ADB approves over $138m loan to improve start-up success at science and technology parks in Indonesia
ADB brings substantial experience and knowledge in human capital development, R&D, and innovation from Indonesia and across the region to add value to this project.
The Asian Development Bank (ADB) has approved a loan equivalent of $138.52 million to support a Government of Indonesia strategy to commercialize research and development (R&D) and improve start-up success at four science and technology parks (STPs) in Indonesia.
The Promoting Research and Innovation through Modern and Efficient Science and Technology Parks Project will support STPs at the public higher education institutions of Bandung Institute of Technology in Bandung, Gadjah Mada University, IPB University, and University of Indonesia. The project will help upgrade R&D and start-up incubation facilities, provide grants to conduct applied research and incubate start-ups and upgrade the expertise of STP researchers and capability of research administration staff.
“Limited technological sophistication by industries and a lack of absorptive capacity for new technology can reduce productivity and constrain economic growth,” said ADB Senior Social Sector Specialist for Southeast Asia Fook Yen Chong. “With this project, Indonesian industries working with universities’ STPs will gain the know-how needed to better use resources, create new products, and expand into new markets. We expect that the adoption of new technologies in Indonesia could add 0.55 percentage points to annual average gross domestic product growth over the next 2 decades, pushing Indonesia’s economy into the high-income group.”
The project will help the STPs focus on various disciplinary fields aligned with Indonesia’s priority economic sectors such as energy (renewal energy and storage technology), transport (electric and autonomous vehicles), information and communication technology (smart technology), agro-processing and food (functional food and halal food products), and pharmacy and medicine. It will also strengthen public–private R&D collaboration; increase workforce competitiveness and productivity, particularly as new technologies are developed and adopted; and promote youth entrepreneurship and job creation.
ADB has incorporated international best practices in designing the project. It will deliver demand-driven R&D in tandem with private enterprises and communities to create a sustainable start-up ecosystem. To align research areas with national priorities and improve the R&D ecosystem, the project will create synergies with several ADB projects in Indonesia.
ADB brings substantial experience and knowledge in human capital development, R&D, and innovation from Indonesia and across the region to add value to this project. It will also explore nurturing start-up incubation through its Open Innovation Platform and ADB Ventures.
The project is in line with the government’s National Medium-Term Development Plan, 2020–2024, which emphasizes human development and mastery of science and technology, and ADB’s country partnership strategy, 2020–2024 with Indonesia.