The Promise of Education in Indonesia The Promise of Education in Indonesia This work is a product of the staff of The World Bank, supported by funding from the Australian Govern- ment. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions © 2020 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved The material in this work is subject to copyright. 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Contents Forewordvii Abbreviationsix Executive summary: Boosting learning1 Chapter 1  Boosting learning: Indonesia’s education challenge 10 Geopolitical, historical, and economic context 11 Education is central to the government’s development agenda 11 A diverse and complex system 14 Enrollments are up by more than 10 million 16 But the system still lags behind its promise and potential 16 The process of reform in Indonesia 20 Recommendation 1: Ensure that students reach at least minimum learning and development standards at each level of the system 23 References 24 Government laws and regulations 25 Website 26 Chapter 2  Starting early with readiness to learn 28 Readiness to learn 29 Starting early in Indonesia 30 How is Indonesia doing? 34 Quality of ECED 36 Recommendation 2: Make quality early childhood education accessible to all 40 References 41 Government laws and regulations 44 Chapter 3  Equity and inclusion in learning 46 Education for all requires inclusive education systems and schools 47 Lagging, low-performing students present a major challenge in efforts to boost learning 47 Summary 56 Recommendation 3: Act to guarantee equitable access to good quality education and learning by children most excluded from the system 56 Recommendation 4: Act to improve learning outcomes of the lowest performers 57 Recommendation 5: Ensure that all students, including those with disabilities, succeed 59 References 61 Government laws and regulations 62 Chapter 4  Preparing and supporting teachers 64 Teacher selection 65 Preparing teachers 66 Deploying teachers 69 Continually developing teachers’ skills 71 Incentivizing and motivating teachers 75 Recommendation 6a: Improve the quality of preservice institutions and the candidates that enter them 78 Recommendation 6b: Recruit the best teacher candidates and distribute them effectively 78 Recommendation 7: Improve professional development and calibrate incentives 80 References 80 • iii Government laws and regulations 82 Spotlight 1  How to connect all Indonesian schools in 2020? 84 Chapter 5  Managing the education system to deliver learning 92 The system’s size and geographic spread pose particular challenges 93 Role of central government ministries 93 Responsibilities in Indonesia’s decentralized system 94 Challenges of governance, structure, decentralization, and accountability 99 Integrating different types of education 100 Ensuring that minimum standards are met 100 School accreditation 101 Managing and financing schools and madrasahs to deliver learning 101 Recommendation 8: Strengthen accountability mechanisms through better data tracking and verification 107 Recommendation 9: Support existing institutions to improve service delivery 108 References 108 Government laws and regulations 111 Spotlight 2  Main challenges in the TVET system 112 Chapter 6  Tertiary education—high expectations, average performance 118 Increasing access and improving equity 119 Improving quality and relevance 122 Strengthening research and technology transfer 125 Modernizing governance and management 127 Defining a sustainable financing strategy 131 Recommendation 11: Improve the quality, relevance, and equity of the tertiary education sector 135 References 136 Government laws and regulations 136 Chapter 7  Managing Indonesia’s multiple systems for learning 138 Schooling for learning 139 COVID–19 pandemic impacts and response 141 Recommendation 12. As a part of the COVID-19 response and recovery, strengthen the system for future shocks and stresses 144 Synthesis of recommendations 144 Looking forward 150 Concluding statement 151 References 151 Government laws and regulations 151 Acknowledgments152 Notes153 Boxes ES.1 Twelve building blocks to boost learning 5 ES.2 Supporting human capital during the COVID–19 crisis 7 1.1 How Indonesia fares on the Human Capital Index 12 1.2 Madrasahs are an integral part of Indonesia’s education system 15 1.3 Learning poverty and learning inequality 18 2.1 Multisectoral approach to address stunting in Indonesia is showing promising results 31 3.1 Roots Indonesia peer violence and bullying prevention pilot 55 4.1 Who decides to enter the teaching profession? 68 4.2 Republic of Korea’s restriction of teacher training admissions raised applicant quality 68 4.3 Teachers who received an allowance to teach in remote areas tended to have lower absence rates 70 iv  •  The Promise of Education in Indonesia 4.4 Indonesian government definitions of competencies 71 4.5 Kiat Guru pilot program 77 5.1 Improving the effectiveness of school committees 95 5.2 The World Bank’s MELAYANI Program 96 5.3 DAPODIK­ —­ A platform with big potential 99 5.4 How does Indonesia measure school level success? 100 5.5 Electronic performance-based school planning and budgeting systems 105 S2.1 Labor market observatories 115 6.1 Removing regulatory barriers for private tertiary education institutions 122 6.2 Supporting research institutions 128 7.1 Measuring the health of the system 140 Figures ES.1 Coherence and alignment for learning 4 1.1 Indonesia population age structure, estimates and projections, 1950–2100 13 1.2 Student enrollments and numbers of teachers, 2009/10 to 2016/17 17 2.1 Investments in high-quality services during children’s early years pay off 29 2.2 ECED participation rate for 5–6 year olds, 2008–18 36 2.3 ECED gross enrollment rate for 4–6 year olds 36 2.4 ECED gross enrollment rate for 3–6 year olds and villages without ECE service by province 37 2.5 District-level poverty rate and percent of villages without ECE facility 37 2.6 District-level poverty rate and ECED gross enrollment rate 4–6 years 38 2.7 Nonformal ECED services that are accredited 38 2.8 Share of rural preschools in a study sample that meet minimum local standards and ECERS‑R standards 39 3.1 Senior secondary net enrollment rates grew for all income levels, larger growth was registered among poorer Indonesians 49 3.2 Net enrollment rates drop more for disabled students than for non‑disabled students from primary to junior secondary to senior secondary 51 3.3 Net enrollment rates by sex and education 52 4.1 Most teachers have university Bachelor’s degrees 67 4.2 Half of general education teachers are certified, and a significant number of noncertified teachers are also eligible for certification 67 4.3 Teacher training institutions 69 S1.1 Percentage of distribution of school connectivity map by province, MoEC, 2018/2019 86 S1.2 Percentage of distribution of school connectivity map by province, MoRA, 2018/2019 86 S1.3 Internet speed of schools by province, 2018/2019 87 S1.4 Possible framework agreement implementation process 88 5.1 Governance structure and financial flows in the education system 97 5.2 Distribution of the education budget, 2010–20 97 5.3 Distribution of the education budget, 2020 98 5.4 School accreditation and national examination scores, grade 9 101 5.5 School ratings for selected indicators 106 S2.1 Industrial revolutions 112 S2.2 Two major skills training streams in Indonesia 114 S2.3 Share of firms who report offering formal training opportunities for their employees 116 S2.4 Unemployment rates by education type and level 116 6.1 Gross enrollment rate in tertiary education 119 6.2 GDP on gross expenditure for R&D as a percentage of GDP, 2015 127 7.1 Coherence and alignment for learning 141 7.2 Projected trends in PISA scores due to COVID–19 141 7.3 COVID–19 crisis education system transmission channels 142 Tables ES.1 Structure and functions of the Indonesian education system after decentralization 2 ES.2 Direct impact of the crisis on schools, as of June 6, 2020 8 Contents • v 1.1 Reasons children 16–18 are not in school 16 1.2 Indonesia’s PISA scores, 2000–18 19 1.3 Students with disabilities 20 2.1 ECED services and students enrolled in 2019–20 by category 32 2.2 ECED services are provided in different formats by different ministries 33 2.3 Number of early childhood education services over 2017/18–2019/20 35 2.4 Village level availability of ECE 35 2.5 Gross enrollment ratio, preprimary, both sexes (percent) 35 3.1 Main reasons for dropping out of school by sex 56 S1.1 Connected MoEC and MoRA schools 84 S1.2 School connections by type, MoEC and MoRA 85 S2.1 Number of TVET institutions, by July 2020 113 6.1 Distribution of tertiary education enrollment and institutions, 2012 and 2018 120 6.2 Planned increase in the gross enrollment rate (percent) 121 6.3 Principal dimensions and instruments of accountability 125 6.4 Research and innovation capacity and output, Indonesia and benchmarking countries 126 6.5 Matrix of COVID–19 effects and mitigating measures for tertiary education 130 6.6 Sustainability and equity impact of various cost-sharing schemes 132 6.7 Alignment of the Indonesian funding framework with international good practices 134 7.1 Indonesia’s ICT indicators (percent) 143 7.2 Summary of key recommendations 145 vi  •  The Promise of Education in Indonesia Foreword E ducation and human development are cen- inequalities. Indonesia’s challenge is now to re- tral to the Indonesian government’s overall capture lost learning, while continuing to strength- development agenda and significant prog- en the education system to boost learning for all ress has been made in education over the past children. two decades. A broad range of reforms along with Some measures implemented in response to increases in education spending since the early COVID-19 can also be built on to strengthen the 2000s have helped expand access to education, education system in the long term. For example, particularly among disadvantaged children. Enroll- the government has announced plans for assess- ments are up 31 percent since 2002, adding more ments to identify student learning levels, so that than 10 million primary and secondary students. teachers can tailor their lessons and provide ad- Indonesia has also demonstrated great prog- ditional support. These assessments will be used ress on gender parity in education. In 1975, 65 per- to monitor student progress during remote learn- cent of students were male, while today the pro- ing and as children return to schools, when they portions of girls/women and boys/men are roughly re-open. This focus on understanding how much equal. children are learning, and providing support based Despite these important achievements, Indone- on their needs, is a key recommendation of this re- sian students are still unable to reach their full po- port and could become a more permanent way of tential. Their human capital­ —­the knowledge, skills, improving teaching. Similarly, investments in im- and health that people accumulate throughout proving online teaching and learning now can also their lives­—­is critical to Indonesia’s future success. make Indonesia’s education system more resilient One key challenge is that Indonesian children to future crises. are not learning enough. Schooling is not always This report provides a set of options for the the same as learning­ —­ while Indonesian students Government of Indonesia to strengthen educa- attend school for 12.4 years on average, they only tion reforms and boost the learning outcomes of learn the equivalent of 7.8 years (Human Capital all Indonesian students. The recommendations Index 2020). What they learn all the way through focus on protecting and building human capital the education system­ —­ from early childhood to by increasing the capacity, equity, and account- university­ —­ helps determine the skills they have ability for learning. The report also explores what when they enter the job market as adults. Although the central government can do to make changes learning levels for all children need to be improved, for the better in areas under its control and how to disadvantaged students­ —­such as those who are provide better guidance and support to provinces, poor, live in remote areas, or have disabilities­ —­ districts, and schools. typically fall furthest behind and therefore need We hope that these recommendations will be the most help. useful for policymakers, practitioners, teachers, The ongoing COVID-19 pandemic has brought students, and parents­ —­all stakeholders in Indone- with it a range of new challenges and a transition sia’s future. to learning from home at an unprecedented scale. While the government has taken many timely steps Satu Kahkonen to support learning from home, the pandemic is Country Director, World Bank still likely to impair learning and widen existing Indonesia and Timor-Leste • vii viii • Abbreviations 3T Border, Outermost, Underdeveloped Areas (Terdepan, Terluar, Tertinggal) ACDP Analytical and Capacity Development Partnership AKSI Assessment of Indonesian Student Competency (Asesmen Kompetensi Siswa Indonesia) APBD Regional government budget (Anggaran Pendapatan dan Belanja Daerah) APBN National government budget (Anggaran Pendapatan dan Belanja Negara) ASEAN Association of Southeast Asian Nations BAN National Accreditation Agency (Badan Akreditasi Nasional) BAN–PAUD National Accreditation Agency for Early Childhood Education (Badan Akreditasi Nasional–Pendidikan Anak Usia Dini) BAN–PNF National Accreditation Agency for Nonformal Education (Badan Akreditasi Nasional– Pendidikan Nonformal) BAN–PT National Accreditation Agency for Higher Education (Badan Akreditasi Nasional– Perguruan Tinggi) BAPPENAS Ministry of National Development Planning/National Development Planning Agency (Kementerian Perencanaan Pembangunan Nasional Republik Indonesia/ Badan Perencanaan Pembangunan Nasional) BKN National Civil Service Agency (Badan Kepegawaian Negara) BLK Vocational training center (Balai Latihan Kerja) BOP PAUD Operational Assistance for Early Childhood Education (Bantuan Operasional Penyelenggaraan Pendidikan Anak Usia Dini) BOS School Operational Assistance (Bantuan Operasional Sekolah) BPS Central Bureau of Statistics (Badan Pusat Statistik) BNSP National Professional Certification Agency (Badan Nasional Sertifikasi Profesi) BSNP National Education Standards Board (Badan Standar Nasional Pendidikan) CECCEP Centre of Early Childhood Care Education and Parenting (SEAMEO) DAK Special allocation funds (Dana Alokasi Khusus) DAK–Fisik Special physical allocation fund (Dana Alokasi Khusus—Fisik) DAPODIK Basic Education Data (Data Pokok Pendidikan) DAU General Allocation Grant (Dana Alokasi Umum) DGHE Directorate General for Higher Education Dinas Kabupaten District-level education offices Dinas Provinsi Province-level education offices e-RKAM Electronic Performance-based Madrasah Planning and Budgeting System (Rencana Kegiatan dan Anggaran Madrasah berbasis elektronik) e-RKAS Electronic Performance-based School Planning and Budgeting System (Rencana Kegiatan dan Anggaran Sekolah berbasis elektronik) ECED Early childhood education and development ECERS-R Early Childhood Environment Rating Scale Revised EdTech Educational technology EGRA National Early Grade Reading Assessment EMIS Education management information system FSGI Indonesian School Teacher Federation (Federasi Serikat Guru Indonesia) GDP Gross domestic product GER Gross enrollment rate GERD Gross expenditure for research and development GGD Frontline Teachers Program (Guru Garis Depan) HCI Human Capital Index • ix HI-ECD Holistic integrated early childhood development HILSSI Association of Indonesian Training Institutions (Himpunan Lembaga Latihan Seluruh Indonesia) HIPKI Association of Indonesian Training and Course Providers (Himpunan Penyelenggara Pelatihan dan Kursus Indonesia) IQF/KKNI Indonesian Qualification Framework (Kerangka Kerja Nasional Indonesia) KB Playgroups (Kelompok Bermain) Kemendesa The Ministry of Villages, Development of Disadvantaged Regions, and Transmigration (Kementerian Desa, Pembangunan Daerah Tertinggal, dan Transmigrasi) Kemenko PMK Coordinating Ministry of Human Development and Culture (Kementerian Koordinator Bidang Pembangunan Manusia dan Kebudayaan) KemenPAN-RB Ministry of Administrative and Bureaucratic Reform (Kementerian Pendayagunaan Aparatur Negara dan Reformasi Birokrasi) KIAT Guru Teachers’ Performance and Accountability (Kinerja dan Akuntabilitas Guru) KIP Indonesia Education Grant Card (Kartu Indonesia Pintar) KKG Teachers’ Working Groups for primary education level (Kelompok Kerja Guru) LA–LPK Accreditation Agency for Nonformal Training Private Institution (Lembaga Akreditasi LPK) LAM Independent Accreditation Agency (Lembaga Akreditasi Mandiri) LMOs Labor Market Observatories LKP Skill Courses and Training Private Institution (Lembaga Kursus dan Pelatihan) LPK Nonformal training private institution (Lembaga Pelatihan Kerja) LPMP Educational Quality Assurance Council (Lembaga Penjaminan Mutu Pendidikan) LPNK Non-ministerial Government Institutions (Lembaga Pemerintah Nonkementerian) LPTKs Teacher training institutes (Lembaga Pendidikan Tenaga Kependidikan) LSK Competency Certification Authority (Lembaga Sertifikasi Kompetensi) MA Islamic Senior Secondary School­ —­including some vocational schools (Madrasah Aliyah) MGMP Secondary School Teacher Working Group (Musyawarah Guru Mata Pelajaran) MI Islamic Primary School (Madrasah Ibtidaiyah) MoEC Ministry of Education and Culture (Kementerian Pendidikan dan Kebudayaan) MoF Ministry of Finance (Kementerian Keuangan) MoHA Ministry of Home Affairs (Kementerian Dalam Negeri) MoM Ministry of Manpower (Kementerian Ketenagakerjaan) MoRA Ministry of Religious Affairs (Kementerian Agama) MoRT Ministry of Research and Technology/National Research and Innovation Agency (Kementerian Riset dan Teknologi / Badan Riset dan Inovasi Nasional) MoRTHE Ministry of Research, Technology, and Higher Education (Kementerian Riset, Teknologi, dan Pendidikan Tinggi) MoSA Ministry of Social Affairs (Kementerian Sosial) MoWECP Ministry of Women Empowerment and Child Protection (Kementerian Pemberdayaan Perempuan dan Perlindungan Anak) MSS Minimum Service Standards (Standar Pelayanan Minimum) MTs Islamic Junior Secondary School (Madrasah Tsanawiyah) MUK Competency test materials (Materi Uji Kompetensi) NES National Education Standards OECD Organisation for Economic Co-operation and Development ORF Oral reading fluency PAUD Early Childhood Education Program (Pendidikan Anak Usia Dini) PAUD–DAK Early Childhood Education Special Allocation Fund (Pendidikan Anak Usia Dini -Dana Alokasi Khusus) PBB Performance-based budgeting PBK Competency-Based Training (Pelatihan Berbasis Kompetensi) PDIA Problem-driven iterative adaptation methodology PIP Indonesia Education Grant Programme (Program Indonesia Pintar) PISA Programme for International Student Assessment PKH Hope Family Program/Conditional Cash Transfers Program (Program Keluarga Harapan) PNS Civil servant (Pegawai Negeri Sipil) x  •  The Promise of Education in Indonesia PPG Preservice Teacher Professional Education Program (Pendidikan Profesi Guru) PPP Purchasing power parity RA Islamic early childhood education (Raudhatul Athfal) RISET Research and Innovation in Science and Technology (Project) RISKESDAS Basic Health Research Results (Laporan Hasil Riset Kesehatan Dasar) RPJMN National Medium-Term Development Plan (Rencana Pembangunan Jangka Menengah Nasional) SABER Systems Approach for Better Education Results SAKERNAS National Labor Force Survey (Survei Angkatan Kerja Nasional) SD Elementary school (Sekolah Dasar) SEAMEO Southeast Asian Ministers of Education Organization SISLATKERNAS National Work Training System (Sistem Pelatihan Kerja Nasional) SKD Basic competency test (Seleksi Kompetensi Dasar) SKKNI Indonesian National Competency Standards (Standar Kompetensi Kerja Nasional Indonesia) SM3T Undergraduate Education Program for Border, Remote, and Underdeveloped Regions (Sarjana Mendidik di Daerah Terdepan, Terluar dan Tertinggal/Daerah Khusus) SMA General senior secondary school (Sekolah Menengah Atas) SMK Vocational senior secondary schools (Sekolah Menengah Kejuruan) SMP Junior secondary schools (Sekolah Menengah Pertama) SN Dikti National Standards of Higher Education (Standar Nasional Pendidikan Tinggi) SSGBI Toddler Nutrition Status Survey in Indonesia (Survei Status Gizi Balita di Indonesia) SUPAS Inter-Censal Population Survey (Survei Penduduk Antar Sensus) SUSENAS National Socioeconomic Survey (Survei Sosial Ekonomi Nasional) TIMSS Trends in International Mathematics and Science Study TK Kindergarten (Taman Kanak-kanak) TPA Childcare services (Taman Penitipan Anak) TPG Teacher Professional Allowance (Tunjangan Profesi Guru) TVET Technical and vocational education and training UMP Provincial minimum wage (Upah Minimum Provinsi) UN National exam (Ujian Nasional) UNESCO United Nations Educational, Scientific, and Cultural Organization USAID United States Agency for International Development USBN State standard school exam (Ujian Sekolah Berstandar Nasional) Abbreviations • xi EXECUTIVE SUMMARY Boosting learning I n a speech following his 2019 reelection, Indone- of policymakers, implementers, teachers, students, sian President Joko Widodo “Jokowi” declared —­ and parents­ all stakeholders in Indonesia’s future. his aim to develop an adaptive, productive, in- novative, and competitive Indonesia that will make Indonesia has achieved much… the country one of the strongest in the world, high- Education and human development are central to lighting that the key to this more prosperous future the Indonesian government’s overall development is developing human resources.1 To prosper, Indo- agenda. Since the early 2000s, Indonesia has im- nesia needs an education and training system that plemented a broad range of education reforms, can enhance the well-being of its citizens, improve including decentralizing much of the education its human capital, and achieve its economic and system (table ES.1),3 improving the achievement development goals. The current system delivers of teacher qualifications, and increasing educa- learning at levels far below what the children and tion spending, up an estimated 200 percent in real youth of Indonesia need today, with only 30 per- terms from 2002 to 2018. These reforms have ex- cent of children achieving minimum scores in read- panded access to education, particularly among ing on PISA.2 This is a learning crisis. To achieve the disadvantaged children. The additional resourc- president’s vision, a comprehensive change in the es for the sector mandated by the constitution- education and training system is needed to deliver al amendment of 2002 successfully financed the on its promise and support the country’s full par- expansion of education services and increased ticipation in the fourth industrial revolution and to the number of teachers for new schools and class- ensure that Indonesia harnesses the benefits of its rooms, as well as for kindergartens and other early demographic dividend. childhood programs (World Bank 2018b). Each year 4.2 million Indonesians leave the edu- Today, Indonesia’s education system is the cation system (SUSENAS 2018). The average student world’s fourth largest. The formal system collective- exits the system at 16 years old with 11 years of edu- ly employs 3.3  million teachers educating 53.1  mil- cation. But many of those who complete secondary lion children in grades 1 through 12 under both the education do not have the skills needed in the labor Ministry of Education and Culture (MoEC) and the market and end up in low paying work. Low skills Ministry of Religious Affairs (MoRA). An additional reflect poor basic education and poor alignment 231,446 early childhood education services support between education institutions’ curricula and labor the early learning of 7.4 million children (MoEC 2019 market needs. Many students do not achieve mini- DAPODIK). And 4,670 higher education institutions mum mastery in reading and math, and, as they en- provide services to approximately 8 million students. gage in higher education and in technical and voca- The nonformal vocational training system comprises tional education and training, the taught curriculum more than 4,000 institutions under the supervision tends to be misaligned with today’s market needs of MoEC and the Ministry of Manpower, as well as and those expected for Industry 4.0. some line ministries (MoU of Five Ministries 2016). This Indonesia Education Flagship Report ex- amines ways to strengthen education reforms and …but needs to focus more on learning boost the learning outcomes of all Indonesian stu- Despite important progress in prior years, most dents. It focuses on how the education system can students do not meet the national learning targets deliver on the promise of human capital for Indone- Indonesia has set for itself. Measures of learning sia. The recommendations focus on protecting and show challenges in the early years, and learning re- building human capital by increasing the capacity, mains low as students move on to higher grades. equity, and accountability for learning. The report Learning is low both in absolute terms, below na- also explores what the central government can do tional targets, and in relative terms when com- to make changes for the better in areas under its pared with neighboring countries (World Bank control and how to provide better guidance and 2018b). To reach its human capital potential and support to provinces, districts, and schools. It is resolve this learning crisis, Indonesia’s education unlikely that any one administration could success- system must now work differently. fully undertake all of the reforms proposed here Learning inequality is high between regions, be- at the same time. This summary does not attempt tween schools, and within schools. Some provinces to prioritize them since the tradeoffs in choos- in Indonesia, especially those in the central region, ing between early childhood education, teacher perform well on the national exams, while others, training, and skills development for employment often in the east and far west, perform poorly. The are not only technical but also political and finan- difference between the average of the three top cial. The recommendations here are intended as performing provinces and the three lowest per- evidence-based guidance to inform deliberations forming provinces on the grade 12 exam for senior Executive summary • 1 TABLE ES.1 Structure and functions of the Indonesian education system after decentralization Activity Central government Province District/city Schools/principals Education National education Senior secondary Primary education Management of individual management standards education schools­—­planning, Junior secondary budgeting, school Higher education Special education education self-evaluations Early childhood education and nonformal education Curriculum National curriculum for Local content curriculum Local content curriculum Implementation of local development secondary education, for senior secondary for primary education, content curriculum primary education, early education and local junior secondary childhood education, and special education education, early childhood nonformal education education, and nonformal education Accreditation Accreditation for higher, secondary, primary, early childhood education, and nonformal education Educators and Control of the educators’ Transfers of educators and Allocation and transfers of Hiring of teachers on educational staff training, the hiring of educational staff across educators and educational school contracts management permanent teaching staff, district/city regions within staff within a district/city educators’ transfers, one province region and educators’ career Hiring of teachers on development district-level contracts Transfers of educators and educational staff between provinces Educational Licenses for private Licenses for private Licenses for private licensing universities secondary education primary education Operating licenses for Licenses for private special Licenses for private early foreign educational units education childhood education and private nonformal education Language and The fostering of the Language and literature Language and literature literature Indonesian language and across district/city regions whose speakers are literature within one provincial present within the district/ region city region Assessment Supervises and Works with schools Performance assessments implements assessments to develop student of teachers of student skills on a assessments School self-assessment population basis against the minimum service standards Source: Law No. 23/2014 on Regional Autonomy. secondary schools in 2019 was 21 points on a 100- stating, “The implementation of the national exam point scale. Only 4 of the 34 provinces had an av- in 2021 will be changed to the Assessment of Min- erage grade 12 score above the minimum passing imum Competency and Survey of Character, which score of 55. The results are even lower for the grade consists of the ability of language (literacy), the 9 exam (junior secondary schools), and for techni- ability of math (numeracy), and the strengthening cal and vocational schools (grade 12 exam).4 Dis- of character education.”5 Due to COVID–19, MoEC tricts with higher incomes, large urban centers, and cancelled the national exam earlier than planned greater implementation capacity tend to do better in 2020 (MoEC Circular Letter No. 4/2020). MoRA than lower income, more rural districts with lower is part of this movement toward broad-based for- implementation capacity (World Bank 2013). mative assessments to inform teachers of student Recent policy changes in student assessment learning needs, having committed to a revised ap- (MoEC Regulation No. 43/2019 on Administration proach to exams even earlier (World Bank 2019). of National Exam) are pointing in the right direction. The student assessment framework is currently in a In a major development, Minister of Education and period of transition, and it is essential to get it right Culture, Nadiem Makarim announced the termina- so that it can help drive the education system at all tion of the national exams (UN or Ujian Nasional), levels to focus on improving student learning. 2  •  The Promise of Education in Indonesia MoEC’s authority is focused on hiring civil serv- direction, and more developments are expected in ice teachers, establishing curricula and competen- the near term. cy standards, and administering student learning The tradition of testing and assessment has re- assessments. This means that basic inputs for stu- vealed widespread learning weaknesses. Indonesia dent learning­—­ such as the availability and quality has participated in all main international tests im- of textbooks and other teaching and learning ma- plemented since 1990, including Trends in Inter- terials, as well as in-service teacher training and national Mathematics and Science Study (TIMSS) monitoring and supporting teachers, principals, and the Programme for International Student As- and schools­ —­fall largely under the authority of dis- sessment (PISA). This allows for cross-country and tricts and provinces. To improve student learning, across-time comparisons in learning outcomes that subnational spending and initiatives need to be can identify strengths and areas for improvement. aligned with regulations and support for learning at As noted above, Indonesia is moving toward the center. The current lack of alignment between broad-based formative assessments in all grades student achievement and the system for monitor- to inform teachers of student learning needs and ing standards needs to change in order for student designing national assessments for grades 5, 8, learning to increase at scale. and 11. The new directions of student and system assessment appear very positive, but they will Schooling for learning need a broad base of support in order for them —­ Schooling is not the same as learning­ an insight re- to be both sustainable and effective. It is essential peatedly stressed by the 2018 World Development that the new student assessment framework be Report (World Bank 2018d). To build on its educa- designed, communicated, and implemented in a tion reforms and achieve better results, continuing way that gains the support of core constituents, in- reform in Indonesia should advance on three fronts: cluding teachers, parents, and civil society. • Assess learning to make it a serious goal. Well-­ designed student assessments should be used —­ Act on evidence­ to make schools work for all to measure the health of education systems, learners and not be tools for administering rewards and Measurement should guide action. To do so, mea- punishments. The results of these learning mea- sured results must be available to stakeholders. sures should be used to spotlight hidden exclu- Measures of learning can motivate action by in- sions, make choices for directing support, and creasing participation of stakeholders in outcomes evaluate progress. and by making information available for reform • Act on evidence to make schools work for all (World Bank 2018d). There is a need to make in- learners. The volume and quality of evidence formation about learning available and to support on how people learn have improved rapidly in key stakeholders, including teachers, parents, dis- recent decades, along with an increase in edu- tricts, and provinces, to use it. This information cational innovation. Indonesia can make better can come in the form of student assessments, and use of this evidence to set priorities for their it can also come through instruments such as the own practices and innovations. proposed Education Quality Index (see chapter 5), • Align actors to make the whole system work which is intended to bundle key information that for learning. Classroom innovation is unlikely can be used for decision-making. to have much impact if the system as a whole One way to do this is to ensure greater owner- does not support learning. By taking account of ship, engagement, and empowerment of decen- technical and political barriers and mobilizing tralized actors to respond to local learning chal- stakeholders, Indonesia can support innovative lenges. Improving the quality of service delivery is educators on the front lines. a particularly difficult challenge, poorly suited for a nationally homogeneous response. To drive more —­ Assess learning­ to make it a serious goal effective local responses, districts need support to In Indonesia, implementing the different laws and understand the different education challenges that regulations guiding the education system is affect- they face and the resources that they already pos- ed by the resources available, institutional capac- sess to address them. The Ministry of Education ity, politics, and ad hoc restrictions, among other and Culture, together with the Ministry of Home variables. Earlier reforms to strengthen assess- Affairs (MoHA) and others, can take a stronger role ment using computer-based testing­ —­along with in assisting districts to define their learning-related more recent structural reforms to redesign the as- challenges, provide resources to respond to identi- sessment mechanisms and the underlying student fied obstacles, and ensure that the education sys- learning progression­ —­are headed in the right tem remains focused on learning. Executive summary • 3 District leaders, bureaucrats, educators, and Politics can drive misalignments when the vested parents need to understand that the system is fail- interests of different stakeholders collide. Mis- ing many children on the provision of basic litera- alignment can occur along every step of the policy cy and numeracy skills. They can understand this process, from defining goals to designing and im- problem not as a national issue, but as a local one, plementing policies and to evaluating their effec- relevant to them and their own children. They also tiveness. Misalignment thus threatens to under- would benefit from seeing where they are doing mine the efforts of education systems to produce well, so that they have a place to start moving learning (World Bank 2018d). Deliberate policy forward. This means that they need data that are choices to foster alignment include setting targets meaningful at the district, school, and class level. and demanding results, advocating for education It is important that teachers have the capacity and in national spending, and providing the impetus flexibility to adjust their teaching to the needs of for cross-sectoral alignment. their students, and that their principals­ —­and school supervisors­ —­ have the ability to support The report’s main recommendations them in doing so. The recommendations in this report provide the building blocks for learning, and their intercon- Align actors­ to make the whole system work —­ nectedness and coordination among all key stake- for learning holders are critical for providing coherence and Education systems require effective institutional aligning the system toward boosting learning (box alignment at a variety of levels and among multiple ES.1). The overarching theme of boosting learning actors (figure ES.1) (World Bank 2018b). requires ensuring that students reach at least mini- Capacity matters for district and school level mum learning and development standards at each bodies. It matters for national, provincial, and mu- level of the system. This is expected to be achiev- nicipal governments. And it matters for subnation- able within existing national spending levels on al education authorities and national ministries of education, following the analysis and recommen- education. Indeed, the strength of institutions can dations in the Indonesia Public Expenditure Review­ strongly affect the quality of interactions between —­ Spending for Better Results (World Bank 2020). education officials and providers, on the one hand, To achieve this, multiple things need to occur re- and stakeholders and civil society, especially par- lated to students, teachers, and management and ents and employers, on the other. inputs. The recommendations are highly intercon- Their interactions take place within contexts nected and depend on one another for the system shaped by political influences and political culture. to function and progress as a whole. Students FIGURE ES.1 Coherence and alignment for It is essential that students come to school pre- learning pared to learn. This requires making at least two years of quality early childhood education com- Civil soc pulsory and accessible to all. There is a need to ians organ izat iety litic Po ion s strengthen the coverage and quality of early child- hood education by ensuring sufficient funding and developing a roadmap to achieve universal enroll- Pe rs Le ar er he or s/c ment by 2030. The expansion could also be incen- ect ac om ne te s Te tivized, especially in areas with no early childhood r mun s Priva services, through grants for new or additional ities Learning services and the encouragement of better collab- oration among stakeholders. Sch o Bure Ensuring that education is equitable and sup- iary ts ol ports the most vulnerable students has three re- pu auc dic m na ol in a ge quirements. First is acting to guarantee equitable rat Ju me ho Sc s nt access to good quality education and learning by In te rn s children most excluded from the system. It is im- ati ona tor l acto r ac portant to ensure that the vision and mission of the rs Othe Ministry of Education and Culture, and the policies that flow from it, are always focused on ensuring Source: World Bank 2018a. that all children have equitable access to good quality schooling and opportunities to learn. It is 4  •  The Promise of Education in Indonesia would be harnessed to identify lowest-performing BOX ES.1 Twelve building blocks to schools and provide extra assistance to them. boost learning Third is ensuring that all students, including those with disabilities, succeed. This requires iden- 1. Ensure that students reach at least tifying children with disabilities as soon as possi- minimum learning and development ble so that early childhood interventions can be standards at each level of the system. provided. It requires teachers to work with chil- 2. Make quality early childhood education dren who have disabilities­ —­ and include them in accessible to all. learning. It requires assessing to what extent in 3. Act to guarantee equitable access to the local context existing disparities in achieve- good quality education and learning by ment are linked to gender, language interference, children most excluded from the system. socioeconomic status, school violence, location, 4. Act to improve learning outcomes of the and early marriage. And it requires that small rural lowest performers. and remote schools be able to provide quality 5. Ensure that all students, including those education. with disabilities, succeed. 6a. Improve the quality of preservice insti- Teachers tutions and the candidates that enter More than 3.3 million teachers work in Indonesian them. classrooms every day, along with 294,000 profes- 6b. Recruit the best teacher candidates and sors and lecturers at the tertiary level and 656,000 distribute them effectively. in early childhood education (World Bank 2018b). 7. Improve professional development and For students to learn, teaching has to be effective, calibrate incentives. since well-trained and motivated teachers are the 8. Strengthen accountability mecha- most fundamental ingredient for learning after the nisms through better data tracking and students themselves. verification. To improve their quality, Indonesia needs to as- 9. Support existing institutions to improve sist them more effectively, both before they enter service delivery. the classroom and throughout their careers. Only 10. Expand access to and improve the quali- with consistently better teaching will Indonesian ty and relevance of TVET. students achieve the foundations for later learning 11. Improve the quality, relevance, and equi- or gain the skills for the 21st century workplace in a ty of the tertiary education sector. competitive and globalized economy. 12. As a part of the COVID–19 response Indonesia’s 421 teacher training institutions pro- and recovery, strengthen the system for duce more than three times the number of teach- future shocks and stresses. er candidates required by the public service sys- tem. This very large number of teacher candidates, 300,000 in 2017, includes many who are under- important to consider different levels and to iden- qualified, linked to the fact that nearly two-fifths of tify districts, communities, families, and individual the teacher training institutions are not accredited.6 children who continue to be excluded from school There is a need to reorient the system from the quan- and therefore disadvantaged in their learning. As tity of teacher graduates to the quality of teacher part of understanding these factors, it is important graduates. Worryingly, very few high performers on to analyze the challenges that lead to this exclusion PISA want to become teachers (OECD 2016). and inequity and develop both national and local Preservice teacher education should be im- policies and school practices to mitigate them. proved with an updated curriculum, blended ap- Second is ensuring that learners do not fall be- proaches to offline, online, and distance teaching hind by acting to improve the learning outcomes of and learning; the appointment of lecturers with the lowest performers. This could involve providing experience in the education level for which they extra support to low-performing districts, schools, are training new teachers; and more in-school and and students a priority. High-quality national stu- better supervised teaching practice, beginning dent assessments would diagnose (identify and from the first year of the candidates’ education. explain) low performance issues of both students This should be linked to more robust engagement and their schools and inform instruction and school of teacher training institutes with the accreditation management to enhance performance. Teachers body, as well as publication of the rate of accep- would routinely assess performance daily through tance of graduates of individual institutions to civil formative evaluation approaches. And learning data service teaching positions. Executive summary • 5 Indonesia should insist on hiring only the most capacity development. The resulting aligned “ar- qualified candidates to become teachers. It should chitecture” of support can be directly involved in educate and pay them well and deploy them ef- improving teacher performance. ficiently and equitably across the country while For districts, it requires making staff more capa- providing incentives and support for continuous ble and accountable for the work they do, includ- improvement. There needs to be continuous devel- ing clarifying the role of every education unit in opment of teachers’ skills through more effective enhancing learning outcomes and requiring their professional development, including through low- staff to remain in their positions following capaci- er-cost online options if proved effective. Given the ty-strengthening activities. need to reach more than 4 million teachers, new Going hand-in-hand with improving service de- strategies have to be tested and scaled up in order livery is strengthening accountability mechanisms, to keep the best teachers in the classroom. Robust so that stakeholders and decision-makers are held teacher evaluation systems should be implement- accountable for improving education quality. Data ed and linked to incentives based on performance. are critical for such accountability, and there is a Preparing teachers better requires targeted re- need to keep better track of education trends by forms, coordinated efforts, and clear and consis- improving MoEC and MoRA databases. This report tent implementation of regulations across inde- proposes an Education Quality Index to assess pendent training and decentralized administrative quality and direct assistance to lagging districts systems­—­a major challenge. and schools. Financial transfers should be pegged Teacher competencies should be continually both to need and to performance. improved through high-quality teacher profession- al development linked to career progression and Learning and promoting skills for the labor promotion. This should begin by serious processes market of induction and probation and continue through Ultimately a goal of learning in education is the systematic and regular assessment processes. The development of skills that can be used after leav- focus should be on the design and use of student ing school. This can come on many tracks. Raising learning assessments to improve teaching and stu- the performance of tertiary education requires in- dent learning. creasing enrollments; improving equity, quality, In sum, Indonesia should ensure that it has the and relevance; strengthening research and tech- right number of highly qualified teachers in the nology transfer; modernizing governance and right locations, particularly in low-performing, management; and defining a sustainable financ- remote, and rural schools, and that teachers are ing strategy. Expanding access and improving the performing at their best. With 55 percent of civil quality and relevance of technical and vocational servant teachers retiring over 10 years starting in education and training recognize its importance 2018 (about 960,000 individuals), there are major in meeting rising demand, but balancing this ex- opportunities and risks to reshaping the teach- pansion with robust accountability mechanisms is er workforce for the next generation (World Bank essential. For TVET to meet the demands of the 2018c). labor market, a critical step is to improve informa- tion on labor market needs and guide the overall Management and inputs skill development system with strong participation The education system’s management and inputs of the private sector. must also be driven toward delivering learning. Supporting existing institutions to improve service Coordinating multiple actors delivery includes ensuring that Indonesia can build Two key ministries­— ­MoEC and MoRA­— ­oversee on its reforms to improve learning quality. formal and nonformal education.8 But other minis- For schools, this involves supporting school im- tries and institutions are also involved, such as the provement and enhancing student outcomes using Ministry of Home Affairs (MoHA), the Ministry of the building blocks already in place­ —­ principal National Development Planning (BAPPENAS), the and teacher working groups,7 school committees, Ministry of Manpower, the Ministry of Villages, and education quality assurance institutes (Lembaga the Coordinating Ministry of Human Development Penjaminan Mutu Pendidikan, or LPMPs), teach- and Culture, among others. Decentralization laws er training institutes (Lembaga Pendidikan Tena- shifted the management of schools under MoEC ga Keguruan, or LPTKs), high-quality schools in- to more than 34 provinces and 514 districts admin- cluding sekolah rujukan and sekolah model, and istering some 646,192 schools and other learning the province-level education offices and their su- institutions across Indonesia’s more than 17,000 pervisors. All these building blocks need further islands. Some 42,800 schools are classified as 3T 6  •  The Promise of Education in Indonesia (Terdepan, Terluar, Tertinggal, or border, outer- takes on particular relevance. Just as the frame- most, underdeveloped). The districts’ highly var- work in figure ES.1 shows how all actors in the sys- ied institutional capacities and socioeconomic and tem must work toward supporting the system and geographic conditions affect their ability to de- directing key elements toward learning (teachers, liver education services effectively and efficiently students, management, and inputs), the recom- (World Bank 2017). Coordinating so many actors at mendations here consider the who, what, and how different levels is no easy task. of implementation. These issues are laid out in de- That makes it essential to understand the com- tail in the chapters that follow. plexity of multiple actors and the challenge of co- ordinating their efforts toward common goals and Rising to the challenge of COVID–19 aligning them with a coherent vision. With Indo- The government of Indonesia has moved quickly to nesia’s complex system and multiple actors, this support learning during the pandemic, instituting BOX ES.2 Supporting human capital during the COVID–19 crisis Supporting learning now i s the most important private schools and community-based early thing ministries, provinces, districts, schools, and childhood education services which may lose families can do. Teacher training and other sup- enrollments due to increasing family poverty, port can be provided online in some cases, while as well as trained staff due to a lack of funding clear communication with parents about sched- during the pandemic. As schools reopen, it will uling of television and other educational pro- be crucial to assess students learning gaps and gramming can help families arrange for children to differentiate instruction based on their current to participate in distance learning. No-tech, low- learning levels. Teachers will need to be support- tech, and high-tech approaches to supporting ed to conduct these reentry assessments of de- learning should be made available depending on velopment and learning and to follow through the local context. As the crisis eases in the com- with targeted assistance to students to help ing months, teachers and schools will also need them catch up. For tertiary institutions, some clo- to plan for a safe reopening so as not to trigger sure and consolidation may be unavoidable due additional waves of infection. to financial strain. However, this process could be organized to support improvements in overall Expected longer-term impacts  are likely to in- tertiary system quality and alignment with em- clude lost learning, increased dropout, and in- ployment opportunity. creased learning inequality with potential long- term impacts on human capital accumulation. Increasing the education’s system’s resilience to Lost learning is expected at all levels of the sys- shock  is a priority as climate change, natural di- tem. Younger children may be least able to study sasters, and other threats will continue after this by themselves, while older children are more like- coronavirus has faded. Climate change threatens ly to need to contribute to family income in a time to exacerbate hydrometeorological risks, such of economic stress. Dropout is expected to be as recurring floods in cities and landslides and highest at higher levels of education, particularly drought in rural areas. Floods pose threats to In- tertiary and senior secondary (Yarrow, Masood, donesians especially in major urban centers, and and Afkar 2020). It is also expected to be highest rain-triggered landslides are common in rural among lower-income students, who are already areas. Sea level rise threatens 42  million Indo- enrolled at lower levels than their more well-off nesians who live less than 10 meters above sea peers. And pre-COVID–19 disparities related level. Both climate and nonclimate hazards have to disabilities, remoteness, sex, and language the potential to lead to damage to education in- interference will likely have been exacerbated frastructure, interrupt the teaching-learning pro- post-COVID–19. cess, and put at risk the lives and livelihoods of students and staff. Increasing system resilience over Actions to mitigate the effects of the crisis  through investments in online-teaching and the long term include continuing to pay teacher learning capacities, securely redundant data stor- salaries to support resilience of the overall sys- age systems, and disaster-resilient infrastructure tem. This is especially important for nonprofit are ways to mitigate the impact of future crises. Executive summary • 7 online learning and educational TV for early child- impact of the crisis on TABLE ES.2 Direct hood through senior secondary (MoEC Circular schools, as of June 6, 2020 Letter No. 4/2020). School closures, combined with effective implementation of social distancing Number of Number of Number of schools students teachers for society at large, can help reduce transmission of the virus. However, the costs to student learn- Total 646,192 62,561,660 3,147,870 ing and the education system as a whole are ex- Source: Ministry of Education and Culture, Update on COVID–19 pected to be significant and may be felt for years, in Education (presentation), June 6, 2020. depending on how the national government and Note: This reflects school closures as of June 6 (based on DAPO- local authorities respond (table ES.2). Estimates of DIK and EMIS data updates, May 2020). the impact of just the first four months of school closure from the end of March to the end of July overall productivity and economic growth. And 2020 are an eleven-point drop on the PISA reading the school population is starting a gradual decline scale. This could drive a present value loss in life- that will eventually free up resources to improve time earnings for all students of about US$151 bil- education quality (SUPAS 2015). The dividend is lion, equivalent to 13.5 percent of 2019 GDP. These expected to peak between 2020 and 2030, when losses are expected to increase in the coming the share of the working age population and the months as schools gradually re-open (and possibly potential for increased output per capita will be re-close) (Yarrow, Masood, and Afkar 2020). at their highest. Although an expanded range of The government has shown itself to be adaptable lifelong learning opportunities could sustain the in its response, quickly moving to institute educa- dividend longer, the opportunity presented by this tional TV when it became clear that many students dividend is rapidly slipping away as the “golden lacked consistent access to high-speed internet and generation” leaves the education system­ —­it will that distance learning approaches other than online be lost entirely if the education provided this gen- were necessary to support equity (Yarrow, Masood, eration is not of the best quality. But if this oppor- and Afkar 2020). In some areas, communities and tunity is grasped and a more productive workforce local governments have also provided support. For is created, Indonesia will be much more likely to example, in some areas village offices (Balai Desa) reap the predicted benefits of Industry 4.0. utilized villages fund (Dana Desa) to provide inter- The current administration is planning to take net connections and learning materials.9 action to reverse the country’s human capital shortfall. It is developing an ambitious program Capitalizing on education’s promise of investing in people to improve health, nutrition, The Indonesian education system has a great deal and education outcomes­ —­all key for developing of promise. To capitalize on that promise, student human capital and a more productive labor force. learning should be a focus and underlying driver to improve the country’s education system. This References report will focus on learning and how, for every as- MoEC (Ministry of Education and Culture). 