Indonesia's Research Budget is Minimal

Indonesia's research budget remains extremely low. The 2017 Indonesian Economic Projection book, titled "Testing Indonesia's Economic Resilience," states that the research budget constitutes only 0.3 percent of the Gross Domestic Product (GDP). This figure is significantly lower than that of other countries.

This low research budget, according to INDEF (Institute for Development of Economics and Finance), reflects the fact that efforts to develop industrial technology in Indonesia have not become a major national agenda. Past government efforts have often been inconsistent in supporting technological development. For example, the development of a national car has stalled, and the country continues to import machinery and equipment for its industries.

The failure to adopt and develop technology, particularly in the industrial sector, traps Indonesia in a cycle of dependence on other countries. To break free from this trap, the government must seriously pursue technological development by increasing the research budget. One way to achieve this is by mandating technology and knowledge transfer from foreign investors entering Indonesia. With a high research budget, South Korea has successfully transformed itself into a global technological giant.