1) Indonesia has a large and diverse population of over 238 million people spread across its over 17,000 islands. 2) Higher education in Indonesia has expanded greatly since independence, with literacy rates rising from 5% in 1945 to 94% in 2010 and the number of university students increasing from under 2,000 to nearly 5 million in that period. 3) This expansion of education has contributed to the growth of a new middle class in Indonesia, which has increased from 2.5 million people in 1970 to over 100 million people in 2010.

1. Higher Education as
Instrument for Structural
Change in Indonesia
March 16, 2012
By Anies Baswedan
Presented for USINDO

2. Page  2
Brief Info
• Population of more than 238 million people (2010).
• More than 300 ethnic groups.
• More than 700 living/spoken languages.
• Consists of 17,508 islands, about 5,000 of which are inhabited
(5 of 10 world’s largest islands are in Indonesia)
• 54,716 km coastline, 2nd longest in the world (after Canada)
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Geographical Comparison
USA and Indonesia

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• The 2nd largest coal exporter;
• The largest Crude Palm Oil exporter (CPO is the material for bio-
fuel, an energy alternative of the future);
• The largest tin exporter;
• One of the largest gas exporters;
• One of the largest copper exporters;
• More than half of the world's merchant fleet capacity sails through
the straits of Malacca, strait of Sunda, and strait of Lombok.
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Overlooked…..

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• The 4th largest population (after China, India, and the US);
• The 3rd largest democracy (after India and the US);
• The largest Moslem Population ; (yet it is a non-religious
based state: Pancasila)
• The 2nd largest biodiversity (after Brazil), home for 20% of
world flora and fauna, 17% of world bird species, 25% of
fish species;
• The 3rd largest tropical forest country;
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Overlooked…..

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Source: UNDP, UNESCO
Progress in Indonesian Education
Achievement in Literacy Rate
Source: BAPPENAS, Laporan Repelita, BPS
5% 10%
47%
60%
67%
82%
90% 94%
1945 1950 1961 1970 1980 1990 2004 2010
Literacy Rate
5%
12% 15%
92%
66% 66%
Indonesia India Egypt
1947 19371945

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1945 1968 1980 1990 2010
Elementary School 15,000 63,100 95,000s 136,600 165,491
Middle School 322 5,891 12,000s 18,000s 43,888
High-Vocational School 92 731 6,000s 11,000s 25,332
University (state & private) 5 39 1,000 1,200 3,585
Number of Institutions
Number of Students (in thousand)
1945 1968 1980 1990 2010
Elementary School 2,500 12,300 21,166 26,528 30,340
Middle School 90 1,150 2,983 5,853 11,770
High-Vocational School 19 482 1,574 4,031 8,180
University (state & private) < 2 156 425 1,621 4,890
State of Education: 1945 - 2010

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In the past 4 decades,
the number of Indonesian
Middle-income has grown
significantly
Source: Statistical Bureau of Indonesia and Asian Development
Bank (analyzed and estimated)
2.5
10.2
32
51
103
0
20
40
60
80
100
120
1970 1980 1990 2000 2010
MillionpeopleGrowth of Indonesian Middle-Income

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Number of University Students
Pendaftaran untuktertiary,Indonesia
Jumlah
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
1970 2008

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1950's
Government
established High
School in Every
District (+/- 150
districts)
1960's
Significant jump in
the number of
university students
coming from the
common people
1970's
University graduates
entering job market
in a fast developing
economy of Indonesia
1980's
Emergence of Indonesian
1st generation of new
middle class, coming from
all level of the society.
Pengerahan Tenaga Mahasiswa Started
(Student Mobilization Program)
8
Students volunteered to serve as
high school teacher (2 year)
1952
Number of students serving as high-
school teacher
1,418
161 Number of districts served by students
1962
Emergence of New Middle Class

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Demographic Bonus
Source: Ministry of Coordinator for Economic Affairs
Demographic Bonus: A Challenge for Indonesia

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Facility and Infrastructure of Education
Primary
Junior
Secondary
Senior
Secondary
Higher
Education
Student
(million)
30,34 11,77 8,18 4,89
Teachers
(thousand)
1.876 902 719 263
Number of
Schools
165.491 43.888 25.332 3.585
Source: Ministry of Education and Culture

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5.3
4.4
4.0
3.4
2.9
2.2
1.1
0.8
Primary Junior
Secondary
Senior
Secondary
Higher
Education
In
Out
In
Out
In
Out In
Out
Source: Ministry of Education and Culture
Number of Students: Entrance and Graduates

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Access To Higher Education Has Expanded
But Remains Unequal
Gross enrollment rates by economic quintiles, 2008
Percent
93
3
95
5
97
8
98
13
31
Q1-Bottom 20%
Higher/TertiaryPrimary
Q5-Top 20%
Q4
Q3-Middle 20%
Q2
SOURCE: UNESCO “Higher Education in South-East Asia”

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790
363
322
329
198
7
209
5
6
13
9
11
161
8
10
2
4
335
7751
4
4
36 60
Public
Private
SOURCE: Ministry of Education and Culture, 2010
Unequal Distribution of Higher Education Institutions

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Country
Number of Researcher
in A Million Population
Research Budget to GDP
Ratio
Indonesia 90 0,08
Malaysia 365 0,63
Singapore 5.834 2,66
Thailand 316 0,21
India 136 0,76
China 1.999 1,47
South Korea 4.947 3,36
Japan 5.189 3,45
SOURCE: UNESCO Institute of Statistics
Number of Researcher Per A Million Population

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Rich
Poor
High
Scores
Low
Scores
OK
???X
OK
Socio-Economic Background Determines
Prospect For Getting Higher Education