Given the 20:1 ratio of the number of private higher education institutions to state ones, the commercialization of higher education and all the ramifications that come with it, are inevitable. The control by the government became more cumbersome and impossible. It would seem that plugging any loopholes in the government regulations applying to private higher education institutions had become a full-time job of the Ministry of National Education officials, who did not want to be plugging them anyway for this reduced their potential illicit incomes.
As an example, the proliferation of the MBAs in Indonesia in the 1980’s and their varying quality as well as the frauds that came with it, caused the Indonesian government to regulate it by banning the MBA degrees in the country in 1993, and replacing them with a national MM (Magister Manajemen or Master in Management) degree which was controlled by the Directorate General of Higher Education (DGHE) and implemented through the Private Higher Education Coordinating (PHEC) Agency. Eight subjects of the MM degree must be examined by the state and transcripts issued by the PHEC. Every higher education student must have a State Student Number arranged and issued by the PHEC Agency for the region. As can be imagined, PHEC cannot issue the appropriate State Student Number without all paper work from the various government agencies, such as the Police, the District Chief’s Office, the Identity Card Office, the Security Office etc etc each of which will require a formal and informal sets of fees.
The State Examination of the eight subjects must be conducted by faculty or lecturers who are registered with the PHEC and has the State Lecturer’s Number. Naturally, not all private higher education institutions in the country have full-time State registered lecturers for all eight subjects whose names were to be submitted to PHEC before the registered students could have their State Subject examinations ratified and their transcripts issued. It was therefore not uncommon for private higher education institutions in Indonesia to do horse-trading amongst themselves, particularly across
N IDRUS TRANSFORMING QUALITY FOR DEVELOPMENT KEYNOTE PAPER 7QHES, 29-31 OCTOBER 2002, MELBOURNE, AUSTRALIA