Private universities wary of foreign competitors

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.