Indonesia : Promoting Research and Innovation through Modern and Efficient Science and Technology Parks Project
Macroeconomic context. In 2020, Indonesia was the world's 4th most populous nation with over 260 million people and the 7th largest economy in terms of purchasing power parity. Indonesia's annual gross domestic product (GDP) growth has averaged 5.0% since 2015, and poverty levels fell to single digits in 2018 for the first time. However, due to the coronavirus disease (COVID-19) pandemic and the restrictions put in place to contain the spread of the virus, its GDP growth contracted by 2.1% in 2020, grew at a slower rate of 3.7% in 2021 and estimated to grow at 5.0% in 2022. To sustain economic recovery, Indonesia has to safeguard health and human development; reopen the economy, create jobs, and boost consumption; and pursue broader and deeper structural reforms to raise productivity and growth.
Project Details
-
Project Officer
Chong, Fook Yen
Sectors Group
Request for information -
Country/Economy
Indonesia -
Sector
- Education
| Project Name | Promoting Research and Innovation through Modern and Efficient Science and Technology Parks Project | ||||
| Project Number | 55063-001 | ||||
| Country / Economy | Indonesia |
||||
| Project Status | Active | ||||
| Project Type / Modality of Assistance | Loan |
||||
| Source of Funding / Amount |
|
||||
| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability |
||||
| Sector / Subsector | Education / Tertiary |
||||
| Gender | Effective gender mainstreaming | ||||
| Description | Macroeconomic context. In 2020, Indonesia was the world's 4th most populous nation with over 260 million people and the 7th largest economy in terms of purchasing power parity. Indonesia's annual gross domestic product (GDP) growth has averaged 5.0% since 2015, and poverty levels fell to single digits in 2018 for the first time. However, due to the coronavirus disease (COVID-19) pandemic and the restrictions put in place to contain the spread of the virus, its GDP growth contracted by 2.1% in 2020, grew at a slower rate of 3.7% in 2021 and estimated to grow at 5.0% in 2022. To sustain economic recovery, Indonesia has to safeguard health and human development; reopen the economy, create jobs, and boost consumption; and pursue broader and deeper structural reforms to raise productivity and growth. Importance of research and development and innovation. Prior to the pandemic, the main factor constraining economic growth had been a flat productivity rate partly attributed to limited technology sophistication in Indonesian industries. Technology sophistication means using more advanced operations and technologies with extensive research and development (R&D) in production and industry processes. There is also a lack of absorptive capacity for technology and innovation knowhow among Indonesia's workforce. A study by the Asian Development Bank (ADB) and the Ministry of Finance indicates that the adoption of new technologies could result in an additional annual GDP growth of 0.55 percentage points over the next two decades, thereby putting Indonesia's economy in the high-income group. Government's strategy. Indonesia's policy on science and technology, and innovation is framed under the National Medium-Term Development Plan (RPJMN), 2020-2024, especially its pillar 1 and pillar 2. Pillar 1 emphasizes human development and mastery of science and technology, while pillar 2 focuses on sustainable economic development. The development of Science and Technology Parks (STPs) is part of the vision and mission of the President of the Republic of Indonesia and is affirmed by the Presidential Regulation Number 18 of 2020 issued on 27 January 2020. RPJMN 2020-2024 prioritizes the development of five STPs under the following higher education institutions (HEIs): Bogor Agriculture University (IPB), Institute of Technology Bandung, Gajah Mada University, University of Indonesia, and Institute of Technology Sepuluh Nopember. Indonesia has also taken important steps to strengthen its innovation system through new fiscal incentives for R&D, large investments in digital infrastructure, and new funding mechanisms to support research. |
||||
| Project Rationale and Linkage to Country/Regional Strategy | Key government stakeholders. The Ministry of Education, Culture, Research and Technology (MOECRT) is mandated to formulate and determine policies in science and technology, and coordinate the implementation of science and technology policies in HEIs. R&D activities in Indonesia are conducted by HEIs, government R&D agencies, and private sector organizations. Each HEI has an obligation to undertake the three pillars (Tri Dharma) of higher education comprising education, research, and community service. Large HEIs which are classified as Perguruan Tinggi Negeri Badan Hukum have the authority to manage the allocation of research fund received from the government and other sources, select research proposals, and usually have own innovation units, such as STPs, to support downstream R&D development. Science and technology parks. The development of STPs is one of the government's strategies for downstream R&D. An STP is a professionally managed organization to (i) serve as a platform for continuous R&D cooperation between tertiary institutions, R&D institutions, and industry; (ii) facilitate growth of innovation-based companies through incubation and/or spin off; and (iii) provide value added and quality learning services. Indonesia aims to (i) increase the STPs' innovation capabilities, (ii) improve the STPs' capacity as triple-helix nodes bringing together learning institutions, enterprises, and government agencies under common purposes of strengthening cooperation in R&D thus transforming research results into innovative commercial products; and (iii) increase national innovation products. |
||||
| Impact | Competitiveness of Indonesia's economy and sustained economic growth strengthened through research and development and innovation |
||||
| Project Outcome | |
|---|---|
| Description of Outcome | Quality and relevance of R&D and innovation system in four STPs improved |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Facilities for research and development and innovation at four science and technology parks upgraded The four science and technology parks research and development administration, partnerships, and start-up incubation strengthened Capacity of the four science and technology parks and the Ministry of Education, Culture, Research and Technology strengthened |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | C |
| 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 | Chong, Fook Yen |
| Responsible ADB Department | Sectors Group |
| Responsible ADB Division | Human and Social Development Sector Office (SG-HSD) |
| Executing Agencies |
Ministry of Education, Culture, Research and Technology |
| Timetable | |
|---|---|
| Concept Clearance | 20 May 2022 |
| Fact Finding | 13 Jun 2022 to 24 Jun 2022 |
| MRM | 20 Sep 2022 |
| Approval | 08 Dec 2022 |
| Last Review Mission | - |
| Last PDS Update | 08 Dec 2022 |
Loan 4272-INO
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 08 Dec 2022 | 21 Dec 2022 | 23 Jan 2023 | 30 Jun 2028 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 152.80 | Cumulative Contract Awards | |||
| ADB | 138.52 | 21 Jul 2023 | 0.00 | 0.00 | 0% |
| Counterpart | 14.28 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 21 Jul 2023 | 2.64 | 0.00 | 2% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | - | Satisfactory | - | Satisfactory |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
ADB Supports Development of Science and Technology Parks in Indonesia
ADB has approved a loan equivalent of $138.52 million to support a Government of Indonesia strategy to commercialize research and development and improve start-up success at four science and technology parks in Indonesia.
Tenders
Contracts Awarded
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Promoting Research and Innovation through Modern and Efficient Science and Technology Parks Project: Procurement Plan | Procurement Plans | Sep 2023 |