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The Indonesian University: Living with Liberalization and Democratization

October 19, 2010 23 Comments

Rochman Achwan, University of Indonesia

The Indonesian university faces an uphill battle to improve the quality of its academic output. The race to win a place in the world’s top 100 universities preoccupies the minds of the top ten universities in Indonesia. In the following paragraphs, I will discuss the circumstances surrounding the university and its response to the current liberalization of higher education in Indonesia and the country’s democratization.

Long academic tradition and institutional networks are considered pivotal elements not only for coping with both liberalizations and democratization but also for improving the quality of academic output. The Faculty of Economics and Faculty of Social and Political Sciences at the University of Indonesia (UI) have been selected for comparison. The University of Indonesia is the oldest and most prestigious state university in Indonesia. In the 2010 QS World University Rankings, UI is 95th in social science, the highest among universities in Indonesia, but far behind the National University of Singapore, which ranks 16th.

Liberalization of higher education took place in the 1990s, during the final years of the authoritarian regime in Indonesia, and was consolidated the decade after. In essence, liberalization cut the state budget for higher education and required universities to finance themselves. ‘Let the market not the state dictate’ became the norm in higher education. State universities have gained the most benefit at the expense of hundreds of private universities. Liberalization has made it easier for state universities to open up new undergraduate, graduate, and post-graduate extension programs, because they are older, more structured, and have lower tuition fees than private universities. These new extension programs, which have higher tuition fees but less rigid entrance requirements, attract high school graduates and those pursuing further degrees. Private universities complain that their enrolment of new students has decreased significantly as they prefer to enter state universities. State universities became mass production factories of knowledge.

To add to the mix, in the middle of this decade, the Indonesian parliament unexpectedly promulgated a law obliging the state to allocate 20% of the annual budget to the education sector. The Ministry of Education manages and allocates part of this budget to all universities, to improve competitive academic research and publications. The ministry provides funds for post graduate fellowships, competitive research, participation in international conferences, improvement of local academic journals, and incentives for publication of articles in reputable foreign journals. In a similar way, depending on budget availability, state universities provide funds for their teaching staff to produce and publish academic research in international journals. The University of Indonesia, for example, provides funds for competitive research and recently launched a program called “Core Lecturers”, which offers incentives to selected lecturers to undertake research and be published in international journals. There is no doubt that liberalization tends to increase inequality among state universities and between state and private universities. It also makes it more difficult for children of lower income families to enter the regular or extension programs offered by state universities, due to the stiff competition for places and high tuition fees.

In the sphere of national politics, Indonesia has been undergoing democratization since 1998. This has significantly changed the landscape of Indonesian politics. Printed and electronic media freely discuss political issues; and with the adoption of multi-party politics and toleration of political mass demonstrations, new political actors have emerged.  Yet one of the most troubling issues that continues to capture the minds of the Indonesian public is persistent and widespread corruption. Although the government and international organizations have poured enormous amounts of money into curbing corruption, this ‘evil of democracy’ continues unabated. Against this backdrop of liberalization and democratization, it is interesting to look at the ways in which university lecturers produce social knowledge.

The Faculty of Economics and Faculty of Social and Political Sciences are two of eleven faculties at the University of Indonesia (UI). Naming the university after the country reflects the desire of the founding fathers to sever connections with the Dutch administration, which colonized Indonesia for centuries. Located on the beautiful site of a former rubber plantation on the outskirts of greater Jakarta, UI is considered the oldest and most prestigious university in Indonesia.

The Faculty of Economics was established after the Second World War by Dr. Sumitro Djojohadikusumo, an economist who graduated from the University of Leiden, Netherlands, also former freedom fighter and cabinet minister during the Sukarno and the Suharto administrations. He is considered to be one of the builders of Indonesian economics. He is remembered by many Indonesians as the best politician among academics and the best academic among politicians. In his first years as dean of faculty, he invited a group of  US economists to help develop a system of education in economics. In the following decade, the subsequent dean sent a group of young, fresh graduates to the University of California, Berkeley in the US to pursue their doctoral studies. This was to be a milestone in the history of Indonesian economics that would have far reaching impacts in both the academic and political worlds in the years ahead.

