Budget Cuts in Higher Education May Lead to Tuition Fee Increases

The Ministry of Higher Education, Science, and Technology (Kemendikti-Saintek) is facing a significant challenge due to the government’s budget efficiency policy. These funding cuts could have a major impact on the cost of higher education in Indonesia, affecting both public and private universities.

According to a report from Kompas.com, Minister of Higher Education, Science, and Technology, Satryo Soemantri Brodjonegoro, stated that the initial allocation of Operational Assistance for Public Universities (BOPTN), amounting to Rp6.018 trillion, has been reduced by Rp3 trillion. He emphasized that this reduction might force universities to increase tuition fees to compensate for the financial shortfall.

Furthermore, financial aid for private universities, originally budgeted at Rp365.3 billion, has been cut by 50 percent. Similarly, the Legal Entity Public University Funding Assistance (BPPTNBH) program, which initially had a budget allocation of Rp2.37 trillion, has also faced a 50 percent reduction. Satryo expressed hope that Commission X of the Indonesian House of Representatives (DPR RI) would advocate for restoring the budget to its original amount to prevent universities from having to raise tuition fees.

Responding to the potential tuition hike, Eduart Wolok, Chairman of the Indonesian State University Rector Council (MRPTNI), stated that the most rational solution for universities to address the budget cuts is to increase tuition fees (UKT). He added that not all universities have alternative revenue sources outside of student tuition fees, making budget reductions significantly affect campus operations. (Presisi.co, 14/02/2025)

On the other hand, according to a report from Detik.com, Kemendikti-Saintek has assured that scholarship funds, including the Kartu Indonesia Pintar (KIP) Kuliah program, remain unaffected by the budget efficiency measures. This initiative aims to support financially disadvantaged students so they can continue their education without disruption.

The budget cuts have sparked concern among students, who fear that increased tuition fees could make higher education less accessible, especially for those from lower-income backgrounds. To address these concerns, collaboration between the government, universities, and key stakeholders is necessary to ensure that higher education remains affordable and of high quality in Indonesia.

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