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This article examines the oxymoronic issues regarding the role of the state in higher
education under the implementation of New Public Management (NPM) advocated by
neoliberal ideology. According to its proponents, NPM can increase success and productivity
and, thus, foster more democratic governance. In this NPM-driven web of relationships, the
central issue always lies in whether the state should play minimal or maximal roles via a set
of performative measurements. This article analyzes this interaction and relationship
between the state and higher education, taking Indonesia as an object of analysis. It seeks to
contribute to a better understanding of the theory and practice of public administration and
public policy on education, particularly regarding the role of state in a particular context,
like that of Indonesia, in which NPM and the neoliberal agenda are taking root.
国家控制对高等教育治理只有坏处?印尼高等教育改革政策中的新公共管理:
本文检验了有关新自由主义意识形态所倡导的新公共管理(NPM)背景下,国家在高等教育中所
扮演角色的相关问题,而这些问题看似自相矛盾。在NPM推崇者看来,NPM能扩大成功和生产
力,因此实现更民主的治理。在由NPM驱动的关系网中,核心问题一直是——国家是否应通过
一系列“表述行为的衡量方式”(performative measurements)来发挥最少还是最多的作用。本
文以印度尼西亚为例,分析了国家和高等教育之间的相互影响和关系。本文试图促进理解有关公
共管理的理论和实践,以及有关教育的公共政策,尤其关于国家在NPM和新自由主义议程都存
在的特定情景下所产生的作用。
DOI: 10.1111/aspp.12462
Asian Politics & Policy—Volume 11, Number 2—Pages 294–313
© 2019 Policy Studies Organization. Published by Wiley Periodicals, Inc.
Indonesian Higher Education Reform Policy 295
Introduction
journals. While the Indonesian higher education system arose from a patrimo-
nial political system where the strong control of state bureaucracy had predom-
inantly characterized its governance, adopting neoliberal ideology in the higher
education system has become a huge challenge for the government and for
Indonesian academics in particular. This is due to the fact that the transition pe-
riod requires huge structural and cultural shifts from patrimonial norms and be-
liefs to neoliberal practices under the newly democratic political systems (Gaus,
Sultan, & Basri, 2017). Facilitating the transition period and changing preexisting
norms and behaviors of Indonesian academics are arduous undertakings and
need assistance and support from the government as architect and guardian.
This is to prevent the transition period from turning awry, and thus may jeopar-
dizing higher education and academics.
Bearing this in mind, it is not surprising to see there has been the massive
hand of government in the management of higher education and academics in
Indonesia, epitomized in the set of external controls implemented by the New
Public Management (NPM). NPM advocates neoliberal ideologies that push ac-
ademics to behave by corporate norms and culture of audit and accountability,
along with sanctions and rewards, at the expense of professional autonomy and
freedom. This issue has become a subject of central debate in Indonesian insti-
tutions of learning, invoking international literature. Some scholars argue for
restricted state intervention minimizing, if not eliminating, the coercive power
of the state over academics and higher education, and thus, giving them more
space for autonomy and freedom. This notion is developed from the prescrip-
tion of classical liberal economics of Adam Smith (1776), where it is “the invis-
ible hand of market” (Ayers, 2005, p. 3), instead of government intervention,
that automatically drives economic activities. Others, influenced by the idea of
Friedrich A. von Hayek (1944) contend that the state cannot completely stand at
the periphery but should perform enabling roles to establish an infrastructure
of law and regulations to ensure the workings of economic activities (Ayers,
2005).
When these two ideas entering higher education governance, tensions and con-
testations arise on how the state should position itself in the web of relationships—
whether to have minimal or maximum roles. Minimal state roles are preferred since
they enable corporate principles and promote democratic governance via the mod-
ern bureaucratic model (Thompson & Miller, 2003). However, it has been found that
minimal or limited state cannot promote democratic governance at all (Thompson
& Miller, 2003). Drechsler (2005) argues that in the era of technological advancement
where economic, political, and societal issues have become heightened and com-
plex, active and capable state and administrative structures are strongly needed. He
conceptualized this within “a neo-Weberian State” (Drechsler, 2005).
Many scholars have studied how NPM, with its market principles, have im-
pacted the changing relationship between government and higher education. This
is evident with the increasingly decentralized authority granted to academics ac-
companied by an increasingly centralized control by governments seeking to steer
higher education (Ferlie, Musselin, & Andresani, 2008; Hood, 1991; Kickert, 1997).
