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Research on hybrid organizations has gained interest from many scholars. This is due to the combined
characteristics of private- and public-sector organizations, embedded in a single entity; thus, it carries
distinctive challenges for the researchers. State universities with autonomous legal entities are
educational institutions in Indonesia that are obliged to provide world-class education services for the
public. In fulfilling the mission, the university management needs support, such as finance and
regulation, from the government. However, the government limits the flexibility of the university
management in generating profit. For instance, the tuition fee rate, which is one the university’s
primary revenue sources, must be submitted to the government's guideline. In other words, the
university management does not have the flexibility to determine the tuition cost rate. Consequently,
the university management must seek for other revenue streams, i.e., optimizing the use of
endowment funds for investment, to achieve the university’s objective. Also, the university
management must explore strategies that can deliver maximum return for its investment while at the
same time minimizing the risk. Therefore, This study explores to identify the investment policy model
in hybrid organizations especially higher education institutions. A qualitative approach through
documents review was conducted in this study. The findings reveal that an ideal portfolio investment
model should consider factors, such as attitude to risk, the number of funds invested, income received
during the period for investment, and the restrictions derived from the regulations. Therefore, the
decision-makers, i.e., The ministry of higher education should consider issuing regulations that allow
flexibility for the state university with autonomous legal entities in making investment decisions. Other
than that, the management must develop investment policy models that can provide maximum return,
but with moderate risks to support the financial needs of the university.


Investment policies models state universities autonomous legal entities hybrid document review

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