Funding Higher Educational Studies

Last week Kompas published a report on the theme of the cost of higher education. The disparity between parents’ financial capacity and the cost of studies is widening.

KOMPAS/WAWAN H PRABOWO

The graduates attended the graduation ceremony for the 2017 State Finance Polytechnic State Finance Polytechnic (PKN STAN) students at the PKN STAN Student Center building, Bintaro, South Tangerang, Wednesday (4/10/2017).

Before the report appeared, higher-educational management circles had voiced their fears that the pandemic, lasting for over two years, had eroded parents’ financial capacity, so that their ability to send their children to college was also reduced.

The anxieties are reasonable. However, quite a number of universities are launching empathy programs to offer opportunities to senior high school (SMA) graduates to further their studies at universities via scholarship schemes as well as reduced-enrollment charges and tuitions. These programs are also offered to students already attending college, but having gone halfway, parents find it difficult to continue financing.

Also read:

> Helping the Poor to Pursue Higher Education

> Big Dreams to Pursue Higher Education

We are aware that apart from an actual problem like the pandemic, the higher-education world is in fact also facing a disruption caused by the expanding application of digital technology in higher education and the changing working requirements demanded by the industrial sector. For instance, there is the new demand resulting from the use of Industrial

Revolution 4.0 technology, as well as the emphasis on the competence and skills of graduates seeking jobs, which reduces the significance of diplomas.

DOKUMENTASI KBRI SINGAPURA

Singapore study group students after receiving a bachelor's degree from the Open University, Sunday (13/3/2022). They are all female Indonesian migrant workers in Singapore.

All these will possibly increase the need for investment in laboratories and other supporting infrastructures. However, it will not dampen the spirit of universities to provide greater opportunities for the younger generation of Indonesians to enable their higher level of studies.

As indicated by Professor Nizam, Director General of Higher Education, Research and Technology, higher education not only produces added economic value, but also heightened intellectuality, horizons, creativity, soft skills and leadership, which are useful for students as human capital for their future (Kompas, 29/7/2022).

Additionally, Gadjah Mada University lecturer Gumilang Aryo Sahadewo said much nonfinancial feedback could be gained from the effort to continue studies at universities rather than only earning SMA or vocational high school (SMK) diplomas.

Also read:

> Indonesian Parents Find It Harder to Pay for Children's College Tuition

> Education Is Not a Commodity

Ideally that is indeed the case, but despite Indonesia’s educational allocation amounting to 20 percent of the state budget (in 2022 worth Rp 621.3 trillion [US$41,812,835.54]), the fact is that the educational world in Indonesia still encounters many challenges, firstly in equity and secondly in quality.

Out of about 25 million elementary school students who can continue to attend junior high school, their number decreases to 10 million, then shrinks to 5 million in SMA; those who go to college only amount to 1.8 million. It is this number that, according to the special report of Kompas, is facing a financing constraint. We certainly support attempts to overcome the current funding problem. But on the other hand, higher-education authorities should also regulate which fields of study need to be prioritized.

This article was translated by Aris Prawira