BHTV 2:0An attempt to create Siliconia in Indonesia

Budi Rahardjohttp://budi.insan.co.id

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The Lonesome Programmer?

Myth: Programmers work ALONE?

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The World Is Flat

• You can work from anywhere

• “In a flat world you can innovate without having to emigrate.”

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The World Is Spiky

Clustered areas

• population concentration

• light emissions (economic activity)

• patent filings • citations to

scientists in leading fields

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Siliconia

• Siliconia are appropriations of names beginning with "Silicon" by areas outside Silicon Valley.

• Siliconia inspired and is linked from a two-page spread in the September 1998 issue of Wired (pp. 136-137).

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2000

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2004/6

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World’s Siliconias• Silicon Hills (Austin, Texas,

USA)• Kempele (Oulu, Finland)• Silicon Alley (Manhattan, USA)• Silicon Fen (Cambridge,

England)• Kista (Suburb of Stockholm)• Multimedia Gulch (South of

Market, San Francisco)• Shinjuku (Japan)• Silicon Bog (Ireland)• Silicon Dominion (Virginia)• Silicon Wadi (Israel),• Cyber District (Summer and

Congress Streets, Boston)• Hoxton (Northwest, London)

• Silicon Forrest (Seattle vs. Portland)

• Silicon Island (Taiwan)• Silicon Valley of the East

(Dresden/Elbe River Valley, Germany)

• Sophia Antipolis (South of France)

• Silicon Glen (Glasgow to Edinburg)

• Digital Coast (Greater Los Angeles)

• Media Valley (Inchon, Korea)• Silicon Plateau (Bangalore, India)• Softopia (Gifu, Japan),• Silicon City (Chicago)• Telecom Valley (Minas Gerais,

Brazil)• Czech Tech (Prague) [Wieners, 1998]

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Indonesia’s Siliconias

• Bandung (Bandung High Tech Valley)

• Bali (Bali Camp)• Yogyakarta• Bogor• Toba (Toba Tech)• Batam, Jakarta

(Kemayoran Cyber City)• Cimahi (Cimahi Cyber

City)• …

• Mostly directed towards property

• Most important: Human Resources

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What is BHTV

• Originally, a study @ Ministry of Industry and Trade (1996)

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Targeted Indonesian Electronics Export

3.96

13

30

1996 1997 1988 1999 2000 2003 2006 2010

In billion US$

Target24% p.a.

targetUS$ 30billion

Rescue Recovery Growth

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Initiatives to achieve goal

• Electronic Super Sites (ESS);• Development of Cilegon – Jakarta – Cikampek –

Purwakarta – Padalarang – Bandung highway corridor (which was completed in 2005);

• Incentives, taxation, and training program;• Domestic market – distribution scheme;

•Bandung High Tech Valley (BHTV);

• Technology transfer agency;• And Software and Engineering Support

Development.

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BHTV

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Jakarta

Cikampek

Purwakarta

Padalarang

Bogor

Bandung

Cilegon

Cikande

Rangkasbitung

Pamanukan

Koridor JKT-CKP

Koridor JKT-CLG

Ko

rido

r CIP

UL

AR

AN

G

R&D Centers

Central Government

Serpong

BHTV

Source: Departemen Perindustrian & PerdaganganDepartemen Perindustrian & Perdagangan

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Bandung SciTech community

ITB

Universities:UNPAD,UNPAR,UNISBA,ITENAS,STT Telkom,UPI, …

ResearchCenters:PPAURISTILIPIMIDCB4TEtc.

LENINTICMI

Quasar

PT DI: aircraft industry

PINDAD

PT TELKOM

BHTV

Technology Infrastructure

SoftwareHardware

Houses

Modified from original source: Direktorat Industri Elektronika, Dirjen ILMEA, Deprindag

PT KAI(railways)

PT POS

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Disruptive Technologies from Bandung

• Palapa Satellite (76)

• Nurtanio / PT DI (80s)

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Critical Success Factors

Wieners and Hillner in 1998 Wired magazine article

1. the ability of the area’s university and research facilities to train skilled workers or develop new technologies;

2. the presence of established multinational companies as anchors to provide economic stability;

3. the population’s entrepreneurial drive; and 4. the availability of financial support in form

of venture capitals

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BHTV 2.0

• A more formal approach to BHTV:2005 – 2020?– Various initiatives are on the queue

• It took 15 years from Frederick Terman’s initiative (60s) to Apple boom (1975)

See You In The Future …