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Realisation of University-Industry Collaboration through Industry-Based

Learning at Indonesian Higher Education

Conference Paper · March 2016

DOI: 10.21125/inted.2016.1922

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 REALISATION OF UNIVERSITY-INDUSTRY COLLABORATION
THROUGH INDUSTRY-BASED LEARNING AT INDONESIAN HIGHER
EDUCATION
Rajibussalim1,2, Tony Sahama1, Hitendra Pillay3
1
Science and Engineering Faculty, Queensland University of Technology (AUSTRALIA)
2
Science Faculty, Syiah Kuala University (INDONESIA)
3
Education Faculty, Queensland University of Technology (AUSTRALIA)

Abstract
The collaboration between universities and industries has become increasingly important for the
development of Science and Technology. This types of partnerships are more prominent in the
Science Technology Engineering and Mathematics (STEM) disciplines. Literature suggests that the
key element of University-Industry Partnership (UIP) is the exchange of knowledge and experience
that is mutually beneficial for both parties. An example of how the collaborations manifests in Higher
Education is Industry-Based Learning (IBL) where university students are coming into industries to
experience and learn how the skills and knowledge acquired in the classroom are implemented in
everyday work places. This paper investigate how the University-Industry Collaboration program is
implemented though Industry-Based Learning (IBL) at Indonesian Universities and the impact this may
have on the university undergraduate students in Indonesia. The research findings offer useful insights
and create new knowledge in the field of collaborative education and learning. The research
contributes to existing knowledge by providing empirical understanding of the topic as applied to the
Indonesian context. The outcomes can be used to improve the quality of University-Industry
Partnership programs at Indonesian Universities and inform Indonesian higher education authorities
and their industrial partners of an alternative approach to enhance IBL programs.
Keywords: Industry-Based Learning (IBL), University-Industry Collaboration, work placement, STEM
education, academic performance.

1 INTRODUCTION
The collaboration between university and industry known as University-Industry Partnership (UIP) or
University-Industry Collaboration (UIC) program can be implemented in many sectors such as in
research, conference events, or student education and learning. This paper reports on an important
partnerships between university and industry called Industry-Based Learning (IBL) program. In this
program, universities send their students to industry partners to learn and gain some important skills
and work experiences. The situated cognition research literature argues that knowledge and skills are
best learnt when its experience in the context in which it will be applied in everyday practices [1].
The industry partners can also benefit from this IBL program by assisting universities to prepare better
equipped graduates to enter the workforce—they are the potential employers. In some cases, as a
trade-off by providing access to the students under the IBL programs industries can leverage
universities research capacity offer solutions and innovative ideas that can be utilised by business
community. In this regard, university has contributed to the growth of industrial and business sectors
and its contribution will in turn strengthen Indonesia’s economy.
According to a World Bank report [2], the availability of skilled Science Technology Engineering and
Mathematics (STEM) graduates for increasingly competitive job market in Indonesia is inadequate.
Indonesia has made satisfactory progress in building its infrastructure but not in preparing its human
resources, especially in STEM disciplines.
This lack of focus on human resource development is one of the reasons for the shortage of skilled
STEM graduate and this is largely due to inability of Indonesian Higher Education institutions such as
universities and vocational institutions to produce sufficient competent STEM graduates who are
qualified for strategic positions at many multi-national companies established in Indonesia. Even
though this problem is also faced by other East-Asian countries and other countries in the world [3-6],
the phenomenon is more evident in Indonesia. In this regard, Indonesians’ higher education
institutions needs to explore alternative ways to accelerate its HR development and IBL program can

Proceedings of INTED2016 Conference ISBN: 978-84-608-5617-7

7th-9th March 2016, Valencia, Spain 3853
play an active role in fulfilling the shortage of proficient STEM graduates by making a strong and
mutually-beneficial partnership with industries.
The IBL program can play an important role in equipping STEM graduates with the necessary skills,
knowledge, and experience to enter work places [7]. However, to what extend IBL program can
enhance the students’ academic performance at the Indonesian universities is less articulated in the
literature. Therefore, beside the investigation of the impact of the IBL program to the STEM
undergraduate students in general, the research focuses on the impact of IBL program on the
students’ academic performance at Indonesia Higher Education.
The paper is organized to first discuss the University-Industry Collaboration, followed by the
discussion of the difference between IBL program in Australia and Indonesia. The next following
section presents the research findings and discussion on the impact of IBL programs towards
Indonesian University undergraduate students and finally the paper is concluded by a conclusion.

