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Govt considers stopping LPDP scholarship funding
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The government’s Endowment Fund for Education (LPDP) scholarship program has allowed thousands of Indonesians, both students and professionals, to attend universities and training programs at home and abroad. (Shutterstock/File)
T
he government is considering pulling its funding for the Endowment Fund for Education (LPDP) scholarship program, even as the country seeks to ramp up the number of master’s and doctoral graduates.
Since 2010, the government has allocated around 20 percent of the national education budget – which accounts for 20 percent of the state budget as mandated by the Constitution – for LPDP endowment funds annually.
The proceeds from the endowment are used to finance scholarships for Indonesian students who are accepted into master’s and doctoral programs in the country and overseas. A small part of the proceeds was used for research, university development and supporting Indonesian artists and cultural organizations.
The government’s plan to stop allocating part of the state budget for the LPDP endowment was first revealed by Coordinating Human Development and Culture Minister Muhadjir Effendy, who said the move was due to the fact that the endowment fund has reached close to Rp 140 trillion (US$8.9 billion).
"We're considering stopping payments into the endowment fund and redirecting the budget for research purposes, the development of vocational programs and other scholarships including for undergraduate programs," he said on Tuesday as reported by Kompas.com.
Muhadjir said that even if the government went ahead with the plan, it would not affect the continuity of the popular LPDP scholarship program as the endowment fund's current revenue was enough to sustain the program.
He also said that the LPDP was considering putting their funds in more risky but more profitable investment instruments to gain more revenue.
