ITS Vice Rector IV Prof Ir Agus Muhamad Hatta ST MSi PhD

ITS Campus, ITS News — The proposal to grant Mining Business Permit Areas (WIUP) to universities as stated in the Draft Law on Minerals and Coal (RUU Minerba) has drawn pros and cons among the public. In response to this, Institut Teknologi Sepuluh Nopember (ITS), through the results of discussions with leaders, representatives of the Central Management of the ITS Alumni Association (PP IKA ITS), and other stakeholders provided their responses.

Vice Rector IV for Innovation, Cooperation, and Alumni of ITS; and also Chairman of the Expert Council of PP IKA ITS, Prof. Ir. Agus Muhamad Hatta ST MSi PhD, said that currently public opinion regarding mining is often associated with environmental destruction and social conflict. However, according to him, the proposal for mining management for universities is an important momentum to improve mining governance to be more environmentally aware and equitable.

The professor, who is familiarly called Hatta, continued that granting mining management permits to universities can be one of the efforts to overcome the funding limitations faced by universities, especially in the development of research and innovation. “This opportunity can also provide economic benefits for universities and the surrounding community,” he said.

In line with this, ITS as a research and innovation campus welcomes the proposal. Apart from the opportunity, Hatta said that there are still several challenges that need to be overcome. For example, proposing complex regulations and permits, he said, will require planned understanding and strategy.

Head of the Center for Industrial Development and Public Policy Studies (PSPI-KP) ITS Dr Ir Arman Hakim Nasution MEng

Head of the Center for Industrial Development and Public Policy Studies (PSPI-KP) ITS, Dr. Arman Hakim Nasution MEng, agreed and said that in addition to academic and research excellence, university-owned enterprises are also required to have business and industry-oriented mining management capabilities. “Therefore, strategic partnerships with parties experienced in the mining sector are very necessary,” he explained.

Furthermore, this lecturer from the ITS Business Management Department explained that the need for large capital investment in the mining industry requires university-owned enterprises to seek alternative funding sources. Several options that can be taken are to build cooperation with investors or mining companies, without sacrificing the academic principles and independence of the university.

Looking at the existing breakthroughs, Arman demanded several policy options that universities can carry out in implementing the Mining Business Permit (MBP), to choose three commercial scheme options. The three include MBP fully managed by university-owned enterprises, MBP implemented in cooperation and fully managed by other parties, and/or MBP collaborated with other parties by dividing the portions agreed upon by both parties.

Furthermore, Arman said, this freedom to choose is very important because it is adjusted to the ability of each university in terms of managing business risks. Not only that, according to him, the government also has two options in providing mining management results to universities.

Both options can be achieved by providing MBP to its business entity or providing a portion of the profits from mining management results, which can be a certain portion in the form of profit or the right to save part of the profit in the campus endowment fund. “So, this option needs to be clearly regulated in the revision of the Minerba Bill in order to provide legal certainty and optimal benefits for universities,” he said.

The proposed management of mining business permits also supports the implementation of the Sustainable Development Goals (SDGs) 8 and 9 programs. Namely on Decent Work and Economic Growth and Industry, Innovation, and Infrastructure. (ITS PUBLIC RELATIONS)

Reporter: Mifda Khoirotul Azma