The policy transforming State Universities (PTN) into Legal Entity State Universities (PTNBH), which grants autonomy and flexibility, requires PTNBH to diversify their funding sources. In reality, many PTNBHs remain highly dependent on a single funding stream. Grounded on Grindle's Implementation Theory, which holistically examines policy content and the context of implementation, this study analyzes how the policy framework is designed to encourage funding diversification and its subsequent implementation. This research employs a qualitative method, with data gathered through in-depth interviews and secondary data analysis of PTNBHs that have held the status for at least three years. The results indicate that while the policy was designed as an administrative reform instrument to drive diversification, it still faces inconsistent technical regulations and a lack of focus on fostering an entrepreneurial mindset among PTNBH human resources. The implementation shows that PTNBHs have shifted their governance and attempted to diversify funding; but the effectiveness of these efforts depends on the characteristics of each university.
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