THE REPUBLIC OF INDONESIA V.V. Krishna - Unesco

THE REPUBLIC OF INDONESIA
Introduction
V.V. Krishna
Indonesia proclaimed its independence on August 17, 1945, after more than 350 years under
Dutch occupation. During this long colonial period, Indonesians frequently fought to restore
their pre-colonial independence. Finally, in the early 20th century, attempts to overthrow the
Dutch by force were replaced by the development of nationalist organizations that sought
change and reforms through political means. The Japanese invasion in 1942 and occupation
until 1945 further strengthened the determination of the nationalist movement.
The population of Indonesia in 1980 was 147.5 million, up from 119 million in 1971 and 79
million in 1961. With the present population of 179 million, Indonesia is the fifth most populous
nation in the world, exceeded only by China, India, the Soviet Union and the United States.
Although the population is widely dispersed throughout the archipelago, the heaviest
concentrations are located in the fertile islands of Java, Madura and Bali, where the
population density I 755 per square kilometre.
1. Scientific Activities in the Colonial Period
The first organized scientific activities in Indonesia started in 1778 with the founding of the
“Batavia Society of Arts and Sciences”, a private organization for the promotion of research
for the benefit of trade and agricultural development. Although in the beginning the work of its
members covered all fields of science, there interest gradually shifted more and more to the
social sciences. Even to the present period, the “Proceedings” of the Batavia Society of Arts
and Sciences remain an important source of knowledge concerning the social and cultural life
of the people in several parts of the Indonesian Archipelago.
The establishment of the famous Botanical Garden in Borgor in 1817 was the starting point of
systematic botanical research. Gradually more and more research activities were carried out
in other fields such as zoology, geology and marine sciences. With regard to the applied

sciences, much attention was given to agricultural research especially on export crops, and
later to medical research; important contributions were made in both fields.
The Universities did not have a major part in the last two decades of Dutch Colonial rule. This
was understandable as the first school of higher learning was founded abroad for a university
degree and so only, a small minority could pursue scientific research. Most of the research
was done by the Dutch scientists and other foreign scientists employed by the Dutch. This
isolatation of local researchers had consequences after independence.
The other development during the colonial period was the establishment of an organization
for the promotion and coordination of scientific research in 1928 by Government Decree the
“Natuurwetenschappelijke Raad Voor Nederlandsch Indie” (The Natural Science Council for
the Netherlands Indies). The main objective of this organization was to stimulate and
coordinate research, to function as a point of contact between scientists in the country and
abroad and to act as an advisory body to the Government on matters relating to the natural
sciences.
Twenty years later, in 1948, another organization was created, the “Organization for Scientific
Research” which was intended to become a national research council. Its primary aim was to
stimulate, support and coordinate research that was important for the country. A similar
organization was established for the Natural Sciences, the “Institute of Natural Sciences”. It
was this latter organization, which organized the Fourth Pacific Science Congress, held in
Indonesia in 1929. After the transfer of sovereignty, which took place in the last days of
December 1949, Indonesia encountered a number of problems in many fields, including
scientific research. Since most scientific research was done by the Dutch, after the transfer of
sovereignty, many of these scientists left the country.
1.1 Developments in S&T Policy Institutions after Independence, 1949
As soon as the country proclaimed independence in 1945, a document on the ‘Constitution
1945 of Republic of Indonesia’ was issued. In this document chapter 31 assigned an
important role for S&T in the development of the country. From 1950, Indonesia started its
programme of expanding education at all levels and science and technology. In 1956, the
government formed the Indonesian Council of Sciences to coordinate developments in S&T
and to advise the government on science and technology policy.
The new regime of President Suharto, established in 1966, begun to promote science and
technology for development through a planning process of Five Year Development Plans.The
first Indonesian Ministry of Research and Technology (IMRT) was created in 1970. Following
this, the government established the National Research Centre for Science and Technology
(called PUSPIPTEK) and the Life Sciences Centre. The PUSPIPTEK even today remains the
country’s main R&D research complex. In 1984, the President Suharto formed the National
Research Council (NRC) by constituting members from academia, R&D institutions and
industry to advise the government on S&T; and to work in close collaboration with the Ministry
of Research and Technology.
Besides the developments noted above, Indonesia embarked on a planned process of
development and S&T was given importance in this process. The First Five Year
Development Plan (PELITA I) 1969 – 1974, carried out with the help of foreign governments
and international organizations in the forms of loans grants and expertise, was aimed at
getting the economy of the country out of its precarious position.

