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Ministers Respond to Student Loan Plan in Indonesia

Translator

Najla Nur Fauziyah

Editor

Laila Afifa

22 May 2024 19:03 WIB

TEMPO.CO, JakartaMinister of Finance Sri Mulyani said she has not been presented with any student loan proposal from Education Minister Nadiem Makariem. "So I cannot give my feedback yet,” she said on Wednesday, May 22, 2024. 

This student loan scheme was discussed in a Tuesday meeting between the House of Representatives (DPR) and the Ministry of Education, Culture, Research and Technology. This meeting discussed, among other things, the topic of tuition fees for college students. Commission X of DPR mentioned the student loan plan to overcome high tuition rates.

Deputy Chairman of Commission X of DPR, Dede Yusuf Macan, said student loans must be established through state-owned banks. "Don’t use online loans, but state-owned banks must propose a concept of student loan instead,” said Dede Yusuf.

In his statement, Nadiem said the concept of student loans was still being discussed internally, in addition to the thorough discussion with the Ministry of Finance. "There is currently no information detailed enough to be announced yet," said Nadiem.

Sri Mulyani once introduced the idea of student loans established through the Indonesia Endowment Fund for Education Agency (LPDP), similar to the United States model. She brought up this idea in response to the public uproar from Bandung Institute of Technology (ITB) students who paid their tuition fees using online loans.

"LPDP will later formulate the affordability of the loan so that it does not burden students but still prevents moral hazard and continues to provide affirmation, especially to disadvantaged students," said Sri Mulyani on January 30, 2024.

DANIEL A. FAJRI

Editor’s Choice: Finance Minister Sri Mulyani Warns of Student Loan Risks, Cites 'Moral Hazard'

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