STI POLICY DEVELOPMENT IN INDONESIA: LESSON FROM KOREA’S SUCCESS

Anugerah Yuka Asmara, MA

Senior Researcher of Science-Technology-Innovation (STI) Policy

&
Coordinator of Research Group for STI Policy and Governance (KTKI)

Research Center for Public Policy (PRKP)

Research Organization for Governance-Economy-and-Community Welfare (OR TKPEKM)
National Research and Innovation Agency of Indonesia (BRIN)

Presented at the ELABORASI – PRKP BRIN 30 October 2023

Zoom Media
 CONTENTS

1 DEFINITION OF PUBLIC POLICY AND STI POLICY

2 THE FUNCTION OF STI POLICY

3 HOW INDONESIA CAN LEARN FROM THE KOREA’S SUCCESS

4 THE MIRACLE OF KOREA

5 STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

6 KEY ELEMENTS FROM SOUTH KOREA TO INDONESIA

7 THE BRIN’S ORGANIZATION STRUCTURE AND FUNCTIONS

 DEFINITION OF PUBLIC POLICY AND STI POLICY

PUBLIC POLICY IS ………….

Policy is a means to achieve public goals. Policy is a Policy is “relatively stable, purposive course of
way, direction, and governmental efforts aimed to action or inaction followed by an actor or set of
achieve public goals and interests (Wahab, 2008, actors in dealing with a problem or matter of
Andersson, 2011; Nugroho, 2011, Birkland, 2015 ) concern” (Andersson, 2011)

Policy is an authoritative, administrative and politic process

undertaken by public agencies to combat public issues. It can be
art conducted by practitioners and be knowledge conducted by
academicians
 DEFINITION OF PUBLIC POLICY AND STI POLICY

SCIENCE-TECHNOLOGY-INNOVATION (STI) POLICY ……

Science policy is aimed to develop basic science resulted by

universities and R&D institutes (Dodgson, 2000)

Technology policy is aimed to develop applied knowledge and technology resulted by

universities and R&D institutes (Dodgson, 2000)

Innovation policy or STI Policy comprises development of economy and industry within
each nation, national innovation system of each country, and also quality of existing
institutions and the social-economic linkage within them. It brings R&D results to
market (commercialization) with involvement of multiple actors aimed to promote
innovation practices (Borras and Edquist; 2013; Patanakul and Pinto 2017; Leibowicz,
2018; Asmara & Kusumastuti, 2021)
 THE FUNCTION OF STI POLICY

Role of government in doing STI

Policy

Source: gfieurope.org
 THE FUNCTION OF STI POLICY

Economic Most of R&D activities and products are costly and

reasons unaffordable for people

System
reasons Locked innovation system a country; asymmetric information

Political Political support and pro-cons to implement R&D invention Role of government agencies
reasons to innovation

Sectoral Red-tape issues of government, sectoral or silo coordination

reasons among government agencies

Culture and
Acceptance of new things in the social environment
communication
reasons
HOW INDONESIA CAN LEARN FROM THE KOREA’S SUCCESS

WE ARE ON THE SAME PAGES

 HOW INDONESIA CAN LEARN FROM THE KOREA’S SUCCESS

Indonesia and South Korea are in the Asia Continent

East Asia Region

South East Asia Region

 HOW INDONESIA CAN LEARN FROM THE KOREA’S SUCCESS

Korea and Indonesia is the Same Independence Year

Occupation of Japan up to 1945 Occupation of Japan up to 1945

In 1945, Korea was finally liberated from its

17 August 1945, Indonesia promulgated the
occupation, and exactly three years later, on August
independence day, and continued to struggle military
15th, 1948, the Republic of Korea was officially
aggression of the Dutch colonial
established.
Up to 1948
 Population and Cities of South Korea and Indonesia in
1960-1970s

Seoul city Jakarta city

 HOW INDONESIA CAN LEARN FROM THE KOREA’S SUCCESS

South Korea and Indonesia Had Been Ever Led by the Authoritarian
Regime in 1960s

After Independence 1945, the emergence of After Independence 1945, the emergence of
social conflict and political riot social conflict and political riot

Army General of Military as the President Army General of Military as the President 1965-
1961-1988 1997

Two distinct and limited political parties Three distinct and limited political parties
Army General Park
(Party of Democracy Republic and Party of Chung-Hee (1961s- (Party of Golkar, Party of Indonesian
New Democracy) 1979) Democracy, and Party of Development Union)

Economy development planning for 5 years Army General Economy development planning for 5 years
started in 1962 Soeharto (1965-1997) started in 1965 (Repelita)

