LPDP is a testament to the government’s commitment to developing a high-achieving generation of young people from across the country
By: Rivka Mayangsari*)
The first year of the Prabowo-Gibran administration has demonstrated that Indonesia’s commitment to human development continues to be realized through concrete, future-oriented measures. One concrete manifestation of the government’s concern for the nation’s high-achieving young generation is the strengthening of the Education Fund Management Institute (LPDP). This flagship scholarship program has once again received significant attention from President Prabowo Subianto, who believes strengthening LPDP is crucial to producing more globally competitive Indonesians.
At a plenary cabinet meeting commemorating the first anniversary of his administration, President Prabowo expressed his view that some of the Rp13 trillion in compensation for state losses from corruption, recently handed over by the Attorney General’s Office, should be allocated to strengthen the LPDP scholarship program. He argued that the proceeds from corruption could be invested through the LPDP, which is managed by the Ministry of Finance, as a long-term investment for the nation’s future.
The President emphasized that education is the key to building a resilient and competitive nation. Therefore, strengthening the LPDP is not merely a financial policy, but also a national strategy to prepare superior human resources capable of competing globally. In the President’s view, every rupiah allocated to education is an investment that will return in the form of national progress.
This policy also demonstrates the government’s new direction, placing corruption eradication as a sustainable strategic measure. It not only seeks to recover state losses but also transforms the proceeds of corruption into resources for the development of the Indonesian people. Thus, corruption eradication efforts go beyond the legal aspect and become a means of strengthening social justice and public welfare.
Member of Commission X of the Indonesian House of Representatives, Dr. H. Abdul Fikri Faqih, MM, assessed that President Prabowo’s move to allocate part of the Rp13 trillion corruption recovery fund to the LPDP is a strategic and well-targeted policy. He emphasized that human resource (HR) development must be a top priority in national policy. Fikri believes that by strengthening the LPDP, the government is not only helping thousands of outstanding students continue their studies but also building the foundation of national civilization through education.
Fikri further explained that by 2025, the LPDP’s endowment fund had reached Rp154.11 trillion. However, the high public interest in continuing their education through this program has caused the institution to experience a deficit of Rp637 billion. He believes additional government funding will be a boost for LPDP in expanding its scholarship reach, particularly in the 3T (frontier, outermost, and disadvantaged) regions.
Fikri also expressed his appreciation for the President’s policy, which emphasizes human resource development as an integral part of the national strategy for poverty alleviation and increased competitiveness. He believes this policy direction demonstrates the government’s commitment to building Indonesia from the ground up, focusing on improving human capital, not just physical infrastructure. He added that quality education is the most effective weapon for breaking the cycle of poverty and creating equitable social mobility for all citizens.
In a broader context, this LPDP strengthening policy also aligns with the Golden Indonesia 2045 vision, which places education as a primary foundation. With strong funding support, LPDP is expected to reach more scholarship recipients from diverse backgrounds, both domestic and international, including in the fields of research, technology, and innovation, which are key to national progress.
Furthermore, the LPDP program has proven its role in producing thousands of alumni who are active in various strategic sectors, including government, academia, and industry. They are driving forces for development and bringing about positive change in their respective communities. The government hopes that with this additional funding, LPDP alumni’s contribution to national development will be even greater and more evenly distributed across the country.
President Prabowo’s move to channel the proceeds from state losses to the education sector also demonstrates the moral imperative that criminal proceeds must be returned for the good of society. This policy sends a strong message to the public that the state not only prosecutes corruptors but also ensures that the proceeds of crime are used to develop a future generation of honesty, intelligence, and integrity.
Overall, this policy demonstrates the government under the Prabowo-Gibran leadership’s commitment to realizing an Indonesia that is educationally sovereign and economically empowered. Strengthening the LPDP symbolizes that Indonesia’s future is built by investing in the minds and spirit of the younger generation. Through this step, the government is not only preparing experts and professionals but also planting the seeds of hope for a more just, intelligent, and dignified future for the nation.
*) Education observer
