Indonesian Government Bridges Mining Sector with Higher Education

New Collaboration Model for Universities and Mining Industry

The Indonesian government has introduced a new approach to connect the country's higher education sector with its mining industry. During a recent meeting between President Prabowo Subianto and university leaders, the government outlined a framework where educational institutions can benefit from mining activities without directly managing them.

Benefits for Universities Through State-Assigned Entities

Minister of Energy and Mineral Resources, Bahlil Lahadalia, explained that while universities won't be granted direct mining concessions, they will be able to receive benefits from mining operations. The benefits include funding for research and scholarships for students. This arrangement will be facilitated through state-owned enterprises (BUMN), regional state-owned enterprises (BUMD), or private companies that will be assigned to manage mining operations in collaboration with specific universities.

Government's Vision for Downstreaming and Economic Development

The meeting covered various national issues, including the current economic situation, food sovereignty, and the ongoing downstreaming initiatives in Indonesia. President Prabowo emphasized the government's commitment to developing the country's economy through strategic sectors like mining and energy. The downstreaming policy aims to increase the value of Indonesia's natural resources by processing them domestically rather than exporting raw materials.

Implementation Details and Regulatory Framework

The decision to exclude universities from directly managing mining operations came after discussions between the government and the House of Representatives (DPR) during the revision of the Mineral and Coal Mining Law. The new regulation stipulates that mining management will be carried out by assigned business entities, which will then collaborate with universities to share the benefits. This approach is expected to create a win-win situation for both the mining sector and educational institutions, promoting research and development while maintaining regulatory control.