Democracy demands for future government Democracy demands for future government
regime in the end 1980s regime in the end 1998s
Army General Chun Doo-
Hwan (1980-1988)
 HOW INDONESIA CAN LEARN FROM THE KOREA’S SUCCESS

South Korea and Indonesia are on the Similar Government System

Republic of Korea Republic of Indonesia

Leaded by the President and The Coordinating

Leaded by the President and the Prime Ministry Ministries

Three functions of government Executive, Three functions of government Executive,

Legislative, judicative Legislative, judicative
South Korea’s Blue
House of Presidential
Public election for each 5 years (president and Palace Public election for each 5 years (president and
legislative) legislative)

Government authority is divided into central and Government authority is divided into central and
local government level local government level

Local government consists of province, city, Local government consists of province, city,
district district
Indonesia’s House of
Special Area of City (metropolitan and Presidential Palace Special Area of City (metropolitan and
autonomous region) autonomous region)
HOW INDONESIA CAN LEARN FROM THE KOREA’S SUCCESS

Indonesia and South Korea are in the Eastern Culture

 THE MIRACLE OF KOREA

IS IT A GIFT OR THE RESULT OF HARD WORK ?

 THE MIRACLE OF KOREA

Indonesia and South Korea are in the One Last Decade

 STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

STI Policy Evolution In South Korea 1960s-Present

Periods Imitation Creative imitation Innovation

(1960s – mid-1970s) (late 1970s-1980s) (1990s-present)

Industrial - Fostering of export-oriented - Re-adjustment of industrial - Promotion of innovative

policy light industries structure industrial technologies
- Promotion of heavy and - Expanding the exportation of - Increase of efficiency of
chemical industries technology intensive products (human) resource exploitation

S&T policy - Building up technological - Structural adjustment of GRIs - Reform of GRIs structure and
infrastructure - Developing national strategic R&D (funding) system (Research
- Formulating and implementing technology area (NRDP initiated Council System)
overall S&T policies and law in 1982) - Enhancement of creative
(MOST) innovation capabilities

Higher -Skilled technical labour - Qualified engineer - Creative research and

Education -General education - Liberalization and Expansion to economic contribution
policy - Strong control over universities meet HE need - Establishment of research
centres and TTOs

Source: Revised and supplemented based on Yim and Kim (2005) in Kwon (2021)

Periods Establishment of the First S
&T Policy and agencies
(1945s-1965)
S&T policy Establishment of Research
Organization for Natural Sci
ence (OPIPA) (1948), Depart
ment of National Research (
DURENAS 1962), LEMRENAS
(1966), National Aeronautic
s and Space Agency (1963),
and Formulating S&T vision
1961-1969
Higher Establishment of universitie
Education s/higher schools. For examp
policy les: Higher School of Techni
c in Yogyakarta City (1946),
Higher School of Medicine i
n Malang City (1946), Unive
rsitet van Indonesie in Jakar
ta (1947), Providing scholars
hip to India, Australia, Uni S
oviet, European countries
Industry Acquisition of the
policy Dutch/Netherlands
enterprises to be national
firms
STI POLICY COMPARION: SOUTH KOREA AND INDONESIA
STI Policy Evolution In Indonesia 1945s-Present
Reinforcing and Expanding S&T Agencies
and R&D-based Industry
(late 1970s-1990s)
Focus on rehabilitation and development
of research facilities, Establishment of The
S&T Agency (LIPI-1967, Kemenristek-1973,
BPPT-1978, DRN-1984, AIPI-1990),
Forming EPUNAS RISTEK) as national S&T
policy guidance (1978),
Formulating knowledge-based economy
programs through REPELITA I, II, III, IV, V,
and VI)
Global scholarship (undergraduate, master,
doctor) for Indonesian students to USA,
Europe, Japan, Australia in the Science-
Engineering-Technology-Mathematics
(STEM) fields, Improvement of quality and
quantity of national lecturers and teachers
Reinforcing agriculture, transportation,
defense-security industry,
Closing relationship of academician-
industry network,
Establishment of the National Agency for
Strategic Industry Management (BPIS), P
romoting overseas (FDI) investments
Reformulating the National S&T
Laws and Agencies
(Late 1998-2004)
First strategic policy for national S&T
development (1998-1999; 1999-
2004), Formation of the Nuclear
Energy Supervising Agency
(BAPETEN-1998), Promulgation of
the first National Act 18/2002 about
National S&T Policy, Arranging the
Derivative laws of the first National
Act 18/2002,
Establishing national research board
(DRN), Reformulating the main tasks
and duties of Ministry of S&T, and
R&D public agencies
Improving budget allocation for
education affairs (20% from national
expenditure budget), promoting
research-based university
BPIS was dissolved due to economic
crises 1997-1999, activities R&D-
based industries are very limited
Reinforcing the Existing S&T Laws and
Agencies
2005-2018
National Long Term Development
Planning (RPJPN) for 20 years and Middle
Term Development Planning (RPJMN) for
5 years– STI policy is part of RPJPN and
RPJMN,
Reinforcing the role of Ministry of S&T,
R&D public agencies, DRN, DRD,
National Research Agenda (ARN), National
Innovation System Planning, STP policy,
Promulgation of RIRN 2017-2045,
Formulating RIPIN 2015-2035
Forming the education funding
management institution (LPDP) for
scholarship at bachelor, master, and
doctor degree at national and
international,
Promoting entrepreneurship-based
university, Merging the S&T Ministry and
the General Directorate of Higher
Education at Ministry of Education
(Kemenristekdikti),
Establishment of Business Innovation
Center (BIC) , Arranging Master Plan for
Economy Development Acceleration
(MP3EI), Establishment of National
Innovation Committee (KIN), and National
Economy Committee (KEN), Forming the
National Economy and Industry
Committee, Promoting FDI
Transforming S&T Agencies and
laws
2019-present
Promulgation of the first National Act
11/2019 about National S&T Policy,
Continuation of S&T policy in RPJPN
2004-2024 and RPJMN 2019-2024,
Formulating the annual prominent
research based on the national
research planning (PRN) 2020-2024,
Promulgation of the President Law
78/2021 about the National
Research and Innovation Agency
(BRIN),
Establishment the BRIN (integration
of public R&D institutes)
Continuation of LPDP scholarship,
Promoting the independence
university program (Universitas-
Merdeka)
Law of the national turnkey industry
projects, Dissolution of DRN and
KEIN, Promoting FDI
 STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

