This article aimed to identify the inhibiting factors and the internationalisation strategy of higher education in Indonesia. The study deployed a qualitative based on the case study at Muhammadiyah Higher Education Institutions. Data collected through in-depth interviews with key respondents include the leader of Higher Education, Research and Development Council of Muhammadiyah, university chancellors, and International Affairs Office head. Findings illustrate the factors hindering the internationalisation which are generally not much different from those described by previous research but here found one factor which has not been explained before, the geographical location of the university, which mostly located in small urban areas that depicted a condition in which cooperation with external parties, foreign institutions, is challenging. The finding also suggests that the internationalisation strategies formed in a very structured manner, involving internal and external university parties. Therefore, this is significant as it explores inhibiting factors and internationalisation strategy of higher education in Indonesia, where it still prioritises religious and cultural values in their educational systems. Practically, this result expected to be a useful reference for university leaders in formulating internationalisation strategies so that the quality of graduates produced can be further improved.