Private Universities' Existence Threatened, State Universities Called 'Dredgers'
The Rector of Universitas Islam Indonesia (UII), Professor Hari Purnomo, has stated that private universities are currently facing serious challenges after various state universities obtained the status of PTN-BH (State University with Legal Entity). If this is left without a solution, both by the government and the internal parties of private universities themselves, the existence of private universities in the future is considered to be problematic.
The main consequence for Private Universities (PTS) after State Universities (PTN) are elevated to PTN-BH status is the occurrence of inequality in the intake of new students and increasingly tight competitive pressure. PTN-BH status provides state campuses with the flexibility to expand, which often has a direct impact on the survival of private universities, said Hari Purnomo during the inauguration of the UII Alumni Association regional board in Yogyakarta on Friday (21/8/2026).
In his written statement, Hari said that the most visible impact of PTN-BH on private universities is a decline in student numbers. And this reality is truly happening now.
So the impact and consequence of PTN-BH for private universities is a decline in student numbers. PTN-BH has the autonomy to enlarge its intake capacity or student body. This causes the interest of prospective students to be massively absorbed by state universities, so that many private universities are experiencing a decline in the number of new applicants. For example, Gadjah Mada University and Yogyakarta State University this year admitted up to 13,000 new students. Meanwhile, for a private university to get 5,000 new students is already very difficult, he said.
On the other hand, Hari said, the existence of PTN-BH has led to a domination of the higher education market. This is due to the still high perception that state universities are certainly of better quality than private universities. In fact, according to him, with the existence of PTN-BH, state and private universities are now of equal quality, and in certain fields or departments many private universities are even better than state universities.
As a result, public interest in the perception of state campuses with legal entity status makes private universities (especially small or medium-scale ones) find it difficult to compete in attracting students. Even though their quality is often better, said Hari.
Regarding this reality, Hari continued, private universities must now inevitably carry out innovation and quality improvement in their establishment in order to survive and be able to attract new students. Ultimately, private universities are forced to adapt quickly through improving service quality, operational efficiency, and differentiation of study programmes so that they remain in demand amidst the dominance of PTN-BH.
This is because state universities are now free to accept as many new students as possible and open new departments without needing to refer to existing nomenclature or regulations. State universities are now like dredgers, Hari asserted.
As is known, with PTN-BH, state universities in Indonesia now have full autonomy in the management of academics, finance, facilities and infrastructure, as well as staffing independently. This status is regulated under Law Number 12 of 2012 concerning Higher Education.
Regarding the form of PTN-BH autonomy, there are several aspects. First, in financial management: state universities now manage budgets, non-tax revenue, and endowment funds independently. Second, in the academic field: state universities can now open, organise, and even close their own study programmes. Third, in the field of staffing: state universities can now appoint and dismiss lecturers and non-civil servant educational staff.