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Education decentralisation indonesian experiences 20 oct 2010

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  • Indonesia has efficiency issues, including leakage and inefficient flow of funds. The GDS finance module indicates that 1/3 of all funds do not reach schools Excess Supply of Teachers Indonesia has one of the lowest student-teacher ratios (STR) in the region This creates significant financial burden on the system as 78% of overall routine budget for primary and secondary education is spent on salaries of teachers In evaluating the financial impact of this oversupply, only taking into account primary and secondary schools, the estimated 21% oversupply creates a cost burden of 5.7 trillion Rp or ~ 10% of total education spending

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  • 1. EDUCATION FINANCE AND DECENTRALIZATION : Indonesian Experiences 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 EDUCATION DECENTRALIZATION IN INDONESIA FUNDING ARRANGEMENT FOR DECENTRALIZED EDUCATION FUTURE OUTLOOKS OF DECENTRALIZED EDUCATION IN INDONESIA B C D E
  • 3. PROGRESS OF INDONESIA COMPETITIVENESS AND THE ROLE OF EDUCATION A
  • 4.
  • 5. Source: The Global Competitiveness Report 20 10 -2011 , World Economic Forum. 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
  • 6. 12 Competitiveness Indicators Sumber: Global Competitiveness Index 2010-2011, WEF
  • 7. Source: The Global Competitiveness Report 2009-2010 and 20 10 -2011 , World Economic Forum.
  • 8. 2009-2010 2010-2011 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. Indonesia Score and Ranking Progress for GCI Indi c ator s ( 12 Pillars) Years 2009-2010 / 2010-2011 Source: The Global Competitiveness Report 2009-2010 and 20 10 -2011 , World Economic Forum. 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
  • 10. Indonesia Ranking Progress for GCI Education Indicators Years 2010-2011 / 2009-2010 Source: The Global Competitiveness Report 2009-2010 and 20 10 -2011 , World Economic Forum 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
  • 11. Source: The Global Competitiveness Report 2009-2010 and 20 10 -2011 , World Economic Forum. Indonesia Ranking Progress for GCI Education Indicators Years 2010-2011 / 2009-2010 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
  • 12. Source: The Global Competitiveness Report 2009-2010 and 20 10 -2011 , World Economic Forum. Indonesia Ranking Progress for GCI Education Indicators Years 2010-2011 / 2009-2010 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
  • 13. INDONESIA EDUCATION PERFORMANCE B
  • 14. BASIC FIGURES OF EDUCATION IN INDONESIA (2008/2009) Source: Indonesia/Educational Statistics in Brief, 2008/200 9 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
  • 15. Performance Indicators of Primary Schools (2009) N O 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) 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) 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) 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. NET ENROLLMENT RATE AT PRIMARY SCHOOL (2009)
  • 20. GROSS ENROLLMENT RATE AT JUNIOR SECONDARY SCHOOL (2009) National GER =98,1
  • 21. GROSS ENROLLMENT RATE AT SENIOR SECONDARY SCHOOL (2009) National GER =69,6
  • 22. Sumber: UNDP, Human Development Report 200 8 /200 9 HDI Indicators for 2005 between SE Countries (Human Development Report 2008/2009) 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
  • 23. GROSS ENROLLMENT RATE AND NET ENROLLMENT RATE NER Primary School GER University GER Secondary School SUMBER: WORLD ECONOMIC FORUM
  • 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. EDUCATION DECENTRALIZATION IN INDONESIA C
  • 26. DISTRIBUTION OF RESPONSIBILITY BETWEEN CENTRAL, PROVINCE, AND DISTRICT GOVERNMENTS BASED ON GOVERNMENT REGULATION N0. 38/2007 CENTRAL GOVT. PROVINCE GOVT. DISTRICT GOVT Policy
    • Determining Policies and National standards,
    • Disseminating the Education National Standard
    • Monitoring the International School Standard
    • Disseminating the Education National Standards
    • Coordinating the management and implementation of primary and secondary education