2019. DAPO- pect and level of Indonesia’s education system, the DIK (Data Pokok Pendidikan Dasar dan Menengah). question should be asked: What can the govern- OECD (Organisation for Economic Co-operation and ment do to shift its focus toward the improvement Development). 2016. PISA 2015 Results: Excellence of learning? Looking forward, improving learning and Equity in Education. Vol. 1. Paris, France: OECD. is about the context and how policies and inter- https://www.oecd-ilibrary.org/education/pisa-2015 ventions are implemented. Large improvements in -results-volume-i_9789264266490-en. Indonesia’s human capital depend on shifting how SUPAS (Survei Penduduk Antar Sensus). 2015. Intercensus the education system operates, specifically align- Population Survey. ing and strengthening the capacities, effective- SUSENAS (Survei Sosial Ekonomi Nasional). 2018. Natio� - ness, autonomy, and accountability of teachers, nal Socioeconomic Survey. principals, and local, regional, and national actors World Bank. 2013. Local Governance and Education Per- and institutions. formance: A Survey of the Quality of Local Education With one-half of Indonesians under the age of Governance in 50 Indonesian Districts. Jakarta: World 30, the population is very young. A demographic Bank. dividend­—­ from having more workers in relation to ———. 2017. Indonesia Economic Quarterly, December dependents­ —­is already materializing, and appro- 2017: Decentralization that Delivers. Washington, DC: priate policies can ensure that the country benefits World Bank. https://openknowledge.worldbank.org/ from it. A large number of young people are en- bitstream/handle/10986/29726/125302-WP-P165633 tering the labor market with the potential to boost -PUBLIC-december-2017.pdf. 8  •  The Promise of Education in Indonesia ———. 2018a. Growing Smarter: Learning and Equitable ———. 2020. Indonesia Public Expenditure Review 2020: Development in East Asia and Pacific. Washington, Spending for Better Results. Washington, DC: World DC: World Bank. doi:10.1596/978–1-4648–1261–3. Bank. https://openknowledge.worldbank.org/handle ———. 2018b. Indonesia Economic Quarterly: Learning /10986/33954. More, Growing Faster. June. Jakarta: World Bank. https:// Yarrow, N., E. Masood, and R. Afkar. 2020. Estimated openknowledge.worldbank.org/handle/10986/29921. Impacts of COVID-19 on Learning and Earning in In- ———. 2018c. Mapping Indonesia’s Civil Service. Wash- donesia: How to Turn the Tide. Jakarta: World Bank. ington, DC: World Bank. http://documents.worldbank https://openknowledge.worldbank.org/bitstream/ .org/curated/en/643861542638957994/pdf/126376 handle/10986/34378/Main-Report.pdf. -Mapping-Indonesia-Civil-Service-14977.pdf. ———. 2018d. World Development Report 2018: Government laws and regulations Learning to Realize Education’s Promise. Washing- Law No. 23/2014 on Regional Autonomy. https://peraturan. ton, DC: World Bank. https://www.worldbank.org/en/ bpk.go.id/Home/Details/38685/uu-no-23-tahun-2014. publication/wdr2018. MoEC Circular Letter No. 4/2020 on Implementation of ———. 2019. Indonesia­—­Realizing Educations Promise: Education Policies in Emergency Spread of COVID–19. Support to Indonesia’s Ministry of Religious Affairs for https://jdih.kemdikbud.go.id/arsip/SE%20Menteri%20 Improved Quality of Education Project (English). Wash- Nomor%204%20Tahun%202020%20cap.pdf. ington, DC: World Bank. http://documents.worldbank. MoEC Regulation No. 58/2015 on Administering School/ org/curated/en/253961561860072917/Indonesia-Realizing Madrasah Exams or Other Equal Forms. http://simpuh. -Educations-Promise-Support-to-Indonesias-Ministry-of kemenag.go.id/regulasi/permendikbud_58_15.pdf. -Religious-Affairs-for-Improved-Quality-of-Education MoEC Regulation No. 43/2019 on Administration of National -Project. Exam. https://jdih.kemdikbud.go.id/arsip/Permendaikbud %20Nomor%2043%20Tahun%202019.pdf. Executive summary • 9 CHAPTER 1 Boosting learning: Indonesia’s education challenge I ndonesia has implemented major policy reforms the rest include Hindus, Buddhists, Confucianists, in recent years to improve education across one and members of other faiths. of Asia’s biggest economies, increasing spend- Indonesia’s education system reflects this di- ing and expanding the reach of an education sys- verse religious and cultural heritage, the country’s tem that spans the world’s largest archipelago. struggle for national identity, and the challenge Despite the increased spending and higher of resource allocation in a geographically scat- enrollments, achieving desired educational stan- tered developing nation with a young and rapidly dards and outcomes still lags behind aspirations growing population. Before colonial times, schools and expectations. Much remains to be done to were commonly founded by Islamic scholars, and improve instruction and learning environments, the Dutch introduced limited elementary educa- upgrade the quality of teachers and their training, tion, but schools remained dispersed and varied raise standards for the administration and man- in quality. Much of the population was illiterate, agement of schools, and strengthen coordination as recognized at independence, when the new and accountability across sectors and levels of 1945 Constitution declared that “every citizen has government­ —­in other words, to “boost learning.” the right to education.” A huge push in the 1970s In all of these areas, Indonesia needs practical resulted in constructing 61,000 primary schools solutions to match its Asian neighbors and com- throughout the country between 1973 and 1978 pete in a globalized world that requires an educat- (Duflo 2001). ed workforce for success. Indonesia’s school system today is both im- mense and diverse. All citizens must undertake 12 Geopolitical, historical, and economic years of compulsory education, 6 years at elemen- context tary level, and 3 each at middle and high school Indonesia comprises more than 17,000 islands levels. Although early childhood education is not spread over 5,000 kilometers east to west and yet compulsory, the subsector is growing and the spans three time zones. With 268  million people intent is to make it compulsory by 2030 (see chap- (2018), it is the world’s most populous Muslim-ma- ter 2). Major policy reforms in previous decades jority nation. Its population has a median age of dramatically improved access to education, includ- 28.8 years and is expected to exceed 318 million ing raising the average years of education for indi- by 2045 (BAPPENAS, BPS, UNFPA 2018).10 Re- viduals 20–25 years old, even with rapid popula- source-endowed and rapidly urbanizing, it is tion growth, from 6.95 years in 1987 to 10.94 years the world’s 10th largest economy, and if current in 2018 (SUSENAS 1987, 2018). Since 2002, further growth rates are sustained, it is expected to be- efforts have dramatically raised spending and ex- come the 4th largest economy by 2050.11 panded enrollment. Sitting astride the sea lanes that link the Indian and Pacific Oceans, carrying much of the world’s Education is central to the trade, Indonesia is rich in natural resources, min- government’s development agenda erals, oil, tropical forests, and fertile agricultural Since the mid-2000s, Indonesia has attempted to land. These resources, together with the islands’ implement a broad range of education reforms, strategic location, have long made Indonesia at- decentralizing parts of its school system, improv- tractive to foreign traders and investors. ing teacher training standards, and boosting edu- As a newly designmated upper-middle-income cation spending (about 20 percent of the national economy, Indonesia has charted impressive eco- budget is for education each year).14 But as a share nomic growth since overcoming the Asian finan- of GDP, spending remains below that in neighbor- cial crisis of the late 1990s.12 Its GDP per capita ing countries.15 rose steadily from US$807 in 2000 to US$3,877 in 2018. It has also made large gains in poverty re- Strengthening human capital to meet the duction, cutting the poverty rate by more than half country’s development goals since 1999, to 9.8 percent in 2018. As a result of In a speech following his 2019 reelection, Indone- global economic contraction linked to COVID–19, sian President Joko Widodo (popularly known as Indonesia’s economic outlook has turned slightly Jokowi) declared his aim to develop an adaptive, negative.13 productive, innovative, and competitive Indone- Indonesia has more than 700 distinct ethnic sia that would make the country one of the stron- and linguistic groups, with more than 40 percent gest in the world. He highlighted that the key to of Indonesia’s population live on the island of this more prosperous future was in the develop- Java (Ethnologue 2019). The majority are Muslim ment of human resources (State Address, August (87 percent), almost 10 percent are Christian, and 2019). This vision is also outlined in the Rencana Boosting learning: Indonesia’s education challenge  •  11 Pembangunan Jangka Menengah Nasional 2020– productivity and earnings potential for citizens of 2024 (RPJMN or National Medium Development the World Bank’s member nations and ultimately Plan), chapter 4, which aims to develop “quali- those countries’ potential economic growth. ty and competitive human resources,” who are The index showed that on average globally “healthy and smart, adaptive, innovative, skilled, 56 percent of children born today will forgo more and of character.” In order to prosper, Indonesia than half their potential lifetime earnings because needs an education and training system that can governments were not investing adequately to en- enhance the well-being of its citizens, improve its sure their people are healthy, educated, and ready human capital, and achieve its economic and de- for an evolving workplace (box 1.1). Four Asian velopment goals. But the current education sys- countries top the global HCI list­ —­Singapore, Re- tem delivers insufficient student learning, resulting public of Korea, Japan, and Hong Kong SAR China, in a learning crisis. For example, while its science in that order. Indonesia ranked 87 out of 157, lower score on international tests has been increasing, than the average for Southeast Asia but higher its score of 396 is still below what is predicted by than the average for its income group. Indonesia’s income and 93 points below the OECD average (World Bank 2018a). To achieve the presi- Student learning remains low dent’s vision, a comprehensive change in the edu- Improving Indonesia’s human capital is a complex cation and training system is needed to deliver on and long-term agenda that must be at the core of its promise to support the country’s full participa- the government’s growth strategy. It is clear that tion in the fourth industrial revolution and harness this requires upgrading the education system at all the benefits of Indonesia’s demographic dividend. levels, from early childhood education through ter- tiary education and lifelong learning opportunities. Indonesia ranks 87th on the World Bank’s Each year 4.2 million Indonesians leave the ed- Human Capital Index ucation system, and the average student exits the While Indonesia has made significant progress in system at 16 years old with 10.9 years of education recent years, it is still hamstrung by a human cap- (SUSENAS 2018). This is the actual years of educa- ital deficit. The index measures the human cap- tion reported by individuals aged 20–25. Based on ital that a child born today can expect to attain improvements to the education system in the last by age 18. The rankings, based on health, educa- decades, a child entering the system today can tion, and survivability measures, assess the future expect to complete 12.3 years of education. But BOX 1.1 How Indonesia fares on the Human Capital Index The index is made up of five indicators: the prob- • Harmonized test scores: Students in Indone- ability of survival to age five, a child’s expected sia score 395 on a scale where 625 represents years of schooling, harmonized test scores as advanced attainment and 300 represents a measure of quality of learning, adult survival minimum attainment. rate (fraction of 15-year-olds who will survive to • Learning-adjusted years of school: Factoring age 60), and the proportion of children who are in what children actually learn, the “­ actual” not stunted because of malnutrition and other years children spend in school is only 7.8 factors. years. • Human Capital Index: A child born in Indo- • Adult survival rate: Across Indonesia, 85 per- nesia today will be 54 percent as productive cent of 15-year-olds will survive until age 60. when she grows up as she could be if she This statistic is a proxy for the range of fatal completed basic education of 14 years and and nonfatal health outcomes that a child enjoyed full health. born today will experience as an adult under • Probability of survival to age 5: 98 out of 100 current conditions. children born in Indonesia survive to age 5. • Healthy growth (not stunted) rate: 72 out of • Expected years of school: In Indonesia, a child 100 children are not stunted­ —­28 of 100 chil- who starts school at age 4 today can expect dren in Indonesia are stunted, and so at risk of to complete 12.4 years of school by her 18th cognitive and physical limitations that can last birthday. a lifetime. Source: Human Capital Index 2020. https://databank.worldbank.org/data/download/hci/HCI_1pager_IDN.pdf. 12  •  The Promise of Education in Indonesia many of those who complete secondary education Taking action to reverse the country’s human do not have the skills needed in the labor mar- capital shortfall, the new administration is im- ket and end up in low-paying occupations (World plementing an ambitious program of investing in Bank calculations based on SAKERNAS data).16 people to improve health, nutrition, and education Low skills reflect poor basic education and poor outcomes, all key for developing human capital alignment between education institutions’ curricu- and a more productive labor force. A large number la and labor market needs. More than 55 percent of young people are entering the labor market with of students do not achieve minimum mastery in the potential to boost overall productivity and eco- literacy and math, and when they engage in TVET nomic growth. The number of people in the work- and higher education, the curriculum tends to be force is expected to peak between 2020 and 2030, misaligned with today’s market needs or those ex- when the share of the working-age population and pected for Industry 4.0 (World Bank 2018b). the potential for increased output per capita will Despite the large increase in spending and be at their highest (figure 1.1). This demograph- resources, student learning remains low, and in- ic dividend is happening at the same time as the equality in learning outcomes is increasing. The number of school-age children starts a gradual learning gap between the bottom and top 50 per- decline, which will eventually free up resources to cent of students by household income increased improve education quality (SUPAS 2015).18 from approximately 0.7 years of learning in 2003 Although this opportunity is rapidly slipping to 0.8 years of learning in 2018.17 away as this “golden generation” leaves the ed- ucation system, an expanded range of lifelong Educating to reap the demographic dividend learning opportunities could sustain the dividend will pay off longer. If this opportunity is missed, Indonesia will Demographics will play an important role in Indone- likely not reap the predicted benefits of Industry sia’s future competitiveness. A population’s chang- 4.0 and will thus risk being saddled with a less pro- ing age structure can provide a powerful stimulus ductive workforce for the next generation. to economic growth and family welfare. The current Policies that extend access to education and demographic conditions in Indonesia can potentially build the right skills base can help Indonesia take support a “demographic dividend.” With 50 percent advantage of this demographic shift. Indonesia of Indonesians under the age of 30, the population has continuously attempted to reform its educa- is very young. A demographic dividend­ —­from hav- tion system from early childhood education to ing more workers in relation to dependents­ —­is al- higher education and upgrade teaching stan- ready materializing, and appropriate policies can dards. School attendance has grown significantly, ensure that the country maximizes benefits from it. but student learning remains below the levels of FIGURE 1.1 Indonesia population age structure, estimates and projections, 1950–2100 By age group By dependency ratio Population (millions) Population (millions) 250 100 Ages 15–64 Total dependency ratio 200 80 150 60 Child dependency ratio 100 40 Ages 0–14 50 20 Old-age Ages 65 and older dependency ratio 0 0 1950 1975 2000 2025 2050 2075 2100 1950 1975 2000 2025 2050 2075 2100 Source: UN Population Division, World Population Prospects: The 2012 Revision, as cited in Hayes and Setyonaluri (2015). Boosting learning: Indonesia’s education challenge  •  13 other countries in the region, compromising the provide services to 7.7 million students. The nonfor- country’s competitiveness in the global economy. mal vocational training system comprises more than Indonesia can now revisit the reforms with an eye 40,000 institutions under the supervision of MoEC, toward boosting learning for all­ —­to improve edu- the Ministry of Manpower, and other line ministries. cational quality and to halt a growing inequality of outcomes in order to adequately develop human The decentralization process has revealed weak capital and meet its objectives to inclusive growth checks and balances in education delivery and poverty reduction. Decentralization is well suited to a large system Since the early 2000s, Indonesia has increased such as Indonesia’s, but smaller districts tend education spending, up 200 percent in real terms to have low capacity to manage their education from 2002 to 2018 (World Bank calculation). Al- services, with negative impacts on spending effi- though Indonesia officially allocates 20 percent of ciency and student learning (Al-Samarrai 2013, its national budget to education, it is spending less World Bank 2018b). Access to basic services after as a percentage of GDP than comparable coun- decentralization, as measured by an index of five tries, largely due to low levels of revenue collection. indicators, increased from 48.8  percent in 2001 For example, Indonesia’s spending on education to 70.9 percent in 2011. Variation in access across was 3.3 percent of GDP in 2014, falling to 3.1 per- districts declined, and this was most prominent in cent in 2018, less than Malaysia’s 4.7  percent in junior secondary and senior secondary enrollment. 2017 and Vietnam’s 4.4 percent in 2016 (UNESCO But there were no improvements in education out- UIS Data 2018). For countries participating in PISA, comes at the national level. From 2000 to 2015, Indonesia is among those with the lowest educa- PISA scores improved slightly before declining in tion spending in purchasing power parity (PPP) 2018 to at or just above 2000 levels, depending terms (World Bank 2018a). on the subject (OECD 2019). The decentralization With an increased budget for education in 2005, process also revealed weak systems of checks and the national government launched a major pro- balances in education service delivery among dif- gram called BOS (Bantuan Operasional Sekolah, ferent actors at the central level and between or School Operational Fund), which has grown in central and subnational levels (Al-Samarrai 2013, value over time. The program injected funds direct- World Bank 2017). ly into schools on a per capita basis to keep chil- dren in school longer, provide them an education Coordinating multiple actors at multiple levels of better quality, and give schools some flexibility is difficult in managing funds. But because tax revenues are Two key ministries­— ­MoEC and MoRA­— ­oversee low, with a tax to GDP ratio of about 10.2 percent, formal education.19 But other ministries and in- the absolute value of spending per student remains stitutions are also involved, such as the Ministry lower than in other middle-income countries, even of Home Affairs (MoHA), the Ministry of National though the education budget is nominally fixed Development Planning (BAPPENAS), the Ministry at 20 percent of the national budget. This compli- of Administrative and Bureaucratic Reform of the cates the process of “boosting learning.” Republic of Indonesia (KemenPAN-RB), the Minis- try of Villages (KEMENDESA), and the Coordinat- A diverse and complex system ing Ministry of Human Development and Culture Indonesia’s education system is the 4th largest in (KEMENKO PMK), among others. Decentralization the world with 3.9  percent of the world’s student laws shifted the management of schools under population. As part of an overall decentralization MoEC to 34 provinces and 514 districts adminis- process throughout most of the government, Indo- tering some 340,000 schools and other learning nesia has since 1999 decentralized much of the edu- institutions across Indonesia’s more than 17,000 cation system so that it now involves multiple actors islands. Some 42,800 schools are classified as 3T at the central, provincial, district, and school levels (Terdepan, Terluar, Tertinggal, or border, outer- (Law No. 23/2014 on Regional Autonomy and Law most, underdeveloped). The districts’ highly var- No. 33/2004 on Fiscal Balance). The formal system ied institutional capacities and socioeconomic and collectively employs 3.3 million teachers educating geographic conditions affect their ability to de- 53.1 million children in grades 1 through 12 under liver education services effectively and efficiently the Ministries of Education and Culture (MoEC) and (World Bank 2017). Coordinating so many actors at of Religious Affairs (MoRA). An additional 231,446 different levels is not an easy task. early childhood education services support the The two ministries responsible for managing early learning of 7.4 million children (MoEC DAPO- the primary and secondary education system are DIK 2019). And 4,072 higher education institutions MoEC, with 84 percent of schools, and MoRA, with 14  •  The Promise of Education in Indonesia BOX 1.2 Madrasahs are an integral part of Indonesia’s education system About 18 percent of Indonesian schools (prima- national curriculum with supplemental religious ry and secondary) are madrasahs.1 Unlike MoEC curricula. schools, which are directly managed by local Nonpublic or private madrasahs2 (mostly reg- governments, the MoRA system is centralized. istered, community-based charities rather than MoRA students account for 15 percent of Indo- for-profit institutions) account for 92 percent of nesia’s primary and secondary enrollment (8 mil- MoRA’s schools and charge no fees to their stu- lion out of 53  million), with 92 percent of them dents (Law No. 20/2003 on the National Educa- studying in private madrasahs. tion System). They are part of “yayasan,” nonprof- MoRA maintains oversight over both pub- it foundations often established by prominent lic and private madrasahs across the country in community members or community associa- both urban and rural areas. Madrasahs enroll tions. Although managed and funded by these economically vulnerable students at a higher rate foundations, private madrasahs are eligible to than MoEC, and have a higher proportion of fe- receive financial support from both central and male students (Asadullah and Maliki 2018), mak- local governments, with the proportion of gov- ing madrasah education crucial to achieving the ernment funding for private madrasahs ranging government’s education goals. MoRA also man- between 40 and 75 percent. The total amount of ages formal and nonformal education for stu- public financing depends on district or provincial dents of four other recognized religions (Chris- government priorities and local understanding tianity, Kong Hu Cu or Confucianism, Hinduism, of regulations (ACDP 2013). MoRA exerts limited and Buddhism). authority over private education institutions, and Similar to the general education system, therefore enforcement of government regulations there are four levels of madrasah education: RA is challenging. This is a driver behind weakness- (Raudhatul Athfal, equivalent to kindergarten), es in personnel, management, and infrastructure, MI (Madrasah Ibtidaiyah, equivalent to primary found especially in private madrasahs, which limit level), MTS (Madrasah Tsanawiyah, equivalent the potential of the religious education system. to junior secondary), and MA (Madrasah Aliyah, Only 14 percent of private madrasahs are accred- equivalent to senior secondary and including ited A, while more than half of public madrasahs some vocational schools). Madrasahs use the receive an A accreditation (BANSM 2019).3 Notes 1. Based on MoRA Regulation No. 60/2015, a madrasah can be defined as a formal education system under MoRA that con- ducts general and vocational education with Islamic studies from primary to senior secondary levels (http://simpuh.kemenag .go.id/regulasi/pma_60_15.pdf). 2. Some private madrasahs charge high fees and cater to wealthy households, while many charge little to no fees and cater to poor households. The latter are usually initiated by local citizens to provide formal education to their communities and are often attractive due to the affordability of school fees, the proximity of schools to low-income households, the likelihood that their teachers will come from the local community, and the more lenient enrollment requirements­ —­which, for more elite schools, may include having birth certificates and achieving minimum graduation/entrance scores (Rahman 2016). 3. Based on the Education Law No. 20/2003, accreditation is a process to determine the eligibility of both formal and infor- mal institutions across all levels of education. Accreditation is conducted by a government agency called BAN–PAUD for early childhood education and development, BANSM for schools, and BANPT for higher education. The accreditation uses criteria available to the public. the remaining 16 percent (box 1.2). Private schools governments through fiscal transfers. Most of the play an important role, especially in MoRA and in public financing to the education sector comes higher levels of education. While only 12 percent from the central government, but nearly two-thirds of MoEC primary schools are private, the shares of education spending is managed by sub­ national increase to 42  percent in junior secondary and governments­—­provinces and districts.20 The nation- 51 percent in senior secondary. al government allocated Rp 492  trillion for educa- tion in 2019. Of this, Rp 52 trillion were for education Most public financing of education comes services under MoRA, while MoEC was allocated Rp from the center and is managed subnationally 36  trillion. The majority, Rp 308  trillion, was trans- To fund the education sector in a decentralized ferred to local governments (Presidential Regulation context, the central government supports local No. 107/2017, Presidential Regulation No. 129/2018), Boosting learning: Indonesia’s education challenge  •  15 and the remainder allocated to tertiary education Enrollments are up by more than and other education spending.21 These large local 10 million government transfers include allocations to: Since 2002, the total enrollment of students has • The general allocation fund (DAU), mostly for re- increased by more than 10  million (31 percent), current expenditures of the local governments mostly in secondary education. The average rate of including teacher salaries. DAU made up 34 per- increase between 2000 and 2015 was 0.26 years cent (Rp 168.8  trillion) of the total allocated at of education per calendar year­ —­ more than dou- the national level for general education in 2019.22 bling the rate 50 years earlier. Between 2002 and • Earmarked transfers (DAKs), including: 2017, enrollments of youth age 16–18 increased • Teacher professional and special allowances, from 50 percent to 71 percent.24 which make up 12 percent (Rp 56.8 trillion). The additional resources for the sector mandat- • The Bantuan Operational Sekolah (BOS) per ed by the Constitution financed the expansion of student school grant, which is 10 percent (Rp education services, especially for secondary edu- 51.2 trillion). cation, and expanded the number of teachers and • The transfers for preschools (BOP PAUD), at enhanced their welfare. The additional resources 1 percent (Rp 4.4 trillion). allocated to schools to support school-based man- • A special allocation fund for education agement reduced the financial burden on families construction (DAK–Fisik), at 3  percent (Rp and promoted enrollment. Complementing these 16.8 trillion). resources were direct transfers to students of poor Tertiary education (see chapter 6), including families through the Program Indonesia Pintar (PIP). teacher training (see chapter 4), has been adminis- National statistics show that the enrollment tered by the Ministry of Research, Technology, and rate for 13–15-year-olds increased from 88  per- Higher Education (MoRTHE), but in the new gov- cent of students in 2011 to almost 95 percent just ernment, higher education returned as a Director- four years later (Statistics Indonesia 2015). This in- ate General of MoEC. crease is consistent with the improvement in PISA Since the early 2000s, Indonesia has imple- coverage, a measure of the proportion of 15-year- mented a broad range of education reforms, in- olds in a country who are eligible to sit for the cluding increasing education spending, decen- PISA assessment­ —­ that is, those who are enrolled tralizing much of the education system,23 and in a school at grade 7 or above­ —­ which doubled improving the achievement of teacher qualifica- between 2003 and 2018. From 2015 to 2018, the tions. These reforms have expanded access to edu- portion of 15-year-old students represented in cation, particularly among disadvantaged children. the PISA sample grew from 58 percent to 85 per- The additional resources for the sector mandated cent (OECD 2019).25 And between 2002 and 2017, by the constitutional amendment of 2002 financed school enrollments among youth ages 16 to 18 the expansion of education services and increased rose from 50 percent to 71 percent. This increase the number of teachers for new schools and class- was larger among students in the lowest income rooms, as well as for kindergartens and other early quintile, for whom participation rates almost dou- childhood programs (World Bank 2018b). bled from 32 percent to 57 percent. As a result, the gap in school enrollment in the 16–18 age group TABLE 1.1 Reasons children 16–18 are not in school between the poorest and richest quintiles came down from 37 to 25 percentage points. Indonesia These achievements should not, however, de- Main reason Male Female Total tract attention from the large number of children Insufficient funds 33.0 30.7 32.0 still excluded from school (29 percent for children Working 18.7 13.7 16.5 ages 16–18), for reasons of poverty but also of early Marriage 0.4 12.3 5.6 marriage, disability, and remoteness (table 1.1). National programs and local solutions address- Taking care of the household 0.4 3.7 1.8 ing these exclusionary factors, such as the PIP for Assume that education is enough 4.3 5.2 4.7 children of poor families, are needed to further ex- Embarrassed because of economy 2.9 1.9 2.5 pand access to Indonesian education. School is far 3.7 3.3 3.5 Disabled 5.4 4.8 5.1 But the system still lags behind its Others 31.3 24.5 28.3 promise and potential Total 100 100 100 Despite the achievements­ —­ more financing, great- er access, decentralized governance­ —­education is Source: World Bank based on SUSENAS 2017. still lagging behind in fulfilling its potential in many 16  •  The Promise of Education in Indonesia FIGURE 1.2 Student enrollments and numbers of teachers, 2009/10 to 2016/17 MillionsPercent Students Growth of teachers Elementary Junior Senior Elementary Junior Senior secondary secondary secondary secondary 30 100 20 50 10 0 0 –50 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 Source: Developed using data from Education Statistics in Brief 2017/2018 and Summary of Education Statistics 2010/2011 (MoEC). ways. It is these “lags” that must be resolved to while others, often in the east and far west, per- “boost learning” in Indonesian education. form poorly (box figure 1.3.1). The difference between the average of the three Indonesia made the right moves but has to top performing provinces and the three lowest work differently to increase learning performing provinces on the grade 12 national Most students do not meet the national learning exam (SMA, senior secondary schools) is 21 points targets Indonesia has set for itself. Measures of on a 100-point scale. Only 4 of the 34 provinces learning show that 40 percent of second graders had an average grade 12 score above the minimum cannot recognize two-digit numbers, and 50 per- passing score of 55. The results are even lower for cent of fourth graders cannot arrange a series of the grade 9 exam (SMP, junior secondary schools), four-digit numbers by value (World Bank data and for technical and vocational schools (SMK, 2011). And learning remains low as students move grade 12 exam). Districts with higher incomes in across grades­ —­both in absolute terms, below na- large urban centers and with greater implementa- tional targets, and in relative terms, when com- tion capacity tend to do better than lower income, pared with neighboring countries (World Bank more rural districts with lower implementation ca- 2018b). Taking into account the recent trend in pacity (World Bank 2013). PISA scores, it will take radical reform for Indonesia to reach the average OECD levels. Students consistently fail to meet both To realize its human capital potential, Indonesia the country’s own learning standards and must now ensure that all students meet basic met- international standards rics for reading and writing. They must also devel- op 21st-century skills, those valued in the job mar- National standards ket such as creativity, communication, and critical The national exam at the end of primary school thinking, as well as grit and other sociobehavioral was transformed into a locally designed and ad- skills that can help students succeed in the work- ministered test (USBN), and the UN (Ujian Nasion- place (World Bank 2019b). al) or national exam for grades 9 and 12 has not been a graduation requirement since 2015 (MoEC Learning poverty and learning inequality are Regulation No. 58/2015). The average score across both high all subjects and school types for the national end-­ Learning inequality is high between regions, be- of-­secondary exam was 49.5 points of 100 in 2018; tween schools, and within schools (box 1.3). Some the minimum passing score is 55 (MoEC 2019). This provinces in Indonesia, especially those in the cen- means that students, on average, fail the summa- tral region, perform well on the national exam, tive secondary exam. Boosting learning: Indonesia’s education challenge  •  17 BOX 1.3 Learning poverty and learning inequality Learning poverty is the share of children in a representative test of student learning outcomes country who are either not enrolled in school or at the primary level (World Bank 2019a). Learn- not proficient in reading at age 10. Indonesia’s ing inequality is the difference in achievement learning poverty rate is estimated at 35 percent, between the poorest quintile and the richest though the data used for this calculation are quintile. In Indonesia, this difference is large, with from 2011 since there is no more recent nationally PISA data showing that the gaps are growing. BOX FIGURE 1.3.1 Only 4 of the 34 provinces had an average grade 12 exam score above the minimum passing score of 55 in the year 2019 Maluku Papua Maluku Utara Minimum Sulawesi Barat passing score Aceh Nusa Tenggara Timur Sulawesi Selatan Sulawesi Utara Sulawesi Tengah Nusa Tenggara Barat Sulawesi Tenggara Papua Barat Gorontalo Jambi Sumatera Utara Kalimantan Barat Kalimantan Tengah Kalimantan Utara Lampung Bengkulu Sumatera Selatan Riau National Sumatera Barat Jawa Barat Kalimantan Selatan Kepulauan Bangka Belitung Banten Bali Kalimantan Timur Jawa Timur Kepulauan Riau Jawa Tengah DI Yogyakarta DKI Jakarta 0 20 40 60 80 Score Source: World Bank, based on Ministry of Education and Culture data 2019. https://hasilun.puspendik.kemdikbud.go.id. Early grade reading assessments Overall, the assessment revealed that students The March–April 2014 National Early Grade Read- tended to be reading at relatively high levels at ing Assessment measured the basic skills that a the end of grade 2­ —­with particularly impressive student must possess to eventually be able to read performance in the Java and Bali regions. Only fluently and with comprehension.26 percent of these second-graders could be 5.9  18  •  The Promise of Education in Indonesia characterized as nonreaders. Conversely, nearly students from low socioeconomic conditions into half of the students (47  percent) could be char- the education system (table 1.2). But some of the acterized as reading fluently with comprehen- gains on PISA registered to 2015 were lost be- sion. And more than one-quarter of the students tween 2015 and 2018. As one might expect, its (26 percent) were reading with comprehension, al- scores are far below those of OECD countries and beit at a less-than-fluent pace. East Asian high-income countries. But even with But the results were not consistent across re- the average for Southeast Asian developing coun- gions, gender, or categories of student demo- tries, Indonesia’s performance was lower in read- graphics. For example, students from Java and ing (by 14 points), math (by 25 points), and science Bali significantly outperformed all other regions (by 13 points) (World Bank 2018a). on oral reading fluency­ —­ outscoring the national The Trends in International Mathematics and average by more than 7 correct words per minute. Science Study (TIMSS) assessment in 2015 showed And although these results are more positive than similar results, with Indonesia ranking among the those of the Ujian Nasional and PISA (see below), lower-achieving countries. measuring basic skills at an early age reveals stark differences by characteristics of the students Learning is “flat” tested. Learning across grades is relatively flat. Using the There is little evidence of effective support or Indonesia Family Life Survey, a team of interna- pressure to improve teaching and learning in class- tional researchers led by Amanda Beatty (2018) rooms based on these results, especially for the found that Indonesia had achieved high levels of lowest performing students and regions. Instead, school enrollment during 2000–14, with particular the system has moved away from testing and ac- gains concentrated in junior secondary and senior countability for delivering student learning. While secondary school. But they also found a large gap some decentralization of assessment is in line with between students’ mathematical ability and what the broader political process of decentralization, they were supposed to know based on the educa- Indonesia’s students need a national assessment tion curriculum. Absolute learning levels as well as in at least one grade in primary school to ensure marginal learning levels were low, meaning that that those who are not learning foundational skills students were learning little as they are promot- in reading and math are prioritized for support. In ed from grade to grade. Even secondary school response to the poor results, the education system graduates struggled to correctly answer numer- at all levels should focus on improving learning. acy problems that they should have mastered in primary school. They also found that learning was International standards decreasing slightly over time. Although based on a Another example of Indonesia’s “lagging behind” narrow dataset, children with low numeracy were in reaching standards is in international compari- more likely to live in eastern Indonesia, in rural sons of human capital. In such comparisons, Indo- areas, and be older and male. nesia continues to rank lower than it should given other indicators of education financing and nation- TABLE 1.2 Indonesia’s PISA scores, 2000–18 al development. As part of an enduring commitment to evalua- Reading Math Science tion and improvement, Indonesia has participated 2000 371 367 393 in all major international tests since 1990, includ- 2003 382 360 395 ing the OECD’s Programme for International Stu- 2006 393 391 393 dent Assessment (PISA) and Trends in Internation- 2009 402 371 383 al Mathematics and Science Study (TIMSS). 2012 396 375 382 OECD’s Programme for International Student 2015 397 386 403 Assessment (PISA) 2018 shows that Indonesia con- tinued to lag behind the OECD and East Asia and 2018 371 379 396 Pacific averages, ranking 73 of 78 on reading (score OECD 2018 487 489 489 371), 73 of 79 on mathematics (score 379), and 70 East Asia and Pacific 2018a 472 490 487 of 79 on science (score 396). Indonesia’s scores did Southeast Asia developingb 385 404 409 increase from 2012 to 2015: science scores among 15-year-old students rose by 21 points. Indonesia Source: World Bank Indonesia 2018 PISA Brief. Notes also showed strong gains in mathematics between a. East Asia and Pacific includes high-income countries in East Asia. 2003 and 2015, coinciding with the rapid expan- b. Southeast Asia developing countries include Brunei Darussalam, Indonesia, Malay- sion of enrollment in Indonesia and incorporating sia, Philippines, and Thailand. Boosting learning: Indonesia’s education challenge  •  19 Teaching quality and deployment remain Strengthening human capital is crucial for major challenges Indonesia’s future success The number of teachers grew by 30  percent be- A final example of how Indonesia is lagging behind tween 2003 and 2015, while the number of stu- some of its neighbors­ —­and therefore needs to dents rose by 25  percent, reducing student–­ boost learning­ —­relates to employability and com- teacher ratios. But lower student–teacher ratios petitiveness. Indonesia’s long-term growth poten- have not increased learning, and teachers em- tial and quality of life depend greatly on the quality ployed in rural and remote regions continue to of its human capital. Strengthening human capital be the least qualified. With decentralization, the is crucial for Indonesia’s future success so that it capacity of MoEC to do much about these geo- can provide the skills to fully participate in Industry graphic disparities is limited. Recent attempts to 4.0 and, through a higher-skilled population, har- solve this problem­ —­ such as Guru Garis Depan, ness the benefits of its demographic dividend. which has attempted to transfer teachers to re- Low human capital development has led to low mote, border, and underdeveloped areas­ —­ have labor productivity, limited contributions of educa- not succeeded as planned. But further regulations tion to economic growth, and lower overall competi- are being discussed to make employment in rural tiveness. Indonesia’s labor productivity is one-fourth areas more attractive and obligatory. of that in Malaysia, and the estimated contribu- Another challenge relates to the frequent reli- tion of education to long-term economic growth is ance by teachers on rote learning by students. Ev- 1.8 percentage points a year lower than in Vietnam. idence from the 2011 TIMSS survey suggests that Low-quality education affects employment teachers of mathematics and science in Indonesia opportunities. Without significant improvement are more likely to be leading a class by rote learn- in the education system, companies will find it in- ing than is evident in many other countries. creasingly hard to hire professional and manage- rial staff, and the country will fail to realize its eco- Inequality is still a major problem nomic potential. An inclusive education system attempts to remove Data show that 65 percent of all new jobs creat- all barriers to schooling and learning. Indonesia ed between 2011 and 2016 were in low-productivity can improve its education system only to the ex- sectors. Comparisons of productivity, measured as tent it addresses exclusions and inequity. This in- value added per worker, show that worker produc- cludes exclusions related to location (urban–rural– tivity in Malaysia (US$15,800) is about four times remote, or across different regions and islands), that in Indonesia (US$3,600), and productivity in poverty, gender, disability, and language/ethnicity Thailand (US$5,300) is 1.5 times that in Indonesia. (where the home language is different from the Lower worker productivity affects Indonesia’s school language). About 0.26 percent of children aggregate level of competitiveness. In an analysis ages 7–18 have been identified as having a physi- using the 2015 PISA results, if Indonesia were to in- cal disability, and 0.48 percent as having either a crease its PISA scores by 25 points in the following physical or mental disability (table 1.3). The actual 12 years, the estimated human capital productivity numbers are likely much higher, given the limited increase would add 0.08 percentage points to its capacity to identify these children. annual long-term economic growth rate by 2027 and 0.23 percentage points by 2040. If Indonesia were to launch a more aggressive reform program aimed at increasing learning outcomes and the PISA scores were to increase by 100 points, Indone- TABLE 1.3 Students with disabilities sia’s score would then be close to the OECD aver- age and Vietnam’s 2015 PISA score. The higher ed- Age category ucation quality would add 0.30 percentage points Description 7–12 years 13–15 years 16–18 years Total to long-term growth by 2027 and 0.90 percentage Population 28,364,579 13,699,643 13,643,983 55,708,205 points by 2040 (de Ree 2016). What is important is Disableda 73,625 35,745 36,594 145,604 not the test score itself, but the systematic observa- Disabledb 129,923 65,047 70,169 265,139 tion about how improvements in human capital can contribute to overall economic growth. Source: Afkar, Yarrow, Surbakti, and Cooper 2020. Notes The process of reform in Indonesia a. Disabled here means that a student has a sensory (sight or hearing) or physical mo- Overall, Indonesia’s education reforms have ad- bility disability. b. Disabled here means that a student has either a physical disability as defined above dressed many of the right issues, but implementa- or a “mental” (cognitive or socioemotional) disability. tion challenges have led to uneven results. 20  •  The Promise of Education in Indonesia Reforms were generally in the right direction, were designed in a largely top-down fashion, with but their implementation was challenging and little consultation in MoEC itself or with other lev- didn’t yield the intended results els and actors of the system (for example, teachers, Most elements of earlier reforms were aligned in the case of both a complex professional devel- with international best practices, had financial and opment process and the new and hurriedly devel- technical support from development agencies, oped curriculum released in 2013). As a result, the and had strong potential to improve Indonesian reforms were not “owned by” those most affected education outcomes. Education reforms included by them. This lack of ownership sometimes ex- increasing financing for education, enhancing the tended to indifferent or even resistant district of- participation of local actors in sector governance, fices that report only indirectly to MoEC. In such a strengthening accountability, improving the quali- context, and perhaps because of the exigencies of ty of teachers, promoting the merit-based appoint- politics, there was little time to build the base and ment of principals, ensuring student preparedness change the mindset needed to help ensure that when entering schooling, revising the curriculum, these reforms would proceed smoothly (Shaeffer and improving the student assessment system. Yet and Arlianti n.d.). these reforms have not produced the expected re- Second, the system’s complexity leads to a lack sults. And without adding accountability measures of alignment among its various actors and a lack to the reforms and focusing very clearly on learn- of clarity about who is ultimately accountable for ing outcomes, there is little chance for the invest- its results. An important factor in this complexity ments to provide returns in remarkably improved is decentralization. The process in Indonesia has outcomes (Kurniawati et al. 2018). revealed challenges linked to capacity as well as weak systems of checks and balances in educa- Six implementation challenges tion service delivery. For example, central govern- Significant implementation challenges prevent- ment data requests from provinces and districts ed some of the prior policy reforms from reaching don’t closely correlate with student learning. And their full potential. First, some of the major reforms schools, districts, and provinces control most of Boosting learning: Indonesia’s education challenge  •  21 the inputs that determine learning. That makes it and potentially supportive development partners difficult for provinces and districts to know how to (Shaeffer and Arlianti n.d.). focus their discretionary spending (see chapter 5). Fourth, the good intentions of a reform (and the Third, the reforms often lacked sustained, seri- rhetoric surrounding it) often do not translate to ous, and technically supported processes. Time is the real world of teaching and learning. Even for needed not only in developing a reform but also in reforms that appear to be more successful, there is ensuring its sustainability. The reforms were iden- a common belief that many of their resulting good tified too closely with specific ministers, and senior practices do not really penetrate into the class- officials were quickly terminated, suspended, or room but rather remain at the edges (“pinggir”). had their jobs seriously revised by their successors.27 This relates partly to the lack of understanding at Moreover, a successful reform must go beyond rhet- lower levels about the essential core and compo- oric. It is easy to prove reform has occurred or is oc- nents of the reform, partly to the weak capacity of curring through political platforms, policy papers, many local offices and principals, and partly to the declarations, regulations, and memorandums of power of local authorities to simply neglect the im- understanding (at different levels), and even Perpres plementation of “recommendations” from MoEC and Permen in Indonesia. But many reforms never (Al-Samarrai 2013). go beyond regulations and rhetoric into the difficult In sum: Student learning should be a focus and work of designing a credible reform and managing, underlying driver in improving Indonesia’s educa- implementing, financing, training for, monitoring, tion system, as laid out in the 2018 World Develop- and evaluating its individual components. All of ment Report on education. Based on the context, these processes require a degree of local technical challenges, and achievements (“lags”), the rest of expertise which either has not been available, or in this report will focus on learning and how, for every the rush to completion or because of political ex- aspect and level of Indonesia’s education system, igencies, has not been appropriately used (World the question should be asked: What can be done Bank 2018b). by the government to shift the focus to improve The continuous professional development re- learning? Improving learning is about the context form of 2015–17 is a case in point. Meant as a and how policies and interventions are implement- periodic test of teacher competencies and per- ed. Large improvements in Indonesia’s human formance, it was developed with very little con- capital depend on shifting how the education sys- sultation with, and expertise from, lower levels of tem operates, specifically aligning and strength- the system and even from peers in the ministry ening the capacities, effectiveness, autonomy, and 22  •  The Promise of Education in Indonesia accountability of teachers, principals, and local, re- these grades and adequate materials, where gional, and national actors and institutions. possible in the child’s mother tongue. • Education technology (EdTech) initiatives to Recommendation 1: Ensure that equitably increase student learning can be sup- students reach at least minimum ported in MoEC and MoRA schools through learning and development standards partnerships with the private sector. These pri- at each level of the system vate sector options can complement existing • Focus on the quality of learning and provide public sector online learning resources and be more support to low achievers are key to im- tested to identify successful and cost-effective proving the country’s overall performance. This approaches that can be used at scale. There is essential to eliminate learning poverty and is a need for a clear vision for the role of cur- achieve Sustainable Development Goal 4. riculum-aligned EdTech use in classrooms by • Guide and support learning with an emphasis teachers, which could focus on rural and re- on helping teachers improve, on measuring out- mote areas where highly skilled instruction is in comes, and on stressing 21st century skills. short supply. Developing EdTech with a focus • Support students to achieve at least a minimum on lower-income and rural and remote areas standard of learning and development at every will increase equity and mitigate the risk that level of education. technology may primarily benefit urban schools with high-speed internet connectivity. The les- What can be changed or improved? sons learned in the use of online learning and distance education during the COVID–19 crisis Focus more on student learning and outcomes should be useful in regard to further developing For Indonesia to reach its education goals, it can EdTech training, connectivity, and curriculum. shift from relying primarily on additional resourc- • In addition to the central content required of es to focus more directly and explicitly on improv- any education system, 21st-century skills for In- ing student learning and outcomes at all levels of dustry 4.0­ —­in such areas as communication, the system. The results of both national and in- —­ collaboration, and critical thinking­ can be ex- ternational exams indicate that action is needed panded in a revised curriculum and then taught urgently. early on and reinforced throughout the lifelong • The foundations for later learning should be learning process. Given its expected impact on provided in expanded and improved early child- the economy and lives of Indonesians, climate hood development programs. These founda- change would be an important topic to feature tions can be built upon in later grades to ensure across disciplines. mastery of literacy and numeracy as part of • At later stages, particularly for vocational ed- continuous transition between these programs ucation, partnerships with the private sector and primary schools. (The actions for how this is can ensure that the skills taught to students re- to be done are elaborated in chapter 2.) spond to market needs. A revised governance • MoHA has taken important steps to sup- structure is needed to promote private sector port literacy education (MoHA Circular letter participation in the TVET system. No. 420/9239/SJ 2018 on Implementation of • Access to lifelong learning opportunities must School Literacy Education in the Regions). Re- be increased by improving the quality of the latedly, the Innovation for Indonesia’s School supply of these opportunities and incentivizing Children (INOVASI) program identified three the demand so that low- and middle-skilled em- main problems contributing to students’ poor ployees can get training for continuing employ- performance and weak literacy levels: the lack ment. Systematic experimentation and evalua- of a curriculum or methodology for teachers to tion of EdTech are needed to help achieve rapid teach reading in the early grades as it is false- reskilling and upskilling at scale. ly assumed that all children entering grade one are already able to read; the lack of teaching What are the options to implement this knowledge and skills in how to teach reading change? and literacy; and the limited access to appropri- ate reading material, especially in remote areas Learning should be guided and supported but also across the country in general.28 Resolv- Learning starts with the interaction between stu- ing these problems requires changes in training dents and teachers in schools but must be guided early grade teachers in appropriate knowledge and supported by districts, provinces, and the cen- and skills based on a revised curriculum for tral government. No magic pill will improve student Boosting learning: Indonesia’s education challenge  •  23 learning throughout the system, but things can be • EdTech also holds promise for learning for done to support learning: working adults to reskill and upskill. MoEC and • MoEC can reduce and revise its National Edu- MoRA can work with districts, provinces, and cation Standard (NES) indicators to focus more the private sector to evaluate different models on measurable and observable aspects of the and support integration of those that are shown education process that are more closely linked to be cost-efficient and effective in increasing to learning. This will send a system-wide signal learning. that learning is important. And it can provide in- Putting the focus on quality (general student formation to schools about where they should learning and school performance) and equity (sup- focus their attention to improve learning. port to low-performing students and schools) is • Local supervisors (pengawas) and MoEC’s prov- the best way to boost learning and fulfill the prom- ince-level education quality assurance (Lemba- ise of Indonesian education. ga Penjaminan Mutu Pendidikan­ —­LPMP) can work together systematically with the prov- References ince-level education offices, provincial and ACDP (Analytical and Capacity Development Partnership). district education offices (Dinas), school com- 2013. Free Basic Education Strategy Development: mittees, and principal/teacher working groups Volume 1 Final Report, Jakarta: Education Sector Ana- to plan budget allocations and activities to im- lytical and Capacity Development Partnership. prove student learning in each school. There Afkar, R., N. Yarrow, S. Surbakti, and R. Cooper. 