Private universities wary of foreign competitors

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

Private universities in the country called on the government on Monday not to allow the operation of foreign universities here, citing their unreadiness to face competition.

"The presence of foreign universities, thanks to their better facilities and manpower, would attract local students. It will threaten the existence of local private universities," head of the Association of Private Universities Management (ABPPTS) Thomas Suyatno said after a meeting with Vice President Jusuf Kalla.

Thomas said that during the meeting the association urged the government to ban full foreign investment in higher education here until local private universities improved their facilities and human resources.

However, the association suggested that the government allow foreign universities to open branches here in cooperation with local universities.

"Please, do not open the door too wide. Do it in stages until local universities are ready," Thomas said.

According to Thomas, local universities were facing difficulties in raising their standards due to government policies that do not favor private universities.

Citing one example, he said the government did not provide a special discount for property tax imposed on private universities and for income tax imposed on their lecturers.

"The government imposes income tax on scholarships obtained by our lecturers to continue their studies abroad. The government even imposes the same tax on their research funds," said Thomas of the Jakarta-based Atmajaya Catholic University.

The government also requires private universities to pay property tax, equivalent to the amount imposed on profit-oriented enterprises, he said.

"How do you think we can improve our quality under such conditions?" said Thomas, who is also a former legislator.

The association groups 357 local private universities across the country.

There are over 2,000 higher education institutions in Indonesia.

There has been a clear increase in the number of foreign universities opening branches in the country, following the government's decision to liberalize the education sector in Indonesia in 2002.