Free Tuition at Public Universities: Between Political Rhetoric and Fiscal Realities

Abstract

The discourse on tuition-free public universities in Indonesia raises important questions regarding equitable access to higher education and the state’s fiscal capacity to sustain such a policy. This study aims to analyze tuition-free public university policies through human capital theory and distributive justice theory, as well as to examine how fiscal capacity influences their feasibility and sustainability. This research employs a qualitative library research method using academic books, scholarly journal articles, legal documents, and relevant policy publications. The collected data are analyzed descriptively and analytically by examining the relationship between educational investment, equitable access, and public financing. The findings indicate that eliminating tuition fees can reduce direct financial barriers to higher education, but it does not automatically ensure equal opportunities, particularly for students from disadvantaged socioeconomic backgrounds. Furthermore, the feasibility of tuition-free policies depends on predictable long-term funding, adequate institutional capacity, transparent resource allocation, and effective financial governance. The study concludes that tuition-free higher education should balance educational equity, human resource development, and fiscal sustainability. A gradual and targeted financing approach that prioritizes disadvantaged students, strengthens existing financial assistance programs, and ensures adequate funding for public universities may serve as a policy option for Indonesia. Further empirical research is needed to compare the fiscal costs and distributional effects of universal tuition-free policies and targeted financial assistance.