Government Plans To Disburse IDR 20 Trillion To Strengthen LPDP Education Endowment Fund

Illustration (Photo: Doc. LPDP Ministry of Finance)

JAKARTA - The government through the Ministry of Finance is said to be disbursing additional funds of Rp. 20 trillion to strengthen the structure of the education endowment fund.

Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said that the placement of the funds came from the state budget for the 2022 budget year.

"The government plans to allocate an endowment fund in the education sector of IDR 20 trillion in the 2022 state budget," he said at the Departure Preparation Webinar for the Education Fund Management Institute (LPDP) Batch 185 and 186, Friday, May 27.

According to Suahasil, this step is in line with the mandate of the Indonesian Constitution which mandates 20 percent of APBN funds for the education sector budget. For this reason, he asked the Public Service Agency (BLU) of the Education Fund Management Institute (LPDP) to optimize the budget provided by the government as best as possible.

"All endowments must be managed and developed," he stressed.

According to VOI records, the total endowment funds in the education sector as of March 31, 2022 amounted to IDR 99.1 trillion. The funds come from part of the education budget from the APBN which has been set aside every year since 2007.

In detail, the endowment also includes a research endowment of Rp. 8 trillion, a university endowment of Rp. 7 trillion, and a cultural endowment of Rp. 3 trillion.

"The endowment cannot be used, but we can use the results from the management of the endowment," concluded the Deputy Minister of Finance, Suahasil Nazara.