LPDP Scholarship Recipients Are Demanded to Return and Work for the Nation

Recipients of government scholarships are part of the state's investment which is considered important as the nation's future assets.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI.

DOKUMENTASI PRIBADI

Studying at Leeds University, England, was Rachmad Adi Riyanto's choice when he received an LPDP scholarship from the Government of Indonesia. Studying for a master's degree was only a year, but Adi was still active in student activities which gave him the opportunity to build an international network of friends and travel around the UK.

Scholarship Education Fund Management Institution is a form of government investment in producing superior quality human resources. A budget of hundreds of trillions of rupiah is allocated in the hope that the nation's assets will actively participate in building the nation after they finish studying.

The last few days have been full of talk about the LPDP scholarship, a further study scholarship borne by the government. The word ”LPDP” is also perched on the Top 10 trending topic on Twitter social media at least until Sunday, August 6, 2023.

The conversation started to get lively when President Joko Widodo asked the LPDP scholarship recipients to return to Indonesia after their study abroad period was over. "After coming home, after studying, work! Don't keep the knowledge for yourself. And most importantly, I entrust, go home! Go home! Go home!" said the President at the peak of the 2023 LPDP Festival (Kompas, 3/8/2023).

President Jokowi's statement has sparked pros and cons. Some agree with the President because they believe that scholarship recipients owe a debt to the country. Others have a different opinion because they often see the state neglecting the skills of the nation's best sons and daughters after they have studied at home or abroad. Some students who study abroad are reluctant to return home because they believe they can have a better quality of life abroad than in Indonesia.

Also read: President Jokowi Invites LPDP Scholarship Recipients to Return and Work in the Country

KOMPAS/CYPRIANUS ANTO SAPTOWALYONO

President Joko Widodo delivered a speech at the LPDP Fest event held at Kasablanka Hall, Jakarta on Thursday (3/8/2023).

The unease over the failure of some scholarship recipients to return is not a new phenomenon. In early 2023, LPDP CEO Andin Hadiyanto revealed that there were 413 scholarship recipients who did not return to Indonesia.

The reasons, among others, for scholarship recipients to marry citizens of the country where they study, continue doctoral studies, and receive higher salaries abroad. The President actually acknowledged this. "Although salaries here may be slightly lower, please come back home!" the President hoped.

National asset

The President's request for LPDP scholarship recipients to return to the homeland is in line with the goal of bringing excellent human resources as a driving force for national progress, in accordance with the initial spirit of the LPDP scholarship.

LPDP is a working unit under the Ministry of Finance. Its task is to manage perpetual funds, one of which is allocated to the education sector. LPDP was designated as a Public Service Agency (BLU) on January 30, 2012, following the enactment of Minister of Finance Decree Number 18/KMK.05/Year 2012.

In its vision, LPDP is mentioned as the best fund management institution to prepare future leaders and promote innovation for a more prosperous, democratic, and just Indonesia. This is done through financing education or scholarships.

The LPDP has set its focus on developing the quality of human resources in various fields to support the acceleration of Indonesia's development. Some of the prioritized fields include engineering, science, agriculture, economics, medicine, law, and socio-cultural. In other words, LPDP aims to produce excellent graduates who are spread across various fields for a better future of the nation.

Also read: Setting Up a Resilient International Network Towards Golden Indonesia

Considering the initial foundation, it is not excessive for the President, as the representative symbol of the country, to ask scholarship recipients to return and rebuild the nation. Furthermore, Indonesia is facing a demographic bonus. The role of national assets that have been prepared through education financing is very much needed.

So far, not a few LPDP alumni have returned and given birth to various innovations. One of them is Widya Putri (32), a graduate of the Masters in Food Quality Management at Wageningen University, the Netherlands. After graduating from his studies through an LPDP scholarship, he founded the Mushome startup business in 2016. He produces a variety of processed healthy food products from mushrooms, which were previously imported from China and Taiwan (Kompas.id, 18/5/2022 ).

The contribution of scholarship recipients is eagerly anticipated amidst increasingly competitive global dynamics. The experience of studying abroad is a valuable asset that can be adopted in one's own country. Moreover, Indonesia is currently actively promoting industrial downstreaming in various sectors. The role of overseas graduates is important to align human resource needs with the increasingly competitive business world.

State investment

Apart from the expectation of a large contribution from the recipients of overseas educational scholarships, the demand to return to Indonesia cannot be separated from the large amount of budget that has been disbursed. The state's decision to finance student education abroad is part of the government's investment for the future.