The idea of NPM is not only confined to Western countries. It has also taken hold
in several Asian countries. Mok (2003) revealed how the face of higher education
Indonesian Higher Education Reform Policy 297
institutions in Hong Kong, Taiwan, and mainland China, has shifted toward mar-
ket ideologies, and how the role of the State is becoming increasingly dominant in
shaping and steering higher education institutions during the restructuring process.
Similarly, New Public Management has inundated Central and Eastern Europe
(CEE), including former communist Eastern Europe. However, considering the
transitional periods from communist, closed, and totalitarianism societies into
democratic and open societies that some of these countries are encountering, the
nuances of reforms in the region have been characterized by a stringent empha-
sis on the capacity and the legitimacy of the State to become an architect, fostering
the restructuring and development of higher education. This approach or model
of reform has been referred to as the neo-Weberian state, a model developed in
Europe (Dunn & Miller, 2007), wherein the role of the State is viewed as an assist-
ing and protecting agent from external environment threats that can hamper the
achievement of the goals of the reform (Pollit, Thiel, & Homburg, 2007).
This article aims to bridge this conundrum in public administration theory and
practice, taking higher education reforms in Indonesia as an object of analysis. It
focuses on the questions of how higher education in Indonesia has changed in
terms of its roles and functions in three different regimes, and how the relation-
ship with the state has also changed largely because of the state involvement in the
governance of higher education via its policy of “steering at distance.” It explores
the context in which NPM principles of market behavior can be implemented.
This article presents an analyses of the interaction and relationship of the state
with higher education in Indonesia as seen in the attempts of the Indonesian
government to stimulate and change preexisting patrimonial norms and beliefs
as prerequisite to implement market-driven behaviors as dictated by the neolib-
eral ideology of NPM. This would then contribute to a better understanding of
theory and practice in Public Administration and Public Policy, particularly re-
garding the role of state in a particular context, like Indonesia and other contexts
similar to Indonesia’s, in which neoliberal agendas are taking root. In addition,
this article seeks to contribute to policymaking processes by evaluating the pre-
vious political system that has shaped and institutionalized the current values,
norms, and behavior of the people or citizens.
The analysis opens with the history, role, and functions of the higher educa-
tion system in Indonesia across three different regimes. It is important to capture
how Indonesian higher education governance has developed and changed from
one regime to another, through different political systems and to pinpoint the
role and the relationship of the state with higher education institutions during
these regimes. Thus, we can differentiate how the nascent path of NPM princi-
ples led to a more stringent path in higher education governance, precipitating
the growth of neoliberal ideology in higher education in Indonesia.
A Brief History
Higher education institutions in Indonesia were introduced by the Dutch colo-
nizers in order to provide professionals to work in the colonial government. Such
institutions, however, were exclusive to aristocratic families of native Indonesian
descent, leading to the construction of elitism and a closed society (Tajuddin, 2007).
The provision of higher education to produce professionals had signaled the na-
scent emergence of the economic and market-driven purpose of higher education
institutions in Indonesia, paved by the colonialist government (Sulistyono, 2007).
Due to strong social stratification which very much favored aristocratic fam-
ilies during the colonial period, there were only about 200 students from elite
society enrolled in higher education institutions (Wicaksono & Friawan, 2011).
After gaining independence from Dutch colonialists, the massification of higher
education in Indonesia caused by the growth of student enrolments—triggered
by demographic changes and economic growth from the oil boom in the 1970s
to the 1990s—was breathtaking. Higher education institutions in Indonesia
expanded at a significant rate, from just one to 120 state universities and 3000
private universities across Indonesian archipelago from 1945 to the present day
with the total number of students enrolled in both state and private higher edu-
cation reaching 3.5 million (Wicaksono & Friawan, 2011).
Higher education in Indonesia has gone through transformations in its role and
purpose which can be discerned and understood in three distinctive periods of re-
gimes. These regimes are the following: the Old Order regime during the Soekarno
era, the New Order regime during the Soeharto era, and the Reformation era
under several presidents: B.J. Habibie, Abdurrahman Wahid, Megawati Soekarno
Putri, Soesilo Bambang Yudhoyono, and incumbent Joko Widodo. In these three
Indonesian Higher Education Reform Policy 301
regimes, the importance of higher education institutions has been aligned with
the conditions and interests of the leaders or elected presidents.
