Safeguarding Hope for the Future of Private Higher Education Institutions in Indonesia

Safeguarding Hope for the Future of Private Higher Education Institutions in Indonesia

The plan of the Ministry of Higher Education, Science and Technology (Kemdiktisaintek) to limit the number of new undergraduate student enrolments at state universities (PTN), particularly for campuses with autonomous legal status (PTN-BH), merits appreciation and swift implementation. This policy brings fresh prospects and renewed hope for Indonesia’s private higher education institutions (PTS).

Private Higher Education’s Strategic Role

Private higher education institutions play a large and strategic role in developing higher education in Indonesia. For decades, PTS has been an important pillar in expanding access to higher education for the community. However, in recent years, PTS has faced serious challenges, from declining student numbers to increasing competition with state universities. Therefore, maintaining the sustainability and future of PTS has become an important agenda in national education development.

In terms of the number of institutions, PTS actually dominates Indonesia’s higher education system. Ministry data shows that in 2025, there are 2,713 institutions, of which approximately 95.5% are private higher education institutions. By contrast, there are only around 127 state universities, or less than 5% across Indonesia. This dominance of PTS demonstrates that the non-state sector plays a major role in providing higher education services.

The role of PTS is also evident in student enrolment figures. Data from the Central Statistics Agency (BPS) shows that students studying at PTS exceed 4.8 million people, a figure even larger compared to students at PTN, which reaches around 4.4 million by the end of 2025. This data confirms that PTS is not merely a supplement to the higher education system, but rather the backbone in providing higher education access to the general public.

Challenges Facing Private Higher Education

Despite their large numbers, many PTS currently face serious challenges. In recent years, many private institutions have experienced declining new student enrolment. Several reports indicate that student decline at PTS ranges from 20% to 30%. In fact, there are PTS that fail to meet their new student recruitment quotas. Data shows that around 30% of PTS can only recruit fewer than 50% of their target new student quota.

This situation is certainly a serious problem because most PTS heavily depend on student tuition fees as their main source of funding. It is estimated that approximately 95% of PTS operational funding comes from student education fees. When student numbers decline, the campus’s ability to carry out operations, improve lecturer quality, and enhance facilities is also affected, even impacting the sustainability of PTS. Therefore, government intervention is necessary to address this, including restricting new student admissions at state universities, both in numbers and duration.

Ecosystem Imbalance and Student Admission Policy

The challenges facing PTS are also linked to the structure of Indonesia’s higher education ecosystem. The government provides greater support to PTN due to their status as state-owned institutions. State universities receive various forms of assistance such as operational budgets, education subsidies, and larger research programmes. In contrast, most PTS must rely on internal resources. Yet there are far more PTS than PTN. This disparity makes many PTS struggle to compete in terms of facility quality, research, and academic reputation.

Moreover, the policy of accepting new students at state universities through various selection pathways and longer admission periods has significantly impacted PTS. Both national and independent selection routes allow state universities to accept large numbers of students, so prospective students who might previously have chosen PTS end up absorbed by state universities. If this situation continues without balanced regulation, some PTS may face survival difficulties.

Strategic Steps to Safeguard PTS’s Future

To ensure PTS’s future remains secure, various strategic steps are needed from both the government and private institutions themselves. The government must create more balanced policies in the higher education ecosystem. One approach is regulating student intake quotas at state universities to prevent them from dominating the higher education market. The Kemdiktisaintek’s plan to limit student admissions requires strong support and careful implementation oversight.

Equally important, funding support for PTS must be strengthened. The government can provide operational assistance programmes, research grants, and lecturer capacity-building initiatives that are more inclusive for PTS. One initiative that could be implemented is providing operational assistance for higher education institutions (BOPT) for PTS, which to date has only benefited state universities through BOPTN. This policy is expected to alleviate the operational burden of private campuses and student education costs, based on principles of equitable justice.

Additionally, PTS itself must commit to quality improvement through internal transformation. Enhancing education quality, programme accreditation, and strengthening collaboration with industry are important steps to increase competitiveness. Digital technology utilisation and online learning can also become opportunities for PTS to reach students more widely, particularly in areas that lack adequate higher education access.

Safeguarding National Education Hope

Private higher education has long been an essential part of Indonesia’s higher education journey. With their large number of institutions and capacity to serve millions of students, PTS has demonstrated their vital contribution to national education development. It is therefore crucial that policymakers and stakeholders work together to ensure their future remains bright.