The rationale for, and experience with, income-contingent loans

During the last decades, Indonesia has witnessed a rapid expansion in higher education sector. However, a centralized education system had resulted internal inefficiency, poor initiatives-particularly in research and lack of public accountability in many Indonesia universities. Facing these issues, the government of Indonesia launched a new long term vision and reform covering all higher education institutions (both public and private HEIs). This paper, moreover, aims to outline the main characteristics of the higher education sector in Indonesia and reviews major policy developments. The paper will discuss issues and challenges in the development of higher education in Indonesia, particularly in financing of higher education, accessibility, and the development of research capacities. The reform results considerable challenges for HEIs, particularly in financial matters, though it also offers opportunities in the context of independency and autonomy. After a decade of reform, Indonesia’s universities still seek the best format and practices for facing a challenging future.