By 2030, Indonesia is projected to spend $42 billion
educating its 135 million consumers. Yet it could also face a gap
of 9 million workers educated to secondary and tertiary levels.
It's a gap that Indonesia is seeking to fill and Australia is
able to assist.
Australia is already the number one destination for Indonesians
studying abroad, with more than 11,600 Indonesian students in
Several Australian universities are already active in Indonesia,
including Monash University, the University of Melbourne, ANU, RMIT
and the University of Queensland. Some have partnered with local
institutions to offer foundation courses (which prepare Indonesian
students for study in Australia), while others are establishing
NEW OPPORTUNITIES FOR AUSTRALIAN PROVIDERS
Last year Indonesia's parliament enacted the Higher
The Law contemplates international co-operation in higher
education and sets out the framework for foreign tertiary education
providers to deliver undergraduate and postgraduate study programs
in Indonesia. In doing so, it opens a world of opportunity for
Under the Law, foreign providers will be able to obtain a
licence to deliver higher education in co-operation with Indonesian
Foreign providers must demonstrate that they are accredited in
their country of origin and that their Indonesian operations are
not-for-profit. They must also prioritise engaging Indonesian
lecturers and teaching personnel and support the national
Foreign providers will need to meet minimum accreditation
requirements and seek approval for their study programs.
The Law will be implemented through regulations which have not
yet been issued. This means the scope, structure and documentation
for the co-operation between the foreign and Indonesian tertiary
providers remain to be explored.
A CURRENT CONSTRAINT
Following the passage of the Higher Education Law, the Ministry
of Education and Culture received an overwhelming number of
applications for new higher education institutions (HEIs) and study
As a consequence, the Directorate General of Higher Education
has imposed a moratorium on establishing new HEIs and
"academic" study programs until 31 August 2014. The
moratorium does not appear to apply to applications in relation to
"professional" or "vocational" education.
Professional education is defined as higher education after
completing a bachelor's degree which prepares students for
employment that requires a specific qualification, while vocational
education is higher education of a diploma program which prepares
students for employment with specific applied proficiency. While
the academic, professional and vocational categories are broad and
may overlap, the good news is that the moratorium is not
Indonesia's decision to open its higher education market to
foreign tertiary education providers offers much promise for
Australia's institutions – one worth studying
It's an opportunity reflected in the Australian
government's announcement of a new Australian Centre for
Indonesia Studies to be based at Monash University and involving
ANU and the University of Melbourne. The Centre demonstrates not
only a commitment to strengthening bilateral links, but also the
importance of education to the Australia-Indonesia
1For more information on establishing a
Foreign Representative Office in Indonesia, refer to the article
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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