On the Sukarno’s government era, economic development in Indonesia still act as a second priority for the development of Indonesia after its independence and political development prioritized as the leader for Indonesian development because of the political circumstances in that time. The real strategy of Indonesian economic and industrial development began at the new order era by technocrats group from the Faculty of Economic, University of Indonesia by command of Prof. Widjojo Nitisastro and Prof. Emil Salim. 

The point from the Economic development concept in that time is the economic growth, and for the industrialization done by Import substitution. By this strategy, the Economic development prioritized by the development of the highest group on economic order pyramid. The existing of “Trickle Down Effect“ was hoped for Small and Medium scale economic and this character held from 1966 until 1983. 

The global recession at 1983 forced Indonesia to transform the strategy to Industrial strategy with export - oriented and it held until now. 
 

- Dualism in Industrial and Technology Development

The strategy of technology development on the new order’s industrialization colored by the dualism of determining the technology development. The Ministry of Industry prioritized to “broad-based industry“ or “forward and backward linkage“ in the meaning of giving a priority to Industrial development and giving attention to the connection between domestic industry and comparative advantage from Indonesia. This concept of technology development usually connoted as ‘low-tech’ development. 

The traditional industrial and technology development policy in the “new order” era was characterized by weak coordination between them. The technology development policy based more on structural approach, which leads by the State Ministry for Research and Technology. The policy formulation is made by Top-Down approach. Most of the technology development activities are done in 5 LPND. (Non Ministerial Research Institutions ) like BPPT, LIPI, LAPAN and BATAN. Most of the technology development activity will executed in strategic industries likes IPTN, PAL etc. The main weakness of this approach is very limited spill-over of technology development on the private sectors. 

In other sides industrial development policy will be made by the Ministry of Trade and Industry, which the involved research institutes in BPPIP. The policies based more on the consensus of the market player with very minimum orientation on the technology development, since most of Indonesian companies are passive user of technology. The main weakness in this approach is no orientation on strengthens the industrial structure based on local development of technology capabilities. 

In the future it is expected, that will be more strong coordination between industrial and technology development in Indonesia. 

Paralleled with the above, Industrial development that concentrated to the ‘high-tech’ also done by IPTN, PAL and the other state owned enterprises by BPIS. The core idea from this development is the jump of technology to chase the behind of Indonesia. In this current situation, the application of this high-tech industrial development concept in Indonesia is very hard to be continuous, because of this time of crisis and the country does not have enough money to invest. 
 
 

- Potential Improvements

Based on the above summary, we can composed the lack of Indonesian development strategies:

1.  Unsynchronized concept between all elements for development. Political development did not build as a unity with economic development. 

2.  Unparticipating policy formulation, means that the intellectual society (university) did not invited to participate in the formulation of policy. 

3.  Economic and Industrial developments so depending to the individual actors so the development not direct to the integrated development system to emerging the competitiveness of Indonesia. 

These weaknesses have caused destruction of Indonesian competitiveness structure, therefore in only couple of months monetary crisis can eliminate almost all of the development yield in this last 30 years. 
 

- Targets of the Discussion

The objectives of the discussion are :

a.  To giving a real contribution for the country and the government of Indonesia, by means of a contribution of thinking regarding the raise of Indonesia’s competitiveness.

b.  As a multidisciplinary forum for Indonesian industrial competitiveness. Motivating the scientific capability and to discuss topics about the raise of Indonesia’s competitiveness.

c.  To distribute and contribute some thinking about the raise of Indonesia’s competitiveness integrally.

d.  Develop a cooperation with institutions and intended for being a partner of government in scientific research in efforts to raising Indonesia’s global competitiveness.
 

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