Business Potential for Agricultural Biotechnology - Asian Productivity ...

5. AGRICULTURAL BIOTECHNOLOGY DEVELOPMENT
IN INDONESIA
INTRODUCTION
– 111 –
Iwan Ridwan
International Cooperation Bureau
Ministry of Agriculture
Jakarta
Biotechnology has been used to improve product processing and in the development of
energy-saving, cost-reducing, nature-oriented, environment-friendly products. In the 21st century,
where the pace of technological change has never been so fast, industries must use biotechnology
to survive and must be intensively supported by research activities and research networking.
Researchers not only have to work harder but also face new ethical and moral issues and
changes in consumer protection laws.
The future environment is a changing landscape characterized by technology based on computer
networking, which in turn influences the behavior of people moving into an “e-society”
and their approach to doing business. Competition becomes global when ideas move freely
across borders. Restructuring, always anticipating new technology is essential because of the impermanence
of success. Success in the 21st century competitive landscape requires specific
capabilities. For Indonesia, it is the ability to manage tropical bioresearch wisely to maintain
sustainable industrial development, the ability to build networks to adapt to rapid technological
changes, and the ability to fulfill stakeholders’ needs. Furthermore, the approach for collaboration
should be based on mutual benefit at every stage, from raw material aspects to downstream
industries.
Indonesia has developed largely due to industrial policies that stand in close relationship to
macro-policies in which economic considerations are given the highest level of priority. It has
been a very good decision for Indonesia to take the steps necessary to promote industrialization
based on local resources. Bioresources are among the local natural resources that are ready for
utilization. The development of a bio-industry which utilizes biotechnology to process bioresources
into products is expected to significantly support the national effort in systematically recovering
from the economic crisis.
Biotechnology will be as important to the first half of the 21st century as computers were to
the second half of the 20th century. Along with information technology, biotechnology will enhance
the quality of human life by overcoming the problems of human health and food shortage
and preventing environmental destruction.
ECONOMIC AND COMMERCIAL CONSIDERATIONS
In 1985, the Indonesian government declared biotechnology a priority area for national
development. This decision was further promoted after the recent economic crises (1997 up to
now), based in part on Indonesia’s unfortunate past experiences with other technological applications,
especially air and space technology.
There are very strong links between increases in agricultural productivity and broad-based
economic growth in the rest of the economy. Agriculture is an engine of growth in low-income
developing countries, including Indonesia, where only the agricultural sector maintained positive
growth during the peak period of the economic crisis in 1997.
The contribution of biotechnology to improved economic well-being and performance is
much more difficult to measure. It takes essentially three forms: a boost to the performance of
industries (including the public sector) for which the application of biotechnology knowledge