    • Implementing and monitoring the International School Standard
    • Ensuring the implementation of Education National Standards
    • Managing and Implementing the Early Child Education, Primary Education and Secondary Education
    • Managing and Impelementing the ‘’Primary School International Standadrs’’
  • 27. DISTRIBUTION OF RESPONSIBILITY BETWEEN CENTRAL, PROVINCE, AND DISTRICT GOVERNMENTS BASED ON GOVERNMENT REGULATION N0. 38/2007 CENTRAL GOVT. PROVINCE GOVT. DISTRICT GOVT Financing
    • Providing necessary education budget as mandated by the national constitution
    • Determining the guideline of education finance
    • Providing the financial support to ensure the implementation of quality assurance
    • Providing the financial support and grant to districts
    • Providing the additional education budget to support implementation of secondary schools – international standards
    • Providing and managing the education budget to ensure the achievement of national goals and targets
    • Providing the additional budget to ensure the free basic education – “BOS Daerah”
  • 28. DISTRIBUTION OF RESPONSIBILITY BETWEEN CENTRAL, PROVINCE, AND DISTRICT GOVERNMENTS BASED ON GOVERNMENT REGULATION N0. 38/2007 CENTRAL GOVT. PROVINCE GOVT. DISTRICT GOVT Curriculum
    • Determining the basic framework and curriculum structure
    • Determining the curriculum content standard and graduates competency standard
    • Coordinating/ controlling the implementation of curriculum
    • Coordinating/ controlling the curriculum development for senior secondary schools
    • Disseminating and implementing the curriculum content and graduates competency standard
    • Coordinating the curriculum implementation at senior secondary schools
    • Coordinating/ controlling the curriculum development for primary schools
    • Disseminating and implementing the curriculum content standard and standard competency of graduates – primary schools
  • 29. DISTRIBUTION OF RESPONSIBILITY BETWEEN CENTRAL, PROVINCE, AND DISTRICT GOVERNMENTS BASED ON GOVERNMENT REGULATION N0. 38/2007 CENTRAL GOVT. PROVINCE GOVT. DISTRICT GOVT Infra-structure
    • Monitoring and evaluating the implementation and the fulfillment of Education National Standard for school infrastructures
    • Coordinating/ controlling aid for school infrastructures
    • Determining the books standard – especially the contents
    • Monitoring the implementation and the fulfillment of Education National Standard for secondary schools infrastructures
    • Coordinating/ controlling aid/grant for schools infrastructures
    • Determining the books standard of senior secondary schools
    • Monitoring and evaluating the implementation and the fulfillment of Education National Standard for school infrastructures for early child, primary, and secondary education
    • Control of aid for school infrastructure
    • Determining standard for books of early child, and primary schools
  • 30. DISTRIBUTION OF RESPONSIBILITY BETWEEN CENTRAL, PROVINCE, AND DISTRICT GOVERNMENTS BASED ON GOVERNMENT REGULATION N0. 38/2007 CENTRAL GOVT. PROVINCE GOVT. DISTRICT GOVT Teacher and other Education Staffs
    • Teachers power planning and other education staffs at national level
    • Distribution of teacher between provinces
    • Managing the schools teachers pension funds
    • Coordinating the planning of teachers and staffs at provincial level and teacher of International Standard Schools
    • Distributing teachers between districts within province
    • Monitoring the certification of teachers and supporting the capacity building
    • Managing the schools principals, supervisor and teachers of early child education, primary schools as well as secondary schools
    • Distributing teachers between districts
    • Monitoring the teachers’ performance and conducting the professional developments
  • 31. DISTRIBUTION OF RESPONSIBILITY BETWEEN CENTRAL, PROVINCE, AND DISTRICT GOVERNMENTS BASED ON GOVERNMENT REGULATION N0. 38/2007 CENTRAL GOVT. PROVINCE GOVT. DISTRICT GOVT Quality Control
    • Determining the guidelines and passing grade of national exams.