PELITA II (1974-75 to 1978-79), set out development objectives and provided directions for
the desired growth process and for the order of priorities. The Second Plan focused on
employment opportunities, a rising level of income, a more equitable distribution of
development projects among the various regions of the country, greater economic and social
integration of the region into one effective national entity and an enhanced quality of life
including its environmental, cultural and nutritional aspects. With regard to the policy on
research and development, focus was placed in the short term on R & D in agriculture,
industry and mining. Cross-sectoral research activities in population, health education, social
attitudes, communication etc, were also emphasized in this plan.
Science and technology activities during PELITA III (1979-80 to 1983-84) were grouped into
pure and applied sciences, supporting each other and directed towards the requirements of
short-and long-term developments. The fifth Five Year Development Plan (PELITA V) laid
down the task for the National Research Council to prepare the formulation of the principal
National Programme in the fields of research and technology through planning and national
development strategy. This exercise evolved a national Matrix on research and technology to
be followed and further developed by other national level R&D and S&T institutions. Even
though the planned process and having S&T component included in the national plans
continues, some of the other developments in the recent times include:
• National Development Programme of 2000, which became a Law in 2002 for National
System of Research and Development, and Application of Science and Technology
• Mechanism and Schemes to Regulate Technology Transfer
• Strategy Policy of National Science and Technology Development 2001-2005
by IMRT
• Law of 2003 on National Education System
• Schemes on Entrepreneurship Development and New Technology Insurance
Programmes by IMRT in 2003
Among the above-mentioned policies, the National Law No. 18, 2002, on National System
Research, Development, and Application of Science and Technology assumes considerable
importance. The government has set up the direction and research development priority as
stated in the National Development Strategic Policy for Science and Technology. The present
structure of Organisation of S&T is shown in Figure-1.

Figure 1: S&T Organisation in Indonesia - National Expenditure on Research
In Indonesia, the predominant proportion of gross national expenditure on research
and development and S&T activities is funded through government sources. Compared
to other neighbouring countries such as Malaysia, Singapore, Thailand and others, Indonesia
spends a relatively low proportion (about 0.2% in 2001) of its GDP budget on science.
This proportion has come down drastically from 0.47% of GDP Indonesia spent on R&D in

1980. As the table 1 shows, S&T and R&D expenditure in Indonesia did not witness any
significant increase between 1999 and 2002.
Table 1: S&T and R&D expenditure of Indonesia (figures in million rupees)
Sector 1999 2000 2001 2002
S&T 1061 1634 1385 1239
R&D 648 659 656 635
Source: Various Websites on Indonesian S&T system
Table 2: Sources of R&D Funds in Indonesia 2000
Sources Billion Rupiah Percentage
Government 659 68.6%
Universities 54 5.6%
Private 247 25.7%
Total 960 100%
Source: Various Websites on Indonesian S&T system
Indonesian S&T and R&D funding relies quite substantially on the government source
of funding. In 2000-02, 68.6% of national R&D was spent by the government, 25.7% by
the private industry and 5.6% by the academic sector. Even from the limited sources of extra
mural R&D funds, the type of allocation made in 1999 (See Table 3) reveals that directly
relevant R&D components such as in universities, government laboratories etc
have accounted for less than 12% and indirect NGO related R&D activities account for over
92%.
Table 3: Distribution of Extramural of Industry R&D Expenditure, 1999
Recipient Rp. Billion %
University 0.756 4.3
Government R&D Inst 0.559 3.2
Other company 0.046 0.3
Overseas 0.894 5.1
Others (NGOs, individuals, etc.) 15.248 87.1
Total 17.503 100
Source: IMRT and LIPI, 2003

