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Indonesia - J apan Partnership

Green Technology

SmartSociety

K nowledge Based Economy

INNOVATION FOR

SUSTAINABLE ECONOMIC DEVELOPMENT

Prof. Zuhal Chairman of National Innovation Council

1st Cycle 2nd Cycle

AID Partnership

Shallow InvestmentWith:• Exploitation of Natural

Resources• Minimum Value Added• Cheap Labour

Business as usual-based Cooperation

TRADING Partnership

Deep InvestmentWith:• Exploitation of Knowledge• Maximum Tech. Transfer• Skillful & Educated Work

Forces

Innovation-based Cooperation (Smart Society)

Increase Productivity

Innovation Driven Economic (Competitive Adv)

Natural Resource Driven Economic(Comparative Adv)

Paradigm Change

INDONESIA AND JAPAN COMPETITIVENESS BASED ON WORLD ECONOMIC FORUM CRITERIA

INDONESIA JAPAN

MISSING “PUZZLE”: NATIONAL INNOVATION SYSTEM

Sosio

System

JAPAN3.47%

INDONESIA0.15%

INDONESIA AND JAPAN OF R&D 2011 Size of circle reflects the relative amount of annual R&D spending

One percent (1%) of the GDP for R&D in 2015

Seven steps to improve the ecosystem of innovation to boost innovations (funding, leadership, culture, and policy);

Four models of innovation based industrialization vehicle to accelerate economic growth; (1. Basic Needs Industry, 2. Creative Industry, 3. Regional-based Industry, 4. Strategic Industry)

Seven targets of Indonesian vision 2025, towards a sustainable development of Indonesia

1

7

4

7

INNOVATION INITIATIVES: 1-747

1. Manufacturing Industry,

2. Mining,3. Agriculture, 4. Oceanography, 5. Tourism, 6. Telecommunication,7. Energy,8. Strategic Regional

Development

8 Programs

STRATEGIC RESEARCH:

Maritime Continent- Based Economy

FOOD SECURITY

ENERGY SECURITY

BIOTECHNOLOGY FOR INDUSTRY

TRANSPORTATION & DEFENSE TECHNOLOGY

DEEP SEA & FISH PROCESSING TECHNOLOGY

EARTH QUAKE, TSUNAMI & CLIMATE

KNOWLEDGE-BASED PRODUCTS

PARTNERSHIP : Establish TRIPLE-HELIX SINERGY

Effort: TO ONE PERCEPTION,

PARADIGM and VISION

Facts :NOT CONNECTED ASA PRIME MOVER OF

GROWTH

PLAN of ACTION

Challenges:1. IPR2. Research Management System3. Regulation and Incentive System4. R&D Management5. Intermediate Agency

Pre-BI TBI Post-BIICT Energy Trans

portationBioscience

Pre Incubation Incubation Post Incubation

Venture parkStart-ups Hi-tech Venture firm

1. 2. STP 3. Hi-tech Industrial Zone

Bandung Raya Innovation Valley (BRIV)

Special Economic

Zone

• BRIV will be established on the solid foundation furnished by the cutting-edge convergence and integration R&D capacity of government funded institutes.

• BRIV will be inhabited by the cultivation of top minds in Science and Technology at top-tier universities, who will be facilitated to work and reside in this zone. (Clusters: 1. ICT, 2. Energy, 3. Transportation, 4. Bio Science)

• In BRIV the growth of technology-intensive venture companies through the commercialization of R&D results will occur, with a business model of developmental progress through stages of Pre Incubation (Start-ups), Incubation (Hi-tech Venture firm) and Post Incubation (Venture park).

Why BRIV ………..?