The poor quality of higher education can be seen from the low levels of
qualification of the teaching staff, inadequate laboratory facilities (es-
pecially in the private HEIs) and limited library holdings. Meanwhile,
low efficiency is best demonstrated by the extended enrolment period
in which a typical undergraduate—in both public and private HEIs—
spends about five to six years completing their studies instead of the
four years required. Low internal efficiency can also be seen from the
low student–teacher ratios of about 12:1, limited utilization of physical
space, and the low number of student/staff contact hours. (p. 171)
The situation explained above had made higher education in Indonesia centrally
managed and academic issues thus became the concern of government. As a conse-
quence, academics did not enjoy the discretion to define and determine the bound-
aries of their community and to construct their identities. This situation, coupled
with the lack of accountability and innovation, made it extremely difficult for higher
education in Indonesia to practice its mission as a moral force, (Sulistyono, 2007).
In the meantime, the authority of higher education institutions to manage
collective resources was negated as these were managed directly by the gov-
ernment. Funding heavily relied on the government’s subsidy, at the expense
of academic autonomy and freedom. This relationship where the government
was the sole financier of higher education institutions led to sacrificing academic
autonomy and freedom; it is less clear if it helped promote the exchange of
expertise, skills, and professionalism of academics (Clarke & Newman, 1997).
Trust linking higher education to the society in which it resides was scarcely
Indonesian Higher Education Reform Policy 303
found within this sort of relationship, going against the assertion by Trow (1996)
that trust is one of the three fundamental ways that connects higher education
with its supporting societies.
It is evident from this practice that the rational bureaucracy of Weber embed-
ded in the existing patrimonial systems of domination was visible in the manage-
ment of higher education institutions in Indonesia. From the rational bureaucracy
of Weber, universities were seen as machines of the State, which were run with
a clear hierarchy and a predefined job description but through impersonal re-
lationships; moreover, there was no appreciation for academic professionalism
and their mastery of specialist knowledge and theory (Burnes, 1996; Clarke &
Newman, 1997; Lorenz, 2012; Roberts & Donahue, 2000). The mechanistic nature
of classical theory or Taylorism in scientific management (Burnes, 1996; Hatch,
1997) was widely applied through its view of human nature conceptualized in a
mechanical sense, disregarding the nature of humans as emotional rather than
economic beings (Burnes, 1996; Hatch, 1997). In short, the management of higher
education in this era was largely inward-looking rather than outward-looking,
emphasized in the compliance with and achievement of rules and procedures.
Burnes (1996) confirmed that a consequence of this practice is constraint on the
ability of organizations to rapidly and adeptly adapt to a changing environment,
as this system can only be applied to a placid or a stable environment and within
small-scale organizations (Burnes, 1996; Hatch, 1997). Referring to this suppo-
sition, Indonesian universities have a low ability to effectively adapt to a fast
changing environment. This fact was seen as the weaknesses of the traditional
bureaucracy where the orientation was mainly focused on compliance with in-
ternal rules and procedures, rather than on the external orientation of producing
results or outcomes (Burnes, 1996; Hatch, 1997).
Clearly, the bureaucracy adopted to manage and organize the work of aca-
demics was a derailment of the true Weberian rational bureaucracy which pro-
moted an effective, efficient, and fair treatment of employees in organizations.
The most significant aspects of the Weberian rational bureaucracy that were ab-
sent in Indonesian bureaucracy were impersonality and selectivity in the process
of recruitment, division of labor, and promotions of employees (Du Gay, 2000).
Throughout the course of Indonesian higher education, there had not been any
spaces granted to it to determine its boundaries. The role of the government with
its patrimonialistic values had been always present in regulating and managing
higher education institutions in Indonesia. Such a practice continues to persist
even today—the reformation and democratic era—even though this practice has
been challenged.
that the higher education sector was one of the important tradable and commod-
ified services. Indonesia, a member of the WTO, ratified this scheme, leading
to a dilemma encountered by most Indonesian universities which were seem-
ingly ill-prepared to compete internationally. The predicament was the result of
the long-standing perfunctory attention paid by the Indonesian government to
quality standards in running universities, and the politicization of universities
by the government (Brodjonegoro, 2002).
Realizing the predicament faced by Indonesian universities, many parties
voiced out the need to reform the system in order to survive global competition.
The theme of academic freedom was a major area where change was promoted.
This meant that Indonesian universities had to step away from government in-
tervention and begin working toward self-determination and self-governance.
As a rejoinder, government then issued a liberal policy of the autonomization of
higher education through the endowment of the BHMN (Badan Hukum Milik
Negara) status (the state-owned legal institutions) which was enacted through
the Higher Education Act 1999 (and later became a controversial issue).
