Foreign firms should give shares to local universities

Foreign firms exploiting the country's natural resources should give part of its shares to local universities to help avoid various social and environmental problems with the local community, according to rector of the Bandung Institute Technology (ITB) Lilik Hendradjaya.

"I think universities must be involved in the share ownership. This would help reduce the possibility of the emergence of environmental case or conflict with the local culture," he said.

He said that the controversial case with giant gold mining firm PT Freeport Indonesia might not happen if local universities have stakes in the company.

Freeport has been under serious attack particularly over alleged environmental destruction.

Lilik also said that universities would benefit from the share ownership to help support their plans for campus autonomy.

He added that ownership in companies like Freeport would also help accelerate the transfer of technology and develop local human resources. (*)