Budgeting in different university settings: the case of Indonesia

This study compares how two types of higher education institutions in Indonesia handle their budgets. Financial autonomy, university governance, and the interests of stakeholders who fund universities play significant roles in university budgeting processes. This study was conducted using a qualitative case study approach within the interpretivist philosophical stance. Data were collected from two universities, namely PTNBH (a public university with autonomous status as PTN-BH) and PRIVATE (a private Islamic higher education institution funded by stakeholders). This study employs Stakeholder Theory and Resource Dependence Theory (RDT) as analytical frameworks to compare how the two very different types of higher education institutions manage their budgets. The findings highlight that despite increased financial autonomy, public universities remain constrained by government regulations, limiting their flexibility in budget allocations. In contrast, private universities, while financially independent, face sustainability risks due to their reliance on tuition fees and external donors. Stakeholder dynamics play a crucial role, with public universities balancing government policies and student demands, whereas private universities prioritize donor and market influences. Additionally, while cultural diversity shapes institutional identity, it has a limited direct impact on financial decision-making, as economic sustainability remains the primary concern. The study contributes to the literature by demonstrating how higher education institutions navigate resource dependencies and stakeholder pressures in financial planning. The findings provide practical insights for policymakers and university administrators, emphasizing the need for adaptive financial strategies that ensure both institutional sustainability and stakeholder alignment.