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Government to form sovereign fund for postgraduate education
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President Joko "Jokowi" Widodo speaks to journalists. (Antara/Rivan Awal Lingga)
T
he government will establish a sovereign wealth fund to finance a scholarship program for postgraduate education, starting from the 2018 budget year.
The government will save some of the budget to form the fund, said President Joko "Jokowi" Widodo.
"The 20 percent budget allocation for education must not be spent on routine activities only. We must allocate some for the education fund," he said during a meeting to discuss the 2018 budget at the State Palace in Jakarta on Tuesday.
Since the tenure of president Susilo Bambang Yudhoyono, the government has consistently allocated 20 percent of the budget for education, as it is stipulated in the Constitution.
Jokowi did not specify how much would be allocated per year but stated that the fund was expected to reach Rp 400 trillion (US$30 billion) in 2030.
"We already made calculations. We could have Rp 400 trillion in education eternal funds in 2030. It can be used for postgraduate education," he said.
(Read also: Government allocates Rp 22.5t for scholarships)
Finance Minister Sri Mulyani said the fund would then be merged with the current Indonesian Endowment Fund for Education (LPDP), which was jointly managed by the Finance Ministry, Culture and Education Ministry and the Religious Affairs Ministry. (bbn)