2 UNIVERSITY- INDUSTRY COLLABORATION

The term of University-Industry Collaboration (UIC) comes with several variants such as University-
Industry Linkages (UIL) [8], and University-Industry Partnership (UIP) [9]. In this paper, the University-
Industry Partnerships will be used as the main term to describe the collaboration between university
and industry although in several occasions the other terms will also be used interchangeably.
Although the primary orientation of higher education institutions and industrial companies is different,
there is a key element that can be shared and mutually important for both institutions namely
exchange of knowledge [10] or transfer of knowledge as described in Gertner et al [9]. At this point,
both organisations can work together to achieve shared goals. The exchange of knowledge in the
form of UIC can be facilitated by, for example, the university research centre. The research centre can
act as a facilitator of collaborations or mediator among the stakeholder to ensure a mutually benefited
partnership can be formed [11]. The mutually benefited partnership can be grouped into the benefits
for university and the benefits for the industry. The following sub-section will discuss these two
benefits.

2.1 Benefits for University

2.1.1 Increase Scientific Productivity
A scientific productivity is usually measured by the output of scientific products. These scientific
products include publications in form of scientific literature, scientific texts, prototypes and patents [10].
However not all scientific products mentioned above are easily available or readily accessible. Many of
them are not available or the access to them is restricted [12]. Therefore, measuring the amount of
scientific product generated by each tertiary education institution in Indonesia every year is not an
easy task. Therefore in many studies, scientific productivity is usually measured by calculating the
number of publications in peer reviewed journals [12].
In Indonesian context, Lakitan et al [12] suggested that university-industry collaboration has positive
and significant impact on scientific productivity. This is evident in the increase in scientific publications
by scientists from many Indonesian universities especially from eight largest universities in Indonesia
since 2008 (see Fig. 1).

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 Fig. 1 The Increase in Scientific publication by the Top-8 Indonesian Universities between 2001-2011 [12]

However, the increase in productivity based on scientific publication is not simultaneous. It takes
around six years after Indonesia made the fourth amendment to its constitution related to education
that ordered the government to allocate at least 20 percent of its national budget (APBN) for education
to allow the increase in the number of publications of Indonesian universities (Fig. 2). The increase in
funding for education sector and some changes in the higher education policies has encouraged
academics to publish more of their research findings in peer reviewed journals and conferences.

Fig. 2. Scientific publication by Indonesian Researchers [12]

The number of scientific publication published in International peer-reviewed journals by Indonesian

researchers, although increasing, is still considered low compared with the publications of researchers
from neighboring countries such as Singapore, Thailand and Malaysia (Fig. 3).

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 Fig. 3 Scientific Publication from selected ASEAN countries from 2001-2011 [12]

There are many factors affecting scientific productivity of research institutions such as university.
Lakitan [12] summaries that the most dominant factor that influence the scientific productivity is the
availability of resources and funding. The other less important factors such as institutional culture and
social factors are also affecting scientific productivity of researchers at Indonesian universities.
2.1.2 Increase University Funding and Status
In this digital era where the changes and development in every aspect of life is certain and rapid,
universities are faced with the challenge of the rising cost for education. The university collaboration
with industry provides an opportunity to invite more funding from the industry [10;13], for example in
the form of research grants and scholarships. The research grants and scholarships are the magnet
for attracting qualified research fellows and new students to the university. In addition to financial
benefit, industry collaboration broadens the courses offering by the university and enhances the
quality of course contents in related disciplines [14]. The better quality and variety of courses along
with interesting research opportunity offered by university, the more economic values can be achieved
by the university. Moreover, the high quality graduates and useful research outcomes will also foster a
better university’s status and reputation.

