Press Release
No. 19/SP/HM/BKKP/I/2020

Tangerang Selatan – Three minister of the Indonesia Maju Cabinet, which are the Minister of Research and Technology/Chairman of National Agency for Research and Innovation Bambang Brodjonegoro, Minister of Health Terawan Agus Putranto, and the Minister of Industry Agus Gumiwang Kartasasmita were the speakers on the Plenary I in the series of the 2020 National Coordinating Meeting of the Ministry of Research and Technology agenda, in the Graha Widya Bhakti Auditorium, Research Center for Science and Technology (Puspiptek) Complex, Serpong, South Tangerang, Thursday (30/1). On the Plenary I, the three minister were discussing the Research, Development, Assessment, and Application (Litbangjirap) System of the National Science and Technology for the Advanced Indonesia.

Minister Bambang stated that the ministry is currently building the organizational structure of his ministry to integrate the Research, Development, Assessment, and Application (Litbangjirap) and ensure the technological readiness from stage 1 to 9 to downstream the research outputs and tighten the academic researchers and industries relationships.

“This might look simple but it is not easy. We should bridge the connectivity between researchers and industries. In triple helix concept, it is government’s job, and that includes us. Most importantly, the roles of other ministries with more specific fields,” said Minister Bambang.

In the event, Minister Bambang highlighted the research funding matter which is currently dominated by the government. Moreover, he stated that this gives the impression that the researches are only needed by the government. Meanwhile the R&D funding from private sectors are still low. Minister Bambang hoped that the research initiation started by the government would gain interest from the private sectors, to make the R&D more mainstream in the business world to support their business to be more competitive and sustainable.

Other obstacle from private sectors in conducting R&D is that the government has not yet set the incentive policy for R&D which really attracts the private sectors. Hence he encourage the super tax deduction policy for companies, both multinational and domestic.

With the policy, Indonesia which has always been the market target, could be the place for industrial R&D. He explained that the industries preferred to conduct the R&D activities abroad these times, due to the bigger tax deduction in other countries.

Minister of Industry, Agus Gumiwang Kartasasmita, has a shared opinion. In encouraging bigger investments, one of the strategies is to issue the super tax deduction policy, especially for investor category which develop R&D activities in Indonesia.

“We are giving 300% for potential investors which place the R&D activities in Indonesia. We are currently waiting for the Regulation of the Minister of Finance,” he claimed.

Minister Agus stated that so far there has been many industries, especially automotive industries, which conduct R&D activities in Indonesia. The super tax deduction policy plan was positively responded by the industries.

“I am grateful and proud that we all have shared opinion regarding the importance of innovation. The downstreaming matter should also be encouraged in Indonesia. This will be the main program,” said Minister of Industry.

He claimed that the Ministry of Industry has started identifying coal mineral commodities, in which will be regulated regarding the reduction policy and export ban, and one of them is nickel. Therefore, big industries will be forced to come and open the production activities as well as the research activities in Indonesia.

Domestic Medicine Research

Research activities in Indonesia which are accumulatively conducted by universities and R&D institution currently have two prominent research fields, both from the quantity and the research fee. The two research fields are health and agriculture. The agriculture researches are obviously related to food, while the health researches are related to drugs and medicine among other things.

“The problem is, economically speaking, the materials for drugs are still 90% imported. This became the main concern among the scientists in medicine and pharmacy field, so it is very normal that the research activities in health became dominant,” said Minister Bambang.

Minister Bambang was hoping that the Minister of Health will give the explanation. The main problem this far is the huge gap between the researchers and the commercial world. There has been no industry commercialize the innovations in medical and health.

“In this occasion, the first concern is how is the roadmad of the Ministry of Health to reduce the imported materials. With our biodiversity, there have been more parties conducted the extraction to produce the registered herbal medicines, which we will then encourage to be clinical trial drugs. Our ministry would want to encourage them to produce original modern medicines from Indonesia,” said Minister Bambang.

Minister Bambang then explained the second concern for the Minister of Health to encourage the doctors in many hospitals to start switching to use medical tools made by Indonesia. Minister Bambang also asked for the large number of domestic medicine to be enlisted to the National Health Insurance system, so the domestic medicines would be growing rapidly.

“We will fix and improve them step-by-step, and I am optimistic we can succeed. Because our market are already comfortable with those drugs, so we need to convince the market that Indonesian-made medicines are also safe to consume,” said the Minister of Health, Terawan Agus Putranto.

Regarding the domestic medicines listed on the National Health Insurance system, there has been the most expensive implantation drug from Indonesia so far. From the materials to the production are conducted domestically. Hence, the phytopharmacy has been growing rapidly.

“Our experts have been conducting the activities. The only problem is in the marketing matter. Is is extremely important to convince the market to consume our drugs and convinced that they are safe and our domestic drugs are as good,” said Minister Terawan.

Partnership and Public Communication Bureau
Ministry of Research and Technology/National Agency for Research and Innovation