1. 1
EDUCATION FINANCE ANDEDUCATION FINANCE AND
DECENTRALIZATION :DECENTRALIZATION :
Indonesian ExperiencesIndonesian Experiences
1
Dr. rer. soc. R. Agus Sartono, MBA
Deputy Minister of Education and Religion
The Coordinating Ministry of People Welfare
Republic of Indonesia
Presented at
Regional Policy Seminar : Education Finance and Decentralization
Bangkok, Thailand, 3 – 5 November 2010

2. PROGRESS OF INDONESIA COMPETITIVENESS AND
THE ROLE OF EDUCATION
INDONESIAN EDUCATION PERFORMANCE
A
OUTLINE
2
EDUCATION DECENTRALIZATION IN INDONESIA
FUNDING ARRANGEMENT FOR
DECENTRALIZED EDUCATION
FUTURE OUTLOOKS OF
DECENTRALIZED EDUCATION IN INDONESIA
B
C
D
E

3. 3
PROGRESS OF INDONESIA
COMPETITIVENESS
AND THE ROLE OF EDUCATION
A

4. 4

5. 5
Country
2010-2011 2009-2010
rank score rank
Switzerland 1 5.63 1
Sweden 2 5.56 4
Singapore 3 5.48 3
United States 4 5.43 2
Japan 6 5.37 8
Malaysia 26 4.88 24
China 27 4.88 29
Brunei Darussalam 28 4.75 32
Thailand 38 4.51 36
Indonesia 44 4.43 54
India 51 4.33 49
Brazil 58 4.28 56
Vietnam 59 4.27 75
Source: The Global Competitiveness Report 2010-2011 , World Economic Forum.

6. 12 Competitiveness Indicators
6
Sumber: Global Competitiveness Index 2010-2011, WEF

7. 7
Source: The Global Competitiveness Report 2009-2010 and 2010-2011 , World Economic
Forum.

8. 2009-2010
2010-2011
8
Education sector have increased dramatically
during period 2009/2010-2010/2011. The good
progress in Education give significant
contribution to the increasement of indonesia
competitiveness
5.20
3.91
4.18
5.78
3.70
3.60

9. 9
Indicator
(12 Pillars)
2010-2011 2009-2010
score rank score rank
Basic Requirement 4.62 60 4.30 70
1st pillar: Institutions 3.98 61 4.00 58
2nd pillar: Infrastructure 3.56 82 3.20 84
3rd pillar: Macroeconomic environment 5.15 34 4.82 52
4th pillar: Health and primary education 5.78 62 5.20 82
Efficiency Enhancers 4.24 51 4.24 50
5th pillar: Higher education and training 4.15 66 3.91 69
6th pillar: Goods market efficiency 4.35 49 4.49 41
7th pillar: Labor market efficiency 4.23 84 4.30 75
8th pillar: Financial market development 4.23 62 4.30 61
9th pillar: Technological readiness 3.25 91 3.20 88
10th pillar: Market size 5.21 15 5.21 16
Innovation and sophistication factors 4.06 37 4.03 40
11th pillar: Business sophistication 4.40 37 4.49 40
12th pillar: Innovation 3.71 36 3.57 39
Indonesia Score and Ranking Progress for GCI Indicators
(12 Pillars) Years 2009-2010 / 2010-2011
Source: The Global Competitiveness Report 2009-2010 and 2010-2011 , World Economic
Forum.

