Indonesia - Research and Innovation in Science and Technology Project

Page 1 INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC5571 Date ISDS Prepared/Updated: 07/14/2010 I. BASIC INFORMATION A. Basic Project Data Country: Indonesia Project ID: P121842 Project Name: Research and Innovation in Science and Technology Project Task Team Leader: Dandan Chen Estimated Appraisal Date: February 15, 2011 Estimated Board Date: November 18, 2011 Managing Unit: EASHE Lending Instrument: Specific Investment Loan Sector: General education sector (100%) Theme: Education for the knowledge economy (100%) IBRD Amount (US$m.): 95.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 90.00 90.00 B. Project Objectives [from section 2 of PCN] The project will be aligned with the higher level objective of improving Indonesia's competitiveness in the knowledge economy. The specific objective of the proposed project is to create an enabling environment for R&D in science and technology, and to strengthen the human resources and performance incentives of key public science and technology institutes in Indonesia. C. Project Description [from section 3 of PCN] The following is the proposed components under the RISET project: Component 1: Improving the national innovation policy framework. A strong national innovation system needs a coherent and conducive policy framework. This component will support ongoing efforts to adjust and reform policies related to innovation and to develop the capacity of key institutions in the innovation system such as RISTEK, DRN, and the nascent National Innovation Commission. World Bank support can facilitate technical assistance in key aspects of innovation policy such as: overall governance and role of public institutions, technology transfer, financing, intellectual property rights and patents, standards and quality, and Page 2 human resource development. The results of the technical assistance will support the organizational reforms such as helping formulate the agenda for the new National Innovation Commission, and the new mandates of the restructured RISTEK departments. Policy analysis is also needed on the management of public science and technology institutes, in terms of how to ensure adequate incentives to raise the productivity of these institutions. Technical assistance will also support establishing a national R&D information system. The technical assistance can be in various forms: studies and reviews, stakeholder workshops, as well as participation in international conferences and study visits to gain first-hand knowledge of best practices in the global setting. Component 2: Strengthening public research through improved management, quality, and relevance. This component aims at improving the system that oversees and manages a large portion of the research funding in Indonesia. By helping raise the quality of research and ensuring that it is more relevant to the priorities set out in the national research agenda, its impact can be substantial. The existing program, managed by RISTEK and DRN, has the potential to expand its scope and strengthen its management and improve overall research outcomes. For example, it can invite international institutions for evaluating proposals and peer-reviewing research work, link Indonesian researchers to international research networks and communities, and improve the capacity of its reviewers. The selection criteria can also give more weight to national priorities, and encourage better links to industry demand and the needs of local communities. The World Bank can fund expenditures on international technical assistance, as well as training through workshops, exchange programs and study visits with partnership institutions in research grant management, design and implementation, monitoring and evaluation, etc. Support can also come in the form of studies to examine topics such as research incentives and impact. Component 3: Strengthening human resources and improving the performance of public institutes in science and technology. This component will provide proposal-based funding to enhance the capacity of the seven LPNK coordinated by RISTEK to achieve specific institutional and human resource development targets in science and technology. Targets must be clearly linked to the development and research agenda detailed in their RENSTRA, medium-term planning, and Indonesia's broader national science and technology goals. Each LPNK will prepare an "Institutional Development Plan" commencing with a situational analysis of the institution's medium-term development goals, and an analysis of skills, knowledge and experience gaps that are hampering attainment of those institutional priorities. Proposals will link scholarship and training to the attainment of agreed institutional development goals within the agreed priority areas. LPNK is responsible for the attainment initially of process goals associated with institution's internal efficiency and incentive schemes, and later outcome goals aligned to the effective utilization of returning fellows and trained staff. In addition to the large amount of overseas scholarships, international and national technical assistance in priority research and institutional management areas will also be financed under this component. Component 4: Project management. This component will support the operations of the project committee and implementation units. More importantly, it will support any technical assistance needed in project monitoring and evaluation. Page 3 D. Project location (if known) The proposed project will focus on research and development capacity and human capital strengthening of key central agencies. E. Borrower