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University Autonomy in Indonesia a conditio sine qua non. Chan Basaruddin University of Indonesia. Talking heads. Brief profile of Indonesian HE sector Drives for autonomy Autonomy initiatives Lessons learned Concluding remarks. NUMBER OF INSTITUTIONS. ENROLMENT. Existing : Public
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University Autonomy in Indonesiaa conditio sine qua non Chan Basaruddin University of Indonesia
Talking heads • Brief profile of Indonesian HE sector • Drives for autonomy • Autonomy initiatives • Lessons learned • Concluding remarks
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 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. Drives for Autonomy
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
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
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
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
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
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
State of University Autonomy in Select Countries After Undertaking Tertiary Sector Reform ↑ Autonomy increased ⌂ Some autonomy predates reform ≡ No change in autonomy Source: World Bank.
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
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
Freedom is not worth having if it does not include the freedom to make mistakes- Mahatma Gandhi - Thank you