University%20Autonomy%20in%20Indonesia%20a%20conditio%20sine%20qua%20non - PowerPoint PPT Presentation

Title: University%20Autonomy%20in%20Indonesia%20a%20conditio%20sine%20qua%20non


1
University Autonomy in Indonesiaa conditio sine
qua non

• Chan Basaruddin
• University of Indonesia

2
Talking heads

• Brief profile of Indonesian HE sector
• Drives for autonomy
• Autonomy initiatives
• Lessons learned
• Concluding remarks

3

NUMBER OF INSTITUTIONS
YEAR YEAR 1995 2000 2000 2008 2008
 
PUBLIC PUBLIC
Universities Universities 31 41 48 48 48
Institutes Institutes 15 4 6 6 6
Polytechnics Polytechnics 26 25 26 26 26
School of HL (ST) School of HL (ST) 4 6 2 2 2
Total Total 76 76 82 82 82
PRIVATE PRIVATE
Universities Universities 251 303 403 403 403
Institutes Institutes 47 43 46 46 46
Polytechnics Polytechnics 8 29 127 127 127
Academy Academy 396 532 1028 1028 1028
School of HL (ST) School of HL (ST) 526 842 1263 1263 1263
Total Total 1228 1749 2865 2865 2865
Grand Total Grand Total 1304 1825 2947 2947 2947
4

ENROLMENT
Year 1995 2000 2008 Year 1995 2000 2008 Year 1995 2000 2008 Year 1995 2000 2008
Public institutions Public institutions 853,242 818,772 978,739
Private institutions Private institutions 1,450,162 1,681,175 2,392,417
Islamic occupational institutions Islamic occupational institutions 373,387 420,000 553,000
Total enrolment 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
5
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 servants
• Private
• 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

6
Drives for Autonomy

• Existing
• 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.

7
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

8
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
  

9
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
10
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

11
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

12
Existing set up of Public and Private Universities
Legal entity Foundation
Legal entity the state
Public Universities
Private Universities
Part of the Foundation No Autonomy
Parts of the Government No autonomy
13
Education Legal Entity Law
State is the Legal entity
Badan Hukum Yayasan, dll
The existing Foundation will be legalized As the
Education Legal Entity
Public Universities are parts the government
Perguruan Tinggi yang diselenggarakan Masyarakat
State owned legal entity
Adjustment on governance
14
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 autonomy Source World Bank.
15
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

16
Concluding Remarks

• Due to the size and scale of the sector, autonomy
  is a must
• Even the most competence wouldnt be able to
  centrally manage the sector
• Should be comprehensive and concerted efforts
• Its an up hill battle endurance is critical
• Policy consistency
• mixed signals can easily be misleading

17
Freedom is not worth having if it does not
include the freedom to make mistakes- Mahatma
Gandhi -
Thank you