Corporate Universities
In the last few years we have witnessed the establishment of several new universities that are supported by large corporations.
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In the last few years we have witnessed the establishment of several new universities that are supported by large companies or corporations. Some have even been established by state-owned enterprises.
The presence of these universities has become a topic discussion, with many saying they should not be allowed to operate, especially the ones set up by state-owned enterprises. Furthermore, the Higher Education Directorate General is in the process of closing or incorporating small privately-run universities that are short of capacity, where the number of these reaches into the thousands. The two considerations need to be examined to analyze if corporate universities can provide better higher education.
Increasing capacity
The establishment of a university supported by corporations, say corporate universities, can breathe fresh air into the development of higher education because its presence will improve competition among universities and give more choice to the public. The growth of corporate universities is not unique to Indonesia. Our closest neighbor, Malaysia, has also experienced growth in the number of private universities. They have Petronas University and Tenaga National University, the latter belonging to Malaysia\'s largest power company.
We are glad to see the emergence of such universities as they add capacity to the provision of higher education. Such universities can absorb many new students who are mostly rejected by state universities. These universities should not rely on education management contributions as the only source of funds. Their sustainability can be maintained better than small universities, who often have inadequate funds. The users of the services will not be harmed by more choice and better quality.
Universities with adequate funds and facilities like corporate universities should be able to recruit qualified lecturers, management officers and educational staff on better salaries, as well as creating more jobs in education.
Indonesia has an excessive number of universities. Data from the Research, Technology and Higher Education Ministry shows there are 4,504 private higher education institutions in the form of universities, institutes, polytechnics or academies. Therefore, the establishment of corporate universities adds to the list. To avoid simply adding to the list, corporate universities should have certain advantages compared to existing private universities, and must contribute to advancing higher education.
Corporate universities should be established with the aim of more than simply reaping profits from the education. They should produce graduates who have special competencies. With opportunities such as case studies within their companies or working in an industry laboratory, students should have varied opportunities that are not offered by other universities. The universities still have to think business to profit. This shouldn’t be a problem, as long as it meets the requirements set by the Research, Technology and Higher Education Ministry.
The establishment of corporate universities will add to competition between state and private universities, especially state universities who often cooperate with corporations. Private universities that often rank highly will face more competition in attracting students. This will be positive for consumers.
Academic vs vocation
The number of universities in Indonesia, reaching 2,825, is higher than the number universities in China, despite China having a population five times larger than us. The Research, Technology and Higher Education Ministry hopes that universities in Indonesia continuously improve their quality, not only superior in quantity, so that they can compete at the global level.
In Indonesia, out of all of the universities, only 5.4 percent are in the form of vocational or polytechnics. From this 5.4 percent, there is only one with an A accreditation, and the majority are B or C. There are even some polytechnics that do not have accreditation at all. This fact is saddening, as we need skilled workers who are ready to work. Frequently there are complaints of a lack of human capital, but our graduates have not been trained properly. This will be a challenge for universities to provide better human capital.
The government\'s recent action to improve the management of universities in Indonesia is welcome. The Research, Technology and Higher Education Ministry will revoke the licences of private universities that do not meet the minimum standards in 2019. The Research, Technology and Higher Education Ministry will allow the universities to merge with other private universities to prevent their licenses being revoked. In 2019, the ministry plans to close around 1,000 private universities. Only private universities that are deemed capable of delivering quality higher education will be allowed to operate.
Corporate universities should be able to fill this void. They can provide capacity in vocational education and education in remote areas. Corporate universities can locate themselves in regions with no access to higher education services. The corporate universities should also compete in areas with an abundant supply of higher education.
In many regions universities struggle to find teaching staff who are qualified in their level of education and their subject area. This a big problem. When a study program is short of lecturers, it will be difficult for them to get accreditation. Without accreditation, the fate of their graduates will be sacrificed, who will find it difficult to find employment after graduating.
In certain places where the government has not been able to provide higher education, the role of the private sector is very important. However, private universities that want to fill the void often do not meet the requirements. Meanwhile, in big cities on the islands of Java, Sumatra and Sulawesi, there are many fictitious universities whose education process, infrastructure and human capital do not meet the requirements. Therefore, we must differentiate between problematic private universities and those that are in real difficulty.
In response, the Directorate General of Higher Education reviewed several proposals for the establishment of academic universities by companies, but they have been rejected and advised to found vocational universities. It is not easy for small foundations to establish vocational universities, thus the corporations are expected to fill the empty space, so that the demand for skilled workers can be met.
Equity and infrastructure
Problems among Indonesia’s universities are not only regarding quantity and quality, but also equitable distribution. The top universities are in Java Island. Meanwhile, the number of good universities outside Java is limited and they are dominated by state universities. If there are no universities in a region, the private sector is expected to play its role in providing higher education. However, private universities in remote areas are burdened with problems such as a lack of qualified staff. Recruiting qualified staff is hindered by a lack of funds. Qualified human resources demand adequate wages and an attractive place to live. In this environment, corporate universities need to be present. They are expected to be able to make positive changes by being present in a disadvantaged place.
In the United States, several big universities are built in quiet areas that enliven the city with a large student population. To achieve this the government has to provide adequate infrastructure. In this context, the infrastructure development program under Joko “Jokowi” Widodo is badly needed because it is from there the movement of human beings begins. People want to work in areas that are are not crowded or busy, but still interesting and comfortable.
It is not true that infrastructure development marginalizes education. Education is important, but education without being supported by infrastructure will lose its strength. Because, it is good infrastructure that will attract qualified people to work in remote regions. Infrastructure in the form of roads, airports and port are very important in the equitable distribution of education. Furthermore, information technology such as the internet will aid higher education in remote regions. From there, the quality and equity of higher education can be repaired more rapidly. Corporate universities can help fill the shortcomings in the provision of academic and vocational education in remote regions while benefiting corporations financially.
BUDI SANTOSO
Professor at the Industrial Technique in ITS Surabaya
