A world-class university is a primary goal of most universities, including Islamic universities in Indonesia. Research about a strategic policy of universities toward a world-class university (WCU) has been conducted. However, few researchers have explored the strategic policy of Islamic universities to achieve world-class status, particularly in Indonesia. Responding to the gap, this research aims to examine the strategic policy implemented by an Islamic university in Indonesia (i.e., UIN Sunan Kalijaga Yogyakarta) toward a world-class university. In addition, this research also reveals potential challenges encountered by the university in becoming a world-class university. This research employed a case study design involving selected three informants: (1) the head of quality assurance of UIN Sunan Kaliaga Yogyakarta; (2) an expert in strategic policy of higher education; and (3) an expert of policy and management in higher education. An in-depth interview and Focus Group Discussion (FGD) were conducted with the informants to gather the required data. The findings depicted that UIN Sunan Kalijaga Yogyakarta has implemented several indicators of a world-class university, such as designing an international curriculum, building partnerships with international universities, and organizing international standardized programs of human resources development. However, the university also encountered several challenges, such as a lack of internationally reputable professors, a lack of international students, and a lack of independence in terms of facility and financial issues. In conclusion, UIN Sunan Kalijaga Yogyakarta has not been recognized as a world-class university, but it is continuously developing toward a world-class status. This research offers both theoretical and practical contributions to developing Islamic universities in Indonesia toward a world-class university.
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