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Indonesia: Higher Education for Technology and Innovation Project

Sovereign (Public) Project | 52332-001 Status: Proposed

In response to the government's vision and plan to strengthen the role of higher education as a skills and innovation driver, the project will invest in two HEIs ITS in East Java, a leading public technological institution in Indonesia specializing in science, engineering, and arts; and UNILA in Sumatra, one of Indonesia's best public universities outside Java, in the field of medical education. The two HEIs are included in MORTHE's priority investment list, given their high level of readiness, capacity, commitment and potential to become top universities in specific specializations. Furthermore, ITS has strong linkages with the private sector as they conduct R&D relevant for enterprises in the manufacturing sector, leading up to the creation of prototype and assessing their commercial viability. Support to ITS will strengthen its capacity to engage in demand-driven R&D, while creating positive spillovers among students and faculty.

Project Details

Project Officer
Lynnette Perez Southeast Asia Department Request for information
Country
  • Indonesia
Sector
  • Education
 
Project Name Higher Education for Technology and Innovation Project
Project Number 52332-001
Country Indonesia
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Higher Education for Technology and Innovation Project
Ordinary capital resources US$ 90.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Education / Tertiary

Health / Health sector development and reform

Information and communication technology / ICT strategy and policy, and capacity development

Gender Equity and Mainstreaming Effective gender mainstreaming
Description In response to the government's vision and plan to strengthen the role of higher education as a skills and innovation driver, the project will invest in two HEIs ITS in East Java, a leading public technological institution in Indonesia specializing in science, engineering, and arts; and UNILA in Sumatra, one of Indonesia's best public universities outside Java, in the field of medical education. The two HEIs are included in MORTHE's priority investment list, given their high level of readiness, capacity, commitment and potential to become top universities in specific specializations. Furthermore, ITS has strong linkages with the private sector as they conduct R&D relevant for enterprises in the manufacturing sector, leading up to the creation of prototype and assessing their commercial viability. Support to ITS will strengthen its capacity to engage in demand-driven R&D, while creating positive spillovers among students and faculty. Support to UNILA reflects the government's focus on human capital development in light of 4IR, within which health sector is prioritized as a high-growth industry, and with direct benefits to citizens through health outcome improvement. The project will integrate advanced technologies in teaching and research, expanding the two HEIs' capacity to deliver market-relevant programs and high-quality research to support innovation.
Project Rationale and Linkage to Country/Regional Strategy

With the advent of the fourth industrial revolution (4IR), new and emerging technologies such as artificial intelligence, robotics, internet of things and 3D printing, technological transformation and innovation are taking place at a much faster pace, reaching all sectors of the economy. But, leveraging technological transformation for innovation and higher economic growth requires skilled and educated workers. Studies have shown that most new work in high-value and technology-driven sectors require high-level skills. The availability of skilled workers to meet the demands of high-tech and high-value industries and services in Indonesia is critical in order to boost the country's ability to achieve desired growth.

Higher education institutions (HEIs) play a vital role in providing the highly skilled workers to meet labor market demands. However, the current shortage of skilled professionals in high growth sectors and high unemployment of higher education graduates reflect a disconnect between HEIs on one side, and firms, employers, and other skills and research users, on the other. Half of the labor force is underqualified for the jobs they are performing while 10% of the labor force is overqualified. This disconnect is particularly prevalent in areas related to technology development and application, and innovation. In 2017, less than 20% of graduates held degrees in technology-relevant fields such as engineering with few women among them. Weaknesses in the higher education system partly explain the low labor productivity in Indonesia, relative to neighboring countries

Impact Human capital enhanced to improve competitiveness and productivity (forthcoming RPJMN 2020 2024)
Outcome Quality and relevance of targeted higher education institutions improved
Outputs

Cutting edge education and research in priority sectors delivered by ITS

Medical education and research capacity of UNILA strengthened

Geographical Location Bandar Lampung, Sumatra, Surabaya
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Lynnette Perez
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Human and Social Development Division, SERD
Executing Agencies
Ministry of Research, Technology and Higher Education
Building D, Jalan Jenderal Sudirman,
Pintu Satu, Senayan Jakarta 10270
Timetable
Concept Clearance 30 Sep 2019
Fact Finding 16 Dec 2019 to 20 Dec 2019
MRM 25 Feb 2020
Approval -
Last Review Mission -
Last PDS Update 03 Oct 2019

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Contracts Awarded

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Procurement Plan

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