10. 10
Indicator Rank
2010-2011
Rank
2009-2010
4th pillar: Health and Primary
Education
62 82
4.01 Business impact of malaria 106 97
4.02 Malaria incidence 111 105
4.03 Business impact of tuberculosis 102 92
4.04 Tuberculosis incidence 105 108
4.05 Business impact of HIV/AIDS 95 88
4.06 HIV prevalence 55 54
4.07 Infant mortality 97 85
4.08 Life expectancy 91 92
4.09 Quality of primary education 55 58
4.10 Primary education enrollment rate 52 56
Indonesia Ranking Progress for GCI Education
Indicators Years 2010-2011 / 2009-2010
Source: The Global Competitiveness Report 2009-2010 and 2010-2011 , World Economic
Forum

11. 11
Indicator Rank
2010-2011
Rank
2009-
2010
5th pillar: Higher Education and Training 66 69
5.01 Secondary education enrollment rate 95 93
5.02 Tertiary education enrollment rate 89 90
5.03 Quality of the education system 40 44
5.04 Quality of math and science education 46 50
5.05 Quality of management schools 55 51
5.06 Internet access in schools 50 59
5.07 Local availability of research and training
services
52 48
5.08 Extent of staff training 36 33
Source: The Global Competitiveness Report 2009-2010 and 2010-2011 , World Economic Forum.
Indonesia Ranking Progress for GCI Education
Indicators Years 2010-2011 / 2009-2010

12. 12
Indicator Rank
2010-2011
Rank
2009-
2010
12th pillar: Innovation 36 39
12.01 Capacity of innovation 30 44
12.02 Quality of scientific research institutions 44 43
12.03 Company spending on R&D 26 28
12.04 University-industry collaboration in R&D 38 43
12.05 Gov’t procurement of advanced tech
products
30 34
12.06 Availability of scientists and engineers 31 31
12.07 Utility patents per million population 89 87
Source: The Global Competitiveness Report 2009-2010 and 2010-2011 , World Economic Forum.
Indonesia Ranking Progress for GCI Education
Indicators Years 2010-2011 / 2009-2010

13. 13
INDONESIA EDUCATION
PERFORMANCE
B

14. BASIC FIGURES OF EDUCATION IN INDONESIA
(2008/2009)
LEVEL STUDENT SCHOOL TEACHER
Primary Education 29,498,266 165,755 1,687,371
Junior Secondary 10,961,492 39,160 876,936
Senior Secondary
Education
7,353,408 22,383 654,477
Higher Education 1,224,098 814 286,127
14
Source: Indonesia/Educational Statistics in Brief, 2008/200Source: Indonesia/Educational Statistics in Brief, 2008/20099

15. Performance Indicators of Primary
Schools (2009)
15
NO Performance Indicators Figures
1 Gross Enrollment Rate 117%
2 Net Enrollment Rate 95.2%
3 Student/Teacher Ratio 17 (13 s/d 33)
4 Drop outs 1.7%
5 Transition rate to Junior Secondary 90%
6 Percentage of Schools with Library 19%
7 Percentage of Schools with Computer
Facilities
10%
8 Percentage of Teacher with B.S. Degree 24.6%

16. Performance Indicators of Junior Secondary
Schools (2009)
16
No Performance Indicators Figures
1 Gross Enrollment Rate 98.3 %
2 Net Enrollment Rate 73.3 %
3 Student/Teacher Ratio 17 (13 s/d 33)
4 Drop outs 1.99 %
5 Transition rate to Senior Secondary 87.9 %
6 Percentage of Schools with Library 79.5 %
7 Percentage of Schools with Computer
Facilities
38.5 %
8 Percentage of Teacher with B.S. Degree 73.4%

17. Performance Indicators of Senior Secondary
Schools (2009)
17
No Performance Indicators Figures
1 Gross Enrollment Rate 69.6 %
2 Student/Teacher Ratio (General Senior
Secondary)
18 (12 s/d 29)
3 Student/Teacher Ratio (Vocational Senior
Secondary)
16 (12 s/d 28)
4 Drop outs 1.73 %
5 Percentage of General Secondary Schools with
Library
74.5 %
6 Percentage of Vocational Secondary
Schools with Library
61.7 %