ENERGY MIX 2005-2025

Energy Mix 2005

Renewable Energy

7%

Gas23%

Coal15%

Oil55%

Energy Mix 2025

Oil20%

Gas30%

Renewable Energy

17%

Coal33%

LECO2 = Low Emission Carbon Dioxide

REDD = Reducing Emission from Deforestation Degradation

Industrial Countries Developing Countries

LEC O2 REDD

50% 26 - 40%(2050) (2050)

WIN-WIN COOPERATION

(Medici Diplomacy)

Carbon Dioxide Emissions

0 1000 2000 3000 4000 5000 6000 7000

Canada

South Korea

Germany

Japan

India

Russia

USA

China

1990 2008

• Large market (about 1.2 million units by 2014 ) open opportunity for low-cost green car innovation, such as: hybrid car, electric car, Bio-fuel based-car, etc.

• To support this commitment, government is planning to produce policies through Government Regulation (PP) and Presidential Decree (KEPRES) to support the development of LcGc.

• In response, several companies in automotive industry (Daihatsu, Toyota, Suzuki, Nissan and Honda) have stated their commitment to support the government intention to develop LcGc.

LOW-COST GREEN-CARS (LcGc) (1)

Astra-Toyota Agya and Astra-Daihatsu Ayla are examples of innovation business in hybrid car:• It could involve Indonesian innovators as the local

designers;• Toyota and Daihatsu provide transfer of technology

(local content 84%);• Indonesian government (c.q. Ministry of Industry)

provide various tax and fiscal incentives and other conducive regulations to simplify acess of Toyota and Daihatsu to Indonesian market.

LOW-COST GREEN-CARS (LcGc) (2)

Example:

Win-win Cooperation for Bio Fuel (Indonesia – Japan)

5-20%

Crude bio-oil

Pure Plant Oil

Bio-diesel

Solar/ diesel oilBio-Solar

Diesel Engine: Car, Genset

Coconut

palm Jathropa

PURE PLANT OIL (PPO ) and BIODIESEL BIOETHANOL

Methanol+

Cassava molasses

Hydrolysis + Fermentation

Bio-ethanol ( 9% )

Dehydration

Bio-ethanol ( FG )

Gasoline Engine

PremiumBio-Premium

5-20%

Lignocellulose

Diesel oil

TRANSPORT FUEL FROM BIOMASS

SACCHARIFICA-TION

　　　　　

BIOMASS

PRETREATMENTC5&C6

SUGARSFERMENTATION ETHANOL

ESTERIFICATION BDF

METHANOL SYNTHESIS

DME SYNTHESIS

BTL

METHANOL

DIMETHYL

ETHER

DIESEL GASOLINE

DRYING GASIFICATION PURIFICATION SYNTHESIS GAS

Fuel for Transportation

• R&D can jointly conducted in Indonesia (to provide transfer of technology)

• Manufactured in Indonesia (employment opportunity)

• Government will provide various incentives and regulation (including efficient bureaucracy) condusive for investors to market their products in the large Indonesian market.

Opportunity:

GREEN CITY SOLUTION

Power Storage

Solar Power Plant

Power Storage

Power Storage

Residential

Smart Meter

Distribution Network

Power Storage

Hotel

Power Storage

Wind Power Plant

Thermal Power Plant

PT. PLN (Persero)

Solar Power Plant

Smart Meter

Flow of Electricity

Flow of Information

• Indonesia, as the only Maritime-continent country in the world, consists of many islands that are potential for the exploration of the local renewable resources, such as: solar, wind, micro hydro, geothermal, etc.

• These scattered islands are suitable to be developed with the concept of two-way smart grids electrical network.

A Unique Cooperation ! (1)

• Lombok Island has been selected as the models of green city with the concept of smart grid (similar to that of the Kasai Green Energy Park in Japan).

• Within this green city (self support energy city) all transportation system (electric car) and the generator for battery charger are renewable energy.

A Unique Cooperation ! (2)

CONCLUSION

Flow of Knowledge

Political & Economical Openness

Knowledge that doesn’t flow, …. doesn’t grow, ……and become useless !

NEW ERA: OPEN INNOVATION