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World Bank and Education in Indonesia


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Better Indonesian Students through Autonomous and Accountable Schools
The World Bank is supporting Indonesia to better implement school-based management, making schools more transparent and with more autonomy to bring better student performance..
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Indicators in Indonesia (Figures show the most recent available data and the year)

Most Recent Data


Net enrolment rate. Primary. Total



Net enrolment rate. Primary. Total



Net enrolment rate. Secondary. All programmes. Total



Gross enrolment ratio. Tertiary (ISCED 5 and 6). Total



Gross intake ratio. Primary. Total



Out-of-school children. Primary. Total



Gender parity index for gross enrolment ratio. Primary



Percentage of repeaters in primary. All grades. Total



Primary completion rate, total (% of relevant age group)



Percentage of private enrolment. Primary.



Drop-out rate. Primary. Total



Pupil-teacher ratio. Primary



Pupil-teacher ratio. Secondary



Percentage of repeaters in secondary. All grades. Total



Technical/vocational enrolment in secondary (ISCED 2 and 3)
as % of total secondary enrolment (ISCED 2 and 3)



School life expectancy (years). Primary to tertiary. Total



Youth literacy rate (%). Total



Public expenditure on education as % of GDP



Public expenditure on education as % of total
government expenditure




The Indonesian school system is immense and diverse. With over 50 million students and 2.6 million teachers in more than 250,000 schools, it is the third largest education system in the Asia region and the fourth largest in the world (behind only China, India and the United States). Two ministries are responsible for managing the education system, with 84 percent of schools under the Ministry of National Education (MoNE) and the remaining 16 percent under the Ministry of Religious Affairs (MoRA). Private schools play an important role. While only 7 percent of primary schools are private, the shares increase to 56 percent in junior secondary and 67 percent in senior secondary.

Primary school net enrollment rates are below 60% in poor districts compared to more well-off districts that have universal enrollment. Net enrollment rates for secondary education have experienced a steady climb (currently 66% in Junior Secondary and 45% in Senior Secondary) but are still low compared to other countries in the region. Indonesia is also trailing behind its neighbors in Early Childhood Education and Higher Education, with gross enrollment rates of 21% and 11.5% respectively.

Education is central to the Indonesian Government’s development agenda. Education spending has increased significantly in the years since the economic crisis. In real terms, education spending doubled between 2000 and 2006. In 2007, spending on education was more than for any other sector, reaching an equivalent US$14 billion equivalent, or more than 16 percent of total government expenditure. As a share of GDP (3.4 percent) this is comparable to other similar countries.

The Law on National Education (No.20/2003) and the Constitution Amendment III emphasize that all Indonesian citizens have the right to education; that the Government has an obligation to finance basic education without charging fees; and that the Government is mandated to allocate 20% of its expenditure on education. The Teacher Law (No. 14/2005) introduced important changes to the employment conditions and requirements for the certification of teachers, aiming at improving education quality. The Ministry of Education’s strategic plan for 2005-2009 has three main pillars:

  1. Increased access to education;
  2. Improved education quality; and
  3. Better governance of the education sector.

In 2005 the Government launched a massive program called BOS (Biaya Operasional Sekolah, or School Operations Fund), as a way of injecting funds directly into schools in order to keep children in school and give schools some flexibility in managing their own funds. Supporting this and the decentralization effort in general, the Government has moved to anchor the principles of School-Based Management (SBM) in the national education system and also to provide a framework of National Standards for Education.

The education team at the World Bank focuses on supporting the Ministry of National Education’s Strategic Plan (RENSTRA)
Starting with the 2005-2009 RENSTRA, the Bank has developed a broad portfolio of support to the key programs identified by the Ministry as needing additional support. The Thematic Education Dialogue led by Bappenas (a forum for Government and development partners to discuss sector issues at a policy level) provides a steer to the Bank and development partners on areas of focus for future support. It is currently leading an Education Sector Assessment which will provide the analytical base for strategic decisions on directions for the 2010-2014 RENSTRA, which development partners will use as a frame for future support.

The World Bank’s program will effectively bridge the 2005-9 and 2010 RENSTRA programs with its ongoing and pipeline portfolio of investment loans, Trust Funds, and analytical work on behalf of the Ministry, providing comprehensive support to the work of the Directorates General in the areas of teacher quality, basic education, higher education, and early childhood development.

The Education Cluster project portfolio comprises projects in Early Childhood, Basic, Higher, and Non-Formal Education. In addition, a youth training project and a sector wide initiative is currently in the pipeline. More than US$ 830 million is committed to the Government of Indonesia for Education by the IDA and IBRD. Total project costs of active and pipeline projects exceed US$ 1.5 billion. Furthermore, there are large Trust Funds that bolster the lending program.