2020. In- is no one-size-fits-all solution, but by working clusion in Indonesia’s Education Sector: A Subnational together, local teams will be better able to find Review of Gender Gaps and Children with Disabilities. local solutions to improve learning. MoEC can Policy Research Working Papers. Washington, DC: make technical support available to regions that World Bank. https://doi.org/10.1596/1813–9450–9282. are struggling, and MoHA can require detailed Al-Samarrai, S. 2013. Local Governance and Education learning improvement plans with results-based Performance: A Survey of the Quality of Local Educa- budget allocations from each level of subna- tion Governance in 50 Indonesian Districts. Washing- tional government down to the school. While ton, DC: World Bank. http://documents.worldbank.org/ centralized, MoRA can also work in a similar curated/en/794841468044380862/Main-report. way to provide additional support to lagging Asadullah, M. N., and M. N. Maliki. 2018. “Madrasah for regions. Girls and Private School for Boys? The Determinants of • MoEC can revise the national curriculum to School Type Choice in Rural and Urban Indonesia.” In- focus more on skills and competencies need- ternational Journal of Educational Development 62(C): ed in the labor market. Such a focus, of course, 96-–11. must be based on mastery of literacy and nu- BAPPENAS (Ministry of National Development Plan- meracy, which requires not only a proper curric- ning of the Republic of Indonesia), BPS (Badan ulum but also teachers trained in how to imple- Pusat Statistik), and UNFPA (United Nations Pop- ment it. Curricular reform is notoriously lengthy ulation Fund). 2018. Indonesia Population Projec- and expensive, but the process is expected to tion 2015–2045. BAPPENAS, BPS, UNFPA. https:// start soon. Overall coherence of the curricu- indonesia.unfpa.org/en/publications/indonesia lum, as well as sequencing between grades and -population-projection-2015–2045–0. forward planning for textbook supply, teacher Beatty, A., E. Berhout, L. Bima, T. Coen, M. Pradhan, and training, and assessment mechanisms, is essen- D. Suryadarma. 2018. “Indonesia Got Schooled: 15 tial to achieve better results than the 2013 cur- Years of Rising Enrolment and Flat Learning Profiles.” riculum reform process. RISE Working Paper 18/026, Research on Improving • MoEC and MoRA can support the evaluation Systems of Education, Oxford, England. of different approaches for integrating EdTech de Ree, J. J. 2016. “How Much Teachers Know and How into schools at the province and district level Much It Matters in Class: Analyzing Three Rounds of and use the results to determine what programs Subject-specific Test Score Data of Indonesian Stu- are most effective for improving learning at the dents and Teachers.” Policy Research Working Paper least cost. MoEC and MoRA can articulate a vi- WPS 7556, World Bank, Washington, DC. sion for the equitable use of curriculum-aligned 2001.  Duflo, E.  “Schooling and Labor Market Conse- student learning support by teachers and en- quences of School Construction in Indonesia: Evidence courage provinces and districts to provide the from an Unusual Policy Experiment.” American Eco- necessary school infrastructure, teacher train- nomic Review 91 (4): 795–813. ing, and safety and security before rolling out Hayes, A., and D. Setyonaluri. 2015. “Taking Advantage major technology initiatives. of the Demographic Dividend in Indonesia: A Brief 24  •  The Promise of Education in Indonesia Introduction to Theory and Practice.” Policy Memo, SAKERNAS (Survei Angkatan Kerja Nasional). Various United Nations Population Fund, Jakarta. years, Badan Pusat Statistik. Kurniawati, S., D. Suryadarma, L. Bima, and A. Yusrina. UNESCO Institute for Statistics data. Various years. 2018. “Education in Indonesia: A White Elephant?” World Bank. 2013. Local Governance and Education Per- Journal of Southeast Asian Economies 35: 185–199. formance: A Survey of the Quality of Local Education MoEC (Ministry of Education and Culture). Summary of Governance in 50 Indonesian Districts. Jakarta: World Education Statistics 2010/2011. http://publikasi.data. Bank. kemdikbud.go.id/index.php?thn=all. ———. 2017. Indonesia Economic Quarterly, December ———. 2019. Data Referensi Pendidikan. https://referensi. 2017: Decentralization that Delivers. Washington, DC: data.kemdikbud.go.id/index21.php. World Bank. https://openknowledge.worldbank.org/ ———. 2019. DAPODIK (Data Pokok Pendidikan Dasar bitstream/handle/10986/29726/125302-WP-P165633 dan Menengah). -PUBLIC-december-2017.pdf. OECD (Organisation for Economic Co-operation and De- ———. 2018a. Growing Smarter: Learning and Equitable velopment). 2018. OECD Economic Forecast Indone- Development in East Asia and Pacific. Washington, sia. http://www.oecd.org/economy/outlook/economic DC: World Bank. doi:10.1596/978-1-4648-1261-3. -forecast-summary-indonesia-oecd-economic-outlook Indonesia Economic Quarterly: Learning ———. 2018b.  .pdf. More, Growing Faster. June. Jakarta: World Bank. https:// ———. 2019. PISA 2018 Results (Volume I): What Students openknowledge.worldbank.org/handle/10986/29921. Know and Can Do. Paris: PISA, OECD Publishing. ———. 2018c. “Why Do Indonesian Adolescent Boys have https://doi.org/10.1787/5f07c754-en. ­ APGIL Pol- Poorer Schooling Outcomes than Girls?” E Rahman, M. A. 2016. “Low-Cost Private Schools: A Case icy Brief No. 5, World Bank, Washington, DC. http:// Study in Jakarta.” Center for Indonesian Policy Studies, documents.worldbank.org/curated/en/168621543604 Jakarta. 051631/. Schaeffer, S., and R. Arlianti. n.d. [info to come] ———. 2019a. Ending Learning Poverty: What Will It Schaner, S., and S. Das. 2016. “Female Labor Force Par- Take? Washington, DC: World Bank. https://open ticipation in Asia: Indonesia Country Study.” ADB Eco- knowledge.worldbank.org/handle/10986/32553. nomics Working Paper Series No. 474, Asian Develop- ———. 2019b. World Development Report: The Changing ment Bank, Manila, Philippines. Nature of Work. Washington, DC: World Bank.  https:// Statistics Indonesia. 2015. Badan Pusat Statistik (BPS), the www.worldbank.org/en/publication/wdr2019. Central Bureau of Statistics, Jakarta, Indonesia. SUPAS. (Survei Penduduk Antar Sensus). 2015. Government laws and regulations SUSENAS (Survei Sosial Ekonomi Nasional). Various years, Law No. 20/2003 on the National Education System. http:// Badan Pusat Statistik. simkeu.kemdikbud.go.id/index.php/peraturan1/8-uu Boosting learning: Indonesia’s education challenge  •  25 -undang-undang/12-uu-no-20-tahun-2003-tentang MoRA Regulation No. 60/2015 on Alteration of MoRA Reg- -sistem-pendidikan-nasional. ulation No. 90/2013 on the Implementation of Madra- Law No. 33/2004 on Fiscal Balance. https://peraturan.bpk. sah Education. http://simpuh.kemenag.go.id/regulasi/ go.id/Home/Details/40770/uu-no-33-tahun-2004. pma_60_15.pdf. Law No. 23/2014 on Regional Autonomy. https://peraturan Presidential Regulation No. 107/2017 on Details of the State .bpk.go.id/Home/Details/38685/uu-no-23-tahun Budgets for Fiscal Year 2018. https://peraturan.bpk. -2014. go.id/Home/Details/73407/perpres-no-107-tahun-2017. MoEC Regulation No. 58/2015 on Administering School/ Presidential Regulation No. 129/2018 on Details of the State Madrasah Exams or Other Equal Forms. http://simpuh. Budgets for Fiscal Year 2018. https://peraturan.bpk. kemenag.go.id/regulasi/permendikbud_58_15.pdf. go.id/Home/Details/99155/perpres-no-129-tahun-2018. MoHA Circular Letter No. 420/9239/SJ 2018 on Imple- mentation of School Literacy Education in the Regions. Website http://101.255.10.236/client/uploads/hukumpedia/ https://www.ethnologue.com/. SE_420–9239-SJ_thn_2018_Gub.pdf. 26  •  The Promise of Education in Indonesia Boosting learning: Indonesia’s education challenge  •  27 CHAPTER 2 Starting early with readiness to learn F amilies and communities need to support the is becoming a more prominent priority in educa- development and learning of young children tion. Since 2010, policy has progressed with the long before they enter compulsory education. Grand Design, a blueprint for ECED building on a Poor health, malnutrition, and delays and disabili- program dating back to 2001. The Grand Design ties must be identified early, and attempts to miti- set outcomes, targets, and principles for expand- gate them made through early childhood interven- ing early-years education and care from 2011 to tions. Although children’s bodies are resilient, and 2025 as part of an ambitious and far-reaching set catching up after early childhood may be possible of goals to be realized by 2045. when inputs to their growth and development The early years of life offer a special window for improve, it is difficult to completely reverse the ef- societies to make investments in their children both fects of exposure to risk factors after the first few for their own well-being and to help ensure later years of a child’s life. economic returns to these investments. Children Despite sweeping education reforms over the cannot thrive with stunted bodies and brains, and past two decades­ —­ increasing resources devoted early gaps in learning and skills trap them in lower to education, adjusting policy incentives, and ex- developmental trajectories from which it becomes panding school access, the quality of learning in increasingly difficult to escape. OECD work on the Indonesia appears to have improved only slight- social outcomes of learning shows that high-quali- ly. Part of the problem is that many children enter ty early childhood education and care­ —­ in addition school unprepared to learn. Inadequate early re- to very early interventions in family and community sponses to the challenges created by delays and services­—­ bring about a range of social benefits to disabilities, poverty, remote and rural location, the individuals. These include better health, less high- difference between home and school languages, risk behavior (particularly in adolescence), greater and the lack of facilities and trained personnel for productivity, higher future earnings, and stronger early learning hold back education outcomes in “civic and social engagement” throughout their Indonesia. lives (OECD and ADB 2015). In fact, money spent Having largely succeeded in achieving univer- on preschool services generates a higher return sal basic education and having begun to under- on investment than the same spending on later stand the rationale for ECED in improving school education (figure 2.1). Efforts to improve young achievement, policymakers in Indonesia are seek- children’s lives can therefore significantly increase ing to expand the opportunities for children to ac- individual and national productivity while simulta- cess higher quality learning and care in the early neously reducing social and economic inequality. years focusing on their physical, socioemotional, and intellectual development. Readiness to learn ECED has not always been a policy priority in Falling behind in the various domains of devel- Indonesia, but there are strong indications that it opment is linked to the concept of “readiness to FIGURE 2.1 Investments in high-quality services during children’s early years pay off Investments in the early years Brain development Schooling Job training Rate of return to investment in human capital Preschool School Postschool Age Source: Heckman and Maserov 2007, World Bank 2018b. Starting early with readiness to learn  •  29 learn” (Conti, Heckman, and Urzua 2010; Cunha In addition to children being ready to enter and Heckman 2007; Gunnar and Fernald 2009; schools, schools must also be ready to receive chil- Heckman and Kautz 2012; Heckman, Pinto, and dren. First of all, they should be of good quality in Savelyev 2013; Schweinhart 2005; Young and Mus- terms of infrastructure, teachers, learning materials, tard 2007). Gaps in children’s readiness to learn and teaching methods. To ensure adequate read- appear early and can have long-term consequenc- iness of the school to enroll children and ease the es. For example, if children enter primary school transition from one level to another, the pedagogy, without the requisite language skills, such as rec- curriculum, and environment of the school should ognizing sounds and letters, or are unfamiliar with be similar to that of preschool (child-centered, play- numbers, they will quickly fall behind, likely lead- based, with a seamless curriculum from one level to ing to lifelong gaps in achievement. If children do another). The history and assessments of children’s not learn to read fluently in the early grades, it will development and learning during any preschool ex- be more difficult for them to develop the skills to perience should also be transmitted to the primary succeed later in school or, more important, in any school­—­ a process especially important for children future workplace. If unaddressed, these gaps can with delays and disabilities. Both of these actions affect children’s later ability to gain cognitive and will facilitate the important smooth transition of noncognitive skills. school-ready children to child-ready schools. Readiness to learn is therefore essential to suc- cess not just in primary school but throughout Starting early in Indonesia life. Strong support for family efforts to promote readiness to learn and assist in their child’s aca- Laws and policies have put in place a demic and socioemotional development through supportive context for ECED good quality early childhood care and education High-performing systems in the Asia-Pacific re- pays high dividends at low cost (Blair 2002; Bow- gion have generally focused on children’s phys- man, Donovan, and Burns 2001; Bradley and Cor- ical and cognitive development, assessed and wyn 2005; Brazelton and Greenspan 2000; Brit- improved the quality of services they offer, and to, Fuligni, and Brooks-Gunn 2003; Dockett and coordinated across actors to deliver needed serv- Perry 2007; Ginsburg, Lee, and Boyd 2008; Minu- ices. Their efforts to progressively universalize pre- jin, Delamonica, and Komarecki 2006; Perez and school appear to have borne fruit. Throughout the Gauvain 2009; Cybele Raver 2004). region, children who had access to early childhood Readiness to learn is holistic and multifaceted. education and development (ECED) services post- It describes children’s physical, intellectual, and ed higher PISA test scores than children who had socioemotional development as they prepare to no such access­ —­even after controlling for socio- enter primary school. A successful transition from economic differences (OECD 2015). the home or preschool to school depends on chil- According to the government, early childhood dren’s ability to keep up with academic content education is meant to stimulate children’s physical and to integrate into the school’s social environ- growth and socioemotional, intellectual, and spiri- ment, including through cooperative relationships tual development in order to prepare them for fur- with peers and teachers. Children should also be ther education. In particular, MoEC’s 2013 national able to regulate emotions, follow instructions, and ECED curriculum emphasizes programming that pay attention­ —­skills essential for success in work supports child development in six domains: and everyday life as an adult. Educators note the • Religious and moral values. importance of the socioemotional side of readi- • Physical and motor skills. ness to learn. Familiarity with letters and numbers • Cognitive skills. alone is not sufficient if the child cannot engage in • Language skills. the lesson. There is evidence that in some settings, • Socioemotional development. children who are socioemotionally vulnerable lag • Artistic development. behind children who are not vulnerable by about Indonesia’s Education Law No.  20/2003 spec- 9–12 months of learning in primary school (World ifies that early childhood education (Pendidikan Bank 2018a). Anak Usia Dini, or PAUD)29 should cover the peri- One of the major constraints to being ready to od from birth to six years through different types learn, particularly important in Indonesia, is the of services such as playgroups and kindergartens.30 impact of stunting on young children­ —­a condition Increasingly, this period is being seen in a more ho- that can seriously affect not only children’s health listic way, bringing together health and nutrition, re- but also their cognitive and socioemotional devel- sponsive child care and protection, and education. opment (box 2.1). This more integrated approach is being developed 30  •  The Promise of Education in Indonesia Multisectoral approach to address stunting in Indonesia is showing BOX 2.1 promising results Despite some progress, Indonesia’s rate of child- Recognizing the seriousness of the problem, hood stunting­ —­the impaired growth and de- including its longer-term impacts on education velopment that children experience from poor and economic productivity, the government nutrition, repeated infection, and inadequate launched the National Strategy to Acceler- psychosocial stimulation­ —­ remains a serious ate Stunting Prevention in 2017. Led by the vice challenge. According to the National Health president, the National Strategy adopts a multi- Survey (RISKESDAS), in 2018 30.8 percent of In- sectoral convergence approach and commits 23 donesia’s children under age 5 (almost 9 million ministries and agencies to increase the impact of children) were stunted. This is a reduction from existing government spending on nutrition-spe- 37.2 percent in 2013, but the rate is higher in cific and nutrition-sensitive services. With imple- Aceh and Sulawesi Barat province and highest mentation beginning in 100 priority districts in in Nusa Tenggara Timur. In 2019, the Ministry 2018, the government is rapidly scaling up the of Health reported a stunting rate at 27.7  per- initiative. It added 60 additional districts in 2019, cent based on the Indonesian Children Under-5 another 100 districts in 2020, and is expected to Nutrition Status Survey (Survei Status Gizi Bali- reach all districts by 2024. ta Indonesia (SSGBI)) integrated in the National There are early signs that the government’s Socioeconomic Survey (SUSENAS). Nusa Teng- multisectoral “whole-of-government” approach gara Timur recorded the highest stunting rate of is making progress. In 2019, the Ministry of Health 43.8 percent (SSGBI 2019). reported that the stunting rate declined by an Children are defined as stunted if their height- impressive 3.1 percentage points to 27.7 percent for-age is more than two standard deviations in 2019 (Integrated SUSENAS-SSGBI Survey). The below the World Health Organization’s Child stunting rate is still high, particularly in provinces Growth Standards median. Stunting, with its as- such as Nusa Tenggara Timur. sociated impacts on a child’s cognitive and phys- A key part of the government’s National Strat- ical development, occurs in the first 1,000 days egy consists of mobilizing village-level human of life, beginning in pregnancy, and is largely development workers (HDW), as well as lever- irreversible. Specifically, stunting is associated aging early childhood education development with an underdeveloped brain with long-lasting, (ECED) to improve convergence and to deliver harmful consequences, including diminished early learning and stimulation services. The Min- mental ability and learning capacity, poor school istry of Villages mobilized over 32,000 HDW in performance, reduced earnings, and increased 2019 and is using digital technology to increase future risks of nutrition-related chronic diseases their effectiveness. The Ministry of Education and such as diabetes, hypertension, and obesity. Culture is also a key contributor to the National To combat the problem, pregnant mothers Strategy. It has enhanced the existing profes- and children under age 2 need a multisectoral sional development program for early childhood package of critical services including breast- education and development teachers (Diklat feeding, dietary counselling, basic immunization, Berjenjang) to incorporate materials on stunting clean drinking water and hygienic sanitation, and the delivery of stimulation interventions to early childhood stimulation, measures to combat children ages 0–2. It has also issued a handbook food insecurity, and a birth certificate to make on stunting and the delivery of stimulation inter- sure that children are eligible for social sector ventions and trained almost 2,000 district train- services. Indonesia is now putting a focus on pro- ers to deliver the handbook’s modules to ECED viding these key services together as a package. educators. and promoted but is still quite limited in scope and national curriculum.32 The eight national standards reach. Presidential Regulation No. 60/2013 on Ho- of preprimary education are Standard for Levels listic Integrated Early Childhood Development (HI- of Achievement of Child Development Outcomes, ECD) aims to provide a strong foundation for im- Standard of Content, Standard of Process, Stan- proved implementation and coordination.31 dard of Assessment, Standard for Educators and At the sector level, an early childhood edu- Educational Personnel, Standard for Facilities cation curriculum was introduced as part of the and Infrastructure, Management Standard, and Starting early with readiness to learn  •  31 Financing Standard.33 The 2013 curriculum for pre- • Integrated care centers (pos pelayanan terpa- primary education put in place a focus on the six du, posyandu, Pos PAUD) where health and aspects of development in young children outlined care services are provided in an integrated way above.34 for children up to age 6. The most recent Government Regulation No. Other non-Islamic faith-based institutions pro- 2/2018 on the Minimum Service Standards has in- vide some elements of childcare and/or education. cluded early childhood education as a basic pub- Indonesia’s system of early childhood education lic service governed by districts/municipalities to is highly decentralized, with provision mainly tak- fulfill minimum needs of Indonesian citizens. This ing place through communities, religious institu- landmark regulation specifies that children ages tions, and private providers of ECED services. The 5–6 should participate in early childhood educa- central government is responsible for issuing stan- tion and therefore creates the path for at least one dards, curriculum, and accreditation­ —­the district year of universal preprimary education.35,36 government is responsible for managing these services.37 A range of ECED services is available for all More than 200,000 ECED services are regis- age groups tered with MoEC, while approximately 28,000 Is- Indonesia has historically considered ECED serv- lamic kindergartens operate under the oversight ices as falling into two categories: the formal sys- of MoRA (tables 2.1 and 2.2). These numbers do tem (kindergarten, TK, and RA) and the nonfor- not include childcare and early learning facilities mal system (other types of ECED services such not registered with the government. Most ECED as playgroups and daycare services). These two services are private/community-based and handle systems were merged under one MoEC Director- 6.3 million children, or 97 percent of the ECED stu- ate in 2010. But differences remain in how ECED dents enrolled. personnel are funded and managed across the two systems, and many districts continue to dis- Low spending and a complex budgetary tinguish between formal and nonformal ECED. environment Note that both kindergartens and playgroups Investment in early childhood education at rough- cater to children up to age 6. While kindergar- ly 2 percent of the total education budget is well tens often have greater status as part of the below what is needed.38 Government Regulation “formal” system, many families opt to keep their No.  2/2018 on Minimum Service Standards re- children in playgroups, which are usually less ex- quires local governments to support one year of pensive, less distant from their homes, and more preprimary education. But early childhood educa- community-based. tion is not a compulsory part of the national edu- Law No.  20/2003 on the National Education cation system and thus often receives insufficient System sets out three types of services for pre- public funding, especially in districts where the school provision: local government does not consider it a priority. • Kindergarten (taman kanak-kanak, TK) and Is- UNESCO recommended 1 percent of GDP lamic early childhood education (raudhatul ath- be spent on the ECED sector (UNESCO 2004). afal, RA) for 4–6-year-olds. The latter is man- Among OECD countries, the average budget allo- aged by the Ministry of Religious Affairs. cation for ECED as a percent of GDP was slightly • Playgroups (kelompok bermain, KB) and child- over 0.7  percent (OECD 2019). In contrast, Indo- care services (taman penitipan anak, TPA) for nesia allocated 0.0187  percent of GDP on ECED 0–6 year olds. in the education sector in 2013. Indonesia’s ECED TABLE 2.1 ECED services and students enrolled in 2019–20 by category Number of schools/institutions Number of students Type of ECED (PAUD) Public Private Public Private Kindergarten (TK) 3,908 89,098 211,106 3,552,547 Playgroups (KB) 462 84,117 11,817 2,117,584 Childcare services (TPA) 33 2,955 780 52,954 Other early childhood units (SPS) 109 22,309 2,136 594,834 Total 4,512 198,479 225,839 6,317,919 Source: Statistik PAUD 2019–20. 32  •  The Promise of Education in Indonesia TABLE 2.2 ECED services are provided in different formats by different ministries Ministry of Home Ministry of Education and Ministry of Religious Affairs with Ministry National Family Culture (MoEC) Affairs (MoRA) of Health staff Planning Board Formal Kindergartens (taman Islamic kindergartens kanak-kanak, TK) (raudhotul atfal, RA) Nonformal Playgroups (kelompok Islamic kindergartens Integrated health Toddler family bermain, KB) (taman pendidikan service units groups (bina quran, TPQ) (Posyandu) keluarga balita, BKB) ECED posts (Pos PAUD) Child care centers (taman penitipan anak, TPA) Other early childhood units (satuan PAUD sejenis, SPS) Source: World Bank 2012. allocation grew to 0.0396 percent of GDP in 2018, running learning programs, purchasing and the most recent year for which data is available.39 maintaining equipment, and developing human As for ECED expenditure in noneducation sectors, resources. Depending on the region and qualifi- the calculation of overall ECED allocation as a per- cation of teachers, the establishment and opera- cent of GDP has been difficult due to a lack of offi- tional costs vary. cial government data sources (World Bank 2015).40 Family costs are incurred by the parents of UNESCO (2019) also recommended 10 percent ECED-enrolled children on uniforms, shoes, sta- of total education spending at the country level tionery, transportation, and so on. Based on a to be allocated for ECED expenditure by 2020.41 World Bank survey, ECED services charged Rp In Indonesia, the 2019 ECED allocation under the 10,000–25,000 per month per child in 2013 for Ministry of Education and Culture was Rp 6.53 tril- community-based services (World Bank 2013b). lion (US$461.6  million), only 1.33  percent of the This amount accounts for about 4.4–11.1  percent entire education sector budget of Rp 492.5 trillion of the per capita monthly spending of poor house- (US$34.8  billion) (MoEC 2019).42 At district level, holds. The range is now considered to be greater, multi-year data collected by the World Bank’s from zero cost in extremely poor areas to up to Rp ECED Frontline Pilot indicated that the ECED bud- 500,000 a month for private for-profit services. get allocation against total district government ed- ucation budgets averaged 1.1 percent­ —­based on a How are the ECED service provision costs met? review of data from 24 districts­ —­ and that most of Financing sources fall under three broad these funds were transferred from central govern- categories­—­ government, parents and communi- ment and not from local governments.43 ties, and private foundations and others.45 Central and district/city governments are re- sponsible for ECED costs related to their respec- Government. MoEC provides funds toward the tive roles specified in Law No.  23/2014. Funding investment costs other than land and sanitation gaps exist within each responsibility area. For ex- (DAK Fisik).46 In 2017, the average minimum invest- ample, 2019 operational funds from the central ment cost for the procurement of an ECED build- government (MoEC) totaled Rp 600,000 per child ing was approximately Rp 70  million (US$4,900 per year­—­approximately US$42. This amount was thousand) (ACDP 2017). Government funds to less than the 2013 estimated annual cost per child meet the operational costs come through fiscal of US$151 for playgroups and US$256 per child for transfers to ECED service providers for registered kindergartens (Nakajima et al. 2019). students. In 2019, this BOP–ECED (education op- erational aid) was Rp 600,000 (US$42.4) per child What does it cost to provide ECED services? per year (MoEC Juknis BOP Guidelines 2019). The On the supply side, the main costs are establishing total BOP–ECED budget allocation is calculated and operating an ECED service. On the demand based on the number of DAPODIK-registered stu- side, they are family costs.44 Establishing an ECED dents ages 0–6.47 While the total education sector center requires a plot of land with standard sani- budget of 20 percent of the national budget has tation facilities and other necessary infrastructure been disbursed to several ministries, little is known (ACDP 2017). The operational costs include provid- about the percentage allocated to ECED by each ing salaries for teachers and education personnel, ministry aside from that allocated by MoEC.48 Starting early with readiness to learn  •  33 At the village level, additional funds come child’s development and learning­ —­ in areas such from the district’s APBD (local government bud- as protection, responsive care, cognitive devel- get), and in some cases village funds (dana desa) opment, and health and nutrition.55 Such pro- regulated by the Ministry of Villages. Conditional grams can also assist parents in reducing family cash transfer programs, such as the Hope Fami- stress, domestic violence, and the toxicity of home ly Program (PKH) under the Ministry of Social Af- environments.56 fairs (MoSA), have provided funding for children Indonesia increasingly recognizes the impor- ages 0–6 from disadvantaged families.49 In 2019, tance of parent education related not only to ECED PKH funded Rp 2.4  million (US$169.6) per child but also to other levels of education as well. The per year. Recipients are eligible for cash transfers result has been a plethora of programs developed if they are registered in the PKH system. But other and implemented by a wide range of government cash transfers such as the Smart Indonesia Card ministries (Education and Culture, Health, Social (KIP) have not covered children in preprimary edu- Affairs, Religious Affairs, and the National Board cation.50 All this creates a complex regulatory and of Family Planning) and international nongovern- budgetary environment. mental organizations (World Vision, Save the Chil- dren, and Plan Indonesia). This does not include Parents and communities. Given that government other programs run by national or local networks investment in public ECED provision is not on of ECED service providers. track to reach 100 percent coverage by the SDG One challenge in parent education in Indonesia achievement timeframe of 2030,51 private and is that each program focuses on a different target community provision is key to meeting sector tar- audience (of children or their parents), promotes gets. This means that most ECED services, unlike different messages, and uses different materials primary schools, require parents to pay a fee for and methods. This is not necessarily a problem if the service. all of the relevant audiences are provided the in- Village support for ECED services is usual- formation they need, at the appropriate stage of ly from the community (more than 95 percent of their child’s development, and through methods ECED services are coded as private in DAPODIK most suitable to the audience and the conditions and are community based).52 Of the nonformal in which they live. But because this is not the case, ECED facilities, 79 percent listed parents as their “it can be said, with a fair degree of certainty, that main source of finance (Statistik PAUD 2017–18).53 the vast majority of families are not likely to receive Preprimary financing by families includes registra- all the relevant parenting education services that tion and tuition fees, facility support fees, student would benefit them at a period when the informa- uniforms, food allowances, school committee fees, tion is needed most (Tomlinson and Andina 2015).” and education equipment costs (ACDP 2017, Kur- There are now attempts to better coordinate the niatun and Manaf 2016). The biggest component various parent education programs to ensure more of payment from parents to preschools is used for consistency of message and greater coverage. teacher salaries. According to MoEC data, 40 per- cent of parents are having difficulty paying the How is Indonesia doing? expected contribution during the pandemic, and 49  percent of ECED teachers are not receiving Access to ECE their salaries regularly.54 Despite the willingness of many families to pay The availability of Indonesia’s ECED services has the costs of ECED services, others are unwilling grown slowly, as has the rate of participation or cannot pay. Parents and caregivers are aware From 2016 to 2019, the number of kindergartens of the benefits of enrolling their children in ECED grew by 4 percent and the number of playgroups services. But they are often unwilling or unable to by 5  percent, while the number of daycare and do so, especially among disadvantaged groups, other ECED services grew by smaller percentages who may not have the money to cover the costs, and fell slightly in 2017–19 (table 2.3). Although the and those in rural and remote areas, who feel majority of villages (83 percent) in Indonesia have that available ECED services are too distant for at least one ECED service, more than 13,800 vil- their young children to reach. Besides local and lages (17 percent) lack any service (table 2.4). national general advocacy campaigns support- ing ECED enrollment, more targeted parent edu- Participation in ECED cation programs can play an important role both Although most ECED services are still fee-charging, in promoting enrollment and in providing the their active promotion by both national and local knowledge and skills to parents to assist in their government has been instrumental in increasing 34  •  The Promise of Education in Indonesia of early TABLE 2.3 Number still far above the GER of Sub-­ Saharan African and childhood education services over South Asia, though its rate of increase between 2017/18–2019/20 2010 and 2018 (about 50 percent) is similar to that of Africa. A greater focus on preprimary education Number of schools/ since 2010 might have led to a higher GER than is institutions currently the case. Type of ECE 2017/18 2018/19 2019/20 Growth has been further driven by parental de- Kindergarten (TK) 91,089 91,598 93,006 mand, reflecting increasing awareness of the ben- Playgroups (KB) 83,162 83,784 84,579 efits of early-year education and high-quality care­ Childcare services —­ and the considerable efforts of all partners. (TPA) 3,092 3,027 2,988 Participation in preprimary remains much lower Other early childhood for the younger cohorts. According to SUSENAS units (SPS) 22,804 22,658 22,418 (2018), the gross enrollment rate (GER) in preschool for the age cohort 3–6 years is 37 percent58 and for Source: Statistik PAUD 2017–18 to 2019–20. the age cohort 4–6 years is 50 percent (compared with the 55 percent GER for children ages 5–6). In TABLE 2.4 Village level availability of ECE rural areas children ages 4–6 have a lower enroll- ment rate than those in urban areas (47  percent Number of Number of Percent of versus 52  percent) (figure 2.3). Similarly, children ECED services villages villages from families in the bottom third consumption 0 13,865 17 quantile have a lower enrollment rate (44 percent) 1 18,965 23 than those in the top third (58 percent) and middle 2 20,072 24 third (49  percent) quantiles. This means children 3 or more 31,029 37 in rural areas and in poor households have lower Total 83,931 100 chances of attending any kind of ECED service at preprimary age and are also more likely to enter Source: Village Potential Survey (PODES 2018). primary school without any ECED experience. These disparities in access and achievement thus the percentage of children ages 5–6 participating continue­ —­and even widen­ —­later in the education in playgroups, kindergartens, and childcare serv- system. 59 ices, more than doubling between 2008 (about For both poor and rich households, the atten- 26.9 percent) and 2018 (about 55.4 percent) (figure dance rate in primary education is high for children 2.2).57 Although the age groups analyzed and the ages 5–6, which is the official preprimary age.60 indicator used may differ, in general it appears that One reason could be the greater affordability and Indonesia has improved greatly from 2010 to 2018. accessibility of primary schools compared with kin- Comparatively, the Indonesian gross enrollment dergartens, encouraging parents to enroll children rate (GER) in preprimary education (62 percent) is in primary school at an early age, thus reducing a little lower than that of Southeast Asia as a whole their exposure to the school readiness process of (68  percent) but considerably lower than that of preprimary services.61 East Asia and Thailand and even further below that Participation in ECED varies considerably across of Malaysia and Vietnam (table 2.5). It is, however, the provinces (figure 2.4). Yogyakarta has the highest TABLE 2.5 Gross enrollment ratio, preprimary, both sexes (percent) Country/region 2010 2011 2012 2013 2014 2015 2016 2017 2018 Indonesia 41.44 43.09 50.01 54.35 57.88 .. 61.88 63.19 62.34 Malaysia 79.14 .. 84.67 89.41 93.01 97.02 96.94 99.97 99.22 Thailand .. .. .. .. 71.34 67.95 71.99 73.61 78.99 Vietnam 71.27 74.55 78.89 82.42 82.04 83.97 87.81 96.53 100.23 Africa (Sub-­Saharan) 21.93 23.71 27.21 29.81 24.13 25.16 32.04 33.03 33.44 Asia (South) 15.33 17.00 17.51 19.44 20.67 21.50 22.58 24.81 25.68 Asia (East) 56.84 62.42 70.05 74.14 77.04 79.43 82.88 85.10 87.03 Asia (Southeast) 48.81 51.03 55.84 59.50 62.20 64.19 66.01 67.46 68.06 Source: UIS.Stat, data extracted May 17, 2020, 08:21 UTC (GMT). Starting early with readiness to learn  •  35 FIGURE 2.2 ECED participation rate for 5–6 year olds, 2008–18 Participation rate for ages 5–6 (%) 60 50 Female 40 Male 30 20 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: SUSENAS 2008–18. FIGURE 2.3 ECED gross enrollment rate for 4–6 year olds National Top third consumption quantile Middle third consumption quantile Bottom third consumption quantile Urban Rural Female Male 0 10 20 30 40 50 60 Enrollment rate Source: SUSENAS 2018. GER in the 3–6 age cohort, at 73.85 percent,62 while Quality of ECED Papua has the lowest, at 12.92 percent. In 24 of the 34 provinces, the GER is below the national aver- The quality of preschools varies widely across age of 37 percent. As figure 2.4 shows, enrollment settings, and average quality is low is associated with ECED availability. Provinces with a higher fraction of villages lacking ECED services Service standards have lower enrollment rates. Both enrollment and Minimum standards of quality for ECED have ECED availability are also associated with district been laid out by the government but do not ap- poverty. Poorer districts tend to have higher per- pear to be well enforced based on available data. centages of villages lacking an ECED service and According to Statistik PAUD 2019–20 data, only a lower enrollment rates (figures 2.5–2.6). In sum, al- small percentage of the nonformal ECED services most 12 million children ages 3–6 are not enrolled in are accredited (figure 2.7). Based on a sample preschool education (SUSENAS 2018). from 10 districts (figure 2.8), many of the private 36  •  The Promise of Education in Indonesia gross enrollment rate for 3–6 year olds and villages without FIGURE 2.4 ECED ECE service by province Percent Enrollment rate Proportion of villages without early childhood education 80 60 40 20 0 M ce h m e n te n a lu Ke p R t S u p u a ia u S u te r a n R t Ka a e i a u an a U an n ra Pa a t a t e o a Ba l itu t N S u law e la h a we si B n ga en t li m D K a B a h ta ak t Te ta B Ja a t i h ng Te ant Ut li Su g U a es Ti a el r n ng Ja u r la ng bi i U ra an am an A a Su B an u a ta l i m a w ro n u r g k a na a a ra n g i T a ra a n I J a ra B ra i S mu a ng an ar r r pu B k S a u s la e t a N ga an T t al er ku Su Te m ar ar ta ta la a ra t a es a ta n ar w ar m Ka J G o i m u s li m k B u l i m te r l a t S u an ng r g li m L at ta pu m lau B a an w o w g al n Ti B B Ja y a k at g T el u S u og a Te s N Ka a l u Pa IY i es w m M a D w la Ka Su a Ka n ua la pu Ke Source: Village Potential Survey (PODES) 2018 , SUSENAS 2018. FIGURE 2.5 District-level poverty rate and percent of villages without ECE facility Poverty rate 50 40 30 20 10 0 0 20 40 60 80 100 Percent of villages without early childhood education Source: Village Potential Survey (PODES) 2018, SUSENAS 2018. community-based ECED services, especially in language and reasoning activities, interactions, rural and remote areas, still fail to meet minimum program structure, and parents and staff (Brink- local standards. And even more fail to meet the man et  al. 2017a). Although about 80  percent of higher standards of the Early Childhood Environ- rural preschools are said to meet national stan- ment Rating Scale-Revised (ECERS-R) in the areas dards, fewer meet the minimum threshold for qual- of space and furnishing, personal care routines, ity as outlined in internationally validated metrics. Starting early with readiness to learn  •  37 FIGURE 2.6 District-level poverty rate and ECED gross enrollment rate 4–6 years Poverty rate 50 40 30 20 10 0 0 20 40 60 80 100 Enrollment rate Source: Village Potential Survey (PODES) 2018, SUSENAS 2018. and a small percentage have a post-secondary di- ECED FIGURE 2.7 Nonformal ploma (5  percent). The motivation of teachers in services that are accredited nonformal ECED services to seek a college educa- tion is low, as the incentives tied to formal certifica- Percent of programs accredited tion or civil servant status are only for employment 10 in formally registered kindergartens.63 Classroom size and teacher qualification are 8 correlated with the GER in preprimary There is substantial variation in pupil–teacher ra- 6 tios and teacher qualifications across provinces. Provinces with lower pupil–teacher ratios in kin- dergarten tend to have a higher GER in preschool 4 in the age cohort 4–6 years. Similarly, a higher per- centage of kindergarten teachers with a college 2 education is associated with a higher GER across provinces. And the percentage of kindergarten 0 teachers with an ECED major is positively associat- Other ECE Daycare Playgroup ed with the GER. The correlations of class size and (PAUD) teacher qualification with preschool enrollment are Source: Statistik PAUD 2019–20. indicative that the former affect enrollment subject to two caveats. One, the results do not necessari- ly indicate causality and could reflect other factors that influence class size (and/or teacher qualifica- Classroom size and teacher qualification tion) and GER across provinces. Two, as discussed The average pupil–teacher ratio was between 6 and below, observed teacher qualifications may not 11 in different ECED types (Statistik PAUD 2019–20). improve development outcomes in preschool chil- A larger percentage of teachers in kindergartens dren unless teacher quality improves. (69 percent) have at least a college education com- pared with those in nonformal ECED (35 percent), ECED outcomes are important for child likely due to differing qualification requirements for development and learning kindergarten teachers. Among teachers in the non- There is evidence globally and from Indonesia that formal ECED services, the majority have a senior exposure to ECED makes a difference for child de- secondary school education or lower (60  percent) velopment and learning outcomes. The evaluation 38  •  The Promise of Education in Indonesia of rural preschools in a study sample that meet minimum FIGURE 2.8 Share local standards and ECERS‑R standards Percent Meets minimum Indonesia ECED Standards (ECERS-R ≥ 2) Meets minimum score on ECERS-R (ECERS-R ≥ 3) 100 80 60 40 20 0 Project Kindergarten Islamic Non-project Total playgroup kindergarten playgroup Source: Brinkman et al. 2017a. Note: Based on a sample of preschool services in rural Indonesia. The data are not nationally representative. of a low-cost, government-sponsored, community- • The differences in primary school test scores based ECED project in rural Indonesia supported between a child who has no early education by the World Bank indicated the following devel- exposure and a child who completes a full se- opment outcomes of ECED for children (World quence at the developmentally appropriate age Bank 2013a; Jung and Hasan 2016; Nakajima et al. are 0.42 standard deviation in language and 2016; Brinkman et al. 2017b; Hasan et al. 2019): 0.43 standard deviation in mathematics, rough- • Enrolled children have better average devel- ly equivalent to an additional 0.9 to 1.2 years of opmental outcomes than those who are not primary schooling. enrolled. • Providing access to both playgroups and kin- • Impact evaluation results based on a differ- dergartens to young children at developmental- ence-in-differences analysis show that there ly appropriate ages can optimize public invest- are modest and sustained impacts on child ments in early childhood education.64 development­ —­especially for children from Examining the relationship between preschool more disadvantaged backgrounds. Child devel- quality and children’s early development in rural opment outcomes are significantly better in the Indonesia, Brinkman et al. (2017a) found that pre- short term (1 year after the intervention) in the school quality measured by the ECERS-R stan- treatment group compared with the compar- dards significantly predicted children’s develop- ison group. In the medium term (3 years after ment outcomes. The amount of class time spent the intervention), a significant impact remains in ECED programs was also a significant predictor on only one domain of child development­ —­ of child development outcomes. The findings for emotional maturity. teacher characteristics were mixed, in line with • The impacts are larger in magnitude and affect prior findings on teacher qualification. Teach- more aspects of development for children in er education predicted specific domains of child poor households. For these children, there are development such as children’s social compe- significant improvements in language and cog- tence, communication, and general knowledge. nitive development, social competence, and Teacher experience and training were not signifi- emotional maturity due to the project. cantly associated with child development out- • The achievement gap between richer and poor- comes, suggesting that policies focused solely er children in project villages narrowed on on hiring teachers based on observed qualifica- many dimensions, compared with the gap in tions like experience and training will not suffice non-project villages. to improve children’s development. To ensure the Starting early with readiness to learn  •  39 effectiveness of ECED services, policies must im- • Enhance the coverage and quality of ECED prove teacher quality by addressing the quality of services by ensuring sufficient funding to the professional development. subsector; develop a roadmap to achieve uni- In sum, despite significant growth in the ECED versal ECED enrollment by 2030. sector, there are still many challenges to providing • Incentivize ECED expansion, especially in areas universal, good quality services for preschool chil- with no ECED services, through grants for new dren, especially those most often excluded from or additional services, and encourage better education and from learning. These challenges in- collaboration among stakeholders in achieving clude the need for better understanding the nature this expansion. and purposes of early years development and ed- ucation programs; stronger advocacy at all levels What can be changed or improved? of society about the importance of ECED; greater • Parliament can revise the Education Law to de- guidance, better coordination, clearer standards, fine “basic education” as including pre-primary and increased funding for ECED provision at re- education as a formal part of the Indonesian ed- gional and national levels; greater collaboration ucation system, and to make one and preferably between the preschool and the primary school sec- two years of early childhood education compul- tors to ensure a smoother transition from one to the sory. The formulation of costing and budget es- other; and more regular collection of accurate data timates with clear milestones to achieve univer- on ECED and their more frequent use in improving sal preprimary enrollment by 2030 are central ECED policies, enhancing ECED quality, and reduc- to this process. ing disparities of opportunities and outcomes that • Use district-level funds (APBD) to expand the already appear at this early level of education. number and improve the quality of ECED services using a staged approach, prioritizing one year of Recommendation 2: Make quality early ECED both for villages with no services and chil- childhood education accessible to all dren of a targeted age and affected by exclusion- • Make at least two years of quality early child- ary factors such as socioeconomic background hood education compulsory, accessible, and and disability, and then working to add additional affordable for all. years of ECED services for younger children. 40  •  The Promise of Education in Indonesia • Use the new RPJMN to gradually push districts including financing and technical support. to achieve 100 percent enrollment in one year MoHA can advocate for districts to pass dis- of a preprimary service (playgroup or kinder- trict legislation (PERDA: Peraturan Daerah) to garten) before entry to primary schools, and finance and implement ECED services using to identify support for districts to achieve this APBD. Access can be to daycare centers, play- goal­ —­including hiring qualified teachers. This groups, kindergartens, and a range of other can be a phased requirement, since more than services for children under the ECED umbrella. 