As Table 4 shows, out of the R&D budget allocated to research institutions, four institutions
including the one involved in Aerospace field, received substantial funding. It is clear from the
above table that these four institutions are quite important for Indonesian S&T system.
Table 4: Research Institution’s R&D Budget, 2003
Non Departmental Research Institutions Rp. Billion
Indonesian Institute of Science (LIPI) 137.6
National Institute for Atomic Energy (BATAN) 78.5
Agency for the Assessment and Application of Technology (BPPT) 60.9
National Institute for Aerospace and Aeronautic (LAPAN) 51
National Coordinating Board for Survey and Mapping (BAKOSURTANAL) 4.0
National Institute for Standardization (BSN) 0.2
Source: MORT, 2005
2. Universities and Human Resources
Higher education in Indonesia began at the end of the Nineteenth Century with the
establishment of medical education for local doctors in Jakarta. After independence in 1949,
particularly after Education Act of 1961, the country witnessed a good deal of progress in
higher education. In 1950, there were 10 institutions of higher education with 6500 students.
In twenty years in 1970, there were 450 private and state funded institutions of higher learning
with enrolments of 237,000 students. This increased further to 900 institutions in 1990 with
nearly 1.5 million students. In 2004-05, there are some 2600 institutions of higher education
including 82 public institutions. However, given different types of higher educational
institutions, one good source indicates that there are currently 51 state/public universities
(including several teacher-training institutions), 26 state/public polytechnics (engineering,
commerce and agriculture) and 1,328 private higher education institutions (including
academies, polytechnics and teacher training institutions). Besides, there are also Islamic
higher education institutions (both private and state/public) which are under
the control of the Ministry of Religious Affairs
(http://www.rihed.seameo.org/hesystem/indonesiaHEsystem.htm). The Table-7 below shows
some important public and private universities in Indonesia. According to the estimates given
by Djanali (2005), the period of 1990 and 1996 saw enrolments in public universities doubling
to around 1.5 million and enrolments in private universities rose by one third to about 1.9
million. An average of 14,540 additional teachers were recruited for higher education every
five years between 1968 and 1993.
Table 5 shows that both in terms of education inputs (public expenditure on education), and
participation in education, Indonesia in general lacks behind its South East Asian neighbours.
Indonesia lags far behind its South East Asian neighbours and the Republic of Korea
concerning public expenditure and the gross enrolment ratio in secondary and particularly in
tertiary education. Only as regards the adult literacy rate for both adult males and females is
Indonesia on a par with the other East Asian countries, because of the vast expansion in
primary education during the Soeharto era. In 1995/96, just before the Asian economic crisis,
central government expenditure on education accounted for 15 percent of total central
government expenditure or Rp. 12 trillion in absolute terms. However, in 2004 public
expenditure on education accounted for only 10 percent of central government expenditure or
Rp. 25 trillion in absolute terms. Aside from the fact, that Indonesia’s public expenditure on

human resource development is even lower than the average low-income country, let alone
the average middle-income country, the current education and training system in general
does not meet the needs of industry. The reason is that the general secondary education
system relies on rote learning, and does not develop adequate mastery of basic literacy, basic
numeracy, and thinking and creative skills. (Thee Kian Wie, ‘The Technology and Indonesia’s
industrial competitiveness’, Asian Development Bank, Mimeo). According to the recent
UNESCO 2005, report gross enrolment ratio witnessed considerable improvement from 9.2 in
1990 to 15 in 2000 as shown in Table 6 below.
Table 5: Gross enrolment ratio, 2000/02
Country
Public expenditure
on education (% of
total government
expenditure, 2003)
Primary (% of
relevant age group)
Secondary (% of
relevant age group)
Tertiary (% of
relevant age group)
Male (% ages 15 and
older)
Indonesia 9.8 111 58 15 92 83
Malaysia 20.0 95 70 27 92 85
Philippines 14.0 112 82 31 93 93
Thailand 28.3 98 83 37 95 91
China - 116 67 13 95 87
The Republic of Korea 13.1 104 90 85
Table 6: Gross Enrolment Ratios 1970-2000
1970 1980 1990 2000
Secondary Education 16.1 29.0 44.0 57.0
Higher Education 2.5 3.8 9.2 15.0
Source: UNESCO (2005)
Female (% ages 15
and older)

