Historical Analysis of Research and Development Institutions in Indonesia

A well-educated workforce is crucial for Indonesia as it engages with the Association of Southeast Asian Nations (ASEAN) Economic Community because the country must foster the ability to compete in an increasingly fluid and competitive regional landscape. However, Indonesia’s international standard research output has been inadequate. Although the country has over 3,000 universities, these institutions vary widely in their quality and face a shortage of qualified academics with doctoral degrees on their staff. It is commonly known that Indonesian scientists living and working abroad are very reluctant to return to Indonesia due to the lack of material and non-material rewards they are offered in their home country. The State Budgeting and Expenditure allocation on Research and Development (R&D) evinces a pattern of exponential decline from 1969 to 2009. The total R&D budget ratio assigned by the Jokowi administration is still the same as previous years at 0.8 percent. Using the new institutionalism perspective offered by Charles E. Bidwell, the current study found that the R&D sector is not accorded priority by either the public or the government. As the executor, the government’s development plan is grounded on issues raised by the community (decentralization). However, the community itself is still fueled by a consumerist egotism and is thus struggling at the ideological, prestige, and psychological levels.