13,000 villages in Indonesia lack ECED services • Existing parenting/caregiver education pro- (Village Potential Survey or PODES 2018). grams can be expanded with clear links to the • Expand and make more relevant and comple- stunting agenda. Government and nongovern- mentary the various education programs for ment actors that implement these programs parents and caregivers to ensure that they re- can harmonize messages, materials, and ap- ceive the information and gain the skills needed proaches and ensure that all target audiences to promote the healthy development and early are reached and that they receive the informa- education of their children. tion and skills they need. • Incentivize ECED expansion through an output-­ • BAPPENAS (with support from MoEC, MoHA, based grant65 or new PAUD–DAK–Fisik for dis- and MoRA) can plan implementation of this tricts to build new ECED services, especially in commitment to two years of preprimary with villages without them, which meet a small num- a staged approach­ —­prioritizing villages with ber of key criteria, and register existing ECED no ECED services and children by age group, service providers to ensure that data on their socioeconomic background, and other exclud- students are entered into DAPODIK, and those ing factors such as disability­ —­starting with services that meet the minimum requirements one-year preprimary that meets the minimum to benefit from BOP–PAUD. service standards and providing funding for • Harmonize various cash transfers to underprivi- poor families and rural areas. Budget analyses leged families of children under age 6 (calculat- can be conducted on the financing gap to pro- ed per child per year) in order to ease the finan- vide the supply side­ —­ infrastructure and oper- cial burden of parents/main caregivers to enroll ational costs, teacher salaries, professional de- and keep their children in preprimary programs. velopment, and so on­ —­ and a regulation can be • Strengthen the registration system for ECED implemented that defines roles and responsibil- service providers and services, and develop a ities of various stakeholders in ECED. “socialization” campaign to stimulate both the • All sectoral stakeholders in ECED can commu- registration of all ECED services and the higher nicate this roadmap to relevant line director- enrollment of children in these services. ates and to district and village governments to • Strengthen the coverage and quality of ECED secure their commitment through local policies by giving it sufficient funding within the current and budgets (working across MoEC, MoRA, 20 percent education envelope by encouraging MoHA, MoV, and BAPPENAS). local governments to increase their ECED fund- • All sectoral stakeholders can collaborate in ing and by improving the governance frame- organizing local and national advocacy cam- work to ensure that minimum quality standards paigns and identify local and national champi- are met.66 The recent mandating of minimum ons (such as the Bunda PAUD) to raise aware- service standards for ECED (Peraturan Pemerin- ness of the benefits of ECED and increase the tah No 2/2018) with technical guidelines (MoEC demand for ECED services. Regulation No.  32/2018) is an important step • The funding needed for these recommenda- forward. But if the standards are not enforced tions can come through increased public fund- to ensure minimum levels of quality, children will ing to ECED from central ministries, districts develop and learn less than they should, and and villages. Alternative, innovative approaches human capital will not reach its full potential. to such funding can also be sought, for exam- ple, from public–private partnerships and the What are the options to implement this private sector. change? • MoEC, with the support of the Ministry of Fi- References nance, MoHA, the Ministry of Villages, and ACDP (Analytical and Capacity Development Partnership). MoRA, can make two years of preprimary ed- 2017. 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Indonesian ———. 2013a. “Early Childhood Education and Devel- Toddler Nutrition Status Study, 2019. https://www. opment in Poor Villages of Indonesia: Strong Foun- bps.go.id/dynamictable/2019/10/21/1704/prevalensi dations, Later Success.” Directions in Development, -balita-sangat-pendek-dan-pendek-pada-kabupaten edited by Hasan, A., Hyson, M. and Chang, M.C. Wash- -kota-ssgbi-2019.html. ington, DC: World Bank. SUSENAS 2018, Survei Sosial Ekonomi Nasional, Badan ———. 2013b. Local Governance and Education Perfor- Pusat Statistik. mance: A Survey of the Quality of Local Education Gov- Tomlinson, H. B. and S. Andina. 2015. “Parenting Edu- ernance in 50 Indonesian Districts (Vol. 2). Washington, cation in Indonesia: Review and Recommendations Starting early with readiness to learn  •  43 DC: World Bank. http://documents.worldbank.org/ MoEC Regulation No. 146/2014 on the 2013 Curriculum curated/en/794841468044380862/Main-report. for Early Childhood Education. http://paud.kemdik� - ———. 2015. 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KEPPRES-NOMOR-121-P-TAHUN-2014-PEMBENTUKAN Ministerial Regulation No. 1/2019 on Sub-Task Forces for -KEMENTERIAN-DAN-PENGANGKATAN-MENTERI HI-ECD, by the Ministry of Human Development and -KABINET-KERJA-PERIODE-TAHUN-2014–2019.pdf. Culture. https://www.kemenkopmk.go.id/sites/default/ Presidential Regulation No. 9/2015 on Coordinating Min- files/produkhukum/Permenko%20PMK%201%20 istry of Human Development and Culture. https:// tahun%202019.pdf. sipuu.setkab.go.id/PUUdoc/174377/Perpres%20 MoEC Regulation No. 137/2014 on National Standards for Nomor%20%209%20Tahun%202015.pdf. Early Childhood Education. http://repositori.kemdik� - bud.go.id/12860/. 44  •  The Promise of Education in Indonesia Starting early with readiness to learn  •  45 CHAPTER 3 Equity and inclusion in learning “E quity is defined in terms of two basic princi- of both schools for children with specific special ples. The first is equal opportunities: that a needs and the concept of “inclusive schools”­ —­ in person’s life achievements should be deter- theory “regular” schools that are provided sup- mined primarily by his or her talents and efforts, —­ port so they can include children with disabilities­ rather than by pre-determined circumstances such though ultimately all schools are meant to be able as race, gender, social or family background. The and required to accept such children. second principle is the avoidance of deprivation in outcomes, particularly in health, education and Exclusion has many underlying factors consumption levels.” Inclusive education is often limited, as it is in Indo- —World Development Report 2016 67 nesia, to its original focus on education for people with disabilities and special needs, but the more A major challenge for any education system is general­—­and more globally accepted­— ­definition maximizing equity in relation to these two princi- is broader, covering many kinds of barriers to edu- ples. This has important implications for the system­ cation. These include: —­ ensuring that learning achievement is based on • Socioeconomic status­ —­ Children of families talent rather circumstance and that disparities who cannot afford to send their children to (“deprivations”) in learning outcomes are mini- school, or need their children to supplement mized at all costs. Thus, education systems must family income, or both. provide the needed support, facilities, personnel, • Gender­ —­ Boys or girls who are disadvantaged and resources to help ensure, first, that schools are in various ways by the curriculum, the style of able to do what they want to do and are expected pedagogy, parental and teacher expectations, to do and, second, that students are able to learn and cultural values. what they want to learn and are meant to learn. • Delays and disabilities­ —­ Children who have a sensory, cognitive, socioemotional, or physical Education for all requires inclusive impairment that becomes a disability when fac- education systems and schools ing the demands of “normal” society. Many factors exclude children from attending • Language­ —­Children whose mother tongue is school, and many more exclude them from learn- different from the language of the school and ing in the classroom. Yet education for all remains thus have difficulty both in gaining literacy in essential in both fulfilling children’s rights and en- the national language and in understanding suring their equitable participation in the devel- other subjects being taught. opment of their community and their country. This • Remoteness­ —­ Children living in rural and re- requires inclusive education systems and schools, mote areas that may have few educational facil- where inclusive education is defined as “a trans- ities and resources and many barriers to reach formative process that ensures full participation the ones that exist. and access to quality learning opportunities for all • School violence­ —­ Children who are somehow children, young people, and adults, respecting and seen as “different” or as rivals for status within a valuing diversity, and eliminating all forms of dis- school, who may be subject to both physical and crimination in and through education” (UNESCO psychological violence (such as bullying). This in- Cali Statement 2019). In other words, it is a process cludes the serious harassment of sexual violence. that ensures equity and inclusion in the education • Early marriage­ —­ Girls below the legal age of system. marriage may be forced into marriage, which Many countries and development agencies now most often results in their being pushed out of assume a broad definition of inclusive education school and thus made unable to complete their covering all barriers and challenges to school- education. ing and learning as outlined below. Indonesia still All of these exclusionary factors, and more, uses the narrower and original definition, which is can lead to low performance and lead eventual- limited to covering children with disabilities. This ly to children dropping out of­ —­ or, perhaps more is reflected in Ministerial Instruction No. 70/2009 commonly, being pushed out of­ —­ the education on Inclusive Education where inclusive education system. is defined as a “system of education that provides opportunities for all learners who have abnormal- Lagging, low-performing students ities and have the potential of intelligence and/or present a major challenge in efforts to special talents to follow education or learning in boost learning an educational environment (Ediyanto et al. 2017).” —­ The inequity of child learning begins from birth­ This instruction has led to the current structure or even before. Families disadvantaged in many Equity and inclusion in learning  •  47 ways may not provide adequate nutrition, healthy mastered the curricular competencies mandated environments, and the cognitive and linguistic for the earlier grade (Afkar, de Ree, and Khairina stimulation needed to help children make a good forthcoming). This compounds learning disparities, start. Disadvantaged families may have little inter- as lower-income children and other children more est in, time for, or ability to promote early learning. likely to be excluded from regular classroom partic- The vast majority of Indonesian children observed ipation (children with disabilities, or children whose in a 2013 study grew up in households where par- mother tongue is not the language of the school) ents never read stories to them, a deprivation miss out on more learning each year. that can limit their cognitive development (Alatas Teachers and schools can use formative and et al. 2013). Disadvantaged children able to access summative assessments more effectively to iden- ECED services often find them of low quality, with tify lagging, low-performing learners and gaps inadequate facilities and materials and relative- in learning within the classroom and school. ly untrained teachers (Chang, Hasan, and Hyson This requires in-service training and support so 2013, Brinkman et al. 2016). that teachers can do this as a continual process The differences in service quality and resulting throughout the school year. Once identified, the disparities in learning outcomes from ECED serv- solution is to provide targeted support rather than ices are often continued and even exacerbated on hold the children back a year to repeat the same entering primary school (Nakajima et al. 2016). This material with the same teacher. This support could process can be reinforced, since the assessments include using graded readers to develop children’s of children in ECED services, across developmen- competence and confidence in reading and having tal domains, are rarely transferred to the receiving teachers use their required out-of-classroom hours primary school. The result is that any evident de- to tutor children who have been identified as need- lays, disabilities, or other developmental problems ing additional assistance. Community members are unknown to the grade 1 teacher, who must then also can support these learners by providing study start the school year with a new assessment. space, encouragement, and support. Later in primary school, many children are pro- moted from one grade to the next without having Socioeconomic status is a major contributor to educational inequality Inequity based on differences in household income and wealth is a serious challenge. Household sur- veys indicate that considerations related to the cost of education account for more than one-half of cases where parents do not send their child to primary school, or where children drop out of school. And the gaps in achievement that are relat- ed to family wealth are significant. Access Chapter 2 indicated the disparities in participation in ECED by socioeconomic status. Similar dispari- ties can be found in other levels of the system. For example, children ages 16–18 from the highest and lowest quintiles participate in senior secondary ed- ucation at very different rates. The data also show that, because of their low starting base, poorer In- donesians registered faster growth. And although enrollment rates for poor and other vulnerable households in general have improved, work remains to be done to close the continuing gap (figure 3.1). Such disparities in access are not only directly re- lated to family wealth but are also reflected in the uneven quality of service delivery and infrastructure­ —­ often based on disparities in social and eco- nomic development across Indonesia’s regions and provinces. For example, whereas Java gen- erally has access to paved roads (85 percent) and 48  •  The Promise of Education in Indonesia electricity (99 percent), Papua does not (21 percent and 29 percent, respectively) (PODES 2014). Senior secondary net enrollment FIGURE 3.1 rates grew for all income levels, larger growth Academic achievement and the quality of learning was registered among poorer Indonesians Similar to the disparities in access to education Percent based on socioeconomic status, PISA scores of Quintile 1 Quintile 2 Quintile 3 students from households in the lower 50 percent Quintile 4 Quintile 5 100 of the income distribution remained relatively sta- ble between 2003 and 2015, while student scores in the top 50  percent of income recorded a sig- 80 nificant increase. The growing difference can be expressed in school years: the gap of one school 60 year in 2003 widened to two school years in 2015 (World Bank 2018b). Socioeconomically advantaged students in In- 40 donesia outperformed disadvantaged students by 52 score points in reading on PISA 2018. This 20 gap was larger than that in PISA 2009 (44 score points), indicating an increase in disparities be- 0 tween the rich and the poor over time. However, 2002 2019 14  percent of socioeconomically disadvantaged students in Indonesia scored in the top quarter of Source: SUSENAS, various years. reading performance within Indonesia, indicating that disadvantage is not destiny.68 In addition, part of the reason for such dispari- ties is that schools attended by poor students have subsidies to schools and ECED services and di- a lower proportion of classrooms in good condi- rectly to families to help ensure that students from tion and are less likely to be A-accredited. The dif- poor families can access free basic education ferences in the characteristics of schools catering (ACDP 2013).69 Despite these programs, poverty to the poor and the nonpoor increases as students remains an important determinant in school en- reach upper secondary school. Poorer populations rollment, and poor families often have to choose tend to attend smaller schools in smaller districts. whether to send their sons and daughters to Smaller districts tend to have lower capacity, and school when resources are limited. In one study, smaller schools have lower scores on national more than half of the boys (55 percent) report that exams (Cislowski 2018). the family’s economic condition is the major rea- Reforms over the past two decades have son for not going to school, while only 50 percent brought many Indonesians from disadvantaged of girls gave the same reason (MoWECP and BPS socioeconomic conditions into schools, but their 2018 using SUSENAS 2017). learning remains low and inequality remains seri- ous. Because of infrastructure challenges, house- Children with delays and disabilities are often hold costs associated with education (transpor- neglected and poorly served tation, uniforms), and opportunity costs, poorer The most challenging barrier to inclusive education students are less likely to move as far through the relates to delay and disabilities­—­whether senso- education system as their more affluent peers­ ry, intellectual, mental, or physical (or more than —­ 61  percent of children from the richest house- one). Based on various estimates from WHO and holds reach grade 12, but only 23 percent of the the World Bank, perhaps 5–10  percent of young poor reach that level (Fasih, Afkar, and Tomlin- children globally have some kind of developmental son 2018). As wealthier Indonesians rapidly im- delay or disability (WHO 2011). And although Indo- prove their learning outcomes, the poor advance nesia has impressive policies for including children more slowly, so the inequality in years of educa- in education­ —­ both physically in the classroom tion is now replicated with inequality in learning and academically in learning­ —­the reality in prac- outcomes. tice is quite different. Since poverty is an important determinant of In low and lower-middle income countries, school enrollment and achievement, programs around 40  percent of children with disabilities such as BOS and Kartu Indonesia Pintar have re- are out of school at primary level and 55 percent duced financial burdens on parents by providing at lower secondary level.70 But even for those in Equity and inclusion in learning  •  49 school, few are in “regular” schools but rather rele- countries included in the study, disability reduced gated to “special needs schools,” or integrated into the probability of attending school for primary and selected “inclusive schools” which may or may not secondary age children by more than 10 percent, receive extra financial and staff assistance to en- with Indonesia representing the most extreme sure successful inclusion. Accurate data are lacking case, with school attendance reduced by 61 per- on such students in Indonesia, and school policies cent for boys with disabilities, and 59 percent for vary widely­ —­some accepting only children with girls (UNICEF 2016b). mild intellectual and socioemotional impairments, According to data reported in 2019, the prima- others adapting to children with physical disabili- ry school completion rate for Indonesian children ties, and few willing to deal with hearing and sight without disabilities is 95 percent, while for children impairments. And even in these schools, children with disabilities it is only 54  percent. The junior with disabilities are sometimes represented as secondary completion rate is also much lower for individuals who are “lacking abilities,” “difficult children with disabilities­—­36.6  percent­—­than that to community with,” “stupid,” and so on (Kostan for children without­ —­85.4 percent. The senior sec- 2017). But specific activities can be developed to ondary completion rate is lower for both types of foster greater disability awareness in these and children, but again those with disabilities are at a other schools (Wardany et al. 2018). disadvantage: 62.2  percent against 26.0  percent Of special concern is that Indonesia’s rates of (UNICEF and MoEC 2019). In effect, people with childhood stunting and malnutrition, despite some disabilities spend only an average of 4.6 years in progress, are serious challenges. Stunting is the school.72 impaired growth and development that children The first barrier to a child’s participation in experience from poor nutrition, repeated infec- schooling and in learning due to delays and dis- tion, and inadequate psychosocial stimulation­ —­ abilities is often the shame felt by the family, re- and thus is a major cause of developmental delays sulting in the child being hidden or kept out of and disabilities. In 2018, 30.8 percent of Indone- public spaces. Early diagnosis of the disability­ —­ sia’s children under age 5 (almost 9  million chil- through early childhood intervention programs, dren) were stunted, down from 37 percent in 2013, for example­ —­might lead to early mitigation. But though the rate is higher in some regions, such as the specialists to make such diagnoses and man- Aceh and Sulawesi (RISKESDAS). age such efforts at mitigation are rare, especially in rural and remote areas. And early childhood devel- The numbers are not small opment personnel and even primary school teach- In Indonesia, having a disability greatly increases ers seldom have the skills and knowledge to iden- a child’s likelihood of being out of school. A “dis- tify disabilities, even simple ones, such as slightly abled” person is defined in Indonesia as one who impaired sight and hearing (which could be helped has long-term physical, mental, intellectual, or sen- by simply moving such children to the front of the sory impairments that, when interacting with the classroom). society and environment, encounters difficulty in Undang participating fully and effectively (Undang-­ Providing accessible facilities is proving difficult No. 8/2016). The most recent national figure for the Providing accessible facilities (such as ramps and prevalence of children ages 7–18 years with at least wide doors) to children with physical impairments one type of physical difficulty (visual/auditory/ is proving difficult for many schools and their per- motor-sensory) is 0.30  percent (SUSENAS 2019). sonnel to manage (Susanti et  al. 2018). So is as- Including other types of functional impairment­ —­ sisting children with cognitive delays caused by such as behavioral and learning challenges, inabil- conditions such as dyslexia, and handling children ity to understand communication, and self-care­ —­ with more complex cognitive and socioemotional boosts the total prevalence rate to 0.49 percent, challenges such as autism and hyperactivity. The though this is considerably lower than global aver- result is that a large percentage of children with age estimates of 5–10 percent.71 delays and disabilities do not enter school or do According to SUSENAS 2019, the proportion of not advance to higher levels of education (Male enrolled students with at least one physical impair- and Wodon 2017, UNESCO Institute of Statistics ment is 0.24 percent for primary, 0.25 percent for 2017/18). junior secondary, and 0.28 percent for senior sec- ondary. One study found that students of prima- Many of these children could be included in ry age in Indonesia with a disability are nearly 11 “regular” schools times more likely to be out of school than children Having access to, and opportunities for success without a disability (UNICEF 2016b). In 13 of the 15 in, education is every child’s right. An experience 50  •  The Promise of Education in Indonesia shows that many of these children can be includ- enrollment rates drop more FIGURE 3.2 Net ed in “regular” schools (especially those that have been supported as “inclusive”), and others with for disabled students than for non‑disabled more complex needs in schools for special needs. students from primary to junior secondary to Such inclusiveness is important because of the po- senior secondary tential contribution such children can make to their Net enrollment rate own­—a ­ nd to national­— ­development and because Non-disabled Disabled their participation in education can demonstrate 100 the diversity of experience so essential in creating tolerant and just societies (Vargas-Baron 2019, 80 Olusanya, Krishnamurthy, and Wertlieb 2018). Even if children with special needs are able to enroll in ECED services and primary school, many 60 are later pushed out as they move up the system and encounter challenges such as examination 40 protocols that are not appropriate to their disabili- ty, physically inaccessible facilities, and even fewer teachers trained in special needs (Afkar, Yarrow, 20 Sudarti, and Cooper 2020). In Indonesia, the pri- mary enrollment rate for children with at least one 0 type of physical difficulty is 8.1 percentage points Primary Junior Senior secondary secondary below the enrollment rate for non-disabled stu- dents. Figure 3.2 shows how the dropout rates Source: Calculated from SUSENAS 2019. for students with disabilities is higher than for other students. In the transition from primary to junior secondary, there is a 26.4 percentage point have been some attempts to provide more target- drop for disabled students (from 89.6  percent ed training for such teachers (Ediyanto et al. 2018), to 63.2  percent) versus a 20.2  percentage point enforcing existing regulations, refining the curric- drop (from 97.7 percent to 79.5 percent) for non-­ ulum for children with disabilities, and providing disabled students. This drop should be reduced for teachers with training on appropriate strategies to all students, but those with disabilities should be teach students with disabilities would help to im- prioritized. prove both the equitable access and the quality of inclusive education (Susanti 2018). Policies and regulations exist but are not equitably implemented Girls do better than boys on average Indonesian national policy stipulates that children with special needs be integrated in the education Access system through dedicated special needs schools The story on gender in Indonesian education is one and through “inclusive schools,” which include chil- of progress and diversity. Nationally, Indonesia has dren with and without disabilities. While a number achieved gender parity by improving its Gender of regulations support inclusive education, includ- Parity Index (GPI) for school participation for chil- ing the Permendiknas No. 70/2009, implementa- dren ages 7–12 from 0.89 in 1971 to 1.00 in 2018.73 tion has been lacking in many provinces and dis- The current national GPIs for school participation tricts. Teachers often do not have the training to rates for ages 13–15 and 16–18 are also impressive, fully integrate children with physical and learning at 1.02, demonstrating that females are enroll- delays disabilities, and a social stigma often leads ing and staying in secondary education at slightly parents to conceal children, particularly those with higher rates than boys (Afkar, Yarrow, Sudarti, and sensory disabilities. Cooper 2020) (figure 3.3). Discussions with provincial and district edu- The national GPIs mask variations at the district cation officers revealed a lack of clarity about im- level, including cases of significant male and female plementation, since children with special needs disadvantage. The variations include the difference come under the auspices of the province, yet the of the grade 9 national exam scores in Bantul, Yo- province is not responsible for primary schools, gyakarta, where girls outperform boys by 6.6 per- leaving an ambiguous area of responsibility for centage points, and the high enrollment gap in primary-age children with disabilities (Afkar, Yar- South Buton, where the percentage of boys ages row, Sudarti, and Cooper 2020). Although there 16–18 enrolled is twice as high as the percentage Equity and inclusion in learning  •  51 especially boys. In all subjects tested in the Ujian FIGURE 3.3 Net enrollment rates by sex and Nasional (UN or national exam) for grade 9 stu- education dents, girls have performed better in recent years. The UN data show that the differences in exam Net enrollment rate Male Female scores between girls and boys were largest for In- 100 donesian language (Bahasa Indonesia) followed by English, with average score differences of 4.7 and 2.3 points, respectively, out of 100. The average 80 scores for mathematics and science were also gen- erally low. 60 In the 2018 PISA tests, girls scored slightly higher than boys in reading (by 25 points), math 40 (by 10 points), and science (by 7 points).74 Results from the 2015 Trends in International Mathemat- ics and Science Study (TIMSS) showed that girls 20 scored 10 percentage points higher than boys in mathematics and 8  percentage points higher in 0 science.75 In addition, one study showed that girls Primary Junior Senior Higher outperformed boys by 0.08 standard deviation secondary secondary education when the initial data were collected. An addition- Source: SUSENAS 2019. al round of data collection seven years later found that the gap had widened to 0.19 standard devia- tion, equivalent to around 18 months of schooling (Suryadarma 2015). of girls enrolled, based on 2018 test and enrollment Available data show a positive association be- data (Afkar, Yarrow, Sudarti, and Cooper 2020). tween students’ mindsets, perceptions, and so- One constant in this picture is poverty; the poorer a cioemotional skills­ —­ and their grades (World Bank district or family, the more likely it is to have low en- 2018c). Adolescent boys may learn less because rollments and learning for both boys and girls. This they have socioemotional needs not fulfilled by the local variation means that the most effective ap- often rigid environment of the school, mindsets proaches to achieving gender parity in education that demotivate them, the need to work in order are likely to be driven by localized data analysis and to supplement family income, and other behavioral locally driven policies and actions. This district- and factors. Students with more of a growth mindset, province-level approach to addressing gender dis- and who believe they can increase their abilities parities can be complemented nationally by docu- in school through dedication and hard work, are menting positive examples of addressing gender more motivated, work harder, and get higher test imbalances successfully and by providing support scores in diverse contexts such as Chile and the for capacity and momentum building (Afkar, Yar- United States. row, Sudarti, and Cooper 2020). In Indonesia, for example, boys are found to Despite these positive GPIs for education, dis- have lower educational aspirations that may also crimination continues. And despite largely similar contribute to lower learning (Fasih, Afkar, and educational outcomes, post-school aspirations are Tomlinson 2018). A large proportion of grade 8 markedly different for young men and women. For girls (84 percent) state that they would like to com- example, there are marked differences by gender in plete a general tertiary degree, and more than half the share of young Indonesians who want to enter state that they would like to get a PhD if they had STEM-related careers (favoring males) or more ser- no constraints. Among grade 8 boys, in contrast, vice-oriented careers (favoring females) (World Bank just 64 percent aspire to general tertiary education estimates based on PISA 2015). And women are still and 37 percent to a PhD. Boys are more likely to underrepresented in school and government leader- state that they wish to complete technical or voca- ship positions as well as in the workforce overall. A tional high school with no further formal education major reason for this is the lack of ECED services for (20  percent compared with less than 10  percent the young children of working mothers. of girls). Girls report spending more time studying outside of school than boys: more than five hours Achievement per week compared with less than four hours for Indonesian secondary students perform worse boys. These differences in behavior may emerge academically than their peers in other countries, from different social expectations of boys and 52  •  The Promise of Education in Indonesia girls, and the differences in expectation indicate of instruction in most primary schools. At best, that girls plan to invest in their human capital far the mother tongue is inserted into local curricu- more than boys (World Bank 2018c). lum content or used to help translate Bahasa In- donesian materials. The mother tongue is seldom The neglect of mother tongue education in used as the language of instruction and early lit- schools may interfere with mastery of the eracy (except to some extent in Papua).76 Children national language and later achievement in who go from a largely mother tongue environ- school ment into an ECED service or a primary school Another challenge is Indonesia’s large number of that predominantly uses Bahasa may suffer as languages. According to the World Development a result­—­especially if the teacher is not from the Report 2018, children learn to read most effec- local language group­ —­ leading not only to delays tively in the language they speak at home­—­ their in reading but also to difficulties in understanding mother tongue (World Bank 2018d). One listing other subjects. In general, there are no textbooks of Indonesian languages counts more than 700 used in regular classes in the mother tongue, no spread throughout the archipelago, ranging from teacher guides, and in most contexts few reading those with many speakers (Javanese, Sundanese, materials in the mother tongue that could help Balinese) to those with few native speakers left with literacy and learning.77 (Ethnologue 2019). Since independence, the na- In theory, initial instruction and literacy are per- tional language, Bahasa Indonesia, has penetrated mitted in Indonesia in the mother tongue (partic- throughout the country both through formal ed- ularly in Papua). Until recently, only the larger lan- ucation and informal media. But in some regions guage groups (Javanese, Sundanese, and Balinese) of the country, the mother tongue/home language and some of the many smaller language groups of remains the dominant language of daily use. Papua have had the opportunity and ability to pro- While early childhood development programs­ mote their mother tongue and the culture in which —­ play groups and kindergartens­ —­ may use the it is embedded in school, either rarely as the lan- mother tongue, Bahasa Indonesia is the language guage of initial literacy or more often as a subject Equity and inclusion in learning  •  53 under local curriculum content (muatan lokal). More The usual official response to such a situation is recently, through the INOVASI program,78 local to close small schools and merge them with another government pilots in Bima and East Sumba have often distant school. But this only makes it more dif- been implemented with a focus on providing ficult for children in remote areas (especially in the teachers with a strategy to transition from mother early grades) to get to school and also often elimi- tongues/regional languages to Bahasa Indonesia.79 nates the one agency in a village­ the school­ —­ —­ that The extent to which this language issue actually may serve as a center of cultural and social life. interferes with learning­—­ or increases the disparity Multigrade teaching is a well-known solution to in outcomes between those who can manage the this problem, where one teacher instructs children transition and those who cannot­ —­is not complete- of more than one grade. Although there have been ly clear in Indonesia. No doubt in some regions and successful pilot projects in Indonesia using this among some populations, it is a factor in low per- approach, with teachers trained and special mul- formance. The Early Grade Reading Assessment in tigrade curriculum adaptations developed, ­ to date 2014, for example, showed a significant difference the approach has not been promoted in either pre- in oral reading fluency between children whose service or in-service teacher training. There is cur- home language was the same language (the na- rently little in the preservice teacher education cur- tional language, Bahasa Indonesia) used in the riculum on multigrade teaching. In-service training school as opposed to those who used a different for multigrade teaching tends to be donor-driven home language­ —­a difference which, in turn, has and small in scale and has yet to be sustained in an impact on the level of reading comprehension.80 official government policy. While Bahasa Indonesia is the national language, a sizable proportion of the population is not fluent in School violence it. This fact may explain Indonesia’s generally poor School violence affects both boys and girls, and performance on international comparative assess- more needs be done to make schools safe spaces ments. The widespread use of multiple-choice for learning. More than 20 percent of Indonesian questions in Indonesia’s national examinations students ages 13–17 report being bullied in the last may also contribute to disguising the true extent of 30 days (WHO 2015). Bad enough in itself, violence the language issue. also reduces educational attainment and learning. Safe schools benefit everyone, so teachers need Remoteness and regional underdevelopment respectful work environments and confidential are also important for inequity channels for reporting inappropriate behavior. A large number of isolated, remote, and extremely Studies on school violence have found that boys rural schools remain in seriously underdeveloped experience greater levels of violence in any form areas­—­ facing special challenges for equity. A survey at school than girls (PLAN 2015). Beyond school of 270 remote primary schools in five disadvantaged experience, recent data from the 2018 National districts found that student learning outcomes were Survey of Children and Teenagers’ Life Experience on average two grade levels below the national tar- (for individuals ages 13–24) show that 33 percent get. Only 40 percent of the teacher workforce were of males were victims of physical violence while civil servants, while 42  percent were school-con- 20 percent of females reported the same experi- tracted. Thirty four percent of teachers still held high ence. The survey also explored other types of vi- school degrees. Moreover, only 29  percent were olence, including sexual-based violence and emo- connected to the electricity grid, and only 17 percent tional-psychological violence. Female respondents had internet access (Susanti et al. 2020). Resources reported experiencing more sexual-based and are often scarce and expensive. Certified teachers psychological violence than males. do not want to teach in them­ —­ thus a dependence In addition, cyberbullying is increasingly docu- on less qualified contract teachers. And parents face mented as a problem that children face at home difficulty both in understanding the importance of and in school. According to a series of online polls education in such a context and, even if they do, in conducted on UNICEF’s social media platform, physically getting their children to what might be U-Report, bullying is the number one concern of rather distant schools. Thirteen thousand villages adolescents in Indonesia, closely followed by edu- have no ECED services (PODES 2018). But there are cation, and popularity/identity issues (box 3.1). also 48,000 thousand primary schools with fewer the 100 students and, of these, 18,000 have fewer Early marriage than 60 students (DAPODIK 2018). Junior second- A particularly serious factor for school dropout ary schools in these areas, when they exist, often and exclusion is early marriage­—­affecting 12 per- suffer from a lack of trained teachers and resources. cent of girls in Indonesia, compared with less than 54  •  The Promise of Education in Indonesia BOX 3.1 Roots Indonesia peer violence and bullying prevention pilot Nationally representative data on bullying in In- In South Sulawesi, bullying perpetration fell donesian schools from the Global School Health by 29  percent and victimization by 20  percent. Survey (GSHS) in 2015 suggests that more than Teachers and facilitators also noted important 21  percent of children ages 13–15, or 18  million improvements in the behavior of students, in- children, experienced bullying in the previous cluding those selected to be agents of change. month. Bullying can have short- and long-term In Central Java, bullying perpetration and victim- impacts on both victims and perpetrators. Ag- ization increased slightly from the baseline due gressive behaviors among youth have been as- to improved awareness of students and teachers sociated with poor educational outcomes and about what constitutes bullying, leading to an in- social functioning, as well as an increased risk of crease in reporting. psychiatric disorders (Bowes et al). The sustainability of the program depends on UNICEF designed an intervention to prevent having good facilitators who can communicate bullying in junior high schools in Indonesia, called effectively both with students and with school the Roots Indonesia pilot, through workshops staff and parents. Program effectiveness, like with the government, universities, youth, and civil other whole-school programs focused on sys- society. The pilot was conducted in South Sulawe- temic behavior change, is likely to take more than si and Central Java, in both rural and urban areas. one year to become fully integrated (typically 2–3 It was adapted from a North American program school academic years), so it will be important called Roots, focusing on building a positive for schools to have a sustainable method for se- school climate through student-­ led activities. lecting student Agents of Change, and access In Roots Indonesia, students “voted” on their to facilitators. UNICEF is currently working with peers whom they spent the most time with to be- district and province government to ensure that come “agents of change” using social network these components are included in the govern- theory. These students are highly connected and ment scale-up plans. In South Sulawesi, govern- have the most influence to change attitudes and ment and schools have opted to embed the pro- behavior on the largest numbers of their peers. gram with an existing extracurricular program Approximately 40 agents of change went through called OSIS (Organisasi Siswa Intra Sekolah). In regular facilitated after-school sessions (12 in all) to both provinces, facilitators will continue to be re- identify problems in their schools and to design, cruited from the existing program of the govern- implement, and evaluate the solutions themselves. ment, Forum Anak (or Child Forum). Source: Evaluation of the Roots Indonesia Peer Violence and Bullying Prevention Pilot: South Sulawesi and Central Java. 1 percent of boys dropping out early because of 1.4 million women ages 20–24 who were married marriage (table 3.1.) before age 18 (UNICEF 2016a). In 2015, girls who married before age 18 were six times less likely to complete upper-second- School completion remains a problem of equity ary school than girls who married after that age. Even if it were possible to get all children enrolled Among ever-married women ages 20–24, only in ECED services and primary schools, as man- 8.9 percent of those who married before age 18 dated by the Sustainable Development Goal 4, completed senior secondary school, and 40  per- the number of children dropping out of school in cent of them had primary school as the highest Indonesia would likely remain high. As one might level of education completed.81 expect from the above analysis, this is caused by a The rate of child marriage in Indonesia has been range of factors, especially economic factors, such declining in the recent years, but it is still higher as being forced to work to support the family, mar- than in neighboring countries. Indonesia’s child riage at an early age, and disabilities (table 3.1). marriage rate, defined as proportion of women During the field visits conducted for a World ages 20–24 married before 18, is lower than India’s Bank subnational review of gender gaps and chil- but twice Vietnam’s. And because of the size of the dren with disabilities, principals and district educa- Indonesian population, the country is among the tion officers noted that boys drop out of school for top 10 countries with the highest absolute num- financial reasons at senior secondary level but also ber of child brides, ranking seventh globally with for an array of other reasons related to negative Equity and inclusion in learning  •  55 TABLE 3.1 Main reasons for dropping out of school by sex Indonesia Main reason Male Female Total Insufficient funds 33.0 30.7 32.0 Work 18.7 13.7 16.5 Marriage 0.4 12.3 5.6 Disabilities 5.4 4.8 5.1 Taking care of the household 0.4 3.7 1.8 Assumption that current education is enough 4.3 5.2 4.7 Economic conditions 2.9 1.9 2.5 Distance to school 3.7 3.3 3.5 Other 31.3 24.5 28.3 Total 100 100 100 Source: SUSENAS 2017. social pressure including bullying, an unwillingness that all children have equitable access to good to attend school, a focus on video games, and drug quality schooling and opportunities to learn. use as well as a lack of parental oversight. The lat- • At different levels, identify districts, communi- ter reason was most often cited in rural areas and ties, families, and children who continue to be was often coupled with complaints of parents not excluded from school and therefore disadvan- understanding the importance of education due to taged in their learning. low levels of educational attainment themselves. • Analyze the reasons for this exclusion and ineq- uity and develop both national and local pol- Summary icies and school practices to overcome these Having equitable opportunities to access the ed- reasons. ucation system, whether at preschool or primary school level, by overcoming the factors of exclu- What can be changed or improved? sion outlined above, is only the first step to boost- ing learning in Indonesia. The strength of these Accurate mapping of patterns of exclusion from­ —­ factors­ —­gender biases (conscious or not), poverty, and disparities within­—­ education should be done disabilities, remoteness, language, violence­ —­will routinely and continually likely be ever-present to make the goal of boosting The full range of indicators linked to the achieve- —­ learning for all difficult to achieve­ and even more ment of SDG 4 can be a framework for the identi- so if the quality of the schools these at-risk chil- fication of patterns of exclusion. Likewise, a variety dren enter is inadequate to the task at hand. Spe- of tools (household surveys, international stan- cific policies and programs at national and local dardized tests, school-based assessments) can be levels­ —­PIP and BOS, disability-inclusive schools, made available for evaluating access and partici- multigrade teaching, mother-tongue based ini- pation. This can be done first at the national level, tial literacy, zero tolerance of violence­—­ must be to identify population groups or regions character- put in place to begin the battle toward genuinely ized by different patterns of exclusion, and analy- inclusive education. Their success can be guaran- ses can be carried out to determine the extent and teed, however, only if the education system itself nature of, and the reasons for, such exclusion. For has a vision and mission dedicated to equity and example, ethnic group X in province Y is especial- inclusion. ly unwilling to send children at an early age to an ECED service, or children in a remote and linguis- Recommendation 3: Act to guarantee tically homogeneous district have difficulty using equitable access to good quality Bahasa Indonesia as the language of instruction in education and learning by children primary school. most excluded from the system At the local level, potential learners of school • Ensure that the vision and mission of the Min- age also need to be mapped and counted, in- istry of Education and Culture, and the policies cluding those often difficult to find (such as chil- that flow from it, are always focused on ensuring dren with disabilities or of migrating families). This 56  •  The Promise of Education in Indonesia requires more direct household mapping, perhaps and processes (as mandated by the Minimum Ser- done by the local government and/or the school vice Standards) but also issues concerned with committee along with school staff, to find children nonenrollment, repetition, dropout, and comple- not enrolled and identify the often-multiple rea- tion rates, all indicators of exclusion. sons for such nonenrollment. • Any future revision of the Minimum Service After analyzing patterns of exclusion, appropri- Standards can develop standards related to ate policies and practices need to be developed indicators of exclusion, whether at the time of and put in place to promote inclusion and equity to enrollment or throughout the student’s school achieve SDG 4. career. At the national level, education and social in- • MoEC and MoRA can ensure that the school fluence campaigns to bring attention to and sup- self-assessment and development plans include port existing regulations on inclusive education clear indicators concerned with exclusion. and against early marriage would be helpful, along with campaigns to draw attention to the problem Recommendation 4: Act to improve of violence in schools and ways to reduce it. learning outcomes of the lowest At the local level, districts and schools can act performers to reinforce central policies (BOSDA in addition • Make help for low-performing districts, schools, to BOS, district declarations concerning inclusive and students a priority. schools) and, perhaps more important, act to get • Use high-quality national student assessments individual children enrolled in­ —­and succeeding in­ to diagnose (identify and explain) low perfor- —­ school. This means that local mapping must be mance issues and inform instruction in order followed up by advocacy toward families reluctant to enhance performance. Ensure that teachers to school their children (or enroll them in an ECED routinely assess performance daily through for- service) and then specific practices to make enroll- mative evaluation approaches. ment and success possible­ —­ facilities for children • Harness learning data to identify lowest- with physical impairments, multigrade teaching performing schools and provide extra assis- for small schools, the synergistic combination of tance to them. mother tongues with national language in the early grades, and so on. What can be changed or improved? What are the options to implement this A culture of classroom assessment can identify change? gaps in student development and learning Indonesian leaders at all levels can recommit their Measurement makes learning visible, but without energies and the resources available to ensure eq- follow-up action and adjustment, assessment is uitable access to good quality education. worth little for improving schools, teaching, and • MoEC, MoRA, and MoHA, from the central level learning. At the most basic level, a culture of class- to local offices and schools, can become more room assessment can be fostered to identify gaps aware of the nature of exclusion and the extent in student development and learning and to help of inequity in education. resolve them. Assessment can highlight where • Districts and provinces can provide additional support is most needed, but such support then dedicated funds from their own budget sources needs to actually be provided for this approach to for hard-to-reach populations not currently en- be effective. rolled in the education system. • MoEC and MoRA can undertake/support more Make help for low-performing districts, schools, household surveys to have a clearer picture of and students a priority who remains excluded from education and why­ To overcome student assessment obstacles, In- —­ and not simply trust administrative data that, donesian leaders at all levels need to foster a pro- by definition, usually exclude the excluded from cess that recognizes underperformance in learning being counted. and destigmatizes targeted assistance to low- • Such surveys can include categories of children performing districts, schools, and students. Oth- not in school and collect data related to reach erwise, low levels of human capital are likely to category so that education officials have a bet- persist. ter idea about the true extent of the challenge. Indonesia’s education system can improve The tools of school-based management­ —­ learning outcomes for all students. In the short school self-assessments and school development term, the focus should be on how to improve out- plans­— can describe and analyze not only inputs comes for the lowest-performing students and Equity and inclusion in learning  •  57 schools, since these students are being left behind student learning outcomes in primary school­ —­ and lack the tools to catch up. and act on that information to support districts and schools that are not achieving the desired Provide schools with information on student outcomes. Avoid an end-of-primary exam in achievement by grade and by question grade 6, which is less likely to be used to identi- The national primary exam was abolished in 2015 fy lower performers but instead deters students (MoEC Regulation No. 58/2015). Since then, MoEC from progressing, and more likely to be politi- has improved its system of assessment through the cally challenging. introduction of the Indonesia Student Competency • Link the early and late primary grade assess- Assessment (AKSI) (Asesmen Kompetensi Siswa ments (and more routine informal formative Indonesia), a sample-based assessment, and in- assessments in classrooms) to in-service teach- creased exam integrity for the remaining grade 9 er-training support to make sure teachers know and 12 national exams, creating an opportunity for how to use this information to target support to more detailed and useful analyses of achievement all students and especially to low-performing at district and school levels. Indonesia should con- students. tinue to improve its student assessment system • Use the student learning data produced by and, most important, needs to act on evidence these and existing assessments to identify the from the assessments to make schools work for lowest 40  percent of schools and students all learners. Student assessment is one of the key at primary, junior, and senior secondary lev- areas in the ministry’s priority programs­—­the Free- els. Reward and encourage high-performing dom to Learn. MoEC plans to abolish the national schools to support and work closely with low- exam for grade 9 and 12 