This study explains how the policy innovation adoption process runs in higher education. To provide this description, this article formulates the question of how Kampus Merdeka policy initiated by the Ministry of Education and Culture in early 2020 was adopted and implemented at the higher education level. With a new policy context, it is important to look at the responses and complexities that arise from higher education when these changes are adopted. To analyze this phenomenon, researchers used a case study method at Universitas Pembangunan Nasional (UPN) Veteran Yogyakarta. The innovation diffusion theory framework is presented to get a detailed picture of the policy adoption process. Based on this research, the diffusion process of Kampus Merdeka innovation at UPN Veteran Yogyakarta has shown some complexity, especially biases in the preparation of Kampus Merdeka schemes such as cross-study program learning, off-campus learning, partnership, and internship equivalent. In addition, the ecosystems such as information system, human and financial resources have yet to be touched upon in the diffusion of Kampus Merdeka in state universities in which, still have the status of work units.