Remarks of President of the Republic of Indonesia During Opening of the 29th Campus Convention and the 25th Annual Meeting of the Indonesian Chancellors Forum, at Graha Unesa, Surabaya East Java Province, January 15, 2024
Bismillahirrahmanirrahim,
Assalamu’alaikum, warahmatullahi wabarakatuh,
Good morning,
May prosperity be upon us all,
Om swastiastu,
Namo Buddhaya,
Greetings of Virtue.
Distinguished Ministers of the Indonesia Onward Cabinet, present with me is Minister of State Secretary Prof. Pratikno, who was also the Former Rector of Gadjah Mada University. He was in the same class as me back then,
Also present Minister of Education and Culture and Minister of Investment,
Distinguished Governor of East Java and the Regional Leaders Coordinating Forum (Forkopimda),
Distinguished Chairperson of the Advisory Council and the Indonesian Chancellors Forum (FRI) Honorary Council,
Distinguished Chairperson of the Daily Management Board of the Indonesian Chancellor’s Forum and the Board of Directors, Prof. Dr. Mohammad Nasih, SE., along with all staff.
Distinguished all rectors of state and private universities.
Ladies and Gentlemen,
Esteemed Guests,
Yesterday afternoon, I returned from a trip that took me to three countries, including the Philippines, Vietnam, and Brunei, before arriving back in Jakarta. This morning, I traveled from Bogor to Surabaya, specifically to attend the Indonesian Chancellors Forum, considering that higher education institutions play a crucial and strategic role in our country, and chancellors have significant responsibilities.
Last month, I traveled to the United States and visited two universities, one in Washington DC and the other one in San Francisco. Upon arrival, I was struck by what I saw that more than half of the students were from China. It was quite a revelation to me as I realized that China’s rapid advancement over the past 20 years has been fueled by its large representation in international education, surpassing even developed nations.
Additionally, I noticed that Indian students constituted the next largest group. However, upon searching for Indonesian students, I found only a handful, which was only five students. Later, I visited the faculty specializing in robotics and artificial intelligence (AI) through which I observed a similar trend in that the majority of students were from China. This indicates that they are extensively studying various fields, including AI, robotics, deep-sea robotics, agricultural robotics, medical robotics, manufacturing, and more.
This is something we need to prepare because in the next five to ten years, we will enjoy a demographic bonus. Having skilled human resources will be crucial and we must prepare for this in a tangible and practical manner. While our natural resources are abundant, relying solely on them will not be sufficient for us to become a developed country. Often, we overlook this fact; for instance with coal, we simply extract and sell it without further processing, which brings in revenue. Similarly with nickel, we export it without adding value. Even with bauxite, we export it as is, and while it is in demand, we miss out on adding value to it.
Once again, having abundant natural resources alone is not sufficient for a country to achieve developed status. The most crucial factors are, first, having high-quality human resources, and second, fostering excellence in science, technology, and innovation. Both aspects are essential responsibilities of our higher education institutions, encompassing the duties of lecturers, rectors, and all of us alike.
Yesterday, I received information while in Vietnam about an R&D (research and development) company there with 2,400 researchers. It’s a private enterprise, highlighting their strong emphasis on research. Similarly, in China there’s a company I’m aware of with 24,000 researchers. Despite Vietnam’s per capita income being around $4,300, slightly lower than our $5,100, they’ve made remarkable progress since 1975, almost catching up with us. If we remain complacent while they continue to accelerate, we may soon find ourselves in a challenging position relative to Vietnam. This is a scenario we hope to avoid.
Higher education institutions play a pivotal role in cultivating superior and high-quality human resources. As I often emphasize, it is not just about acquiring knowledge but also about fostering a continuous learning mindset. We aim to develop individuals who are physically, mentally, and morally robust, as innovative human resources are vital for producing quality work. In other words, universities have a responsibility to serve as research institutions. I forgot to mention earlier the crucial aspect that in Vietnam, there’s a strong connection between universities and industry. The Government’s overarching plan, in tandem with universities and industry, facilitates seamless integration, which is truly remarkable.
I reiterate, universities also bear the noble responsibility of serving as research institutions. With a considerable number of lecturers, spanning across undergraduate, master’s, and doctoral levels, as well as dedicated research staff and tens of thousands of students. They play a pivotal role in advancing our science, technology, and innovation to address the nation’s challenges.
