Indonesian Political, Business & Finance News

Govt opens door to foreign universities

| Source: JP

Govt opens door to foreign universities

JAKARTA (JP): The government has opened the door to foreign
universities to operate in Indonesia in a bid to improve the
quality of Indonesian college graduates.

Minister of Education and Culture Wardiman Djojonegoro also
announced yesterday other sweeping measures to deregulate the
education sector, deemed as necessary to strengthen the
competitiveness of Indonesia's human resources.

They include allowing the use of English as the medium to
teach up to 50 percent of the subjects in any university, and in
the teaching of mathematics and natural sciences at junior and
senior high schools.

Universities intending to use English in more than 50 percent
of the subjects, or using other foreign languages, must obtain
permission from the minister of education and culture.

Currently, the use of English is permitted in only selected
subjects at universities.

"One of the weaknesses of Indonesian college graduates is
their foreign language ability," Wardiman said. "We need to equip
them better to face the global competition."

He made the announcement after meeting with President Soeharto
at the Bina Graha presidential office. Also taking part were
Coordinating Minister for Production and Distribution Hartarto,
Minister of Finance Mar'ie Muhammad and Minister of Manpower
Abdul Latief.

Under the new rules, foreigners are permitted to set up
colleges under join ventures with Indonesian parties.

These colleges must incorporate between 50 percent and 80
percent of the national curriculum in all of its programs. They
include the teaching of Pancasila (the state ideology) and
anthropology.

Wardiman said the move was consistent with the 1989 law on
education which stipulates that cooperation with foreign parties
is permitted so long as it does not go against national
interests.

There are currently 76 government-run universities and 1,228
private universities in Indonesia. Places at the government
universities are always at a premium primarily because of the
institutions' higher quality and subsidized tuition fees.

Many wealthy parents who fail to enroll their children at
government universities opt to send them abroad.

The Ministry of Education and Culture estimated there were
about 60,000 Indonesians studying abroad last year. The United
States tops the list with 15,000, followed by Australia with
14,000.

But since the plunge of the rupiah in July, at least 6,000
Indonesian students have returned home.

Other measures announced yesterday include:

* State universities can raise funds from the public, and
these will not be subject to tax.

* Fiscal facilities, including faster a depreciation rate,
from 20 to 15 years, on all facilities and equipment.

* More government financing to build laboratories and
libraries that will be available for lease to universities. These
will be managed by professionals.

* Reviving a government loan scheme for university students.

* Scrapping the requirement that colleges must have their own
land and buildings. They can now rent the facilities for at least
five years.

* Allowing foreign universities to enter into management
contracts to provide expertise, lecturers, hardware and software.
Graduates will receive Indonesian titles and titles from
overseas.

* Private universities need only inform the minister of
education and culture of the appointment of the
rector/principal/director. They do not need the minister's
approval.

* Deans will now serve for four years instead of three.

* Indonesians can set up foreign schools in Indonesia, but
these will remain restricted to foreign students.

* Licenses for vocational courses will be issued by
manpower/education offices at the regency/mayoralty level and not
by the ministry.

* Foreign teachers/instructors are exempt from the $100
monthly charge normally imposed on all expatriates as a fee for
the transfer of their skills. (prb/emb)

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