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Govt offers state universities incentive to be more financially independent
A Rp 6 billion (US$402,000) annual reward will be given as seed funding for every new endowment fund successfully established, although the sum could change depending on an institution’s academic performance.
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Jakarta State University (UNJ) rector Komarudin interacts with a virtually-present graduate during a graduation ceremony in Jakarta on Nov. 21, 2021. The ceremony celebrated 2,946 graduates and used technology to replace physical attendance amid the COVID-19 pandemic. (JP/Seto Wardhana)
E
ducation, Culture, Research and Technology Minister Nadiem Makarim has announced that the government would start annually rewarding Rp 6 billion (US$402,000) to every state university that is able to set up and manage its own endowment fund beginning this year.
The incentive, to be disbursed with the help of the Finance Ministry and its Endowment Fund for Education (LPDP), will be given as seed funding for every new endowment fund successfully established, but the sum could change depending on an institution’s academic performance.
Speaking at a press conference on Monday, Nadiem said that investing in higher education institutions was the quickest way to help develop Indonesia, even though state universities had largely been lacking financial support.
“Higher education is the fastest gateway to building our economy, to build our country. But in reality, Indonesia is still a long way off compared with other countries in terms of funding for their higher education institutions,” he said.
Despite having the largest share of the annual state budget allocated to the education ministry – equal to a fifth of state funding – that money does not always trickle down into the rest of the country’s education system.
Read also: In Indonesia, sizeable budget not translating into quality education: Report
As of 2020, Indonesia’s annual spending for higher education averages at around $2,000 per student, according to ministry estimates. In contrast, Malaysia spends around $7,000 per university student per year, while the United States could spend upwards of $20,000.
