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Recent Developments of Higher Education in Indonesia : Issues and Challenges


  • Teguh Yudo Wicaksono

    (Centre for Strategic and International Studies)

  • Deni Friawan


During the last decades, Indonesia has witnessed a rapid expansion in higher education sector. However, a centralized education system had resulted internal inefficiency, poor initiatives-particularly in research and lack of public accountability in many Indonesia universities. Facing these issues, the government of Indonesia launched a new long term vision and reform covering all higher education institutions (both public and private HEIs). This paper, moreover, aims to outline the main characteristics of the higher education sector in Indonesia and reviews major policy developments. The paper will discuss issues and challenges in the development of higher education in Indonesia, particularly in financing of higher education, accessibility, and the development of research capacities. The reform results considerable challenges for HEIs, particularly in financial matters, though it also offers opportunities in the context of independency and autonomy. After a decade of reform, Indonesias universities still seek the best format and practices for facing a challenging future.

Suggested Citation

  • Teguh Yudo Wicaksono & Deni Friawan, 2008. "Recent Developments of Higher Education in Indonesia : Issues and Challenges," EABER Working Papers 21949, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:wpaper:21949

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    References listed on IDEAS

    1. Mohamad Fahmi, 2007. "Indonesian Higher Education: The Chronicle, Recent Development and The New Legal Entity Universities," Working Papers in Economics and Development Studies (WoPEDS) 200710, Department of Economics, Padjadjaran University, revised Oct 2007.
    2. Jim Davies, "undated". "Empirical Evidence on Human Capital Externalities," Working Papers-Department of Finance Canada 2003-11, Department of Finance Canada.
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    Cited by:

    1. Dumauli, Magdalena Triasih, 2015. "Estimate of the private return on education in Indonesia: Evidence from sibling data," International Journal of Educational Development, Elsevier, vol. 42(C), pages 14-24.

    More about this item


    higher education; Indonesia;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions


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