By: Nadira Putri Rahman *)
The spirit of the Youth Pledge, born nearly a century ago, lives on in current government policies, one of which is through the strengthening of the Education Fund Management Institute (LPDP). While in 1928, youth pledged to unite the nation through a common language and homeland, today the government under President Prabowo Subianto seeks to reinforce that same spirit: a unified approach to building Indonesia through substantial investment in the education sector.
The government’s strategic move to allocate a portion of the confiscated corruption funds to strengthen the LPDP (Indonesian Development Planning Agency) symbolizes that the fight against ignorance and social inequality is a continuation of the nation’s founding fathers. During a Plenary Cabinet Session at the State Palace, President Prabowo emphasized the importance of education as the primary foundation for national progress. He requested that Rp 13 trillion in compensation funds for state losses from corruption be allocated to the LPDP. This move not only reaffirms the commitment to eradicating corruption but also ensures that the proceeds are returned to the benefit of the people, especially the younger generation.
Deputy Minister of Higher Education, Science, and Technology, Stella Cristhie, stated that the government is currently calculating the potential additional funding from the confiscated corruption proceeds. She emphasized that the funds will be directed to strengthen research funding and LPDP scholarships, two sectors that are the backbone of developing a superior generation. According to her, this decision is a smart move to ensure LPDP’s sustainability amidst the deficit challenges the institution has faced over the past two years.
Data shows that the LPDP is experiencing fiscal pressure. LPDP’s Acting President Director, Sudarto, revealed that the institution’s revenue by the end of September 2025 reached Rp6.82 trillion, while its expenditure reached Rp7.46 trillion. Similar deficits occurred in the previous two years. As a result, the number of scholarship recipients in 2025 was forced to be reduced to around 4,000 from more than 8,500 in 2024. However, Sudarto is optimistic that with additional government funding, LPDP can again expand opportunities for young Indonesians in 2027.
President Prabowo’s policy has received widespread support, including from the legislature. Abdul Fikri Faqih, a member of Commission X of the Indonesian House of Representatives (DPR RI), assessed that this policy direction is very appropriate because it touches the root of national development, namely the quality of human resources. He emphasized that developing human resources is a fundamental step that has not been a primary focus. With additional funding to the LPDP, Fikri is optimistic that high-potential individuals from underprivileged families will have equal opportunities to pursue quality higher education, both at home and abroad.
The government recognizes that a nation’s competitiveness is determined not only by its wealth of natural resources, but also by its human capacity to manage them. The LPDP (Indonesian Development Planning Agency) is a crucial instrument in producing a generation that is highly knowledgeable, creative, and has character. Under the Prabowo-Gibran administration, education is viewed not merely as an administrative matter but as a long-term strategic investment. Every rupiah invested through the LPDP is not just a figure in a budget report, but rather capital for developing future leaders who will lead Indonesia toward independence in science and technology.
This step also reflects a development policy that prioritizes the future. President Prabowo has repeatedly emphasized that education must be a national priority, alongside defense and food security. He views strengthening the LPDP as a concrete effort to prepare a generation ready to compete in an increasingly competitive global world. In fact, on numerous occasions, he has emphasized that every Indonesian child, regardless of social and economic background, has the right to the broadest possible opportunities to learn and develop.
Finance Minister Purbaya Yudhi Sadewa also confirmed that the government is preparing a realistic plan to realize the additional LPDP funding. He acknowledged that fiscal capacity in 2025 remains limited, but opened up the possibility of realization in the following year. This statement demonstrates a serious commitment and thorough long-term planning, not just a fleeting political decision.
With this policy, the government emphasizes that the results of corruption eradication go beyond simply returning state funds, but are also directed toward generating broad social benefits. By channeling these funds to education, the government reinforces the moral message that every rupiah of corruption recovered will be used to build the future of the nation’s children.
The LPDP (Indonesian Institute for Research and Community Empowerment) has long been recognized as an institution that plays a significant role in producing thousands of Indonesian scholars. LPDP alumni have contributed in various fields, from academics and researchers to innovators and policymakers. With additional fresh funding, LPDP’s program coverage is expected to expand, reaching 3T (underdeveloped, frontier, and outermost) regions and strengthening research relevant to national needs.
Amidst the spirit of the Youth Pledge commemoration, this policy symbolizes the government’s entrusting the nation’s future to an educated and virtuous young generation. While once youth united in the spirit of physical and ideological struggle, now that struggle continues in the form of intellectual struggle and innovation.
President Prabowo’s policy is not only about addressing the LPDP deficit, but also an effort to rekindle the collective spirit that building a nation begins with education.
*) Human Resources Development and Educational Innovation Analyst