University, Industry, and Government Partnership: Its Present and Future Challenges in Indonesia

This paper presents the current situation of the university–industry–government partnership in Indonesia, in the context of university readiness to contribute to the government strategy as outlined in the MP3EI (Master plan for Acceleration and Expansion of Indonesia Economic Development) 2011-2025. Since the higher education system is highly diversified in term of its capacity to contribute, the paper reviews the status in 3 different types of institutions: research, production, and human resources development oriented. Initial finding shows that the government allocated very small budget for research (0.08% of GDP) and universities play a critical role in the national research capacity. Although research is still considered as very low in the government priority setting, the number of patents and international publications has significantly increased in the last few years. Collaborative activities have been carried out to date include, service and training, patenting, collaborative R&D, networking events, industrial collaboration for education, incubators, SME support, and science parks. University and industry appear to be still in the state of “institutional sphere” instead of “consensus space” lacking understanding about each other. The uncertainty about institutional framework available for universities drives academics to develop partnership with industries individually instead of institutionally. Universities feel that there are only few domestic companies with interest and/or capacity to innovate, with the bulk of industry concentrated in assembly operations. Implementation of MP3EI outside Jawa might require expertise and capacity that are only available in institutions in Jawa, that it is essential to develop mechanisms for building local institutional capacity. We conclude that all 3 institutional spheres require further development before each can take purposeful action. Having said that, the study team found a number of cases whereby the 3 parties are willing, even eager, to develop partnerships. With an appropriate and comprehensive strategy, there is significant potential to create productive environment to be developed into knowledge, consensus, and innovation space.