18. Performance Indicators of Senior Secondary
Schools (2009)
18
No Performance Indicators Figures
7 Percentage of General Senior Secondary
Schools with Computer Facilities
47.8%
8 Percentage of Vocational Senior
Secondary Schools with Multi-media
Facilities
63.0 %
9 Percentage of General Secondary School
Teacher with B.S. Degree
85.8 %
10 Percentage of Vocational Secondart
School teacher with B.S. Degree
91.2 %

19. 19
NET ENROLLMENT RATE AT PRIMARY
SCHOOL (2009)
APM Nasional
=95,2

20. GROSS ENROLLMENT RATE AT JUNIOR
SECONDARY SCHOOL (2009)
APK Nasional
=98,1
20
National GER
=98,1

21. GROSS ENROLLMENT RATE AT SENIOR
SECONDARY SCHOOL (2009)
APK Nasional
=69,6
21
National GER
=69,6

22. 22
Rank Country Life
Expectancy
Literacy
(Age + 15
years old)
Enrolment
Rate
GDP per
capita
23 Singapura 80,2 94,4 87,3 49.704
30 Brunei
Darussalam
77,0 92,7 77,7 50.200
66 Malaysia 74,1 88,7 71,5 13.518
87 Thailand 68,7 92,6 78,0 8.135
105 Pilipina 71,6 92,6 79,6 3.406
111 Indonesia 70,5 90,4 68,2 3.712
116 Vietnam 74,3 90,3 62,3 2.600
137 Cambodia 60,6 73,6 58,5 1.802
138 Myanmar 61,2 89,9 56,3 904
Sumber: UNDP, Human Development Report 2008/2009
HDI Indicators for 2005 between SE Countries
(Human Development Report 2008/2009)

23. GROSS ENROLLMENT RATE AND NET
ENROLLMENT RATE
SUMBER: WORLD ECONOMIC FORUM
23
NER Primary
School
GER
University
GER
Secondary
School

24. 24
STUDENT-TEACHER RATIO IN INDONESIA
PRIMARY SCHOOLS JUNIOR SECONDARY SCHOOL
Source: Edstats database
14.81
17.1
18.92
19.56
20.29
20.68
21.05
24.65
30.64
30.77
31.26
34.93
41.33
56.24
0 10 20 30 40 50 60
US
UK
Malaysia
Japan
Indonesia
Thailand
China
Vietnam
Lao PDR
Mongolia
Korea, Rep.
Philippines
India
Cambodia
13.22
14.23
14.92
17.72
18.24
18.61
19.05
21.52
23.59
24.86
25.59
25.66
32.32
37.09
0 5 10 15 20 25 30 35 40
Japan
Indonesia
US
Malaysia
Korea, Rep.
China
UK
Mongolia
Cambodia
Thailand
Vietnam
Lao PDR
India
Philippines

25. 25
EDUCATION DECENTRALIZATION
IN INDONESIA
C

26. CENTRAL GOVT. PROVINCE GOVT. DISTRICT GOVT
Policy 1. Determining
Policies and
National
standards,
2. Disseminating
the Education
National
Standard
3. Monitoring the
International
School Standard
1. Disseminating the
Education National
Standards
2. Coordinating the
management and
implementation of
primary and
secondary education
3. Implementing and
monitoring the
International School
Standard
1. Ensuring the
implementation of
Education National
Standards
2. Managing and
Implementing the
Early Child
Education, Primary
Education and
Secondary
Education
3. Managing and
Impelementing the
‘’Primary School
International
Standadrs’’
DISTRIBUTION OF RESPONSIBILITY BETWEEN CENTRAL, PROVINCE,
AND DISTRICT GOVERNMENTS BASED ON GOVERNMENT
REGULATION N0. 38/2007
26

