Universities barred from mining rights, but can still profit

Indonesia’s House of Representatives passed the Mining and Mineral Resources Bill into law this week, ending a long-running controversy over whether universities should be given mining concessions to extract coal and minerals. Under the new law, higher education institutions cannot actually hold mining rights themselves but can benefit from mining profits.

Universities, along with religious groups, were included in an earlier draft version of the bill to extend priority access to mining concessions beyond state-owned companies.

However, they were removed from the revised bill, although religious groups will still be given access to certain mining areas through a business unit under their control – a system that had previously been floated for universities.

Now, under the new law, priority mining permits will be given to certain government-controlled or private businesses to manage a mining area for the benefit of universities. Such benefits could include research funding and scholarships.

Concerns over autonomy

The decision not to grant mining concessions directly to universities followed public concern about the involvement of universities in commercial operations. Minister of Energy and Mineral Resources Bahlil Lahadalia said the decision was made to preserve the autonomy of universities as educational bodies.

Vice-chairperson of the House of Representatives Ahmad Doli Kurnia said that according to the new law, passed on 18 February, universities were not legal institutions that could run a mining business or hold mining concessions, but they would be allowed to receive a share of profits from mining companies.

“The mining companies can be state enterprises, regional administration companies ,or private companies,” Kurnia told local media after the House meeting, adding that the share of profits would be “fairly distributed”.

“There will also be targets, and higher education institutions will be able to receive the benefits. Then later, it will be mapped out which regions, which locations,” he said.

A ‘good’ decision

Hetifah Sjaifudian, head of House Commission X which oversees education, sports, science, and technology, said the House had taken a good decision because “universities can focus on their main role in education and research”, she told University World News on 19 February.

She said shares of the profits obtained by universities should be used to support academic activities, research, and university social services. “The funds received cannot be used for non-academic purposes,” she added.

Acting secretary-general of the Ministry of Higher Education, Culture, Science and Technology, Togar Simatupang welcomed the decision to drop mining concessions for universities. “We appreciate the House decision. Universities can get benefits from the mining business, but not by directly getting involved in it,” he was quoted by the Antara news agency as saying on 19 February.

“Universities will not busy themselves with non-academic works but will receive financial benefit from mining that can be used to improve their research and innovation needed by the mining sector,” he added.

The Bandung Institute of Technology (ITB) hailed the decision as the “right step” that will keep universities “on track” to deliver education, research, and service to the community.

“We believe that not giving mining licences to universities is the right decision,” said ITB rector Tatacipta Dirgantara in a written statement on 18 February. “The direct involvement of universities in mining would be detrimental to universities’ independence and academic integrity.

“Mining is a big business. It needs high investment, but it also brings high risks. Universities are not prepared for that,” he added. Nonetheless, universities “can make a good contribution to the business in an academic way, through research and innovation,” he said.

Student protests

The move is also seen as a victory for environmental groups that had opposed the extension of mining permits to universities. The move was seen as raising the risk of universities putting profit over education, contributing towards degradation of the environment, and pitting themselves against communities in their areas that oppose mining.

In advance of the decision, more than 1,000 university students staged protests in several cities on 17 February, calling for university mining concessions to be dropped, among other major demands focused on President Prabowo Subianto’s austerity-driven policies, including education budget cuts.

The students named the protests that took place on Monday and Tuesday in Jakarta and several major cities in Indonesia Gelap or ‘Dark Indonesia’. Larger protests took place on 20 February.