Indonesia - Higher education financing

Indonesia: Higher Education Financing 58956 Policy Brief October 2010 Key higher education financing issues A. Resource mobilization: Is Indonesia investing sufficiently in higher education? Total spending on public and private higher education in Indonesia is low as a percentage of GDP and reflects the low enrollment rate in HEIs. Indonesia's tertiary education participation rate is at the lower- middle end of the scale compared with other middle-income countries. Developed countries such as Denmark and Finland, spend between 2-3 percent of GDP on tertiary education and have higher tertiary graduation rates. Indonesia by comparison spends about 1.2 percent of GDP on Photo by: BINUS University Photo Archive tertiary education. Like many other lower middle-income countries, the relative figure mostly reflects lower enrollment and therefore graduation Indonesia's higher education sector has expanded rapidly since rates. Independence. Nearly 4 million students are enrolled in higher education institutions (HEIs) nationwide representing a gross enrollment One distinctive feature of tertiary education financing in Indonesia is rate of 26.6 percent. The expansion is characterized by the growing the large share of financing from households/private sources. Of the 1.2 provision of higher education by private institutions. There are currently percent of GDP spent on tertiary education, 0.9 percent or three-quarters more than 130 public- and over 3,000 private HEIs. Although public is contributed from private sources, mostly in the form of tuition and institutions represent just 4 percent of the total, they account for 32 other fees and levies. The private share is one of the highest in the world. percent of enrollments, with the remaining 68 percent enrolled in private institutions. Due to the expansion in the number of private providers, Figure 2: Public and private spending on Tertiary Education as Indonesia's tertiary education enrollment rates exceed population percentage of total GDP growth rates, with approximately 27 percent of 18-22 year-olds enrolled Malaysia 2.1 0 in higher education. Tunisia 1.8 0 OECD avearage 1.3 0.4 Jamaica 1.1 1.6 Figure 1: Gross tertiary enrollment rates in private and public India 1 0.2 institutions, 2001