Table 7: Main Universities in Indonesia
Public Universities Private Universities
Cenderawasih University, Jayapura
University of Airlangga, Surabaya
Institut Teknologi Bandung, Bandung
Bogor Agricultural University
Diponegoro University, Semarang
Universitas Gadjah Mada, Yogyakarta
University of Indonesia, Jakarta
Padjadjaran University
Universitas Sumatera Utara, Medan
Sepuluh November Institute of Technology,
Surabaya
Sriwijaya University
Universitas Islam Negeri
Yogyakarta State University
Source: http://en.wikipedia.org/wiki/List_of_universities_in_Indonesia
Brawijaya University
Institut Seni Indonesia, Yogyakarta Sekolah Tinggi
Seni Indonesia Surakarta, Surakarta
Universitas Mataram, Mataram, West Nusa
Tenggara Universitas Udayana, Denpasar, Bali
Atma Jaya University
Bina Nusantara University
Parahyangan Catholic University
STT Telkom, Bandung
Tarumanagara University
Trisakti University
Pelita Harapan University
Islam Indonesia University
Petra Christian University, Surabaya
Kristen Satya Wacana University, Salatiga
3. Indonesia’s Main Science Institutions
As noted earlier, Indonesia remains behind many Asian countries in several important
aspects. One important indicator, which shows low importance and national effort in R&D and
S&T, is the low level of spending for R&D, which was less than 0.2 percent of GDP during
2000-02. This level of funding for R&D is much lower than several South Asian and South
East countries. Public spending on education was also low by Asian standards, despite the
rapid expansion of the educational system.
The State Ministry for Research and Technology has the responsibility for coordinating R&D
policy in Indonesia but has little control over the allocation of research expenditure. The
Ministry operates a number of competitive grants and other programs for funding research,
especially for universities. Budgets for government research institutions are allocated either
through Ministries or directly through non-department agencies. The most important nondepartment
research institutions include the Agency for Assessment and Application of
Technology (BPPT) for industrial technology, the Indonesian Institute of Sciences (LIPI) for
basic sciences, the Central Statistics Agency (BPS), the National Nuclear Energy Agency
(BADAN), and the National Institute for Aeronautics and Space (LAPAN). Nevertheless,
agriculture remains the highest priority for government-supported research. IAARD in the
Ministry of Agriculture is the largest government research agency in Indonesia with over 3,000
researchers (Table 8). Together with IPARD (estate crops), FORDA (forestry) and the Centre
for Fisheries R&D, agriculture receives by far the largest allocation of research staff by
government research institutions. Table 8 lists Indonesia’s main science agencies, their fields
of activity and research staff in the respective institutions. As can be seen agriculture and
related research constitutes the predominant segment of the national S&T effort. As can be
seen from the table below, Indonesia maintains two frontier based R&D institutions, namely
Aerospace and Nuclear related research that both constitute 1800 full time researchers.

