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Government to hike subsidy for universities

Source
Jakarta Post - June 29, 2007

M. Taufiqurrahman, Jakarta – The government has announced it will increase the subsidy for higher education as of next year but admitted the funds will not reach poor parents wishing to send their children to university.

Director general of higher education at the National Education Ministry, Satrio Soemantri Brodjonegoro, said the government would disburse a Rp 13.5 trillion (US$1.5 billion) fund next year to subsidize costs at state-run and private universities.

"There will be a slight increase to around Rp 13.5 trillion from Rp 12.9 trillion this year," Satrio told reporters after a meeting with Vice President Jusuf Kalla on Thursday.

Satrio said the additional funds would be distributed to 82 state-run and privately-run universities throughout the country.

He admitted, however, that the increase would not cover education costs for university students.

"The amount is too small to meet the demands of poor families who want to have access to higher education," he said.

In recent years the government has decreased its subsidies for state-run universities and encouraged them to find their own funding sources.

As a result, some state-run universities began offering courses for exorbitant fees.

In recent years the government has paid 80-85 percent of tuition fees for students at state-run universities.

Only 11.8 percent of the state budget is currently allocated for education despite the amended Constitution requiring that 20 percent be allocated.

Last year, government spending on education amounted to Rp 44.1 trillion or 9.1 percent of the state budget. This year the budgetary slice was increased to Rp 54.06 trillion.

The Constitutional Court has ruled that the current allocation is still in conflict with the amended Constitution, which mandates a further 8.2 percent of the state budget be allocated for education.

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