University Autonomy in Indonesia a conditio sine qua non
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University Autonomy in Indonesiaa conditio sine qua non
Chan BasaruddinUniversity of Indonesia
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Talking heads
• Brief profile of Indonesian HE sector• Drives for autonomy• Autonomy initiatives• Lessons learned• Concluding remarks
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YEAR 1995 2000 2008
PUBLIC
Universities 31 41 48Institutes 15 4 6Polytechnics 26 25 26School of HL (ST)
4 6 2
Total 76 76 82PRIVATE
Universities 251 303 403Institutes 47 43 46Polytechnics 8 29 127Academy 396 532 1028School of HL (ST)
526 842 1263
Total 1228 1749 2865Grand Total 1304 1825 2947
NUMBER OF INSTITUTIONS
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Year 1995 2000 2008
Public institutions 853,242 818,772 978,739
Private institutions 1,450,162 1,681,175 2,392,417
Islamic & occupational institutions
373,387 420,000 553,000
Total enrolment 2,676,791 2,919,947 3,924,156
Population (19-24 age) 22,800,000 23,800,000 25,350,000
Gross Enrolment Rate 11.7% 12.3% 15.5%
ENROLMENT
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Drives for autonomy
Existing : Public • Universities are agencies of the
MOE• Senior staff appointed by MOE• MOE is involved in management• Expenditure is controlled from
the Ministry of Finance• Public sector rules apply• Staff are civil servantsPrivate• Everything above but by
Foundation
Expected• Universities are autonomous
bodies• They define their own strategic
plans• They can appoint their own
staff• Free to generate and retain
income from all sources• Reporting on KPIs to MOE
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Drives for AutonomyExisting• Detailed budgets agreed with
MOE• Line item control over budget• Surrender of any under-
spending• Surrender of any income
generated• Inability to manage assets or to
borrow money externally
Expected• Block grants agreed• No detailed controls over sub
heads• Earnings can be retained• Under-spending retained• Freedom to switch or sell assets
and borrow funds• Accountability for overall
budget and performance.
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Initiatives to autonomy
• Government Decree No 61/1998– Public Universities can be converted to become a
state-owned legal entity (abbreviated as BHMN)
• Governance– Board of Trustees: the highest body
• Supported by Board of Auditors
– Academic Senate: the highest normative body on academic matters
– Rector: as the Chief-Executive Officer
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Board of Trustees
• Represents the interest of the government, society and internal stakeholders– Number of external members should be greater
that internal ones
• Main tasks include:– Appoint and discharge university leadership– Approve budget and set general policy– Ensure that the university is financially healthy
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External accountability
No BHMN Size of BoT % External
1 U. Indonesia 21 33%
2 U. Gadjah Mada 22 41%
3 Inst. Teknologi Bandung 20 40%
4 Inst. Pertanian Bogor 21 48%
5 U. Sumatra Utara 21 57%
6 U. Pend. Indonesia 20 55%
7 U. Airlangga 17 41%
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Academic Senate
• Represent the interest of academic community and academic disciplines– Professors and teaching staff are represented– The same true for each discipline
• Main tasks include– Establish academic norms, ethics and values– Advise Rector on academic matters– Provide inputs to BoT on Rector performance
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Education Legal Entity Law
• To establish a stronger legal basis for BHMN• Mandated by the Education Law enacted in
2003– All education institutions regardless of level and
type should be established as legal entity
• Expected to support the implementation of a full-fledge autonomy
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Existing set up of Public and Private UniversitiesExisting set up of Public and Private Universities
Public Universities Private Universities
Legal entity: the stateLegal entity: the state Legal entity: Legal entity: FoundationFoundation
Parts of the GovernmentNo autonomy
Part of the FoundationNo Autonomy
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Education Legal Entity LawEducation Legal Entity Law
Public Universities are parts the government
Perguruan Tinggiyang diselenggarakan
Masyarakat
State is theState is theLegal entityLegal entity
Badan HukumBadan HukumYayasan, dllYayasan, dll
State owned legalentity
The existing FoundationThe existing Foundationwill be legalizedwill be legalized
As As the Education Legal the Education Legal
EntityEntity
Adjustment ongovernance
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State of University Autonomy in Select Countries After Undertaking Tertiary Sector Reform
Country Own Buildings and
Equipment
Borrow Funds
Spend Budgets to Achieve Objectives
Set Academic Structure and
Courses
Employ and Dismiss Staff
Set Salaries
Indonesia ≡ ≡ ≡ ↑ ≡ ≡Japan ↑ ↑ ↑ ⌂ ⌂ ↑
Pakistan ≡ ⌂ ≡ ≡ ≡Thailand ≡ ≡ ↑ ↑ ↑ ↑
↑ Autonomy increased⌂ Some autonomy predates reform≡ No change in autonomySource: World Bank.
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Lessons learned• The initiative is still pretty much within the MoE
– Lack of support from MoF, MoP, MoSA• Lack of legal basis to support its implementation
– Major hurdles comes from staff conversion and block grant
• Fee increase is negative campaign for autonomy– Students and society perceive autonomy as
privatization• Inconsistency of government policies makes it
even more difficult to stay on course• Internal contention amongst three main organs
– Swing from the extreme side of pendulum
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Concluding Remarks
• Due to the size and scale of the sector, autonomy is a must– Even the most competence wouldn’t be able to
centrally manage the sector• Should be comprehensive and concerted
efforts– It’s an up hill battle; endurance is critical
• Policy consistency– mixed signals can easily be misleading
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Freedom is not worth having if it does not include the freedom to make mistakes
- Mahatma Gandhi -
Thank you