In its financing, scholarships are channeled using an endowment fund scheme (DA), especially in the field of education. However, the education field itself is divided into four groups, namely education, research, higher education, and culture.

This year, the overall allocation of endowment funds in the education sector amounts to IDR 20 trillion. Specifically, the education endowment fund receives the largest allocation, namely IDR 10 trillion, including the endowment fund for pesantrens. The rest is divided into IDR 5 trillion for research endowment funds, IDR 3 trillion for higher education endowment funds, and IDR 2 trillion for cultural endowment funds.

The Education Endowment Fund (DA pendidikan) is an accumulation of funds in the form of an endowment fund that comes from the allocation of education budgets from previous years. The fund is intended to ensure the sustainability of education programs for future generations. Unlike regular budget allocations, the endowment fund does not have to be spent within one fiscal year period.

Also read: Study Scholarships for Society and ASN Increased

DOKUMEN LPDP

Scholarship recipients of the Education Fund Management Agency (LPDP) who are members of the PK-150 Garuda Manggala have conducted a social project that targets literacy issues in the Penjaringan area, North Jakarta.

From the education DA allocation worth Rp 10 trillion, LPDP disbursed a scholarship fund of Rp 2.23 trillion. The budget is divided into three programs. First, the LPDP special scholarship with a budget of Rp 1.5 trillion. Second, the Ministry of Education, Culture, Research, and Technology scholarship program with a budget of Rp 533 billion. The latest is the Ministry of Religious Affairs scholarship program which is targeted to consume a budget of Rp 171 billion. Last year, the realization of scholarship disbursement from the education DA was larger, reaching Rp 4.19 trillion.

At the beginning of LPDP's formation, the allocated DA was only IDR 1 trillion. Over time, the endowment fund continued to grow to reach IDR 139.1 trillion this year. Since 2020, the government has sought to allocate at least IDR 20 trillion of the endowment fund in the education sector per year, adjusted to the country's APBN capabilities.

Because budget allocations do not have to be spent in full or must be used up in one year, the LPDP as the endowment manager invests in various instruments. Yields in 2023 are estimated at IDR 4.93 trillion.

As of August 3, 2023, special LPDP scholarships have been distributed to 40,174 of the nation's best sons and daughters. Furthermore, the recipients of the Kemendikbudristek scholarship program were 159,752 students and 20,089 students for the Ministry of Religion program. In total, LPDP as the manager of the endowment fund has financed more than 220,000 students, the nation's leading generation.

In the financial notes of the state budget, it is clear that the government categorizes perpetual funds as investment financing channeled to a service agency, namely LPDP. Thus, it can be interpreted that scholarship recipients are part of the government's investment deemed important as a national asset in the future.

Commitment

The government's efforts to produce an outstanding generation are implemented with high commitment. The indication is evident through the consistent allocation of funds that are intended for scholarship programs. If compared, the LPDP scholarship budget for the year 2023 is almost equal to the Bangka Belitung Islands Province's 2023 APBD budget, which reaches IDR 2.5 trillion.

Accumulatively, the eternal fund for education allocated at Rp 20 trillion per year can finance the spending of Bangka Belitung Islands for a decade or finance the spending of the Yogyakarta Special Region's Regional Budget for four years.

Also read: Scholarships and Joint Funding Expand Access to Study Abroad

IKATAN PENERIMA BEASISWA PENDIDIKAN INDONESIA ANGKATAN 140 'ANDRAWINAPALA'

The Indonesian Education Scholarship Association of the 140th Andrawinapala Batch organized a social activity with the theme of Sustainable Food Spices in the Innovation Village of Cimone, Tangerang, Banten. The activity is a concrete form of real contribution to the community.

It can be imagined how big the country's commitment is to produce excellent generations through the scholarship scheme. Therefore, it is reasonable for the government to demand that the recipients of these state scholarships return and work for the motherland.

Nevertheless, despite all obligations to serve the country, the state must be open to hearing various suggestions. The issue of income that is considered lower than overseas earnings can be re-evaluated as a form of appreciation for the efforts of graduates in contributing to nation building.

It is also important to give space for graduates to work and create. This can be started, for example, by implementing a selection system for positions that is honest and transparent. This step can be followed by open and accountable bureaucratic reform policies in order to attract the younger generation to serve in government.

The government sector is not the only field where scholarship alumni can maximize their potential to contribute. Service can also be conducted by directly engaging with the public through entrepreneurship and community empowerment. Ultimately, the commitment of both scholarship providers and recipients is eagerly awaited. (KOMPAS RESEARCH)