Asian Dragon And Asian Tiger

The Four Asian

Tigers (Four Asian
Dragons or Four Little
Dragons) Hong
Kong, Singapore, South
Korea, and Taiwan.
Between the early 1950s
and 1990s, they underwent
rapid industrialization and
maintained exceptionally
high growth rates of more
than 7 percent a year.
By the early 21st century,
these economies had
developed into high-income
economies, specializing in
areas of competitive
advantage.
(en.wikipedia.org) Indonesia was called as “Asian Tiger” with
Malaysia, Philippines, Thailand in period of 1965-
1990s (Kozlova & Noguera-Santaella, 2017).
 STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

Innovative Economy of Korea

2019

2017 2021

Source: Bloomberg (2017, 2019, 2021)

 STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

Innovative Economy of Indonesia

2020 www.insight.kontan.co.id 2021 www.facebook.com 2022 www.Instagram.com

 STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

The Global Ranking of Economy

• The Republic of Korea ranks 6th among • Indonesia ranks 9th among the 36 lower-
the 48 high-income group economies. middle-income group economies.
• The Republic of Korea ranks 1st among • Indonesia ranks 13th among the 17
the 17 economies in South East Asia, East economies in South East Asia, East Asia,
Asia, and Oceania. and Oceania.

Source: WIPO (2022)

 STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

Innovation And Development

Leadership is key

Perfoming above
expectations

Source: WIPO (2022)

 STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

The Seven Pillar Scores of Global Innovation Index

Lower-middle-income group economies Indonesia performs above the
lower-middle-income group average in six pillars, namely: Institutions;
Human capital and research; Infrastructure; Market sophistication;
Knowledge and technology outputs; and, Creative outputs.
Source: WIPO (2022)
The Republic of Korea performs above the high-income group
average in six pillars, namely: Human capital and research;
Infrastructure; Market sophistication; Business sophistication;
Knowledge and technology outputs; and, Creative outputs
 STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

The Seven Pillar Scores of Global Innovation Index

Human resources is number 1 Market sophistication is number 36

Source: WIPO (2022)

 STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

Innovation Input to Output

High Income Lower Middle Income

Source: WIPO (2022)

STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

Elements of Global Innovation Index

SOUTH KOREA

INDONESIA

Source: WIPO (2022)

 STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

Global Corporate R&D Investors

SOUTH KOREA

INDONESIA

Source: WIPO (2022)

 STI POLICY COMPARION: SOUTH KOREA AND INDONESIA

QS University Ranking

SOUTH KOREA

INDONESIA

Source: WIPO (2022)

