International education market in Indonesia

Indonesia is one of the world’s largest education markets, with over 50 million students. The Indonesian government has invested heavily to expand access, enhance quality, and strengthen global competitiveness. The recent creation of a dedicated Ministry of Higher Education, Science, and Technology highlights Jakarta’s renewed emphasis on research, innovation, and international partnerships. 

While public universities continue to dominate overall enrollment, private institutions and vocational schools are expanding quickly, especially in urban and industrial centres. The growing demand for industry-aligned technical education and workforce-ready skills is creating new opportunities for Canadian institutions and training providers to engage in partnerships, joint programs, and capacity-building initiatives.

• University rankings: Most Indonesian universities don’t rank very high worldwide, limiting deeper partnerships and pointing collaboration towards mobility and short-term programs. 
• Funding and pathways: Few articulation agreements with Canada means students often choose closer, more affordable destinations such as  Malaysia and Singapore. Flexible pathways and scholarships could help Canada compete. 
• Global competition: Australia, the UK, and other countries  actively pursue coordinated strategies with stronger funding, though Canada appeals as a welcoming, high-quality study destination. 
• Research funding: Limited funding, especially outside major cities, constrains collaboration. Projects with clear local relevance remain attractive. 
• Connectivity barriers: No direct flights to Canada from Indonesia increase costs and travel time, affecting mobility. 
• Ownership rules: At least 51% local ownership is required for foreign education institutions in Indonesia, restricting control but opening doors for joint ventures. 

Indonesia’s education sector is undergoing a major transformation focused on equity, innovation, and labour market alignment. At the school level, the Merdeka Belajar initiative promotes student-centred learning, 21st-century skills, teacher upskilling, and digital integration. Since October 2024, the new Ministry of Higher Education, Science, and Technology has overseen tertiary education, focusing on institutional autonomy, research with societal impact, and science and technology for inclusive growth.

International partners play a key role. The World Bank and Asian Development Bank (ADB) support higher education quality, vocational training, and digital infrastructure. Meanwhile, Germany, Switzerland, Australia, and the United Kingdom (UK) provide technical assistance and funding for technical and vocational education and training (TVET) reform. Philanthropic foundations support curriculum development, inclusive education, and skills training. These initiatives aim to positioning Indonesia as a globally competitive knowledge economy by 2045.

Indonesia is a dynamic, high-potential market for Canadian education institutions, driven by its large student population, growing middle class, and strong government commitment to reform and international collaboration. The new Ministry of Higher Education, Science, and Technology highlights a push toward research, innovation, and global engagement. This creates opportunities in higher education, TVET, and capacity building. With strengths in technical training, flexible learning, and English-language instruction, Canadian institutions can meet Indonesia’s demand for industry-aligned skills and international pathways.

For more information on international education in the Indonesian market, please contact Trade Commissioner, Julia Pangkey (julia.pangkey@international.gc.ca).