Bambang urges Indonesia to raise research investment
The former finance minister put R&D spending during his tenure as research minister at about 0.3 per cent of GDP, compared with South Korea’s 5.3 per cent.
Indonesia needs substantially more investment in research and development to strengthen innovation and generate greater economic value, former finance minister Bambang P.S. Brodjonegoro told the Danantara TIIF 2026 event.
Bambang said Indonesian R&D investment stood at about 0.3 per cent of gross domestic product when he served as research and technology minister. He put South Korea’s ratio at around 5.3 per cent, describing its experience as a lesson for Indonesia’s pursuit of long-term growth and high-income status.
Manufacturing and exports helped drive the development of Japan, South Korea and other Asian economies, he said. But he argued that those activities alone were no longer sufficient amid technological advances and changes in the global economy.
He said a new growth model should centre on adapting technology to create higher-value output. That approach should extend beyond manufacturing to agriculture and services, supported by stronger research investment.
Bambang also said artificial intelligence could have widespread effects on daily life and the economy in less than a decade, making preparation more urgent. Indonesia should strengthen its ability to adapt technology for domestic needs and develop innovations, rather than remain only a user, he said.
