Mon, 19 Sep 1994

Private colleges subject to independent auditing

JAKARTA (JP): Minister of Education and Culture Wardiman Djojonegoro says private universities and colleges will soon have to have their finances audited by public accountants.

The move, which will be part of a controversial decree from the minister now in the making, is intended to compel universities to account for every rupiah they receive from students.

"The point is that the student is entitled to get something in return for every rupiah he spends," Wardiman told reporters after meeting with President Soeharto at the Bina Graha presidential office on Saturday.

The planned decree, which would empower the government to intervene in some of the affairs of private universities, initially spawned stiff opposition from the foundations which manage the colleges. They said that the decree would give too much power to the government, allowing it to intervene in their internal affairs.

Wardiman said that he has already won Soeharto's approval to issue the decree, which he stressed is intended to provide supervision for the private universities.

"You should go ahead with the supervising task, I'm sure it will work out fine," he quoted the President as saying.

The minister said he has already circulated the draft of the decree to various parties, including BMPTSI, the forum of private colleges in Indonesia, to obtain their views.

The majority of private colleges are now in support of the decree. "One or two still oppose it, but that's either because they don't understand it or don't want to understand."

Wardiman also said that the decree is consistent with the laws on education which authorize government supervision of the activities of private universities.

Private colleges are increasingly playing an important role in Indonesia as the 49 state universities are only able to accommodate 600,000 students at a time.

There are currently 1,122 private colleges offering 1.4 million seats nationwide. These colleges, unlike the state owned ones, do not receive government subsidies and charge hefty tuition fees.

Some of the leading universities have been beset by internal problems. Bickering in cases such as the appointment of rectors often comes at the expense of the student body.

The new decree is intended chiefly to protect the interests of students in the face of such problems, according to Wardiman. (emb)