Jakarta. Indonesia will channel Rp 13.25 trillion ($800 million) seized from a major crude palm oil (CPO) export corruption case into its national education endowment fund (LPDP).

Finance Minister Purbaya Yudhi Sadewa confirmed Tuesday that the seized funds have been officially allocated to strengthen the LPDP, with total endowment funding now raised to Rp 25 trillion.

“The funds have already been transferred to LPDP. In fact, we’re increasing the total endowment to Rp 25 trillion,” Purbaya told reporters in Jakarta.

The additional capital injection follows President Prabowo Subianto’s directive to use corruption recoveries to increase national education financing. “I will expand LPDP. Most of the funds from efficiency measures and recovered corruption assets will be invested in LPDP,” Prabowo said during a cabinet meeting at the State Palace last week.

Earlier this month, the Attorney General’s Office handed over Rp 13.25 trillion in seized assets from the CPO corruption case to the Finance Ministry. The case involved illegal export permits and losses to state revenue from Indonesia’s lucrative palm oil sector.

The government has also allocated Rp 15 trillion for LPDP postgraduate scholarships in the 2026 state budget, up from Rp 11.85 trillion in realized spending in 2024. As of Sept. 30, LPDP’s expenditure had reached Rp 7.46 trillion this year.

Purbaya said the fund expansion aims to widen access to high-quality education and research opportunities while boosting Indonesia’s long-term human capital development. “This is part of the government’s long-term strategy to strengthen Indonesia’s global competitiveness through education, research, and innovation,” he said.

Beyond scholarships, LPDP financing is also directed toward strategic research programs, technology innovation, and international academic collaboration.

The LPDP, established in 2013, has become one of Indonesia’s most important instruments for building a skilled workforce. Since its inception, it has supported 55,776 awardees, including 40,501 master’s, 11,830 doctoral, 3,388 specialist doctor, and 57 non-degree graduates.

However, despite record demand, LPDP plans to limit scholarship recipients to 4,000 each in 2025 and 2026, following an unprecedented surge in applications. The program accepted 9,358 awardees in 2023 from 33,396 applicants and 8,592 in 2024 out of 52,842 applications. For 2025, LPDP expects around 4,000 successful candidates from a record 78,000 applicants.

As of this month, 1,665 candidates have passed the first selection stage, which includes fellowship and priority programs, while the second stage remains ongoing.