Table 8: Major government research institutions in Indonesia 1995-2000
Name of Research Institution Fields of activity Research staff*
Indonesia Agency for Agricultural Research and
Development (IAARD)
Agricultural crops and
livestock
3063
Central Statistics Agency (BPS) Statistics 1343
Agency for Assessment and Application of Technology
(BPPT)
Industrial Technologies 2074
Indonesian Institute of Sciences (LIPI) Basic sciences 1692
National Nuclear Energy Agency (BADAN) Nuclear Energy 1314
National Institute of Aeronautics and Space (LAPAN) Aeronautics and space 487
Forestry Research and Development Agency
(FORDA)
Indonesian Planters Association for Research and
Development (IPARD)
Centre for Oil and Gas Technology Research and
Development
Agency for Trade and Industry Research and
Development
Centre for Fisheries Research and Development 308
National Coordination Agency for Survey and Mapping
(BAKOSURTANAL)
*Research staff includes those with University degree (B.Sc., M.Sc., or Ph.D.). Data are from 1995-2000.Sources:
RISTEK (1996, 2002); IAARD (Statistik Penelitian Pertanian: Sumberdaya, Program dan Hasil Penelitian, 2000).
4. Indonesia’s Agriculture Research
In Indonesia, the central government is the primary source of funds for agricultural research.
The international agencies and donor institutions played a major part in developing
agricultural research in Indonesia, especially during the 1980s and early 1990s. This was the
period when Indonesia’s capacity in agricultural research was established. IAARD is the
primary body responsible for conducting and coordinating crop and livestock research in the
country. Research institutes for estate commodities are managed by the Indonesian Planters
Association for Research and Development (IPARD). IPARD, though largely autonomous and
self-financed, is nominally under the guidance of IAARD. Forestry and fisheries research were
separated from IAARD when the Ministry of Forestry and Ministry of Marine Affairs and
Fisheries were created. The principal role of universities in agricultural research has been to
train the scientific and technical personnel employed in government research institutes and
the private sector.
International agricultural research centres play an important role in Indonesia’s agricultural
research system. There are a number of international research agencies conducting research
in Indonesia. These are the Centre for International Forestry Research (CIFOR) and the SE
Asia regional offices of the International Centre for Research on Agro-Forestry (ICRAF) and
the International Potato Centre (CIP). The UN ESCAP CGPRT Centre, which conducts
486
429
343
328
239

socioeconomic research on secondary food crops, and the ASEAN-funded South East Asia
Regional Centre for Tropical Biology (BIOTROP) are also located in Indonesia. IAARD has
cooperative research arrangements with several other international agricultural research
centres as well (including AVRDC, CIMMYT, ILRI, and IRRI) and agricultural research
institutes in Japan, Europe, North America, and Australia. IAARD established a semiautonomous
foundation in 1999, the Intellectual Property and Technology Transfer
Management Office (IPTTMO), to help commercialize IAARD innovations. This office has
responsibility for patenting and licensing IAARD innovations to private firms.
5. Industry and High Technology
Although Indonesia's rapid industrial growth and transformation during the past three decades
was undoubtedly accompanied by technological upgrading, particularly since the mid-1980s,
the development of Indonesia's industrial technological capabilities (ITCs) has lagged behind
that of other Asian neighbours, particularly the Republic of Korea and China. These low ITCs
are, amongst others, reflected by the low percentage of high technology exports of
Indonesia’s manufactured exports, as compared to those of the other East Asian countries
(Table 9)
Table 9: The amount and percentage of high technology exports of selected East
Asian countries, 2003
Country High-technology exports (millions
of US$)
Indonesia 4580 14
Malaysia 47042 58
Singapore 71421 59
Thailand 18202 30
China 107543 27
Percentage of manufactured exports
Source: World Bank: World Development Indicators, 2005, table 5.12, pp. 314-8.
Note: High technology exports are products with high R & D intensity, as in aerospace, computers, pharmaceuticals,
and scientific instruments.
5.1 Aircraft Industry
Under the leadership of the then minister of state for research and technology,
Bacharuddin J. Habibie, the government attempted to move into aeronautics with foreign
technological assistance in the 1970s. The Archipelago Aircraft Industry (IPTN) was
established in 1976 to assemble aircraft under license from Construcción Aeronauticas of
Spain, and helicopters under license from Aerospatiale of France and Messerschmitt of
Germany. In 1979, IPTN designed and produced a 35 passenger aircraft (CN-235) with the
Spanish partner. This plane was produced from 1986 when IPTN had delivered 194 aircraft,
almost entirely to domestic buyers. In 1994, IPTN rolled out its first independently designed
aircraft, a 50 passenger commuter aircraft (N250) (Soedarsono et al 1998). IPTN is valued at
US$3 billion in 1998 and among its 15,000 employees about 2,000 were university graduates.
(http://countrystudies.us/indonesia/71.htm & U.S. Library of Congress)

