Exploring the Role of the Ministry of Research and Technology in Printing New Startups from the Upstream Side

In the new cabinet announced some time ago, the Ministry of Research and Technology (Kemenristek)/National Innovation Research Agency (BRIN) emphasized its role in producing more new startups on the upstream side. Minister Bambang Brodjonegoro promoted various programs related to this when speaking at NextICorn 2019, last week.

As a note, startup ecosystem development in the Working Cabinet, previously placed in Kemenkominfo and Bekraf, which is now merged into the Ministry of Tourism and Creative Economy (Kemenparekraf). Indonesia once had the Ministry of Tourism and Creative Economy during the reign of Soesilo Bambang Yudhoyono.

The task is now divided into Kemenkominfo and the Ministry of Research and Technology in the Advanced Indonesia Cabinet. Minister Bambang emphasized that his party had discussed it thoroughly with the Minister Kemenkominfo Johnny G. Plate on the division of labor.

Bambang ensured that the development of technology-based startups that was being promoted did not overlap with the program Kemenkominfo, because the Ministry of Research and Technology is more focused on development on the upstream side.

The Ministry of Research and Technology has a special directorate called the Directorate of Technology-Based Pioneer Companies, tasked with producing as many startups as possible. This directorate has actually existed since Mohamad Nasir (previous minister) and runs startup development program.

Unfortunately, the echo is less audible. Even have the impression of competing with Kemenkominfo with the 1000 Startup Digital program, because they are more or less similar to one another. Bambang emphasized that this would not overlap.

"We are more upstream, responsible for creating as many startups as possible and ensuring the continuity of these startups. Meanwhile Kemenkominfo will be more in charge downstream, responsible for the infrastructure," said Bambang.

He explained that the directorate already has a PPBT (Technology-Based Startup Company) program. Selected startups will receive a number of incentives and coaching. This program has been initiated since 2015.

In addition, the Ministry of Research and Technology/BRIN also has several potential 'Science Techno Parks (STP)' spread across several regions in Indonesia. So that the resulting innovations can be commercialized into mass products, the fostered startups are supported by the availability of business incubation in the various STPs.

"This means that the startups that we have fostered, we take care of track record-her to bethe nextunicorn', although it may take a long time," he added.

The PBBT program is divided into three stages. First, CPPBT (Prospective Technology-Based Startup Company) or better known pre-startup tasked with finding technology-based startups that are ready to be commercialized.

Second, PBBT (Technology-Based Startup Company) or startup which is an incubation program. Finally, PLBT (Technology-Based Advanced Company) or post-startup in charge of post incubation and external funding.

The three stages are intended to keep all fostered startups stable on the track and mature before they could be brought to a big event like Nexticorn.

"Most pre-startup they are active students, they are potential participants because of the seeds entrepreneur."

The funding provided by the Ministry of Research and Technology for fostered startups depends on where they are. The source of funding comes from the state budget. According to him, the Kemenristek APBN for 2020 has been determined. However, it must be combed again because it is still mixed with Dikti.

It should be noted that the Directorate of Higher Education (Dikti) has now been separated from the Ministry of Research and Technology and merged into the Ministry of Education and Culture, which is led by the Ministry of Education and Culture. Nadiem Makarim.

"We are the ones who have the funds for startup development. We'll sort it out again later [the 2020 State Budget], so I know exactly how much the total [funding for startups] will be."

The targeted startup focus is foodtech, transportation, healthtech and Medtech, energy, resilience and security, material, advanced materials, and ICT. Not only focusing on digital, but also on technology startups.

"What we encourage is not only digital [startups], but other technologies are also developing, we need those two things. Because if digital only and E-commerceIt's strong, but what are you going to sell later? E-commerce?"

"This is the president's concern. E-commerce will bring too much imports in consumer goods. We have to fill consumer goods with startups in technology-based industries," continued Bambang.

He said that since 2015 until now the PBBT program has fostered 1.307 startups and pre-startups, with details of 558 pre-startup and 749 startups. Of the total, 13 startups have scored IDR 102 billion in revenue in a year and pocketed IDR 4,5 billion in funding.

Global challenges for next year

On the one hand, the government's efforts to produce more technology-based startups are part of the anticipation of the global economic slowdown that will haunt next year.

Developed countries such as the United States and China are predicted to face difficult times for a slightly longer period of time. Initially the Chinese economy could grow more than 10%, but not for next year.

The global slowdown in the United States and China will haunt other countries because they have a strong influence on the economy. "So the prospects are not good for developed countries, but not for developing countries, India and Indonesia."

"Indonesia has a good experience in dealing with global recession. We managed to maintain economic growth at 4% during the crisis in 2008."

The key to surviving the global slowdown is to strengthen the domestic economy, by increasing the number of techpreneur. So far, according to Bambang, Indonesia deficiency techpreneur and can't depend on players Existing.

"If this is not done, we will be a country that is lagging behind in becoming a producer. That's why I really appreciate programs that support the emergence of new businesses."

The emergence of many new businesses in the technology sector, according to him, will not create unemployment, but the lost jobs will be replaced with new jobs. It's just that people who lose their jobs, before changing to a new job, must improve their skills.

This section will be further identified by the Ministry of Research and Technology, what jobs have the potential to disappear and appear. "Later, the Ministry of Manpower and the Ministry of Education and Culture must prepare their education and training so that they can be immediately replaced by jobs."

Bambang has the ambition that in the next five years, the Ministry of Research and Technology in general can participate in economic transformation. The Indonesian economy must begin to shift from what it used to be efficiency based and resources, Becomes innovation based economy.

Innovation will be focused on three things in economic transformation, namely appropriate technology that helps many people, innovation for downstreaming and added value, and innovation in the context of import substitution by increasing TKDN.