Sharing Experience on Innovation: Indonesia Innovation Initiative 1747

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1 Sharing Experience on Innovation: Indonesia Innovation Initiative 1747 Ary Syahriar, Ph.D, DIC Special Staff to the Chairman of the National Innovation Council National Innovation Council of the Republic of Indonesia Presented at the EU-ASEAN STI Days Bangkok 21 January 214

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3 Indonesia Maritime Continent (IMC) Biodiversity Resources - Indonesia is the second largest country in biodiversity resources after Brazil, including resources for vaccine development. Marine Biota Resources Potential - Storage of protein (fish, shrimp, seaweed, etc.) Renewable Energy Resources Potential

4 FA CT S IN D O N ESIA T h e l a r g e s t a r c h i p e l a g i c c o u n t r y, 5, 12 k m f r o m E a s t t o W e s t, 17 6 K m f r o m N o rth to So u th. L a n d a r e a o f 1, 9 m i l l i o n k m 2, a n d 3, 1 m illio n k m 2 o f w a te r/ s e a M o r e t h a n i s l a n d s, 6 w ith in h a b ita n ts T h e 3 rd l a r g e s t d e m o c ra c y a n d m e m b e r o f G 2 M o re th a n 3 e th n ic s a n d 74 2 lo c a l la n g u a g e s a n d d ia le c ts T h e 4 th m o st p o p. c o u n t r y ( 2 4 m illio n s ) a n d t h e w o r ld la r g e s t m u s lim p o p u la t io n a n d m e m b e r o f O IC Slid e 4

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6 A Bit of Economics GDP (purchasing power parity) $1.212 trillion (212) $1.143 trillion (211) $1.74 trillion (21) note: data are in 212 US dollars GDP (official exchange rate) $894.9 billion (212) GDP - real growth rate 6% (212) 6.5% (211) 6.2% (21) GDP - per capita (PPP) $5, (212) $4,7 (211) $4,5 (21) note: data are in 212 US dollars GDP - composition by sector agriculture: 14.3% industry: 46.9% services: 38.8% (212) Sources:

7 Indonesia Competitiveness Based On World Economic Forum Criteria Source: World Economic Forum

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9 Vision 225

10 PARADIGM CHANGE ity v i t c du o r P e 2nd Cycle s a e r Inc TRADING Partnership 1st Cycle AID Partnership Shallow Investment With: Exploitation of Natural Resources Minimum Value Added Cheap Labour Business as usualbased Cooperation Natural Resource Driven Economic (Comparative Adv) Deep Investment With: Exploitation of Knowledge Maximum Tech. Transfer Skillful & Educated Work Forces Innovation-based Cooperation (Smart Society) Innovation Driven Economic (Competitive Adv)

11 National Innovation Council of the Republic of Indonesia

12 VISION To increase Indonesian Productivity through innovation MISSION Officiated by a Presidential Decree Number 32 in Increase the number of IPR 2. Increase the number of regional competitive products with high added values 3. Upgrade the S&T infrastructures to international standards 4. Self-sustained in food, medicine, energy, and clean water supplies 5. Self-sustained in defense, transportation, and information communication technologies 6. Double the export of creative industry products 7. To reach prosperity through a sustainable economic development

13 FUNCTION 1. To assist the President of the Republic of Indonesia in strengthening the National Innovation System (NIS) and promoting national innovation culture 2. To provide policy recommendation to the President of the Republic of Indonesia about program priority and action plans to strengthen NIS including allocation of budget and facility 3. To evaluate and monitor policies and programs to strengthen NIS

14 Organization

15 Innovation Initiative Presented at Cabinet Meeting on 12 April One percent (1%) of the GDP for R&D in Seven steps to improve the ecosystem of innovation to boost innovations (funding, leadership, culture, and policy); 4 Four models of innovation based industrialization vehicle to accelerate economic growth; (1. Basic Needs Industry, 2. Creative Industry, 3. Regionalbased Industry, 4. Strategic Industry) 7 Seven targets of Indonesian vision 225, towards a sustainable development of Indonesia

16 MP3EI: REGIONAL INNOVATION CLUSTERS In Center 6 Economic Growth Centers for Production and Processing of Natural Resources and As Nation s Energy Reserves Center for Production and Processing of National Mining and Energy Reserves Kalimantan Corridor Center for Production and Processing of National Agricultural, Plantation, Fishery, Oil & Gas, and Mining Sulawesi Corridor Sumatera Corridor Papua Maluku Corridor Java Corridor Driver for National Industry and Service Provision Bali - Nusa Tenggara Corridor Gateway for Tourism and National Food Support Center for Development of Food, Fisheries, Energy, and National Mining

17 GROSS EXPENDITURE ON R&D (GERD) National GERD and GERD/GDP Ratio, 29 GERD GDP GERD/GDP Rp. 4,72,341,818,344 Rp. 5,613,441,7,, Note: 1) Based on R&D Survey in University Sector, 21 2) Based on R&D Survey in Industry Sector, 21 3) Based on R&D Survey in Government Sector, 28* * the estimates with an average growth rate Goverment R&D budget since % GERD/GDP, 29 Shows that the breakdowon of R&D expenditure by sector in 29. Government and Higher Education were the highest R&D expenditure with ratio of GERD,4% for Government and,3% for Higher Education. Manufacturing industry was a lowest Higher Education Manufacturing Industry Source: R&D survey in University sector (29), Industry sector (21), and Government sector (26) Government

18 FOOD SECURITY ENERGY SECURITY BIOTECHNOLOGY FOR INDUSTRY TRANSPORTATION & DEFENSE TECHNOLOGY DEEP SEA & FISH PROCESSING TECHNOLOGY EARTH QUAKE, TSUNAMI & CLIMATE KNOWLEDGE-BASED PRODUCTS STRATEGIC RESEARCH: Maritime ContinentBased Economy

19 BUSINESS MODEL: S, T & INDUSTRIAL PARK BANDUNG RAYA INNOVATION VALLEY (BRIV) Special Economic Zone 1. Pre Incubation Pre-BI Start-ups 2. STP 3. Hi-tech Industrial Zone Incubation Post Incubation TBI Hi-tech Venture firm Post-BI ICT Energy Venture park Trans portation Bio science

20 Why BRIV..? BRIV will be established on the solid foundation furnished by the cutting-edge convergence and integration R&D capacity of government funded institutes. BRIV will be inhabited by the cultivation of top minds in Science and Technology at top-tier universities, who will be facilitated to work and reside in this zone. (Clusters: 1. ICT, 2. Energy, 3. Transportation, 4. Bio Science) In BRIV the growth of technology-intensive venture companies through the commercialization of R&D results will occur, with a business model of developmental progress through stages of Pre

21 Vision to Promote a Complete Human Well Being science & technology moral, ethics & Inspired by B.J. Habibie spiritual values

22 Thank You

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