27. DISTRIBUTION OF RESPONSIBILITY BETWEEN CENTRAL, PROVINCE,
AND DISTRICT GOVERNMENTS BASED ON GOVERNMENT
REGULATION N0. 38/2007
27
CENTRAL GOVT. PROVINCE GOVT. DISTRICT GOVT
Financi
ng
1. Providing necessary
education budget as
mandated by the
national constitution
2. Determining the
guideline of
education finance
3. Providing the
financial support to
ensure the
implementation of
quality assurance
1. Providing the
financial
support and
grant to
districts
2. Providing the
additional
education
budget to
support
implementation
of secondary
schools –
international
standards
1. Providing and
managing the
education budget
to ensure the
achievement of
national goals and
targets
2. Providing the
additional budget
to ensure the free
basic education –
“BOS Daerah”

28. CENTRAL GOVT. PROVINCE GOVT. DISTRICT GOVT
Curriculu
m
1. Determining the
basic framework
and curriculum
structure
2. Determining the
curriculum
content
standard and
graduates
competency
standard
3. Coordinating/
controlling the
implementation
of curriculum
1. Coordinating/
controlling the
curriculum
development for
senior secondary
schools
2. Disseminating and
implementing the
curriculum content
and graduates
competency standard
3. Coordinating the
curriculum
implementation at
senior secondary
schools
1. Coordinating/
controlling the
curriculum
development for
primary schools
2. Disseminating and
implementing the
curriculum content
standard and
standard
competency of
graduates – primary
schools
DISTRIBUTION OF RESPONSIBILITY BETWEEN CENTRAL, PROVINCE,
AND DISTRICT GOVERNMENTS BASED ON GOVERNMENT
REGULATION N0. 38/2007
28

29. CENTRAL GOVT. PROVINCE GOVT. DISTRICT GOVT
Infra-
structure
1. Monitoring and
evaluating the
implementation and
the fulfillment of
Education National
Standard for school
infrastructures
2. Coordinating/
controlling aid for
school
infrastructures
3. Determining the
books standard –
especially the
contents
1. Monitoring the
implementation
and the fulfillment
of Education
National Standard
for secondary
schools
infrastructures
2. Coordinating/
controlling
aid/grant for
schools
infrastructures
3. Determining the
books standard of
senior secondary
schools
1. Monitoring and
evaluating the
implementation and
the fulfillment of
Education National
Standard for school
infrastructures for
early child, primary,
and secondary
education
2. Control of aid for
school
infrastructure
3. Determining
standard for books
of early child, and
primary schools
DISTRIBUTION OF RESPONSIBILITY BETWEEN CENTRAL, PROVINCE,
AND DISTRICT GOVERNMENTS BASED ON GOVERNMENT
REGULATION N0. 38/2007
29

30. CENTRAL GOVT. PROVINCE GOVT. DISTRICT GOVT
Teacher
and other
Educatio
n Staffs
1. Teachers power
planning and other
education staffs at
national level
2. Distribution of
teacher between
provinces
3. Managing the
schools teachers
pension funds
1. Coordinating the
planning of
teachers and staffs
at provincial level
and teacher of
International
Standard Schools
2. Distributing
teachers between
districts within
province
3. Monitoring the
certification of
teachers and
supporting the
capacity building
1. Managing the
schools principals,
supervisor and
teachers of early
child education,
primary schools as
well as secondary
schools
2. Distributing
teachers between
districts
3. Monitoring the
teachers’
performance and
conducting the
professional
developments
DISTRIBUTION OF RESPONSIBILITY BETWEEN CENTRAL, PROVINCE,
AND DISTRICT GOVERNMENTS BASED ON GOVERNMENT
REGULATION N0. 38/2007
30

31. CENTRAL GOVT. PROVINCE GOVT. DISTRICT GOVT
Quality
Control
1. Determining the
guidelines and passing
grade of national exams.
2. Conducting the national
exam for junior and
senior secondary
schools
3. Developing the
guideline of education
evaluation and
implementation of the
Education National
Standards
4. Determining the
guideline of schools
accreditation that will
be used by
independence
accreditation body
1. Providing support
and evaluating the
national exam with
the central
government
2. Ensuring the
implementation of the
education evaluation
and the Education
National Standard at
provincial level
3. Providing necessary
support for
accreditation of
primary and
secondary schools
1. Conducting the national
exam under supervisor
of central and provincial
government
2. Coordinating,
monitoring and
evaluating the national
exam
3. Implementing the
Education National
Standard at district level
4. Supporting the
accreditation of non-
formal and informal
education
DISTRIBUTION OF RESPONSIBILITY BETWEEN CENTRAL, PROVINCE,
AND DISTRICT GOVERNMENTS BASED ON GOVERNMENT
REGULATION N0. 38/2007
31