    • Conducting the national exam for junior and senior secondary schools
    • Developing the guideline of education evaluation and implementation of the Education National Standards
    • Determining the guideline of schools accreditation that will be used by independence accreditation body
    • Providing support and evaluating the national exam with the central government
    • Ensuring the implementation of the education evaluation and the Education National Standard at provincial level
    • Providing necessary support for accreditation of primary and secondary schools
    • Conducting the national exam under supervisor of central and provincial government
    • Coordinating, monitoring and evaluating the national exam
    • Implementing the Education National Standard at district level
    • Supporting the accreditation of non-formal and informal education
  • 32.
  • 33. FINANCING RESPONSIBILITIES ALIGNMENT BETWEEN CENTRAL, PROVINCIAL, AND DISTRICT GOVERNMENTS ASPECT OF RESPONSIBILITY FINANCING BY CENTRAL GOV PROVINCIAL GOV DISTRICT GOV POLICY    FINANCING    CURRICULUM    INFRASTRUCTURE    TEACHER & OTHER EDUCATION PERSONNEL    QUALITY CONTROL   
  • 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.
    • 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. 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
  • 38. POLITICAL WILL AND FINANCIAL SUPPORT
    • 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)
    • * IV th amendment of the 1945 Constitution
    • ** Excluding salary of educators & service expenditure
  • 39. CENTRAL GOVERNMENT BUDGET FOR EDUCATION
  • 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. MONE 25,8T 40,4T 43,3T 45,8T 62.4T 54,9T
  • 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
    Provin ce Central District Other routine expenditures Teacher Salary Composition of Budget Allocation
  • 43. Persentage of Education Budget againts Total Budget at District Level
  • 44.
    • School Operational Assistance (Bantuan Operasional Sekolah - BOS).
    • Operational Assistance for Quality Management (Biaya Operasional Manajemen Mutu – BOMM)
    • Scholarship for Students from Poor Families
    • Teacher/Lecturer Profession Grant
    • Books for all student
    • Scholarship for higher degree
    BREAKTHROUGHS IN FUNDS DELIVERY TO SCHOOLS, STUDENTS, AND TEACHERS
  • 45. SOME FOREIGN ASSISTANCES IN EDUCATION DECENTRALIZATION
    • Basic Education Projects in West Java, Eastern Islands, and Sumatera (World Bank Loans)
    • Decentralized Basic Education Project (Asian Development Bank Loan)
    • Australia-Indonesia Basic Education Project - AIBEP(Australian Government,)
    • Capacity Building for Decentralized Social Service Delivery (ADB)
    • Decentralized Basic Education Project (USAID)
    • Education Sector Support Program (EC and AusAID)
    • Community Participation in Strategic Education Planning for School Improvement (JICA)
  • 46. FUTURE OUTLOOKS OF DECENTRALIZED EDUCATION IN INDONESIA E
  • 47. NEW POLICY INITIATIVES FOR 2011
    • Establishment of the Education Committee Chaired by Vice President of the Republic of Indonesia
    • Transfers of responsibility of BOS delivery from the Central Government to the District Governments
    • Completion of school rehabilitation (Primary and Junior Secondary Schools)
    • Acceleration of teacher certification
    • 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
    • Increasing the access and quality of early child education
    • Accelerating the completion of nine years universal basic education
    • Improving the quality of vocational education
    • Accelerating and improving the degree program – academic qualification of teachers, teacher certification, and development of special education for teacher
    • Accelerating the doctorate degree program for faculty members
  • 49. The Challenges
    • The alignment of planning, between central government, provincial and district to attain the national goals
    • Coordinating and monitoring mechanism among several supervision bodies/institution
    • Maintaining the education budget’s disbursement – economics engine and multiplier effect for sustainable development
    • Ensuring the high quality and the effectiveness of education-budget spending – decentralization the authority of planning and budgeting.