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You are here: Home / cat / Why Indonesia Needs Education Budget Reform to Improve Quality and Equity

Why Indonesia Needs Education Budget Reform to Improve Quality and Equity

Dated: January 23, 2026

Indonesia deserves recognition for making education a constitutional priority. This commitment reflects an understanding that education is not simply one sector of development, but the foundation of human development, democracy, and citizenship. Yet despite strong state attention, a critical question remains unanswered: how far has education budget policy truly addressed the persistent challenges of quality and equity in the education system?

Focusing solely on the size of the education budget is not enough to measure its effectiveness. The core issue lies in the policy approach, which continues to rely on a uniform, formula-based calculation of “educational functions” rather than responding to the real needs of students and educational institutions. Compounding this problem, education funding is distributed across multiple ministries and institutions with varying mandates, including civil service education and training. This fragmentation dilutes the budget’s focus and weakens its overall impact on national education quality.

The consequences are clearly visible at the school and university levels. Many educational institutions lack adequate facilities, access to technology, and sufficient learning support. Regional disparities in education quality remain largely unresolved, with schools in remote and disadvantaged areas struggling to meet national standards. Existing policies and budget allocations have not fully responded to the specific challenges faced by these regions.

Teachers sit at the heart of this issue. As the primary drivers of learning, teachers should be central to education budget policy. However, many continue to face welfare concerns, insecure employment conditions, and limited opportunities for continuous professional development. Heavy administrative workloads further drain teachers’ time and energy, reducing their focus on teaching and learning. Without targeted budget support for educators, sustainable transformation of the education system remains unrealistic.

Similar challenges persist in higher education. Inappropriate budget allocations have increased the financial burden on students, threatening the principle of education as a fundamental right and widening inequalities in access, particularly for disadvantaged groups. Ironically, this also affects the future supply of educators, including prospective teachers and lecturers, who should receive full state support.

Against this backdrop, the Association of Teachers of the Republic of Indonesia (PGRI) has reaffirmed its commitment to advocating for a more equitable, effective, and quality-oriented education budget. The organisation believes that education funding must return to its core purpose: ensuring inclusive, high-quality, and equitable public education for all.

In line with this vision, PGRI has joined the global Education International Go Public! Fund Education campaign, bringing this international movement to Indonesia. The campaign underscores that education funding is a government responsibility and a shared global commitment, not a burden to be shifted onto individuals or families. Quality education can only be achieved when governments treat education as a long-term public investment, prioritising strong public schools, educator welfare, and equal access for every citizen.

Education budget reform is therefore urgent. A comprehensive evaluation is needed to ensure that funding allocations genuinely address fundamental educational needs. Priority must be given to institutions directly involved in delivering education, with a focus on improving learning quality, strengthening the professionalism of teachers and lecturers, and guaranteeing equal access. Ending budget fragmentation through clearer coordination and policy alignment is essential to improve effectiveness.

This reform must also be embedded within the broader national policy framework. Indonesia’s National Education System Law guarantees every citizen the right to quality education, while national development goals place education at the centre of efforts to build strong human resources for the future.

PGRI has consistently demonstrated its role as a constructive and reliable partner for policymakers committed to improving education quality. Through sustained social and policy dialogue, tangible progress has been achieved, including the conversion of up to one million contract teachers into secure permanent positions. To date, 700,000 teachers have gained access to professional education programmes that enable certification and improved benefits.

This dialogue must continue. PGRI stands ready to work alongside policymakers to ensure that education budget reform delivers real impact, strengthening effectiveness and achieving quality and equity for all students across Indonesia.

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