After much delay and controversy, the House of Representatives passed the Ministry of Education Bill called the Higher Education Act in July 2012. This article covers the details of the law and its implementation.
Despite the introduction of a bill designed to facilitate the commercialisation and internationalisation of higher education, Indonesia’s tertiary education sector remains largely untapped by foreign universities.
Rapid economic development in Indonesia has created a shortage of skills in most industries. This opens up the chance for private-sector actors to step into the breach by offering high quality education, particularly at the secondary and tertiary level as well as in vocational training.
Indonesia’s surging service industries suffer from a distinct shortage in the availability of skilled labour; an issue that to date has prevented the sector from realising its potential as the driving force behind the country’s continued economic growth.
A good education is in high demand in Indonesia's vibrant economy, where tens of millions of people join the job market every year. A growing number of parents are happy to consider paying for education to maximise their children's opportunities in the country's globalising economy.
Number of Tertiary Education Institutions: 4,384 (2015)
Type: 91.5% Private, 8.5% Public
Students in Higher Education: 6,959,622 (2015)
Net Enrolment Rate in Tertiary Education: 20.18% (2014)
Relevant Law: Higher Education Law No. 12 of 2012 provides universities with the autonomy to set their own tuition fees and authorising the set up of foreign universities in partnership with Indonesian institutions.
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