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The development of Science and Technology is emphasized to improve national welfare and self-reliance. It is implemented systematically to lay a foundation for all potentials of achievements, productivity and creativity. The success of science and technology must be supported by the development of innovative culture and courage to take risks responsibly with the awareness of the need to make positive changes at anytime. The actors of science and technology should be religious and willing to listen study and cooperate with their partners. They should be professionals and abide to the highest standard of integrity, ethical behavior and work manners.

Prominent achievements during one year of Development Reform Cabinet include the Strategic Policy of national Science and Technology Development for the period of 2000-2020. In managing the benefit, development and mastering of science and Technology for national development, a print out documentation has been made.

The strategic policy for the development of science and Technology is in accordance with its benefit, development and mastering to support national development. It is also formulated according to the need of the Indonesian nation to catch up on science and technology directly and systematically to promote self-reliance and national welfare. The management of the strategic policy for science and technology development is in harmony with policies or other sectors. To anticipate the fast development and changes presently and in the future, the formulation of this policy is made flexible and not stiff.

Based on the main task and function of Science and Technology today and in the future, a Strategy Plan of science and technology have been issued. With this document as guidelines, the stakeholders and customers of science and technology would know the position, aims and how to achieve the aims in measuring the progress of its performance.

The description of national science and technology condition shows unreliable products of research institutions lack of coordination of research programs and lack of good relationship among research institutions, universities and the industries, showing a tendency to benefit import licenses. These facts show the need for a national science and technology system for legal framework of the bill of "sipteknas" (national science and technology system).

The national science and technology system is created by a pattern of relationship among elements that have certain functions in its development and efficient use. This system consists of various elements such as the implementors of: research and development, education and training executives, technology innovation and diffusion executives and the policy maker element.

The aims and targets of the Low of Sipteknas are:

1. bring the community individually or institutionally to their awareness about the responsibilities to strengthen science and technology capability to improve national welfare, and strengthen Indonesia's position in the global competition;

2. lay down an institutional order, so that the creators of the science and technology capability elements could systematically development and interact to produce a maximal driving force to achieve the aims of national development:

3. lay down regulations and foundation of rights and duties to manage a balance between the need to protect the individual or company's interest the society's interest in the efforts of science and technology, and the need of a guarantee that bath the individual and company's interest should be part of the society's interest;

4. explain the government's task in supporting science and technology development for the stability of the national science and technology system. National Main Priority of Science and Technology The National Research Council has formulated the National main Priority of research and Technology (punas Ristek) which is in accordance with the Strategic policy of National science and Technology Development (2000-2020).

The National Main Priority

Research and Technology is focused on the development of human resources as the executor of science and technology its benefit the enhancement and adoption of science and technology, and the increase of research, development and engineering activities to support national development.

Incentive System Development

The aims of the incentive system are :

1. to use available natural resources to strengthen small and medium industries:

2. encourage linkages between the medium and small industries and big industries:

3. encourage the active role of the technology institution to assist the medium and small industries with professional information and technology services;

4. assist the creation of a more competitive technology of the industries and other technological executors,

5. encourage a conducive climate for the enhancement of a strong industrial structure and the creation of the three pillars of industry: the industry-university - technology institution.

Intellectual Property Rights (HAKI)

Considering that in the globalization era intellectual property right, particularly patent, would be more important in the world competition, on August 10, 1998, ajoint cooperation was signed between the Department of justice and office of the minister of state for Research and Technology on the Intellectual Property Rights. Developed countries are protecting their products with the Intellectual Property Rights, there fore in 1994 Thailand applied for 600 licenses, Germany 49,000 licenses, USA 109,000 licenses and Japan 320,000 licenses. In the same year, from Indonesia only 75 compared with the 200 million population, applied for patent right.

To inform the people about property rights, promotion activities have been done in research institutions, universities (ITB, ITS, IPB, ATMAJAYA-Yogyakarta), and industrial companies (PT. IPTN, PT. INTI, PT. PINDAD, PT. Krakatau Steel) the office of the minister of Research and Technology has also promoted the establishment of Property Rights units in the research institutions of non-ministerial government institutions (regional government institutions) and universities, to handle research selections of intellectual property that have patent potentials, get access to patent information, the correspondence for applying patent and the marketing of patent right, with the expectation that each research institution makes an annual target to apply rights for patent according with "its core competence".

Currently, the tracing of rights information has become one of the criteria in the Integrated Superiority Research or Partnership Superiority Research.

