Fleeing Obligations: LPDP Alumni Face Repayment of up to Rp2 Billion!

Jakarta, CNBC Indonesia - Scholarship recipients from the Education Fund Management Agency (LPDP) who do not return and serve in Indonesia after graduation cannot simply escape their obligations. The government has emphasised that it will reclaim the entire education funding, which can reach billions of rupiah.

The acting Director of the Education Fund Management Agency, Sudarto, explained that there are two main sanctions for awardees who violate their commitments. First, they must repay the received education funds, and second, they will be blocked from all LPDP programmes in the future.

“Each case is processed objectively and proportionately, considering the facts and context,” Sudarto stated recently.

The amount to be repaid is not insignificant. For a master’s programme at Gadjah Mada University, for example, the average funding reaches Rp75 million per year, including tuition fees, insurance, and living expenses.

Meanwhile, for studies abroad such as at the University of Edinburgh, the master’s programme costs can reach Rp967 million per year, and around Rp824 million per year for doctoral programmes.

With these figures, awardees who do not fulfil their obligations could potentially have to return funds ranging from around Rp900 million to Rp2 billion, depending on the level of education and study location.

Sudarto also revealed that there are already alumni who have been sanctioned. At least four individuals have repaid the scholarship funds, with amounts around Rp2 billion per person for doctoral programmes.

“Yes, around Rp2 billion for one person who did a PhD, there are those for master’s below Rp1-2 billion. Yes, those who have paid—there are those from domestic and abroad,” Sudarto said.

Overall, LPDP has traced around 600 awardees suspected of issues. Of that number, 307 are known to have permission to continue activities such as internships or further studies, while 172 are working in accordance with the rules.

However, there are eight individuals confirmed not to have carried out their obligation to serve in Indonesia, and 36 others are still under examination.