The ministry’s move is expected to help realize President Joko “Jokowi” Widodo’s vision of creating superior human resources in the country. Higher education has the potential to have a speedy, positive impact on the development of human resources.

“This policy will not only uphold social justice but will also spur higher social mobility so that high-achieving children from low-income families can achieve their biggest dreams,” said Education and Culture Minister Nadiem Anwar Makarim during the virtual launch of the program in Jakarta.

“Therefore, we at the Education and Culture Ministry have decided to raise the amount financial assistance for tuition fees and living expenses, far higher than the figure set previously. This way, we hope KIP Kuliah will cause university candidates to be increasingly free (from financial constraints) so that they can achieve their dreams,” the minister said.

The revised KIP Kuliah scheme has been applied to new returning students that receive the KIP Kuliah for the 2021 academic year. The government has allocated Rp 2.5 trillion in funding, a significant increase from the Rp 1.3 trillion allocated in 2020. 

The KIP Kuliah program will be offered to 200,000 returning students of state and private universities under the supervision of the Education and Culture Ministry. 

Under the revised KIP Kuliah Merdeka program, the returning students will receive more tuition assistance and a higher living expense stipend than what they had received previously.

The tuition assistance is adjusted to the study program the students undertake.

“The students undertaking a study program at a university with an ‘A’ accreditation will receive the maximum of Rp 12 million each per semester. Those pursuing a study program at a university with a ‘B’ accreditation will get maximum of Rp 4 million each per semester and students in programs at universities with ‘C’ accreditations will receive Rp 2.4 million each per semester,” said Nadiem. 

The holders of the KIP Kuliah Merdeka will also receive higher living expense stipends, adjusted to regional price indices based on the 2019 National Social and Economic Survey (Susenas).

According to the minister, the living expense stipends that KIP Kuliah Merdeka holders receive will be divided into five regional clusters: Rp 800,000 per month for the first cluster, Rp 950,000 per month for second cluster, Rp 1.1 million for third cluster, Rp 1,250,000 per month for the fourth cluster and Rp 1.4 million per month for the fifth cluster.

Coordinating Human Development and Culture Minister Muhadjir Effendy said the KIP program launched in 2014 had shown positive results, marked by an increase in the average length of schooling.

Through the KIP Kuliah, he said, the government had opened more opportunities for young people from low-income backgrounds to improve their futures and break the chain of poverty.

“We welcome the Education and Culture Minister’s decision to raise tuition assistance and living expense stipends under the KIP Kuliah program as a good step,” he said.

“I am asking senior vocational high school (SMK) students and high school (SMA) students from low-income families who have performed well academically not to hesitate to register to obtain the KIP Kuliah card. Realize your dreams by pursuing further education,” he said.

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