Research and Innovation Funding Policy in Indonesia in the Post-2019 National Science and Technology System Era

Abstract

This paper aims to examine the regulatory framework for funding innovation and science research in Indonesia, with a specific focus on the 2019 National Science and Technology System Law implementation. Through a directed qualitative content analysis of sixteen national laws, the present study identifies various shortcomings and fragmentation of governance frameworks, instruments, public-private partnerships (PPPs), and outcome-based performance assessment mechanisms. The paper highlights important shortcomings like the lack of thorough integration of innovative funding mechanisms and homogeneous performance assessment frameworks with an orientation towards outputs. Relying on international policy reports—including the OECD's and the United Nations Economic Commission for Africa's—as well as supported by corresponding academic scholarship, the study identifies the necessity for adopting performance assessments with an orientation towards outputs, regulatory harmonization, as well as enhanced policy coherence between the federal government and regional administrations. This study concludes with strategic recommendations with a view towards enhancing the effectiveness, transparency, and inclusiveness of Indonesia's innovation and science funding framework. These recommendations include enhancing coordination across multiple ministries, expanding the reach of output-based funding schemes, adopting a national PPP framework, and introducing a matching fund scheme for linking efforts between federal and local governments.