Assessing the Role of the School Operational Grant Program in Improving Education Outcomes in Indonesia

Abstract

Over the last ten years, Indonesia has continued to make significant progress in improving educational opportunities for all its citizens. The purpose of this report is to provide an assessment of the national school grants program, Bantuan Operasional Sekolah (BOS), and its contribution to progress in the education sector. The BOS program aimed to raise educational attainment through the provision of school grants to all primary and junior secondary schools. The report draws together studies and data that have been used to analyze the program and undertakes new analysis that looks at the effect of the program on household education costs and education participation. The review is used to draw out policy options to improve the program further and ensure that it contributes effectively to emerging challenges in the sector. The first chapter provides a brief overview of school funding in Indonesia before setting out the channels through which the BOS program was designed to improve education outcomes. The chapter also provides background information on the size and mechanics of the BOS program as well as the major changes that have occurred over the last ten years. Chapter two explores the effect of BOS on the education costs faced by households and whether these changes have been a key driver of the improvements in participation, particularly of the poor, seen over the last decade. Chapter three looks at the role BOS has played in supporting school based management reforms and whether they are likely to have led to improvements in education outcomes. The final chapter provides some suggestions on how to improve the BOS program and strengthen its role in improving education outcomes.