Getting To Know The LPDP Eternal Funds Called Will Be Stopped By The Government

LPDP opens a scholarship selection for specialist doctors in 2024. (LPDP)

Recently, the endowment of the Education Fund Management Institution (LPDP) has been in the spotlight after the government's plan to stop the budget emerged. This discourse caused a polemic because the government's narrative emerged to stop the LPDP scholarship program.

The confusion over the termination of funds for LPDP stems from the statement of the Coordinating Minister for Human Development and Culture (PMK) Muhadjir Effendy. He revealed the plan to stop the allocation of the State Revenue and Expenditure Budget (APBN) for LPDP scholarships because the institution currently has funds of around Rp140 trillion.

By stopping the addition, the entire budget for endowment funds for LPDP can be focused on improving the education sector, including research and higher education development.

The formation of LPDP cannot be separated from the role of Sri Mulyani Indrawati who took the initiative to set aside the allocation of education funds into the National Education Development Fund through Law Number 2 of 2010 concerning the 2010 State Budget. The same law also stipulates the form of governance funds in the form of endowment funds or endowments.

On December 28, 2011, LPDP was formed as a work unit under the Ministry of Finance through PMK Number 252 of 2010. LPDP was then implemented as an institution in the form of a Public Service Agency on January 30, 2012 after the ratification of KMK Number 18 of 2012.

Along with the government's commitment to education funds, as much as 20 percent of the education sector budget in the State Revenue and Expenditure Budget (APBN) is allocated for endowment funds.

According to Presidential Regulation Number 111 of 2021, endowment in the field of education is a permanent source of funds, and aims to ensure the continuity of education programs for future generations.

It is important to remember that this endowment fund cannot be allocated for shopping purposes. Quoting Tempo, LPDP Scholarship Director Dwi Larso emphasized that the endowment fund cannot be spent, what he spends is his yield.

Regarding the turmoil in society about the endowment fund for the suspended LPDP, education observer from Paramadina University Totok Amin spoke up. He emphasized that it is impossible to stop end eternal funds, because they are eternal, permanent, and continuous.

"If you say that the funds for LPDP have been discontinued, this is wrong, because of the endowment fund. Regarding the endowment fund for LPDP which is said to be stopped, this is actually only an addition that has been stopped and this is really a discretion from the government to allocate this fund for things that are considered more important," Totok said during a conversation with VOI.

Totok said, as long as the transfer of funds for LPDP scholarships has a good purpose and is not consumptive, it does not matter if the additional funds are temporarily suspended.

In practice, LPDP is responsible for managing all endowment funds in the field of education, including the Eternal Education Fund (DAP), the Endowment Fund for Research, the Endowment Fund for Higher Education, and the Endowment Fund for Culture.

During the process of managing endowment funds, LPDP collaborates closely with ministries and technical institutions such as the Ministry of Education, Culture, Research and Technology, the Ministry of Religion, as well as the National Research and Innovation Agency (BRIN).

The results of the management of endowment funds The results of the management of research endowments are used in the context of research, development, study and application to produce interventions and innovations. Meanwhile, the results of the management of cultural endowment funds are used to support cultural progress.

Then, the results of managing the eternal funds of universities are used to support the development of world-class universities in selected universities. In addition, there is an endowment fund for pesantren that is included in the DAP. These funds are allocated specifically for pesantren to ensure the sustainability of the development of pesantren education.

In the first year in 2010, the amount of LPDP's endowment fund was IDR 1 trillion. After more than a decade, the total endowment fund for LPDP reached IDR 139.11 trillion. This endowment fund is divided into four categories in 2023. First, education endowment funds of IDR 111.12 trillion and endowment funds for research worth IDR 12.99 trillion, respectively. Meanwhile, the amount of cultural and college endowments is IDR 5 trillion and IDR 10 trillion, respectively.

Seeing the number of recipients, LPDP has financed education through scholarship programs of 45,500 awards or students until December 31, 2023. Throughout last year alone, the number of LPDP scholarship recipients reached 9,959 people, while the number of LPP alumni as of December 31 was 21,373 people.