Laying stronger footing for Indonesia's research push

Jakarta (ANTARA) - The Indonesian government has boosted the national research budget by Rp4 trillion (approximately US$224.6 million), reaffirming its commitment to positioning research and innovation at the core of national development.

In line with this commitment, more than 150 researchers from the National Research and Innovation Agency (BRIN) were invited to meet President Prabowo Subianto at the Merdeka Palace, Jakarta, on August 6, 2026, to present and showcase their work directly.

The work spanned 12 innovation clusters, ranging from energy, food, healthcare, aerospace, and maritime studies to the environment, advanced materials, digital and artificial intelligence, transportation, defense, social sciences and humanities, and affordable consumer products.

Over 150 products were on display, including nuclear technology, ready-to-drink water systems, innovative roofing tiles, and aircraft designs.

BRIN was established in 2021 through the merger of several government research bodies: the Indonesian Institute of Sciences (LIPI), the National Nuclear Energy Agency (BATAN), the National Institute of Aeronautics and Space (LAPAN), the Agency for the Assessment and Application of Technology (BPPT), and the Eijkman Institute for Molecular Biology.

This consolidation was designed to pool research resources previously scattered across dozens of ministries and agencies, while eliminating duplicate research programs.

The gathering at the Palace on August 6 marked the first time BRIN has presented the full scope of this unified effort to the president, yielding a more substantial policy: an explicit call to ensure research can be commercialized into market-ready products.

For years, Indonesia’s research spending has stagnated between 0.28 percent and 0.3 percent of gross domestic product (GDP), or roughly Rp5 trillion to Rp7 trillion annually, and even dipped closer to Rp3 trillion to Rp4 trillion following budget efficiency policies in 2025.

That figure lags far behind the levels seen in other countries, such as Malaysia at 1.15 percent of its GDP, China at 2.1 to 2.5 percent, Japan at 3.65 percent, and South Korea at over 4 percent.

Former BRIN Head Laksana Tri Handoko, who served from 2021 to 2025, once noted that the ideal research budget for an economy of Indonesia’s size would be 1 percent of GDP, equivalent to hundreds of trillions of rupiah per year.

The Rp4 trillion nearly doubles the BRIN budget from its lowest point following the 2025 efficiency measures. This signals that long-standing research funding concerns raised by the scientific community are beginning to be addressed through concrete fiscal policies.

This additional allocation is channeled through three routes mapped out by BRIN: boosting innovation for micro, small, and medium enterprises (MSMEs); strengthening national industrial competitiveness in partnership with sovereign wealth fund Danantara, which serves as the state strategic investment holding; and facilitating advanced technology collaboration with international partners.

These three mark a shift in how the government approaches research—moving from a standalone academic pursuit to a direct input for national investment and supply chains.

BRIN's collaboration with Danantara is already underway and yielding measurable results, with joint research conducted in the fields of battery, transportation, shipbuilding, food, and the electric vehicle ecosystem.

Danantara recorded Rp300.1 trillion in downstream industry investment during the first half of 2026, accounting for 29.7 percent of the total Rp1,010.6 trillion in national investment over the same period.

A portion of this investment materialized in joint advanced-materials development between MIND ID, Len Industri, Krakatau Steel, and Perusahaan Mineral Nasional (Perminas)—a collaboration that directly engages research institutions like BRIN in technology transfer.

A similar pattern is taking root at a more technical level. BRIN regularly hosts the "BRIN Goes to Industry" forum to connect research findings with the specific needs of key sectors, including mining.

In the academic sector, BRIN continues to strengthen its partnerships with universities like Brawijaya University through strategic dialogues that highlight the role of higher education institutions in the national research ecosystem.

This series of collaborations proves that the president’s directive on downstreaming was no sudden impulse, but rather a reinforcement of a research-industry trend that had already been building throughout 2026.

The August 6 meeting served as a consolidation point rather than a starting line, bringing together the highest political legitimacy—the president’s presence—with institutional mechanisms already underway at BRIN, Danantara, and industry partners.

Going forward, the success of this policy will be measured by how innovations, such as those showcased at the palace, can reach and impact MSMEs, strategic state-owned enterprises, and domestic industries.

BRIN already possesses the mechanisms required to achieve this, namely technology licensing, joint research, and support for research-driven startups that must be scaled up in tandem with the newly approved funding.

Addressing the researchers at the meeting, President Prabowo emphasized that nations mastering science and technology will advance far faster than those merely relying on their natural resources.

This is also aligned with Indonesia's goal of becoming a developed nation under the Golden Indonesia 2045 vision, as the country’s demographic dividend is expected to transform into an innovation-driven economic force.

Within this framework, research 'downstreaming' or commercialization is positioned as part of a long-term strategy to transform Indonesia into a creator of technology, rather than a mere consumer of imported goods.

Supported by additional funding and established partnerships, Indonesia now stands on firmer footing to achieve this ambitious goal.

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