2.2 Benefits for Industry

2.2.1 Increase Company’s Reputation and Competitiveness
The University-Industry Partnership can increase the competitiveness of the industry partners. The
manufacturing and constructions industry is continuously striving to improve its products [15].
Through, university and industry partnership programs, the university can play an important role to
solve the industry problems in designing a new and innovative products.
In Indonesian context, Santosa and Kusumawardani [16] from Gajah Mada University Indonesia
summarise the benefits for industry in University-Industry Partnership scheme for small-medium
enterprises (SME) in the Central Java as follows:
1 Improvement in the companies’ competitiveness
2 Solving the companies ICT problems
3 Understanding comprehensive business strategic planning
4 Understanding more about the audit and
5 Be able to make a good planning for ICT-related programs
In Indonesia, the most common problem faced by small to medium size firms are managerial and
technical problems [17]. In many cases, the University-Industry collaboration can at least help to
provide possible solutions for the host company problems.

3856
2.2.2 Gaining Access to the Experts from University
Most studies on university-industry collaboration have focused on the analysis of the research project
outcome as the results of the collaboration. The positive outcomes have been defined as the products
(or scientific reports) that can raise the company profit, improving the products, or enhancing and
optimising the use of technology for the company development. However, Pertuze et al [18] views that
the more important aspect of the university-industry collaboration from the company viewpoint “is not
outcome but impact”. That is how the knowledge extracted from the collaboration with university can
be used to manage and run the company better. This also means that how the company makes use of
the knowledge and insights from academia to the benefit of the companies. For example: the
possibility to create new innovative products, optimising the production time, upgrading new hardware
and software, or to increase managerial efficiency.

3 THE IBL PROGRAM IN AUSTRALIA AND INDONESIA

3.1 Industry-Based Learning in Australian Context

Against the above UIC developments and in response to demand for more skillful and professional
graduates to fulfil the increasingly competitive job market, universities adopted IBL programs to
prepare and equip their graduate with necessary skills and practical working knowledge. The
Australian IBL programs are cognizant of the Australian Chamber of Commerce and Industry and
Business Chamber of Australia formulated nine generic employability skills that need to be mastered
by universities’ graduates as summarised by Holt et al in [19].
Most of these employability skills become the main focus skills that are targeted in the work place. To
equip students with these important employability skills, a number of Australian universities have
embedded these skills into their curricula through Industry-Based Learning program. For example, the
Bachelor of Information Technology (BIT) (Honours) program at Deakin University has embraced this
policy [19]. The Deakin’s BIT program is unique as it incorporated substantial periods of industry
placement (IBL) and a major, industry-based, honours thesis in their program. Through the IBL,
Deakin’s BIT program is targeting that all students acquire the main focus skills specifically develop to
prepare students for work ready graduates.
Australian universities are now willing to incorporate the employability skills into their programs. For
example by designing courses that enable students to learn not only from academics in the class room
but also from experts in the industry. By incorporating these employability skills into their curricula,
universities have indicated their intensions that they are serious about reducing the mismatch of
knowledge and skill of their the current graduates [19;20].
The interest in IBL has seen Smith et al [20] expanded the research in searching for “the best
practice” of IBL into the Information System (IS) and the Information Technology (IT) courses at RMIT
University and Swinburne University of Technology. In addition, Koppi et al [21], Malfroy [22], and
Smith [23] also focused their research on the improvement of curricula for higher education
institutions.
In summary, a number of research on the IBL program in Australia focused on how to develop a
professional curriculum incorporating the best practice of the IBL program for higher education
institutions. These studies concentrated on participants’ opinion on the IBL curricula and less on the
impacts of the IBL program on the students’ academic performance upon their return to university.

3.2 Industry-Based Learning in Indonesian Context

As a centre of excellence for research and development, the higher education sector is widely
considered as an integral part of economic growth and development of nations [9;24-26]. Organisation
for Economic Co-operation and Development (OECD) countries prioritise the development of higher
education with a strong research foundation and better linkages with industry. The government of
these OECD countries are now developing strategies to encourage higher education institutions in
their countries to increase participation in economic development of the nation [27].
As a country regarded as an emerging Asian economic power, Indonesia is no different to those
OECD countries. In regards to this, the government of Indonesia has created a Master Plan for
Acceleration and Expansion of Indonesia Economic Development (MP3EI) that will guide the
Indonesian economic development from 2011-2025. This MP3EI blueprint will drive the

