Existence of private universities threatened as public institutions expand

Indonesia's private universities are confronting significant challenges following the elevation of public universities to legal entity status (PTN-BH), according to the Rector of Universitas Islam Indonesia (UII), Prof. Hari Purnomo.

He stated that this development creates an imbalance in student recruitment and intensifies competition. PTN-BH status grants public universities greater autonomy to expand their capacity, which directly impacts the viability of private universities. Purnomo noted a visible decrease in student enrollment at private institutions as a consequence.

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The main consequence for Private Universities (PTS) after Public Universities (PTN) gained PTN-BH status is the decline in new student numbers and increased competitive pressure.

"The main consequence for Private Universities (PTS) after Public Universities (PTN) gained PTN-BH status is the decline in new student numbers and increased competitive pressure," Purnomo explained. He observed that PTN-BH institutions can now freely increase their intake and establish new programs without strict adherence to existing regulations, likening them to "dredge ships" in their capacity to absorb students.

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The impact and consequence of PTN-BH for PTS is a decrease in the number of students. PTN-BH has the autonomy to increase its capacity or 'student body'. This causes the interest of prospective students to be massively absorbed by PTN, so many PTS experience a decrease in new applicants.

Purnomo pointed out that the perception of PTN-BH institutions as inherently more prestigious or higher quality continues to draw students away from private universities, even when private institutions offer comparable or superior quality in certain fields. This market dominance makes it difficult for private universities, especially smaller ones, to attract new students.

To survive, Purnomo stressed that private universities must urgently innovate, enhance their service quality, optimize operations, and differentiate their programs. This adaptation is crucial for remaining competitive and appealing to prospective students in the face of the expanding influence of PTN-BH institutions.

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Public Universities (PTN) are now like dredge ships.