Indonesian private university faces closure

GD&TĐ - Enrollment in private universities in Indonesia has dropped sharply as students switch to public schools or low-cost short-term skills training courses.

This trend not only puts great financial pressure on private schools, but also raises concerns about the balance and sustainability of the national higher education system.

Indonesia's private higher education system is facing its most serious crisis in years, with enrolment set to plummet by 28% by 2025.

The main reason is believed to be the expansion of “jalur mandiri” programs – independent admission routes at public universities that allow candidates to gain admission without taking the national exam, provided they are willing to pay high tuition fees.

According to the Association of Private Higher Education Institutions of Indonesia (APTISI), there are currently nearly 3,000 private universities compared to only 125 public universities nationwide. However, despite accounting for 80% of all university students, private universities only receive about 5% of the state budget allocated for education. In the two years 2023-2024, 23 private universities have had to close, and another 80 are facing the same risk due to a lack of students, lecturers and standard facilities.

“Jalur mandiri has changed the admissions landscape significantly. It has made it possible for students to study in prestigious public universities, provided they have the financial means,” said lecturer Desi Sommaliagustina from Andalas University (Padang).

This has led many students who intended to study at private schools to switch to public schools, even though the fees are similar. Public schools are seen as having better reputations and career opportunities, making private schools less attractive.

“In Yogyakarta, 12 private universities have closed this year alone. The jalur mandiri route of public universities really harms the private system,” said Achmad Nurmandi, president of Muhammadiyah University of Yogyakarta.

According to Dr. Ricky Agusiady of the Association of Indonesian Private Higher Education Institutions (ABPPTSI), the unlimited expansion of public universities makes competition “one-sided” and without fair budget allocation, private universities will collapse en masse.

The situation is further exacerbated by the new generation of students (Gen Z) who prioritize learning practical skills over academic theory. “Many students choose short-term skills training courses, online learning or boot camps instead of going to university. More and more companies no longer require university degrees,” said education analyst Muhammad Arif from Syarif Hidayatullah Islamic University (Jakarta).

Digital platforms offering short, low-cost, career-certified courses are fast becoming alternatives to traditional universities. The result of this trend is a deep financial crisis at private schools.

To sustain its operations, a private school needs at least 5,000 students, but most now have only half that number. Reducing tuition fees to attract students is also not a solution, because operating costs from lecturer salaries, electricity and water to facilities remain unchanged.

Faced with this risk, MP Lita Machfud Arifin has called on the Indonesian Ministry of Education to set a limit on the number of students recruited through “jalur mandiri”, to ensure a balance between the public and private sectors.

“Fewer students means less revenue, while lecturers in private universities still have to teach, research and publish academically like those in public universities. Many have left teaching. Without relief, Indonesia will face a shortage of intellectuals and thinkers in the future,” said Dr. Ricky Agusiady of the Association of Private Higher Education Institutions of Indonesia (ABPPTSI).

According to University World News

Source: https://giaoducthoidai.vn/dai-hoc-tu-thuc-indonesia-doi-mat-nguy-co-dong-cua-post754467.html