Government Considers Option To Stop LPDP Funds To Fix Research

Coordinating Minister for Human Development and Culture (Menko PMK) Muhadjir Effendy. (ANTARA/HO-Kemenko PMK)

JAKARTA - The government is considering the option to stop the allocation of the State Budget (APBN) to the Education Fund Management Institution (LPDP) so that the portion of education funds of 20 percent per year can focus on fixing research and development.

The statement was made by the Coordinating Minister for Human Development and Culture (PMK) Muhadjir Effendy in response to the ratio of highly educated people in Indonesia, which is still relatively low.

"Yesterday, we also reviewed what the LPDP should continue, with the current amount of almost Rp140 trillion. We will likely stop it first," said Muhadjir Effendy at the Presidential Palace in Jakarta as reported by ANTARA, Tuesday, January 16.

He said that every year the government sets aside an average of around IDR 20 trillion from 20 percent of the allocation of education funds, so far almost IDR 140 trillion has been collected.

The Minister of Education and Culture (Mendikbud) for the 2016-2019 period welcomed President Joko Widodo's (Jokowi) direction so that the future research budget portion was enlarged, one of which was through the option of the education fund.

"The education fund is 20 percent, automatically it increases every year, if the APBN increases, automatically become the minister of education or become a minister who takes care of education, sleep has automatically increased the budget, and that must be increased efficiency," said Coordinating Minister Muhadjir.

With this option, said Muhadjir, it is hoped that the 20 percent education budget can be fully used to improve the ratio of highly educated people in Indonesia, including the need for research and development budgets.

"The budget allocation for research is increased, including the allocation of scholarship fees, including education for universities, Diploma, S1, S2, S3 can be increased," he said.

Muhadjir also ensured that this option would not stop the LPDP program, as long as the funds raised are now invested by the manager into various more profitable instruments.

"Yesterday I was the Chairman of the LPDP Board of Persons, it has been agreed, including we must have started to dare to invest in sectors that are rather risky, but it is also profitable," he said.

Previously, on the agenda of the XXIX Convention and the XXV Annual Meeting of the Indonesian Chancellor's Forum in Surabaya, Monday (15/1), President Jokowi stated that the ratio of people with undergraduate and doctoral education to productive populations in Indonesia was still very low.

"Indonesia is at 0.45 percent. 0.45 percent. Our neighboring country, Vietnam Malaysia, has reached 2.43 percent. Developed countries are 9.8 percent. Very far away," said Jokowi.