The government plans to provide free tuition fees at the higher education level. However, the policy needs to be designed with consideration for fairness and equitable access to education. The free higher education program should not only target students at public universities, but also students from low-income families who pursue their education at private universities.
According to Professor R. Agus Sartono, a professor at the UGM Faculty of Economics and Business (FEB UGM), including students from private universities in the government’s free higher education financing program is important because the main sources of national development financing are tax revenues and foreign debt.
Meanwhile, taxes apply to all taxpayers, whether they are public- or private-sector employees or run small- or large-scale businesses.
“However, why should only students at public universities receive tuition subsidies, regardless of the amount or components involved?” he said on Friday (October 2).
Agus said that a free tuition policy limited to public universities could instead widen the gap between wealthy and low-income families. Low-income families may not be able to provide their children with additional educational support, putting them at a disadvantage when competing for admission to public universities.
As a result, children from low-income families may have to attend private universities, where tuition is charged and may be more expensive.
“This is where disparities and inequalities emerge, and the new policy should not instead widen these disparities,” explained Agus, who previously served as Deputy Minister for the Coordination of Education and Religious Affairs at the Coordinating Ministry for Human Development and Cultural Affairs.
This condition, he continued, needs to be taken into consideration so that a free education policy does not further widen disparities and inequalities in access to education. Article 31 of the 1945 Constitution stipulates that every citizen has the right to education. The provision does not distinguish access to education based on the status of an educational institution, whether public or private
Therefore, Agus said, education assistance policies need to consider citizens’ right to education as well as the economic conditions of the communities targeted by the program.
He also emphasized the need for clarity regarding the scope of the term “free” in the Free Higher Education Program. He questioned whether free education would only cover the exemption of the Single Tuition Fee (UKT) or also include students’ living expenses.
“Families may still face difficulties if they have to send their children to another island if only their tuition fees are waived,” Agus said.
KIP Kuliah and Free Higher Education
Agus proposed that the government develop the existing KIP Kuliah, a government-funded tuition assistance program for students from low-income families, into a model for the Free Higher Education Program. Improvements could include adjusting the amount of assistance and expanding the target group of recipients.
He gave the example that students from low-income families, particularly those in the first to third income deciles, could have their UKT waived regardless of where they study. The assistance could also include monthly living allowances throughout their studies.
According to Agus, this model is similar to the LPDP scholarship scheme, which provides support for tuition, living expenses, and other allowances throughout the study period without limiting recipients to a particular educational institution.
Given the government’s limited fiscal capacity, he proposed that the Free Higher Education Program initially prioritize students from low-income families in deciles 1 to 3. According to the 2025 Higher Education Statistics, approximately 10.75 million students are enrolled in public universities, private universities, religious higher education institutions, and government service academies. Of this total, 44.95 percent are enrolled at private universities and 40.99 percent at public universities.
Meanwhile, students at public and private religious higher education institutions account for 11.88 percent, while the remainder are enrolled at government service academies.
With the available socioeconomic database, the government could target assistance to students from low-income families without making public or private university status the primary basis for providing subsidies.
“To avoid creating moral hazard for private universities, the government could establish classifications and funding limits. With this approach, the government can be more focused. It would not subsidize ‘educational services,’ but rather provide subsidies and affirmative support to children from low-income families,” he said.
Agus also said that a beneficiary-based approach could help reduce social disparities while making the program more sustainable. At the same time, involving private universities in the program could encourage them to continue developing while expanding access to higher education for communities in their surrounding areas. Private universities have also played an important role in improving human resource quality.
“Ideally, the government should bring educational services closer to communities. For example, it could establish new institutes comparable to ITB and ITS in eastern Indonesia. This would allow graduates of Sekolah Rakyat to have better access to higher education in the future,” he said.
Funding Sources
Another issue to consider is the funding source for the Free Higher Education Program. Agus said the government’s limited fiscal space needs to be taken into account when designing the policy. One option is to evaluate and rationalize existing education programs, including the MBG program.
Agus said the MBG program needs improvement by evaluating its distribution mechanism and rationalizing its budget. One proposed option is to reduce the number of Nutrition Fulfillment Service Units (SPPG) and make MBG assistance more targeted toward children from families in deciles 1 to 3.
This scheme could be integrated with KIP Sekolah at the elementary, junior high, and senior high school levels, using the latest data from the Central Statistics Agency (BPS) and the Ministry of Social Affairs (Kemensos), while also ensuring the validity of recipient data.
The funds resulting from the rationalization could then be redirected to support the Free Higher Education Program without increasing government debt. This step would need to be accompanied by budget efficiency measures and efforts to prevent budget leakages and corruption.
“Given the limited fiscal space, the choices can sometimes be difficult. But rest assured, as Aristotle said, the fruit of education is very sweet,” he said.
Reporter: Kurnia Ekaptiningrum/FEB Public Relations
Editor: Gusti Grehenson
Post-Editor: Priyananda
Photo: Magnific