Global Issues in Budgeting and Financing Systems (RM, BLU, and UKT) for World-Class Education: A Case Study at UIN SUKA Yogyakarta

Wardatul Jannah; Kaspul Anwar Us; Fridiyanto

doi:10.59535/3cwp9476

Authors

Wardatul Jannah Universitas Islam Negeri Sulthan Thaha Saifuddin Jambi, Indonesia Author
Kaspul Anwar Us Universitas Islam Negeri Sulthan Thaha Saifuddin Jambi, Indonesia Author
Fridiyanto Universitas Islam Negeri Sulthan Thaha Saifuddin Jambi, Indonesia Author

DOI:

https://doi.org/10.59535/3cwp9476

Keywords:

World Class University, Higher Education Financing, Public Budgeting, Global Education Policy

Abstract

Higher education institutions today are not only centers of knowledge development but also expected to meet international standards as World Class Universities (WCU). One major challenge in achieving this status lies in the effective, transparent, and output-oriented management of budgeting and financing systems. UIN Sunan Kalijaga Yogyakarta, in its effort to become a World Class Education (WCE) institution, faces significant global pressures such as declining state budget allocations, international accreditation demands, increasing PhD faculty ratios, and the need for campus expansion. This study aims to examine how budgeting and financing systems—Rupiah Murni (RM), Public Service Agency (BLU), and Single Tuition Fee (UKT)—are implemented, the global issues influencing higher education financing, and how these systems support institutional transformation. Using a qualitative descriptive approach and case study method, the research reveals that UIN Sunan Kalijaga adopts a hybrid financing model combining state funds, institutional revenues, and student contributions. The BLU system grants financial flexibility through service income and asset optimization, while UKT is managed transparently to ensure affordability. However, global issues such as funding cuts, education inflation, and dependency on government-issued Islamic bonds (SBSN) pose ongoing challenges. In this context, financial systems become critical drivers for improving infrastructure, academic quality, and global engagement. Initiatives like endowment fund development signal a strategic shift toward long-term financial sustainability. Ultimately, budgeting and financing serve not only administrative functions but also act as key catalysts in achieving WCU standards.

References

[1] J. Sarpong and T. Adelekan, “Globalisation and education equity: The impact of neoliberalism on universities’ mission,” Policy Futures in Education, vol. 22, no. 6, pp. 1114–1129, Sep. 2024, doi: 10.1177/14782103231184657.

[2] T. Gkrimpizi, V. Peristeras, and I. Magnisalis, “Classification of Barriers to Digital Transformation in Higher Education Institutions: Systematic Literature Review,” Education Sciences, vol. 13, no. 7, Art. no. 7, Jul. 2023, doi: 10.3390/educsci13070746.

[3] B. Högberg and J. Lindgren, “Outcome-based accountability regimes in OECD countries: a global policy model?,” Comparative Education, vol. 57, no. 3, pp. 301–321, Jul. 2021, doi: 10.1080/03050068.2020.1849614.

[4] M. A. Mohamed Hashim, I. Tlemsani, and R. Duncan Matthews, “A sustainable University: Digital Transformation and Beyond,” Educ Inf Technol, vol. 27, no. 7, pp. 8961–8996, Aug. 2022, doi: 10.1007/s10639-022-10968-y.

[5] X. Xiang, Y. Li, N. Liang, B. Wang, and H. Wang, “Assessing healthcare payment reforms’ effects on economic inequities and catastrophic expenditures among cancer patients in ethnic minority regions of China,” BMC Med, vol. 23, no. 1, p. 208, Apr. 2025, doi: 10.1186/s12916-025-04040-y.

[6] S. Henderson and E. Ross, “Informal entrepreneurship and women’s empowerment: An asset-based perspective on the lived experiences of Swati women,” Development Southern Africa, vol. 42, no. 3, pp. 423–441, May 2025, doi: 10.1080/0376835X.2025.2474240.

[7] A. G. Abo-Khalil, “Integrating sustainability into higher education challenges and opportunities for universities worldwide,” Heliyon, vol. 10, no. 9, May 2024, doi: 10.1016/j.heliyon.2024.e29946.

[8] D. S. Sangwa, P. Ruhamya, E. Ekosse, and D. Ngobi, “Bridging Gaps In Rwanda’s Higher Education: A Strategic Analysis Of Program Availability, Delivery Models, And Regional Competitiveness,” Jun. 05, 2025, Social Science Research Network, Rochester, NY: 5283935. doi: 10.2139/ssrn.5283935.

[9] E. Fatmawati et al., “Change management towards good university governance in Indonesia: study at Islamic religious universities based on BLU mandate,” Cogent Social Sciences, vol. 10, no. 1, p. 2333081, Dec. 2024, doi: 10.1080/23311886.2024.2333081.

