The Indonesia Endowment Fund for Education, or LPDP, has long been a key opportunity for Indonesian students seeking to pursue postgraduate studies abroad or at home without bearing tuition costs. LPDP operates under the Ministry of Finance as a specialized public service entity and manages its finances according to regulations governing government-affiliated public service bodies. Its primary role is planning, implementing, and developing scholarship programs for higher education.

According to official LPDP regulations, the fund has significant flexibility in managing its finances, including investments and disbursements, in line with government financial management laws. This allows the scholarship program to remain sustainable while supporting a growing number of Indonesian students pursuing advanced degrees.

Funding Source: Tax Revenues and Investment Returns

A major point of public interest is where LPDP funding originates. LPDP’s legal and communications division confirms that its scholarship programs are financed primarily through the investment of the Endowment Fund for Education, which is allocated from the national budget. A portion of these funds comes from tax revenues contributed by Indonesian citizens, while other portions are derived from government-managed investments to grow the endowment.

The endowment fund itself has steadily increased in value, reaching approximately IDR 180 trillion as of January 20, 2026. The growing fund has enabled LPDP to support tens of thousands of Indonesians in achieving higher education goals without financial barriers.

Impact and Reach of LPDP Scholarships

Since the program began in 2013, LPDP has awarded scholarships to over 58,000 Indonesians, with more than 32,000 having completed their studies. Currently, nearly 19,000 students are enrolled in ongoing programs, and approximately 6,800 are preparing to start their studies.

While originally focused on postgraduate degrees, LPDP has expanded its programs to include undergraduate opportunities in partnership with the Ministry of Higher Education, Science, and Technology. This initiative, known as the Garuda Scholarship, further broadens access to quality education for Indonesian students.

A Scholarship Program with National Significance

The use of tax-funded and endowment resources to finance education underscores the importance of investing in human capital. LPDP scholarships are not only financial support—they represent a long-term strategy to develop skilled Indonesians capable of contributing to national development. The program also emphasizes transparency, accountability, and proper financial governance, ensuring that the investment benefits students while remaining sustainable for the government.

Indonesians interested in applying for LPDP scholarships can find detailed information on program requirements, selection processes, and available study destinations through the official LPDP portal. With both domestic and international opportunities, LPDP continues to open doors for students seeking to pursue S2 and S3 studies without the financial burden, strengthening Indonesia’s future workforce and global academic presence.