3857
implementation of high and sustainable economic growth that focusses on two key factors, namely
1
acceleration and expansion . The acceleration in economy means that Indonesia will boost its existing
development programs especially in the primary economic sectors, infrastructure, sustainable energy
supply, human resources and development of Science and Technology—something that is directly
related to universities. The expansion of the economic development means that the economic
development is not only for some specific regions but will benefit all Indonesians across the nation.
This aspiration has both the university and the industry exploring more efficient and effective ways to
prepare the STEM workforce. In the Indonesian economic development master plan, the higher
education institutions are expected to play a crucial role along with industry partners and government
[27]. Therefore, strong University-Industry and Government collaboration and partnerships including
IBL program will greatly contribute to the success of this strategy.
In the Indonesian context, the research on IBL under the framework of University-Industry Partnership
programs was focused on the “impact” on industry partner instead of the impact of such programs on
the academic achievement of the university’s students. For example, the work by Santosa and
Kusumawardani [16] focus on the contributions of IBL students to solve the ICT problems of small
and medium enterprises (SME). Another example is the study by Nurdin [17] on the university and
industry collaboration to solve industry problems by utilising the university facilities such as
laboratories and universities human resources such as university staff and students.

4 METHODOLOGY AND DESIGN

4.1 Research Methodology

The study reported here adopts a qualitative method to investigate the research problem and to find
explanations to the research question. In this regard, a case study is utilised to examine the impacts of
IBL program on students at selected Indonesian higher education institutions.
The case study has been selected for this research for a number of reasons. First, one of the
objectives of the study is to understand various stakeholders (e.g. university students, university staff,
and people from organisations involving in the IBL program) perspectives. For this purpose,
interviewing the stakeholders in their native environment is considered as the best approach. It allows
the participants of the study to be more flexible as in-depth investigation can done to explore the
complexities of a phenomenon being study. For example, the investigator can follow-up a particular
interesting topic with follow-up questions. This is one of advantages of using the case study approach
through interview as the investigator can develop understanding and be able to clarify a particular
issue directly from stakeholders. Second, adopting the case study method offers a flexibility in term of
the mode of reporting. The researcher has the flexibility in interpreting the case while ensuring that the
authenticity and reliability are maintained.

4.2 Research Design

4.2.1 Interview
The current study utilised semi-structured interviews as it allows combining the formal and informal
conversations. The questions were designed and structured in such way that the interviewer would be
given a chance to follow up responses from the participants in order to explore the research topic in
more details. The informal conversation that rose during the interview can be useful to anticipate any
gaps in data collection, and to clarify different perceptions that may come from participant’s
responses. In order to obtain sufficient depth and breadth of information, planned questions are
considered necessary to manage the interview process.
Interviews were conducted one to one and audio recorded. The audio recording interview is a
common method to record the interview data [28;29]. It contributes to a more relaxed atmosphere
because the interviewer is freed from the distraction of note-taking and could concentrate on the
questions.

1
MP3EI, Master plan Acceleration and Expansion of Indonesia Economic Development 2011-2025

3858
4.2.2 The Context and Site
The study focused on the impact of the IBL program on students at the higher education institution in
Indonesia. For this purpose, the Syiah Kuala University which is the largest and the oldest state
university in the region has been selected. The Syiah Kuala University is located in Aceh province of
Indonesia. The university that was founded on the 2nd September 1961 consists of ten faculties and
55 program studies offering undergraduates (Diplomas and Bachelors) and post graduate programs
(including Masters and Doctoral degrees). The university has more than 30,000 students in all
program studies and disciplines.
4.2.3 Participants of the Study
The main participants of the study are university students and university staff from the Faculty of
Science and the Faculty of Engineering. The selection of these two faculties is due to the focus of the
research on STEM disciplines. The study focused on the experience of participants who have been
involved in the IBL program in the past. Among all stakeholders, the centre of attention were on
students who are the main stakeholder in the IBL program. The other stakeholders such as academic
staff and industry supervisors are supporting elements that help students to achieve the best possible
outcome in their IBL program. The study adopted ‘criterion sampling’ where researchers set the
criteria of importance for the sample, and subsequently the sample meets the criteria to be included
[30].
The interviews will be guided by e QUT ethical approval and will be done separately for the two
different groups of participants. The first group of respondents were the university students and the
second group of respondents were the university academic staff. Within the first group, twenty
students have been interviewed and in the second group, ten university staff completed the interview.
The sample size is an important issue to be considered in qualitative research. The general guideline
for sample size in qualitative research is not only the small sample size but how to the data from the
participants is gathered to sure more detailed and comprehensiveness. Most qualitative studies
include between 20 and 50 participants to ensure that the variations in the experience has been
uncovered before reaching saturation point [29].