Integrated Agribusiness Prograin for Regional Superior Commodity

This program is aimed at increasing production activities through the improvement of making efficient use of land potentials and regional agroclimate by encouraging production activities that is based on the people's economy and are as the same time increase regional superior commodities. A budget of RplOO billion was approved by the Limited Coordinating Meeting of Economic and Financial Affairs (Rakortas Ekuin) decision makers on December 2, 1998.

In the previous plan, the budget was to come from the interest of State-owned companies (BUMN) certificate of deposits, but finally, it was decided that the budget would come from PT. Permodalan Nasional Mandiri in stages.

A pre-feasibility study has been conducted for six commodities: soybean, banana, palm oil, nila fish, fodder industry/fish powder and beef-cattle in the provinces of East Java, West Java, Lampung and West Sumatra.

For the .next step, the feasibility studies for the six commodities mentioned above will be carried out. It a will be financed by accomoanving budget that has been orooosed to Bappenas.


The main aim and target of development of housing and settlement are to create communities who are capable to meet their housing needs in healthy, safe, harmonious and productive settlements.

The policy and strategy cover the development of decent housing and settlement, affordable by all layers of the community, with the low-income groups given first priority, the sustained development of housing and settlement with environmental concept, in a balanced urban and rural development directed to create a stable national settlement system.

With the spirit of reformation, the government has formulated activity programs of which the initial steps are assessing and reviewing available policies and decide if any new programs are required especially regarding institutional matters, financing and management. Approach and attention to the low-income group is by way of constructing very simple houses (RSS) and simple houses (RS) in sufficient quantity at affordable prices. Credit for constructions of RSS and RS is made available by the Home Ownership Mortgage Scheme (KPR).

In addition the government also provides dispensation on licensing, taxes, etc. Other facilities in the development of housing and settlement include empowerment of the community by way of providing facilities,  socialization,  guidance,  direction so that the people are. more capable to develop their own housing and settlement. These activities also include the housing development in slum areas and fishermen settlement, and the integrated housing development in rural areas, and others.

Improvement of Housing and Human Settlements

The target of national development in the field of housing and settlement, is to meet the need of housing of the law income group in the society. As an effort to reach the target during the Development Reform Cabinet, the government determines the types of the very simple and simple houses (RSS) and (RS) which is covered by a government subsidy.

In 1998/1999 (until June 1999) 100,000 units of RS/RSS were built. With this development, the target of the sixth Five-Year Development Plan (Repelita VI) have increased from 600.000 to 700.000 units. In 1999/2000, 100,000 units of RS/RSS will be built by the government.

Meanwhile, group-based housing development is organized to construct houses by the community themselves through empowerment efforts in the form of formal and informal organizations such as cooperatives, associations (paguyuban), etc.

In 1998/1999 the program of P2BPK has been realized in II provinces, consisting of 2,728 units of RS/RSS. The program of Simple multi level Housing (RUSUNA) has built 1,414 units housing.

On the other hand, renovation of slum areas and fishermen settlements has become a priority in the human settlement in the less developed villages which is caused by lack of facility, particularly in the slums, fishermen area and the transmigration locations.

In 1998/1999, the government has coordinated efforts to improve 134 slums and fishermen areas of 2,749 ha in 14 metropolitans and big cities. Renovation of medium and small cities has been carried out in 137 areas, covering 2,000 ha in 107 cities.

In the framework of assistance program for public Works facilities and basic infrastructure (PSD-PU) to maintain an affordable price of RSS for the low-income group of society, in 1998/1999, public works facilities and basic infrastructure have been constructed to support the development of 100,000 units of low cost housing consisting of 20,000 units of simple houses and 80,000 units of very simple houses.

Realizing the limitation of funds for the development of housing and settlement provided by the government, as the main source of budgeting, has brought about consequences to mobilize funding sources from the community. This is in line with the basic management principle in the housing and settlement sector, that the development of house and settlement is also a community responsibility.

With this fact, the funding sources of housing and settlement fund should come from the community. Currently efforts are being considered to collect funds from the community in two warp.

Firstly, through the TP3 (Savings of Company Employees for Housing Development) which is collected from the companies where they work.

Secondly, through the Secondary Mortgage Facilities (SMF) which is currently being formulated. It is expected, that when the economy has recovered from the present crisis, the SMF would already be effective to provide funds for housing and settlement development.

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