According to Cooperatives and SMEs Minister Teten Masduki, many micro, small, and medium enterprises (MSMEs) get established without referring to the results of research and innovation, making it difficult for their businesses to develop optimally.
"If research results can be commercialized, we already have the ecosystem," he said during his visit to Soekarno Science and Technology Area, Bogor, West Java, on Friday, according to a press release.
Masduki noted that Indonesia's economy is greatly supported by the manufacturing industry, particularly mining and oil palm plantations.
There are many other potential resources that can be utilized and developed as new economic sources.
Another problem is that digital technology innovation from startups is mainly targeting payment and e-commerce needs.
Meanwhile, breakthroughs are needed to provide technological tools that can support production sectors such as agriculture, fisheries, and plantation sectors.
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This issue has come up because the majority of startups have not been established based on in-depth research, he said.
The minister expressed the hope that MSMEs and startups in Indonesia will replicate the MSME business ecosystem in Korea, Japan, the Netherlands, and Australia, which is based on research results, to create new economic sources.
BRIN head Laksana Tri Handoko welcomed Masduki's initiative and expressed his agency's readiness to synergize with the Ministry of Cooperatives and SMEs.
BRIN has several research and development (R&D) facilities and resources that can be utilized by MSMEs and startups to develop their products and businesses.
"We also invite partners of business players to be present here, including inviting foreign investors, not to sell formulas but to use our facilities as R&D centers," Handoko added.
Soekarno Science and Technology Area has been deemed suitable for national startup and entrepreneurship development because it has modern facilities, such as advanced laboratories and research facilities that can be used for testing products.
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Translator: Shofi Ayudiana, Raka Adji
Editor: Yuni Arisandy Sinaga
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