and replace it with AKM performing schools through teacher and prin- (Minimum Competence Assessment) that would cipal working groups and zones. Reward and mainly evaluate students’ literacy and numeracy encourage high-performing districts to support competence for students in grade 5, 8, and 11. low-performing districts. Similar to AKSI, AKM is closely linked to PISA • Continue improving the integrity of the grade 9 and to a lesser extent TIMSS in its question design­ and 12 exams. —­ and is part of an effort to improve Indonesia’s poor showing on these assessments. AKM covers What are the options to implement this multiple grades and includes the capacity to pro- change? vide some schools with information on the aver- age of student achievement by grade, by subject, Indonesian leaders at all levels of government can and by question. This initiative is in the process of foster recognition of underperformance in learning being expanded to all schools with support to en- To overcome these obstacles, Indonesian leaders sure useful analysis of the information provided. at all levels of government can help foster recogni- Schools and subnational governments could use tion of underperformance in learning and destig- results to improve teacher practices, mobilize com- matize targeted assistance to low-performing dis- munity support, and provide additional services tricts, schools, and students. for students behind the curricular learning goals. Districts and provinces can send a strong signal that all children can learn, and that school leaders Use high-quality student assessments to and teachers are accountable for ensuring that this diagnose issues and inform instruction happens and for using student learning data to • Give special attention to success in early grade identify and support weak classes and struggling literacy and numeracy. This requires promoting students. School leaders should be encouraged a seamless pedagogy and curriculum between to ensure that only good teachers trained in early ECED services and primary school, with teach- learning are assigned to the early grades. Teachers ers specifically trained in early grade teaching are already required (on paper) to include tutoring (including identifying children with reading de- as a part of their 40 weekly academic hours (MoEC lays). Support the current plan to use AKSI-for- Regulation No. 15/2018). This time can be focused schools­ —­a standardized, formative, school- on addressing identified learning gaps in individu- based assessment in grade 2 or 3­ —­to help al students. teachers, schools, and communities identify Consistently low-performing schools could re- early weaknesses in learning. ceive special coordinated support from provin- • Support the plan to implement a national as- cial and district offices, supervisors, principal and sessment in grade 4 or 5 to provide information teacher working groups, other more successful to the district and central government about schools, and the LPMP. 58  •  The Promise of Education in Indonesia • MoEC and MoRA can continue improving the • Share student and classroom results with integrity of the grade 9 and grade 12 exam by parents and teachers within three months expanding computer-based testing and online of the formative, school-based assessment, assessment and linking them to broader EdTech along with a plan to improve the results. integration initiatives. • Through the structures of zones and work- • Central ministries: ing groups, support teachers and schools • MoEC and MoRA can require a school- to remediate student learning gaps through based assessment and a national assess- student tutorials, in-service teacher training, ment in two different primary grades to help mentoring, and other approaches. identify and then address learning inequi- • Schools can: ties. Results could be reported to all stake- • Use the national assessment results to im- holders. The exam design can be simple and prove teacher practices, mobilize community short, to capture essential skills and com- support and provide additional services for petencies for what primary students should students who are behind in mastering the learn. curricular learning goals. • MoEC and MoRA can help districts de- • Use the school-based formative assessment sign strategies to support working groups, results to identify in what grades, subjects, schools, and teachers in order to remediate and subject content students perform less poor student learning and to improve teach- well and adjust the syllabus and teaching ing practices based on the results of the na- methods as required. tional primary student assessment. • District education offices can: Recommendation 5: Ensure that • Organize a formative assessment of grade 3 all students, including those with or 4 students at the beginning of the school disabilities, succeed year; AKSI-for-schools is an example of a • Identify children with disabilities as soon as pos- promising approach. sible so that early childhood interventions can Equity and inclusion in learning  •  59 be provided; train teachers to work with chil- • Refine the curriculum for children with disabilities —­ dren who have disabilities­ and include them in and provide teachers with training on appropri- learning.82 ate strategies to teach students with disabilities, • Assess to what extent in the local context dis- which would help to improve the access to and parities in achievement are linked to gender, the quality of inclusive education if combined language interference, socioeconomic status, with accessible infrastructure and equipment. school violence, and early marriage. • Consistently combat school violence, found • Ensure that small rural and remote schools can both in bullying and in more serious physical provide quality education. harassment. • Put in place­—­and implement­ —­ measures at the What can be changed or improved? local level to discourage early marriage and to • Identify and diagnose disparities in learning enable young girls who are married to continue achievement among groups of students and their education. then improve instructional practices and sup- port so that all students­ —­ urban and rural, rich What are the options to implement this and poor, boys and girls, with disabilities and change? without­—­can succeed. • Remoteness. MoEC can help ensure that mul- • Ensure that small rural and remote schools can tigrade teaching is included in preservice edu- provide quality education despite their disad- cation programs and provided to all candidate vantages by ensuring that teachers assigned to teachers, that the national curriculum is adapt- these schools understand and can practice mul- ed for it, and that adequate facilities and mate- tigrade teaching. rials are provided to facilitate it. • Promote the mother tongue as the language of • Poverty. MoEC and MoF can continue to ex- instruction in early childhood development pro- pand the provision of BOS and BOP–PAUD to grams and the early grades of primary school reduce the cost of schooling and of PIP to pro- where the majority of children in a class speak vide subsidies to disadvantaged families to help the same non-Bahasa Indonesia language at ensure their children enroll and remain in both home, leading to a smooth transition to mastery nonformal and formal schools. of Bahasa Indonesia in later years of primary • Language. Where appropriate, MoEC can en- school. courage use of the mother tongue in ECED • Ensure at the district level that children with dis- services and the early grades of primary school abilities are identified as early as possible, pro- and provide adequate materials and teach- vided with early childhood interventions where er training to implement such mother tongue possible, eventually enrolled in preschool and programs and ensure a successful transition then primary school, and appropriately served. to mastery in Bahasa Indonesia. Specifically, provinces and districts can be encouraged to develop implementation guidelines for using the mother tongue as the language of instruc- tion. Local governments can actively foster and develop the use of mother tongue languages and provide in-service training and guidelines to strengthen the transition to Indonesian; and, where possible, reading books based on local culture and contexts, using the local mother tongue and Bahasa Indonesia, should be made available in schools.83 • Disability. MoEC, MoHA, and the Ministry of Social Welfare can work together to ensure the early identification of children with delays and disabilities by working with schools and village and neighborhood authorities. The ministries can provide early childhood interventions and financial and technical support to ECED serv- ices and primary schools to enroll these children and ensure that they are included in learning to the extent possible. The ministries can invest 60  •  The Promise of Education in Indonesia and promote school designs facilitating access Guidance Teacher Competence Development in Indo- for children with disabilities. nesian Inclusive Schools.” Indonesian Journal of Dis- • Violence in schools. All relevant actors, local ability Studies 5 (2): 251–267. and national, can work together to develop and Fasih,T., R. Afkar, and H.B. Tomlinson. 2018. Learning for expand pilot projects that attempt to reduce All: Towards Quality Education for Enhanced Productiv- the rate of bullying and physical harassment in ity and Economic Growth in Indonesia. Washington, DC, schools. World Bank. http://documents.worldbank.org/curat� - • Early marriage. All relevant actors­—­government, ed/en/462941519229451139/Learning-for-all-towards civil society, and religions­ —­work together to -quality-education-for-enhanced-productivity-and discourage early marriage and, where it exists, -economic-growth-in-Indonesia. to ensure that married girls can continue their Kostan, H. 2017. Representasi Sosial Mengenai Siswa den- education. gan Disabilitas pada Siswa Non-Disabilitas di SMP In- klusi di DKI Jakarta. References Male, C. and Q. T. Wodon. 2017. Disability Gaps in Educa- ACDP (Analytical and Capacity Development Partnership). tional Attainment and Literacy. Washington, DC: World 2013. Free Basic Education Strategy Development. Bank. Volume 1 Final Report. Jakarta: Education Sector, Ana- MoWECP (Ministry of Women Empowerment and Child lytical and Capacity Development Partnership. Protection) and BPS (Badan Pusat Statistik). 2018. Pro- ———. 2015. Rapid Assessment of the Cash Transfer for fil Anak Indonesia, 113. Jakarta: MoWECP. the Poor Students Program/Bantuan Siswa Miskin Nakajima, N., A. Hasan, H. Jung, S. Brinkman, M. Prad- (BSM). Jakarta: Education Sector, Analytical and Ca- han, and A. Kinnell. 2016. “Investing in School Read- pacity Development Partnership. iness. An Analysis of the Cost-Effectiveness of Early Afkar, R., J. de Ree, and N. Khairina. 2018. Who Learns Childhood Education Pathways in Rural Indonesia.” What in Basic Education? Evidence from Indone- Policy Research Working Paper 7832, World Bank, sia. Washington, DC: World Bank. https://doi.org/ Washington, DC. 10.1596/32396. Olusanya, B., V. Krishnamurthy, and D. Wertlieb. 2018. Afkar, R., N. Yarrow, S. Surbakti, and R. Cooper. 2020. “Re: Global Initiatives for Early Childhood Develop- Inclusion in Indonesia’s Education Sector: A Sub- ment Should Be Disability Inclusive.” Pediatrics 141. national Review of Gender Gaps and Children with e20174055. 10.1542/peds.2017–4055. Disabilities. Policy Research Working Papers, World PLAN. 2015. Are Schools Safe and Equal Places for Girls Bank, Washington, DC. https://doi.org/10.1596/1813 and Boys in Asia? https://plan-international.org/ -9450-9282. publications/are-schools-safe-and-equal-places-girls Alatas, H., S. Brinkman, M. Chang, T. Hadiyati, D. Hartono, -and-boys-asia-0. A. Hasan, and R. Roesli. 2013. “Early Childhood Educa- RISKESDAS 2018. Riset Kesehatan Dasar, Ministry of Health. tion and Development Services in Indonesia.” In Edu- https://www.kemkes.go.id/resources/download/ cation in Indonesia, edited by D. Suryadarma and G. W. info-terkini/hasil-riskesdas-2018.pdf. Jones. Singapore: Institute of Southeast Asian Studies. Suryadarma, D. 2015. “Gender Differences in Numeracy in Bowes, L., C. Joinson, D. Wolke, and G. Lewis. 2015. “Peer Indonesia: Evidence from a Longitudinal Dataset.” Ed- Victimisation during Adolescence and its Impact on ucation Economics 23 (2): 180–198. Depression in Early Adulthood: Prospective Cohort SUSENAS 2018. Survei Sosial Ekonomi Nasional. Badan Study in the United Kingdom.” The BMJ 2015: 350. Pusat Statistik. Brinkman, S. A., A. Hasan, H. Jung, A. Kinnell, N. Nakaji- Susanti, D. 2018. “Motif Kepala Sekolah dalam Penyeleng- ma, and P. Menno. 2016. “The Role of Preschool Qual- garaan Sekolah Inklusi SDN Pajunan II Kalitidu Bojone- ity in Promoting Child Development. Evidence from goro.” Jurnal Paradigma 6 (1). Rural Indonesia.” Policy Research Working Paper 7529, Susanti, D., J. Priebe and A. Bah. 2020. The hard truth: World Bank, Washington, DC. Challenges of primary education in rural and remote Chang, M. C., A. Hasan, and M. Hyson. 2013. Early Child- Indonesia, World Bank Blog hood Education and Development in Poor Villages of UNESCO Institute of Statistics (United Nations Educational, Indonesia: Strong Foundations, Later Success. Direc- Scientific, and Cultural Organization). 2018. Education tions in Development. World Bank: Washington, DC. and Disability: Analysis of Data From 49 Countries. Infor- Cislowski, H. 2018. “Review of the System for Assessment mation Paper Number No. 49 Paris, France: UNESCO. Student Learning.” Mimeo. http://uis.unesco.org/en/news/education-and-disability DAPODIK (Data Pokok Pendidikan Dasar dan Menengah). -analysis-data-49-countries. 2018. UNICEF (United Nations Children’s Fund). 2016a. Child Ediyanto, E., A. Mulyadi, A. Supriatna, and N. Kawai. 2018. Marriage in Indonesia: Progress on Pause. New York: “The Education and Training Program for Special UNICEF. https://www.girlsnotbrides.org/wp-content/ Equity and inclusion in learning  •  61 uploads/2016/11/UNICEF-Indonesia-Child-Marriage World Bank. 2018a. Growing Smarter: Learning and Equi- -Research-Brief-1.pdf. table Development in East Asia and Pacific. Washing- ———. 2016b. Towards Inclusive Education: The Impact of ton, DC: World Bank. doi:10.1596/978–1-4648–1261–3. Disability on School Attendance in Developing Coun- ———. 2018b. Human Capital Project. Washington, DC: tries. New York: UNICEF. World Bank. http://www.worldbank.org/en/publication/ ———. 2018. Progress in Measuring Global School En- human-capital. rollment Gaps for Children with Disabilities. UNICEF. ———. 2018c. “Why Do Indonesian Adolescent Boys https://blogs.unicef.org/evidence-for-action/progress Have Poorer Schooling Outcomes than Girls?” EAP- -in-measuring-global-school-enrollment-gaps-for GIL Policy Brief 5, World Bank, Washington, DC. -children-with-disabilities/. http://documents.worldbank.org/curated/en/1686215 UNICEF (United Nations Children’s Fund) and MoEC (Min- 43604051631/. istry of Education and Culture). Forthcoming. SDG4 ———. 2018d. World Development Report: Learning to Monitoring Report 2019. Jakarta: UNICEF. Realize Education’s Promise. Washington, DC: World Vargas-Barón. E., J. Small, D. Wertlieb, H. Hix-Small, R. Bank. Gómez Botero, K. Diehl, P. Vergara, and P. Lynch. 2019. “Global Survey of Inclusive Early Childhood Develop- Government laws and regulations ment and Early Childhood Intervention Programs.” Law No. 8/2016 on People with Disabilities. http://www. RISE Institute, Washington, DC. dpr.go.id/dokjdih/document/uu/1667.pdf. Wardany, O. F., M. F. Hidayatullah, and M. Wagimin. 2018. MoEC Regulation No. 70/2009 on Inclusive Education. “Activities for Fostering Disability Awareness and https://jdih.kemdikbud.go.id/arsip/Permendikbud_ Friendship in Inclusive Schools.” Indonesian Journal of Tahun2009_Nomor070.pdf. Disability Studies 5 (1): 106–14. MoEC Regulation No. 58/2015 on Administering School/ WHO (World Health Organization). 2011. Summary World Madrasah Exams or Other Equal Forms. http://simpuh. Report on Disability. https://apps.who.int/iris/bitstream/ kemenag.go.id/regulasi/permendikbud_58_15.pdf. handle/10665/70670/WHO_NMH_VIP_11.01_eng.pdf. MoEC Regulation No. 15/2018 on Meeting the Work Ex- ———. 2015 Indonesia 2015 Fact Sheet. https://www.who. penses of Teachers, Headmasters, and School Su- int/ncds/surveillance/gshs/2015_Indonesia_GSHS_ pervisors.  http://simpuh.kemenag.go.id/regulasi/ Fact_Sheet.pdf. permendikbud_15_18.pdf. 62  •  The Promise of Education in Indonesia Equity and inclusion in learning  •  63 CHAPTER 4 Preparing and supporting teachers G ood teachers are central to student learn- teachers in the MoEC system will retire in 10 years ing. To improve their quality, Indonesia can starting in 2018 (SAKERNAS 2005 and 2015). The select only the most qualified and motivated quality of the system in the decades ahead will de- candidates and to assist them more effectively in pend on the policies to replace this cohort of retir- their training and professional development, both ees. Action is needed to ensure that the best pos- before they enter the classroom and throughout sible replacements are employed regardless of the their careers. Without consistently better instruc- mechanism for hiring them. tion, Indonesian students are unlikely to achieve the foundations for later learning or gain the skills Teacher selection needed for the 21st-century workplace in a com- The most effective way to improve teacher quali- petitive and globalized economy. ty and therefore student learning is to hire only More than 3.3  million teachers work in Indo- the highest-quality candidates to become teach- nesian classrooms every day, along with 365,600 ers. The planned increase in hiring of civil servant professors and lecturers at the tertiary level and teachers of about 100,000 each year for next 10 826,300 in ECED (MoEC 2020; EMIS 2020). For years has the potential to transform the quality of students to learn, teaching has to be effective, the entire primary and secondary education sys- since well-trained and motivated teachers are the tem. Among observable characteristics, subject most fundamental ingredient for learning after the matter knowledge is one of the most important students themselves. Indonesia should focus on teacher characteristics for student learning (World hiring the brightest students to be teachers, train Bank 2018c). The 2011 moratorium on hiring teach- and pay them well, and deploy them efficiently and ers and 2013 prohibition on using local govern- equitably across the archipelago. It needs to con- ment funds to hire teachers has resulted in multiple tinually develop teachers’ skills through effective parallel systems for hiring educators in Indonesia, professional development. And to keep the best making it challenging to ensure those hired meet teachers in the classroom, it can provide incentives the highest standards. based on performance and accountability. Teachers are recruited either through the civil The quality of teaching varies widely, and stan- service or as “honorarium” teachers, who are on a dards are unevenly attained. Ample evidence from lower pay scale than the civil service. Honorarium across the globe shows the central importance of teachers were usually hired to respond to an ear- teachers in the education process. For example, lier deficit of teachers or, as is still the case, since a good teacher increases the academic knowl- the absolute number of teachers is adequate, to edge of U.S. students by 1.5 academic years, while respond to personal or financial considerations. low-quality teachers increase it by only half an ac- District governments and schools resort to hiring ademic year (Hanushek 2011). That generates large non-civil service teachers to fill vacancies using var- differences in learning, depending on the quality ious selection processes and criteria and tapping a of teachers as students’ progress through their variety of funding sources to pay their salaries. formal education. Problems persist in teaching Classroom teachers fall into different catego- quality despite efforts to improve it. Selecting and ries, with different hiring processes and different supporting teachers to focus on classroom instruc- qualifications, salaries, and benefits. For the Min- tion throughout their careers is one of five factors istry of Religious Affairs, civil service teachers and that drives learning, according to the World Bank’s principals make up 19  percent of the workforce, Growing Smarter report (2018a). Indonesia has and non-civil services 81 percent (MoRA 2018 Sim- made efforts to improve the quality of teaching, patika). For the Ministry of Education and Culture, but extensive problems persist. civil servants are 40 percent of the teacher work- Indonesia’s large number of teacher training force, while teachers hired by community founda- institutions (421) produce more than three times tions (yayasan) are 25 percent, honorary teachers the number of candidate teachers required by hired by the districts are 7 percent, and part-time the public service system. The very large number teachers (often hired directly by schools) make up of candidates, roughly 300,000 in 2017, includes the remaining 29 percent (World Bank 2019). many of low quality, linked to the fact that 58 per- Civil service teachers are known as PNS teach- cent of the teacher training institutions are them- ers (Pegawai Negeri Sipil,  or civil services). PNS selves of low quality and not accredited.84 What’s teacher candidates take a basic competency test needed now is to shift from the quantity of teacher (SKD) and subject-specific test (SKB) administered graduates to the quality of teacher graduates. by MoEC or MoRA following the national civil serv- With teachers eligible to retire at age 60 in In- ice (BKN) exam. These are separate from the certi- donesia, an estimated 55  percent of civil service fication process. Preparing and supporting teachers  •  65 Civil servant teacher hiring pathway1 requirements for contract teachers vary by prov- Step one: Identification of Need. Law No. 14/2005 ince and district. on Teachers and Lecturers on teacher employ- ment, deployment, and transfers and MoEC Regu- Honorarium teacher hiring pathway lation No. 20/2010 give districts and provinces the Recruitment takes place at the level of the school. authority to identify needs for civil servant teach- BOS or other locally generated funds, such as par- ers and teaching personnel: ents’ contributions, are used, and there are no uni- • Each school supplies data on the need for form standards for hiring, so quality varies greatly. teachers by subject matter to the district (pri- mary and junior secondary education) and Preparing teachers province office (senior secondary education). Indonesia faces a considerable challenge in provid- School also enters the same data into DAPODIK ing an education workforce to deliver high-quali- of MoEC. ty teaching to every student across a country of • District and province offices send the teach- 17,000 islands and more than 700 ethnic and lin- er request to BKD (Regional Personnel Office) guistic groups. The government takes this chal- and BKD sends the request to KemenPAN-RB lenge seriously and continues to refine its policy (the Ministry of Administrative and Bureaucratic framework to raise the status and quality of teach- Reform). ers and to improve education standards. • MoEC monitors the existing number of teach- ers in each school, updates the data on schools’ A major reform in 2005 increased teacher needs for teachers and informs KemenPAN-RB qualifications and pay on the number of teachers (per subject) needed. Indonesia launched a major drive to improve the • KemenPAN-RB asks for confirmation on the skills of its teaching workforce in 2005 by passing request, sent by BKD and MoEC, to BKN (Na- a comprehensive Teacher and Lecturer Law (Law tional Civil Service Agency ). BKN is the agen- No. 14/2005) to upgrade the career paths and man- cy that manages the database of civil servants agement of the nation’s teachers. The law, aimed and determines the number of new civil servant at improving teacher qualifications and pay scales, teachers to be appointed. BKN sends a con- mandated a university degree and teacher certifica- firmed number of new civil servant teachers to tion to upgrade teacher’s competencies, before they be appointed to KemenPAN-RB.85 were eligible for a professional allowance known as • KemenPAN-RB determines the allocation of TPG (Tunjangan Profesi Guru). As a result, the share new teachers to be appointed to district and of teachers with the minimum Bachelor’s (S1) degree province offices. increased from 37 percent in 2006 to 90 percent in 2016 (figure 4.1). By 2018 approximately 50 percent Step two: Selection. All aspiring civil servants, in- of teachers in Indonesia were certified, 17  percent cluding teachers, take the National Civil Service were eligible for certification, and 30 percent were Agency (BKN) examination, which is a standard- not eligible for certification (figure 4.2). ized online civil service exam (Tes Seleksi Kompe- The professional allowances that accompanied tensi Dasar or SKD­ —­basic competency selection the new certification process have led to pay in- test). Those wanting to be teachers take an addi- creases, effectively doubling the income of certi- tional exam set by MoEC which includes some sub- fied teachers. This has aligned teachers’ status with ject-specific questions. Candidates who achieve other professions such as law and medicine and above the minimum score on the BKN exam are provided incentives for teachers to upgrade their then sent to the districts and provinces for selec- qualifications. Many preservice lecturers, princi- tion. Districts and provinces can select any can- pals, and teachers indicated that the perception of didate from the pool, and there is no deselection teaching as a career is improving rapidly and that based on low scores on the MoEC portion of the more students are now attracted to enter the pro- examination. School councils have no legal right to fession because of these policies. be involved in civil servant or contract teacher ap- Building on the 2005 Teacher Law, Indonesian pointments, transfers, or removals. policymakers have made further changes. For ex- ample, the initial model of teacher certification, Contract teacher hiring pathway mostly based on a teacher portfolio with no de- Contract teachers are hired by districts and prov- monstrable impact on student learning, has been inces for one academic year using local funds. The modified. In 2012, the Pendidikan dan Latihan 1.  This pathway is for the recruitment of MoEC teachers; the MoRA recruitment pathway is similar. 66  •  The Promise of Education in Indonesia Most teachers have university FIGURE 4.1 of general education FIGURE 4.2 Half Bachelor’s degrees teachers are certified, and a significant number of noncertified teachers are Percent also eligible for certification Above S1 Below S1 100 Not 80 eligible Not 30% certi ed Certi ed 47% 60 53% Eligible 17% 40 20 Source: DAPODIK 2017, teacher census 2006 and 2016. Note: S1 denotes Bachelor’s degree. PNS and non-PNS refer to civil service and non-civil service status of teachers. 0 PNS Non-PNS PNS Non-PNS 2006 2006 2016 2016 Source: Teacher census 2006 and DAPODIK 2016. Note: S1 denotes Bachelor’s degree; PNS and non-PNS refer to civil service and non-civil service status of teachers. Profesi Guru (PLPG) model required a 90-period demand for newly graduated teachers, and ex- (60 hour) teacher training course. And in 2018, panding access to existing (and mandatory) post- the new Pendidikan Profesi Guru (PPG) model re- graduate teacher training programs are of critical quires training of one year for new teachers and six importance for education administrators at the months for existing teachers. subnational level. The quality and effectiveness of candidate se- Recruiting and training the right teachers is crit- lection, training, and certification all need im- ical for the future of education in Indonesia. De- provement. Indonesia should make the most of spite improvements, there are still problems with the impending retirement of more than half of civil creating a pipeline of qualified applicants who can servant teachers by filling these positions with only meet the desired standards (box 4.1). the best candidates. To do this, the quality of pre- Despite an increase in those attending teach- service training institutions can be upgraded with er colleges in recent years, teaching is still not training coordinated across the system and insti- attracting the best candidates into the career. In tutions consistently accredited. To take advantage high-performing systems, such as those in Fin- of having a large number of applicants, underqual- land, Japan, and Republic of Korea (box 4.2), ified candidates, particularly in the area of subject scores of those who want to become teachers are knowledge, should be removed from the selection above the national average. In Indonesia the aver- pool. age 2015 PISA score of those who want to study to become teachers was below the national aver- Reforming preservice teacher education age. An OECD analysis of 2018 PISA data indicates Indonesia’s regulatory requirements for pro- that students who have ability in math and science spective teachers are clear. Since the passing of want to become engineers and scientists rather the Teacher Law, the minimum academic require- than teachers.87 ment for entry into the teaching profession is a Admissions should be based on testing appli- four-year university degree at the S1/D4 level. cants’ suitability for teaching. Designing selection Regulating teacher training institutions, con- procedures that test applicants’ knowledge and sidered by educational experts to be of utmost characteristics (their suitability for teaching) be- importance, is insufficiently addressed by exist- fore they begin training would likely improve the ing policies.86 Regulating annual student intakes efficiency and effectiveness of preservice training. more tightly, to correlate these more directly with The set of characteristics people need if they are to Preparing and supporting teachers  •  67 BOX 4.1 Who decides to enter the teaching profession? Indonesian teachers used to be caricatured as 2006 to 1,934,326 in 2012­ —­and public institutes the downtrodden, poorly paid  Oemar Bakrie  in of teacher education (LPTKs) tend to be more se- the popular Iwan Fals protest song. But the pro- lective in the candidates they take in. fession has become more attractive since the But there has been criticism that the large 2005 Teacher Law increased the salaries of cer- pay increase has not achieved the desired in- tified teachers. crease in quality. A 2016 study of the salary ad- Indeed, the cohort of students entering pre- justment, “Double for Nothing,” concluded that service education in Indonesia is changing. In the in the short term there was no positive impact past, many students refused entry to other fac- on student learning: “Despite this improvement ulties entered teacher education departments in teacher pay and satisfaction, there was no im- —­ linked to their desired future­ as in commerce or pact on teacher effort toward upgrading their English­ —­with no intention of becoming teachers own skills, on teacher effort in the classroom, or entering teaching. Now, Indonesia’s certifica- or on the ultimate outcome of student learn- tion system and the accompanying professional ing.” Even so, the pay increase has increased allowances have made teaching a more attrac- the desirability of teaching as a profession in tive career choice, and more students are enter- Indonesia, which can have a long-term impact ing the teaching profession (World Bank 2018c). on education and ultimately on development by The number of students in teacher training col- attracting higher performing teachers (de Ree leges increased nearly fourfold­ —­ from 516,609 in et al. 2017). BOX 4.2 Republic of Korea’s restriction of teacher training admissions raised applicant quality The Indonesian government has no control over training places can be effective. This was achieved the number of applicants admitted to private primarily by limiting the number of places for the preservice training institutions. The doubling of four-year undergraduate degree required to be- salary through certification has made teaching a come a primary teacher­ —­to ensure that supply more appealing profession, resulting in a signifi- meets demand. As a result, primary teaching is very cant oversupply of candidate teachers and wide attractive, and primary education teachers come variations in quality. Restricting the number of from the top 5 percent of school leavers. This con- admissions could be helpful. trasts with fair and average school systems, which Korea’s success in attracting top students to draw their teachers from the bottom 30 percent of primary teaching is one example of how restricting school leavers (Barber and Mourshed 2007). become effective teachers is well known, and these vacancies arising in schools (particularly second- characteristics can be identified before students ary schools), a lack of multigrade teaching skills in enter teaching. Such characteristics include high small schools, and inexperience in the use of prob- overall literacy and numeracy, strong interpersonal lem-solving skills and child-centered methods in and communications skills, a willingness to learn, the classroom. and the motivation to teach. Successful systems de- sign selection procedures to test for these skills and Raising the standards of teacher training attributes and select applicants who possess them colleges before they enter training (OECD and ABD 2015). The government is trying to raise standards at The quality of teacher training programs re- teacher training colleges, known as LPTKs (Lemba- mains inconsistent, and the quality of the grad- ga Pendidikan Tenaga Kependidikan, or Institutes uates they produce should be improved. Some of Teachers Education), most of which are private. of the major problems include an oversupply of One element for raising standards is that as of often poorly trained teachers, a mismatch be- 2018 only LPTK with an accreditation level of A or tween the subject training of teachers and subject B are eligible to implement the required one-year 68  •  The Promise of Education in Indonesia postgraduate teaching qualification (PPG). Most reoriented to respond to basic gaps in subject of the private colleges are rated C. This does not knowledge in aspiring teachers to strengthen the include teacher training institutions under MoRA. capacity of Indonesia’s teacher workforce. Higher While it is difficult to slow the growth of private standards for entry into teacher preservice training institutions, the government is attempting to as- programs should allow teacher training institutions sure quality by entrusting PPG certification to only to focus on pedagogy as well as content. 45 institutions, which have A and B accreditation The Directorate General of Learning and Student ranks. Currently there are 422 LPTKs across the Affairs (DGLSA) of MoRTHE, now a part of MoEC, country­ —­of which only 41 are public. Of the 41 has a key role in managing the PPG program and public LPTKs, 7 percent are rated A, 35 percent B, ensuring that the LPTKs meet the requirements 23 percent C, and 35 percent are not yet accredit- before granting them approval to conduct the ed (figure 4.3). PPG program. Indonesia has sought to learn from Most of the accredited institutions are located in and apply the lessons of good practice in teacher Java and big cities on other islands. The former Min- training. MoEC Regulations No. 8/2009 and No. istry of Research, Technology, and Higher Education 87/2013 have attempted to set a new standard for (MoRTHE) was preparing an affirmative policy to preservice teacher training, and the PPG program’s expand the eligible list by including selected LPTKs approval and monitoring systems are intended to accessible in remote districts, though many of these function as a quality assurance mechanism. are accredited C or unaccredited, which improves geographic equity but raises quality concerns. Deploying teachers More high-quality teacher training institutions are needed both to train preservice teachers and Challenges of teacher distribution to provide courses for certifying existing teachers. Indonesia has several different systems for hir- The 45 institutions do not have enough capacity. ing and deploying teachers. But placing quali- In addition to the core task to educate their own fied teachers in areas in need is still a challenge students, in the past 12 years, the 45 institutions because of the lack of timely information about have served about 1.5 million teachers in the certi- requirements. The result is that teachers are de- fication process and tens of thousands of others in ployed unevenly across the country. Alternative ap- the process of academic upgrading to S1/D4. They proaches to filling rural and remote area teaching have limited staff to provide all these services, and positions should be explored, focused on develop- teacher loads are excessive. ing local teaching talent in these areas. This type of In addition, students entering preservice teach- approach has been implemented through central er training programs (post-Bachelor’s) often lack and district governments and LPTKs, with the dis- basic subject knowledge. Institutions must be trict identifying potential candidates and providing FIGURE 4.3 Teacher training institutions Number 400 300 200 100 0 Teacher training Teaching faculty, Open university, Teacher training university, public public public colleges, private Source: MoRTHE 2015. https://ristekdikti.go.id/wp-content/uploads/2016/01/RAKERNAS-REFORMASI-LPTK.pdf. Preparing and supporting teachers  •  69 allowances, while the central government provides districts do not have the financial capacity to fund tuition fees in designated LPTKs. However, on the numbers of teachers that they need. Some graduating from institutions in urban areas, some 3T districts have also rejected teachers from the teachers choose not return to their districts. SM3T and GGD programs in favor of hiring local Overall, Indonesia has an oversupply of teach- and non-civil service teachers (Kesuma et al. 2018). ers, counting both PNS and contract teachers, but they are unevenly distributed throughout the Matching the supply of teachers with demand education system. Entry to teacher training is un- To hire and deploy teachers more efficiently and regulated, so the competencies of graduates vary equitably requires more reliable data on supply considerably­ —­variation that continues in the pro- and demand. To get this, existing databases on cess of teacher allocations. Data are inadequate teacher management information systems must about where teachers are most needed, for what be interlinked and kept current. To avoid oversup- levels, and for what subjects. Some schools have ply, teacher training institutions can set quotas for a teacher deficit, some a teacher surplus, and the student teacher intake (Kesuma et al. 2018). discrepancies between districts are large. Demand for teachers, as compiled by MoEC, The regional differences in the distribution of was not communicated regularly to the former teachers by education level are very sharp: richer Ministry of Research Technology and Higher Edu- districts, especially those in Java and Bali, have cation (MoRTHE) and to the higher education insti- access to more educated teachers. The share of tutions that are the main suppliers of professional teachers with a senior secondary or below educa- teachers. Better teacher demand data could im- tion is under 20 percent in all districts in Java, but prove student intake planning. But the lack of valid in some districts in Papua or Sulawesi, it reaches and reliable higher education data, relating specif- 60  percent. Making the distribution of teachers ically to the need for new graduate teachers, is a more equitable by ensuring that poor and remote significant contributing factor in the current lack of schools have an equal share of qualified and ex- matching teacher demand and supply. If such data perienced teachers might raise overall levels of were available and accessible to LPTKs, student in- learning and narrow learning disparities (box 4.3) take planning could be improved substantially. (Cerdan-­ Infantes et al. 2013). The lack of data calls for establishing a struc- Supplying adequate numbers of high-quali- tured mechanism at the central level, such as a ty teachers to the underdeveloped, border, and joint team involving representatives from MoEC, underdeveloped regions (3T) of Indonesia and to KemenPAN-RB, BKN, the Ministry of Home Affairs vocational senior secondary schools (SMKs) is a (MoHA), and the Ministry of Finance (MoF). That continuing challenge. Although the government team would ensure better coordination of efforts has implemented programs such as the Bachelor’s and foster regular and timely communications to of Education in Border, Remote, and Underdevel- comprehensively address issues related to public oped Regions (SM3T) and the Frontline Teachers sector demand for teachers and their allocation, program (GGD), some teachers simply do not want recruitment, deployment, and distribution in Indo- to be deployed to remote areas. In addition, 3T nesia (Kesuma et al. 2018). who received an allowance to teach in remote areas tended BOX 4.3 Teachers to have lower absence rates Some interventions have had a measure of (OECD and ADB 2015). Another recent study success in tackling the uneven distribution of (World Bank 2019) found similar results, where well-qualified teachers. The government intro- teachers who received remote area allowanc- duced a remote area allowance in 2007 to en- es had lower absenteeism rates (20.2 percent) courage teachers to teach in more rural areas. compared with nonrecipients (26.6  percent). In 2012, some 53,000 teachers received this But the evidence is mixed, with a 2010 SMERU allowance, a small number relative to the scale teacher absenteeism study finding that teach- of the challenge. Some evidence from a study ers who received a remote area allowance had in Papua in 2011 suggests that teachers receiv- higher absenteeism rates compared to other ing the allowance were more motivated and teachers in the same school (Toyamah et  al. had lower absence rates than other teachers 2010). 70  •  The Promise of Education in Indonesia Training schools (LPTKs) are not currently re- range of needs of different Indonesian contexts, quired to apply quotas to the number of students particularly rural and remote communities. Good they admit, so the number of teaching graduates multigrade practices were developed in a variety of produced by LPTKs is arbitrary and not responsive donor-supported programs, but few still exist be- to changes in demand for new teachers. cause of MoEC’s lack of interest and because many Examples of good practices in assessing the de- rural and remote schools have adequate numbers mand for teachers have been identified in Sema- of teachers due to deployment policies and local rang city, Gorontalo district, and East Jakarta contracts. But more widely sharing the good prac- municipality, among others. One common good tices past multigrade teaching could more widely practice is raising awareness among all relevant provide an incentive to moving away from whole- stakeholders, all the way from the executive to the class teaching and rote learning.89 legislative level, about the teacher redistribution By definition, the multigrade approach empha- process. A second is collecting data on the de- sizes child-centered, interactive learning. Collab- mand for teachers from all public schools. And a orative learning and teaching across grades and third is conducting in-depth verification of the col- levels should be possible for highly skilled and lected data. For teacher selection for employment, motivated professional teachers. Changing the these districts used local government budget re- culture of the school and taking account of local sources to contract non-civil service teachers, re- circumstances will be a key role for head teachers quiring them have the same level of qualification (OECD and ADB 2015). and competencies. Continually developing teachers’ skills Efficiency opportunities in the retirement In-service teachers need better content knowl- wave and multigrade teaching edge, well-structured lessons, effective classroom The average age of teachers is increasing. The management, and a commitment to higher-or- largest cohort of teachers are between 35 and der problem solving. This can be achieved though 50 years old and, starting in 2018, 55 percent of more effective professional development for cur- all civil service teachers will retire over the next 10 rent teachers to master pedagogical and subject years­ —­ about 960,000 individuals (World Bank matter competencies (box 4.4). Teachers also need 2018c). This wave of retirements presents a unique to adopt inquiry and problem-solving methods so opportunity to address teacher supply and distri- that students have 21st-century-based learning bution issues by setting new pupil–teacher ratios outcomes. and by not replacing teachers who retire from al- To continually develop teachers’ competencies ready overstaffed schools, while giving priority to requires that teachers can build on their formal filling positions in schools with high pupil–teacher education throughout their careers. They need ratios. regular feedback and assessment­ —­ and high-per- The current nine-teacher minimum staffing forming teachers should work to improve the skills norm is not efficient or realistic for small primary of others. In Indonesia’s decentralized system, schools, particularly in remote areas.88 Eliminat- local governments have to help develop teach- ing this staffing norm in small primary schools er competencies. High-quality local educational would require teachers to learn how to teach stu- leadership and supervision need to be developed, dents with diverse learning needs across multi- and local governments and communities should ple grades. Multigrade teaching will be essential be involved in improving teacher quality. Teach- to providing choice for pupils and to meeting the —­ er working groups (clusters)­ viable avenues for BOX 4.4 Indonesian government definitions of competencies According to MoEC Ministerial Regulation No. • Social competence­ —­good verbal and writ- 16/2007, teachers are required to have four ten communication skills; use of communica- competencies: tion technology; good relationships with stu- • Pedagogic competence­ —­to plan, deliver, fa- dent, parents, colleagues; good social skills; cilitate and evaluate learning. collaborative. • Personal competence­ —­ wise, charismatic, sta- • Professional competence­—­content knowl- ble, mature, objective, with a good personality. edge and mastery in the subject they teach. Preparing and supporting teachers  •  71 teacher professional development­ —s­ hould be ex- —­ religious, cultural)­ and therefore the context from panded, formalized, and adequately funded. An- which their students come­ —­ and also the particu- other important function of clusters is to lower the lar environment of the school (history, vision, mis- gap between the best and worst schools. Qualified sion, and so on). core teachers need to be available to share their Similarly, the probation processes mandated knowledge, and school principals and supervisors in Indonesia for new PNS should be seriously fol- should support working groups. Teachers need lowed. New teachers should not automatically more time for professional development, and rural “pass” their probational period if they have not teachers should have the same opportunities to demonstrated the competencies needed to be a participate in professional development. teacher for the rest of their professional lives. Ex- Developing human capital through the contin- perienced principals and supervisors could assess ual improvement of teachers’ skills and knowledge new teachers using standardized criteria and in- is an important building block of world-class ed- struments to identify strengths and areas for im- ucation systems (Barber and Mourshed 2009). Ef- provement. Providing guidance to low-performing fective performance appraisal systems do not just teachers, extending their probation period if they judge teacher performance, they also link explicitly have not shown improvement, and even terminat- to ongoing professional development opportuni- ing them if they do not meet expectations should ties that increase teacher knowledge and capabil- be options taken seriously in MoEC and MoRA. ity and help improve student outcomes. The bot- tom line is that students are entitled to be taught Working groups and peer learning by competent teachers who keep themselves up to Teacher working groups are the most viable ave- date with developments in their profession (Lowrie nues for teachers to receive continuous profes- and Patahuddin 2018). sional development­ —­Kelompok Kerja Guru (KKG) at primary level, subject teacher working groups How teachers develop competencies in Musyawarah Guru Mata Pelajaran (MGMP) at sec- Indonesia ondary level, and principal working groups (KKKS). One issue is that teacher training has not been All should be at the forefront of in-service teacher clearly mandated as a responsibility of either cen- training programs to improve teacher competen- tral or local government. Without a clear mandate, cies. International research and experience consis- district financing of teacher training remains un- tently show that teachers learn best in communities coordinated and dependent on local government of practice (Wenger 1998). Continuing profession- priorities. Teachers can develop competencies al development is an essential ingredient of any through a number of channels: successful and improving education system, and • Induction as a new teacher, as well as proba- this is best undertaken in school or teacher work- tion, mentoring, and systematic professional ing groups­ —­ for primary teachers, this is usually in assessment. school clusters (Fullan 1992, 2010, 2015). • Continuing professional development: Func- In Indonesia, these groups need additional sup- tional training and collective activity (for ex- port. In some districts, the working groups are very ample, teacher working groups/peer learning), active, while in others they are defunct or meet in- academic publications, and the development of frequently. The Indonesian system of school clus- innovative practices. ters (gugus) and teacher working groups is well • Feedback and supervision by supervisors and established but is often not used to best effect as school principals. a vehicle for teachers’ professional development • Support structures for teachers, including pro- (Ragatz and Kesuma). This is partly due to the lack vincial and district education offices (Dinas, the of useful materials, tight teacher schedules, and Education Quality Assurance Agency (LPMP)), the costs to transport to group meetings, especial- and school committees and councils. ly for teachers living in remote areas. In 2017, the • Continuing formal education. Ministry of Education and Culture issued guide- lines for the development of the teacher working New teacher induction and probation groups, stressing their role in supporting profes- Teachers new to a school and community should sional development and the urgent need for them be properly introduced (inducted) into their new to realize this role. environments. An important first step in teach- Working groups need additional learning ma- er professional development is ensuring that new terials to cover pedagogical practices. Learning teachers understand well the community con- workshops should be better geared to the needs of text in which they are teaching (economic, social, teachers. Teachers need to fit meetings into their 72  •  The Promise of Education in Indonesia schedules and have time to do this. And mem- are working well, teachers can share their teaching bers should have access to the internet to enable challenges through KKG and MGMP meetings and professional development to continue outside the receive input from their peers on how other teach- confines of the working group meetings. Financing ers address similar challenges. These working differs across districts, but groups need to have groups can also improve teachers’ content knowl- stable and adequate funding. Project-based and edge, especially for teachers who lack specialized government-funded MGMPs have more structure educational backgrounds. Establishing collective and have preplanned materials, resources, and learning communities in schools and networks meetings. The support and involvement of school across schools is thought by many researchers to principals are key to working group success. And be the best way to operationalize peer-to-peer school supervisors need to be involved since they learning (Lieberman and Pointer Mace 2008, Pa- can advise members and coach and help estab- cific Policy Research Centre 2010, McLaughlin and lish collective learning communities in schools and Talbert 2010, Lieberman and Miller 2011). across school networks. Using WhatsApp or Face- book groups is an effective means of connecting Continuing professional development cluster members and for connecting different clus- The government is putting more emphasis on ters for specific grades or subjects. continuing professional development, using es- Peer-to-peer learning helps teachers improve tablished better practices as a means to improve and can enhance student learning (Schleicher teaching quality and urgently help meet higher 2012, Lieberman and Miller 2011, McLaughlin and teacher competency standards. The Open Univer- Talbert 2010). In Shanghai, China­ —­ where students sity (Universitas Terbuka, or UT) provides a path- routinely perform well on international tests­ —­ way for teachers who need to upgrade their train- teachers participate in teaching-research groups ing. It has an extensive network and good working for mentoring and evaluation by peers during relationships with provincial universities. It also has classroom observations (Liang, Kidwai, and Zhang a smart teachers’ portal that contains a wide range 2016). In areas in Indonesia where these systems of materials for teachers, including education laws, Preparing and supporting teachers  •  73 teaching workshops, video case studies, and new Indonesia now needs to address the weaker ideas to discuss and try. elements of the appraisal system by appointing principals and supervisors on merit rather than by The role of principals and supervisors mere length of tenure or experience or for other, Principals in Indonesia need support to develop more personal reasons­ —­and by providing training the skills that will enable them to play their man- to enable them to evaluate and support teachers dated roles in managing teacher induction, proba- through feedback that helps them improve teach- tion, performance assessments, and appraisals; in ing. In the longer term, Indonesia should consider mentoring, promoting, and sanctioning teachers; expanding the appraisal framework to develop a in disseminating information about teacher perfor- merit-based system of progression and promotion mance to the local community and local govern- for teachers, since international evidence indicates ment; and in being accountable for overall school