LPDP Assures Scholarship Funds Are Safe, Unaffected by Budget Efficiency Measures
The Indonesia Endowment Fund for Education (LPDP) has assured that its scholarship programme will continue to operate fully and is not affected by the government’s budget efficiency policy. Savings are only being made on the institution’s operational costs, while funds for scholarship recipients remain the main priority.
LPDP President Director Yon Arsal stated that the LPDP has a mandate to manage the education endowment fund through investment. Therefore, the source of scholarship financing comes from the returns on the endowment fund’s management, not from the operational budget currently undergoing adjustments.
“We are given the mandate to optimise the investment returns from the endowment fund we manage. Is it affected by budget efficiency? It is affected, but what we are making more efficient are the operational costs,” Yon said during an LPDP media briefing in Jakarta on Monday (29/6/2026).
Yon stressed that the efficiency measures do not touch the scholarship budget. On the contrary, the LPDP continues to strive to increase investment returns so that the programme’s benefits can reach more recipients.
“For scholarships, we are not implementing efficiency measures. We channel all of the investment returns. What we are optimising is the investment returns,” he said.
Nevertheless, the LPDP faces challenges from fluctuations in the rupiah exchange rate against the US dollar. This is because the majority of overseas scholarship recipients receive funding in foreign currency.
“Recently the dollar rose. Most scholarship recipients abroad receive financing in dollars. That certainly presents its own challenge,” Yon said.
Despite this, he confirmed that the situation will not reduce the number of LPDP scholarship recipients.
“Are we reducing the number of scholarships? No. We will optimise the available budget as best as possible,” he asserted.
To broaden the programme’s reach, the LPDP is also continuously expanding co-funding schemes with various universities and governments abroad. Through such schemes, education costs can be shared, allowing the number of scholarship recipients to be increased without reducing the quality of the programme.
As of 31 May 2026, the LPDP manages an education endowment fund worth Rp180.81 trillion. These funds serve as a source of sustainable financing through investment returns, while the principal amount of the endowment is maintained.
Since its establishment in 2013, the LPDP has awarded scholarships to 58,347 recipients. Of that number, 34,334 have completed their studies and become alumni.