The Good Spirit Of Government, Now Forget The Dream Of Making The Algorithm Hill Silicon Valley Indonesia

Silicon Valley Region (Source: Commons Wikimedia)

JAKARTA - Bukit Algoritma is his name. Through the project, Indonesia will have Silicon Valley. A good spirit of government, which unfortunately is perhaps better forgotten. Not to be forgotten forever. But there's a lot to fix first. There's a lot of reason to say that. After all, hasn't Silicon Valley been abandoned?

Last Wednesday, April 7, PT Amarta Karya (Persero) together with Kiniku Bintang Raya KSO and PT Bintang Raya Lokalestari signed a contract for the implementation of the Bukit Algoritma project. Bukit Algoritma will be a Special Economic Zone (KEK) based on technology and industrial development 4.0.

Through the project, Indonesia will build an area such as Silicon Valley in Sukabumi, West Java. Specifically, the project will stand on an area of 888 hectares covering the cikidang and Cibadak areas.

West Java Governor Ridwan Kamil highlighted this plan. He warned not to let the money of Rp18 trillion just be a gimik project alone. Not without reason. Emil --his familiar greeting -- said there are three main supporters who are driving the development of Silicon Valley.

West Java Governor Ridwan Kamil (Source: Commons Wikimedia)

First, Silicon Valley is surrounded by many universities whose people make up the region's main resources. Second, supporting industries that support innovation. Lastly, the synergy of the financial industry.

Not unsupporting. It's just that in Emil's eyes, "if the three points were not present at one point, the name of the term Silicon Valley was just a branding gimmick only ... My intention was a response. I support it. But be careful to everyone who says little about making Silicon Valley," Emil, quoted by Antara.

President Director of Amarta Karya Nikolas Agung spoke about the budget. He explained, in the early stages of development, the next three years, the total value of the Bukit Algoritma project is estimated to cost 1 billion euros or Rp18 trillion.

The funds are among those used to improve the quality of the economy 4.0. In addition, the Rp18 trillion will be used to improve education and establish research centers aimed at accommodating the best ideas of the nation's children. Not to mention, the fund is also to support the improvement of the tourism sector in the region.

Quoted by Tempo, Monday, April 12, Nikolas conveyed the big dream to make Bukit Algoritma "one of the government's full support tools in driving national economic growth."

What the government forgets

Well, let's note the explanation of President Director Amarta Karya Nikolas Agung above. Consider the problem of education and research centers monitored. But many other problems. First, of course the most basic that physical location or place is no longer relevant in the development of the digital industry.

Institute for Development of Economics and Finance (INDEF) economist Bhima Yudhistira said what the digital industry needs today is an ecosystem, especially in the economic sector. Not a physical place. What is Bhima ecosystem?

First, financing. Bhima said state-owned banks should be able to support financing with relatively cheap interest rates. "KUR is also targeted to startups. The portion is larger," said Bhima, contacted by VOI, Monday, April 12.

In addition, as a KEK, Bukit Algoritma must guarantee a variety of benefits for those who pioneer digital businesses in the region. The insetif must be massive. "Any company, such as a startup or innovator in that place, means he has to earn a lot of profit compared to outside the area."

SOEs must also be synergized in the commitment, that all innovation results of inventors or innovators in the region will be absorbed by SOEs. In fact, Bukit Algoritma should be able to provide investor guarantees.

INDEF economist Bhima Yudhistira (Instagram/@bhimayudhistira)

"Do not then just be told to find venture capital funding yourself. Well if there is a guarantee or guarantee of utilization of innovation output, it will certainly be interesting. That's probably where the game changer will be."

In addition, another instrument needed is bureaucratic simplification, especially when it comes to patents. Innovation and discovery in the digital industry requires speed. Bukit Algoritma should provide integrated services related to patent registration.

"The problem faced now is simple. Every day there are new innovations. As for obtaining a patent, it takes a relatively long time, it can take years."

"In the area called Bukit Algoritma, there if there is innovation, registered, there is a one-door integrated registration for patents, can be completed in a matter of days or maximum weeks, then it will probably be a differentiator with existing means but there is no full backup from the government."

Is it appropriate to refer to Silicon Valley?

Silicon Valley Region (Source: Commons Wikimedia)

What INDEF economist Bhima Yudhistira has to say makes sense to see what's happening in Silicon Valley today. Silicon Valley is now abandoned.

Since 2020, major technology companies have left the area located in San Francisco, California. One of the companies most associated with Silicon Valley history, Hewlett Packard Enterprise (HPE) has relocated their headquarters to Texas.

But the giant computer company became an important milestone in the founding of Silicon Valley in 1938. HpE's move follows another computer company, Oracle, which moves offices to Austin by the end of 2020. Continuing, Elon Musk also brought Tesla's executive ranks to Texas.

There are several things that are said to underlie that, from messy management to property prices and high individual income taxes in Silicon Valley. And the COVID-19 pandemic is exercising their flexibility.

Pandemics have changed people's working patterns. The big tech companies are aware humans have adapted. The tech industry no longer relies on physical locations. Therefore, Silicon Valley magnets are no longer strong.

"Well, the incident can not be equated with Silicon Valley because in Silicon Valley the ecosystem at that time needed a certain kind of support from the U.S. government," bhima said.

Silicon Valley Region (Source: Commons Wikimedia)

A survey conducted by job application site HackerRank reinforces the perspective of how outdated it would be if we saw Silicon Valley as a reference for the development of today's digital industry. The survey of 12,000 women working as developers in a hundred countries shows Silicon Valley is no longer the determinant of the future direction of technology.

Respondents, especially Gen Z, viewed the financial center in Shanghai, China as the center of the solar system's future technological development. In Asia Pacific, approximately 14 percent of respondents referred to Bangalore, India as a reference for the future.

Things are not conducive in Silicon Valley, as described above also encourage the emergence of new technology hubs in the United States (U.S.). Cities such as Austin, Boston, and Seattle are developing new technology development centers that better fit the needs of the times.

"This leads to the rise of the tech industry in cities like Shanghai and Bangalore, whose start-ups are having an impact not only on the local tech scene, but also in the U.S. market," hackerRank Vice President of People Maria Chung said, quoted by CNBC.

*Read more information about ECONOMICS or read other interesting writings from Yudhistira Mahabharata.

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