Responsible Investment and Transition Away from Carbon-Intensive Energy
Syarif Hidayatullah State Islamic University Jakarta recognises that the transition toward clean energy requires not only responsible energy consumption but also responsible financial and investment governance. The University has developed an institutional framework combining Green Campus policies, renewable-energy development, and regulated management of Public Service Agency financial resources.
During 2024–2025, the University's documented short-term investment activities were concentrated in banking instruments such as deposits and current-account services rather than direct equity investments in carbon-intensive energy companies. This financial governance framework operates alongside the University's continuing transition toward renewable energy and contributes to Sustainable Development Goal 7: Affordable and Clean Energy.
1. Establishing a University-Wide Green Campus Policy
On 21 October 2024, Syarif Hidayatullah State Islamic University Jakarta established Rector's Decree Number 1415 of 2024 concerning the Green Campus Policy. The policy places environmental sustainability and the United Nations Sustainable Development Goals within the University's institutional governance framework.
It explicitly includes affordable and clean energy among the Sustainable Development Goals that should be supported through University education, research, community engagement, and institutional programmes. The regulation also requires University and faculty budgets to support the implementation of Green Campus activities. Through this framework, environmental sustainability has been integrated into institutional planning and resource allocation rather than being treated solely as an operational activity.
2. Directing Institutional Energy Policy toward Renewable Sources
The Green Campus Policy was followed by Rector's Circular Letter Number 21 of 2024 concerning Energy Management. The regulation establishes concrete energy-management measures across the University.
These include energy conservation, the use of energy-efficient electrical equipment, responsible operation of air-conditioning and lighting systems, and increased use of renewable energy. Solar energy is specifically identified as one of the renewable-energy options promoted through the University's energy-management framework.
This policy demonstrates the University's institutional direction toward reducing dependence on carbon-intensive energy and increasing the role of cleaner energy sources.
3. Applying Responsible Management of University Investment Funds
The University manages its Public Service Agency funds through a formal cash and investment governance framework. Rector's Decree Number 3526 of 2020 established guidelines for managing the University's Public Service Agency cash and investments.
Institutional implementation of this policy has included competitive selection of banking partners for the placement of University funds in deposits and special-rate current accounts. The University has publicly documented that the selection of banking institutions was conducted through a competitive mechanism designed to ensure accountable and beneficial management of institutional funds. This approach demonstrates that the University's short-term financial investment activities have been directed primarily through regulated banking instruments.
4. Documenting Investment Practices during 2024
The University's 2024 Performance Report provides financial evidence concerning the implementation of these arrangements. During 2024, the University recorded more than IDR 12 billion in income associated with deposits.
The reported placements involved recognised banking institutions, including Bank Syariah Indonesia, Bank Muamalat, Bank Tabungan Negara, and Bank Jabar Banten. The publicly reported investment-income structure therefore demonstrates the University's use of banking deposits and financial-service instruments in managing available Public Service Agency cash. Within the reviewed financial documentation, no direct investment in coal, oil, or other carbon-intensive energy companies was identified.
This provides practical evidence of an investment portfolio structure that avoids direct institutional equity exposure to carbon-intensive energy industries.
5. Continuing Responsible Short-Term Investment Management in 2025
The University continued this financial-management practice during 2025. The 2025 University Performance Report explicitly describes the optimisation of current assets as returns generated from short-term investment activities, particularly deposit interest and banking services arising from cash management.
The University recorded approximately IDR 15.46 billion in income from current-asset management during the reporting year. Reported deposit placements included BJB, BJB Syariah, Bank Syariah Indonesia, Bank Rakyat Indonesia, and Bank Muamalat.
The continued use of regulated banking products demonstrates consistency in the University's short-term investment management during the 2024–2025 reporting period. These arrangements provide an institutional foundation for responsible investment governance as the University strengthens its broader sustainability agenda.
6. Redirecting Institutional Resources toward Renewable Energy
Alongside its financial governance framework, Syarif Hidayatullah State Islamic University Jakarta has directed institutional resources toward expanding renewable-energy infrastructure. On 5 June 2025, the University signed a long-term cooperation agreement for the installation of a 270.17 kWp rooftop solar power system.
The solar facilities were planned for major campus buildings, including the Rectorate, Harun Nasution Auditorium, Faculty of Education and Teacher Training, and Faculty of Science and Technology. The programme forms part of the University's transition toward cleaner energy sources and supports reductions in dependence on conventional grid electricity. The University subsequently strengthened this initiative through its Clean Energy Transition programme and the implementation of rooftop solar facilities.
These measures demonstrate that institutional financial resources are increasingly supporting low-carbon infrastructure and renewable-energy development.
7. Strengthening the University's Divestment Framework
The combination of regulated banking-based investment management, Green Campus policy, renewable-energy regulations, and documented investment in solar infrastructure provides a strong foundation for reducing institutional exposure to carbon-intensive activities. During 2024–2025, publicly reported short-term investment income was associated with banking deposits and financial services rather than direct investments in coal or oil companies.
At the same time, the University expanded financial and institutional support for renewable-energy infrastructure. These practices demonstrate alignment with the broader objective of fossil-fuel divestment: shifting institutional resources away from carbon-intensive activities and toward more sustainable forms of development. However, the publicly reviewed University documents do not yet contain an explicit clause stating that investments in coal, oil, or other fossil-fuel industries are prohibited or must be divested.
Formalising such an exclusion within the University's investment policy would strengthen the existing responsible-investment framework and provide more direct evidence of compliance with SDG 7 divestment criteria.
8. Contribution to SDG 7: Affordable and Clean Energy
Syarif Hidayatullah State Islamic University Jakarta has established an integrated institutional approach combining sustainable financial governance and clean-energy transition. The University's Green Campus Policy and Energy Management Circular establish a formal direction toward energy conservation and renewable-energy utilisation.
Its Public Service Agency cash-management practices during 2024 and 2025 demonstrate that short-term institutional investment activities have been concentrated in banking deposits rather than direct investments in carbon-intensive energy companies. The University's 2025 rooftop solar programme further demonstrates the practical redirection of institutional resources toward renewable-energy infrastructure.
Together, these measures provide a documented foundation for responsible investment and the University's continuing transition away from carbon-intensive energy. Explicit incorporation of fossil-fuel exclusion and divestment requirements into the University's investment policy would further strengthen this commitment and provide comprehensive alignment with SDG 7 Indicator 7.2.6.
Source :
https://asset.uinjkt.ac.id/uploads/fmXyXwZY/2024/10/sk-rektor-1415---green-campus-policy.pdf
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https://uinjkt.ac.id/en/fulfilling-green-campus-commitment-uin-jakarta-signs-rooftop-solar-power-plant-cooperation