Govt. Preparing Incentives for Privates

Koran Tempo, page 9

The Government will encourage private sectors to improve research in the country. In exchange, the Government will provide incentives in the form of tax holidays for researches conducted by private industries. According to Minister of Research, Technology and Higher Education Muhammad Nasir, the offer to private industries is called double tax deduction.

Director General of Research and Development Empowerment of the Ministry of Research, Technology and Higher Education, Muhammad Dimyati, said that his team has conducted a simulation for the policy. Double tax deduction will reduce expenditures of private industries for tax payments.

He expected that this policy will improve productiveness and quality of researches in Indonesia. It is understandable since the current numbers of researches and technologies in Indonesian remain low. In fact, according to Dimyati, 56 percent of private industries Indonesia have yet to have research and development unit. He added that 75% of 0.2% of the Gross Domestic Product for researches in Indonesia comes from the Government’s budget. Industrial sectors provide only 25%.

According to Nasir,   private industries apply foreign research more than domestic researches. Among their reasons are high costs, outdated technologies, and complicated regulations. He revealed that of 701 innovations made by Indonesian researchers, only nine have been applied in industries.

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