Academic Capitalism in Southeast Asia: Lessons from Islamic Universities in Indonesia

Indonesia’s demographic potential has fueled increasing demand for higher education, creating opportunities for private universities to address gaps left by public institutions. Many private universities in Indonesia, particularly Islamic institutions, integrate religious values as a core identity while navigating the pressures of academic capitalism. This research investigated how academic capitalism reshapes Islamic universities, compelling them to balance their religious values with global market demands and aspirations for world-class status. This research explored the strategies Islamic universities adopt to navigate these challenges by employing qualitative methods. The findings identify two dominant responses: a pragmatic model, which prioritizes global rankings and revenue generation as indicators of institutional success, and an idealistic model, which integrates rankings cautiously while emphasizing the preservation of Islamic values. These models reflect the diverse ways institutions reconcile external pressures with their missions. Despite challenges, Islamic universities demonstrate resilience, crafting strategies to balance their educational mission with the demands of globalization. The research emphasizes the need for context-sensitive approaches that align global frameworks with local religious and cultural values, offering insights into the evolving landscape of higher education in Southeast Asia. This balance underscores the critical role of identity and values in shaping the future of Islamic higher education.