While their seniors occupied strategic positions within the government agencies, the returning Berkeley PhDs established an economic and social research centre. This was the beginning of the university’s scholarly tradition. They began to undertake research in areas of economics such as population, poverty, finance, and trade, both for academic and policy purposes. Their research findings were published in Indonesian and English. In the following decades, more groups of young economists were sent to various universities in the US.

At the peak of Suharto’s reign in the 1980s, a number of Berkeley PhDs were appointed as cabinet ministers, overseeing economic planning, finance, trade, and bureaucracy. Their tendency was towards liberal economics, prioritizing economic growth rather than equality. However, within the Faculty of Economics, there were also a number of economists who were critical of liberal and neo-liberal economics and organized public gatherings demanding the redirection of economic development in the country. Scholarly activities continued to flourish during this period, and a large number of lecturers had their works published, some even becoming editors of reputable Asian economics journals. It would be fair to say that they achieved the standard of international academic economists.

The ongoing liberalization of higher education and democratization in Indonesia has strengthened the scholarly tradition and institutional networks. While senior lecturers engage in the government bureaucracy as ministers, expert staff of the ministries, and commissioners of public enterprises, their juniors engage in academic and public policy research in economics. One of the most striking developments in 2010, and one that has captured the minds of the Indonesian public, is the role played by the Minister of Finance. A senior faculty member, her economics are close to liberal but she is also a well-known anti corruption campaigner. She has reformed the bureaucracy of the ministry, which is known as one of the strongholds of corruption. She brought businesses owned by conglomerates to court for breaching tax laws. In 2010, she engaged in a political battle against a major political party over the bailout of private banks. The chairman of this political party is, incidentally, one of the owners of the businesses accused of tax violations.

This political battle has been staged in parliament and on local TV. This major political party seeks to topple the Minister of Finance, claiming that her policy on the bailout of private banks was flawed. Armed with experience and competence, she has managed to defend her policy. Most ordinary Indonesians well understand only too well the reasons behind this political battle. It is not the bail out of private bank that matters, but the damage to the reputation of the party chairman caused by his business’s tax violations. Then, in an unexpected development, the President of the World Bank offered the Minister the position of Vice President of the World Bank. In the week following this offer, she submitted her resignation to the Indonesian President, who supported her move to the World Bank.

In contrast to the Faculty of Economics, the Faculty of Social and Political Sciences at the University of Indonesia seems to be weak in scholarly tradition and institutional networks. Publications in newspapers and individual engagements in public and private consultancies form the basis of knowledge production. Despite a fair body of research, research findings are seldom published in Asian or international journals. One of the reasons is that most faculty researchers tend to view the submission of research findings to their clients as the purpose of research activity. Scholarly passion seems to be lacking.

The advent of liberalization and democratization opens up a new landscape for social science to grow and prosper. It is no exaggeration to say that social science in Indonesia enjoys a sort of luxury that has never before been experienced in the history of social science in the country. “Booming” is perhaps the appropriate word to describe the current situation. Public and private sectors, international multilateral organizations, political parties, non government organizations, printed and electronic media all want to tap the expertise of social science lecturers, to undertake surveys and be advisers and media commentators and authors. Almost every week, they appear on talkshows on Indonesian TV. Perhaps hundreds of millions of US dollars were poured into these activities in the first half of this decade. Moreover, the Faculty of Social and Political Sciences is now the biggest faculty at the University of Indonesia in terms of the number of students, thanks to its new undergraduate, graduate, and post graduate programs.

But such luxury does not automatically guarantee improvement in the quality of academic output. However, there are two positive trends in the Faculty of Social and Political Sciences today, which are the result of intervention programs by the University of Indonesia and the Ministry of Education. The first, and major, trend is an increase of a number of book and journal article publications in the Indonesian language. Unfortunately, these publications are not internationally peer reviewed, raising questions about their value and academic accountability. The second, and peripheral trend, concerns the emergence of a very small group of dedicated lecturers who have had their works published in international journals and edited books. The future of social science in Indonesia will depend on the development of these two, very different, trends. If there is a breakthrough and significant development of both trends, students of social science in Indonesia will witness the emergence of a national social science, a type of social science that blends Western social science with the Indonesian social, political, economic, and cultural contexts.

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