Higher Education Budget Cuts Could Cause College Costs to Rise

JAKARTA, KOMPAS – Budget cuts by the Directorate General of Budget, Ministry of Finance, for the Ministry of Higher Education, Science, and Technology target non-civil servant lecturer allowances, various types of social assistance scholarships, and public services at universities. These budget cuts could result in increased tuition fees for students.

Budget cuts at the Ministry of Education and Science, which were originally planned at IDR 22.5 trillion, were changed to around IDR 14.3 trillion.

The reduction of operational assistance for state universities (BOPTN) that subsidizes single tuition fees (UKT) for students at state universities (PTN) is proposed to reach 50 percent of the total budget of Rp 9.8 trillion. Similarly, the allocation for PTN Legal Entities is cut by 50 percent from a total of Rp 6 trillion. Institutional assistance for private universities (PTS) is also cut by 50 percent from a total of Rp 365 billion.

Social assistance, which in Presidential Instruction (Inpres) number 1/2025 is not cut, is in fact also affected. In the Ministry of Education, Culture, Research, and Technology, social assistance includes the Indonesia Smart Card (KIP) College scholarships to finance students from underprivileged families in public and private universities, which are reduced by 9 percent, with an efficiency of around Rp 1.3 trillion.

In fact, scholarships for lecturers and education staff at home and abroad have been cut by 25 percent.

The Chairman of the Indonesian State University Rectors Council (MRPTNI), Eduart Wolok, contacted from Jakarta on Thursday (13/2/2025), regretted the budget cuts for higher education operations which affect students, lecturers, and educational staff. In fact, it was hoped that the cuts would not reduce services to students and lecturers.

"The allocation of BOPTN for each PTN alone is actually not enough to cover the single tuition fee or BKT for each student. The collection of single tuition fees (UKT) for students is still below the BKT, even with government subsidies through BOPTN, it has not covered it. Therefore, we request that there should be no cuts to BOPTN and KIP Kuliah," said Eduart, who is also the Rector of Gorontalo State University.

Eduart stated that not all public universities are able to find other funding sources outside of student tuition fees. In eastern Indonesia, for instance, income from tuition fees can reach 50-60 percent of the university's revenue.

"If the government subsidies, which are currently still insufficient or below the BKT needs, it is unavoidable that there will be an increase in UKT. This will affect new students. Therefore, we request a well-thought-out policy in the efficiency of direct assistance to universities targeting lecturers and students," said Eduart.

Likewise, the efficiency of the KIP College program, according to Eduart, should be canceled. Every state university is required to accept at least 20 percent of underprivileged students. In reality, many state universities accept more than 20 percent of underprivileged students. This is because the admission of new students at state universities through all channels considers the abilities of the prospective students, not the economic capabilities of their families.

"The more students from underprivileged families are accepted, the greater the subsidy from public universities will be. So far, the quota for the KIP College program does not match the number of students who fall into the underprivileged category. The universities subsidize by placing them in groups 1 and 2 with tuition fees ranging from zero rupiah to Rp 500,000 per semester. This means that public universities bear the burden of seeking additional funding," explained Eduart.

Separately, Minister of Higher Education, Science, and Technology Satryo Soemantri Brodjonegoro at the Working Meeting with Commission X of the House of Representatives, Wednesday, said that his party had combed through the initial ceiling and efficiency proposed by the Directorate General of Budget. The Ministry of Education, Science, and Technology proposed that the initial budget be maintained for the sake of good performance. However, cutting activities that can be postponed and do not have a direct impact on public services was also proposed.

Satryo said that the budget of the Ministry of Education, Science and Technology is actually a "pass-through". The Ministry of Education, Science and Technology receives a budget based on the initial ceiling of Rp 56.607 trillion, the allocation of which goes directly to PTN and students. "The Ministry of Education, Science and Technology Office manages no more than 10 percent of the total budget ceiling," said Satryo.

If the government subsidy that is currently still lacking or below the BKT needs, it is inevitable that there will be an increase in UKT. This is what will be affected, right, new students.

Based on Satryo's presentation to Commission X of the DPR, the cuts proposed by the Directorate General of Budget reached 25 percent or IDR 14.3 trillion from the initial ceiling of the Ministry of Education and Science and Technology of IDR 56.6 trillion. Unfortunately, this amount includes allowances for non-PNS lecturers (lecturer certification); social assistance (scholarships) such as KIP Kuliah, Indonesian Education Scholarships, Higher Education affirmation (Adik), KNB scholarships for international students, and lecturer scholarships, with a cut of 9–25 percent.

For all types of scholarships, the Ministry of Education and Science and Technology has requested that they not be cut, as well as the allowances for civil servant lecturers.

In addition, Satryo also fought for the Garuda Excellence School by building new high schools or improving existing excellence schools as one of the government's fast programs not to be cut. The budget for this excellence school in 2025 was IDR 2 trillion, but was cut by 60 percent.

"For BOPTN, we also asked for it to be returned to the initial ceiling. If it is cut in half, PTN can increase tuition fees. Likewise in PTN-BH, if the government's aid cuts are large, tuition fees can increase. In PTS, tuition fees can also increase," said Satryo.

Satryo said, based on the calculation of the Ministry of Education and Science and Technology, the amount of budget that can be cut is Rp 6.7 trillion or 12 percent, not 25 percent as proposed by the Ministry of Finance. This will make the room for Kemendiktisaintek to move optimally and PTN will not have a reason to increase UKT.

House of Representatives Commission X Chairperson Hetifah Sjaifudian said that initially the budget cuts for the Ministry of Education and Science and Technology were set at IDR 22.46 trillion, then reduced to IDR 14.3 trillion. Unfortunately, these cuts also targeted two spending components that should not have been cut.

"House of Representatives Commission X appreciates the efforts of the Ministry of Education, Science and Technology which has carried out efficiency as requested by the Ministry of Finance. However, it is necessary to pay attention to ongoing lecturer allowances, scholarships or social assistance, how come, they are also cut," said Hetifah.

Member of Commission X of the House of Representatives from the PDI Perjuangan Faction, Sofyan Tan, said that the education budget cuts are making Indonesia anxious about facing 2045. PDI Perjuangan supports that the budget that has a direct impact on students and lecturers should not be cut.

Sofyan reminded that in 2023 there was a commotion about the increase in UKT. At that time, Prabowo as a presidential candidate said that UKT at PTN could be free. One of the instruments is through KIP Kuliah, which unfortunately also has deductions.

"We support the KIP Kuliah budget to be returned to the beginning so that it can still help 200,000 new students from underprivileged families like the previous year. It must also be ensured that there is no increase in UKT," said Sofyan.

Support to secure student tuition fees was also given by the Gerindra Faction. Member of Commission X of the House of Representatives Ali Zamroni welcomed the budget reconstruction proposed by the Ministry of Education, Science and Technology to ensure that cuts do not affect basic education services.

"This must be conveyed objectively to the President and the Ministry of Finance. KIP Kuliah has been cut by Rp 1.3 trillion, if it is ongoing, it is impossible not to budget for the approximately one million students who receive it," said Ali.

Member of Commission X of the House of Representatives from the Golkar Faction M Nur Purnamasidi reminded that mandatory and priority budgets must be prioritized. For the education budget, there is an obligation for the government to allocate at least 20 percent of the APBN and APBD.

"For mandatory ones, the budget must be available and not cut. But non-mandatory ones such as civil service education in ministries/other institutions, actually, can be made more efficient amidst budget constraints. So, the mandatory budget is prioritized," Purnamasidi emphasized.