Unlocking Billions in Innovation: How Industry and Universities Can Power Indonesia’s Future

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Jakarta, 2 September 2025The Indonesian Business Council (IBC) convened a Focus Group Discussion (FGD) on “Deepening Models of Industry–University Collaboration to Enhance Indonesia’s Competitiveness.” The forum brought together academics, business leaders, and policymakers to explore how academic research can be more effectively aligned with industry needs and transformed into innovations that strengthen Indonesia’s economic resilience.

IBC CEO Sofyan Djalil opened the discussion by emphasizing that Indonesia does not lack in creative potential, yet it still continues to face barriers preventing innovations from reaching the marketplace. He explained that rigid regulations, outdated academic performance measures, and limited incentives for commercialization have slowed progress. Reforming these systems, he argued, is critical to ensure that universities, businesses, researchers, and government institutions can more equitably share the benefits of innovation.

IBC Panel of Expert Itje Chodijah complemented Mr. Sofyan Djalil’s statement by stressing the importance of keeping research outcomes socially relevant. She reminded participants that innovation should not only drive economic growth, but also bring meaningful benefits to society. Collaboration, she noted, must contribute to progress across the education system–from early learning to higher education. It should also ensure that technological advances translate into improvements felt by communities as well as industries.

To address these concerns, the Ministry of Higher Education, Science, and Technology presented the government’s flagship initiatives aimed at closing the gap between research and industry. Programs initiated by the Ministry, including the Impactful Research Consortium (RIKUB), the HiliRiset Program, and the establishment of Technology Transfer Offices (TTOs), are being developed to accelerate commercialization and direct research talent toward national priorities. These initiatives were well-received by participants, who viewed them as necessary steps towards a more robust innovation ecosystem.

The discussion further drew on international examples, highlighting how countries with advanced innovation economies have successfully bridged the gap between academia and industry. Models such as science parks, joint funding mechanisms, and transparent intellectual property regimes demonstrate how research can be transformed into market-ready solutions. Participants regarded the adoption of these models, such as through faculty internships in internship and milestone-based funding, as an effective way to enhance collaboration and ensure research responds to market needs.

The session concluded with a shared understanding that closer collaboration between industry and universities is no longer optional, but it is a national imperative. Without collaboration, Indonesia risks lagging in productivity and innovation. With it, the nation stands to create billions in economic potential, foster inclusive growth, and strengthen its position in the global economy.