 KEY ELEMENTS FROM SOUTH KOREA TO INDONESIA

INNOVATION POLICY

The Second
New Order Era The First Post-
Old Order Era Reformation Era Post-
Reformation Era
Reformation Era

1945-1965 1966-1997 1998-2004 2005-2018 2019-now

GOVERNMENT ERAs OF INDONESIA


No Element(s)
1 Investing and improving
qualified human resources
2 Support of R&D budget
(private and government)
3 Reinforcing and reforming
public government system
4 Connecting industry-
universities/R&D agencies-
government-community
5 National politics support
6 Overseas collaborations
7 Increasing literacy of
citizens
8 Policy consistency
9 Innovation culture
10 Urgence of needs
KEY ELEMENTS FROM SOUTH KOREA TO INDONESIA
Key Elements to Adopt the Korean’s STI Policy Practice
Description(s)
Human resources is the main source to be developed massively. They are the permanent capital that will contribute to the
economic development of nation.
R&D budget is the key to push innovation activities generated from invention activities. The crowded funding from private
and government agencies should be conducted to produce the huge funding allocation.
The red-tape and bureaucratic issues must be solved, including the issues of corruption and mis-administration. STI Policy
needs to be supported by the agile and robust government system.
Silo or missed-coordination among actors of academicians, business, governments, and communities (ABGC) should be
solved to bolster the STI network at national and local level. STI Policy is not a standing alone policy, rather, it needs multiple
actors to work together
Regime is one the determinant factors to make successful STI policy. Stable and supporting political system lead to the
achievement of the STI policy goals in a nation
Increasing and closing the global partner collaboration in academics, engineering, business, and communities. STI Policy is
not domestic policy deals, but also inter-nations deals.
Literacy is the main element at the grassroots level. People (public communities) must be well educated and communicated
to approve the new things. Even, they can propose new or innovative ideas to market.
The long term STI policy (over 2 decades) is a requisite to make continuous improvement of policy. The government’s
commitment is present to make continuous STI policy in Indonesia
Every one (population) is important to work hard, think creatively and innovatively, and open towards change.
Innovation must be primary needs, not secondary or tertiary needs. Making a priority for innovating is a first measure.
THE BRIN’S ORGANIZATION STRUCTURE AND FUNCTIONS
 Governance of STI Institutions in Indonesia

The Old Order Regime The New Order Regime

PRESIDENT
The State Ministry
of Research 1973
PRESIDENT
KNRT 1976 BPIS

OPIPA MIPI DURENAS LEMRENAS Department 1

1948 1956 1962 1962
MIPI
R&D unit 1

Atom Department 2
Energy BATAN 1964 LAPAN 1963
Institute 1958
R&D unit 2

Department 3

DSN R&D unit 3

VISION OF PRESIDENT AND GBHN 1960 AS LONG TERM S&T POLICY GBHN AS LONG TERM S&T POLICY AND REPELITA AS MIDDLE TERM S&T POLICY
 HOW CAN INDONESIA LEARN FROM SOUTH KOREA ?

Governance of STI Institutions in Indonesia

REFORMATION ERA (Act No 18/2002) REFORMATION ERA (Act No 11/ 2019)

PRESIDENT

1998- 2015-
KIN 2010-2014 (2019-28 April 2021)
2014 2019
KEN 2010-2014

KEIN 2016-2020
Law of President No 78/2201

Ministry 1

2020 was
dissolved R&D unit 1

R&D Units
Ministry 2 at each
ministry

R&D unit 2

Ministry 3

BSN
R&D unit 3
BAPETEN

PROPENAS 2000-2004 AS THE AS MIDDLE TERM S&T POLICY PROPENAS 2000-2004 AS THE AS MIDDLE TERM S&T POLICY
RPJPN 2005-2025 TERM S&T POLICY RPJPN 2005-2025 TERM S&T POLICY
RPJMN 2004-2009, 2010-2014, 2015-2019 AS MIDDLE TERM S&T POLICY RPJMN 2020-2024 AS MIDDLE TERM S&T POLICY
 THE BRIN’S STRUCTURE OF ORGANIZATION
PRESIDENT
BOARD OF DIRECTORS
Chairman: member of the BPIP Steering Committee Organization of Research (OR)
HEAD OF BRIN

Deputy Chair: Minister of Finance and Bappenas OR Nuclear Energy

Secretary: professional and/or academic elements in the field of
research VICE HEAD OF BRIN OR Aeronautics and Space

Members: 6 professional and/or academic elements in the OR Earthly & Maritime

MAIN INSPECTORATE
research field MAIN SECRETARIAT
OR Life Science and Environment
3 INSPECTORATE
5 BUREAUS OR Agriculture and Food

