Government Boosts Research Downstreaming to Encourage Utilization in Industry

Bandung, dkst.itb.ac.id – The government continues to strengthen the national innovation ecosystem by encouraging the more tangible utilization of research results in the industrial sector. This commitment was reaffirmed in the Coordination Meeting on the Utilization of Research and Innovation Results: Synchronization of Patent Downstreaming in Higher Education and Industry, organized by the Coordinating Ministry for Human Development and Cultural Affairs (Kemenko PMK) on June 24, 2025, in Jakarta.

Led by the Deputy for Coordination of Education Quality Improvement, this meeting served as a strategic cross-ministerial forum involving research institutions and universities to formulate concrete solutions to accelerate patent downstreaming and the commercialization of local innovations.

One of the main issues raised was the low utilization rate of intellectual property generated by research institutions and academics. Out of 859 patents registered at the National Research and Innovation Agency (BRIN), only about 30 patents (approximately 3%) have been successfully licensed or commercialized. Although this figure is in line with the global average (3%-5%), the government assesses that the potential of domestic innovation should be able to generate a much greater economic impact.

The low contribution of the industrial sector in funding and utilizing research was also highlighted. Currently, private contribution to research financing in Indonesia is still around 16%, lagging behind neighboring countries like Malaysia and Thailand, which have surpassed the 20% mark.

BRIN encourages increased synergy between universities, research institutions, and the business world. Proposals include the formulation of more attractive fiscal incentive policies as well as strengthening the role of innovation brokers to bridge industrial needs with available research results.

The micro, small, and medium enterprises (MSME) sector was also identified as a group needing support in adapting research-based technology. The Ministry of Cooperatives and SMEs highlighted the importance of developing a research downstreaming roadmap based on the needs of leading regional commodities. Joint production houses in 16 provinces were cited as potential assets that can be utilized for testing and developing small-scale technology.

Nevertheless, challenges remain, particularly regarding the provision of suitable equipment, difficult-to-access technological information, and the need for economical and budget-friendly approaches for MSME actors.

LPDP and Technical Ministry Support

The Indonesia Endowment Fund for Education (LPDP) noted that it has allocated over IDR 3 trillion since 2013 to fund more than 3,000 research activities, resulting in over 2,000 intellectual properties. Even so, Indonesia's ranking in the Global Research Index is still not optimal.

In response, LPDP emphasized the importance of involving the industry from the research design stage through initial business assessments, as well as selecting research topics that have local characteristics but the potential to excel in the global market.

The Ministry of Industry conveyed its support through the development of a manufacturing center in Purwakarta, West Java, which is expected to become a collaboration hub between universities and industry. Since 2006, the Ministry of Industry has gathered more than 120 innovations and is currently reviewing incentives such as a super tax deduction for industries adopting local research results.

The Directorate of Downstreaming and Partnerships, Ministry of Higher Education, Science, and Technology also highlighted the importance of curation and matching fund schemes as a bridge between academics and business actors.

Higher Education Initiatives: Many Breakthroughs, Still Need Support

Universities such as IPB, UGM, ITB, UI, and Telkom University presented various initiatives to strengthen research downstreaming. IPB, for example, has trained more than 500 research-based startups, while UI applies a 70:30 incentive system in intellectual property management for inventors.

However, academics also noted a number of obstacles, including the lack of human resources trained in downstreaming, weak standardized research management systems, and a lack of partnerships with international industries. A large portion of research results are also not yet market-driven, making them difficult to commercialize.

To bridge these challenges, universities are encouraging the establishment of a technology marketplace, the formulation of legal protection regulations for researchers, and the strengthening of the intermediation function capable of "translating" academic research into a business format.

Strategic Steps: Synergy and National Consortium

In his directives, the Deputy of Kemenko PMK conveyed five strategic steps:

1. Formulating supporting regulations and sustainable funding to strengthen the national research ecosystem.
2. Forming a National Research Downstreaming Consortium led by legal entity state universities (PTN-BH).
3. Mapping innovation potential and industry needs based on market demand.
4. Promoting innovation through showcases, pitching, and developing a technology marketplace.
5. Intensively involving technical ministries and agencies such as BRIN, Ministry of Finance (Kemenkeu), and Bappenas in planning and implementing downstreaming policies.

These steps are aligned with the 2025–2029 National Medium-Term Development Plan (RPJMN), which makes innovation a crucial pillar in the knowledge-based national economic development strategy.

This coordination meeting demonstrated the government's seriousness in uniting the power of academic research with industrial realities. Research downstreaming is no longer an option, but a necessity in building the nation's competitiveness.

With strengthened cross-sector synergy, adaptive regulations, and targeted policy support, the government hopes that Indonesia's intellectual property can be increasingly optimized to support economic growth, enhance technological independence, and create a real impact on society.