Addressing the disconnect between Indonesian R and D and the needs of the Indonesian economy

In 1995 a World Bank Staff Report on the Indonesian science and technology system identified what it called a major disconnect between the research of the publicly funded research and development agencies and the needs of the Indonesian economy. In response to that report the Government of Indonesia obtained a loan from the World Bank to establish the Industrial Technology Development Project (ITDP) to address the problem in the Agency for the Assessment and application of Technology (BPPT), the Indonesian Institute of Science (LIPI) and the Ministry of Industry and Trade. The Commonwealth Scientific and Industrial Research Organisation (CSIRO), from Australia was selected as the twining partner for LIPI. The project was called Management and Systems Strengthening –LIPI (MSSLIPI), commenced in 1997 and concluded in July 2001. MSS-LIPI had three components. The aim of the first component was to implement modern electronic information and management systems. The second component was to establish systems for the management of technology including business development, contract administration, intellectual property management and public affairs and communication. The final component was with change management and the development of future leaders. The paper examines why some aspects of the project were very successful and other aspects less so. The reasons have to do both with the external environment in which LIPI is operating, and the stultifying effect this has on attempts to change the organisation. Some conclusions will be drawn which will be valuable to other countries planning changes in their public R&D systems.