State universities brace for big monetary cutbacks

State universities brace for big monetary cutbacks

The government's plan to cut financial assistance to state
universities is worrying college administrators and students. The
Jakarta Post's reporters Ainur R. Sophiaan, Agus Maryono, Asip A.
Hasani, I. Wayan Juniarta, Jupriadi, Haryoso, Maria Endah Hulupi,
Neles Tebay, Theresia Sufa, Yuli Tri Suwarni, and Soeryo Winoto
look into the matter. Related story on Page 2.

JAKARTA (JP): Here's a riddle: A plane carrying 20 professors
suddenly develops engine trouble. The passengers discuss among
themselves ways out of their dilemma. Does anyone know the
answer? Answer: If 20 professors don't have the answer, what
chance do the rest of us have?

That essentially caps the problem facing dozens of state
universities across the country.

Starting this year, the government will phase out the
subsidies traditionally enjoyed by these universities. In keeping
with the move to give greater autonomy to the regions, these
universities will eventually have to be self-sufficient.

Although the government warned the universities about the
planned spending cuts some time ago, none of them are wholly
prepared for the huge cuts to be effected this year.

Not even all the professors and other talent the universities
can muster have an answer, at least so far.

Some warn that they may be forced to pass the buck to
students. They said the cuts could mean thousands more students
dropping out this year.

One or two have come up with some contingency plans to help
students.

For the period between April 1 and Dec. 31, only Rp 200
billion of the Rp 11.7 trillion education budget will go to the
70 state universities.

Part of this money will be used to finance their operations,
part for students' scholarships and the rest will go toward
financing development projects.

Comparison with the previous year's budget is difficult
because the government is changing the start of the fiscal year
from April 1 to Jan. 1 starting in 2001.

But most universities say this year's nine-month budget
represents a significant cut in government spending.

Most universities interviewed appear to have few or no answers
on how to cope with the cuts.

The University of Indonesia in Jakarta is resigned to the
cutbacks, which will particularly affect its operational funds
and scholarships for underprivileged students.

The Rp 3.6 billion operational fund will be eliminated. The
university will still need Rp 8.68 billion to support needy
undergraduate students.

"This will burden the university," Umar Mansur, the assistant
rector for student affairs, said.

The university charges two different tuition fees: Rp 750,000
a year for social sciences and Rp 1 million for exact sciences.
Students from low-income families pay less, and sometimes are
exempt from fees, Umar said, adding that of the 2,600 students
enrolled in 1999, 18 percent came from poor families.

Soedirman University in Purwokerto, Central Java, said its
development fund would be cut by more than 45 percent.

"The cuts will hurt universities, especially the small ones,"
Rubiyanto Misman said.

Cendrawasih University in Jayapura, Irian Jaya, said half of
its 6,740 students were on government scholarships, supplemented
by grants from companies such as PT Conoco, PT Santa Fe, Barito
Pacific, PT Pos Indonesia, Toyota Astra, Provincial Development
Bank (BPD) and the Asia Development Bank (ADB).

"The ADB assistance will end this month. And if the government
aid is also cut, almost 3,500 students will drop out because they
come from poor families," rector Frans Wospakrik said.

The Bogor Institute of Agriculture (IPB), with 12,000
students, will be affected by the cutbacks, but rector Aman
Wirakartakusumah declined to go into detail at this stage.

Diponegoro University in Semarang, Central Java, said the
spending cuts were a setback and noted that many other countries
were raising their budgets for higher education.

"Higher education must be dealt with through concrete and
responsible steps," rector Eko Budihardjo said.

Gadjah Mada University in Yogyakarta said it would receive Rp
4 billion in operational funds from the government this year,
about a third of what it received in 1999.

"It is an extreme drop," rector Ichlasul Amal said.

Airlangga University in Surabaya, East Java, said it had not
received details on how much it would receive from the government
this year.

"If the government assistance is cut, we will have to make
some adjustments. Raising tuition will be a last resort,"
Effendie, assistant rector for administrative and financial
affairs, said.

I Ketut Sukardika, rector of Udayana University in Denpasar,
Bali, said the cuts meant halting all physical projects. The
completion of the new campus in Bukit Jimbaran, 25 kilometers
south of Denpasar, will be delayed.

"I don't understand why the government keeps bailing out
troubled banks but cuts education spending," Sukardika said.

"Hiking tuition means depriving bright students from poor
families of their studies. Almost 70 percent of our 12,600
students come from poor families," he said.

Gadjah Mada University appears to be better placed to cope
with the cuts because it has a Rp 10 billion endowment fund.

"The interest from this fund is used to pay for scholarships
for 2,000 students. Each one gets Rp 100,000 per semester,"
rector Ichlasul said.

The endowment fund is mostly from joint projects Gadjah Mada
runs with private companies, including oil giants Pertamina and
Caltex. These projects will continue.

"Once the endowment fund reaches Rp 20 billion, all our
operational costs will be covered," Amal said.

The Bandung Institute of Technology (ITB) in the West Java
capital runs a cross-subsidy scheme by which its 4,000 post-
graduate students pay higher fees, while some 10,000
undergraduate students pay less.

Regular postgraduate students pay between Rp 6 million and Rp
8 million a year, while the more advanced students pay between Rp
15 million and Rp 20 million per annum.

ITB cooperates with private businesses and through this it has
built an endowment fund to finance its operations.

"We urge the government to contribute between Rp 1 trillion
and Rp 3 trillion toward the fund. This would be a better
investment than recapitalizing unsound banks," Djoko Santoso,
assistant rector for administrative and financial affairs, said.

ITB last year collected Rp 75 billion from the public, but it
needs at least Rp 150 billion a year to finance its operations.

North Sumatra University, which has 20,000 students, is
hopeful that the cuts will not be as bad as portrayed in the
media.

"It's still only a plan. We believe that when the time comes,
the government will fork out enough money for the universities,"
rector Chairuddin P. Lubis said.

The university has some Rp 3 billion in an endowment fund.
"The amount is far too small," Chairuddin said.

"Rp 100 trillion in an endowment fund would be realistic. This
would mean we could collect Rp 1 trillion in monthly interest
which would cover our activities," he said.