5 FINDINGS AND DISCUSSION

5.1 Impact on Student Performance

Holt et al [19] argued that students with the IBL experience are significantly more mature in their
behaviour and more confident in the class room. Students have “a great deal of depth in all sort of
thing” including how to present themselves in class, be able to engage deeply in discussion of certain
topics, understanding work place ethics and in general IBL has encourage positive attitude towards
their learning [19].
From the interviews with both university students and staff, both stakeholder agree that there is
significant impact of IBL program on the increase of students’ academic performance. A student
described that learning new knowledge at IBL program could increase his academic performance:
In my opinion, (IBL program) will increase the academic performance significantly. Why?
Because when you have a work placement, you will learn new knowledge and this knowledge
can be shared with other students what is like to work at PERTAMINA. Many things will have
effect on the increase on the academic performance (University Student Interview).
Another student suggested that by knowing and experiencing the real workplace situation, he has an
understanding of what needs to be prepared for certain situations. He also becomes more proactive
and productive in his study at university:
May be in academic perspective there must be an increase (in academic performance). Since
we already knew how things are done at workplace, we will study hard and understand how to
work under pressure. Thus, we become more proactive and productive (at university) after the
work placement (University Student Interview).
One university staff suggested that she can directly assess whether a student had learnt something
from his/her work placement by examining the student’s IBL report and seminar presentation:

3859
 We can observe the increase in academic performance through students’ IBL reports. Each
report is presented in a seminar, thus we can assess whether a student really learned
something from his IBL placement. If he learned a lot, he will get a good mark for his IBL
placement. But if he didn’t learn anything, he wouldn’t get good mark for his IBL placement
(University Staff Interview).
However, some academics admitted that it is not easy to measure the increase in academic
performance after students returned to university. This is because most of students did their IBL
placements at the final year of their study in which there is no more subjects to complete. Therefore
measuring the increase in academic performance, for example, in the form of students’ GPA is
difficult. The increase in skills after students return from an IBL placement, however, can be observed
when they are working in the laboratories:
To exactly measure the academic performance after the IBL placement is a bit difficult. Because
here, it is a common practice that the IBL program would take place at the students’ final year of
study. But we can observe the (increasing) skills when they are working in a laboratory, when
they are helping new students with their tasks in laboratory, their skills will prevail (University
Staff Interview).

5.2 Learning new Skills

In their affiliation with industry partners, students are receiving lessons in form of technical skills that
were not available in the class room at university. The technical skills gained from learning in the field
usually satisfy the job markets’ demands.
IBL students may learn a range of new skills including communication skills [21], negotiation skills,
management and leadership skills [31], working in as a team player, industry regulations and rules,
industry best practice, strict deadline and deliverability as well as time and stress management [16].
Most student participants pointed out that communication skills is the most important social skills they
learnt at their placements:
How to communicate effectively, for example how to explain IT (problems) to people who does
not understand IT, that is how to explain it with the simplest language that will be easy to be
understood (University Student Interview)
Meanwhile a staff respondent highlighted that the relatedness between the IBL topics and the program
study at university is an important factor that affect students` ability to learn new skills and gain new
knowledge:
Whether students gain new knowledge and skills in their work placement is depended on the
place where they did their placement. Some get a lot but others don’t. As our program study is
in Information system, students learnt a lot if their IBL placement is in IT-based institutions such
as TELKOM. But (they) didn’t get much if their placement is in the government institutions
(University Staff Interview).

