Indonesia targets free public higher education. Unraveling fiscal plans and the domino effect on state and private campuses
JAKARTA, KalderaNews.com – A major initiative is being prepared by the government to revolutionize the landscape of Indonesian education. President Prabowo Subianto has publicly announced an ambitious policy: waiving all education fees in public schools across all levels, from PAUD/kindergarten, elementary, junior high, and senior high/vocational schools, to State Universities (PTN).
This bold move has been enthusiastically welcomed by various stakeholders. The Ministry of Religious Affairs (Kemenag) and the Cabinet Secretariat (Seskab) have even referred to this discourse as an “extraordinary breakthrough” that could potentially position Indonesia as a global pioneer in delivering completely free education from primary levels through higher education.
“Where’s the Money Coming From? From What Was Stolen by Corruptors!”
A strong signal regarding this policy was sent by President Prabowo during the 28th Anniversary of the National Mandate Party (PAN) at the Jakarta International Convention Center (JICC). Prabowo reaffirmed his commitment to holding a limited cabinet meeting (ratas) shortly to execute the plan.
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“I completely agree. I will soon convene a limited meeting; in short, public education must be free! Public elementary, junior high, senior high, and public universities must be free! Where will the money come from? It comes from saved corruption money—from what was stolen,” President Prabowo emphasized.
Budget savings within the State Revenue and Expenditure Budget (APBN), government spending efficiencies, and funds recovered from anti-corruption efforts are projected to serve as the main backbone to finance the operations of approximately 164,000 public schools and dozens of state universities across the nation.
The Palace Moves Fast: A Special Team Is Formed
Far from being mere political rhetoric, the Palace is moving swiftly to finalize the concept. President Prabowo officially appointed the Coordinating Minister for Human Development and Cultural Affairs (Menko PMK), Pratikno, to head a special task force. Working alongside the State Secretariat (Mensesneg) and relevant ministries, the team is tasked with calculating budget ratios and mapping out an execution timeline.
Minister of Higher Education, Science, and Technology (Mendiktisaintek), Brian Yuliarto, confirmed that intensive discussions are currently underway.
“The President provided directives on how to make higher education free for state universities… He has also established a special team led by the Coordinating Minister, joined by the State Secretary, to analyze figures and stages,” Brian explained at the Presidential Palace Complex.
| Focus of the Special Task Force | Detailed Schemes & Plans |
| Fiscal Analysis | Mapping the real costs of waiving Single Tuition Fees (UKT), institutional development fees, and school/campus operational costs. |
| Program Phasing | Formulating a timeline starting from primary education up to PTNs. Early options consider prioritizing students in the lowest income deciles (Decile 4 and below). |
| Status of Autonomous State Universities (PTN-BH) | Brian Yuliarto clarified that PTN-BH status is not an obstacle, as it pertains to governance structures rather than funding sources. |
| Target Timeline | Financing schemes and fiscal analysis are targeted for completion within 2 to 4 weeks. |
Sectoral Support: From Kemenag to Legal Frameworks for Islamic Boarding Schools
Secretary-General of Kemenag, Kamaruddin Amin, expressed high appreciation for the initiative. Within Kemenag’s ecosystem, the total fee-waiver scheme will cover State Islamic Elementary Schools (MIN), State Islamic Junior High Schools (MTsN), State Islamic Senior High Schools (MAN/MAKN), and State Islamic Higher Education Institutions (PTKN).
“That is something extraordinary and really great. Excellent news for Indonesian education. Hopefully, our fiscal conditions allow it to materialize in the near future,” Kamaruddin remarked.
In addition to general schools, government attention to religious education was structurally codified through Presidential Regulation (Perpres) No. 18 of 2026, which officially established the Directorate General of Pesantren under Kemenag. This step ensures Islamic boarding schools (pesantren) receive equal funding and institutional support.
Meanwhile, Cabinet Secretary Teddy Indra Wijaya added that this acceleration focuses on three core pillars:
- Total Free Access: From PAUD/kindergarten to PTN/PTKN.
- Facility Revitalization: Repairing damaged school buildings and classrooms across Indonesia.
- Teacher Welfare: Increasing salaries and professional competence for educators as the cornerstone of learning quality.
Calls for Total PTN Reform: End Commercialization and Independent Selection Tracks
Beyond budget optimism, academics view the plan to waive tuition fees at state universities as a golden opportunity to execute a complete reform of higher education governance. The Rector of Paramadina University, Prof. Didik J. Rachbini, Ph.D., firmly urged that the free college policy must be accompanied by the complete abolition of independent admission tracks (jalur mandiri) and the end of commercialized student enrollment.