32. RESPONSIBILITY DISTRIBUTION BETWEEN CENTRAL GOVERNMENT AND LOCAL GOVERNMENT
IN EDUCATION FINANCING (PP 48/2008)
No COST TYPE
RESPONSIBLE GOVERNMENT LEVEL
BASIC EDUCATION SENIOR SECONDARY AND
HIGHER EDUCATIOJN
I Investment Cost for Schools
1. Investment cost for Land
a. National Standard School Central Government/Local Government
b. International Standard School Central Government/Local Govt./Community/Foreign Aid
2. Investment Cost for Infrastructures
a. National Standard School Central Govt./Local Govt. Central Govt./Local Govt.
/Community
b. International Standard School Central Government/Local Govt./Community/Foreign Aid
II Investment cost for Education Organization and
Management
1. Investment cost for lands Central Govt./Local Govt.
2. Other costs Central Govt./Local Govt.
III Operational Costs within Schools
1. Personal Cost
a. National Standard School Central Govt./Local Govt.
b. International Standard School Central Government/Local Govt./Community/Foreign Aid
2. Non personal Cost
a. National Standard School Central Govt./Local Govt. Central Govt./Local
Govt./Community
b. International Standard School Central Government/Local Govt./Community/Foreign Aid
IV Operational Cost for Education Organization and
Management
1. Personal Cost Central Govt./Local Govt.
2. Non personal Cost Central Govt./Local Govt.
V Aid for Education Cost and Scholarship Central Govt./Local Govt.
VI Education Cost Abroad Central Govt.
32

33. FINANCING RESPONSIBILITIES ALIGNMENT
BETWEEN CENTRAL, PROVINCIAL, AND DISTRICT
GOVERNMENTS
ASPECT OF
RESPONSIBILIT
Y
FINANCING BY
CENTRAL GOV PROVINCIAL
GOV
DISTRICT GOV
POLICY   
FINANCING   
CURRICULUM   
INFRASTRUCTUR
E
  
TEACHER &
OTHER
EDUCATION
PERSONNEL
  
QUALITY
CONTROL
  
33

34. 34
 Improving the school management – more
accountable with the implementation of School
Based Management
 Increasing the community participation through
the establishment of Education Board (at
Province and District levels) and School
Committees (at School level)
 Increasing the involvement of industry and
business community in education through the
Corporate Social Responsibility (CSR) program
BENEFITS OF DECENTRALIZATION

35. 35
 Lack of alignment between responsibilities and
provision of finance served by Central Government,
Provincial Government, and District Governments
 Insufficient capacity of education leadership and
staffs in Province and District Education Offices,
especially in the area of the Education National
Standard
 Uncertain career development of education staffs in
Province and District Education Offices due to the
high mobility/transfer of personnel among local
government offices. Those who close to the
“Bupati/Wali Kota” most likely will be promoted.
MAJOR ISSUES IN EDUCATION
DECENTRALIZATION

36. 36
FUNDING ARRANGEMENT FOR
DECENTRALISED EDUCATION
D

37. PLANNING AND BUDGETING REFORM
Unified Budget
• Integrating the Routine Budget and Development Budget
• Each Echelon I (Deputy Minister) only has one program and
Echelon II (Asst Deputy or Director) maximum has two
“activities”
Medium Term Expenditure Framework (MTEF)
• All Ministries have to estimate the 5 years budget based on the
strategic plan.
• The Ministry of Finance estimate the resource envelope necessary
to support the national program
Performance Based Budgeting (PBB)
• All Ministries have to implement the performance based
budgeting – define clear outcome and out put
• Accountability for each level of management
Gender Responsive Budgeting
• Clear budget allocation based on gender in the broad sense
37

