Starting a Private Vocational and Professional Higher Education Institution in Bali, Indonesia, offers a unique opportunity for investors and educators.
These institutions focus on the development of professional skills essential for the workforce, emphasizing practical applications of science and technology.
As a PT PMA (foreign-owned company), establishing such an institution, whether within a Special Economic Zone (KEZ) or beyond, involves navigating specific regulations under the KBLI Code 85322.
This introductory guide will explore the scope and educational models like diplomas, applied degrees, and specialist programs in vocational and professional training—all managed privately.
Overview
The group includes educational institutions that focus on the development of professional skills, emphasizing the application of knowledge and technology in professional fields. This includes vocational education programs such as diplomas (levels 1 through 4 or applied bachelor’s degrees), applied master’s programs, applied doctoral programs, and professional programs such as specialty training managed by private entities.
Legal Basis
The legal framework is defined by the Indonesian Ministry of Education and Culture’s regulations:
- Regulation Number 10 of 2021, detailing the norms, standards, procedures, and criteria for risk-based business licensing for formal educational units in Special Economic Zones (SEZs).
- Regulation Number 7 of 2020, concerning the establishment, modification, and dissolution of public higher education institutions and the licensing of private higher education institutions.
Type of License
The license types pertain to the establishment of private vocational and professional higher education institutions (polytechnics, academies) outside of SEZs, where the OSS agency only issues a Business Identification Number (NIB).
Coverage of Service
The scope includes the establishment of private and state vocational and professional higher education institutions within and outside of SEZs.
Business Scale, Land Area, and Risk Level
Scale: Large business
Land Area: Not regulated
Risk Level: High
Business Licensing: License required
Duration for Issuance: 13 days (within SEZs)
Validity Period: Not specified
Authorities Granting Licenses
At the national level, all SEZ administrators can grant licenses. For foreign direct investments, the authority is vested in the Minister or the Head of the Agency.
Requirements and Obligations for Business Licensing
- Requirements include:
- An organizational structure for branch campuses in accordance with the regulations of the Ministry of Education and Culture and the Ministry of Research and Technology.
- For top 100 globally ranked state higher education institutions recognized by the Ministry of Education, Culture, Research, and Technology and accredited or recognized in their country of origin, or an invitation from the Minister if they do not meet these criteria (not applicable to private academy establishments in SEZs).
- The development plan documents for branch campuses must include feasibility studies, campus design, curriculum documents of proposed study programs, a list of infrastructure and facilities, and a list of teaching and administrative staff with qualifications and citizenship status.
- Obligations include:
- Reporting the operation of higher education through the higher education database.
Frequently Asked Questions
- What is the primary goal of starting a PT PMA for Private Vocational and Professional Higher Education in Bali, Indonesia (KBLI Code 85322)?
The primary goal is to deliver specialized training and education programs that meet the Indonesian job market's needs, focusing on the practical application of science and technology in various professions.
- What types of educational programs can a PT PMA offer under KBLI Code 85322?
A PT PMA can offer vocational education programs, applied bachelor's, master's, and doctoral programs, professional education programs, and specialist programs designed to develop high-level expertise in specific fields.
- What is the importance of developing a branch campus structure for a PT PMA under KBLI Code 85322?
Developing a branch campus structure is crucial for outlining the institution's organizational framework, which is a key requirement in the licensing process.
- What role does accreditation play in the operation of a PT PMA in this field?
Accreditation ensures that the educational programs meet quality standards and are recognized by the Ministry of Education, Culture, Research and Technology, which is vital for the institution's credibility and operational success.