According to Didik, the proliferation of independent admission tracks in recent years resulted from past policies that forced state universities to generate their own revenue due to limited state budgets. Autonomy without strict oversight led to commercialization, turning prominent state universities into institutions operating much like mass-market tutoring centers.
This phenomenon is evidenced by disproportionate enrollment spikes at major campuses:
- Universitas Negeri Surabaya (Unesa): ~80,000 students
- Universitas Gadjah Mada (UGM): ~75,000 students
- Universitas Brawijaya (UB): ~65,000 students
Didik warned that over-allocating seats to independent tracks erodes academic quality, undermines meritocracy, and repeatedly creates loopholes for corruption and abuse of power in admissions.
As a solution, Prof. Didik proposed a rightsizing formula by allocating direct APBN subsidies ranging from IDR 500 billion to IDR 1 trillion for major state universities, and IDR 200 billion to IDR 500 billion for smaller PTNs. With this scheme, autonomous universities (PTN-BH) can refocus on being Research Universities backed by endowment funds, while student admissions are consolidated strictly based on academic merit and affirmative priority for low-income candidates.
Preserving the Private University Ecosystem
State university financing reforms cannot occur in isolation. Vice Rector of Paramadina University, Dr. Handi Risza, cautioned that higher education operates as an interconnected ecosystem. Regulatory intervention without careful macro-level planning risks destabilizing Private Universities (PTS), which have long served as a vital pillar in providing higher education access.
With free college fully backed by the state budget, PTNs will no longer bear the historical burden of generating internal revenue through high-tier UKT fees, exorbitant Institutional Development Contributions (IPI), or bloated student quotas.
Enrollment caps at public universities can be managed more methodically, shifting their focus from quantitative expansion toward qualitative research, innovation, and international standing (world-class university status).
Capping enrollment at PTNs automatically provides “breathing space” for private universities to recruit incoming students healthily. Dr. Handi outlined three affirmative government policies to support private higher education:
- Refocusing KIP Kuliah: Allocating a larger proportion of higher education assistance cards to low-income students attending private universities.
- Expanding Operational Incentives: Broadening operational support programs (such as PP-PTS), particularly for private institutions located in frontier, outermost, and underdeveloped (3T) regions.
- Strict Quality Control: Maintaining rigorous evaluation and quality assurance so that state protection does not inadvertently sustain underperforming private campuses or those operating merely as “degree mills.”
House of Representatives (DPR) Guidance: Pilot Projects and Fiscal Sustainability
Responding to this mega-project in education, Member of Commission X of the Indonesian House of Representatives (DPR RI), Habib Syarief Muhammad, suggested implementing free PTN tuition gradually through pilot projects.
The DPR highlighted three technical considerations prior to full execution:
- Comprehensive Mapping: Auditing faculty-to-student ratios, infrastructure readiness, and institutional capital across all state universities.
- Clear Coverage Boundaries: Clarifying whether state coverage is limited to tuition (UKT) or extends to broader living and operational costs for students.
- Fiscal Resilience: Ensuring APBN funding will not trigger operational disruptions or degrade academic standards at higher education institutions.
The plan by President Prabowo Subianto to waive tuition fees for public education from elementary school through state universities has received an official response from the Ministry of Finance.
Deputy Minister of Finance Suahasil Nazara stated that the government is currently focusing on formulating a national education grand design. This step is being taken to map out core needs before calculating and detailing the specific budget allocation for the free education program.
As part of this formulation process, the government is conducting a comprehensive evaluation of the total national education budget, which reaches approximately IDR 824 trillion per year. This massive fund is distributed across the central government including the Ministry of Primary and Secondary Education, the Ministry of Higher Education, Science, and Technology, and the Ministry of Religious Affairs as well as channeled to regional governments through local budgets (APBD). The government aims to ensure that this state budget allocation yields maximum benefits and outputs for the public.
This thorough evaluation focuses not only on budget absorption, but also on measuring the actual accomplishments and outputs resulting from the long-standing 20 percent mandatory education budget rule.
Key indicators being reviewed include the Net Enrollment Rate (APM), Gross Enrollment Rate (APK), and Indonesia’s PISA (Programme for International Student Assessment) scores to ensure genuine improvements in learning quality.
Furthermore, this grand design will integrate various existing education programs and ecosystems, such as the LPDP scholarship fund, Sekolah Rakyat, Sekolah Unggul Garuda, and integrated schools. The Ministry of Finance emphasized that this master plan is still actively being developed, and the final results will be presented transparently to the public once all studies are complete.
So, This free basic and higher education initiative carries the potential to mark a historic milestone in Indonesia’s human resource development. The public now awaits the official findings of the special task force led by Coordinating Minister Pratikno, expected in the coming weeks.
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