[10] S. Aithal and P. S. Aithal, “Importance of Circular Economy for Resource Optimization in Various Industry Sectors – A Review-based Opportunity Analysis,” Jun. 30, 2023, Social Science Research Network, Rochester, NY: 4575631. doi: 10.2139/ssrn.4575631.

[11] A. Q. Noori, “The impact of COVID-19 pandemic on students’ learning in higher education in Afghanistan,” Heliyon, vol. 7, no. 10, Oct. 2021, doi: 10.1016/j.heliyon.2021.e08113.

[12] S. Cacciatore et al., “Urban health inequities and healthy longevity: traditional and emerging risk factors across the cities and policy implications,” Aging Clin Exp Res, vol. 37, no. 1, p. 143, May 2025, doi: 10.1007/s40520-025-03052-1.

[13] R. Rahimi, J. Jones, and C. Bailey, “Exploring contract cheating in further education: student engagement and academic integrity challenges,” Ethics and Education, vol. 19, no. 1, pp. 38–58, Jan. 2024, doi: 10.1080/17449642.2023.2299193.

[14] T. Jahnel, H.-H. Dassow, A. Gerhardus, and B. Schüz, “The digital rainbow: Digital determinants of health inequities,” DIGITAL HEALTH, vol. 8, p. 20552076221129093, Jan. 2022, doi: 10.1177/20552076221129093.

[15] A. G. Bailey, B. M. Reingold, J. D. Johnson, and A. C. O’Connor, “Paths towards commercialization: evidence from NIH proof of concept centers,” J Technol Transf, Feb. 2025, doi: 10.1007/s10961-025-10187-w.

[16] A.-S. Arampatzi, R. Christie, J. Evrard, L. Parisi, C. Rouveyrol, and F. van Overbeek, “Capital Markets Union: A Deep Dive - Five Measures to Foster a Single Market for Capital,” Mar. 2025, Social Science Research Network, Rochester, NY: 5175495. doi: 10.2139/ssrn.5175495.

[17] I. Chirikov, “Does conflict of interest distort global university rankings?,” High Educ, vol. 86, no. 4, pp. 791–808, Oct. 2023, doi: 10.1007/s10734-022-00942-5.

[18] R. Abbasov, “The Effectiveness of Performance-Based Budgeting in the Public Sector: An Empirical Analysis and Policy Implications,” Dec. 21, 2024, Social Science Research Network, Rochester, NY: 5241489. Accessed: Jul. 08, 2025. [Online]. Available: https://papers.ssrn.com/abstract=5241489

[19] R. Fitz Verploegh, T. Budding, and M. Wassenaar, “Policy control as an alternative approach to performance-based budgeting (PBB) to strengthen the link between policy and financial means,” Public Money & Management, vol. 43, no. 8, pp. 816–824, Nov. 2023, doi: 10.1080/09540962.2022.2062162.

[20] C. R. Glass and N. I. Cruz, “Moving towards multipolarity: shifts in the core-periphery structure of international student mobility and world rankings (2000–2019),” High Educ, vol. 85, no. 2, pp. 415–435, Feb. 2023, doi: 10.1007/s10734-022-00841-9.

[21] S. Paparini et al., “Evaluating complex interventions in context: systematic, meta-narrative review of case study approaches,” BMC Med Res Methodol, vol. 21, no. 1, p. 225, Oct. 2021, doi: 10.1186/s12874-021-01418-3.

[22] S. L. Sibbald, S. Paciocco, M. Fournie, R. Van Asseldonk, and T. Scurr, “Continuing to enhance the quality of case study methodology in health services research,” Healthc Manage Forum, vol. 34, no. 5, pp. 291–296, Sep. 2021, doi: 10.1177/08404704211028857.

[23] S. Affouneh, K. Wimpenny, D. Angelov, S. Salha, Z. N. Khlaif, and D. Yaseen, “Fostering a culture of qualitative research and scholarly publication in a leading university in the West Bank: a Palestinian-UK capacity-building collaboration,” Higher Education Research & Development, vol. 42, no. 8, pp. 1825–1839, Nov. 2023, doi: 10.1080/07294360.2023.2209518.

[24] D. Byrne, “A worked example of Braun and Clarke’s approach to reflexive thematic analysis,” Qual Quant, vol. 56, no. 3, pp. 1391–1412, Jun. 2022, doi: 10.1007/s11135-021-01182-y.

[25] C. Wata Dereso, P. Krishnaiah, and S. Kant, “An Assessment of Resource Generation in Public Universities of Ethiopia – In the Case of Wollaita Soddo, Bahirdar and Gondar Universities,” Jul. 17, 2022, Social Science Research Network, Rochester, NY: 4164928. Accessed: Jul. 08, 2025. [Online]. Available: https://papers.ssrn.com/abstract=4164928