The Higher Education Act of 1999 was enacted to transform the status of
higher education institutions into so-called “legal entities” (Badan Hukum,
BHP). Within this status, the running and provision of higher education would
be uniformly carried out; schools would henceforth adopt a for-profit orienta-
tion (liberalization and commercialization); and take no financial subsidy from
government. A pilot project to implement this was carried out through the en-
dowment of campus autonomy or BHMN status to five universities in Java in
2000.
The implementation of campus autonomy in Indonesian state universities
which was implemented in 2000 has become an oxymoron. It is a contentious
issue which has polarized educationalists into two different factions. For some,
they believed that only with academic freedom might Indonesian state univer-
sities develop and advance their standards in learning and teaching. Thus, they
are able to keep pace with and position themselves at par with other interna-
tional higher institutions. In materializing this ideal, the reduction or the elimi-
nation of the State’s intervention through the introduction of campus autonomy
is regarded as the most appropriate means (Brodjonegoro, 2002; Irianto, 2012).
For others, the introduction of campus autonomy may have led to the liberal-
ization and commercialization of higher education institutions, which in turn
sparked a far-reaching impact on the high imposition of tuition fees on students
(Brodjonegoro, 2002; Irianto, 2012).
The frenzied debate on the pros and cons regarding the compliance with
campus autonomy in Indonesian higher education institutions was basically
grounded on the following premises: that the adoption of managerial models
will prevent students from low-income families from accessing quality higher
education institutions; that government will retreat from supporting and sub-
sidizing public education; that there will be intervention of foreign capitals in
education, such as the IMF, the World Bank, and the WTO; and that education
were to be conducted under neoliberal agendas (Sulistyono, 2007).
The implementation of campus autonomy in Indonesia has meant that the
role of the government as the main financier for higher education institutions
was eliminated and devolved to the higher education institutions (Sulistyono,
Indonesian Higher Education Reform Policy 305
2007). This situation had led universities to seek their own funding through sev-
eral schemes or programs (Sulistyono, 2007). One of the schemes was to increase
tuition fees to even double the former amounts, stirring fierce debate among
educationalists as it may have potentially become a hindrance for students from
low-income families to enter quality universities (Sulistyono, 2007). Thus, this
can violate Article (33) clause (1) of the Indonesian Act (UUD 45) which says that
all citizens are entitled to quality and equal access to education. The increase
in tuition fees has come to be seen as favoring students from rich families who
can afford to pay (Lynch, 2006). As a result, universities tended to target them
through an offer of “special passage” to prestigious and popular faculties or dis-
ciplines (Jalur Khusus), provided that they could afford to pay the fee (Susanti,
2010). Thus, there had been a propensity to commercialize the universities as
tradable services that could only be enjoyed by middle- to high-income class
students (Susanti, 2010).
From this situation, students from low-income families became marginalized
or disadvantaged in accessing higher education compared to students from
high-income families. Nevertheless, the imposition of high tuition fees could
benefit low-income family students. The scheme called “cross subsidy” (subsidi
silang) where high-income family students who enrolled into higher education
institutions through “special passage” would pay high tuition fees was to be-
come the source of subsidies for low-income family students. This scheme must
be implemented in each BHMN university, which would then allocate 20% of
their quota for low-income family students (Susanti, 2010; Wicaksono & Friawan,
2011).
However, many educationalists doubted that this scheme would work. They
argued that universities in Indonesia will continue to become elite institu-
tions, populated by the more advantaged students from high-income families.
Moreover, there was no guarantee of proportional implementation of the 20%
quota for low-income students (Sukemi, 2012).
Those who positioned themselves as dissidents appealed to the Court of
Constitution for judicial review in the implementation of the BHMN, and as a
result, the Court of Constitution annulled the BHMN. Thus, the government of
Indonesia called for the assigned BHMN universities to revert to their previous
status as public services. As a substitute for the Higher Education Act of 1999, a
new Act of 2012 was enacted and has become the legal basis of higher education
in Indonesia.
The narration above demonstrates that a strong State is needed to back up the
shift from the existing patrimonial systems of higher education toward neolib-
eral ideology of markets. This is due to the fact that Indonesia’s fundamental
socioeconomic, political, and cultural conditions were still weak and fragile. To
leave higher education institutions to manage on their own could be risky since
the managerial skills of the human resources available are still underdeveloped.
