1. University Autonomy in Indonesia a 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. YEAR 199520002008 PUBLIC Universities 314148 Institutes 1546 Polytechnics 262526 School of HL (ST) 462 Total 76 82 PRIVATE Universities 251303403 Institutes 474346 Polytechnics 829127 Academy 3965321028 School of HL (ST) 5268421263 Total 122817492865 Grand Total 130418252947 NUMBER OF INSTITUTIONS

4. Year 1995 2000 2008 Public institutions853,242818,772978,739 Private institutions1,450,1621,681,1752,392,417 Islamic & occupational institutions 373,387420,000553,000 Total enrolment2,676,7912,919,9473,924,156 Population (19-24 age)22,800,00023,800,00025,350,000 Gross Enrolment Rate11.7%12.3%15.5% ENROLMENT

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 NoBHMNSize of BoT% External 1U. Indonesia2133% 2U. Gadjah Mada2241% 3Inst. Teknologi Bandung2040% 4Inst. Pertanian Bogor2148% 5U. Sumatra Utara2157% 6U. Pend. Indonesia2055% 7U. Airlangga1741%

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 Public UniversitiesPrivate Universities Legal entity: the state Legal entity: Foundation Parts of the Government No autonomy Part of the Foundation No Autonomy

13. Education Legal Entity Law Public Universities are parts the government Perguruan Tinggi yang diselenggarakan Masyarakat State is the Legal entity Badan Hukum Yayasan, dll State owned legal entity The existing Foundation will be legalized As the Education 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 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

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