Therefore, I will instruct BRIN to serve as a research orchestrator alongside Bappenas, to strategize our research requirements, address forthcoming challenges, and capitalize on emerging opportunities. Importantly, the pivotal role lies within universities, particularly research universities, rather than solely with BRIN. This shift in focus is imperative, with BRIN potentially leading coordination efforts while concurrently reinforcing the research and development capabilities of universities.
This implies, Mr. Nadiem, that the budget will need to be augmented. That is acceptable. Let us commence this year, even if the presidency changes. Let us kick off on a grand scale, ensuring that the subsequent president will be inclined to sustain it. Whether it’s under the administration of 01, 02, or 03, we need to initiate it first. It’s impossible that if Mr. Nadiem has significantly bolstered the budget, the next president would dare to reduce it.
We recognize the future potential for developing a green and blue economy. Hence, we require advancements in smart farming and fisheries technology, as well as bioenergy technology, EV batteries, and green industry. Fast computing technology and advanced analytics are also essential. These preparations are crucial as a nation typically has only one opportunity to transition into a developed country. Our chance lies within the demographic bonus.
Once we miss out on seizing that opportunity, as I often emphasize, we risk following the path of Latin American countries in the ’50s, ’60s, and ’70s. They were granted opportunities but failed to capitalize on them. Despite being classified as developing countries during that period, many remain in the same category today, and some have even regressed to become impoverished nations. This stagnation is due to their failure to leverage the opportunities provided, leading to being trapped in the middle-income trap.
To that end, it is imperative to continue fostering and optimizing domestic universities. Efforts should be directed towards improving Indonesia’s best universities rankings according to QS World rankings annually. Currently, the number of universities ranking 200 and above is considerably small, and there are none in the top 100 or top 50. This underscores the significant task ahead for Chancellors, whom I hold in high regard. Even Professor Doctor Mohammad Nasih has candidly expressed concerns, which I appreciate. While there are challenges such as inspections and limited budgets, I have taken note of these, Professor. We’ll address them in due course.
Furthermore, the ratio of individuals holding master’s and doctoral degrees to the productive population remains significantly low. I was genuinely astonished when I received this data recently. Indonesia’s ratio stands at a mere 0.45 percent, while our neighboring countries like Vietnam and Malaysia have already reached 2.43 percent. In developed countries, this figure is as high as 9.8 percent. The disparity is substantial.
This week, I will consolidate this information and formulate a policy to address the low ratio, which currently stands at 0.45 percent. While I am uncertain about the budget source yet, we will explore avenues to significantly boost the proportion of individuals holding master’s and doctoral degrees among the productive population. The disparity between our 0.45 percent and Vietnam’s and Malaysia’s 2.43 percent is substantial. When you consider the multiplier effect, it is evident that we are lagging behind these countries by a considerable margin. We are not yet on par with developed nations.
Once again, I fully acknowledge that all these endeavors necessitate funding, which can be challenging given our fiscal constraints. However, it is crucial to recognize that human resources will be paramount in the next 5-10 years, serving as the key to our success. Therefore, we must continue optimizing funding for education and research to the fullest extent possible. This entails not only utilizing the state and regional budgets but also tapping into our endowment funds. Additionally, fostering partnerships with the industry through initiatives like Matching Funds is equally vital.
If we analyze the education budget from 2009 to 2024 under the state budget, spanning 15 years, it totals Rp6,400 trillion. Furthermore, the Endowment Fund for Education (LPDP) scholarship program, which initially stood at Rp1 trillion, has surged to Rp139 trillion as of 2023. The number of scholarship recipients has increased sevenfold since the inception of LPDP. However, despite these advancements, there is still much ground to cover. I believe it is imperative to increase this figure, at least fivefold from its current level. While it undoubtedly requires substantial budgeting and financing, it remains our duty to explore avenues to elevate our ratio.
In conclusion, I’d like to extend an invitation to all universities to bolster collaboration and synergy, aiming to generate innovative solutions that contribute to the advancement of our nation, Indonesia.
By saying bismillahirrahmanirrahim, I hereby officially the opening of the 29th Campus Convention and the 25th Annual Meeting of the Indonesian Chancellors Forum.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh,
(RIF/EP)