Here, the State is required to play its architect role to promote, guide, and regulate
a new mechanism for the structural shift, transforming the roles of academics to
the quasi-market norms advocated by NPM as a precondition to implement the
free market principles of neoliberalism. Moreover, the role of the State is significant
in protecting higher education in Indonesia from adverse external influences
306 Asian Politics & Policy—Volume 11, Issue 2—2019
that may result from the powerful influx of globalization, neoliberalism, and
of international organizations, such as the IMF and the World Bank. Therefore,
the maintenance of representative democracy (central, regional, and local) as the
legitimating elements within the state apparatus, and the maintenance of the
role of administrative laws, is highly important (Dunn & Miller, 2007; Ferlie et
al., 2008; Pollit & Bouckaert, 2004). The enactment of the Higher Education Act
of 2012 has been seen as the manifestation of the State’s legal responsibility to
assist higher education institutions to develop and advance amidst increasing
external threats.
In this way, “the State has assumed its monopoly on power, force, and coer-
cion on one side, and its focus on the public good” on the other (Drechsler, 2009,
p. 9). One manifestation of this has been the engagement of schemes to punish
and reward academics, acting both as the behavioral stimuli and power impo-
sition. Both rewards and punishment are required to have an effective applica-
tion of a policy that will gain compliance and avoid resistance from academics
(Kickert, 1991; Sabatier, 1986). To effectively implement and achieve the goals of
the government-driven policy, the formulation and implementation process of
the policy has used a top-down approach (Sabatier, 1986; Yanow, 1987), focused
on the identification of reciprocal effects between change processes and individ-
ual behavior which can affect the policy implementation. Trowler (1998) called
this mutual adaptation.
Nevertheless, the enactment of this new Act has yet to satisfy educationalists
of both factions, notably from those supporting the liberalization of higher ed-
ucation institutions. In this Act, there is still the notion that campus autonomy
is held by universities, but its implementation will be controlled and guided
by the government. Those wishing to obtain “autonomy” under the status of
the BHMN will be processed and determined by the government (The HE Act,
2012). The combination of minimizing and reaffirming the role of the govern-
ment is evident.
To provide a better understanding of the reforms taking place in this period,
this article integrates New Public Management and the neo-Weberian agendas to
look at how the political technology and “steering at a distance,” embedded in behav-
ioral stimuli through incentives and disincentives, are exercised by Indonesian
government toward its goal of accelerating the change processes in Indonesian
universities. It integrates analyzing the reform agendas with examining the shift
of internal governance and accountability. The latter will be analyzed in terms
of performative measurements, such as performance indicators, procedures of
evaluation, research funding schemes, and quality assurance and accreditation.
The enactment of this law has been very much influenced by the desire of the
government to improve the quality of human resources needed for Indonesia’s
economic development. By doing so, the economization of higher education in-
stitutions has firmly taken root. The preamble of this Act says “that the provision
of higher education in Indonesia is intended to increase the nation’s competitive-
ness in the globalized world in all aspects of life by producing skilled human re-
sources mastering knowledge and technology” (The HE Acts, 2012; The Renstra
DIKTI 2012).
The situation depicted above is discussed in “Human Capital Theory.” Human
capital is defined as “the stock of knowledge and skills possessed by the labor
force that increases its productivity” (Engel, 2000, cited in Ayers, 2005, p. 4). In
this theory, higher education is ultimately seen as a place to create human capital
for economic growth to increase the economic competitiveness of Indonesia. As
a result, higher education finance gained from taxpayers is no longer viewed
as an expenditure but as a strategic economic investment instead (Ayers, 2005).
This idea has been persistently echoed by the Indonesian government (the
President and the Ministry of Research, Technology, and Higher Education or
RISTEK DIKTI1) by calling for higher education institutions to closely and in-
tensively work with industries in order to produce research findings that can be
used directly by industries, thus becoming more innovative and entrepreneurial.
Here, the triple helix (state–higher education–industry) relationship has been
strongly prescribed. This is followed by strengthening the study programs and
field of studies that have direct economic contributions which, in the end, can
obtain a higher return on investments (Ayers, 2005). The effect has been the
emergence of favored disciplines—mostly in the hard sciences–compared to soft
sciences such as arts and humanities (Giroux, 2002). A further effect of this fa-
voritism is in the allocation of a higher proportion of research grants and schol-
arships for the hard sciences. The 2018 research grant allocation defined by the
RISTEK DIKTI gives 70%–80% of research funds for the hard sciences and 20%–
30% for the soft sciences (RISTEK DIKTI, 2018).
