published @ The Jakarta Post
It was Aug. 10, 1995. An Indonesian-made turboprop aircraft, the B-250, touched down after completing its maiden flight. The nation was overwhelmed with a proud and can-do spirit. The N-250 was the next stage of Indonesia’s aviation technology progression, followed by the CN-235 that was developed in a joint venture with Spain’s Casa. The N-250 was the result of planned technology development.
Back then, without democracy, the Indonesian president developed the nation assisted by able ministers who were free from political interest. Indonesia was ready for the takeoff stage of development. Unfortunately, a financial crisis emerged. The rupiah plummeted, prices skyrocketed and the International Monetary Fund (IMF) intervened.
Guided by the IMF, the course of economic development changed. It is said there were two schools of thought to develop Indonesia’s economy. Simply put, “Habibienomics” emphasized value-added technology and “Widjojonomics” largely concerned itself with macroeconomics. The latter prevailed and high tech industries were no longer funded. The Engineers stepped aside, the economists lead the way. The IMF had driven the last nail into Indonesia’s high technology coffin.
Indonesia has halted its technological progress. Worse, in the democratic era, the president must please political alliances rather than take risks and finance new technologies. Long-term goals only reach as far as the next election.
In the meantime, our ASEAN neighbors flex their muscles. During 2005-10, the number of full-time equivalent researchers per million people was 6,173 in Singapore, 365 in Malaysia, 316 in Thailand, 90 in Indonesia and 78 in Philippines. Research and development expenditure as a percentage of gross domestic product (GDP) was 2.43 in Singapore, 0.63 in Malaysia, 0.21 in Thailand, 0.11 in Philippines and 0.08 in Indonesia. Patent applications filed by residents were 1,076 in Malaysia, 1,056 in Singapore, 927 in Thailand, 541 in Indonesia, and 186 in Philippines. These indicators support the reality.
Singapore is a success story as it has shifted its economy to manufacturing and then to being knowledge-based. After Asia’s financial crisis in the late 1990s, Singapore began its Technopreneurship Investment Fund (TIF) to lure the world’s leading venture capitalists to fund domestic knowledge-based start-ups.
Malaysia is attempting to transform itself into a developed nation. Malaysia’s government also founded Agensi Inovasi Malaysia, an investment company to fund start-ups. Vietnam, the new kid on the block, is also seriously addressing new kinds of economic development.
In terms of technology (or anything else), during President Susilo Bambang Yudhoyono’s 2004-2014 stint, there has been nothing to be proud of. Despite “good” macroeconomic indicators, there’s no longer an ambitious dream to achieve something great. Strategic industries are almost abandoned. Scientists stand idle and some go abroad to quench their technological passion.
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