Indonesian Political, Business & Finance News

Four LPDP alumni sanctioned, required to return funds up to IDR 2 billion each

| Source: ANTARA_ID Translated from Indonesian | Social Policy
Four LPDP alumni sanctioned, required to return funds up to IDR 2 billion each
Image: ANTARA_ID

Jakarta (ANTARA) - Director General of the Education Fund Management Agency (LPDP), Sudarto, revealed that four alumni who were sanctioned for failing to fulfil their obligation to serve in Indonesia have returned funds amounting to IDR 1 billion to IDR 2 billion.

As of January 31, 2026, eight LPDP scholarship recipients have been sanctioned with the requirement to return funds.

“Of these eight people, four have fully paid back the funds directly to the state. The other four have promised to do so but are paying in instalments,” said Sudarto during a media briefing at the Ministry of Finance office, Jakarta, Wednesday (February 25) evening.

Sudarto explained that the amount of funds to be returned depends on the level of study undertaken. For master’s degrees (S2), the amount to be returned is around IDR 1 billion. Meanwhile, the amount to be returned for doctoral degrees (S3) reaches IDR 2 billion.

“This includes those who studied both domestically and abroad,” he added.

LPDP requires scholarship recipients to return and contribute to the country in accordance with the stipulated service period. Until 2025, the stipulated service period is twice the duration of study plus one year, or 2N+1. However, LPDP has changed its service period policy to 2N this year.

The obligation to serve is outlined in the regulations and the Scholarship Recipient Guidelines, which are part of the agreed contract.

For scholarship recipients who violate the agreement, the sanctions imposed include the return of educational funds and the blocking of access to LPDP programmes in the future.

In addition to the eight people who have been sanctioned with the requirement to return funds, LPDP is also reviewing 36 other people suspected of violating the agreement.

“Each case is processed objectively and proportionally, taking into account the facts and context. Once again, we uphold the mandate of the people,” said Sudarto.

However, LPDP also provides flexibility for alumni with certain conditions, such as those working in strategic positions in global research institutions. However, this flexibility is also accompanied by a commitment to continue contributing to Indonesia.

“If the context is that the alumni work in the best laboratories in the world, we will look at it first. We will ask for their commitment again. Because if they leave, it is not certain that another Indonesian can take their place. However, if there is no commitment (to contribute to Indonesia), we will immediately impose sanctions,” he explained.

Based on LPDP’s presentation, other specific conditions that allow alumni to stay abroad during the service period include civil servants (ASN), the military (TNI), and the police (Polri) who are officially assigned; employees of State-Owned Enterprises (BUMN) who are assigned; and assignments from government agencies.

Furthermore, working in international organisations, assignments in companies based in Indonesia, and post-study programmes that are official collaborations with LPDP are also considered.

LPDP is also preparing internship or entrepreneurship schemes for alumni for a period of up to two years after graduation with the approval of LPDP and meeting the established requirements.

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