In order for higher education in Indonesia to be more productive, innovative,
and competitive and to contribute to the economic growth as defined by the
government, a new modality of managing academics and the institution is ap-
plied—NPM. With NPM principles, higher education in Indonesia is regulated
via controlling mechanisms in policy technology and “steering at a distance,”
disguised in the form of auditing and monitoring as forms of accountability,
particularly to measure productivity in research and international publication.
These forms of accountability are characterized by numerical or quantitative
measurement, emphasizing tangible measures and outcomes. Such practices
have given rise to the erosion and degradation of autonomy and trust as a basic
norm governing academics and higher education. The quantitative measure-
ments have changed the professional-bureaucratic form of accountability (ex
ante) into a managerial form of accountability (ex post).
In the set of quantitative measurements, Indonesian academics are measured
largely on their productivity and work performance that will be displayed in
the Indonesian platform called SINTA (Science Index and Technology), covering
mainly research and publication. This database has two functions: (i) to monitor,
308 Asian Politics & Policy—Volume 11, Issue 2—2019
university has been the real manifestation of the spirit of a half-hearted auton-
omy endowed by the government to the academic community in Indonesia. In
this situation, academics have witnessed and experienced hybrid mechanisms of
hands-on and hands-off government permeating teaching, research, and com-
munity services. In the effort to minimize or even diminish the role of govern-
ment, the reaffirmation of the State is still visible. This fits well with the concept
of “steering at a distance” (Kickert, 1995) and the political technology (Shore &
Wright, 1999).
Against this backdrop is the longstanding lethargic productivity of academics
in undertaking research and publication in teaching-based higher education in-
stitutions. There is a need for mechanisms to motivate or to compel, so to speak,
academics to be more productive via performative measurements, garnished
with sanctions and rewards. The state positions itself as an architect that will
design and plan for the change in programs, as a driver and captain to motivate,
punish, and reward in the course of implementation of the programs and also
as a leader that observes the implementation of the programs from the balcony.
These are practices that are regarded as the reincarnation of Weberian bureau-
cracy, ones that have widely been accused of thwarting the success and produc-
tivity of organizations (Miller, 2009).
The aforementioned phenomena are further manifested in the official docu-
ments of the Higher Education Act of 2012 and the 2013 Guidance and Procedures
of Teachers’ Workload Systems. Both written documents clearly demonstrate the
predominant roles and guidance played by the state to regulate and ensure the
quality of work performance of academics through audit mechanism of their
routines. The work audits are summed up in the words “accountability, fiscal
transparency, quality assurance, accreditation board, board of quality assurance, inter-
nal assessor, external assessor, and government control.”
The quality of Indonesian universities has also been affected by market ideol-
ogies and with the economization of education, wherein education services are
seen as a process of economic transaction in which sellers and buyers exchange
products (Lorenz, 2012). In the Higher Education Act of 2012, the quality of ed-
ucation is assessed on the premise that education is able to surpass the national
standards to meet the need of customers. The emphasis on customers has in-
dicated that the end products of higher education services should, to a larger
extent, benefit higher education services users, exchanging the money they have
invested to gain skills, diplomas, and qualifications as passports to enter the
workplace (Lorenz, 2012). The standards of education set by the government is
being assessed in the domain of quantitative rather than qualitative, as reflected
in end products of the education process that are aligned with skills needed for
the marketplace.
In Indonesian higher education, there has been a tendency toward a shift
of knowledge production from the traditional purposes of theoretical-related
knowledge mastery to the practical-related knowledge. Gibbons, et al. (1994)
have identified this as a change from a mode 1 of knowledge production, where
the goal is knowledge (Bleiklie & Byrkjeflot, 2002; Delanty, 1998) to a mode 2 of
knowledge production (Bleiklie & Byrkjeflot, 2002; Delanty, 1998). The mode 2 of
knowledge production has led the Indonesian government to call for universi-
ties to become more vocationally oriented.
Indonesian Higher Education Reform Policy 311
Conclusion
The conundrum of the role of the state in NPM-driven higher education has
become a central issue in the theory and practice of neoliberal ideology and it
may be better understood by considering the contexts where this occurs. The
example drawn from Indonesia has shown that the role of the state is not always
perceived in hostility, given that Indonesian higher education is still in its tran-
sition period, where the values, norms, and beliefs of a preexisting patrimonial
political system overlap with corporate or businesses values, norms, and beliefs.
Thus, the presence and support of the state to overcome the former norms and to
provide a medium for more market-driven behavior to take root and grow, are
certainly needed.
Note
1New nomenclature of previous Directorate General of Higher Education.
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