The School of Business and Management, Institut Teknologi Bandung (SBM ITB), and the Deposit Insurance Corporation (LPS) signed a Memorandum of Understanding (MoU) and Cooperation Agreement to bridge the academic world with national financial policy at the School of Business and Management, Institut Teknologi Bandung (SBM ITB), Bandung Campus (April 16). This collaboration affirms a shared commitment to research, human resource development, and strengthening financial system stability.
In his remarks, SBM ITB Dean, Prof. Aurik Gustomo, highlighted SBM ITB’s unique position in the Indonesian educational landscape.
“Our foundation is rooted in industrial engineering, which gives our business management approach a distinct advantage in entrepreneurship, leadership, and innovation,” he said.
Aurik emphasized that the collaboration with LPS is a vital step to ensure SBM ITB’s research remains impactful and relevant to national challenges.
Meanwhile, Farid Azhar Nasution, Deputy Chairman of the LPS Board of Commissioners, expressed his pride in the growing relationship with ITB. He noted that LPS is currently undergoing a period of transformation following the enactment of Law No. 4 of 2023 (the P2SK Law), which expands LPS’s mandate to include the Insurance Policy Guarantee Program.
“LPS is an institution built on integrity and transparency. Currently, 38 ITB alumni are contributing to our mission, and we hope this partnership will attract more top talent,” said Farid.
Jagat Prirayani, who is also a member of the Business Risk and Finance (BRF) research group and serves as Deputy for Academic Affairs – Management Program at SBM ITB, explained that the research initiative titled “Non-State Budget Disaster Funding Instruments” is one form of collaboration between SBM ITB and LPS.
“The purpose of this research is to design financial instruments such as Catastrophe Bonds (Cat Bonds) and Sharia-based Parametric Sukuk,” explained Jagat Prirayani. “These instruments will enable Indonesia to mobilize private capital and insurance markets to provide rapid and transparent liquidity when disasters strike, without relying solely on government funding.”
The research consists of four phases, beginning with a historical data audit and moving toward the submission of a comprehensive Policy Paper by the end of June 2025. This document will serve as a blueprint for implementing the Special Purpose Vehicle (SPV) and the regulatory framework within the Indonesian legal landscape.
In addition to the research, the MoU also covers several pillars of the Tri Dharma of Higher Education. First, the internship education pillar, by strengthening the Experience Learning curriculum, where students have the opportunity to intern at the Indonesia Deposit Insurance Corporation (LPS) to gain real-world experience in the financial sector.
The second pillar is scholarships, in the form of LPS’s ongoing support for outstanding SBM ITB students. The third pillar is financial literacy, a collaborative effort to raise public awareness about savings and insurance protection.
This partnership between SBM ITB and LPS is expected to become a best practice model for how universities and government institutions can collaborate to create innovative solutions for national economic and disaster resilience, while contributing to the vision of Golden Indonesia 2045.
