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Algorithm Hill Will Become Indonesia’s Silicon Valley

Algorithm Hill
Algorithm Hill Will Become Indonesia’s Silicon Valley, photo courtesy Instagram. 

The Institute for Development of Economics and Finance (Indef) has previously noted that the research and technology industry 4.0, based at Algorithm Hill in Sukabumi, West Java, must have a number of factors in order to become the Silicon Valley of Indonesia.

Indef’s Program Director, Esther Sri Astuti, said that these factors needed to be built so as to make Algorithm Hill a special economic area (KEK) that has the ability to attract investors. The Algorithm Hill area itself will be managed by Kiniku Bintang Raya KSO and PT Bintang Raya Lokalestari.

“If a special area can attract strong brands, other industries will definitely follow it. This is the first indicator of success,” said Esther.

According to Esther’s analysis, the area will be productive with the involvement of industry, universities, and the government.  This synergy is based on the needs of the technology-based research and development that is planned to happen there.

“The KEK can drive up its productivity, so here, with one of the collaborations, as I saw in Penang, is a collaboration between industry, government, and the university. They have established a training centre,” she said.

The Chief Executive of the Kiniku Bintang Raya KSO Budiman Sudjatmiko said that Algorithm Hill is an area where science and technology will be united. His party will bring in a number of young Indonesian innovators and retired academics and professors to be involved in research.

The next indicator of success will be that Indonesia’s Silicon Valley will make a sizeable contribution to Indonesia’s gross domestic product (GDP). This point is a basic indicator of the successful performance of the region designated for technology-based businesses.

“The point is that later technology, capital, and labour can drive economic growth. In general, it can be said that the special economic zone, especially in industrial areas that use hi-tech, can be successful,” he said. 

Likewise, an economist at Indef Bhima Yudhistira noted that if the KEK can attract investment with the application of 4.0 technology, it should have an impact on efficiency, competitiveness, productive output, and also on Indonesia’s innovation ranking at the global level.

Based on data from the Global Innovation Index in 2020, Indonesia’s ranking is 85 out of 131 countries. In terms of infrastructure, the country was ranked 80th. Innovation linkages or innovation networks between research institutions and companies was ranked 71st.

Meanwhile, regarding the patents of researchers who will later join the Algorithm Hill research team, Bhima assessed that this must be guaranteed by the government, with this facilitated by a fast patent registration process.

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