Indonesian Political, Business & Finance News

How Much Would LPDP Scholarship Recipients Have to Repay if They Fail to Fulfill Their Obligations?

| | Source: KOMPAS Translated from Indonesian | Social Policy
How Much Would LPDP Scholarship Recipients Have to Repay if They Fail to Fulfill Their Obligations?
Image: KOMPAS

JAKARTA, KOMPAS.com - The Education Fund Management Agency (LPDP) revealed that the scholarship value received by participants can reach approximately IDR 2 billion per person, depending on the level of education and the country of study.

The Director General of LPDP, Sudarto, said that this figure serves as the basis for calculating the amount to be repaid by scholarship recipients if they fail to fulfill the program’s obligations.

Sudarto said that the scholarship value varies for studies both domestically and abroad, with higher values for education in countries with high living costs such as the UK and other European countries.

He explained that the average scholarship value for doctoral and master’s programs abroad can reach between IDR 1 billion and IDR 2 billion per person.

In fact, for some countries with higher education and living costs, this figure can be even higher.

Sudarto added that the repayment mechanism for scholarship recipients who violate the terms, including the obligation to serve in Indonesia, will be calculated according to applicable regulations.

This calculation may also include additional components such as interest, taking into account the individual circumstances of each scholarship recipient.

“Yes, we will calculate it,” he said.

He emphasized that LPDP will carry out the repayment process proportionally and consider the recipient’s ability.

This is because not all alumni have the financial capacity to immediately repay the funds in a large sum at once.

“We will calculate it. As I said earlier, I will explain it later. There are contexts, some can pay immediately. Some, if you suddenly get a job, you can’t suddenly have that much money. In the end, we have to manage the finances,” said Sudarto.

This statement was made in the context of an investigation into dozens of LPDP alumni who are suspected of not having fulfilled their service obligations in Indonesia after completing their studies.

LPDP previously stated that it could impose sanctions in the form of an obligation to repay the education funds and restrict access to future scholarship programs.

LPDP emphasized that the scholarship funds come from an endowment fund derived from the State Budget (APBN), so its management must be carried out in an accountable manner and in accordance with applicable regulations.

Sudarto added that the handling of each case is carried out carefully and in accordance with procedures, with the aim of maintaining the integrity of the program and ensuring that public funds are used responsibly.

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