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Will Indonesia become a major student market?

Some 2.6 million Indonesians could enter higher education in the next decade—but despite the country's emerging prosperity, the HE sector will not be able to cater for all of them. The number of students studying overseas is likely to grow, but will, as some predict, Indonesia become another major student market? Julian Hall reports...
April 12 2013
4 Min Read

Indonesia is best known as an exporter of coffee, palm oil and rubber, but with rapid economic growth is looking towards a more diverse economic future. With GDP climbing by 6% annually, this nation of 240 million, the fourth most populated on the planet, wants to build capacity and up-skill. Naturally its demand for good education, gained at home or abroad, is growing fast.

The British Council estimates that some 2.6 million Indonesians will enter higher education in the next decade, buoyed by the country’s economic growth, political stability, demographic changes and rising education levels.

But despite the emerging prosperity, the HE sector is not going to be able to cater for all of Indonesia’s aspiring population and the number of students studying overseas is likely to grow. It’s true this is starting from a low base: it has been reported that just 36,000 students – 1% of Indonesia’s student population – currently study abroad.

“The Indonesian government’s growing emphasis on building human capacity will drive student mobility”

However, the British council last year estimated annual growth of 20% lay ahead. Steve Buckle, head of the British Council in Indonesia, has gone as far as saying the country will be one of the world’s “major international education markets in the next few years.”

So which countries will benefit from the rise? For now Australia is out in front, being the most popular study destination for Indonesians and the one of the nearest geographically. Despite Australia’s ongoing overseas enrolment downturn, government trade arm Austrade reports that in 2012, 17,000 Indonesians enrolled at Australian institutions. This constitutes about 3% of all foreign enrolments, but still makes Indonesia one of Australia’s top 10 source markets.

IMG_4667-hi-resActive through exhibitions such as the Science for Our Future Festival of last year and various outreach initiatives in the vocational educational and training (VET) sector, Austrade is confident that numbers will grow. More amenable student visa rules are likely to help, with students now able to seek work for longer after graduation – key to attaining the right skills.

“The Indonesian government’s growing emphasis on building human capacity will drive student mobility,” says Quentin Stevenson-Perks, group manager for education at Austrade. “In addition, an increasing number of Indonesian government scholarships will provide greater opportunity for Indonesians to study overseas.”

The fall in US appeal has been linked to Indonesia’s neighbours stepping up their overtures

The next biggest destination, the USA, has actually seen a marked decline in Indonesian enrolments, which are down from 13,280 in 1997/98 to 7,130 in 2011/12, but slowly climbing again. It has since opened a cultural centre in Jakarta that promises Indonesians a 95 per cent student acceptance rate.

The fall in US appeal has been linked to Indonesia’s neighbours stepping up their overtures. China, Malaysia and Singapore have latterly been joined by New Zealand in announcing their intention to attract more Indonesian students. China, in particular, increased scholarships in the country after witnessing a 42% enrolment surge at its universities in 2007-2009.

All the countries above offer research opportunities that might be of interest to Indonesians. They also offer plentiful courses in business, IT, hospitality and tourism – the subjects Indonesians most want to study. [More>>]

“70 to 80 per cent of students in Indonesia choose business majors, because a lot of Indonesians are self-employed and want their children to continue their business,” explains Kevin Putra Wangsa, a consultant at the Indonesian agency ICAN Education. “IT is always seen as something very important as far as infrastructure goes, of course. As for tourism and hospitality, Indonesia’s government is really pushing these and more jobs are going to be created in this sector.”

Another country providing key courses in these areas and others is the UK. Currently the third largest host of Indonesian students, with 1,300, it has clear room for growth, but its appetite to stimulate these numbers is equally evident.

“I think we’ll see a significant increase in numbers coming to the UK for study in business, engineering and design”

Last year the minister for universities, David Willetts, signed an MOU with Indonesia’s minister of education and culture, Mohammed Nuh to “support institutional partnerships, promote student mobility and build education capacity”. The British Council also organised a series of events to promote UK HE activity in Indonesia, and this year provided leadership training for future heads of Indonesian universities.

“Indonesia is now higher up the priority list for many UK universities” says Buckle. “I think we’ll see a significant increase in numbers coming to the UK for study in business, engineering and design. The number of Indonesian students coming to the UK has been on the increase for the past three years and it’s interesting to see that it is the universities and colleges that have invested time and resource in the market which are reaping the returns, irrespective of their ranking.”

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One such university is the University of Nottingham which has 49 Indonesian students. The university recently held an event for Indonesian postgraduate students studying in the UK opened by the Indonesian Ambassador.

“Indonesia is a priority for us,” says Vincenzo Raimo, director of the university’s International Office. “This summer we’ll be holding our second Global Partners Conference in Jakarta in association with BINUS university and we’re growing links with others including The University of Jakarta, with whom we’ve been working for a number of years on an anti-terrorism studies programme.”

“English language provision in Indonesia is not as well developed as in many other areas and this can make it difficult for students”

Professor Christine Ennew, provost of the University of Nottingham’s campus in Malaysia, organised the postgraduate event back in the summer – and has promoted the delivery of Nottingham degrees within Indonesia through twinning programmes. She echoes a number of educational professionals when she highlights finances and linguistic ability as the main challenges to expanding Indonesian mobility.

“English language provision in Indonesia is not as well developed as in many other areas and this can make it difficult for students – especially those outside of Jakarta and Central Java – to acquire the English language competencies that they need.”

The influence of Indonesia’s “burgeoning middle class” is likely to play a part in overcoming these hurdles. But institutions will also face challenge in differentiating themselves in an increasingly competitive market. Ennew claims that to thrive, institutions must show “a genuine commitment to Indonesians and their country to ensure that there is real value associated with their investment in their education”. If they can do this, then safe to say a fruitful future of exchange lies ahead.

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