This study examines the recurring conflicts in the financial management of higher education in Indonesia, characterized by disparities in budget allocation needs and interests, unjust and misdirected budget distribution, and misappropriation of funds. It aims to investigate leadership strategies for resolving these conflicts to ensure precise and efficient financial management. Employing a qualitative-phenomenological approach through case studies, this research centers on financing issues at state Islamic universities with BLU status. Data were collected via interviews, observations, and documentary analysis, employing Miles and Huberman’s methodology of data reduction, display, and conclusion drawing. Findings indicate the necessity of strategic conflict resolution to mitigate adverse impacts on higher education development. Effective conflict management, as shown, involves a leader’s ability to maintain a constructive outlook, recognize the potential benefits of conflicts, and adopt a decisive approach. By refining goals, enhancing communication, and improving procedures, conflicts can be transformed into productive elements of organizational dynamics.
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