38. POLITICAL WILL AND FINANCIAL SUPPORT
38
• Constitution*
• Every citizen is entitle to education
• Every citizen should enroll in basic education and the
government should provide sufficient funds (art 31:2)
Law 20/2003 on National Education System
• The national government, local government, and
community share the education funding
responsibility (art 46:1)
• Education funds** was allocated at a minimum of
20% of national government budget
20% of local government budget (art 49:1)
* IVth
amendment of the 1945 Constitution
** Excluding salary of educators & service expenditure

39. 39
CENTRAL GOVERNMENT BUDGET FOR
EDUCATION
2010 * 2011 ** 2012 2013 2014
A. Alokasi Pemerintah Pusat 96.480,30 84.175,44 110.852,40 122.595,29 137.730,76
1. Kementerian Pendidikan Nasional 62.393,30 50.348,75 72.008,56 80.838,16 92.633,06
2. Kementerian Agama 26.326,60 26.263,22 30.000,48 32.250,51 34.830,55
3. 14 K/L Lainnya 7.760,40 5.400,12 8.843,36 9.506,62 10.267,15
4. Bagian Anggaran 999 - 2.163,35
B. Transfer Ke Daerah 127.749,10 156.600,62 161.594,46 180.214,91 201.891,29
1. DBH Pendidikan 748,50 745,13 777,39 873,30 988,43
2. DAK Pendidikan 9.334,90 10.041,30 12.692,58 12.057,95 11.455,05
3. DAU Pendidikan 95.923,10 104.106,75 113.855,56 125.241,11 137.765,22
a. Non Gaji 11.365,70 11.093,65 11.541,10 12.695,21 13.964,73
b. Gaji 84.557,40 93.013,10 102.314,45 112.545,90 123.800,49
4. Tambahan Penghasilan untuk Guru PNSD 5.800,00 3.696,18 8.015,61 8.047,67 8.079,86
5. Tambahan DAU Untuk Tunjangan Profesi Guru 10.994,90 17.148,98 23.722,39 31.350,05 40.830,93
6. Dana Otonomi Khusus Pendidikan 2.309,90 2.662,47 2.530,94 2.644,84 2.771,79
7. Dana Insentif Daerah 1.387,80 1.387,80
8. Dana Percepatan Pembangunan Infrastruktur
Pendidikan (DPPIP)
1.250,00
9. Bantuan Operasional Sekolah 16.812,01
C. Dana Pengembangan Pendidikan Nasional 1.000,00 2.500,00
Anggaran Fungsi Pendidikan (A + B + C) 225.229,40 243.276,06 272.446,86 302.810,20 339.622,04
APBN 1.126.146,50 1.202.046,21 1.319.999,80 1.482.854,77 1.678.354,34
Persentase Anggaran Fungsi Pendidikan 20,0% 20,2% 20,0% 20,0% 20,0%
Anggaran Fungsi Pendidikan (20%) 225.229,30 243.276,06 263.999,96 296.570,95 335.670,87
PERTUMBUHAN EKONOMI 5,5% 6,5% 7,0% 7,5% 8,0%
INFLASI 5,1% 5,3% 5,0% 4,5% 4,8%
CATATAN: Perkiraan Dana Fungsi Pendidikan tahun 2012-2014 merupakan angka perkiraan (baseline)
*) Merupakan APBNP tahun 2010
**) Bersumber dari Nota keuangan RUU APBN 2011, gaji guru dihitung naik sebesar 10%
Anggaran (RpMilyar)
Komponen Anggaran Fungsi Pendidikan

