<![CDATA[Higher education financing plays a vital role in improving the quality, accessibility, and competitiveness of universities in Indonesia. This study aims to analyze higher education financing policies for State Universities with Legal Entity Status (PTN-BH) and identify the challenges and sustainable financing alternatives. A qualitative approach was employed using library research and content analysis. Data were collected from laws and regulations, government policy documents, academic books, journal articles, and previous studies. The findings indicate that Indonesia's higher education financing system faces limited government funding, rising educational costs, and increasing demands for technological investment. Funding diversification through government budgets, tuition fees, scholarships, partnerships with industry, and the implementation of Outcome-Based Funding can improve efficiency, accountability, and financial sustainability. Therefore, financing policy reforms are essential to establish a fair, transparent, and sustainable higher education financing system.]]>
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