Responding to an article by the Director of Higher Education at the\nMinistry of Higher Education, Science, and Technology, which argued that\nquality higher education is the key to achieving the Golden Indonesia\n2045 vision, the discussion highlights a compelling and systematic\nargument built on human capital and endogenous growth theories. This\nview aligns with international bodies like the OECD and UNESCO, which\naffirm that investment in higher education is a productive investment\ndetermining a nation\u2019s competitiveness. The narrative successfully\nreframes education not as a sector that drains the budget, but as a\nprimary lever for economic, social, and environmental development.<\/p>\n
A major concern is the existence and role of private universities\n(PTS) within the national ecosystem. An undeniable fact is that 3,944\nout of 4,303, or about 91.7 per cent, of higher education institutions\nin Indonesia are private. Furthermore, around 44.95 per cent of\nIndonesian students attend PTS, which run 54.8 per cent of all available\nstudy programmes. Ironically, most PTS are currently facing existential\nissues, declining student numbers, and the threat of programme closures.\nBeyond economic factors, this decline is partly due to minimal\nregulation governing student intake quotas and patterns outside the\nnational selection pathways for public universities. The drop in student\nnumbers directly impacts the financial ability of PTS to fund operations\nand improve quality. Therefore, the push for investment to build a\nquality higher education ecosystem must also be directed at PTS.<\/p>\n
The national higher education financing model still relies heavily on\nthe annual state budget, student tuition fees, and various short-term\ncompetitive grants. This model is not designed to build institutional\ncapacity sustainably. The world\u2019s best universities thrive not just on\ngovernment support, but through endowment funds, alumni philanthropy,\nindustry research partnerships, and other long-term funding sources.\nWhile Indonesia has an Education Endowment Fund managed by LPDP, there\nis no specific instrument to strengthen higher education institutions,\nespecially private ones. If Indonesia is serious about making higher\neducation a strategic investment, reforming private higher education\nfinancing cannot be postponed. The government should consider\nestablishing a performance-based endowment fund for private\nuniversities. PTS with good governance, high academic quality, strong\nresearch productivity, extensive industry partnerships, and a real\ncontribution to regional development would be eligible for this\nlong-term investment support, fostering healthy competition and\ninstitutional sustainability.<\/p>\n
Furthermore, the role of the Higher Education Service Institutions\n(LLDikti) as a liaison between the government and PTS must be expanded.\nIts function should not be limited to administration, reporting, and\nregulatory compliance oversight. In the future, LLDikti must evolve into\na higher education development agency, functioning as a strategic\npartner for PTS in quality improvement, institutional capacity building,\nand facilitating partnerships with industry and local government.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/reform-towards-quality-and-integrated-higher-education-1786661521", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }