The Institutional Complexity of Financial Management in the Hybridization of State Universities in Indonesia

Sep 10, 2026

Uploaded by Logic

This study investigates the complexity of financial management within hybridized public universities in Indonesia. Employing a multi-qualitative case study approach, two universities are examined using data drawn from official institutional documents such as strategic plans and annual reports. Results show that hybrid universities must balance financial autonomy with service-oriented educational missions. Key challenges include diversifying revenue, aligning curricula with industry needs, and addressing ethical dilemmas in research commercialization through adaptive governance and strengthened industry partnerships.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages6

Reading Time15 min

AccessFree to download

Introduction

Legal and institutional transformation of higher education autonomy

From public work units to hybrid university models

Institutional complexity and embedded logics

The Institutional Complexity of Financial Management in the Hybridization of State Universities in Indonesia Muhammad Iqbal, Abdul Hamid, Hirman Hirman, Syahriah Sari, I P Hardiyani, R Bombing Politeknik Negeri Ujung Pandang, Indonesia [Email: muh_iqbal@poliupg.ac.id](Email: muh_iqbal@poliupg.ac.id), [hamid@poliupg.ac.id](hamid@poliupg.ac.id), [hirman@poliupg.ac.id](hirman@poliupg.ac.id), [syahriahsari@yahoo.com](syahriahsari@yahoo.com), [ikaputrihardiyani@gmail.com](ikaputrihardiyani@gmail.com), [bombingrezki@gmail.com](bombingrezki@gmail.com) Abstract: This study investigates the complexity of financial management in hybridized public universities in Indonesia. Using a multi-qualitative case study approach, two universities were selected as cases. Data were collected from official documents of the universities, including strategic plans and annual reports. The study reveals that these universities must balance financial and service priorities due to the hybrid nature of their organizations. To address this, they adopt strategies such as diversifying revenue, aligning curricula, and enhancing industry partnerships. The findings reveal that hybrid universities face significant institutional complexity, particularly in balancing service-oriented missions with market-driven financial demands. Key challenges include diversifying revenue streams, aligning curricula with industry needs, and managing ethical dilemmas in research commercialization. To address these challenges, the universities adopt adaptive governance models, such as agile university governance and leap-frogging strategies, alongside strengthening industry collaborations. These approaches highlight the tension between traditional public service logics and the emerging entrepreneurial mindset required for financial autonomy. Keywords: Financial management, public universities, case study INTRODUCTION In the last decade, the management of higher education in Indonesia has undergone a transformation with the enactment of Law No. 12 of 2012 concerning Higher Education. One of the law's important points is the structural change in higher education management, allowing institutions to be more autonomous. The autonomy of higher education in Indonesia had been pushed for several years before. In 2009, Parliament passed the Law on Legal Entities of Education, but this law was canceled shortly after due to significant rejection from community groups. The BHP Law is seen as the foundation of the neoliberalization of education (Widaningsih & Barliana, 2008) . The spirit of autonomy found its momentum through Law No. 12 of 2012. With the implementation of the law, several universities changed their status to State Universities with Legal Entities (PTN-BH) . At a lower degree of autonomy, the term State Universities with Public Service Agencies (PTN-BLU) is also known. PTN-BH and PTN-BLU are manifestations of higher education autonomy, where educational institution managers have the authority to manage universities independently within the established regulatory corridor. The distinction between the two lies solely in the degree of autonomy, with PTN-BH having a higher degree of autonomy than PTNBLU. Over time, more universities have shifted from being PTN work units to PTN BH and PTN BLU. The desire to provide quality education with flexible governance is a major motivation for this status change. Before gaining autonomy, state universities in Indonesia operated as work units with centralized financial management typical of public organizations. This rigid financial structure limited their ability to grow, triggering the desire to transform. Autonomy, through PTN-BH and PTN-BLU status, now allows universities to diversify their income. State universities can combine income from student payments and commercial ventures utilizing university assets. In this situation, PTN is no longer seen solely as a public organization. Financial management autonomy requires

FAQs

What does the study examine about Indonesian state universities?

The study examines the complexity of financial management in Indonesian public universities after they adopt hybridization through autonomy-based statuses.

How is the research conducted?

A multi-qualitative case study is used, selecting two universities and collecting data from official documents including strategic plans and annual reports.

What institutional complexity challenges do hybrid universities face?

Hybrid universities face tensions between service-oriented missions and market-driven financial demands, including revenue diversification, curriculum alignment with industry needs, and ethical issues in research commercialization.

Sep 10, 2026

Uploaded by Logic