Mining is Better Managed by Universities Than Foreign Parties, APTISI Says

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February 5, 2025 | 09:15 pm

TEMPO.CO, Jakarta - The Chairperson of the Association of Indonesian Private Universities (APTISI) Budi Djatmiko stated that universities need to be prioritized to obtain mining concessions. According to him, universities have superior human resources to manage mining properly.

"The choice is whether you choose conglomerate families, foreign entities, or universities where thousands of people are present. All of you in the room may be graduates of universities," said Budi during a hearing with the Legislative Body (Baleg) of the Indonesian House of Representatives at the Parliament Complex in Senayan on Monday, February 3, 2025.

Budi said that if the concession is given to conglomerates, the company will obtain all profits. However, if mining concessions are prioritized for universities, there will be a more equitable utilization.

According to Budi, based on Law Number 28 of 2004 concerning Foundations, it is regulated that supervisors, chairs, and guardians of the foundation are not allowed to accept money. Therefore, he believes that the mining outcome should not only be enjoyed by a handful of parties. The mining management can be carried out through a business entity owned by the university foundation. "But the foundation is allowed to establish a business entity to supply the university," he said.

Previously, Budi revealed that he had suggested this idea several times to the Rector of Insan Cita Indonesia University (UICI) Laode Masihu Kamaluddin. Laode is a member of the Expert Council of the National Campaign Team (TKN) for the presidential and vice-presidential candidate pair, Prabowo Subianto-Gibran Rakabuming Raka. "I have often conveyed that suggestion," said Budi on Thursday, January 23, 2025.

Budi claimed to be the first person to propose that mining concessions be given to universities. Initially, he said, the proposal was conveyed to the 7th President of Indonesia, Joko Widodo (Jokowi), in 2016.

The Bill on the Fourth Amendment to Law Number 4 of 2009 concerning Mineral and Coal Mining states that the area of mining business permits for universities can be given priority. In this provision, there are three considerations for granting mining permits to universities, namely considering the area of the mineral metal mining business license, considering the accreditation of universities, and considering the improvement of access and educational services for the public.

Deputy Chairman of the House of Representatives Sufmi Dasco Ahmad considers the idea of universities managing mining to be acceptable as long as it is in line to seek funds for universities. "Well, I think the spirit is about how to provide or find funds for universities," he said when met by reporters at the parliament building in Central Jakarta on Thursday, January 23, 2025.

However, Dasco said that the mechanism for managing mining needs to be further regulated. This is to ensure that the granting of mining business permits (IUP) can benefit universities.

Meanwhile, the Professor of Management and Public Policy at the Faculty of Social and Political Sciences, Gadjah Mada University (UGM) Gabriel Lele considers the plan to grant mining concessions to universities as a new form of corporatism within the university environment. Therefore, he emphasizes that it is better for campuses not to open up space to obtain mining business permits.

"The effort to grant mining permits is a new form of corporatism from the government to the university," said Gabriel as quoted in an official statement on Saturday, February 1, 2025.

Gabriel views this corporatism as a state strategy to involve groups outside the government, including campuses, by providing certain benefits. However, this comes with a condition, which is that campuses are no longer allowed to voice their criticism. "I see that this is also a form of subtly silencing the critical voices of campuses," he said.

On the other hand, this idea is rejected by the Rector of the Islamic University of Indonesia (UII) Fathul Wahid. He believes that this idea is not within the university's domain.

Fathul is concerned that when campuses enter the mining business realm, they may no longer be sensitive to academic development. Because their orientation potentially leans more toward developing the business. "Money can sometimes hypnotize and if that happens, it's dangerous," he said on Tuesday, January 21, 2025.

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