Innovation in Indonesia

Indonesia’s innovation performance appears weak on various measures compared with other countries in Southeast Asia and catch-up countries such as India and China. Based on the available data, Indonesia’s gross expenditure on R&D (GERD) is less than 0.1% of GDP and most R&D is performed by public research organisations (PROs). The rise in Indonesian doctoral students in the United States was a strong average annual 5.5% from 1997 to 2004.

Numbers of patent applications and scientific and technical publications are relatively small. But, compared with other developing countries in the G20 such as Argentina, Brazil, Mexico and Saudi Arabia, Indonesia has more of their own citizens than foreigners applying for patents locally. For instance, in Argentina, only 17 per cent of patents applications last year came from locals, while in Mexico the figure is just eight per cent.

Most of the patents made by Indonesian scientists are related to natural products — potentially useful new chemicals isolated from natural sources such as plants — and food and agricultural processes. The patents made by private foreign companies, in contrast, mostly deal with technology. 

According to the Derwent World Patent Index 2013 released in September, Indonesia’s scientists, most of them from universities and government research institutions, contributed to nearly 55 per cent of the country’s total patents in 2012.

Deni Noviana, division chief of Research and Innovation at Bogor Agricultural University, Indonesia, where the highest number of Indonesian patents originated, thinks that one reason for his nation’s scientists’ good performance is the way patents are being used to gain career promotion.

Indonesia is now emphasising science, technology and innovation (STI) as a source of future competitiveness. The National Medium-term Development Plan 2010-14 mentions “culture, creativity and technological innovation” among eleven development priorities. It highlights increasing the quality of human resources, including the promotion of science and technology, and strengthening the competitiveness of the economy.

The agenda of national research under the Long-Term National Development Plan 2005–25 includes seven research priority areas. Recently, a National Innovation Committee (KIN) was established, chaired by the President of Al-Azhar Indonesia University. The committee is an autonomous body consisting of 30 members and reports directly to Indonesia’s President.