Artikel ini ditulis oleh Alya Nabila dan diterbitkan di the Jakarta Post pada tanggal 17 September 2024.
Education is a fundamental human right guaranteed by the 1945 Constitution. In line with this, the government has allocated Rp 665.02 trillion (US$41.5 billion) for education in 2024, equivalent to 20 percent of the state budget and a 7 percent increase from 2023. This significant investment is crucial to ensure that education remains accessible to all. Nevertheless, financial challenges remain a harsh reality for many students, particularly in higher education, as the single tuition fee (UKT) continues to rise at an average 3.81 percent annually, according to Statistics Indonesia (BPS). For students from low-income families, the pressure to balance their academic goals with living expenses is becoming increasingly tough.
In response to this financial strain, some universities have partnered with fintech lenders to offer an alternative funding source. This year to date, 86 universities have established such partnerships (Kompas, 2024), which present a potential solution for students in need of additional financial support who might not have access to more traditional forms of aid. For those students with a stable financial outlook, fintech loans can provide a flexible and timely option to bridge the gap. Fintech loans have the advantage of being accessible and in many cases, are tailored to a student’s needs. The application process is typically faster than traditional loans from bank, and many fintech lending platforms offer more personalized repayment plans based on individual circumstances. As such, fintech loans can provide much-needed relief for students needing access to immediate funds to continue their education without interruption. But like any financial product, fintech lending comes with its own set of considerations.
Although the partnership between fintech lending platforms and universities essentially constitutes a civil relationship in accordance with the Civil Code, fintech lenders must also adhere to stringent regulations, including Financial Services Authority (OJK) Regulation No. 10/2022 and OJK Circular No. 19/2023. In this context, fintech lenders must ensure that loans are approved only after thorough assessment and evaluation as well as their alignment with a borrower’s needs, eligibility and financial capacity, including income level and sources. While this regulatory framework offers some protection, it is vital to recognize that not all students are equally equipped to handle debt. Given these complexities, fintech loans should be viewed as one of several options available to students, and not a blanket solution. They can be beneficial for those who are financially capable, offering a way to complete their education without delay. As for students facing more significant financial struggles, direct government support, scholarships and interest-free loans might be more appropriate and sustainable.
The 2012 Higher Education Law emphasizes the need for government and educational institutions to provide financial support to students, particularly those from disadvantaged backgrounds. This support may come in the form of scholarships, financial aid or interest-free loans, as stipulated in Article 76. In a similar vein, Education, Culture, Research and Technology Ministerial Regulation No. 25/2020 allows for temporary waivers, installments or tuition reductions in providing students with financial flexibility during difficult times. Furthermore, the Indonesia Smart Program (PIP), as detailed in Education Ministry Secretary-General Regulation No. 10/2022, provides targeted assistance to students from low-income families that covers the costs of both tuition and educational development.
Therefore, while partnerships with fintech lenders can offer a practical solution for some students, particularly those with moderate financial stability, they must be implemented with caution and responsibility. It is crucial that fintech lenders thoroughly assess the financial capacity of student borrowers to avoid placing undue burden on their futures, keeping in mind that fintech loans should help students who are temporarily short on funds and have a viable plan for repayment. Ultimately, a balanced approach is key. Fintech lenders have the potential to empower students by offering a flexible, modern financial solution.
However, it should be part of a broader strategy that includes increasing scholarships, government subsidies and targeted financial aid to ensure that all students, regardless of their financial background, can attain higher education without jeopardizing their long-term financial stability.