The Tangled Thread of Indonesian Higher Education

Student burdens are increasing due to ever-increasing tuition fees and the threat of unemployment after graduation.

Students now have a double burden outside the learning process. The burden is to prepare a certain amount of funds until graduation and the threat of becoming unemployed after graduating due to limited employment opportunities.

Almost every year, there are students from a number of universities who protest against the policies of the institutions where they study because of the increase in fees called single tuition fees (UKT).

Recently, in Purwokerto, Central Java, for example, hundreds of students from Jenderal Soedirman University demonstrated against the increase of tuition fees in several study programs that they deemed burdensome. In Medan, students from the University of North Sumatra also demonstrated against the increase of tuition fees.

In 2024, there will be an adjustment to the operating costs of higher education based on the Decision of the Minister of Education, Culture, Research and Technology of the Republic of Indonesia Number 54 / P / 2024 regarding the Standard Amount of Unit Costs of Higher Education Operations.

In the regulation, the Standard Unit Cost of Higher Education (SSBOPT) affects the adjustment of the Tuition Fee Determination based on several variables, namely the learning process or study program, accreditation, and region.

Tuition fees which continue to rise every year make students feel overwhelmed, so it is not surprising that this causes anger and protests. The tuition fees are so expensive that many prospective students want to withdraw because they cannot afford the UKT.

In the middle of the study period, many students apply for tuition fee waivers. For those who still cannot pay tuition fees, there has been a solution to take advantage of online loans through applications in collaboration with universities. After making a lot of noise in cyberspace last February, an option emerged from the government to provide education loans.

This education loan is called a student loan (student loan) in the form of a soft loan that can be paid after students graduate from college and when they get a job.

This student loan is planned to be intended for students from middle to low income families. These are the ones who experience financial difficulties and are in UKT arrears, but do not qualify for scholarships for poor students (Kompas, 19/3/2024).

Also read: Single Tuition Fee: Conflict over Higher Education Funding

The principle of justice

The implementation of tuition fees through the Integrated Tuition Payment System (UKT) since the 2013/2014 academic year is basically an effort to apply the principle of justice that provides space for students to pay tuition fees according to their parents' ability.

The assumption is that those who come from financially privileged families work together to cross-subsidize students from less fortunate families. The government has chosen this path because amid the expensive nature of higher education, the government has limitations in providing subsidies to universities.

The amount of UKT (Integrated Tuition Fees) varies according to the entry channel. Payment of tuition fees for each entry channel in the national selection of new students is determined based on a graduated UKT group, ranging from the lowest to the highest according to the economic ability.

In the self-funded program, in addition to paying tuition fees every semester, there is also an institutional development fee (IPI) or also called an admission fee. In the national selection program based on achievements (SNBP) and the national selection program based on tests (SNBT), tuition fees are also imposed in stages.

KOMPAS/MACHRADIN WAHYUDI RITONGA

A group of students from the Bandung Institute of Technology demonstrated in front of the ITB Rectorate on Sulanjana Street, Bandung, West Java, on Monday (29/1/2024). They demanded ease in paying the one-time tuition fee without having to involve high-interest online loans.

However, the potential for increased tuition fees over time has been predicted to be a ticking time bomb. This is because the adjustment of tuition fees is not calculated much differently from the current costs. The adjustment of tuition fees is based on the previous year's education funding that has already been expensive.

The exorbitant cost of education is not separate from the condition when higher education institutions, especially state universities, underwent a change of status to become state-owned legal entities (PT BHMN) in 2000. At that time, PT BHMN was given the freedom to collect funds from the public for operational independence and to improve the quality of education.

This condition is the root of the tangled thread of higher education financing. The expensive education costs at BHMN institutions have also raised tuition fees at non-BHMN PTNs. The high tuition fees are even more felt by elite study programs such as medicine and engineering.

Also read: Increasingly Higher Tuition Fees

Potential unemployment

After struggling with the tangled threads of financing during college, students are also faced with the threat of becoming unemployed after graduating from college.

A release from the Central Statistics Agency on May 6 stated that the level of open unemployment in the group of Diploma IV, S-1, S-2 and S-3 graduates as of February 2024 had increased by 0, 11 percent compared to the February 2023 period.

Meanwhile, in other education groups, the open unemployment rate has decreased. The largest decrease occurred in the group of junior high school graduates, which is 0.13 percent.

Looking back, the increase in unemployment rates among educated individuals has been happening since a year ago. In February 2023, the unemployment rate among diploma graduates (including diploma IV) and bachelor's degree holders was recorded at 11.8 percent.

This figure has increased compared to February 2022 which was 9.9 percent. In August 2023, the number rose again to 12.2 percent or a total of 959,870 people.

The increasing unemployment among the educated population is not unrelated to the technological disruption that has a significant impact on the job market. While new jobs emerge, they may also eliminate certain types of jobs.

There is a change in the skills needed along with digitalization. College graduates do not immediately match the business world. Apart from that, the reduction in job opportunities for educated people is also a result of stagnant economic growth.

This is the real situation that will be faced by the Indonesian generation entering the gates of higher education, entangled in the tangled threads of higher education. (R&D COMPAS)

Also read: After Student Protests, Unsoed Sets New Rules Regarding UKT