Are Foreign Universities Allowed to Operate in Indonesia?

PERTANYAAN

Several reports in mass media in Indonesia said that this year, foreign universities would open branches in Indonesia. Does Indonesian law allow foreign universities to operate in Indonesia? If so, what are the regulations?

INTISARI JAWABAN

Higher Education Institutions (“HEI”) of foreign countries may organize Higher Education in the territory of the Republic of Indonesia, on record that it has been accredited and/or acknowledged in their country.

In addition, universities must also meet the requirements, namely obtaining a license from the Government, using a non-profit principle, cooperating with Indonesian Universities with a permit from the Government, and prioritizing Indonesian lecturers and educational staffs.

Please read the review below for a further explanation.

ULASAN LENGKAP

This article is an English translation of Bolehkah Kampus Asing Beroperasi di Indonesia? which was written by Sovia Hasanah and was first published on Friday, 2 February 2018.

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Organization of Higher Education by Foreign State Institutions

In order to answer your question, we will refer to Law 12/2012.

Higher Education Institutions (“HEI”) of foreign countries may organize Higher Education in the territory of the Republic of Indonesia in accordance with the provisions of laws and regulations. The HEI of foreign countries must have been accredited and/or acknowledged in their countries.[1]

The government shall determine the regions, types, and Study Programs which may be organized by foreign Universities. The HEI of foreign countries have the obligation to:[2]

1. obtain a license from the Government
2. use a non-profit principle;
3. cooperate with Indonesian Universities with a permit from the Government;
4. prioritize Indonesian lecturers and educational staffs.

If the above obligations are not fulfilled, then organizers will be subject to imprisonment for a maximum of 10 years and/or a maximum fine of IDR 1 billion.[3]

HEI of foreign countries have the obligation to support the national interest of Indonesia.[4] In addition, HEI of foreign countries that do not support the national interest will be subject to administrative sanctions.[5]

These administrative sanctions are in the form of:

1. written warning;
2. temporary suspension of education cost assistance from the Government;
3. temporary suspension of education organization activities;
4. termination of coaching; and/or
5. revocation of license.

Analysis

In relation to your question, HEI of foreign countries may organize Higher Education in the territory of the Republic of Indonesia, provided that the universities have been accredited and/or acknowledged in their countries. In addition, the foreign universities must also meet the requirements of obtaining licenses from the Government, using the non-profit principle, cooperating with Indonesian Universities with permission from the Government, and prioritizing Indonesian Lecturers and education staffs.

In an article entitled Government Opens Operational Opportunities for Foreign Universities in Indonesia as accessed from the Antaranews.com media website, the Minister of Research, Technology and Higher Education, Mohamad Nasir, said that the operational opportunities of foreign universities in Indonesia were opened under several conditions. Foreign universities, especially world-class universities, are given the opportunity to operate in Indonesia.

According to the same reference, foreign universities may operate in the country on condition that they must cooperate with universities in Indonesia. In addition, foreign universities must already have exact locations in Indonesia and there are provisions for priority study programs. The conclusion from all this is cooperation with universities in Indonesia. Foreign universities are included in private universities, therefore, they are not regulated by the government. While priority study programs are namely science, technology, engineering, mathematics, business, and management.

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These are the answers we can provide, we hope you will find them useful.

Legal Basis:

1. Law Number 12 of 2012 on Higher Education.

References:

1. Pemerintah Buka Peluang Operasi Kampus Asing di Indonesia, accessed on Thursday, 1 February 2018, at 14.43 West Indonesia Time (zone);
2. Kampus Asing Boleh Beroperasi di Indonesia, Ini Syaratnya, accessed on Thursday, 1 February 2018, at 15.03 West Indonesia Time (zone).

 

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[1] Article 90 Section (1) and (2) Law Number 12 of 2012 on Higher Education (“Law 12/2012”).

[2] Article 90 Section (3) and (4) Law 12/2012.

[3] Article 93 jo. Article 90 Section (4) Law 12/2012.

[4] Article 90 Section (35) Law 12/2012.

[5] Article 92 Section (1) jo. Article 90 Section (5) Law 12/2012.