that this will further strengthen the quality of the performance, as well as in demonstrating good teaching that learners experience. practices themselves. While the principal is at the center of the de- Similarly, school supervisors need support to volved system of school-based management in In- develop the competencies required of them by donesia,91 their current skills do not enable them Ministerial Regulation No. 12/2007. This regulation to manage their leadership role well. In high-per- defined the competencies required of school su- forming systems, principals are instructional lead- pervisors in six dimensions: personal competence, ers who take a positive stance in improving the managerial supervision, academic supervision, quality of teaching and learning at their schools, education evaluation, research and development, as reflected in improved student outcomes. Many and social. A review by the Australia–Indonesia principals in Indonesia do not have adequate Basic Education Project (2007) found a large num- training or knowledge of school management and ber of deficiencies in the knowledge and skills of leadership and so are unable to lead their teach- school supervisors. The review team formed the ers in ways that will achieve better student out- view that these deficiencies still exist and affect su- comes. This deficiency was recognized by MoEC, pervisors’ ability to undertake their tasks.90 and a regulation was issued in 2018 that explicitly 74  •  The Promise of Education in Indonesia recognizes the instructional leadership role of the areas and showing large variations. Through unan- principal for teachers in the school (MoEC Regu- nounced visits to schools by survey teams, a 2003 lation No. 15/2018). Both support to principals cross-country study found that almost one in five as well as enforcement of the regulation through teachers in Indonesia was absent from the class- monitoring and supervision will be important for it room (Chaudhury et al 2006). In 2008 the SMERU to be effective. Research Institute followed the same methodology Principals in Indonesia are often selected on and noted an overall reduction in the teacher ab- the basis of an examination, or they are nominated senteeism rate from 19.6 to 14.1 percent. The same by a district education office rather than selected study found that the overall reduction in teacher through a formal merit-based process. Most seem absenteeism was due to the combined influence of to receive little training. Some principals have been improved management by districts, greater expe- able to attend a Principal Preparation Program rience in decentralized education service delivery, (PPP) managed and implemented through the In- and better incentives for teachers. In particular, the stitute for the Development and Empowerment study associated lowered absenteeism with more of School Principals, based in Solo, Central Java. regular supervision of schools, higher salaries, and Senior teachers nominated by their districts as po- teachers’ overall sense of improved welfare. How- tential future principals are prequalified for this po- ever, the teacher absence rate remains very high sition and are then meant to enter a queue for fu- in remote areas (23 percent). Following the same ture vacancies in their districts. But some districts method, a 2014 study also found that absenteeism continue to appoint principals for other reasons. decreased to 9.4 percent (ACDP 2014). Absentee- For many principals, professional development ism has also been examined extensively in Papua. consists only of briefings on policy documents is- One study in the Papua highlands found an absen- sued by the district office, or short management teeism rate of 50 percent (UNICEF 2012), while an- courses. Principals’ working groups (KKKs) are other study on Papuan schools found 33.5 percent meant to support principals but also need the in- teacher absenteeism, reaching 43  percent in re- creased financial and bureaucratic support sug- mote schools (Surhati 2013). The average absence gested above for the teacher working groups. among a sample of absent teachers in Papua was It is not surprising, then, that many principals 70 days and some absences were even a year in do not actively support staff development. This duration (Surhati 2013). is a concern because the most powerful activities In addition to impacting student absentee- they can engage in are promoting, encouraging, ism, teacher absenteeism also impacted student and motivating their staff to participate in teach- learning outcomes (Suryadarma 2004; Suryadar- er learning and development­ —­and providing in- ma et al. 2004; Suryahadi and Sambodho 2013). structional support to their teachers as needed The negative effects of teacher absenteeism are (Robinson 2007). compounded because teachers are not regularly Given the importance of school-based manage- trained in using multigrade teaching techniques­ ment in the context of decentralization, principals —­ they cannot successfully take over classes when also have many other management and leadership another teacher is absent. Teacher absenteeism, roles. This includes leading the important process- when combined with student absenteeism, leads es of school self-assessment, improvement plan- to learning that is random and discontinuous. In ning, and budgeting for and use of BOS and other many regions of Indonesia, student absenteeism funds. It also includes collaborating with the com- rates were significantly lower in schools where munity as a whole and specifically with the school the teacher absence rate was zero than in schools committee to gain support for the school. where the teacher absence rate was above 20 per- cent (Toyamah et al. 2010). Addressing absenteeism Teacher absenteeism and the practice of teachers Incentivizing and motivating teachers having several jobs mean that unit costs are often much higher than they need to be. Teacher absen- Salaries can be set to attract and retain qualified teeism appears to be most damaging to children teachers from poorer rural areas­ —­those for whom it could To attract good students to teaching and to keep be reasonably argued that the need for stable and good teachers in the classroom, teachers can re- high-quality teaching is of greatest importance. ceive incentives that motivate them to stay up to Multiple studies on teacher absenteeism have date and ensure student learning. Indonesia now been conducted in Indonesia, with the trend of has attractive salaries but could focus more on general improvement but remaining high in rural providing progressive salary and benefit schemes, Preparing and supporting teachers  •  75 to attract and retain qualified teachers and to sig- student learning outcomes. MoEC plans to expand nal that teachers are supported. KIAT Guru to all remote schools in Indonesia start- Incentives can be based on performance, and ing in 2021. MoEC and MoF should include positive teachers can be held accountable for that perfor- lessons from this pilot into the payment of the TPG mance. Nonfinancial incentives, such as career for all teachers nationwide (World Bank 2018a). opportunities, can attract talented individuals into teaching and provide reasons for talented teach- Non-PNS teacher salaries ers to stay. These incentives should aim to keep the In general, the salary for non-PNS teachers is best teachers in the classroom, not in management. based on the unit cost of the teaching fee per hour. The government pays professional allowances Their salary per month is expected to be equal to to 1.6 million teachers, and the total funding for the the amount of Upah Minimum Pemerintah (UMP) TPG was Rp 58.5 trillion for 2018, or about 13 per- or the government minimum wage, which is about cent of the total education budget. About half a Rp 2,500,000 (US$167) a month. However, this sal- million teachers are eligible for certification, and, ary system usually applies only for the non-PNS if they were to be certified, this would require an teachers who are assigned by the local government increase in TPG expenditures of 50 percent. using the local government funds. Teachers hired A key criterion to maintain the professional al- on school contracts may get considerably less. lowance (TPG) is that teachers have to teach 24 A non-PNS teacher teaching about eight hours a teaching hours (which translates into 18 actual week will receive only about Rp 320,000 (US$21) a hours in the classroom, or about 3 hours a day) month (World Bank 2019). The KIAT Guru Baseline with a total workload of 40 hours a week. In part Survey found that average salary of school-con- because teachers­ —­ particularly in smaller schools­ tracted teachers was at US$40 per month, com- —­ struggle to attain 24 teaching hours a week, pared with PNS teachers at US$600 per month. especially at the secondary level and particularly Schools are allowed to pay non-PNS teachers in rural areas, they are forced to teach at multiple using BOS funds, with guidelines regulating the schools and/or teach outside of their credentialed percentage of funds that can be used for this pur- area in order to fulfill the hourly requirement. Be- pose. In February 2020, MoEC announced that cause of this constraint, activities such as library up to 50 percent of BOS can now be used to pay management and adult education classes can also school-contracted teachers. now be counted toward teaching hours, which en- The recruitment of teachers at school level re- ables teachers to retain their certification. lied on a 15  percent allocation provided by the Teacher certification was intended to improve School Operational Assistance Grant (Bantuan teacher qualifications (and ultimately their perfor- Operasional Sekolah­ —­ BOS). Recently this was mance and student achievement), with the parallel changed to 50 percent of BOS (MoEC Regulation objective of improving teacher salaries. But the in- No. 8/2020). Schools with limited resources may centives implicit in these two objectives were not need to rely solely on BOS for recruiting tempo- always well used. Pressured by MoF to fully use rary teachers. Furthermore, the quality of tempo- mandated funds, MoEC itself pressure politicians, rary teachers recruited may not meet the quality teacher associations, and teachers to accelerate standards set for civil service teachers, which may and modify the certification process. This delayed ultimately be reducing the quality of teaching the reform process and, particularly in the first few and learning, based on analysis conducted by the years, lowered certification requirements (Chang World Bank. et al. 2014). Teachers in secondary schools are often ex- An evaluation of the certification program in pected to teach only the subject for which they 2012 found that student scores had not increased, are certified, and this makes it nearly impossible but teacher welfare had, with teachers quitting for teachers in small schools to teach full time. their second jobs (de Ree et al. 2017). In 2012 and This could be addressed through options includ- in 2018, the certification procedure was revised, ing revising regulations that limit the teaching of but the impact of this new mechanism on student a subject other than that of the teacher’s degree, learning has not been assessed. adjusting preservice courses so that students be- Teachers need to be motivated to perform. come qualified in a major and a minor subject, There are ongoing efforts to improve teacher per- and providing in-service courses and incentives to formance through social accountability and linking encourage teachers already in service to add an teacher pay to teacher evaluation, such as the one additional subject to their repertoire. Longer-term promoted by the KIAT Guru pilot (box 4.5). The im- certification processes could be revised to require pact evaluation shows significant improvement in graduation in two subjects. Past policies of giving 76  •  The Promise of Education in Indonesia BOX 4.5 Kiat Guru pilot program KIAT Guru is a pilot program that aims to community members, who also evaluate service improve teacher presence, service performance, delivery performance on a scorecard. and student learning outcomes in remote primary schools KIAT Guru results were statistically and KIAT Guru (Teacher Performance and Account- significantly better than control schools ability/Kinerja dan Akuntabilitas Guru ) pilot In 2016, one year after the pilot was launched, is a collaboration of MoEC, TNP2K (National student learning was assessed. Language learn- Team for Acceleration of Poverty Reduction), ing outcomes improved from 37.5  percent to five disadvantaged districts, and the World 50  percent, and math outcomes from 37.4  per- Bank. Absenteeism in remote schools (19 per- cent to 48.8 percent. Teacher presence in school cent) is twice the national rate (9  percent), improved from 78  percent to 83  percent, and with negative consequences for student pres- classrooms with teachers increased from 81 per- ence, retention, and learning outcomes (ACDP cent to 87 percent. KIAT Guru results were statisti- 2014; UNICEF 2012, Usman et al. 2004). A key cally and significantly better than control schools feature of KIAT Guru is that it empowers com- (at 0.19 standard deviation in mathematics and munities, including parents, to hold teachers 0.17 standard deviation in language) (Gaduh accountable and ties the payment of teach- et al. 2020). Starting in 2019, the Government of er remote area allowance (Tunjangan Khusus Indonesia expanded KIAT Guru and adapted the Guru) to teacher presence. A community-led mechanism to urban secondary schools. KIAT student learning diagnostic test provided in- Guru provides evidence-based policy for the formation on basic literacy and numeracy out- government to introduce effective conditions for comes to compare with the national curriculum the US$6  billion of annual spending on teacher target. This information is publicly shared and allowances, including the Teacher Certification becomes the basis for community members to Allowance (Tunjangan Profesi Guru). An addi- develop a joint agreement with teachers to im- tional survey conducted in 100 schools indicated prove the learning environment in school and that compared to seniority-based pay, almost all at home. Teacher presence is recorded using surveyed teachers preferred performance-based an Android-based application and verified by pay (Perez-Alvarez, et al. 2020). grants to each individual school, regardless of the A study on civil servants (Sacks and Pierskalla number of students, encouraged the formation of 2018) indicates that males are more likely to be small schools in urban as well as rural areas. Al- promoted to higher-ranked positions than fe- though there are disadvantages in doing so (see males. There are several drivers contributing to the chapter 3), there are now significant opportunities low number of females in leadership and manage- to merge schools and achieve increased econo- ment positions in the education sector, including mies of scale in staffing and operational funding, the availability of equal opportunities for training, particularly in urban areas. Additional funding the multiple demands on women’s time, and views is also now being provided to good performing held by women and men of women’s leadership schools and those in remote and isolated areas capabilities. To bring greater awareness of the (OECD and ADB 2015). lack of women in leadership positions, reports on the number of promotions and positions awarded Gender differences, particularly in leadership should be publicized more broadly at district and positions provincial levels, as well as the percentages of fe- There are striking gender differences in the edu- males and males in civil servant positions. Direct cation workforce. There are about 40,000 more measures to address this imbalance should include female teachers than male teachers at the prima- mandating targets for school director, Pengawas, ry level, while there are about equal numbers of Dinas, and ministry positions. Indirect measures female and male teachers at the junior secondary can also be pursued, such as including information and senior secondary levels.92 In terms of school during preservice training about requirements for principals, there are only 8,900 female principals, hiring for leadership positions and the fact that or 32 percent of total principals in East Java. these positions are open to women. As part of a Preparing and supporting teachers  •  77 long-term approach, stories about successful fe- to control the number and quality of such male and disabled leaders could be incorporated institutions­—­such as the number of lecturers into the school curriculum to help foster a more with the required higher degrees and the avail- inclusive culture (Afkar, Yarrow, Surbakti, and Coo- ability of the infrastructure and resources, such per 2020). as schools for practice teaching. • Funding and technical support could be provid- Recommendation 6a: Improve the ed to BAN–PT to ensure that it has the capaci- quality of preservice institutions and ty and authority for a meaningful accreditation the candidates that enter them process. The civil servant teacher salary and certification • Grants/financing could be provided to incen- payment attracts people to enter teacher educa- tivize LPTKs to meet the strengthened accred- tion institutions, and the high demand for this ed- itation system. For example, grants could be ucation has encouraged the opening of additional provided to the 15 best LPTKs in each tier to private (and often low-quality) teacher education help meet the quality standards to move up institutions. Preservice teacher education can be to the next tier (A, B, or C). This would involve improved with an updated curriculum, blended ap- looking at the accreditation report and assess- proaches to offline, online, and distance teaching ing areas they would like to focus on improving. and learning, and more in-school and better super- The grants would be provided to help LPTKs im- vised teaching practice, beginning in the first year prove in these areas to meet the strengthened of the candidates’ education. This can be linked to accreditation system. more robust engagement by the accreditation body • Although politically challenging, LPTKs that are of teacher training institutes, as well as publication not meeting and are not on track to meet ac- of the rate of acceptance of graduates of individual creditation standards in the near future could institutions to civil service teaching positions. be closed. (Note that a different threshold could • Improve preservice institutions through better be applied in the eastern region.) licensing and accreditation. For improving the quality of candidates: • Strengthen preservice institutions through • To improve teacher preparation, MoEC and targeted technical and financial support­ —­ MoRA can jointly raise standards for enrollment especially those in eastern areas—to stimulate in LPTKs. MoEC and MoRA could set compe- improvements in quality and increases in ac- tency standards of new teacher candidates. creditation ratings. The Directorate General of Higher Education • Increase selectivity of LPTKs and enroll fewer, (DGHE) MoEC and Directorate General (DG) Is- higher-quality candidates. lamic Education MoRA could incorporate these standards into the selection and entry process. What can be changed or improved? • In order to ensure the appropriate number of • The accreditation process for LPTKs could be entrants, the DGHE and DG Islamic Education strengthened and linked to the licensing pro- MoRA could identify qualified LPTKs and deter- cess (including reducing the time lag between mine guided quotas for each of them. licensing and accreditation). • The accrediting institution, BAN–PT, could also Recommendation 6b: Recruit the best be strengthened to ensure that it has the capac- teacher candidates and distribute ity and authority for meaningful accreditation them effectively processing. The caliber of teaching, including through better hir- • LPTKs require support to improve their quality ing. Indonesia should ensure that it has enough high- to meet accreditation standards, particularly in ly qualified teachers in the right locations, particular- the eastern region since it is lagging behind. ly in rural, remote, and low-performing schools. • In addition to improving the institutions, it is also important to ensure the appropriate num- What can be changed or improved? ber and quality of teacher candidates entering the institutions. Indonesia can afford to hire only the most qualified candidates What are the options to implement this change? Indonesia can insist on hiring only the most quali- For improving the quality of preservice institutions: fied candidates to become teachers. It can educate • Policies and regulations for the operation- and pay them well, deploy them efficiently and eq- al licensing and establishment of new LPTKs uitably across the country, and provide incentives could be revised with greater quality thresholds and support for continuous improvement. There 78  •  The Promise of Education in Indonesia can be continual development of teachers’ skills Masood, and Afkar forthcoming, Ragatz et  al. through more effective professional development, 2015, Al-Samarrai et  al. 2013). Hiring only highly including lower-cost online options if proved effec- qualified teacher candidates with strong knowl- tive. Given the need to reach more than 4 million edge of the subjects they will teach, whether as teachers, new strategies have to be tested and civil services (PNS) or as contract and honorarium scaled up in order to keep the best teachers in the teachers, is central to improving student learn- classroom. Robust teacher evaluation systems can ing (de Ree 2016). In addition, teacher pay within implemented and linked to incentives based on schools can be made more equitable­ —­more de- performance. Preparing teachers better requires pendent on performance and less on the hiring targeted reforms, coordinated efforts, and clear mechanism. Honorarium teachers’ salaries are and consistent implementation of regulations far below minimum wage at less than a fifth of a across independent training and decentralized ad- certified civil service teacher’s income (Yarrow, ministrative systems­ —­ a major challenge. Masood, Rythia, and Afkar forthcoming). This gap Indonesia can ensure that it has the right num- in pay should thus be narrowed. ber of highly qualified teachers in the right loca- tions, particularly in low-performing, remote, and Resist political pressures in hiring rural schools, and that teachers are performing at Numbers of non-civil service teachers have grown their best. With 55 percent of civil service teach- in recent years, with uneven quality control. The ers retiring over 10 years starting in 2018 (about large pipeline of retirements presents an oppor- 960,000 individuals) (World Bank 2018c), there tunity to begin addressing the imbalance in qual- are major opportunities and risks to reshaping the ity. While some existing highly qualified contract teacher workforce for the next generation. Here teachers can be hired into newly opened civil serv- are five ways to accomplish this: ice positions, no candidates who lack qualifications should be selected despite political and other non- Attract and hire the best candidates and pay professional reasons for doing so. them more equitably No one should be teaching who is not qualified­ Many teachers lack the basic subject knowledge —­ whether it is schools hiring honor teachers, to effectively support student learning (Yarrow, districts and provinces hiring contract teachers, Preparing and supporting teachers  •  79 or PNS teachers hired centrally. All new teachers Experiment with ways to increase accountability must have some minimum subject knowledge and through incentives meet standards for the profession. Certified civil service teachers who are absent two days out of five receive the same payment as those What are the options to implement this change? who work all five days and come early and stay late to • MoEC and MoRA can help attract the best help struggling students. Teachers generally do not teacher candidates by enhancing the visibility receive incentives based on performance. Indonesia and increasing the status and reputation of ac- has piloted the use of incentives (the KIAT Guru pilot credited LPTKs. This can be done, for example, in rural areas as well as the Daerah Khusus Ibuko- through the more rigorous selection of entering ta Jakarta program), and these can be adapted and students and actively advertising among senior tested more widely to try to improve both equity and secondary graduates that teaching is a worth- performance. Some existing teacher allowances can while and profitable career. be made conditional, tied to objective and observ- • MoEC, MoRA, and MoHA can set minimum able indicators such as attendance and professional standards for hiring teachers across contract development to improve teaching competence. types by working closely with provinces and dis- tricts. Subject knowledge of the subject(s) to be What are the options to implement this taught can be one of the main requirements for change? teachers hired into new and vacant PNS posts. • MoEC and MoRA can build on current reforms, improving professional development by enforc- Recommendation 7: Improve ing procedures around induction, probation, professional development and and teacher assessment; ensuring greater coor- calibrate incentives dination at the local level among LPTKs, district governments and other actors working with Ensure continuous professional development teachers; and strengthening teacher, principal, Teacher competencies can be continually im- and supervisor working groups and coaching proved through high-quality teacher profession- to support their efforts to increase the quality al development linked to career progression and of teaching and decrease disparities in learning promotion. This can begin by serious processes achievement among schools. of induction and probation and continue through • MoHA, MoEC, and MoRA can work together to systematic and regular assessment processes. further test, adapt, and then implement existing Special focus should be on the design and use of teacher incentive programs more broadly. student learning assessments to improve teaching • MoRA and MoEC, working at the national and and student learning. subnational level, can address gender disparities, Professional development is often sporadic due particularly for principals, by encouraging and to the variation in funding of activities by districts, providing more opportunities for female teachers minimal evidence of impact, and the fact that to become civil servants and principals, and by teachers in remote schools tend to have fewer op- creating mentorship and leadership programs. portunities. 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Jakarta: World Bank. https:// Practices in TIMSS Eighth Grade Mathematics Class- openknowledge.worldbank.org/handle/10986/29921. rooms: Understanding What Teaching Practices Are ———. 2018c. World Development Report 2018: Learn- Used, Why They Are Used and How They Relate to Stu- ing to Realize Education’s Promise. Washington, DC: dent Learning (English). Washington, DC: World Bank. World Bank. https://www.worldbank.org/en/publication/ Robinson, V. 2007. “School Leadership and Student Out- wdr2018. comes: Identifying What Works and Why?” ACEL Wil- ———. 2019. Primary Education in Remote Indonesia: liam Walker Oration, Australian Council for Education- Survey Results from West Kalimantan and East Nusa al Leaders (ACEL), Sydney, Australia. Tenggara. Washington, DC: World Bank. https://doc� - Sacks, A., and J.H. Pierskalla. 2018. Mapping Indonesia’s uments.worldbank.org/en/publication/documents Civil Service (English). World Bank. 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Assessment of Pol- Government laws and regulations icies to Improve Teacher Quality and Reduce Teacher Law No. 14/2005 on Teachers and Lecturers. https://jdih. Absenteeism. SMERU Working Paper, Jakarta: SMERU kemenkeu.go.id/fulltext/2005/14TAHUN2005UU.htm. Research Institute. http://www.smeru.or.id/sites/de- MoEC Regulation No. 12/2007 on Standard of School/ fault/files/publication/improveteacherquality.pdf. Madrasah Supervisors. http://simpuh.kemenag.go.id/ Suryadarma, D., A. Suryahadi, S. Sumarto, and F. Halsey regulasi/permendiknas_12_07.pdf. Rogers. 2004. The Determinants of students perfor- MoEC Regulation No. 16/2007 on Standard of Teachers’ mance in Indonesian public primary schools: the role of Academic Qualifications and Competence. http:// teachers and schools. SMERU Working Paper, Jakar- vervalsp.data.kemdikbud.go.id/prosespembelajaran/file/ ta: SMERU Research Institute. http://www.smeru.or.id/ Permendiknas%20No%2016%20Tahun%202007.pdf. sites/default/files/publication/determinanteng.pdf. MoEC Regulation No. 8/2009 on Preservice Teacher Train- Toyamah, N., B. Sulaksono, M. Rosfadhila, S. Devina, S. ing Program. http://luk.staff.ugm.ac.id/atur/Permen Arif, S.A. Hutagalung, E. Pakpahan, and A. Yusrina. 08-2009.pdf. 2010. “Teacher Absenteeism and Remote Area Al- MoEC Regulation No. 20/2010 on Norms, Standards, Proce- lowance Baseline Survey.” Jakarta: SMERU Research dures, and Criteria in Education. https://luk.staff.ugm.ac. Institute. id/atur/Permendiknas20–2010NormaPendidikan.pdf. UNICEF (United Nations Children’s Fund). 2012. We Like MoEC Regulation No. 87/2013 Preservice Teacher Training Being Taught: A Study on Teacher Absenteeism in Program. https://luk.staff.ugm.ac.id/atur/Permendikbud Papua and West Papua, Technical Report. 87-2013PendidikanProfesiGuru.pdf. Usman, S., Akhmadi, and Suryadarma, D. 2004. MoEC Regulation No. 15/2018 on Fulfilment of Teacher, Prin- When Teachers are Absent: Where Do They Go cipal, and School Supervisors workloads. http://simpuh. and What Is the Impact on Students? SMERU Re- kemenag.go.id/regulasi/permendikbud_15_18.pdf. search Institute, Jakarta. http://www.smeru.or.id/en/ MoEC Regulation No. 51/2018 on New Students Admis- content/when-teachers-are-absent-where-do-they sion. https://jdih.kemdikbud.go.id/arsip/PERMENDIK� - -go-and-what-impact-students. BUD%20NOMOR%2051%20TAHUN%202018.pdf. Wenger, E. 1998. Communities of Practice: Learning, Mean- MoEC Regulation No. 8/2020 on BOS Guideline. https:// ing, and Identity. Cambridge: Cambridge University jdih.kemdikbud.go.id/arsip/Salinan%20Permendikbud Press. https://doi.org/10.1017/CBO9780511803932. %20Nomor%208%20Tahun%202020.pdf. 82  •  The Promise of Education in Indonesia Preparing and supporting teachers  •  83 SPOTLIGHT 1 How to connect all Indonesian schools in 2020? Providing connectivity to schools can contribute to improving access to and the quality of student education when used effectively. It can also help teachers access resources for training and support, even while schools are closed to stu- dents during COVID or other crises. However, there is a risk that internet and technology access will be limited to well- resourced schools in urbanized environments. Currently, just over 55 percent of Indonesian schools under MoEC have some form of internet connection, while the percentage for MoRA is slightly higher­—­59 percent. This is what it would take to connect 100 percent of schools given the widespread availability of internet access already to the internet: in place across the country. With political will and judicious • Ensure that all schools within reach of the existing fiber- use of financing mechanisms already available, it is both optic network are connected to it for affordable, high-ca- affordable and technically feasible to deliver internet con- pacity broadband internet. Close to 50  percent of all nections to all Indonesian schools. This spotlight provides schools are affordably within reach of a fiber-optic con- information on what would be required to make this vision nection, while only 1 percent are connected to it. a reality and identifies the mechanisms that can be used to • Provide mobile broadband connections to schools that achieve it. cannot connect to the fiber-optic network. An estimat- ed 45 percent of the 50 percent of schools not able to The status quo connect to the fiber-optic network could be connected According to data from DAPODIK 2019, just over 55 per- in this way. cent of Indonesian schools under the Ministry of Education • Conduct a detailed assessment of how to connect the re- and Culture (MoEC) have some form of internet connec- maining 5 percent of schools. Connecting these schools tion, with a few notable variations according to school type would require a more detailed assessment to determine (table S1.1). Meanwhile, based on data from the Ministry of the most cost-effective solutions. Many might benefit Religious Affairs (MoRA) Educational Management Infor- from ongoing mobile (broadband) deployment, while mation System (EMIS), there is a slightly higher rate of con- the rest might be required to connect via satellite. nected schools for schools under MoRA; around 59.3 per- cent schools were connected in 2018/2019 (see table S1.1). Introduction Providing connectivity to schools can potentially contrib- TABLE S1.1 Connected MoEC and MoRA schools ute significantly to improving access to and the quality of education when used effectively, while also becoming more With Without Percent School type internet internet connected important as the knowledge economy expands and diver- sifies the range of education, management, and commer- MoEC schools cial services that can be conducted online. Even with slow- Sekolah Dasar (SD) 78,863 70,198 52.90 er internet connections, it is possible to use technology to Sekolah Luar Biasa (SLB) 1,349 893 60.20 improve the efficiency and effectiveness of school admin- Sekolah Menengah Atas istration, management, and communication, while also en- (SMA) 9,404 4,508 67.60 abling schools to gain access to a diverse range of online Sekolah Menengah commercial services. As the reliability and speed of internet Kejuruan (SMK) 9,713 4,554 68.10 connections improve, so does the capacity to use technol- Sekolah Menengah ogy to provide an array of professional development, cur- Pertama (SMP) 22,342 18,126 55.20 riculum support, and online learning services to principals, Total 121,671 98,279 55.30 educators, learners, and their parents­ —­ improving access MoRA schools to quality educational resources, training school personnel Madrasah Ibtidaiyah (MI) 18,029 6,922 72.30 of all types, and enabling learners to study in more flexible Madrasah Tsanawiyah (MTs) 6,198 11,165 35.70 and independent ways with support from their teachers. Madrasah Aaliyah (MA) 5,728 2,437 70.20 In Indonesia, there is a risk that internet and technology Total 29,955 20,524 59.30 access will remain the preserve of well-resourced schools in urbanized environments, but this is not a necessary future Source: DAPODIK, MoEC (2019), and MoRA EMIS (2019). 84  •  The Promise of Education in Indonesia While this represents a good initial base of connected However, the story is slightly different for MoRA schools, schools, it is important to disaggregate these further by with Kalimantan Utara reported as having the lowest inter- connection type given the significant variances in connec- net coverage (3.1 percent) compared with other provinces tivity speeds and download limits between them (table in Indonesia within the same year (figure S1.2). S1.2). These variations are important as the utility of different The distribution of school connectivity across the coun- internet connection differs widely according to their speed try is shown in figure S1.1. DKI Jakarta Province ranked and cost. The above data, for example, suggest that there is highest, with around 73.2 percent of schools connected to a significant variance between schools that are within reach the internet. Papua Province is the least connected prov- of a fiber-optic internet connection and those that actually ince educationally, with only 21 percent of schools having have one, which seems a lost opportunity given that res- internet access. idential tariffs for fiber-optic connections are reasonably affordable (see below). TABLE S1.2 School connections by type, MoEC and MoRA Number Percentage of schools of schools Connection type Typical connectivity specifications connected connected MoEC schools Mobile broadband (Telkomsel, Flexible and low setup cost, higher average GB/month recurring cost Smartfen, Indosat, XL, etc) (around US$1.20 for each GB per month) 92,405 42.00 Fiber optic Permanent connection, higher setup cost, and lower access than mobile broadband connection. Unlimited monthly connection with speed differentiation, with average recurring cost between US$20 (10 MBps) and US$150 (200 MBps) per month. 22,371 10.20 JARDIKNAS1 An internet connection provided by MoEC through Telkom since 2006 but reduced significantly after 2015. The connection has with max speed of 32 or 64 KBps (4 KBps or 8 KBps in real terms). 232 0.10 Satellite/VSAT Internet access that reached remote areas in Indonesia. Very high setup cost, with even higher recurring monthly cost. The average cost per GB each month is US$8.80. 485 0.20 Other Other or unknown type of internet connection 6,178 2.80 Total MoEC schools 121,671 55.30 MoRA schools Telkom/Speedy Mix of Indiehome connection with average 10 MBps speed, as well as outdated copper line Speedy with average 1 MBps (0.25 MBps) average speed. 17,481 34.70 Fiber-optic Permanent connection, higher setup cost and lower access compare to mobile broadband connection. Unlimited monthly connection with speed differentiation, with average recurring cost minimum US$20 (10 MBps) and maximum US$150 (200 MBps) per month. 218 0.40 Wifi/Telkom Indieschool Wifi ID connection with average speed of 2 MBps for each user. Currently free provided by Telkom.2 5,827 11.50 Satellite/VSAT Internet access that reached remote areas in Indonesia. Very high setup cost, with even higher recurring monthly cost. The average cost per GB each month is US$8.8. 76 0.20 Other Other or unknown type of internet connection. 6,353 12.60 Total MoRA schools 29,955 59.30 Source: DAPODIK 2018, 2019. Notes 1. https://sekolah.jardiknas.kemdikbud.go.id/unduh; https://id.wikipedia.org/wiki/Jardiknas_Schoolnet. 2. https://www.antaranews.com/berita/352523/telkom-indischool-fasilitasi-wifi-100000-sekolah. How to connect all Indonesian schools in 2020?  •  85 SPOTLIGHT 1 FIGURE S1.1 Percentage of distribution of school connectivity map by province, MoEC, 2018/2019 BRUNEI PHILIPPINES L A DARUSSALAM A Y S PACIFIC OCEAN M I Celebes Sea A SINGAPORE Java Sea Banda PAPUA Sea NEW GUINEA A ra f u ra S e a Internet access (%) TIMOR-LESTE 0 74 INDIAN OCEAN IBRD 45161 | JULY 2020 AUSTRALIA Source: DAPODIK 2019. FIGURE S1.2 Percentage of distribution of school connectivity map by province, MoRA, 2018/2019 BRUNEI PHILIPPINES L A DARUSSALAM A Y S PACIFIC OCEAN M I Celebes Sea A SINGAPORE Java Sea Banda PAPUA Sea NEW GUINEA A ra f u ra S e a Internet access (%) TIMOR-LESTE 0 74 INDIAN OCEAN IBRD 45162 | JULY 2020 AUSTRALIA Source: EMIS 2019. 86  •  The Promise of Education in Indonesia FIGURE S1.3 Internet speed of schools by province, 2018/2019 BRUNEI PHILIPPINES L A DARUSSALAM A Y S PACIFIC OCEAN M I Celebes Sea A SINGAPORE Java Sea Banda PAPUA Sea NEW GUINEA A ra f u ra S e a Average internet speed (Mbps) TIMOR-LESTE 0 32 INDIAN OCEAN IBRD 45160 | JULY 2020 AUSTRALIA Source: World Bank staff, based on 2019 nPerf data. for students, they would at least provide an initial con- How do we connect all schools? nectivity solution for schools to access online services, To attain connectivity for Indonesian schools, there are two communication tools, management applications, online related considerations: professional development opportunities, and down- • How can we get 100 percent of schools connected to the loadable educational resources for use by teachers in internet? the classroom. According to the Ministry of Communi- • How can we ensure that all connected schools have the cation and Informatics, by the end of 2018, GSM report- best possible internet connection available to them? edly covered 98 percent of the population, while faster A strategy to achieve this might incorporate the follow- 3G and LTE connection reached 93 percent and near- ing key elements: ly 96  percent respectively.93 This suggests that most • Ensure that all schools within the fiber-optic network are schools not within range of the fiber-optic network could connected to it  to get affordable, high capacity broad- access the internet via LTE and/or 3G connections, es- band internet. About 30  million homes (with about pecially if outdoor antennae boost the connection. As- 70 million people) are able to connect to the fiber-op- suming that school access to mobile broadband mirrors tic network. This suggests that close to 50 percent of all general population access, this means that 45 percent of schools should be affordably within reach of a fiber-op- the 50 percent of the schools unable to connect to the fi- tic connection (though only 1 percent are currently ex- ber-optic network could be connected in this way, bring- ploiting this opportunity). According to the websites of ing the total of connected schools to 95 percent. internet service providers, an entry-level subscription • Assess how to connect the remaining 5  percent of (20 MBps) starts at US$20/month, while a 100 MBps schools. Schools that are not able to connect to the in- residential service costs US$60/month. ternet either via the fiber-optic network or mobile broad- • Provide mobile broadband connections wherever possi- band tend to be on remote islands and in other remote ble to all remaining schools t hat cannot connect to the locations, such as the interior of Papua. Connecting fiber-optic network­ —­either LTE or 3G connections, de- these schools would require a detailed assessment to pending on availability. While such connections would determine the most cost-effective solutions. Many might not enable direct internet access on any significant scale benefit from ongoing mobile (broadband) deployment How to connect all Indonesian schools in 2020?  •  87 SPOTLIGHT 1 (such as the USO Fund 5000 BTS blank spot). The re- MoRA can provide support: maining schools might be required to connect via sat- • Generate technical guidelines and instructions for local ellite, which would limit functionality given the high cur- provincial offices and educational institutions to procure rent cost of satellite capacity. Given these high costs and high quality internet connections for all learning institu- relatively poor quality of satellite connections, this might tions under MoRA. be considered a solution of last resort. With policy guidance and coordination support from MoEC, MoRA, provincial, district, and municipality education How can it be arranged? offices can establish priority programs to connect all schools MoEC can provide support for local governments: in their region. This will require the local government to: • Develop a road map and brief guidelines to connect all • Work with Communication and Informatics Offices schools in Indonesia by 2022, to be used as a guideline (Dinas Kominfo) and their schools, to develop differenti- for local governments and schools to compose their ated plans for schools in the use of technology based on connectivity plan. the availability of internet services. • Advise the Ministry of Home Affairs (MoHA) to reinforce • Cover initial investments of basic equipment (such as the importance of connecting all schools to achieve edu- modems, routers, laptops or tablets, and projectors) and cation quality targets, through issuance of circular to all initial internet packages using local government bud- local governments. gets (APBD, Anggaran Pendapatan dan Belanja Daerah) • Provide affirmation measures for off-grid schools—both or special allocation funds (DAK, Dana Alokasi Khusus) for electrification and internet access. for education. Schools will continue to use BOS (Regular, • Conduct monitoring and evaluation to ensure that pro- Kinerja, and Afirmasi) to pay the recurrent costs of inter- gram targets are met. net subscriptions. FIGURE S1.4 Possible framework agreement implementation process Suggested process of schools connectivity • MoEC and MoRA’s review of purchase through Framework Agreement telecom service mapping • Statement of Requirements from MoEC and o ers to telcom 1 operators Framework • Parallel process to take place Agreement between MoRA and telcom operators • Expression of interest from telecom operators, agreed terms and conditions between MoEC and telecom operators in the Framework Agreement • Parallel process to take place for 2 MoRA Socialization to schools through BOS mechanism 3 • Individual school need identi cation, Individual schools required service review purchase of • Individual school connectivity connectivity purchase using BOS fund 88  •  The Promise of Education in Indonesia • Provide financial and technical support to schools out- projectors as well as for internet connectivity (MoEC Regu- side the electricity grid to procure alternative sources of lation No. 31/2019 on BOS Kinerja and Afirmasi). energy. Schools can use these above funding schemes to reduce • Establish service agreements with vendors for installa- student-computer ratios and increase the exposure of stu- tion service and maintenance, particularly for schools in dents to technology, enabling them to learn more effec- remote areas. tively and acquire 21st century skills. In 2020, the utilization • Process is similar for MoRA, working with district and of BOS Kinerja is no longer specifically targeted for ICT province level MoRA offices. equipment and connectivity but following the regulation on regular BOS which have also allowed to fund multimedia Framework agreements as a procurement tool learning facilities procurement. BOS Kinerja allocation in Framework agreements are preliminary agreements 2021 was removed because one of the indicators used in entered­—i ­ etween ­ deally over longer, multiyear periods­—b its calculation, that is the national exam score, will not be a central institution and service providers that serve as an available as the national exam will no longer be implement- umbrella document for an individual school contract with ed (Financial Note 2021, Book II page 3–91). one or more selected companies. Such agreements are commonly used by governments to facilitate ICT procure- Why should we connect schools to the ment. For example, both the Netherlands and the United internet? Kingdom use framework agreements for such purposes. The internet can deliver education technology for student and Similarly, the Government of Indonesia already uses frame- teacher learning, as well as administrative applications to im- work agreements for similar purposes.94 prove education quality and efficiency. Investing in connec- Framework agreements could provide a good contract- tivity can help to address high inequality, low school capaci- ing vehicle between MoEC and telecommunications oper- ty, lack of capacity of educators, lack of access to curriculum ators/providers to facilitate procurement of connectivity at materials and learning resources, and low levels of reporting reasonable prices. They provide a means to outline the key of even basic school management and financial information. points of the required service provision, to establish quali- This is particularly important in the time of COVID–19, where ty standards with the value for money for bulk purchasing, teachers need support in providing effective remote instruc- and initiate a “mini competition” among these operators tion as well as in closing learning gaps once schools re-open. to provide a better and wider scope of services for schools Connectivity is a means to an end not an end in itself, since across Indonesian provinces. not all EdTech investments will necessarily improve student Both MoEC and individual schools will benefit from learning. Initiatives that expand access to computers and in- such agreements. MoEC will be able to leverage them to ternet alone generally do not improve kindergarten to grade increase the number of schools with access to connectivity 12 student grades and test scores though they do increase faster. Framework agreements reduce the transaction cost computer use and improve computer proficiency (Bhardwaj, and time to purchase connectivity through a centralized Yarrow, and Cali 2020). Many novel applications of technol- contract. Schools can work within the negotiated terms and ogy to education, such as interactive whiteboards or virtual conditions agreed at the beginning of the process to use reality, attract wide interest from school administrators but BOS funds to buy quality connectivity and gain direct ac- have not yet been rigorously evaluated for their efficacy. cess to better after-sales service. Current reforms being considered by MoEC include dig- Here is one suggested outline of how a framework ital wallets for schools and improved student assessment agreement could be harnessed for this purpose: and teacher training support. These will likely require im- provements in school connectivity. What schools, princi- Further expand the use of ICT to improve teaching pals, teachers, and MoEC and MoRA do with the connectiv- and learning ity to transform it into improved student learning outcomes Once connectivity is in place and ready for schools to use in is of central importance. There are currently gaps in stan- their teaching and learning plans, it then becomes possible dards for data privacy and security for education technol- to expand the use of technology further for all students. The ogy products in Indonesia­ —­ and a complete lack of impact BOS Kinerja and BOS Afirmasi programs were launched in and cost-effectiveness measurements for Indonesian Ed- 2019 to enable schools in the outermost and border areas, Tech products. These products can boost student learning, as well as those performing well, to procure ICT equipment but that depends on regulatory and support steps by gov- for teaching and learning such as PCs, laptops, tablets, and ernment and greater and more informed use in schools.95 How to connect all Indonesian schools in 2020?  •  89 SPOTLIGHT 1 Reference Government laws and regulations Bhardwaj, R., N. Yarrow, and M. Cali. 2020. EdTech in Indonesia: Financial Note 2021, Book II page 3–91. Ready for Take-off? Washington, DC: World Bank. https://open� - MoEC Regulation No. 31/2019 on BOS Kinerja and Afirmasi. https:// knowledge.worldbank.org/handle/10986/33762. siplah.kemdikbud.go.id/file/Permendikbud%20Nomor%20 31%20Tahun%202019.pdf. MoEC Regulation No. 24/2020 on BOS Kinerja and Afirmasi. 90  •  The Promise of Education in Indonesia How to connect all Indonesian schools in 2020?  •  91 CHAPTER 5 Managing the education system to deliver learning I ndonesia’s education system transformed in the majority of private schools are not truly private past two decades. Previously highly centralized, as the government pays teacher salaries through the education system now consists of multi- civil servant teachers who teach in private schools, ple different levels of authority and responsibility. contract and honorarium teachers who are paid A series of reforms has created a decentralized through local government budget and/or BOS structure comprising a complex set of laws and funds). The “private” educational system is domi- regulations; multiple actors at the central, pro- nated by religiously oriented schools that tend to vincial, district, and school levels; and devolved be community-based nonprofits that are in fact management. “non-public” rather than “private” in a commercial While the changes have put new emphasis on sense, as well as by institutions of higher educa- schooling, particularly by increasing financial re- tion. Of the registered early childhood education sources for education, decentralization has creat- and development services, 97  percent are “pri- ed some major challenges, including low capacity vate” and receive state subsidies. in certain areas as well as weak systems for track- While local governments manage the schools, ing results and accountability for quality of educa- provincial and central governments have clear- tion service delivery. ly defined roles (see table ES.1). The central gov- To improve education results, overall gover- ernment sets nationwide education standards, nance of the education sector should be enhanced, establishes the national curriculum, and adminis- including actions to expand capacity, align regu- ters learning assessments. It provides funding to lations, and close regulatory gaps. Upgrading ca- schools and local governments and retains the au- pacity and improving accountability are the high- thority to hire and fire civil service teachers. School est priority challenges. Indonesia should now put principals are selected by provincial and district a greater focus of learning outcomes by enhancing education offices. the tracking, monitoring, and evaluation of results and empowering and enabling district offices, Role of central government ministries clusters, and schools to analyze these results and At least ten ministries and central institutions are take action to improve them. Doing all this will help involved in managing the education system. Indonesia to improve learning and catch up with The Ministry of Education and Culture (MoEC) regional peers. formulates policy in the fields of early childhood education, basic education, secondary education, The system’s size and geographic tertiary education, nonformal education, and cul- spread pose particular challenges tural management. It implements the policies to Decentralization laws shifted the management improve the quality and welfare of teachers and of education to more than 500 districts adminis- other educators, as well as education staff. And it tering some 340,000 schools and other learning implements research and development programs institutions across Indonesia’s sprawling tropical in the fields of early childhood education, basic ed- archipelago. Some 42,800 are classified as 3T ucation, secondary education, tertiary education schools (Terdepan, Terluar, Tertinggal, or border, and nonformal education, and culture. The ministry outermost, and underdeveloped). The districts also develops the national curriculum for second- have varied socioeconomic and geographic con- ary education, primary education, early childhood ditions and institutional capacities that affect their education, and nonformal education, and fosters ability to implement education policy and deliver Indonesian language and literature. learning to students. Religious schools are supervised by the Ministry Shifting the responsibility in education serv- of Religious Affairs (MoRA) (see box 1.2 in chapter ice delivery to such heterogeneous districts has 1). MoRA shares responsibility with the Ministry of prompted concerns about the capacity of districts, Education and Culture for a single national edu- both big and small, to run education programs cation system, integrating state, religious, private, effectively, as well as concerns about the lack of and other schools. According to the Education Law, transparency in the use of resources, and the di- schools under their supervision follow the national version of funds to other district-level projects. curriculum and are subject to the quality assurance State educational institutions dominate the system. There are 50,478 religious schools and ma- education system, particularly at primary and ju- drasahs under MoRA, serving 8,211,836 students. nior secondary levels. However, the private sector These schools and madrasahs hire 629,185 teach- also plays a significant role, accounting for around ers and education personnel. MoRA also supplies 48  percent of all schools, 31  percent of all stu- teachers of religious subjects to non-MoRA schools. dents, and 38 percent of all teachers (though the There are 241,020 teachers of religion managed by Managing the education system to deliver learning  •  93 MoRA and present in MoEC schools (11.2  percent school decision-making was very limited. Mem- of MoRA’s budget for Islamic education is spent on bers of school committees, designed to facilitate this). parent and community involvement in education, The Ministry of Education and Culture (MoEC) rarely participated in school affairs. Commonly, as is responsible for higher education and teacher required by governmental guidelines, the commit- training institutions. tee chair was simply asked to sign off on decisions The Ministry of Home Affairs (MoHA) is involved already made­ —­ which they usually did without ask- as part of its role of supporting and supervising ing questions. local governments. Principals have considerable autonomy in a Other important central roles include: large number of school decisions. School commit- • Standards­ —­the Education Standard Agency tees are present in all schools, but the selection (Badan Standar Nasional Pendidikan, BSNP) of their members is not transparent (Al-Samarrai and the National Accreditation Agency (BAN). et al. 2014). Besides transparency concerns, a lack • Finance­ —­ the Ministry of Finance (MoF) and the of clarity about regulations for school commit- Ministry of National Development and Plan- tees has also impeded the full implementation of ning (BAPPENAS) as part of their role of budget school-based management. Despite government planning and execution. attempts to clarify their role, gaps remain in the • Hiring­—­the Ministry of Administrative and Bu- definition of the roles and functions of school com- reaucratic Reform (KemenPAN-RB) in its role of mittees, parents, and community leaders in the hiring public service teachers similar to the Civil teaching and learning process. Service Agency (Badan Kepegawaian Negara­ —­ The roles and responsibilities of school commit- BKN) and Teacher Training Institutes (Lembaga tees in planning and monitoring education service Pendidikan Tenaga Keguruan­—­LPTKs). delivery are governed by the Education Law, while the roles of local governments are governed by the Responsibilities in Indonesia’s Decentralization Law, particularly for implement- decentralized system ing the MSS for education services. As formulated by the education and decentraliza- The MSS describe the minimum quality and tion laws, education management is a joint respon- quantity of education services that should be de- sibility of schools, school committees, districts, livered by the local education authority and the provinces, and the central government. Cooper- district-level offices of MoRA, ensuring that in ation of central ministries and local governments, every school and madrasah at least the minimum needed to ensure good education outcomes, is conditions are provided for quality teaching and sometimes limited. learning. District-level education results depend on ge- Devolution required appropriate implemen- ography, culture and language, poverty levels, tation capacity by school committees and dis- parental engagement, and other socioeconomic trict-level authorities as well as clear engagement conditions, as well as on the governance and im- rules. But capacity is heterogeneous, and rules are plementation of education service delivery, includ- not clearly defined. The MSS should guide the de- ing effective planning and budgeting and low lev- cisions of education stakeholders, but MSS com- els of perceived corruption. pliance has been low, and even lower in smaller Indonesia’s reforms were designed to bring districts. school management closer to the beneficiaries, The Decentralization Law establishes that the including by increasing parental and communi- management of basic education as a responsibility ty involvement in education decision-making in of districts, under the guidance of the MSS estab- schools. However, although most schools formally lished by the central government. The standards established the institutions and processes required are a moving target­ —­ there were fourteen district for school-based management, participation in indicators and thirteen school indicators for basic school management varies significantly, limiting education (MoEC Regulation No.  23/2013), with the positive impact on teacher performance and varying levels of connection to student learning, student results (box 5.1). and as of 2018 this was reduced to three areas of The parental participation and representation MSS, each with two or three requirements (MoEC in school management and decision-making are Regulation No 32/2018). Despite the changes to- often low. According to a 2012 RAND study, most ward a simpler model, the mechanisms to monitor principals consulted with teachers, district staff, MSS compliance are weak, with many relying on and other school principals before making deci- self-reporting. Overall compliance of schools with sions, but community and parent participation in the MSS was low, although it appears to be rising 94  •  The Promise of Education in Indonesia BOX 5.1 Improving the effectiveness of school committees The capacity of school committees to prepare ef- As established by the Education Law, school fective plans to use education resources is lim- committees are important for the governance of ited, and in many cases, the school committees the education sector. Existing evidence demon- need guidance to use the BOS (Bantuan Op- strates a positive impact of parental and school erasional Sekolah) and other education funds committee participation on student learning out- to achieve the prescribed standards. Recently comes in Indonesia (Chen 2011). Most schools MoEC, following the experiences of Surabaya have the institutions and processes for school- and DKI Jakarta to improve budgeting at the based management, but the selection of their school level, has been piloting an electronic bud- members was not transparent, and their partic- get planning platform (eRKAS). The platform al- ipation in school decisions was limited. A recent lows schools to budget their school resources to study found school committees were not aware achieve the national education standards, and of the standards the school should achieve and, districts and provinces to monitor, in real time, therefore, did not plan actions to achieve them school decisions. (World Bank 2018b). Source: Paker and Raihani 2011. as the standards are reduced. The law does not earmarked or non-earmarked, with different gov- establish sanctions for failure to achieve the MSS, ernance structures: and does not generate strong incentives among service providers to prioritize their achievement. Non-earmarked transfers. The General Alloca- There are important differences among private tion Grant (Dana Alokasi Umum, DAU) is the main and public schools. In public schools, districts have non-earmarked transfer. It provides resources to relatively high participation in teacher-related pol- local governments without conditions on their use. icies and policies related to school admission and However, local governments must use the resourc- textbook selection. Private schools have much es to cover expenses such as civil servant salaries, more autonomy in developing and implementing including teacher civil servants, and to implement such policies. local policies. Several districts have low capacity for the gov- ernance of education service delivery, and im- Earmarked transfers. The Special Allocation Fund provements in governance capacity have been (Dana Alokasi Khusus, DAK) includes several ear- slow, though there are some promising capacity marked transfers. Through these transfers, local development programs (box 5.2). governments facilitate the implementation of cen- tral government programs. The main DAKs are: Multiple funding flows Indonesia’s Constitution, as amended in 2002, BOS transfers. The School Operational Assistance protects the financing of the education sector by Grant (Bantuan Operasional Sekolah) program sup- establishing a minimum threshold of 20 percent of ports schools’ operational needs. Schools use these the National Budget (Anggaran Pendapatan dan transfers based on guidelines issued by the central Belanja Negara, APBN) to be allocated to educa- government. The local governments and school tion. Similar mandates apply to local government committees are meant to be involved in approving budgets. the expenditure plans of schools, but the involve- Indonesia’s spending on education as a share ment varies significantly, with the committees often of the national budget is one of the largest in the little involved in this planning, resulting in a low level world, but the relatively small portion of GDP that of accountability of the school to the committee.97 goes into the national budget (3.1 percent in 2018) means that education spending is relatively low.96 Teacher professional allowance (TPG). Through this To implement the functions assigned through transfer, local governments pay the TPG. Teach- the Decentralization Law, local governments rely ers are entitled to the TPG if they are certified and on the transfers from the national budget as well meet certain requirements for teaching loads. as locally generated resources. The transfers re- The local governments’ involvement in the TPG is ceived by the local governments can be either mostly restricted to paying the TPG. Managing the education system to deliver learning  •  95 BOX 5.2 The World Bank’s MELAYANI Program The MELAYANI program, supported by the Aus- each selected one challenge to tackle from a list tralian Government’s Department of Foreign —­ of three­ high levels of stunting, high levels of Affairs and Trade, attempted to increase local infant mortality, and low quality of primary ed- government capacity to address service deliv- ucation. The program found that local govern- ery challenges at the district level. It did this by ments can problem solve and undertake basic helping district governments identify meaningful analysis to inform their decisions, but that they problems, break them down, analyze their parts, needed strong support to do so. However, when and develop and refine solutions. The method- they do undertake analysis on their own, in terms ology for problem-solving built on the prob- that they understand, they seem more likely to lem-driven iterative adaptation methodology act on the results and think more broadly about (PDIA), focused on building team ownership of opportunities for improvement. problems and solutions, empowering local staff For example, in Belu, the lack of any correla- to innovate and experiment, using data to under- tion between test scores and number of certified stand problems and their causes, and iterating teachers by school challenged the team’s initial to sustainable solutions. The program empha- belief that low educational performance was sized that government staff must do the work to being driven by uncertified teachers. Digging understand the problem and identify and imple- deeper into the problem, the team began to ment solutions, allowing each district to struc- recognize the importance of school-level man- ture teams and work as they wished. MELAYANI agement in student performance­ —­teachers provided tools to support the process, which was being supervised by headmasters, teachers guided by a trained coach who was supported by having access to teaching resources at various a mentor with expertise in the methodology. The levels, and better engagement with parents. program aimed at understanding both key chal- With a better understanding of the problem, lenges in building problem-solving capacity and the district officials began to look across their cultivating government ownership, as well as the programming for opportunities to improve, in- possibility for scaling up this type of support. cluding changing headmaster training, teacher MELAYANI worked in three districts­ —­ Kubu training, and programming and accountabili- Raya (West Kalimantan), Bojonegoro (East Java), ty of school monitors (district staff tasked with and Belu (East Nusa Tenggara). The districts supporting schools). Source: McLaughlin 2020 a, b, c. Transfers for infrastructure or DAK–Fisik. Unlike goes to the national education fund (LPDP), which the BOS or TPG, these transfers are based on re- received 9 percent of the total education budget quests made by the local government to address in 2020. Of the amount transferred subnationally, infrastructure needs. 53 percent was sent to districts and provinces in Funding runs through a complex set of flows the form of general allocation funds (DAU). Pro- controlled and sourced through different minis- vincial and district governments have control over tries, as discussed in chapter 2 (figure 5.1). Resourc- DAU funds. The revised budget 2020 has followed es to subnational governments include earmarked the new nomenclature and the budget for higher and non-earmarked transfers, and each district education has been moved to Ministry of Educa- and province decides the share of the non-ear- tion and Culture. In the revised 2020 budget, the marked transfers allocated to the education sec- Ministry of Education and Culture is allocated Rp tor and how they are spent on education related 70 trillion (14 percent of the total education bud- goods and services. get) to manage general education from early child- Most central budget education financing is al- hood to higher education (tertiary), while the Min- located to 514 districts and 33 provinces across istry of Research and Technology gets a reduced Indonesia. In 2020, 37  percent of the education allocation to Rp 1.8 trillion (0.3 percent) (figures 5.2 budget was allocated to central government min- and 5.3). istries (MoEC, MoRT, MoRA, and others). Most of Provincial- and district-level governments make the rest of the education budget was transferred to their own budgets with available funds, deciding regional governments (54 percent). The remainder on how much to allocate to education based on 96  •  The Promise of Education in Indonesia FIGURE 5.1 Governance structure and financial flows in the education system Flow of funds for formal pre-tertiary education Ministry of Finance Ministry of Education Ministry of Religious A airs National (MoF) and Culture (MoEC) (MoRA) DAU1 DAK 2 OTSUS 3 BOS Teacher salary and TPA 4 Provincial Province Province education MoRA Local o ce budget government revenue District District District education MoRA Local budget o ce government revenue MoEC schools MoRA schools Public Private Public Private Parents/community Teacher Teacher Teacher Teacher Funds from MoF in the form of transfer MoEC budget for education purpose (curriculum, block grant) Funds from local government budget MoRA budget for education Parents or community contribution Teacher salary and professional allowances BOS payment Source: Authors. FIGURE 5.2 Distribution of the education budget, 2010–20 Percentage of total education expenditure 100 80 60 40 20 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ministry of Education and Culture Teacher special allowance Ministry of Research, Technology, and Higher Education BOS (School Operational Assistance) Ministry of Religious A airs Special Autonomy Other ministries Regional incentive fund BA BUN (Bagian Anggaran Bendahara Umum Negara) Revenue sharing fund DAU (General Allocation Fund) BOP–PAUD DAK (Special Allocation Fund) Management fund for cooperative and Teacher professional allowance small and medium-size enterprises National Education Development Fund Source: National Budget (APBN), various years. Managing the education system to deliver learning  •  97 non–Fisik (BOP–PAUD or Bantuan Operasion- FIGURE 5.3 Distribution of the education al Penyelenggaraan Pendidikan Anak Usia Dini/ budget, 2020 Early Childhood Education Operational Grant). The BOP–PAUD program’s coverage is planned Other ministries 4% to reach about 7.4 million children in 2020 or only MoEC 22 percent of children aged 6 and below (World Other 14% education Bank 2020). MoRTHE 0.3% funds The government should strengthen ECED cover- 18% age by giving early childhood education sufficient MoRA Districts MoEC and funding within the current 20  percent envelope 10% system provinces 68% 54% and improving the governance framework. The re- cent mandating of MSS for ECED is an important step forward, but if the MSS are not enforced to ensure minimum levels of quality, children will Source: Presidential Regulation No. 72/2020 on Revised State Budget 2020. learn less than they should, risk not reaching their Note: Most preprofessional TVET is included within the MoEC system. full potential, and more likely repeat or fail in later levels of education. MoEC and MoHA should train local government on MSS for ECED and require their priorities. DAU, DAK, and other transfers are local government to fulfill them. complemented by these subnational government’s own revenues. Increasing efficiency in expenditure According to the World Bank’s Public Expen- Some important measures with the potential to diture Review (PER) for education, provinces with increase efficiency in the expenditure in the sector lower populations tend to spend more per student were implemented during 2014–19: than larger ones but are less effective in meeting required standards (World Bank 2020). Incentives. MoEC introduced performance-based In 2017, the average budgeted resources per BOS or BOS Kinerja in 2019. While the award cri- student in small provinces was Rp 8.4  million teria are complex and thus unlikely to send a clear (US$590), while per-student budgeted resources signal to schools about what to focus on, the in larger provinces was Rp 4.5  million (US$316). awards do consider changes in performance, a While some smaller provinces may have a large major positive development. proportion of rural schools with small numbers of students and thus higher per-student costs, Information. MoEC improved the reliability of its in- the difference of 87 percent is large (World Bank formation system DAPODIK. Thanks to ­ DAPODIK, 2018b). MoEC has better information on the number of Reflecting the province results, small districts students, the number of teachers, and the condi- receive larger transfers per student than large dis- tions of schools (box 5.3). Different actors in the tricts, but have lower capacity on average to ad- education sector could use this information to im- minister them, indicating a serious mismatch and prove the targeting of education expenditures. underlining the need to understand better how ed- ucation resources are channeled to districts, partic- Budgeting. Several districts and provinces are re- ularly the smaller ones. Improvements in efficiency questing that schools do their budgets using the ­ apacity devel- in using these resources will require c electronic planning platform eRKAS. The platform opment at the district level. should help schools prioritize the use of their re- The PER analysis also underlines the low spend- sources in the fulfillment of the MSS and the Na- ing in early childhood education and develop- tional Education Standards and improve the ed- ment (ECED). ECED spending is a negligible share ucation outcomes of students. This initiative, now of central government spending, despite being a being evaluated, should be expanded if results are government priority and recognized as critical for positive. the well-being of children, their future educational achievement, and other key aspects of social and Teacher pay. The World Bank supported MoEC on economic development. In 2018, funding for ECED a KIAT Guru pilot (see box 4.5) to link teacher pay accounted for only 4.5 percent of the Ministry of to improve teacher attendance and performance. Education and Culture budget (Rp 1.8  trillion). In The original pilot tested pay-for-performance 2015, to support the expansion and operation of mechanisms for teachers in rural areas to improve preschools, the government launched a new DAK teachers’ presence, performance, and student 98  •  The Promise of Education in Indonesia learning outcomes. Based on the success of this pilot, the expanded KIAT Guru Phase 2 project is —­ BOX 5.3 DAPODIK­ A platform with big now working to identify the most effective institu- potential tional arrangement for the government to scale up the most effective intervention proven in the orig- In 2014, MoEC launched DAPODIK, a web-based platform —­ inal pilot­ social accountability mechanism and that collects information on teachers, students, and school pay-for-performance mechanism based on teach- characteristics, allowing for direct monitoring of the achieve- er presence. KIAT Guru Phase 2 targets an addi- ment of some of the minimum service standards (MSS). DAPO- tional 207 primary schools in very disadvantaged DIK is accessible to schools, districts, provinces, and the cen- villages and 50 secondary schools in developed tral government. MoEC is evaluating adding variables to this villages/urban locations. information system and designing strategies to improve its ac- curacy to support the management of education. DAPODIK’s Challenges of governance, structure, potential to support improvements in education sector man- decentralization, and accountability agement is enormous, as when the platform enabled MoEC to identify smaller schools that should be merged with larger Central government data requests from provinces ones to improve efficiency. and districts do not correlate with student learning The central government focuses on multiple sets of being directed toward the MSS fulfillment in dis- indicators, sending mixed signals to provinces and trict and provincial government planning, budget- districts. One set of signals comes from MOHA’s ing, and reporting. In the Sistem Informasi Per- Minimum Service Standards (MSS), which are few encanaan Daerah (SIPD) run by MoHA, the MSS in number but regularly revised. All of the stan- tagging system enables MoHA to assess whether dards should be achieved, and while some sub- subnational governments’ planning and budget- national governments exceed them, many others ing documents­ —­such as RKPD and RPJMD­ —­have fail to meet them year after year, with little to no included MSS-fulfillment indicators or not. Among accountability for this lack of achievement (World other requirements, this will be the basis of Mo- Bank 2018a). There are no established mecha- HA’s approval for the submitted documents. MSS nisms at any level that reward the achievement of fulfillment is also used as one of the indicators for these standards or sanction failure. MoF and BAPPENAS agreeing on DAK and DID A separate, very large set of signals comes from transfers to the districts and provinces. So, MSS in the National Education Standards (NES), a subjec- used as one of the tools to assess whether addi- tive set of 595 questions for school principals, with tional fiscal transfers to a region can be made or no external verification of the reported informa- not. BAPPENAS is also planning to implement an tion.98 In total, it asks 2,055 questions of principals, MSS monitoring agenda, which will be used to fur- teachers, supervisors, students, and school com- ther revise the MSS policy. mittees, obliging schools to spend a considerable amount of time filling out and compiling all this in- Schools, districts, and provinces control most of formation each year. the inputs that determine learning While both the MSS and NES signals correlate MoEC’s authority, according to the Education Law with each other, neither closely correlates with of 2003, is focused on hiring civil servant teachers, student learning, one of the central functions establishing curricula and competency standards, of an education system. This means that the in- and administering student learning assessments. formation requested by the central government This means that basic inputs for student learning­ from schools and subnational governments, —­ such as the availability and quality of textbooks which is used for decision-making, is not neces- and other teaching and learning materials, as well sarily linked to improvements in system perfor- as in-service teacher training and monitoring and mance. Since the data are not checked by direct supporting teachers, principals, and schools­ —­fall observation, some are likely inaccurate as well. largely under the authority of districts and prov- Further, no data are publicly available on MSS inces. To improve student learning, subnational achievement, suggesting a lack of interest or spending and initiatives need to be aligned with follow-­ of-­ u p on this basic quality-­ service delivery regulations and support for learning at the cen- metric. ter. The current lack of alignment between stu- There are efforts to more effectively use MSS. In dent achievement and the MSS and NES monitor- the past two years, MoHA’s MSS policy has been ing systems needs to change in order for student continuously improved, with greater attention learning to increase at scale (box 5.4). Managing the education system to deliver learning  •  99 BOX 5.4 How does Indonesia measure school level success? Indonesia has defined eight national standards measuring school success and learning achieve- to measure schools: (1) graduate competence, ment than simpler, more objective measure- (2) education content, (3) learning process, ment tools designed to be verified by external (4) education assessment, (5) teachers and edu- observers. cation personnel, (6) facilities and infrastructure, The Minimum Service Standards (MSS) are de- (7) management, and (8) funding. Each standard rived from the national education standards. The has associated criteria differentiated by school NES are long-term goals, and are supported by level. MoEC assigned the BSNP (National Edu- the MSS as shorter-term standards meant as step- cation Standards Agency) to assist it to develop, pingstones to achieving the national standards. monitor, and report on the achievement of the The MSS are the mirror image of the overly com- National Education Standards. MoHA coordi- plex NES measurement tool; the MSS are too sim- nates the development of the standards and su- ple, and have been further reduced (MoEC 2018), pervises their implementation. The measurement making them less useful as a guide to schools for tools for assessing performance of schools on what to focus on to improve quality. And neither the standards are numerous (almost 600 items), the MSS nor the NES assessment tools focus on subjective, and self-reported without direct ver- learning achievement indicators, let alone cor- ification. That makes them much less useful in relate them with other indicators of quality. Source: MSS monitoring system. Integrating different types of private schools. In addition, private schools usual- education ly charge fees, some quite high depending on the One of the aims of the Education Law was to es- school’s reputation, so that parent household ex- tablish a single national system for education that penditure is generally higher for attendance in pri- includes state, religious, private, and semiprivate vate schools (World Bank 2014). schools. The 2003 law integrated all schools under Public schools, including madrasahs, are fi- MoEC or MoRA into a single national system, but nanced from district, provincial, and national the administrative authority and the funding chan- sources. However, parents still pay a large portion nels remained separate. The creation of the nation- of household income on uniforms, books, school al education system aimed to facilitate the move- equipment, school committees, extracurricular ac- ment of students between the education systems tivities, and fees. regulated by the two ministries. Private schools, often run by nonprofit and un- Private schools and madrasahs have expanded derregulated foundations, provide 12  percent of in recent years and tend to face multiple challeng- education services in grades 1–12. While technical- es related to performance, efficiency, and account- ly not decentralized under MoRA’s centralized sys- ability. The number of private schools/madrasahs tem, the private schools are very loosely controlled. has increased, particularly at senior secondary level, and a large proportion are small­ —­much Ensuring that minimum standards are smaller on average than public schools. met Available information shows that student per- Indonesia is trying to improve compliance with formance in private schools is lower on average its MSS for education and has continued to dis- than in public schools, levels of accreditation are seminate its national education standards. But lower, and small schools face challenges in the use early childhood and upper secondary education, of resources (for example, teacher planning and expanding in recent years, did not have the MSS management). Public funding of private schools is to guide their service delivery. Published in 2018, substantial, particularly through BOS grants and the MSS became effective in January 2019. Also other subsidies, but the monitoring and assess- in 2018, the National Education Standards Agen- ment of private schools (against the MSS)­ —­ and cy (BSNP) launched the National Standards for therefore their accountability to MoEC which sup- Secondary Education. MoHA’s MSS policy has be- ports them and to the parents who pay for them­ come more sensitive to MSS fulfillment in provincial —­ are weak (as for public schools). Indeed, public and district government’s planning, budgeting, subsidies may create incentives to establish new and reporting. The Sistem Informasi Perencanaan 100  •  The Promise of Education in Indonesia Daerah (SIPD) now includes MSS tagging that en- accreditation and national FIGURE 5.4 School ables MOHA to assess whether subnational gov- ernments planning and budgeting documents examination scores, grade 9 such as RKPD and RPJMD have included MSS-ful- UN score, grade 9 fillment indicators. 100 School accreditation School accreditation has also accelerated in re- 80 cent years. Both public and private schools must renew their accreditation every five years, and new 60 schools need accreditation. For 2018, the target was 54,000 schools and madrasahs, both new and those needing reaccreditation. The government is 40 also trying to equalize access to accreditation, es- pecially in remote areas. 20 MoEC strengthened its role in quality assur- ance through Peraturan Pemerintah No.  19/2015 on national education standards, which required 0 A B C Nonaccredited that the governance and management of schools Accreditation status be accompanied by more adequate quality assur- ance to increase transparency and accountability Source: DAPODIK 2017 and Junior Secondary UN score data (Puspendik) for 2017. in the education system.99 Data on the eight com- Note: Accreditation of schools is based on a scale of A (highest) to C ponents of the national education standard were (lowest). mostly collected by teachers and principals, with varying degrees of support from supervisors. The data enable schools to prepare their school im- provement plan. heterogeneous criteria applied by schools could However, although the indicators of quality allow low-performing students to graduate and assurance are related to student results, the rela- continue to the next level without mastering the re- tionship is tenuous. Available data for the school quired skills and competency. accreditation process show that schools accred- MoEC has also strengthened its capacity to ited A tend to have higher scores in the National gather data on the education system through the Exam than schools accredited B or C (figure 5.4). DAPODIK platform (see box 5.3), which allows Schools accredited B tend to have higher scores data collection at the source (schools) and its use that schools accredited C, but that difference is by education authorities at the district, province, small. The econometric analysis shows that school and national levels. Better data have allowed im- accreditation explains only 3 percent of the vari- portant adjustments: for example, the reported ance in school results­ —­that is, some schools ac- number of teachers between school years 2014 credited C have results higher than the mean result and 2017 fell by about 10 percent because of DAP- of schools accredited A (MoEC DAPODIK 2017 and ODIK’s capacity to reduce duplicate reporting. Puspendik 2017). This can mean that even the “of- ficially” best schools (accredited as A) are of the Managing and financing schools and same quality as schools with a lesser accreditation­ madrasahs to deliver learning —­ or that the accreditation process itself does Most countries whose students perform well on not discriminate well between schools of different international student achievement tests give their quality on student scores. local authorities and schools substantial auton- As a result of the various administration prob- omy over adapting and implementing education lems of the National Examination, different grad- content and allocating and managing resources. uation criteria have been adopted. School exam- Greater school autonomy does not necessarily inations have now replaced the role of the national widen disparities in school performance if govern- test to become a graduation criterion. In a recent ments provide a framework for poorer performing MoEC regulation, students can graduate if they schools to receive support to help them improve. have completed the curriculum, earned a qual- The argument in favor of decentralized decision- ification of “good” in attitude, and passed the making in schools is that it fosters demand at school examination. The school defines the mini- the local level by giving voice and power to local mum score to pass the school examination. These stakeholders, decentralization can increase client Managing the education system to deliver learning  •  101 satisfaction and improve education outcomes as such as BOS, are spent. Nonetheless, school prin- long as accountability measures balance the risk of cipals have an official degree of autonomy over elite capture. School autonomy and accountability school budgeting and spending, within limits set can address some of the key challenges in educa- by MoEC, in deciding how to use the BOS funds. tion service delivery, but their potential is contin- The limited capacity of principals and school com- gent. If schools are given some autonomy over the mittees, along with cultural and other constraints, use of their inputs, they can be held accountable has likely reduced the potential impact of school- for using them in an efficient manner. Decentraliz- based management, especially in low income and ing power to the school can also improve service rural areas. Student learning and equity could be delivery to families whose children are excluded further improved if schools were to focus resourc- from education­ —­by giving them a say in how local es and expertise on identifying and helping the schools operate and by giving schools an incentive lowest performing students and teachers­ —­and if to ensure that they deliver effective services to these districts and provinces were to support the lowest families and penalizing those that fail to do so. performing schools to increase their capacity to However, the international evidence is mixed, implement school-based management. Effective and the preconditions for effective school-based accountability and incentives to achieve results is management may not exist, considerably limiting a prerequisite for school-based management and its impacts in many contexts. autonomy (World Bank 2018d). In Indonesia, the shift toward school-based management has been incomplete and has not Preconditions for school-based management resulted in measurable improvements in student In many education systems, decentralizing learning or financial efficiency. While the govern- decision-making to schools is regarded as an im- ment has devolved decision-making to the dis- portant part of effective school management, trict and school levels, civil service teacher hiring which in turn is necessary for improving student is still primarily controlled centrally, and there are learning outcomes. Shifting school decision-making limits on how some types of school financing, from central authorities to schools is motivated 102  •  The Promise of Education in Indonesia by aims ranging from improving the efficiency of Shapiro 2006; Gertler, Patrinos, and Rubio-Codina decision-making to improving the responsiveness 2006; Benveniste and Marshall 2004; Blimpo and of public services to local demand, and to reducing Evans 2011; Jesse et al. 2010). Effectively harness- political and social tension (Demas and Arcia 2015; ing participation to improve educational outcomes Bardhan 2002). Decentralizing school decision- is challenging, and many factors can hinder the ef- making to improve school management and ulti- fectiveness of participation in school management­ mately the quality of education a school provides —­ capture by local elites, poverty in the local com- has been studied extensively (Barrera-Osorio et al. munity, which leads to a low priority being given 2009; Bruns, Filmer, and Patrinos 2011). Two criti- to participation in school management, tradition- cal areas that emerge in this literature are budget al subservience of parents to school officials, and management and personnel management, includ- the low capacity of stakeholders to make good ing hiring and firing teachers. decisions (Gunnarsson et al. 2009; Contreras and Studies have examined the impact of reforms Contreras 2015; Shibuya 2014; Di Gropello 2006; to allow schools to manage part or all of their fi- Lugaz and De Grauwe 2010). Even if mechanisms nances, especially in the context of school grants, hold schools accountable both to local stakehold- and how these reforms have affected education ers and government authorities, accessible assess- outcomes, including test scores (Bloom et al. 2014; ment results are also needed for stakeholders and Blimpo and Evans 2011; Pradhan et al. 2011). Stud- decision-makers to make decisions conducive to ies have also examined the link between person- better learning in schools. nel management and education outcomes (Hahn, Wang, and Yang 2014; Di Gropello 2006; Gillies, BOS funding of schools Crouch, and Florez 2011). But the impact of these The BOS program, set up in 2005, disburses mil- interventions on educational outcomes, especially lions of dollars in block grants to schools across test scores, is mixed. The success of decentraliza- the country on a per student basis (box 5.5). The tion reforms relies on a wide range of factors. So, program demonstrates Indonesia’s commitment decentralization of school decision-making and to provide quality education to students of all in- improved school management are characterized comes. BOS funds have enabled children from poor as necessary but not sufficient conditions for im- families to go to early childhood education (under proving learning outcomes (Arcia, Macdonald, and the name of BOP) and primary and junior second- Patrinos 2014). ary school. Community involvement and transpar- Effective school-based management balances ency are key elements contributing to the success of school autonomy with accountability and accessi- the BOS program. School committees comprising bility of information on learning outcomes. To im- parents and local community members are tasked prove school management requires strengthening with planning and monitoring the use of BOS grant the overall system rather than just certain parts. funds. Annual plans and quarterly expenditure re- For example, providing schools with autonomy ports are to be publicly displayed on school notice over budgeting may not produce a better learning boards, with the aim of increasing transparency and environment unless accountability and the use of deterring corruption and misuse of funds. learning assessments are also strengthened simul- The per student value varies across education taneously (Arcia, Macdonald, and Patrinos 2014). levels linked to the higher costs of facilities and ma- This has not happened in Indonesia, where policy terials required at higher levels. In 2019, the trans- has moved away from accountability, as with abol- fers were Rp 600,000 (about US$42) for students ishing the grade 6 exam in 2021. in early childhood education, Rp 800,000 (about Another key element of accountability is involv- US$57) for students in primary education, Rp 1 mil- ing school committees in decision-making. In- lion (about US$71) for students in lower secondary volving parents and local stakeholders can make education, Rp 1.4 million (about US$100) for stu- services more responsive to the needs of the local dents in general upper secondary education, and community. There is international evidence on the Rp 1.6 million (about US$114) for students in voca- positive impact on various educational outcomes tional upper secondary education. of improving participation of local stakeholders, As mentioned, DAK funds are earmarked for especially parents and community members, in funding the BOS grants, teacher professional al- school management. The outcomes studied in- lowances (TPG), and some school infrastructure. clude access to schooling (Di Gropello 2006; Total transfers to local government increased by Chaudhury, and Parajuli 2010) as well as reduc- 25 percent in real terms between 2011 and 2017, ing dropouts and improving attendance and test while the National Education Budget increased scores (Jimenez and Sawada 2003; Skoufias and only by 16 percent. The largest increase in funding Managing the education system to deliver learning  •  103 was through the DAK (84 percent), while the DAU additional resources to schools and districts with increased by 11 percent. greater needs (as with higher percentages of dis- These central transfers are complemented by advantaged students). This mechanism is con- the subnational governments’ own revenues. De- tingent on improvement plans, and to continue spite improvements in data collection by the Minis- receiving the additional resources, schools and try of Finance, significant information gaps remain districts are evaluated on their progress in achiev- on the use of resources by local governments. ing specific targets (Murnane et al. 2017). Schools have limited autonomy, however, in how Increasing resources for schools they spend BOS and other resources, including Despite the fiscal effort, Indonesia’s education those provided by the district. Some schools have spending still remains lower than in other middle- the capacity to spend these resources well and income countries. For example, expenditure on ed- could benefit from greater autonomy, while others ucation as a percentage of GDP was 3.3 percent in lack the capacity and interest/incentive to do so. The 2014, falling to 3.0 percent in 2018, compared with challenge is to decide how much autonomy to give Malaysia (6.1  percent) and Vietnam (6.3  percent). to schools in a decentralized system with school and Furthermore, Indonesia is among the countries district capacity and interest varying widely. with the lowest expenditure in purchasing power But information is lacking on the amount of re- parity (PPP) terms among the PISA 2015 partic- sources allocated by local governments to educa- ipating countries. While science scores on inter- tion from their own revenues. About 23 percent of national tests increased between 2012 and 2015, students in basic education live in districts in small learning levels were still 19 points below those pre- provinces, which receive about 41  percent of the dicted by Indonesia’s income (World Bank 2018d). total national resources allocated to the subna- The results of the 2018 round of PISA fell further. tional level (including provincial and district bud- Having fewer resources affects the quality of get allocations) (World Bank 2018b.). education service delivery. For example, among Improvements by the central government to the participants in PISA tests, Indonesian school more efficiently use BOS grants and TPG allow- principals were more likely to indicate a shortage ances for teachers should be matched by comple- of textbooks, school supplies, and infrastructure in mentary actions by districts, particularly in districts their schools than their counterparts in countries with the largest amount of resources for education. that have higher education spending per student­ The effectiveness and efficiency of district educa- —­ Brazil, Mexico, and Thailand. But this is not nec- tion spending need to be monitored, especially in essarily only an issue of resources. Since school smaller districts where managerial capacity tends leaders have some autonomy on how to spend to be lower­ —­ to ensure that the largest share of their allocations, it seems that principals choose the education budget is used more efficiently. This hiring more teachers over other learning inputs, will require hiring more qualified, motivated staff such as textbooks. in district education offices (a challenge, given the The 2018 study by the World Bank, Growing politics of district governments), along with invest- Smarter, found that high-performing systems in ments in capacity building and information sharing East Asia have mechanisms to guarantee effec- with districts that have higher levels of learning tive spending, concentrate public spending on with students of similar backgrounds. basic education, and channel resources to schools As Indonesia moves ahead with education re- and districts failing behind (World Bank 2018a). forms, supplementary mechanisms should link High-performing countries also have accurate and the use of BOS resources to improvements in stu- timely information systems that allow them to al- dent learning conditions­ —­for example, rewarding locate resources where they are needed, helping schools with higher improvements. There has been them to invest education resources efficiently. Viet- some recent positive movement in this direction nam’s School Quality Audit Program is an example with BOS Kinerja. BOS policies could also more of an effective information system. This system col- explicitly link funding allocations to quality assur- lects information on school quality across Vietnam ance, such as achieving accreditation or meeting and allows the country to adequately prioritize ed- national standards. The government could en- ucational resources and improve the efficient use hance the poverty focus of BOS, already a priori- of resources (World Bank 2018a). Chile has an in- ty, by adjusting for inflation and tweaking funding novative mechanism to distribute resources where to provide additional funds for poor students. It they are needed most and thus to maximize effi- could also limit the BOS grants allocated to private ciency of resources. It distributes resources on an schools that charge high tuition fees. In addition, estimated unit cost per student basis and provides BOS has the opportunity to do more to empower 104  •  The Promise of Education in Indonesia BOX 5.5 Electronic performance-based school planning and budgeting systems The education system under the Ministry of Ed- which is more efficient, better structured, and ucation and Culture (MoEC) is highly decentral- in line with a performance-based planning ap- ized. Most school costs under MoEC are covered proach. A first version of the e-RKAS was created by fiscal transfers from the center to provincial by the Education Office in Surabaya, East Java, and district levels. One such type of transfer is to simplify the approval process of school plans school operational grants, known as Bantuan and budgets. A more advanced version was then Operasional Sekolah (BOS) or school operational developed by the World Bank team and piloted assistance. BOS funds are managed directly by in schools in DKI Jakarta province in 2015–16. schools, which have been delegated the auton- In 2017, the World Bank and MoEC piloted the omy to receive, plan and budget, spend, admin- eRKAS program in select schools in Central Java ister, and report their use. Experience has shown and Bali provinces and Gorontalo, Sidenreng that many schools lack the capacity to use BOS Rappang, and Mojokerto city districts. funds effectively and efficiently to deliver better In 2018, MoEC tried to replicate the World learning outcomes for students. Bank eRKAS system using a system that requires Under the BOS program, each school is re- internet connectivity, but this proved challeng- quired to conduct a School Self-Evaluation (SSE) ing for schools without internet. Consequently, against the NES and use the results to develop Gunung Kidul district in Yogyakarta province its spending plans accordingly. Every school has developed a partly online RKAS tool called the also been advised to develop a planning and MoEC Aplikasi RKAS (ARKAS). The application budgeting system (Rencana Kegiatan dan Ang- is an offline tool that can downloaded from the garan Sekolah or RKAS) to allocate and manage Education Office website and used by public and BOS funds. The concept of performance-based private schools in areas with low or no internet planning and budgeting was introduced to en- connectivity. Since 2015, other electronic school sure that schools use the RKAS to improve their planning and budgeting applications have been performance. Using the approach, each school developed by district or province education offic- can measure the progress of their achievement es. In March 2019, MoHA introduced a fully online against the National Education Standards every application called Sistem Informasi Pengelolaan year. A World Bank review of BOS in 2016 re- BOS (SIPBOS or BOS management information vealed that only some schools develop an RKAS system), which focuses on planning, monitoring, annually, while others simply copy the previous and expenditure reporting of school BOS funds. year’s data. Further, where they are developed, MoHA considers this system to be a refinement the RKAS is typically not based on the school’s of ARKAS as it has more complete electron- SSE results, which means that it is not systemati- ic management and administrative systems for cally aligned with the eight NESs. BOS, going from the school to the district and To help schools plan and allocate resources, province levels. In the future the Government can the World Bank, in partnership with the Austra- take several steps to strengthen these systems lian government, supported MoEC to develop an and expand their use. These include eliminating application called the Rencana Kegiatan dan An- duplication between the systems, expanding ggaran Sekolah Berbasis Elektronik (e-RKAS or training to all schools, providing supporting facil- electronic school plan). This tool enables schools ities such as cloud storage, and developing clear to input and manage the RKAS electronically, regulations. Source: World Bank forthcoming. parents. Revitalizing parents’ awareness, empow- supported the ministry to pilot a Madrasah Elec- erment, and responsibility for schools through tronic Planning and Budgeting System (e-RKAM) in BOS could link to higher emphases on student 60 madrasahs in Jombang district and Yogyakarta achievement and greater demand for accountabili- province.100 Having completed pilots successfully, ty (World Bank 2014). MoRA has adopted the World Bank–­ financed pro- The Ministry of Religious Affairs is also shifting gram and will implement it nationally to 50,000 ma- to a more efficient and transparent system. In 2018, drasahs through the Realizing Education’s Promise the Australian Government and World Bank also project (running from 2020 to 2024). Managing the education system to deliver learning  •  105 Limited autonomy, capacity, and accountability further decentralization of school decision-making are constraining outcomes for schools were being put in place (figure 5.5). The rating Designing school-based management reforms and tool revealed greater scope for school autonomy interventions that aim to improve educational out- in budget preparation. But the systems approach comes is complicated and challenging. First, many would suggest that accountability practices­ —­ factors affect student attendance and learning be- especially for personnel management (such as yond school management. School management who gets hired on local contracts), as well as pub- alone may not influence outcomes if other larger lic release of learning assessment results­—­should bottlenecks exist, such as teacher training and the be strengthened simultaneously. In other words, suitability of pedagogic materials and curriculum. a reform providing schools with further autonomy Second, engaging parent and community partici- would need to include stronger accountability and pation is also subject to cultural and social com- the dissemination of learning results in order to plexities that may hinder accountability, including promote system improvement. capture by local elites. Testing the effectiveness of The strongest practices related to accountabili- a reform aimed at further decentralization is im- ty of budget preparation to the school committee portant to understand how effective a reform is and the use and publication of learning assessment and how it needs to improve. One approach is to results. The participation of the school committee pilot a reform following a rigorous evaluation de- in preparing the school budget was reported by a sign, such as a randomized controlled trial, and majority of the principals at schools sampled to be then measure not just educational outcomes but either established or advanced. This was also true also parent and community member participation. for using standardized assessments to make ped- Such studies would provide policymakers with the agogical, operational, and personnel adjustments information needed to update and fine-tune re- and for publishing student assessment results. forms before scaling up. The weakest practices are related to the au- The World Bank uses a rating tool, known as the tonomy of budget preparation and personnel Systems Approach for Better Education Results management, the accountability of personnel (SABER), to identify strengths and weaknesses of management to school committees, and the so- education systems. The Bank adapted this to as- cialization of learning assessment results. Of sam- sess the effectiveness of policies and practices re- pled schools, 64  percent were rated “latent” in lated to school-based management. In Indonesia, their reported legal authority over management of the tool was applied to a nonrandom selection of the operational budget. This is a cause for concern 116 public schools (World Bank unpublished). since, under the 2003 law, the mandate for plan- The assessment found that the fundamental ac- ning and executing school budgets lies with the countability and assessment practices to support school, within the constraints of MoEC standards FIGURE 5.5 School ratings for selected indicators Latent Emerging Established Advanced autonomy Rating of autonomy in teacher Measuring Accountability School appointment and deployment decisions Rating of legal authority of school over management of the operational budget to school Rating of participation of the school