Abstract

The Indonesian government has issued a series of policy instruments to encourage innovation in industry. One of these policies is incentive policy managed by the State Ministry of Research and Technology. Incentive program is aimed to assist industry in conducting research and development activities. Nowadays, the incentive program is only aimed to provide funds. Meanwhile, incentive policy such as fiscal policy has not been formulated and implemented effectively. The main purpose of this study is to evaluate the incentive program in Indonesia through perceptions survey of the industry with regard to program implementation and their expectations of any kind of program improvement. The results show that the implementation of incentive programs need to be reformed and many expectation from industry with regard to incentive programs were not yet fulfilled.

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