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Although Indonesia has recovered well from the economic crisis of the late 90’s, the country continues to under-perform neighboring countries in terms of access to quality education services. The focus of efforts now is on the quality of institutions and public expenditures. Key challenges include:

  • Junior secondary enrollment. Indonesia has almost universal primary enrollment but at the junior secondary level improvements are slower. Only 55 percent of children from low-income families are enrolled in junior secondary schools.
  • Student learning achievement. Indonesia continues to rank low in international standardized tests of student performance, even after taking socio-economic conditions into account. In 2003, Indonesia ranked 33 out of 45 countries in the Third International Mathematics Science Study (TIMSS). In the 2006 Program for International Student Assessment (PISA), which looks at how well 15-year-old students are prepared for life, Indonesia ranked around 50 out of 57 countries in science, reading and math.
  • Allocation of spending. Despite recent increases in overall spending education, Indonesia is still under-investing in secondary education, particularly junior secondary education. At the same time, operational budgets have been squeezed due to substantial increases in salary expenditures.
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BOS - Knowledge Improvement through Transparency and Accountability (BOS-KITA)
The BOS (Bantuan Operasional Sekolah or School Operational Assistance) program has been disbursing block grants to schools across the country on a per student basis since 2005. BOS is part of the Government’s effort to provide quality education to students of all income

The World Bank is supporting the BOS program through BOS KITA (School Operational Assistance – Knowledge Improvement for Transparency and Accountability), a project which aims to improve access to quality education for all children aged 7 to 15 by working to strengthen school committees, increase community participation, improve fiduciary arrangements for greater transparency and accountability of the BOS program to consequently better utilize current BOS’ fund.

The Embassy of the Kingdom of the Netherlands is providing an additional US$ 20 million (approximately 200 billion Rupiah) support that aims to help the Ministry of National Education to maximize the effectiveness of the BOS Program. It will be used to strengthen a number of activities: monitoring, evaluations and complaint handling; social marketing and information campaign; as well as strengthening existing BOS teams at school level, and the work of parents and school committees.

Read also:
World Bank Supports Scale-up of Successful Education Program (Press Release)

BOS-KITA Project (2008 - 2010)
Indonesian Government US$ 2, 021.507 million
Royal Netherlands Embassy US$ 52 million
Royal Netherlands Embassy US$ 20 million
IBRD loan US$ 600 million
Total US$ 2,641.50 million
More details at our Project Database

Better Education through Reformed Management and Universal Teacher Upgrading (BERMUTU)
The BERMUTU project seeks to improve teaching quality and performance. BERMUTU means “quality” in Bahasa Indonesia. This project will prepare the framework for ensuring that teachers will have the opportunity to upgrade their knowledge of the subjects they are teaching, and at the same time improve their teaching skills. It will also work to improve the accreditation system for teacher training courses.

The project will work in several ways, through university based teacher education, through local level teacher development programs, and through finding ways to increase teacher accountability and incentives systems. BERMUTU will work directly with selected universities which have teacher training programs, providing grants on a competitive basis to encourage them to improve their accreditation status and to improve their outreach programs for training teachers in remote and rural areas, mainly through IT based methods. It will work with groups of teachers, school principals and supervisors in 16 provinces and 75 districts/cities, providing opportunities for teachers in rural and remote areas to upgrade their skills through distance learning.

BERMUTU Project (2008 - 2013)
Indonesian Government US$ 57.1 million
Royal Netherlands Embassy US$ 52 million
IDA credit US$ 61.5 million
IBRD loan US$ 24.5 million
Total US$ 195.1 million
More details at our Project Database

Read also:
World Bank Supports Indonesia’s Teacher Improvement Program through New US$86 million Program
(Press Release)

Early Childhood Education and Development (ECED)
The ECED project is working with the Ministry of Education to ensure that more children from poor families have access to early
education, thus improving their overall development and readiness for further education, while also developing a sustainable quality ECED
system. To achieve this objective, the project works to:

  1. Increase the capacity of poor communities to engage in participatory planning that will result in new or improved ECED services for their children and families, which will include support on their health and nutrition status.
  2. Prepare the foundation for a sustainable ECED system through budgetary commitments from participating districts, district capacity building, and the establishment of a national quality assurance and professional development system.
  3. Ensure continuous improvement of service delivery and system building through establishing effective project management, and monitoring and evaluation.

The project targets an estimated 738,000 children ages 0-6 living in approximately 6,000 poor communities located in 3,000 villages
within 50 poor districts in Indonesia. Once it is clear that this approach is working, the Government will start to expand the program for more poor children across the country.

ECED Project (2006 - 2013)
Indonesian Government US$ 35.1 million
Royal Netherlands Embassy (grant) US$ 25.3 million
IDA credit US$ 67.5 million
Total US$ 127.9 million
More details at our Project Database

Managing Higher Education for Relevance and Efficiency (IMHERE)
IMHERE starts with the Government’s Higher Education Long Term Plan, supporting the management and administration of the
Directorate General for Higher Education in the Ministry of National Education, and assisting with the development of the legal framework for higher education. It aims to help create an enabling environment for public universities to become more autonomous and more accountable, while also increasing the quality, relevance, efficiency and equity of education for students. IMHERE funds the development of an institutional accreditation program, BAN-PT, a strategy to revitalize the Open University, and strengthens the management and administration of universities.

Project components have been designed to:

  1. Facilitate Higher Education system reform and oversight.
  2. Provide grants to improve academic quality and institutional performance.
  3. Revitalize the national and open universities in the areas of governance, finance, outreach, content, and delivery.
IMHERE Project (2005 - 2012)
Indonesian Government US$34.54 million
IDA credit US$30 million
IBRD loan US$50 million
Total US$114.54 million
More details at our Project Database

» More on World Bank Education Programs

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Related Links
World Bank Education Website
Education Topic in East Asia & Pacific Website
Education Data & Statistik
Indonesia Profile on Education
Education Related Project in Indonesia
Ministry of Education offcial Website
Ministry of Religious Affairs
International Development Association (IDA)
Royal Netherlands Embassy
European Commission
Official List of Education Sector Definitions, Terms, and Acronyms (Glossary -.xls)

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