial plants research, cattle breeding, health and nutrition, as well as industry, mining, and energy.
12. The development of science and technology in the field of basic human needs comprises health; agriculture, food, and nutrition; settlement and housing; and education. The program was a contribution to rice self-supporting, improvement of nutrition, improvement of health, and improvement of intelligence levels of the people. Further, in the field of natural resources and energy, useful data and information were produced for the conservation of the functions and potentials of the environment and natural resources
13. Science and technology development in the field of industry, particularly aeronautical industry, during the first twellty-five year development had, through the process of transfer of technology, come to the technology integration phase, and is now heading toward the next phase of technology transformation, i.e. new technology to produce new product. This was demonstrated by the capability to produce 24 CN 235 airplanes, 91 NC 212, 19 NBELL, 84 NBO helicopters, and 10 NAS helicopters. The industry is now designing an N 25 airplane which is the third phase of technology transformation. Besides, since 1986, F-16, Boeing 737, and Boeing 767 components have been produced and exported.
Other fields of science and technology industrial development have also grown. The maritime and shipping industry was capable to design "Mina Jaya" fishing boat (15, 20, 30 DWT) appropriate for Indonesian waters, "Maruta Jaya" ship (2,050 DWT), "Caraka Jaya" ship (1,000-3,600 DWT) and the test of FPB-57 model. The land transportation industry was able to export 150 wagons, test electric train components and others. The telecommunication and electronic industry was able to produce high-frequency transistors to strengthen the power of transistors and semi-conductor components for avionics, radio broadcast, and television, as well as telephone communication using frequency division multiplexing.
The energy industry succeeded to design coal boiler for electric energy (50 KVA), produce model for the use of solar energy for electricity, irrigation pump mover, and sea water treatment, reliability of interconnection channels, and gambut brickets for ceramics.
In the framework of defense and security, a number of study was conducted to test the technical and operational requirements of weapon system, the development of some weapon components and system, the application of remote sensing technology, material technology, and software technology.
III. SCIENCE AND TECHNOLOGY DEVELOPMENT IN THE NEXT FIVE YEARS (THE SIXTH FIVE YEAR DEVELOPMENT PLAN)
14. In the next Repelita VI, economic development is stressed on the industrial sector, where in turn a more balanced economic structure is achieved where a stronger industry support each other with a stronger agriculture. Science and Technology development therefore cannot be separated from other economic development sector. -
15. Industrial development with the support of a stable science and technology orientates its activities to the effort to increase a higher value added products.
16. The efforts to increase such value added is performed with an of our recourses, either the exploitation of our natural resources or the increase of human resource ability to create products which economically have a higher value added.
17. We can increase the exploitation of our natural resource to obtain products with a higher value added, for instance in the agriculture sector with the development of agroindustry activities. In the past, agriculture commodity using simple process were directly marketed so that it had a lower value added. By using a more developed technology process a higher value added is achieved. This can also be made with forestry commodity and mining products.
18. Further, the increase of industrial capacity through the development of human resource quality is directed not only toward manufacturing industries but also to industries with a higher technology. Although industry with high technology level needs a longer time to achieve, such technology is needed for its outcomes has a very high value added.
19. Welfare index and the ability of human resources in the Asia regions are generally higher than those of Indonesia. The high index is the manifestation of a big investment in science and technology by private sector and the people, the investment of which is continually increasing in comparison with the government investment. Such index also indicates the high consciousness and culture of those countries to use, develop and mastering science and technology.
20. Challenges in science and technology development especially for the next five years and, in general, during the Second Twellty- Five- Year Development:
a. to enhance science and technology development which can boost the ability touse, develop, and master science and technology and to create scientific and technological culture;
b. to encourage research cooperation between the Government and the people so that science and technology development are widely known by the people, especially the business community;
c. to expedite and to activate the transfer of technology process among other things, through progressive manufacturing;
d. to increase the quality of products and industrial process, productivity, efficiency, and innovations via the use, development and mastering of technology;
e. to increase the quality, composition, and quantity of human resource capable to use, develop, and master science and technology;
f. to develop the management of science and technology institutions.
