Can Indonesia transform to a robust international university: a Comparative Approach

In the world of higher education, ranking often serve as a benchmark for academic excellence and global reputation. Yet a noticeable trend persists, Malaysian public universities consistently outrank their Indonesian counterparts. Despite having a larger population and a comparable level of cultural diversity and resources, Indonesia struggles to position its universities among the top tier in South East Asia and beyond. Let’s compare based on the data below

The table shows us a clear view, Indonesian universities consistently rank lower than their Malaysian counterpart’s on global rankings. Malaysian institutions like Universiti Malaya (UM) or Universiti Tunku Abdul Rahman (UTAR), are in the upper tiers showcasing a better academic performance and international recognition. This disparity is the challenge faced by Indonesian institutions in competing on a regional and global scale.

This disparity gives us some critical questions. What factors contribute to the success of Malaysian universities on the global stage. More importantly what lessons can Indonesian public universities learn to close the gap and elevate their standing? Exploring these issues could pave way for meaningful reforms that benefit not only Indonesia’s higher education sector but its national development as a whole.

Several factors contribute to the gap, and understanding these requires diving deeper into the underlying dynamic and policies shaping higher education in both countries.

Governance and Funding        

Based on the information from a research paper named “Governance of Higher Education in Malaysia and Cambodia: Running on a Similar Path?”, Malaysian public universities operate as federal statutory bodies, granting them a degree of autonomy under the supervision of the Ministry of Higher Education (MOHE). This structure allows institutions like Universiti Malaya (UM) and Universiti Teknologi Malaysia (UTM) to name a few, to manage their finances and strategic plans with greater flexibility, enabling investments in facilities and the attraction of global talents.

In contrast, based on a research paper named “Higher Education Governance and Reforms in Indonesia: Are the Matrices of Autonomy Appropriate?” Indonesian public universities, such as Universitas Indonesia (UI) and Institut Teknologi Bandung, often find rigid bureaucratic oversight. This centralized system can limit efficient resource allocation and hinder independent initiatives.

This rigidity persists in Indonesia due to several factors, including:

1. Centralized Decision-Making: Policies and budgets are often controlled at the national level, reducing the autonomy of universities to address their specific needs.
2. Lengthy Administrative Processes: Approvals for changes in curricula, research collaborations, and funding reallocations typically involve multiple layers of government.
3. Limited Flexibility in Financial Management: Strict regulations on budgeting and spending limit universities’ ability to invest in strategic areas, such as infrastructure and talent acquisition.

Additionally, Indonesia’s education spending is distributed across numerous institutions, which can dilute its impact (Sumiyana, S., & Effendi, R. (2024). Indonesia’s education budgeting system denoting low adaptiveness: functionalism analysis.). The budgeting system has been criticized for its lack of adaptability in increasing and equalizing funding allocations, potentially affecting the quality of education provided.

Research Productivity

Malaysia has made significant strides in fostering a robust research culture through targeted initiatives. The Malaysian Research Universities program exemplifies this effort by providing dedicated funding and incentives to enhance research excellence. Univesiti Sains Malaysia, as one of the designated research universities, has demonstrated substantial research output, contributing to Malaysia’s growing presence in global academics.

USM conducts various types of research, including:

1. Sustainable Development and Green Technology: Research on renewable energy, waste management, and green building materials has supported Malaysia’s goal of achieving a more sustainable future (USM Research and Innovation Division). For instance, advancements in solar energy technologies have promoted cleaner energy solutions across the nation.
2. Healthcare and Medical Innovations: USM is at the forefront of research on tropical diseases, cancer treatment, and drug development (USM Health Campus). These efforts have improved healthcare outcomes and reduced reliance on imported medicines.
3. Food Security and Agriculture: Studies on crop resilience, soil health, and innovative farming methods have helped enhance food production and reduce the impact of climate change on agriculture (USM Agrotechnology).
4. Advanced Materials and Nanotechnology: Research in this field has resulted in high-performance materials for industries such as electronics, construction, and manufacturing, boosting Malaysia’s industrial capabilities (USM School of Materials and Mineral Resources Engineering).

In contrast, Indonesian universities, including Universitas of Indonesia (UI) and Institut Teknologi Bandung (ITB), face challenges in achieving high research productivity. According to a report from the Knowledge Sector Initiative (KSI) in 2020, Indonesia’s research funding is approximately 0.08% of GDP, which is considerably lower than the 1–3% typically observed in emerging economies. Furthermore, the academic environment often prioritizes teaching over research, offering limited incentives for faculty to publish in international journals. These challenges are further compounded by inflexible budgeting and reporting systems, which significantly hinder research productivity.

The difficulties in securing sustainable investments for research in Indonesia are primarily attributed to three factors. First, there is a lack of robust financial infrastructure to support advanced science and technology research KSI Indonesia, 2020. Second, rigid financial management practices impede efficient allocation and utilization of research funds KSI Indonesia, 2020. Lastly, the academic culture undervalues research, focusing more on teaching, which leads to insufficient support and recognition for research activities (KSI Indonesia, 2020). Addressing these structural and cultural barriers is essential for enhancing the research capabilities and global competitiveness of Indonesian universities.