40. 40
 The percentage of education budget provided by the
Provincial Government tends to decline due to limited
authority
 The percentage of education budget provided by the
District Governments remain stagnant and even
declining – most of the district “already allocated”
above 20%, just using the transfer from central
government
 The School teacher’s salary and allowance consume
approximately 60% of the national budget
 Budget for improving the access and quality of
education mostly coming from the central government
GOVERNMENT EDUCATION FINANCING IN
DECENTRALIZATION ERA

41. 45.0
74.8 86.5 95.6
117.7 126.433.4
48.2
55.7
58.6
90.6 83.2
13.9
17.6
18.9
15.6
20.8 20.0
0
5
10
15
20
0.0
50.0
100.0
150.0
200.0
250.0
2005 2006 2007 2008 2009 2010
Transfer Ke Daerah BelanjaPemerintah Pusat Persentase TerhadapBelanjaNegara
MONE 25,8T 40,4T 43,3T 45,8T 62.4T 54,9T

42. 42
District s receive the 83 % of routine budget, the majority of it
(96 %) was used for teachers salary
 Districts alocate only 12% from their Education Budget for
Infrastructures
Province
Central
District
Other routine
expenditures
Teacher
Salary
Composition of Budget Allocation

43. Persentage of Education Budget againts Total Budget
at District Level
43
33,5
30,4
36,2
36,6
29,129,129,1
28,3
33,3
15
20
25
30
35
40
2001 2002 2003 2004 2005 2006 2007 2008* 2009**

44. 44
a. School Operational Assistance (Bantuan
Operasional Sekolah - BOS).
b. Operational Assistance for Quality Management
(Biaya Operasional Manajemen Mutu – BOMM)
c. Scholarship for Students from Poor Families
d. Teacher/Lecturer Profession Grant
e. Books for all student
f. Scholarship for higher degree
BREAKTHROUGHS IN FUNDS DELIVERY TO
SCHOOLS, STUDENTS, AND TEACHERS

45. 45
SOME FOREIGN ASSISTANCES IN
EDUCATION DECENTRALIZATION
a. Basic Education Projects in West Java, Eastern
Islands, and Sumatera (World Bank Loans)
b. Decentralized Basic Education Project (Asian
Development Bank Loan)
c. Australia-Indonesia Basic Education Project -
AIBEP(Australian Government,)
d. Capacity Building for Decentralized Social Service
Delivery (ADB)
e. Decentralized Basic Education Project (USAID)
f. Education Sector Support Program (EC and
AusAID)
g. Community Participation in Strategic Education
Planning for School Improvement (JICA)

46. 46
FUTURE OUTLOOKS OF
DECENTRALIZED EDUCATION IN
INDONESIA
E

47. 47
NEW POLICY INITIATIVES FOR 2011
1. Establishment of the Education Committee
Chaired by Vice President of the Republic of
Indonesia
2. Transfers of responsibility of BOS delivery from
the Central Government to the District
Governments
3. Completion of school rehabilitation (Primary and
Junior Secondary Schools)
4. Acceleration of teacher certification
5. Transfer the payment of teachers’ incentive to the
District Governments, including the monitoring
of teachers’ performance.

48. PRIORITY OF EDUCATION BUDGET
ADMINISTERED BY MONE 2011
1. Increasing the access and quality of early child
education
2. Accelerating the completion of nine years universal
basic education
3. Improving the quality of vocational education
4. Accelerating and improving the degree program –
academic qualification of teachers, teacher
certification, and development of special education
for teacher
5. Accelerating the doctorate degree program for
faculty members
48

49. The Challenges
1. The alignment of planning, between central
government, provincial and district to attain the
national goals
2. Coordinating and monitoring mechanism among
several supervision bodies/institution
3. Maintaining the education budget’s disbursement –
economics engine and multiplier effect for
sustainable development
4. Ensuring the high quality and the effectiveness of
education-budget spending – decentralization the
authority of planning and budgeting.
49

50. 50