21. In that respect, there are some constraints in science and technology development, namely:
a. with regard to the transformation of science and technology, cultural constraints are now still deeply rooted in the people;
b. the funding of technology activities which still lies heavily in the Government's hands;
c. the limited budget available in both the Government and the private sectors for research and development;
d. problems of marketing due to non-membership of regional marketing system;
e. the limited activities in research and development;
f. the limited capability to supply human resource in science and technology in accordance with industrial need;
g. the limited supply of researcher and lecturer in science and technology.
22. Despite the above constraints there are opportunities which can support science and technology development, namely:
a. that there is still interest to develop and to increase the ability and effectivity of human resource in science and technology;
b. the smooth flow of trade, investment, transaction and transfer of technology in the economy and industry can lead to the change of social and cultural values. Such change may affect modes of thought, modes of attitude and modes of action of a nation;
c. the use of technology in business and industry which is more wellspread;
d. environment-oriented development process which encourage international cooperation in science and technology.
AIMS AND POLICY
23. The Aims of science and technology development both in the Second twellty-year Development and in the sixth Five-year Development Plan are:
a. to increase the ability to use, develop, and master science and technology carried out by giving priority to increase the transfer of technology capability through technology transformations and innovations sustained by the development of human resource ability, adequate infrastructure and means, and the increase of education quality so that it can support the effort to strengthen, to master and extend industry to sustain industrialization in the achievement of a progressive, independent, excellent, and prosperous Indonesia.
b. to transfer the financing role of the Government from 80% to 20-30% at the end of the Second Twellty-Five-Year Development. It is also hoped that the private sector win increase their use of Government's research institutions to 60-70% to enhance the quality of their products and their production process in the effort increase their competitiveness in international market. Therefore the Government's burden to finance scientific and technology researches in Government's research institutions which are now amounting to 70% of the total budget can be transferred to the private sector. Such transfer then shall increase the total budget for science and technology development from 0.3 % in the GNP to 2% at the end of the Second Twellty-Five-Year Development.
c. It is hoped that the number of researchers, lecturers, technicians, operators and supervisors having sufficient education and expertise in science and technology win increase to 1 % of the total population of Indonesia.
d. To create business environment which encourages productivity and increase value-added process in production sector, to facilitate creativity and innovatio and to expedite the development of product quality standards equal to international standard.
e. to increase technology ability of small-scale industries, small businesses and cooperatives. It is hoped that development problems in the regional and rural areas, such as the improvement of infrastructure and means, can be solved by research findings and science and technology development efforts so that such efforts can alleviate the poverty of the people.
In that respect, the policy in science and technology development in the Sixth Five Year plan comprises the following: (1) to develop scientific and technology values which are able to increase science and technology ability and to create scientific and technology culture in the people; (2) to promote research cooperation in the development of science and technology; (3) to expedite progressive manufacturing; (4) to increase quality of products and production process, productivity, efficiency and innovation in the mastery of science and technology; (5) to increase the quality, quantity and composition of human resource in science and technology; (6) to develop the management of science and technology institutions.
TECHNOLOGY MASTERING AND DEVELOPMENT
24. In fact, the State Minister for Research and Technology/the Chairman of BPPT has established the policy to master and develop technology to sustain industrialization process in two types of approach, namely:
first: "market-pun/driven" approach, that is technology mastering and development based on the mastering of both manufacturing technology and production technology in accordance with market need/demand by transferring technology from technology resource country, and then develop that technology by our own effort.
second: "technology-push" approach, that is mastering and developing technology based on/via research and development activities in the technology innovation framework and engineering activities.
"Market Pun/Driven"
25. The policy of market-pun/driven technology is also known as industry and technology transformation strategy which is a strategy for technology transfer and mastering. For such implementation we use a short-cut by transferring technology from developed countries.
