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LPDP improves Indonesia’s human resources through research funding and scholarships
Improving upon Indonesia’s overall citizen capabilities is a state mandate that must be carried out, as stated in the 1945 Constitution
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(Courtesy of Finance Ministry)
I
mproving upon Indonesia’s overall citizen capabilities is a state mandate that must be carried out, as stated in the 1945 Constitution. In support of the state’s commitment, the government is allocating a considerable portion of the yearly state budget to a permanent fund in the field of education.
The Education Fund Management Agency (LPDP) was established and appointed by the Finance Ministry to manage the fund. From 2010 to March 2023, the LPDP has managed and developed the educational fund, which has reached Rp 134.107 trillion.
The proceeds of the development of the endowment fund through various legitimate investment instruments are used to finance scholarships for Indonesian students at the S-2 (master's) and S-3 (doctoral) levels.
LPDP opens scholarship applications twice a year, and in 2023, a total of 9,956 people were granted scholarships. This number has increased nearly sevenfold since LPDP first started offering scholarships in 2013. At that time, only 1,555 of the applicants were awarded scholarships.
The purpose of the LPDP’s mission is to provide Indonesian citizens the opportunity to help build their nation through collective participation and responsibility. Nation-building through LPDP scholarships can be participated in by any and all Indonesian citizens without exception. Since the opening of the scholarship service in 2013, a total of 45,495 individuals have successfully received LPDP scholarships, with all of them coming from various backgrounds and pursuing studies in various universities, both domestically and internationally.
To create inclusive and just scholarships, the LPDP offers various scholarships tailored to the conditions and backgrounds of Indonesian society, such as General Scholarships, Affirmative Action Scholarships and Targeted Scholarships. Each of these has multiple specific scholarship categories, making it easier for prospective participants to make the best choice for their needs.
LPDP scholarships enable young people in Indonesia to pursue higher education both domestically and internationally with full financial support. The knowledge and skills they acquire are then brought back and applied to advance the nation in various sectors, supporting further economic growth for Indonesia.
Moreover, LPDP also funds collaborative scholarships organized by the Education, Culture, Research, and Technology Ministry and the Religious Affairs Ministry. Between 2020 and October 2023, there were 262,840 recipients of collaborative scholarships from the education ministry, and there were 2,183 recipients of collaborative scholarships from the Religious Affairs ministry from 2022 to October 2023.
Supporting sustainable innovative research
In addition to scholarship services, the LPDP also provides research funding called Innovation Production Research (RISPRO) to support scientific research for the advancement of Science and Technology. The RISPRO program was first launched in 2013, and to date, there have been a total of 2,492 research projects, with 1,568 ongoing projects and 924 completed projects, totaling Rp1.9117 trillion in funding.
Various collaborative and invitation-based research funding schemes involve stakeholders such as the education ministry, the National Research and Innovation Agency (BRIN) and various other organizations based on agreements. LPDP funding has greatly assisted research and development in a multitude of important sectors such as food, energy, health, governance/policy, the appreciation of research talent and more. It is also worth noting that recipients and researchers themselves come from academic institutions and collaborating research institutions.
There is also the utilization of the University Endowment Fund (DAPT) distributed to 16 Legal State Universities (PTNBH). DAPT is used for various academic activities on campuses, such as organizing international webinars/conferences, establishing and strengthening World Class Universities (WCU), educational exhibitions, student exchanges and other development programs. The current contract value for the 16 PTNBHs totals Rp 365.8 billion, with a multi-year disbursement process currently underway.
The state budget allocation for 2024 ensures the government's commitment and favoritism by allocating Rp 665 trillion for the education sector. This budget will be used to improve access to and the quality of education through the distribution of PIP, KIP Kuliah, BOS, BOP PAUD, certification and scholarships. It will also enhance infrastructure in remote and underdeveloped areas (3T), including strengthening the job market alignment (vocational & certification). Furthermore, the LPDP is projected to receive an additional endowment fund from the state budget of around Rp 25 trillion for 2024.
By detailing the benefits of the state budget in supporting LPDP funds for scholarships and research, we can see an investment not only in individuals but in the future of the nation as a whole. Providing scholarships and research support is a concrete step toward creating outstanding human resources who will become future leaders. Through innovative research, doors are opened for new discoveries, best solutions and increased competitiveness for Indonesia on the global stage, with all of this being done to realize the aspirations of Indonesia Emas 2045.
Source: The Finance Ministry
