The Indonesian Science Fund, Paving the Way for Indonesia’s Science & Research

President Joko Widodo signed Presidential Decree No 9/2016 on 29 February 2016, establishing the long-awaited Indonesian Science Fund (ISF), and giving Indonesia for the first time a financial infrastructure to increase national investment in research and development.

The Indonesian Science Fund, Paving the Way for Indonesia’s Science & Research

President Joko Widodo signed Presidential Decree No 9/2016 on 29 February 2016, establishing the long-awaited Indonesian Science Fund (ISF), and giving Indonesia for the first time a financial infrastructure to increase national investment in research and development.

ISF is an independent body under the Indonesian Academy of Sciences (Akademi Ilmu Pengetahuan Indonesia, AIPI) that raises and channels funds from government and non-government sources to support scientific research on a competitive basis. This is a huge milestone in Indonesia’s scientific development given the fact that Indonesia’s gross R&D investment is less than 0.1 percent of GDP, almost too low to appear on the published charts. The new funding model under ISF allows for multiyear and long-term research projects which is a breakthrough given the existing bureaucratic financial administration currently burdening state-funded research. This is one important step towards strengthening a scientific tradition in Indonesia. 

Paving the Way

Starting in 2014, the Australia-Indonesia bilateral program The Knowledge Sector Initiative (KSI) has supported AIPI in efforts to turn ISF from concept into reality. 

KSI support was committed during the ISF soft launch held on 18 December 2014, attended by the Minister of Finance of Indonesia, Bambang P. S. Brodjonegoro and others. KSI support to ISF included communication capacity building, which was primarily to help raise ISF profile to the national and international audiences. This had been resulting in the successful formal launch of ISF by the Minister of Finance of Indonesia, Bambang P. S. Brodjonegoro and the State Minister of National Development Planning, Andrinof Chaniago on 27 May 2015.

At this high-level event attended by representatives of US and Australian governments, the Minister of Finance announced that the government would provide funding for scientific research through ISF, from the Indonesian Endowment Fund for Education (Lembaga Pengelolaan Dana Pendidikan, LPDP). This is important because it represents the commitment of the Government of Indonesia to providing funding for competitive, merit-based scientific research through an independent fund like the ISF. The ISF funding scheme is similar to the National Science Foundation in United States, which provides state funding for independent scientific research. 

A Memorandum of Understanding (MoU) between AIPI and the Indonesia Endowment Fund for Education (LPDP) to fund ISF for five years was signed on 7 August 2015, allowing ISF to support fundamental research in order to create new knowledge as a basis for innovation.  

In addition to funding from the Government of Indonesia, the establishment of the ISF also enables funding for scientific research to be provided by Indonesian and international philanthropic organizations, the private sector, and international donors. The significance of the ISF as a mechanism for international collaboration through research partnerships was recently recognized by President Obama and President Widodo, as the ISF was mentioned in the Joint Statement from both presidents on the occasion of President Widodo’s visit to the US on 26 October 2015:

“The United States and Indonesia are committed to advancing bilateral cooperation in scientific research and higher education partnership through expanding opportunities for scientist-to-scientist collaborations in priority areas outlined by the Science & Technology Agreement including marine protection, agricultural technology, health and renewable energy. As a centerpiece of supporting this cooperation, the establishment of the Indonesian Science Fund represents a milestone in Indonesia’s scientific development and the creation of new opportunities for connecting Indonesian research to the global scientific community.” https://www.whitehouse.gov/the-press-office/2015/10/26/joint-statement-united-states-america-and-republic-indonesia 

Currently, KSI’s support to ISF continues to strengthen ISF institutional capacity by providing technical and legal support. A National Coordinator has now been recruited, and is responsible for the design and preparation of ISF, the setting up of the legal framework, working arrangements with the LPDP, grants management and monitoring systems, as well as building national and international networks. KSI’s support also includes the hire of a legal firm that will provide legal and institutional expertise for ISF. 

The Way Forward

KSI is continuing its support to the newly established ISF during this critical bridging period to ensure the institution is ready to manage funds from the Indonesian Endowment Fund for Education (Lembaga Pengelolaan Dana Pendidikan, LPDP).

On 30 March 2016 the first Scientific Board of ISF meeting will take place. AIPI aims to launch the first Request for Proposal (RFP) for research grants by June 2016. The first batch of ISF funding will use a new award selection scheme, which selects grant recipients based on their track record and potential. International and independent peer review will also be made available to select the projects. 

With the funding and selection mechanisms in place, ISF will contribute to an increase in world-class research to support Indonesia’s competitiveness and economic growth

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