5.3 Knowledge Transfer

A survey at German universities has shown that the partnership between universities and industrial
firms resulted in the exchange of knowledge in both directions [10]. Researchers view that IBL plays
an important role in transferring skills and knowledge to students [17;31]. Some of this knowledge
includes the ability to take initiative, to socialise with other professionals to increase the network of
professional contacts, to manage financial activities [31].
A student responder who study Information System reported that he learnt how to setup a (work)
target and how to achieve it. This skill is repeated and becomes a habit after the student returned to
the university life:
Significant, because there (at IBL placement) we learnt through a system. We need to make a
target, for example within a month or less we need to complete a computer program, this (habit)
is repeated at campus (University Student Interview).
Meanwhile, the academic suggest that the transfer of knowledge in IBL program can be in many ways
including by observations:

3860
 Of course, if not much skills, at least they will got the knowledge. For example, if student’s work
placement at PLN (electricity company), even though they would not be asked to directly
perform the task of installing the electricity meter, they would be asked to observed how the
work is done in the field (University Staff Interview).

5.4 Impact to Future employment

Students with IBL placement generally possess good technical skills and work experience from non-
educational institutions where they worked previously. During their industry attachment program,
students may learn and understand the way companies are run—organization culture and related tacit
knowledge. They also understand about the standards and expectations in the industrial sectors. This
IBL opportunity provides “authentic experience” [20] for students and will increase their understanding
of work ethic, standards, and expectations of the real world. This giving them a competitive edge to
compete for jobs and excel in their future work [31].
Both academic staff and students come to an agreement that the IBL program has significant impact
to students’ future employment:
The Impact to further employment is not bad, why, because with IBL placement, we have had
inside information or the tricks to apply for jobs at PERTAMINA or other companies where we
did the IBL program. Secondly, we have also built a network (during IBL placement), thus when
a vacancy available at that place, we would be contacted first. And the last, people will take into
consideration (the IBL experience) when they read our Curriculum Vitae (CV) (University
Student Interview).
A student respondent made specific information:
There are a number of friends who continue the research they conducted at work placement for
their final research project (University Student Interview).
Meanwhile, response from a staff participant is more interesting:
Talking about opportunities, some students were not even allowed to leave (the company) and
directly offered the jobs. Thus the job opportunities (after work placements) are very high. The
number of students offered the jobs directly after their placements is more than 50 percent, but
some of them considered that the company is not a big company, they (the students) then work
for 1 to 6 months only and then (they are) looking for other companies (University Staff
Interview).

6 CONCLUSION AND FUTURE WORK

6.1 Conclusion
This paper has provided some insight to a growing body of work exploring the Industry-Based
Learning within the University-Industry Partnership program in Indonesia. The IBL practices at
Indonesian universities emphasise on different aspect to the one that were running at many Australian
Universities. In Australia, the IBL program were emphasised more on the development of the curricula
and to find what needs to be done or included to be considered as “the best practice” in IBL program.
Meanwhile, the IBL and UIP program in Indonesian mostly focused on how university (in this case
university staff and students) can contribute to solve the industrial problems and at the same time, the
students were learning from this process.
The impact of IBL on undergraduate students at Indonesian University can be grouped into several
themes including the impact on academic performance, learning new skills, transfer of knowledge and
impact on future employment.
The impact of IBL placements toward students’ academic performance although not always easy to
measure tends to be very positive. Both academic staff and students’ responses are encouraging that
the IBL placement has increased the students’ academic ability to be more organise, productive and
proactive in their university study. The students had also learnt new skills and transfer new knowledge
at their IBL placements in several ways including observation, learning by doing and making reports
and presentations. Regarding the impact of IBL placement on future employment, most of
respondents suggested that networks and relationships built during the placements program will be
very useful in looking for jobs in the future.

3861
6.2 Future Work
In addition, the citation on IBL and UIP research especially in Indonesian context does not necessarily
explain what the impacts of the IBL program are on the students’ academic achievement and how IBL
program directly supports STEM education in Indonesia. It requires more research in this particular
aspect to focus on filling these gaps.

ACKNOWLEDGMENTS
Our special thank is due to the Indonesian Directorate General of Higher Education (DGHE) office for
supporting this research.

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