Research productivity and outcomes are crucial for a university’s credibility and ranking because they reflect its academic reputation, global recognition, and ability to attract funding and partnerships. High quality research enhances visibility for an institution which attracts international recognition, and could lead to industry collaborations. Furthermore, research output draws students, especially those who are interested in research focused programs, improving the institution’s appeal. Strong research productivity signals academic excellence and the university’s impact on both the academic community and society which is key to its credibility and ranking

International Collaborations

Malaysian Universities have actively pursued international collaborations to enhance their global reputation. For example, Universiti Malaya has established partnerships with prestigious institutions such as Harvard University, leading to joint research projects. One such notable research is collaboration in the field of public health and infectious diseases. For example, UM worked with the Harvard T.H. Chan School of Public Health on epidemiological studies aimed at developing strategies for disease prevention and spread. Collaborations such as these enable the transfer of knowledge and technology between researchers, boosting the country’s research capability

Additionally, Malaysia attracts international students by offering scholarships and English taught programs. The Malaysian International Scholarship (MIS) is one such program designed to support international students pursuing higher education in Malaysia. The MIS is offered by both public and private universities in Malaysia, prestigious universities such as Universiti Malaya (UM), Universiti Kebangsaan Malaysia (UKM), and private institutions like Sunway University and Taylor’s University participate in this program.

In contrast, Indonesian universities are in the early stages of internationalization and face difficulties in this area. Limited marketing efforts, fewer English programs, and a smaller proportion of international faculty and students hinder institutions from gaining a competitive advantage.

Policy and Strategic Focus

The Malaysia Education Blueprint 2015-2025 emphasizes enhancing global competitiveness, fostering innovation, and improving graduate employability. This strategic plan outlines ten shifts aimed at transforming Malaysia’s higher education system to meet international standards an align with national development goals. Since its implementation in 2015, Malaysia has achieved some notable progress which the Ministry of Education has committed itself to.

In 2019, the Academy of Sciences Malaysia conducted a midterm review of the Blueprint, assessing the relevance and impact of the ten transformational shifts (these “ten shifts” can be found here https://www.um.edu.my/docs/um-magazine/4-executive-summary-pppm-2015-2025.pdf). The review found that these shifts remained in shaping Malaysia’s education landscape, indicating progress in areas such as increased enrolment and improved research output.

However, as of January 2025, comprehensive and up to date public data on the progress and outcomes of the blueprint implementation are limited to none. Though in March of 2023, the G25 group of eminent Malays called for the Ministry of Education to table a detailed progress report in parliament, highlighting the need for transparency and public accountability in evaluating the blueprints effectiveness.

On the other side, Indonesia’s higher education policies have been characterized by fragmentation and a lack of cohesive strategy. A report by the Knowledge Sector Initiative highlights that Indonesia’s post 1998 higher education reforms have used accountability as a policy tool to regulate educational quality and fair access for low-income students.

Additionally, a study on policy change in Indonesia notes that a lack of autonomy and responsibility at the university level has led to a lack of accountability and transparency, further contributing to the challenges in establishing clear benchmarks for academic and research excellence.

The future for Indonesian Universities stands at a pivotal crossroad, where transformative change is necessary to compete with their Malaysian counterparts and establish themselves as global academic leaders. There are ways to achieve this goal as they must delve deeper into the strategies that have propelled Malaysia’s success and adapt them considerably in Indonesia.

1. Embracing Semi-Autonomous Governance

Malaysian public universities operate under a semi-autonomous governance model that balances accountability with institutional independence. This system allows universities to manage their resources, staff, and programs with greater flexibility, enabling quicker adaptation to global trends and academic demands.

For Indonesia transitioning from a centralized system to a more decentralized governance framework could help reduce bureaucratic delays, promote innovation, and empower universities to implement strategies aligned with their unique strengths and priorities. However, this requires legislative support to ensure universities can effectively handle increased autonomy without sacrificing accountability.

2. Research with Focused Initiatives

Malaysia’s establishment of Research Universities is a foundation of its academic strategy, with universities like Universiti Malaya receiving targeted funding to prioritize high impact research. Indonesian universities could benefit from a similar model by identifying a select group of institutions to focus on research excellence. Alongside increased funding, incentives for faculty to publish high impact journals, and collaborate internationally can drive progress. This approach would require sustained financial investments and policy alignment to ensure research outcomes align with national development goals.

3. Expanding English Taught Programs and International Partnerships

The world academic community increasingly operates in English, and Malaysia has leveraged this by offering a significant number of English taught programs. These programs attract international students and faculty, fostering cultural exchange and broadening perspectives within campuses. Indonesian universities can follow suit by increasing the number of English taught undergraduate and postgraduate courses, ensuring they are accessible and meet global standards. Additionally, active pursuit of international partnerships can elevate Indonesia’s academic reputation.

4. Implementing a Comprehensive Higher Education Blueprint

Malaysia’s higher education strategy is guided by a long-term blueprint with clearly defined goals and performance metrics. This provides a roadmap for progress, ensuring efforts are aligned across institutions and measurable outcomes are achieved. Indonesia would benefit greatly from adopting a similar approach. A national higher education blueprint could include specific targets for research output, international student enrolment, and faculty development.

How can Indonesia transform its education system to compete more effectively with Malaysia and gain recognition? First, increasing investment in education infrastructure, especially in rural areas. Second, implementing policies to improve teacher quality such as continuous professional development programs, can elevate teaching standards. Third, integrating technology in classrooms and encouraging digital literacy from an early age will better prepare students for the massive demands of the modern era. Lastly, fostering partnerships with private sectors and international institutions to introduce innovative teaching methods and exchange programs. These efforts could collectively create a more inclusive, innovative and globally competitive education system.

To summarize this interesting topic, I would like to just say that both Indonesia and Malaysia are attractive destinations for international students, which is a trend that’s unlikely to change in the future. Furthermore, to enhance Indonesia’s competitive advantage in offering universities with international standards, the country must improve on comprehensive improvements. These include policy reforms, enhancing the quality of education increasing research productivity, improving infrastructure and facilities, and most importantly ensuring adequate financial support. These kinds of efforts are essential in positioning Indonesia as a leading global education hub.