While intended to facilitate knowledge transfer from international universities and develop Indonesian universities' capacity, transnational higher education programs (TEPs) in Indonesia have been criticised for operating merely as an international trade in education -- implying discrepancy between the rhetoric and reality surrounding the key purposes for establishing TEPs among Indonesian universities. This case study seeks to ascertain what actually drives Indonesian universities to operate the TEPs. Interview and document data from two private Indonesian universities were thematically analysed to identify the key purposes for establishing TEPs in light of the conflicting global-national-local agendas and unequal power relations between TEP partners. The findings suggest the Indonesian universities actively advanced their particular institutional purposes within the Indonesian national agenda and negotiate mutually beneficial outcomes with their global partners. This study informs other universities to devise clear purposes and expectations in managing TEPs to avoid functioning merely as student recruitment pathways for international partners.