Indonesia Assessment 1991 Hal Hill, editor Political and Social Change Monograph 13 Political and Social Change Monograph 13 Indonesia Assessment 1991 Proceedings of Indonesia Update Conference, August 1991 Indonesia Project, Department of Economics and Department of Political and Social Change, Research School of Pacific Studies, ANU Hal Hill (ed.) Department of Political and Social Change Research School of Pacific Studies Australian National University Canberra, 1991 © Hal Hill and the several authors each in respect of the papers contributed by them; for the full list of the names of such copyright owners and the papers in respect of which they are the copyright owners see the Table of Contents of this volume. This work is copyright. Apart from any fair dealings for the purpose of study, criticism or review, as permitted under the Copyright Act, no part may be reproduced by any process without written permission. Enquiries may be made to the publisher. First published 1991, Department of Political and Social Change, Research School of Pacific Studies, The Australian National University. Printed and manufactured in Australia by Panther Publishing and Press. Distributed by Department of Political and Social Change Research School of Pacific Studies Australian National University GPO Box 4 Canberra ACT 2601 Australia (FAX: 06-257-1 893) National Library of Australia Cataloguing-in-publication entry Indonesia Update Conference (1991 Australian National University). Indonesia Assessment, proceedings of Indonesia Update Conference, August 1991 Bibliography. Includes index ISBN 0 7315 1291 X 1. Education, Higher - Indonesia - Congresses. 2. Indonesia - Economic conditions - 1966- - Congresses. 3. Indonesia - Politics and government- 1%6- - Congresses. I. Hill, Hal. II. Australian National University. Dept. of Political and SocialChange. III Australian National University. Indonesia Project. IV. Title. (Series : Political and Social Change monograph, No. 13) 959.8038 Foreword H.E. Mr Sabam Siagian• Allow me first of all (as a University drop-out!) to express my appreciation for the invitation to speak before such a scholarly audience. For some time, I have known aboutthe 'Indonesia Update', which every year examines recent economic and political developments and then focuses on a different aspect of Indonesia's social, economic and political life. This year the topic is a very important one, the state of higher education in Indonesia. Any developing nation that is seriously determined to be a dignified member of the modern international community at the beginning of the 21st century cannot escape the daunting task of developing the nation's skills base and, particularly, its science and technology. A full-fledged university with a respectable level of quality is the principal instrument to achieve that goal. In this regard Indonesia is suffering from a double disadvantage. Firstly, the Netherlands East Indies administration - understandably so - was very reluctant to establish a full-fledged university in its colonial territory. Only on the eve of the Japanese invasion at the beginning of 1942 was a sort of skeleton university formed. This comprised the already existing medical college. A college for law studies expanded with a department for literature and philosophy and the more recently established higher institute for agriculture. As such the history of the university as an institution in Indonesia is much more recent compared to the established famous universities in the Philippines, Thailand and India. One could also argue, however, that this lack of historical H.E. Mr Sabam Siagian, Indonesian Ambassador to Australia, officially opened the 1991 Indonesia Update. He has kindly consented to having the text of his opening remarks reprinted as the Foreword to this volume. iv H.E. Mr Sabam Siagian tradition made it possible for the university institution in Indonesia to play a more dynamic and innovative role. Another serious disadvantage is that while Indonesian universities experienced rapid growth and progress, science and technology in the advanced countries did not stand still. Instead they underwent quantum leaps of progress. Therefore, Indonesian higher education institutions face at least two major tasks: on the one hand, to continuously improve their quality in order that the young men and women graduating from those institutions can play significant roles for the development and welfare of the Indonesian nation. On the other hand, the Indonesian higher education institutions have to equip themselves in such a manner that they will be able to monitor the rapid development of science and technology in the world at large. In particular, they will have to develop the ability to choose from among the rapidly