From The Founder and the Chairman

Dear Colleagues and Friends,

As a historical accident, in 1989, Mr. Sudomo, former Senior Minister on Security and Political Affairs of the Republic of Indonesia, during the Soeharto Regime, asked me to become the Executive Director of the National Productivity Foundation, founded and chaired by him.

Politely, I declined his offer for political and professional reasons as maintained the intellectual independent and remained outside the system, whatever the system, and I was anticipating that one day I as an Executive Director, will be accountable of what the National Productivity Foundation is doing, regardless whether I involved or not.

As a polite respond, on September 25, 1989, Sudomo and I jointly established the Institute of National Capacity Studies, which are oriented on the fundamental research with a practical application.

I argued, that the National Capacity, interpreted comprehensively to include the Cultural Capacity, the Socio-Political Capacity, the Economic Capacity, the Monetary Capacity, the Technology and Institutional Capacity and the Military Capacity will necessarily preceding the National Productivity.

Technically speaking, the National Capacity is the Stock Concept, while the Productivity is the Flow Concept. In facts, in Indonesia almost all installed Capacity has low Rate of Utilization, due to at least three causes: first, the way the Indonesian organizes herself, with too many Chiefs/Thieves. Second, we have a reversed Sense of Priority, such that what is supposed the important priority becomes the least important. Lastly, the third cause is lost of sense of urgency such that there is an inertia situation, where there is no urgent feeling neither to change nor to do something .

Therefore, the main mission of The Institute of National Capacity Studies is not only to recognize the limited National Capacity, but most importantly to enhance the Rate of Utilization of the National Capacity.

Hartojo Wignjowijoto


Mr. Wignjowijoto's formative intellectual years was in Yogyakarta, the Cultural Capital of Indonesia, where he pursued his undergraduate studies in Laws-Social-Economic and Political Faculty. It is called HESP Faculty, HESP stands for H=Hukum=Laws, E=Ekonomi=Economics, S=Sosial=Social Studies and P=Politik=Political Science.  He was a Teaching Assistant in Economic Geography ( Regional Economics ) at the Faculty of Economics at the University of Gajah Mada.

Second twenty years, he grew up in the US Academic Mecca, starting at the Brookings Institutions, the Urban Institute and World Bank, and then at Harvard/MIT, where he wrote several books on Local Public Finance, Electricity/Public Utility and the Optimal Control Application in Managing US Macro-Economic Policy.

Third twenty years, he spent as an independent intellectual in Indonesia both during the 32 years Suharto Regime and the Transition Regime of Habibie and Abdurrahman Wahid. His intellectual independence has been proven by his forthcoming books on strengthening the Rupiah currency and on the United States of the Republic of Indonesia. In his book on Rupiah currency, he believes what Vladimir Lenin said long time ago, that to destroy a nation is by debauching her currency. Therefore, to strengthen the Indonesian Economy, which is well endowed by natural resources, is first to strengthen Rupiah, which is currently undervalued by 60%. His Book on the United States of the Republic of Indonesia is his intellectual respond on how to maintain the disintegrating Indonesia intact within the Republic of Indonesia.