5.2 Biotechnology in Indonesia
Modern biotechnology in Indonesia was institutionalised in October 1994 with the
establishment of the Biotechnology Consortium (IBC). The aim of IBC is to actively engage in
mastering, developing and making use of the benefits of biotechnology for the people, country
and environment conservation. These activities are conducted by building up:
• promoting cooperation among government and private institutions working in the field
of biotechnology,
• communication and synergistic cooperation with foreign institutions in the field of
biotechnology which are related, and
• assisting government in developing of sectors that relate to biotechnology.
At present, more than 34 institutions belong to the government and private sector working in
the field of biotechnology. (www.binasia.net/binasiadownload/downloadFile.asp?).In 2005, the
country hosted the BINASIA-Indonesia National Workshop to promote active participation of
biotechnology-stakeholders in the Network and international cooperation among participating
countries. One of the objectives of this workshop was to deliberate the status of
biotechnological developments and the national priority areas of Indonesia. However,
although the country is working in the area of biotechnology but a government policy on this is
yet to be issued.
Table 10: S&T Publications from the Web of Science (SCI)
1998 1999 2000 2001 2002 2003 2004 2005
Bangladesh 324 359 346 389 423 471 430 501
PR China 18833 23398 29004 33206 38469 46900 47306 56,524
India 16037 17104 15983 17501 18525 20803 20830 21,164
Indonesia 342 381 422 486 395 489 455 560
Japan 68585 70435 69773 70215 71207 78046 69433 66,411
Korea 10458 11894 13200 15519 16642 20529 21939 23,004
Malaysia 798 869 814 922 934 1171 1254 1,586
Mongolia 34 38 45 39 41 105 97 54
Pakistan 601 577 596 531 691 763 903 1,060
Philippines 311 344 351 315 410 440 424 486
Singapore 2490 3046 3392 3802 4238 4846 5109 5,419
Sri Lanka 124 168 167 157 176 264 226 290
Taiwan 8745 9152 9346 10780 11011 12675 13146 14,057
Thailand 935 1043 1185 1331 1591 2048 2047 2,543
Vietnam 239 249 322 356 346 497 412 573
Total 128856 139057 144946 155549 165099 190047 184011 196,237

6. Concluding Remarks
Indonesia witnessed a number of crises during the last decade. First the Asian financial crises
of 1990s and then the Tsunami and a number of other natural disasters affected the economy
in a number of ways. To some extent, these compounding problems diverted the attention of
government away from the growing needs and demands of the R&D system.
The current investment of around 0.2% of GDP on R&D is very inadequate to meet the
objectives and challenges outlined in the government’s S&T policy, particularly those
concerning the new technologies. In a relative sense, much of Indonesian strength in
innovation is in the agriculture and related areas of research. In a situation of low levels of
R&D investment and efforts during the last three decades, over emphasis on developing high
technology and high capital-intensive sectors such as nuclear and aviation industries has
further compounded the S&T and R&D problems for Indonesia. This resulted in the spreading
of thin financial resources to a number of R&D projects without having to witness any
reasonable degree of success and output. As can be seen from Table 10, compared to other
South East Asian neighbours, Indonesian R&D output as measured in research papers is
quite low for the period 1998 and 2005. Indonesian output is comparable to countries such as
Bangladesh, Vietnam and Sri Lanka. Secondly, one sector which has showed some
promising results, has been the manufacturing sector. Given the growing challenges of new
technologies and the importance of ICT and BT, the government needs to increase the
R&D/GDP ratio to at least three times to 0.6% in the coming three to five years. Government
need to evolve institutional innovations in S&T policies to mobilize private sector industry to
invest greater sums in R&D.
7. References
Soedarsono, A.A. L.M.Susan and Yildirim Omurtag, (1998), ‘Productivity Improvement at a
High-Tech State-Owned Industry – An Indonesian Case Study of Employee
Motivation’, IEEE Transactions on Engineering Management, 45(4).
Aiman, S. Lukman Hakim and Manaek Simamora (2005), ‘National Innovation System of
Indonesia: A Journey and Challenges’ Paper presented at the Seminar at AEGIS,
UWS, Sydney, 2005.