This study examines the reinternalization of New Public Management (NPM) principles in the management of State Universities in Indonesia amid the growing demands of higher education autonomy. The study argues that many state universities still experience difficulties in interpreting and implementing NPM principles appropriately, particularly in balancing institutional independence with public service responsibilities. This research employs a qualitative descriptive method with a conceptual paper approach by analyzing various regulations, academic literature, and practices related to higher education management in Indonesia. Data were collected through documentation and observation techniques and analyzed through data reduction, data presentation, and conclusion drawing. The findings indicate that the implementation of NPM in Indonesian state universities has encouraged managerial innovation, institutional flexibility, and financial autonomy. However, the adoption of business-oriented management practices has also created risks of excessive commercialization and weakened public service orientation. Therefore, the reinternalization of NPM principles is necessary to ensure that university management remains aligned with the core values of higher education autonomy, namely accountability, transparency, non-profit orientation, quality assurance, efficiency, and effectiveness. This study emphasizes that the adoption of private-sector management practices in higher education should not merely pursue financial gains but must strengthen equitable educational access and institutional sustainability in serving society.
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