OR Health

OR Social & Humanities

DEPUTY DEPUTY DEPUTY DEPUTY DEPUTY DEPUTY DEPUTY
Development Policy Research and Science and Research Research and Research and Local Research
Innovation Policy Technology of Human Innovation and Innovation Facilitation Innovation and Innovation OR Archeology, Language & Literature
Resources Infrastructure Utilization
OR Energy & Manufacture
1 Secretary 1 Secretary
1 Secretary 1 Secretary Deputy 1 Secretary Deputy
1 Secretary Deputy 1 Secretary
Deputy Deputy 5 Directorates Deputy 4 Directorates OR Nanoteknology & Material
3 Directorates Deputy
4 Directorates 3 Directorates 4 Directorates 3 Directorates
OR Governance, Economy & Community
Welfare

internal services + office infrastructure

external services + research Pusdatin Pusyantek Poltek TN OR Elektronics & Informatics
infrastructure technical research implementer →OR (Research
Organization) + PR (Research Center) OR still in K/L (in the process of being
integrated) Secretariat Non structural

Source: Perpres 78/.2021 tentang BRIN, Peraturan BRIN 1/2021 tentang OTK BRIN
 THE BRIN’S VISION AND MISSION 2021-2045
Vision of BRIN Mission of BRIN
The realization of a National Research and
Innovation Agency that is reliable, professional,
innovative, and with integrity in service to the
President and Vice President to realize the Vision
and Mission of the President and Vice President to
realize the President's Vision and Mission:
"Indonesia that Are Advanced, Sovereign,
Independent, and Has Personality based on Mutual
Cooperation".
1. Providing technical and administrative support as well as fast,
accurate and responsive analysis to the President and Vice
President in conducting research, development, assessment and
application, as well as inventions and innovations, implementation
of nuclear energy, and implementation of an integrated national
space as well as monitoring control and evaluation on the
implementation of BRIDA's duties and functions
2. Improving the quality of human resources and infrastructure for
integrated research and innovation in the implementation of
nuclear, and outer space at a national level and fostering the
implementation of BRIDA's duties and functions.
3. Providing effective and efficient services in the areas of
supervision, general administration, information, and
institutional relations.
OBJECTIVES THE BRIN’S OBJECTIVES AND GOALS
The realization of findings, breakthroughs and innovations
in science from the results of research, development,
assessment and application, as well as inventions and
innovations, implementation of nuclear energy, and
implementation of outer space in the context of
increasing productivity and competitiveness, improving
environmental quality and disaster resilience, as well as
climate (T1)
The realization of superior and competitive
human resources, infrastructure, facilitation and
utilization of research and innovation (T2)
The realization of good and clean governance in the
National Research and Innovation Agency (T3)
GOALS
Increased excellence of research and innovation
in science and technology, and can be used as
evidence-based policies that are in line with the
direction of sustainable development (SS1)
Increased collaboration in the development and
utilization of scientific products based on
sustainable development priorities (SS2)
Increased productivity and competitiveness of
BRIN's research and innovation resources (SS3)
Increased application of science and technology to
support environmental quality, disaster resilience, and
climate vulnerability (SS4)
Effective, efficient and accountable BRIN governance (SS5)
 THE BRIN’S 3 DIRECTIONS AND 7 TARGETS
Direction
Science and technology
resource integration (people,
infrastructure, budget)
To increase the critical mass, capacity and
competence of Indonesian research in producing
inventions and innovations as the foundation for
Indonesia Forward 2045.
Creating a global standard, open (inclusive)
and collaborative research ecosystem
For all parties (academics, industry, community,
government).
Creating a strong and sustainable research-
based economic foundation
With a digital focus - green - blue economy.
Source: Perpres 38/2018 tentang RIRN 2017-2045, Permenristekdikti 38/2019 tentang PRN 2020-2024
Target
Integration of government research institutions in 2022 year.
Transformation of business processes and research management as a whole
1 to accelerate the increase in critical mass of science and technology resources
(human, infrastructure, budget).
Refocusing on research to increase economic value-added based on
natural resources and local diversity (biological, geography, arts and
culture), in addition to catching up with science and technology.
Making Indonesia a global research center and platform based on natural
2 resources and diversity (biology, geography, cultural arts) local.
National industry facilitation and enabler conduct research-based product
development, and create an industry with a strong research base in the
long term.
To become a platform for creating superior human resources in every
3 scientific field, and an entrepreneur based on science and technology
innovation.
Increasing the direct economic impact of research "activities", and making
the science and technology sector a long-term investment destination and
foreign exchange earner.
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