advancing stock of scientific and technological knowhow, those which are relevant and important for Indonesia's development. Needless to say I would like to commend the organisers of the Indonesia Update. In the final analysis, discussions such as today's are extremely beneficial to us in Indonesia. Certainly not all the presentations and remarks made in this lecture theatre will be fully agreed to by Indonesians. However, we are mature and open enough to listen to views and opinions which are not necessarily in line with ours. The truth is that we welcome any constructive criticism and novel ideas that will be beneficial to the welfare and progress of the Indonesian nation. The overall achievement of Indonesian development efforts during the last 25 years has brought about new, more difficult and more complex sets of challenges. That is why we welcome efforts such as today's which allow us to look at our problems from a different perspective. After all, if we fail in our gigantic effort to continuously uplift the social welfare of the Indonesian people, in which the principle of equal opportunity is honoured, while at the same time preserving national unity throughout the vast archipelagic state - the dire consequences of such a grand failure are not for us alone to bear. A stagnant Indonesia suffering from chronic social and political instabilities would have ramifications throughout the neighbouring regions. I would also like to take this opportunity to commend the Indonesian participants of this conference who have been willing to leave their comfortable surroundings in order to deliver their Foreword v intellectual contribution in this encounter with their Australian colleagues. Diplomats like to talk about improving bilateral relations. However, the real work in order to substantiate such lofty statements is carried out by Indonesians who have been prepared to attend conferences such as this Indonesia Update. Indeed, I would like to suggest, having in mind our national interest, that following the present conference the Indonesian participants should hold an informal exchange of impressions. My hope is that they would come up with a number of pertinent points, encapsulating relevant ideas regarding the task of improving the quality of higher education in Indonesia. If they could formulate their impressions in the form of a memorandum, perhaps addressed to the Minister of Education and Culture, then the Indonesian participants could leave Canberra with a sense of satisfaction that they have been engaged in an intensive discussion of issues of great importance for the future of Indonesia. May I say finally that, on a personal level, I already feel enriched by this meeting: I read in the one and a half page abstract of Dr Colin Brown's presentation on recent political developments in Indonesia that 'the MPR will nominate Suharto for a further term as President in 1993 .. .'. I have gained an important piece of information that I was not aware of before. I asked the President, when paying a farewell visit on 8 June 1991, which happened to be his 70th birthday, what would I say if I have to respond to questions from Australians regarding his plans in 1993. He said with a disarming smile that it is not up to him. The selection of the new President, according to Mr Suharto, is entirely the prerogative of the MPR which will still have to be elected in 1992. It just shows that, in our global village, answers to interesting questions that I cannot obtain in Jakarta are readily available in Canberra. Allow me, finally, to congratulate the organisers for the convening of today's Indonesia Update. Contents Foreword by H.E. Sabam Siagian iii Tables and Figures viii Preface ix Glossary xi Contributors xix 1. Introduction 1 Ha l Hill Part I: Recent Economic and Political Developments 2. The Adjustment Program in the Indonesian Economy since the 1980s 14 Anwar Nasution 3. Political Developments, 1990-91 38 Colin Brown Part II: The State of Higher Education 4. Equity, Quality, and Efficiency in Indonesia's Higher Education System 53 Sukadji Ra nuwihardjo 5. Indonesian Higher Education: Improving Input to Improve Output Quality 58 Andi Hakim Nasoetion 6. Policy-Making in Higher Education and Implications for Equity 77 Mayling Gey-Gardiner 7. Private Higher Education in Indonesia 96 Willi Toisuta vii 8. Staff Development in Indonesian State Universities 106 Ruth Daroesman 9. The Development of Business Education in Indonesia 120 Ahmad D. Habir 10. Higher Education in Asia: Indonesia in Comparative Perspective 135 Ernesto M. Pernia Part III: Aspects of Higher Education: Personal Reflections 11. Higher Education: The Problem of Quality 151 H.W. Arndt 12. Higher Education: A Word from the Classroom 155 Joan Hardjono 13. Raising