Innovation Is Key for Indonesia’s Industries to Survive Coronavirus Pandemic

Febrio shared that the Indonesian government’s stimulus policies on investing in research and innovation reflect its priorities.

Such policies would incentivize industries to create added value.

Expert Staff at the Indonesian Ministry of Industries, Gatot Sudariyono, underlined the need for industries to swiftly respond to innovative needs in order to survive.

A World Bank report also points to signs of Indonesia’s weakness in the field of research and development.

In the new normal era, Indonesia can no longer be reliant on its raw resources. The country will need to turn to innovation or discover a breakthrough.

“In the new normal era, there will be rapid changes such as Industry 4.0. We hope it will happen within five years, but it will happen even faster now,” said Gatot.

Read also: Erick Thohir: Coronavirus Pandemic Pushing Indonesia to Go Digital

The Ministry of Industry has prepared a wide range of programs to accelerate Industry 4.0 in Indonesia.

The programs are stipulated in Indonesia’s Medium-Term Development Plans which applies until 2024.

For Indonesia to attract companies to invest in innovation and research and development, the country will need a targeted incentive.

“That’s the point, how can tax instruments be used to push for innovation. It’s likely that excise can also be an effective instrument,” said Bawono Kristiaji from the Danny Darussalam Tax Center. 

(Editor: Sakina Rakhma Diah Setiawan) 

Source: https://money.kompas.com/read/2020/06/22/201232826/inovasi-jadi-kunci-industri-bertahan-di-masa-pandemi