Rp 400 trillion Endowment Prepared for 2030

Kompas, page 12

The utilization of the education budget that increases each year is often inappropriate and not well targeted. President Joko Widodo therefore instructed a portion of the budget be set aside for an education endowment fund so that the people could more easily access higher education. So far, the government allocated 20 percent of the state budget for education spending, as mandated by the constitution. From year to year, the education budget increases because the value of the total state budget expenditure also increases every year.

However, so far most of the education budget is allocated for routine expenditure items. As a result, the budget is always exhausted, but less targeted and less effective. The President together with the Minister of Finance has calculated the education endowment fund collected could reach Rp 400 trillion by 2030. This money is used to help the public better access higher education at local universities as well as abroad.

Finance Minister Sri Mulyani said the government was still thinking about the mechanism for setting aside education budget for the education endowment fund. Similarly, the governance and the principles of budget use. The allocation of some of the education budget for the endowment fund will begin to be implemented in the national budget APBN 2018. According to Sri, the fund is separate from the management of Education Fund Management Institution (LPDP). However, in the future the possibility is that the endowment fund is also managed by LPDP.

The education endowment fund is very much needed for research costs at the S2 and S3 levels. The amount of these funds are planned to be continually increased in order to be able to reach greater targets.  With this step, it is expected that the quality of human resources improves from year to year.

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