Since 1999, Indonesia’s higher education system has entered a new stage. The government promotes legal entity reform at public colleges and universities, and plans to transform all public colleges and universities into legal entities. This is unprecedented in Indonesian education history. Eight public higher education institutions in the first and second batch were succesfully converted to legal entities. After experiencing legal entity reform, Indonesia’s public colleges and universities improved. The government indirectly proposed three types of public higher education institution. This means that Indonesia’s public colleges and universities developed from a single model to becoming these diversified models.