26. In developing industry and technology transformation strategy, the State Minister of Research and Technology/Chairman of BPPT has set out the necessary principles for science and technology implementation for the development of the nation:
(1) education and training;
(2) a clear concept;
(3) actual problem solving;
(4) technology self-development;
(5) protection
the implementation of the above strategy is made in four phases:
(1) the use of the existing technology for value added process;
(2) technology integration;
(3) technology innovations;
(4) extensive basic research.
Vehicles are needed to successfully implement the above phases of transformation strategy:
(1) aviation;
(2) maritime and shipping;
(3) land transportation vehicles;
(4) telecommunication and electronics;
(5) generator;
(6) engineering;
(7) agriculture tools and machineries;
(8) defense.
27. In line with the State's Policy Guidelines that science and technology development shall sustain industrialization, the implementation of industry and technology transformation strategy shall be carried out by the Government and the private sectors. The transformation strategy which shall be carried out by the Government is among other performed by Strategic Industries Management Agency (BPIS) which coordinates 10 strategic industries, each performing a mission on the technology transformation vehicles and presently such strategic industries is deemed as center of excellence in their respective field.
28. Seen from the technology and industry transformation strategy point of view, the mastering program, and technology at initial level (that is first, second and third), are putting stress on technology transfer and mastering in the industrial field, with the assistance of supporting laboratories under the coordination of Science and Technology Development Center (PUSPIPTEK).
Moreover, the implementation of the transformation strategy at fourth level (basic research) is made in PUSPITEK's laboratories in relation with other research and development institutions.
"Technology Push"
29. In 1984 the State Minister of Research and Technology/Chairman of BPPT observed that there was confusion in the activities of government research and development institutions. A National Research Council was therefore established in the same year. One of its task is to coordinate research and development activities by both government and private research and development institutions.
30. The National Research Council which members consist of experts and research and development managers has established national principal program for research and technology (PUNAS RISTEK) covering:
(1) principal program on human basic needs;
(2) principal program on natural resources and energy;
(3) principal program on industry;
(4) principal program on defense and security;
(5) principal program on social issues, economics, culture, philosophy, laws and regulations.
31. From technology mastering and development point of view, the establishment of PUNAS RISTEK by the National Research Council is more directed toward technology push, in which science and technology mastering is based on research activities arising from scientific curiosity and how to make further development without taking into consideration market demand aspects.
32. Presently the implementation of PUNAS RISTEK is performed by Government research and development institutions under National Research Council coordination, that is by developing the following activities:
(1) I, II and III through Competitive Grants;
(2) I and II through Integrated Principal Research Programs.
33. Based on those two types of approach, the implementation of technology mastering and development programs to sustain industrialization process shall be implemented through inter-institutional activities (industry/Strategic Industries Management Board (BPIS), Science and Technology Development Center (PUSPIPTEK), Research and Technology Non-Departmental Government Institution, Research and Development, universities). The activities to be developed are among other things engineering to create new innovative products or technology innovations.
34. In addition, such engineering achievements can be developed in the industries.
35. Both approaches are in line with 1993 State's Policy Guidelines, especially for the Sixth Five Year Development plan in which science and technology in 1993 State's Policy Guidelines becomes a separate field divided into five different sectors:
(1) production techniques;
(2) technology;
(3) applied science;
(4) basic science;
(5) science and technology institutions.
points 1,2 and part of point 3 are directed toward market pun approach while points 3, 4 and 5 are directed toward technology push.
"ONE GATE POLICY"
36. One gate policy in the Sixth Five Year Development Plan is one of the efforts to in crease research quality, coordination, efficiency, finance effectivity and participation of researchers and science and technology development to achieve higher productivity.
37. PUNAS RISTEK
In 1984 the Government, in this matter the State Minister of Research and Technology and the National Research Council, has established National Principal Program (PUNAS RISTEK) as guidelines for the selection of an proposals for scientific and technology activities carried out by research and development institutions/government research units, including public and private universities in which the principal programs are categorized into the following:
a. Human Basic Needs;
b. Natural Resources, Energy and Environment;
c. Industry;
d. Defense and Security;
e. Social Issues, Economics, Culture, Philosophy, and Laws and Regulations.
Jakarta, 16 November 1993