UIN Public Relations – The government’s plan to make public education free through college marks a significant shift in Indonesia’s education funding policy. This initiative goes beyond simply eliminating the Single Tuition Fee (UKT); it addresses more fundamental questions: Who funds higher education? How are funds allocated? Who is eligible for tuition waivers? And how is educational quality maintained?
As reported on the Ministry of Research, Technology, and Higher Education’s website, the government has assessed funding needs, including tuition fees (UKT), Institutional Development Contributions (IPI) for independent admission tracks, and other sources of revenue for public universities. Therefore, fiscal capacity and the implementation phases are key components of the policy design.
Experience in developing countries shows that there is more than one model for free college tuition. Argentina, for example, considers public higher education to be part of the right to education. Undergraduate education at public institutions is essentially free for citizens and permanent residents.
This model shows that tuition-free education can be designed as a civic right, rather than merely a scholarship program. However, free education does not eliminate the need for university funding. The government must still ensure that funds are available for faculty, facilities, research, and academic services.
Brazil follows a similar model. The principle of “gratuidade do ensino público em estabelecimentos oficiais” establishes that public education at official institutions is provided free of charge to students. Consequently, university funding is a public responsibility.
For Indonesia, this experience has shifted the question from “How much is the tuition fee for students?” to “What is the actual cost of producing high-quality graduates, and how much of that should the government cover?”
South Africa offers a different approach. Through the National Student Financial Aid Scheme (NSFAS), the government provides financial support to students from low-income and working-class families who meet the eligibility criteria. The assistance covers not only tuition but also expenses such as housing, transportation, and learning materials.
However, this experience has highlighted administrative challenges and budgetary constraints. By 2025, the government had even identified a funding shortfall of approximately R10.06 billion for universities under the NSFAS. This means that the broader the scope of free education, the greater the demands on fiscal capacity and the management of its funding.
The experiences of these three countries can be interpreted as three options for Indonesia: First, a universal model like that of Argentina and Brazil. Second, an affirmative action model like that of South Africa. Or third, a hybrid model, in which the state covers the basic educational needs of all students, while low-income students receive tuition waivers and additional financial aid. The last option is particularly relevant given the great diversity of Indonesia’s higher education institutions.
This issue becomes even more critical when considered in the context of PTN-BLUs and PTN-BHs. For PTN-BLUs, the elimination of UKT will increase the government’s funding requirements. The government needs to establish a formula for calculating the cost of education per student based on academic discipline, facilities, learning needs, and performance outcomes. In this way, the elimination of UKT will not result in a shortfall in operating funds.
PTN-BHs require a more complex structure. Greater autonomy means that their funding comes not only from the government, but also from the public and various institutional revenue sources.
If the UKT is abolished, the government will need to determine whether all education revenue will be replaced or only a portion of it. Full replacement has the potential to alter the pattern of financial autonomy, while partial replacement requires PTN-BHs to maintain diversification of revenue sources. Therefore, free tuition should be understood as a reform of the education financing system, not merely a policy to eliminate the UKT.
At least four elements need to be designed simultaneously: (1) a formula for calculating tuition costs per student, (2) a guarantee of government funding for public universities, (3) living expense assistance for low-income students, and (4) quality and accountability indicators.
Ultimately, the question is not simply whether students pay tuition, but rather who funds education, what the actual cost is, and how to ensure that such funding results in a quality education.
In the Indonesian context, the challenge is to ensure that free tuition does not result in funding shortfalls at public universities (PTN), a narrowing of autonomy for public universities with special status (PTN-BH), excessive dependence of public universities operating as public service agencies (PTN-BLU) on the state budget (APBN), or a decline in the quality of education. Hopefully, the government has carefully considered these challenges.
Prof. Dr. H. Muhammad Ishom, M.A. (Rector of UIN SMH Banten)
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