innovation, but they interact with each others to accelerate the development process.
1. Role of government
The government has two roles in the process of developing innovation, providing a suitable regulation and giving incentive for research institution and
university. About a suitable regulation, Susetyo 2015 suggests the government implement a regulation that Private Company should participate in
the research activity; venture and insurance also should enter the process. Furthermore, as feedback, the government should reduce the tax for companies
who do research in developing innovation.
Moreover, the government also should provide a wider market for the palm oil downstream products both in local and overseas market. For the local
market, the government should accelerate the implementation of regulation from The Ministry of Energy Number 25 year 2013 about using biofuel as
blend in fuel. The implementation of the regulation will increase the consumption of biodiesel from palm oil in the local market. If the consumption
increases, the company will try to optimize the production process of biodiesel by doing research in that area. Furthermore, for the export market, the
government should expand the palm oil market in other countries. They can use the Commercial Attaché in every country to find market opportunities that
need products based on the palm oil commodity.
The government also should provide a bigger budget for research institution and university. The money can be used to buy new equipment for the
laboratory or to conduct research. Research in downstream industry needs a large budget especially to buy a demonstration plant. Moreover, the industry
and research institution can use the demonstration plant to find the optimum composition to produce the downstream products before implemented in the
real plant.
2. Role of Industry
The role of industry in developing innovation is conducting research in their laboratory to solve their internal problems and provide a new product to solve
the people problems. The industry also should make collaboration with research institution and university in their development process.
Furthermore, Industry has direct interaction with customer both internal and external market, so they know the real problems of the customers. After they
know the problems, they can prepare strategies to solve them. If they do not have resources for the development process, they can collaborate with other
institutions.
Industry also should promote their research project to the research institution and the university. They also should describe their problem in
conducting that project, so researchers and lecturers can help them to solve that problem. When researchers want to help the industry, the industry can open
their laboratory for them. Finally, the industry should provide sufficient fund for the researchers to finish the project.
3. Role of Research Institution
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