council council in school personnel management Rating of participation of the school council in budget preparation learning results Rating of socialization of learning outcomes and using Rating of publication of student assessments Rating of the use of standardized student assessments for pedagogical, operational,and personnel adjustments 0 20 40 60 80 100 Enrollment rate Source: World Bank 2018d. 106  •  The Promise of Education in Indonesia such as how BOS funds can be used (World Bank activities to meet the given standards (World Bank unpublished). unpublished). While the principal is at the center of the de- volved system of school-based management, School accountability their current skills do not always enable them to Under the education and decentralization laws, perform their management and leadership roles education management is a joint responsibility of well. In high-performing systems, principals are schools, school committees, districts, and the cen- instructional leaders who take a positive role in tral government. An analysis by the World Bank improving the quality of teaching and learning at documented the current lack of an accountability their schools, as reflected in improved student out- system to guide district-level decisions. A Nation- comes. Many principals in Indonesia do not have al Education Quality Initiative that strengthens the adequate training or knowledge of school man- assessment system and improves its credibility agement and leadership and so are unable to lead could fill this gap. This initiative should also include their teachers in ways that will achieve better stu- financial data and the use of education resources dent outcomes. at all levels to promote effectiveness and efficiency in the sector. School autonomy Both indicators of school autonomy studied have Recommendation 8: Strengthen scope for increased autonomy: a majority of accountability mechanisms through schools do not have legal authority over manage- better data tracking and verification ment of their non-salary budget, and, for a major- • Keep better track of education trends by im- ity of schools, staffing decisions about civil service proving MoEC and MoRA databases. staff are made by regional or local authorities, • Hold stakeholders and decision-makers ac- with central government authorities having final countable for improving education quality by say. Schools also do not have the knowledge and establishing an Education Quality Index. capacity to execute budget management autono- • Use data from the index to direct assistance to mously and require continual training in develop- lagging districts and schools. ing school self-analyses and improvement plans, budgeting BOS and BOSDA funds, performance- What can be changed or improved? based budgeting (PBB), tracking progress using • Hold stakeholders and decision-makers ac- DAPODIK, and using electronic annual work plans countable for improving education quality by to integrate PBB with monitoring, evaluating, and establishing an Education Quality Index for dis- reporting results. Increases in school autonomy tricts and provinces on student learning, educa- would be accompanied by corresponding increas- tion expenditures, and system performance. In- es in accountability. formation from the Quality Index can be made Autonomy over, and local accountability of, public at the presidential level, and the informa- personnel management decisions are rated poor- tion should flow to provinces, districts, working ly in most schools: 84  percent are rated emerg- groups, schools, and classrooms so that prin- ing in autonomy, and 77 percent are rated latent cipals and teachers know in what areas their in accountability. Given that the schools gener- students need help­ —­ and this help can then be ally are able only to hire contract teachers, with provided. civil service teachers hired from the center, this is • Integrate and improve MoEC and MoRA data- not surprising. The teachers hired as civil service bases to provide accurate and up-to-date teachers have a permanent position in the govern- data (and trends revealed by the data) to ment and are unlikely to consider themselves ac- decision­ -makers across ministries and levels of countable to the school community. Most schools government. were rated emerging or advanced in disseminat- • Ensure that the databases clearly identify in- ing learning outcome results, but a large propor- equities and disparities in the system­ —­such as tion (39 percent) were rated as latent (World Bank between provinces and districts, urban/rural/ unpublished). remote schools and large/small schools, and Interviews with schools reveal a high degree of high-performing and low-performing schools­ —­ variation in their knowledge of standards and their so that action can be taken to reduce any existing capacity to carry out self-assessments, to set tar- disparities. Require district and province educa- gets in the school improvement plan, to strategi- tion officials to pass a customized online training cally plan and execute performance-based bud- course on the analysis of their own education geting to achieve these targets, and to prioritize data with a focus on identifying disparities. Managing the education system to deliver learning  •  107 • Design and establish verification mechanisms for • It can work through the institutions now in place data on school and ECED registration, infrastruc- to enhance accountability and promote re- ture, staffing, and student access (enrollment) sults-based change. and learning outcomes for MoEC and MoRA. • And it can link financial transfers more explicitly to quality. What are the options to implement this change? What can be changed or improved? • Support school improvement and enhance For the Education Quality Index student outcomes using the building blocks al- • MoHA can work with MoEC and MoF to devel- ready in place­ —­principal and teacher working op the technical guidelines for the subnational groups, school committees, education quality spending classification regulation (Government assurance institutes (LPMPs) and training col- Regulation No. 12/2019) and plan to support leges (LPTK), and the Dinas and their supervi- subnational governments to implement the de- sors. All these building blocks need further ca- tailed education expenditure reporting guide- pacity development, and the resulting aligned lines to help answer key questions about edu- “architecture” of support can be directly in- cation spending, including student unit costs volved in improving teacher performance. by level of education, and spending on teach- • Work district by district to make staff more ca- er training by teacher type (PNS vs. contract pable and accountable for the work they do, teachers) and level (primary vs. secondary). including clarifying the role of every Dinas unit • MoHA, MoEC, and MoRA can work together to in enhancing learning outcomes and requiring develop a simple quality index, drawing from Dinas staff to remain in their positions following improved and simplified versions of MSSs and capacity-strengthening activities. NESs as well as measures of student learning. • Incentivize and hold accountable districts MoHA can use the index to identify districts through performance-based budgeting and ca- and provinces not meeting the minimum per- pacity building and support. formance targets and in need of more support. • Encourage all education stakeholders to partici- MoEC can provide assistance to improve learn- pate in education service delivery. ing and school functioning to these identified districts and provinces, since MoHA is empow- What are the options to implement this change? ered to instruct subnational governments what • MoHA, MoEC, and MoRA can work together to do, while MoEC is qualified to suggest to to reform the current system, which does not them what they should do to improve their per- incentivize districts or hold them accountable formance. MoRA can do both functions within for producing good student learning outcomes. their system. The system can move toward performance- • The Office of the President could announce the based budgeting for stronger performers, and results of each education quality index ranking toward needs-based capacity strengthening each year to publicize the results in the nation- and support for weaker performers. al political discussion, signaling the importance • MoEC can improve the planned performance- of student learning and system performance by based BOS program (BOS Kinerja) by simplify- praising those that improved their results and ing the scoring mechanism to fewer and more calling on lagging regions to improve. objective observable criteria. • Databases: • MoHA can mandate independent data ver- References ification as well as financial sanctions for ACDP (Analytical and Capacity Development Partnership). misreporting. 2014. Teacher Absenteeism in Indonesia. Policy Brief. • MoEC can support districts and provinces to November 2014. 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Indonesia Public Expenditure Review details for 2020. https://peraturan.bpk.go.id/Home/ 2020: Spending for Better Results. Washington, DC: Details/135245/perpres-no-78-tahun-2019. Managing the education system to deliver learning  •  111 SPOTLIGHT 2 Technical and vocational education and training Successful skill development systems produce students with the fundamentals and skills needed by the labor market. Having the right foundation requires a schooling system that maximizes learning in the classroom, on not only the cog- nitive dimension but also the socioemotional (chapter 4). Skills for the labor market are usually provided by the technical and vocational education and training (TVET) institutions and the non-TVET university sector (chapter 6). Skills an unprecedented speed while other occupations are dis- Ensuring that the skills produced by education and training appearing. The system will therefore have to provide op- are aligned with labor market needs requires not only TVET portunities to upskill and reskill segments of the workforce institutions with adequate resources, but also constant co- displaced by Industry 4.0. ordination between the education and training providers (the supply) with the potential employers (the demand) to Adjusting the skill development system for ensure the content is relevant. Effective coordination re- Industry 4.0 quires an adequate institutional design with the partici- Indonesia has favorable conditions for economic growth, pation of the different stakeholders in skill development but slow progress in human capital development has limited systems. the country in achieving its growth potential. The low quality Industry 4.0 is rapidly changing the labor market and of the labor force­ —­ with low cognitive and socioemotion- challenging the definition of a successful skill development —­ al skills­ translates into low labor productivity and overall system. It takes advantage of cyber-physical systems and low competitiveness. Indonesia’s labor productivity is one- requires workers equipped with specific 21st century skills, fourth of Malaysia’s, and the estimated contribution of ed- which include the traditional foundational skills but also ucation to long-term economic growth is 1.8  percentage high levels of resilience, problem-solving, and collabora- points per year lower than Vietnam’s (World Bank 2018). For tion. Skill development systems in the context of Industry example, in the tourism sector, Indonesia is a leader in its 4.0 will have to react quickly to the changing needs of the attractiveness (4 out of 46) but among the last in the quality labor market and the rapid pace of technological change. of its human resources (45 of 46) (WTTC 2015). Some occupations are experiencing dramatic changes in The government has shown a strong commitment to im- their required skills, and new occupations are appearing at prove the quality of its labor force to promote economic FIGURE S2.1 Industrial revolutions 1st 2nd 3rd 4th Mechanization, Mass production, Computer and Cyber-physical water power, assembly line, automation systems steam power electricity Source: Christoph Roser. 112  •  The Promise of Education in Indonesia growth. Improving the quality of the labor force will require and high labor-market placement. In most cases however, several actions to improve education outcomes that will direct links are difficult to establish, and standardization of provide young Indonesians with the right fundamentals and the skills is needed. provide opportunities for lifelong learning. These will, in turn, allow the adult population to receive training to upskill and Education and training institutions reskill in line with labor market changes and to have their new TVET institutions, as established by SISLATKERNAS, design skills recognized through their experience in the labor force. and implement competency-based programs (Pelaksanaan Indonesia’s skill development system is defined by a Pelatihan Berbasis Kompetensi, PBK). Their programs have series of regulations that determine some of the key insti- to align with the SKKNIs according to different levels of the tutions and relationships among them. These are meant KKNI. TVET institutions can be either formal or nonformal. to ensure that the number of graduates of TVET institu- Besides foundational levels in the education system, formal tions and the content of their learning programs satisfy the institutions in TVET, public and private, comprise voca- needs of the labor market, but also that the skills acquired, tional secondary schools and polytechnics, both subject to either in TVET institutions or in the workforce, are properly MoEC regulations. The nonformal institutions are training certified and that TVET institutions have the right accredi- providers of courses that usually are short-term, under the tation to deliver those skills. regulations of MoEC, the Ministry of Manpower (MoM), and several line ministries. The Indonesian skill development system Indonesia has nearly 40,000 TVET institutions: public The National System of Skill Training (Sistem Pelatihan and private, formal and nonformal (table S2.1). Kerja Nasional, SISLATKERNAS) links components of ed- TVET institutions offer different types of programs. The ucation and training with the goal of achieving a skilled most popular are ICT and business management. In all, In- labor force that can contribute to economic growth. Laws donesia has 71,000 programs. and regulations have been established to accommodate cross-sectoral demand on competency-based professional Certification of education and training development of the workforce.101 The main components of institutions SISLATKERNAS are: SKKNIs and KKNI should guide the competency certifica- • The Indonesian National Competency Standards (SKKNI) tion process. In addition to being used as a reference in the and the Indonesian Qualification Framework (IQF) or Kerangka Kerja Nasional Indonesia (KKNI). Through TABLE S2.1 Number of TVET institutions, by July these components, SISLATKERNAS recognizes the im- 2020 portance of clearly defining competency frameworks for each occupation and their packaging into the qualifica- Leading tion framework. ministry TVET institutions Number • The National Skill Education and Training based on MoEC SMKs 14,301 SKKNI and KKNI. Through this component, SISLATKER- Community training/education institutions NAS recognizes that the competency standards should (including LKPs or nonformal courses) 18,911 guide the provision of training. Polytechnics 304 • The National Competency Certification. Through this com- Community colleges 36 ponent, SISLATKERNAS emphasizes that certification has Subtotal 33,552 to be based on the identified competency standards. MoM BLKs 305 Creating a relevant TVET system: Competency LPK (nonformal course institutions) 5,020 frameworks and a qualification framework Community BLKs (a joint program with An effective skill development system requires clear defini- MoRA) 1,113 tions of what workers are expected to do in different occu- Subtotal 6,438 pations and the different skills they must possess to imple- Total 39,990 ment the tasks those occupations require. In some cases, direct links between demand and supply ensure alignment­ Sources: Data from MoM Pusdatin (2020) and MoEC (2019). Note: The MoEC subtotal does not include 2,501 institutes (Institut) and 238 —­ such as direct links between tourism vocational high school of higher learning (Sekolah Tinggi), many of which have vocational schools in Bali with cruise lines that guarantee alignment study programs or faculties. Technical and vocational education and training  •  113 SPOTLIGHT 2 design and implementation of education and training pro- as those from the private sector­ —­generating challenges grams, SKKNIs and KKNI are to be used as references in for proper functioning. The current system also presents the design and implementation of work competency certi- high levels of duplication. For nonformal training, two sys- fication. They should be used to formulate a competency tems coexist, leading to duplication that wastes resources certification scheme (Skema Sertifikasi) and assessment and weakens the quality assurance systems as training in- tools (Materi Uji Kompetensi, MUK). A competency certifi- stitutions migrate across systems if they face challenges in cation scheme contains, among other things, the packag- the quality assurance/accreditation process (figure S2.2). ing of unit competencies (SKKNI) and assessment require- ments. The assessment tool and materials will be prepared The system has little relevant information to guide priority- by an assessor team according to SKKNI. setting for training areas Despite isolated efforts by different ministries, there is lit- Main challenges in the TVET system tle information on the occupations in high demand, so the Different countries have different structures for their skill TVET system cannot focus its resources on them­ —­ a sharp development systems to respond to their specific needs. contrast with other countries (box S2.1). The Ministry of For example, Australia has an Industry Skills Council which Manpower, the Coordinating Ministry of Economic Affairs, oversees the overall process of skill development and use, and the Ministry of Education and Culture are producing a while Canada has provincial councils with a similar mandate. Critical Occupation List to provide information on the sec- But in Indonesia, despite ongoing change, the architecture tors in excess demand or supply for setting priorities on of the system is not well defined with areas of duplication TVET investment decisions. The list is produced by merging and important gaps. Thus, each line ministry takes the lead information from the national statistics office and consulta- to organize its skill development systems without formal tions with the private sector, but is not always comprehen- guidelines for the participation of some key players­—­such sive or current. FIGURE S2.2 Two major skills training streams in Indonesia MoM MoEC Competency standards Oversees the development of BSNP (Indonesian National competency standards Education Standards Board) Accreditation authorities of training providers BAN–PNF (nonformal accreditation LA–LPK (nonformal accreditation authority, MoM) authority, MoEC) Training Nonformal training private institutions (LKPs) Nonformal training private institutions (LKPs) BLKs (vocational training centers) Formal vocational education in SMKs, Apprenticeship system polytechnics, academies, community colleges BNSP (Indonesian Professional Certification LSPs under BNSP Authority) (MoM provides secretarial support) Certification LSK (Competency Certification Authority) LSP (Professional Certification Agency) Third-party private institutions Third-party private institutions Assocations of HILLSI (Association of Indonesian HIPKI (Association of Indonesian training providers Training Institutions) Training and Course Providers) Source: World Bank, Indonesia Skills Development Project. 114  •  The Promise of Education in Indonesia BOX S2.1 Labor market observatories Labor market observatories (LMOs) aggregate, ana- • Sistema Nacional de Información de Educación Su- lyze, and curate information on labor market trends to perior and Observatorio Laboral para la Educación help potential and current students, job seekers, training (Colombia). These provide information to help families providers, employers, and policymakers make informed evaluate the quality and potential benefits of various decisions about skills development. They analyze and courses of study. The former is designed as a com- monitor trends in labor supply and demand to identify prehensive information system on higher education mismatches. To work properly, they should have data on and the latter provides information on graduate char- labor markets from diverse sources, collaborate with other acteristics and labor market outcomes (income and agencies, have a sound statistical infrastructure in place, employability). be responsive to the demands of their users, and provide • Labor Market Information Portal (Australia). This con- information tailored to their needs. Internationally recog- tains up-to-date labor market data at national, state, nized LMOs include: regional, and local levels to help people understand • Mi Futuro (Chile). This LMO collects information from their local labor market. education institutions on graduate outcomes and pairs • Direction de l’animation de la recherche, des études it with data from tax and pension administrations to et des statistiques (France): This analyzes labor market make information on the incomes of graduates of pro- data and produces studies and statistics on areas of fessional and technical programs publicly available. work, employment, and vocational training. Despite the central importance of aligning supply and training opportunities to their employees than firms in demand, developing competency frameworks has been other East Asian countries and globally (figure S2.3). Small limited and medium firms offer very little training, while large firms Only about 20 percent of the required competency frame- offer less than others in the region. The lack of a critical works for 970 business areas have been adopted, with the mass of firms in Indonesia demanding quality training con- lack of prioritization by line ministries one of the main fac- tributes to an underdeveloped supply of relevant training, tors (World Bank 2020). Some of the missing areas are high as does wage compression, which reduces worker demand priorities. The development of standards was mostly par- for quality training. tial and not based on a comprehensive competency needs There are not many indicators on the quality of TVET map in the relevant sectors and fields. institutions, but existing indicators on SMKs signal quality Of the stipulated standards, only 38.4 percent were pack- problems. For example, SMK graduates register the high- aged in competency qualification packages (KKNI/Occu- est unemployment rate among graduates from different pational). The rest were packaged in competency cluster streams of formal education (figure S2.4). packages. Of the competency qualification packages, only Some mechanisms support supply, but they need to be 68 percent were used/implemented as a reference in devel- evaluated and expanded to guarantee impact. For exam- oping competency-based (PBK) programs. Their use/imple- ple, MoF issued a tax levy through Regulation No. 128/2019 mentation as a reference in the development of a competency on internships and work training. This regulation provides certification scheme was a bit more advanced, at 73.7 percent. the basis for tax deductions of up to 200 percent for com- TVET institutions­ —­including SMKs, polytechnics, and panies supporting workforce development programs be- LPKs and LKPs­ —­ face multiple challenges in implementing yond their own staff. SKKNIs, including curriculum definition, teacher capacity, in- frastructure gaps, and a lack of resources (World Bank 2020). Recommendation 10: Expand access to and improve the quality and relevance of TVET Nonformal training is patchy • Improve the availability and accuracy of information on Only 5 percent of the labor force reports having received labor market needs and guide the overall skills develop- on-the-job training (SAKERNAS 2019). Workers who did ment system with strong participation of the private sector. receive training are mostly employed in the financial sec- • Expand TVET to meet rising demand. tor and the public service. Firms in Indonesia offer fewer • Balance expansion with robust accountability mechanisms. Technical and vocational education and training  •  115 SPOTLIGHT 2 FIGURE S2.3 Share of firms who report offering formal training opportunities for their employees Indonesia East Asia and Paci c World Large (100+) Medium (20–99) Small (5–19) Nonexporters Exporters Foreign Domestic 0 20 40 60 80 Share of rms providing formal training Source: World Bank, Enterprise Surveys 2009, https://www.enterprisesurveys.org/en/data. FIGURE S2.4 Unemployment rates by education type and level Unemployment rate (percent) 10 8 6 4 2 0 Primary Junior General Vocational Academy/ University school high school high school high school diploma Source: 2019 data, Badan Pusat Statistik, Survei Angkatan Kerja Nasional (SAKERNAS). What can be changed or improved? follow international good practice, and adapt itself to- • Establish a governance structure to guide the overall ward labor market changes linked to Industry 4.0. skills development system with strong participation of • Establish a reliable, timely, and easily accessible labor the private sector. This structure should set priorities in market information system through the strengthening of terms of labor market needs and future expectations, MoM’s Manpower Information System (Sistem Informasi 116  •  The Promise of Education in Indonesia Ketenagakerjaan, SISNAKER) to identify labor market evolution of labor demand and supply, and also to pro- needs for use by training institutions, students, employ- vide information to job-seekers­ —­ including SMK and ers and job-seekers. The labor market information sys- polytechnics graduates­—­on occupations. tem could build on the existing job-matching platform • MoEC can expand the revitalization of the SMK pro- (Ayokitakerja) to help guide existing workers toward gram subject to an evaluation of current results. MoEC growing or higher paying sectors based on skills re- can continue consolidating the supply of SMK, merging quired and training possibilities by occupation. ones with limited capacity with those with higher ca- • Revitalize the development and use of the competency pacity. MoEC can continue and evaluate programs to frameworks, ensuring that they are used as a dynamic revitalize polytechnics, as MoM can do for BLKs. MoEC mechanism for private sector participation in this pro- can strengthen the capacity of the Technology Transfer cess for all occupation levels of the IQF. Competency Office. frameworks can benefit from those already defined in • MoF can establish direct financing to accreditation agen- the context of ASEAN. cies of universities and TVET institutions to assure the • Ensure that TVET institutions have the right infrastruc- independence and capacity to undertake accreditation. ture and teachers to deliver the competency frame- • MoEC can increase the internationalization of the higher works. Mechanisms to share resources among institu- education system by allowing greater freedom for for- tions should be explored to maximize their use. eign higher education institutions to provide services to • Recognize skills by established and reliable certifica- Indonesian students across the country. tion and accreditation systems. This means improving the protocol and instruments used in the accreditation References process, having the results audited by an external party, SAKERNAS (Survei Angkatan Kerja Nasional). Badan Pusat Statistik. balancing expansion of TVET with robust accountability MoM (Ministry of Manpower ). 2020. Pusdatin (retrieved August 21, mechanisms, and measuring accountability through ac- 2020). https://pusdatin.kemkes.go.id/. creditation and performance-based funding. MoEC. 2019. (Ministry of Education and Culture). Higher Education • Evaluate current mechanisms to support the expansion Statistics Academic Year of 2019/2020. Jakarta: MoEC. of TVET, such as the current tax levy, to ensure adequate World Bank. 2018. Indonesia Economic Quarterly: Learning More, use of public resources. Growing Faster. June. Jakarta: World Bank. https://openknowl- edge.worldbank.org/handle/10986/29921. What are the options to implement this change? ———. 2020. Doing Business 2020. Comparing Business Regula- • The Government of Indonesia can establish a Skills De- tions in 190 Economies. https://openknowledge.worldbank.org/ velopment Council with strong participation of the pri- bitstream/handle/10986/32436/9781464814402.pdf. vate sector to oversee overall skill development. The WTTC (World Travel and Tourism Council). 2015. Indonesia: How council would comprise the coordinating ministries such does Travel & Tourism compare to other sectors? https://www. as BAPPENAS and the ministries traditionally in charge wttc.org/-/media/files/reports/benchmark-reports/country of skill provision, including MoEC, the Ministry of Man- -reports-2015/indonesia--benchmarking-report-2015.pdf. power (MoM), and MoRA­ —­as well as line ministries with training facilities, such as the Ministry of Industry, the Government laws and regulations Ministry of Transportation, and the Ministry of Tourism. MoF Regulation No. 128/2019 on Tax Levy on Internships and Work • Expand the features and use of SISNAKER for an im- Training. https://jdih.kemenkeu.go.id/fullText/2019/128~PMK.010 proved labor market information system to monitor the ~2019Per.pdf. Technical and vocational education and training  •  117 CHAPTER 6 Tertiary education—high expectations, average performance T he Government of Indonesia has high am- their strategies and manage their resources, and bitions for tertiary education, essential to that competition can, in the long term, contribute boost the nation’s human capital and eco- to higher performance of the tertiary education sys- nomic growth through increased productivity tem as a whole. and competitiveness. The tertiary education sec- Today, the performance of the Indonesian ter- tor is expected to contribute both highly trained tiary education system is significantly below ex- people­ —­ engineers, scientists, technicians, doc- pectations. The supply of places is insufficient to tors, teachers, and so on­—­and relevant research to meet the demand for tertiary education, and there drive innovation throughout the economy. are serious disparities in access and achievement. The Ministry of Education and Culture’s (MoEC) The quality and relevance of existing programs new policies aim at encouraging universities to in- leave much to be desired, and the system’s contri- troduce innovative curricular and pedagogical bution in transferring relevant research and tech- practices, strengthening quality assurance at the nology to the broader economy is low. national and institutional levels, modernizing gov- ernance and management through higher levels Increasing access and improving equity of autonomy and accountability, and adopting a Indonesia has more than doubled the gross enroll- sustainable financing strategy. Movement in this ment rate in tertiary education over the last eigh- direction was initiated in January 2020, when the teen years, which is an important accomplishment. ministry announced the Freedom to Learn–Free- The gross enrollment rate in tertiary has increased dom Campus policy, which gives accredited high- from 14.9 in 2000 to 36.3 in 2018 (UNESCO er education institutions (both public and private) 2000–18). Despite this rapid enrollment growth the right to open a new program without prior ap- in the past two decades, Indonesia’s tertiary edu- proval from the ministry. The new policy also gives cation coverage lags behind many of its regional students the right to take courses outside of their neighbors (figure 6.1). Furthermore, the country formal program of study; spells out measures to has not done enough to address disparities in ac- strengthen the national accreditation system, open- cess and success for underrepresented groups, ing the door for international accreditation; and especially low-income students, and to reduce proposes to grant much more autonomy to higher the rural–urban gap, as well as the geographical education institutions. The underlying philosophy gap between the western and eastern parts of the of the new administration appears to be that tertia- country. More than 70  percent of those enrolled ry education institutions will achieve better results belong to the richest income quintile of Indonesia’s if they have more freedom and flexibility to design population, while students from the poorest three FIGURE 6.1 Gross enrollment rate in tertiary education Percent 2000 2010 2018 100 80 60 40 20 0 a R m es a a nd na n lia . ep di si si pa PD na in go hi la ne ay ,R bo Ja pp C ai et o on al do ea am La Vi ili M M In r Ph Ko C Source: UNESCO Institute for Statistics (2000–18). Tertiary education—high expectations, low performance  •  119 TABLE 6.1 Distribution of tertiary education enrollment and institutions, 2012 and 2018 2012 2018 2012–18 increase Type of institution Institutions Enrollment Percent Institutions Enrollment Percent (percent) Public universities 51 1,258,945 20.4 62 1,651,352 21.4 31.2 Open University 1 399,751 6.5 1 588,824 7.6 47.3 Public institutes/schools 8 76,806 1.2 12 94,579 1.2 23.1 Public community colleges — — — 4 887 0.0 — Public polytechnics 36 76,925 1.2 43 156,461 2.0 103.4 Public Islamic universities 47 220,758 3.6 65 502,879 6.5 127.8 Total public 143 2,033,185 33.0 187 2,994,982 38.8 47.3 Private universities 424 2,124,758 34.4 500 2,701,392 35.0 27.1 Private colleges 51 178,936 2.9 79 189,397 2.5 5.8 Schools of higher learning 1,383 1,265,532 20.5 1,449 1,251,226 16.2 –1.1 Private academies 1,099 355,694 5.8 973 226,235 2.9 –36.4 Private community colleges — — — 14 950 0.0 Private polytechnics 136 84,796 1.4 156 89,821 1.2 5.9 Private Islamic universities 375 127,307 2.1 714 255,416 3.3 100.6 Total private 3,468 4,137,023 67.0 3,885 4,714,437 61.2 14.0 Total 3,611 6,170,208 100.0 4,072 7,709,419 100.0 24.9 Source: PDDIKTI (Pangkalan Data Pendidikan Tinggi), Database of Higher Education, Ministry of Education and Culture. Note: Public universities include the Open University for institutions and student enrollment. In this table, the author separates the Open University and public universities. percent of university quintiles make up only 10  despite its popularity for providing distance educa- graduates. tion, still accounts for a very small share of overall enrollment, less than 10 percent. Rapidly growing demand for tertiary education For equity, the 2012 Higher Education Law stip- Table 6.1 presents the distribution of enrollment ulates the obligation for the government to put and institutions in the Indonesian tertiary educa- in place concrete equity objectives and measures tion system and their evolution over the past six to reach disadvantaged populations. The over- years. all target is to reach 20 percent of students from The data reveal several features of the Indo- the lowest income quintile­ —­ very far from the cur- nesian tertiary education system. First, there is a rent 11  percent (BPS 2018)102­—­with appropriate substantial degree of institutional differentiation financial aid and non-monetary equity promotion overall, since the universities­—­ public and private measures. Low-income students are eligible for together­—­ enroll only 57.2 percent of the total stu- Directorate General for Higher Education (DGHE) dent population, with other types of institutions grants and needs-based scholarships through the enrolling the rest. Within the public subsector, Bidikmisi scholarship program, which encourages universities account for almost 70 percent of total high school students to pursue tertiary studies. In enrollment, which indicates that there is room for 2017, 339,348 students received Bidikmisi schol- more institutional differentiation through the devel- arships to complete their undergraduate studies. opment of public non-university institutions such as Some of the scholarships are earmarked for affir- polytechnics and community colleges. Second, the mative action on behalf of specific target groups, main thrust of expansion in the past six years has including students with disabilities, economically been to increase enrollment in public institutions, disadvantaged groups, and students from remote contrary to what happened in previous times when areas in eastern Indonesia. Additional financial aid the government relied on the private sector to drive is available from private, philanthropic, and re- enrollment growth. But the new strategy may not gional government schemes. be financially sustainable unless the universities are To a large extent, the low proportion of low- allowed to charge substantial tuition fees, which is income students­ —­ 2 percent for the lowest and not the case today and would only increase many of 5 percent for the second lowest income quintiles­ the existing disparities. Third, the Open University, —­ reflects a pipeline problem. Many students from 120  •  The Promise of Education in Indonesia disadvantaged groups do not make it through sec- TABLE 6.2 Planned increase in the gross enrollment ondary school. And children from the poorest fam- rate (percent) ilies that do graduate from secondary education, tend to enroll in higher-cost, lower-quality tertiary 2015–19 2020–24 2045 2000 2015 2018 plan plan target education institutions. The reason is that they are often less well prepared academically, may lack in- 14.9 29.2 34.6 36.7 43 60 formation about careers and academic programs, Source: MoRTHE and BPS. and so find it more difficult to find a place in the best public universities. student loans for their students. At present, MoRA Meeting demand equitably provides almost no financial support for private A succession of tertiary education reforms since tertiary education institutions under its jurisdic- the mid-1990s has led to a threefold increase in tion, losing an opportunity to encourage competi- enrollment, making today’s generation the most tion between public and private institutions. educated in the country’s history. As reflected in The second line of action could be to strength- the government’s ambitious plans, demand for en and expand the non-university public subsec- tertiary education is expected to continue growing tor. Today, universities represent 68.6  percent of strongly, given the rising incomes, the needs of the enrollment within the public subsector. In addition labor market for more skilled workers, and the in- to protecting the resource base of the public uni- creasing number of young people completing sec- versities by absorbing a significant proportion of ondary education (table 6.2). secondary school graduates, non-university ter- It is unlikely, however, that Indonesia’s tertia- tiary institutions can contribute by offering training ry education system, with its present institutional opportunities that respond flexibly to labor market configuration and financing model, could easily demand. The government could set up a network accommodate the rapidly growing number of high of community colleges in addition to strengthen- school graduates eager to continue their stud- ing the existing technical colleges and colleges of ies. And a substantial part of the unmet demand education. Community colleges already occupy an comes from outside Java and Bali. Absorbing the important place within differentiated systems, as in rapid growth of enrollment can best be achieved Canada, Republic of Korea, and the United States. by increasing institutional differentiation, rather The third pillar of the government’s expansion than following the traditional mode of building strategy could be to invest substantially in the ex- and funding new public universities with budget- pansion of the Indonesian Open University, which ary resources. From a public resource perspec- could offer good-quality learning opportunities to tive, spreading enrollment growth across a vari- larger numbers of young Indonesians­ —­following ety of tertiary education institutions and delivery Thailand, whose two Open Universities absorb modalities­ —­public and private, non-university, close to 40 percent of the overall tertiary student and online­ —­rather than simply expanding the population. To ensure that the Open University public university subsector­ —­can be an effective operates as a leading-edge online institution, its strategy for achieving greater enrollment targets in leadership team could learn from the experiences a financially sustainable manner. and business models of other successful online in- Indonesia already has a long tradition of private stitutions, such as Western Governors University involvement in tertiary education. But as seen ear- in the United States, which pioneered a compe- lier, after several decades of increasing enrollment tency-based curriculum in the late 1990s. The cur- in private institutions, the trend in recent years has rent instructional delivery mode of the Indonesia been to grow enrollment mainly by expanding the Open University is distance learning where stu- public subsector. If the government wants to pro- dents conduct self-learning using printed materi- mote further growth of private tertiary education als. Face-to-face tutorials are available to support as a part of its tertiary education development the self-learning. The university can improve the strategy, it should first make sure that private pro- effectiveness of its instructional delivery mode by viders do not face regulatory hurdles that con- increasing opportunities for students to commu- strain establishing and operating good quality pri- nicate and consult with tutors, mentors, professor, vate tertiary education institutions (box 6.1). In the and experts through online platforms to discuss medium term, Indonesia could consider offering learning difficulties as well as other academic and financial incentives to private sector institutions administrative matters. that meet high quality standards. This should in- To ensure that expanding enrollment fully bene- clude giving these institutions access to subsidized fits students from underrepresented groups, MoEC Tertiary education—high expectations, low performance  •  121 Removing regulatory barriers for private tertiary education BOX 6.1 institutions To assess whether a country has favorable legis- who are enrolled in public institutions? In In- lation and regulations for the private higher edu- donesia, private university students became cation sector, it is useful to consider five aspects: eligible to receive Bidikmsi scholarship in • Barriers to entry. Are there any rules pre- 2013 (Bidikmisi began in 2010). Loans tend to cluding the entry of private providers, in- be provided by commercial banks and private cluding foreign ones? Until very recently, for- foundations, and students at private institu- eign private providers were not authorized in tions are eligible, though reliance on loans by Indonesia. both private and public higher education stu- • Institutional autonomy. Does the regulatory dents tends to be limited because the require- body allow full institutional autonomy (organi- ments are rarely met by students. zational, academic, financial, and HR) for pri- • Transparent quality assurance. Does the vate tertiary education institutions? In Indo- country have clear evaluation and accredita- nesia, private institutions have full institutional tion criteria and procedures that apply equally autonomy. to all tertiary education institutions? In Indo- • Eligibility for government subsidies. Can pri- nesia, BAN–PT, a semi-autonomous regula- vate institutions benefit from the incentives or tory body, is responsible for establishing and subsidies available to public institutions, such implementing accreditation with the same cri- as tax exemptions, land leases, and salaries of teria for all institutions. academics? In Indonesia, eligible private ter- Good practices for licensing tertiary educa- tiary receive BOS (university operational as- tion institutions include: sistance) to conduct research and community • Clear criteria and timelines applied consis- activities. tently and diligently by the regulatory bodies. • Eligibility of private institution students for • A small number of requirements in the licens- state scholarships or loans. Can students from ing phase as opposed to the accreditation private institutions benefit from government stage, which should legitimately combine a financial aid available to students who share strong self-evaluation report and a thorough the same socioeconomic characteristics but external evaluation by independent peers. Source: Authors’ elaboration. should step up its equity promotion efforts to remains low in relation to global quality standards translate into actual results the principles and tar- and the country’s own aspirations. So far, only gets contained in the 2012 Higher Education Law. about a third of all tertiary education institutions This would involve combining financial support in and only 10 percent of the study programs have the form of scholarships and loans to eliminate been accredited. monetary barriers. It would also involve non-mon- Of more than 4,000 Indonesian universities, etary measures, such as outreach and guidance to only five appear in the international rankings­ —­ promising senior secondary school students, es- Gadjah Mada University ranked 254 in the world pecially from rural and remote regions and poor according to the 2020 QS World University rank- families, and affirmative action to encourage en- ings, the University of Indonesia ranked 305, the rollment and special support­ —­ mentoring, coun- Institute of Technology Bandung ranked 313, Air- —­ selling, and accessible facilities­ for students with langga University in the 521–530 range, and the disabilities to ensure their retention and comple- Bogor Agricultural Institute in the 531–540 range. tion in the system. Such efforts could help students All of the ranked universities are public institutions, from disadvantaged groups overcome psychologi- illustrating the fact that quality challenges are cal, motivational, and academic challenges. most severe in the large private sector. As discussed in Spotlight 2, without a com- Improving quality and relevance prehensive labor market observatory and regular Although many tertiary institutions have made tracer studies by tertiary education institutions, it progress in the quality of their programs in the past is difficult to have objective data on the relevance decade, the overall quality of tertiary education of existing programs. However, the Ministry of 122  •  The Promise of Education in Indonesia Labor surveys of employers suggest a serious mis- culture is still lacking at both national and institu- match between the profile of graduates and the tional levels. Many institutions that go through the needs of firms, as revealed by the latest available accreditation process do it more often for the sake results (2018). Employers report that graduates of formally meeting the standards rather than out are lacking industrial training and key competen- of a genuine commitment to quality enhancement. cies such as communication (including poor com- And a large number of private institutions are too mand of English), creativity, critical thinking, and small to deliver education services effectively and problem-solving skills. Diploma graduates are —­ efficiently­ their average size was fewer than 400 performing even less well than university gradu- students in 2018. ates in this sense. Many graduates do not find jobs A 2008 World Bank survey showed that two- in their area of professional competence. For ex- thirds of employers complained about finding ample, 30.9 percent of workers with an academic qualified graduates for professional and manage- background in agriculture are working in the trade, ment positions. More than 50 percent of the em- finance, and real estate sectors (SAKERNAS 2018). ployed population in 2015 was underqualified for their position. A 2018 McKinsey study estimated Improving quality that demand for semiskilled and skilled workers The government of Indonesia has done much to would rise to 113  million by 2030, stressing the improve the quality of tertiary education institu- danger of skill shortages and mismatches for fu- tions. First, it set up four independent accredita- ture economic growth. The Boston Consulting tion agencies (called LAM­ —­Lembaga Akreditasi Group (2018) reported that due to low standards Mandiri) to complement the work of the national and low enrollment in tertiary education, Indone- accreditation body (BAN–PT): LAM for Natural sian companies will struggle to fill almost half their Sciences and Formal Sciences; LAM for Econom- entry-level positions by 2020. ics, Management, Business, and Accounting; LAM BAN–PT does not assess institutions for ac- for Education; and the Indonesia Accreditation creditation directly, but instead relies on part- Board for Engineering Education (IABEE). Sec- nerships with the tertiary education institutions ond, it established the Indonesia Cyber Education themselves as well as an online self-assessment Institute, which was attached to MoRTHE before system. BAN–PT’s own capacity has not been ex- being transferred to the Ministry of Education and ternally assessed. So far, only 42.6 percent of the Culture (MoEC), with the mission to monitor and institutions operating under the authority of MoEC regulate online education. Third, it defined 24 Na- and 81.5  percent of study programs have been tional Standards of Higher Education (SN Dikti), accredited. The situation is even worse for the Is- grouped into three sets of standards for each of lamic institutions under MoRA. A mere 8.6 percent the main three functions of universities: teaching, of institutions and 20 percent of study programs research, and community engagement. Fourth, in Islamic higher education institutions have been it has provided funding to the country’s flagship accredited. It was estimated that in 2018, close to universities to specifically help weaker institutions prop up their quality standards. The Ministry is in the process of organizing an award system to rec- ognize good performers among tertiary education institutions. But many tertiary institutions continue to face serious issues that undermine the quality and relevance of their programs. They lack qualified academics­ —­ only 16 percent of lecturers national- ly hold a PhD, half the percentage found, for ex- ample, in Malaysian universities. Their instructors mostly rely on traditional pedagogical methods with heavy emphasis on lectures and rote learn- ing. Very few institutions cultivate close linkages with employers, resulting in an outdated curric- ulum. Even though some institutions organize at least one internship for their students during the course of their studies, only about 5 percent of ter- tiary institutions conduct regular tracer studies to find out what happens to their graduates. A quality Tertiary education—high expectations, low performance  •  123 2,000 institutions operated in Indonesia without provinces and less experienced institutions else- accreditation. Assuming that no new institutions where, rather than lowering accreditation stan- are created, this implies that it would take more dards for the latter. than seven years at the present rate of accredita- In addition to strengthening the official qual- tion, to accredit the entire tertiary education sys- ity assurance mechanisms, MoEC could offer in- tem, that they are all ready to be accredited, and centives for establishing or consolidating internal that they all pass the accreditation process. In- quality assurance units in all tertiary education ternal quality assurance systems are still in their institutions to develop a genuine and effective infancy stage. Institutions that have them tend to quality assurance culture. Strengthening quality view them as a compliance mechanism rather than assurance should be accompanied by systemwide a quality enhancement tool. capacity-building that would touch all subsectors Indonesian universities are also characterized and levels of the tertiary education system: na- by low internationalization. Even though gov- tional, institutional, program, and administrative. ernment policies support internationalization in Capacity-building can be through training, intern- theory­ —­notably through seminars and workshops ing, twinning, shadowing, mentoring, workshops, on internationalization and help for establishing learning by doing, and continually reflecting on international partnerships­ —­tertiary education in- current practices. The target audience should in- stitutions in general lack formal structures promot- clude policymakers, external quality assurance ing internationalization. Staff and student mobility providers, institutional leaders, faculty members, is impeded due to an inadequate legal framework, and middle and low-level management and ad- language barriers, lack of qualified human resourc- ministrative staff. es, financial constraints, and fear of foreign influ- ence, among others. Unlike what happens in Ma- Increasing relevance laysia or Vietnam, foreign institutions, until very recently, were prohibited from operating or open- Links with industry. Developing close links with in- ing a branch campus in Indonesia. dustry is one of the most effective ways of increas- Indonesia could implement the following pol- ing the relevance of tertiary education programs. icies to enhance the quality and relevance of its Indonesian universities could use internships for tertiary education system: talent development undergraduate students, in-company placements for academic staff, innovations in curriculum and of research students and academics, and prac- pedagogy, internationalization, close university-­ titioners from industry as visiting lecturers and industry linkages, and strengthened quality assur- members of curriculum development committees. ance systems (table 6.3). Incorporating training for entrepreneurship into regular university programs can also help bring Quality assurance systems. Considering the large them closer to the productive sectors. A recent number of low-quality institutions in Indonesia report prepared by the European University As- today, especially in the private sector, the govern- sociation explains that the keys to promoting en- ment should carefully monitor and possibly close trepreneurship at universities are collaboration, down substandard institutions and programs, as knowledge sharing, and allowing students to show it did in 2018 when 237 institutions under MoEC initiative (Reichert 2019). were merged with other higher institutions. In parallel, the government should consolidate ex- Curriculum design and pedagogy. Policies and in- isting quality assurance mechanisms and align centives can encourage tertiary education institu- their delivery capacity with the pace of creating tions to adopt innovative approaches to curriculum new institutions and programs. Accreditation design and pedagogy, taking advantage of new should focus more on processes and outcomes technologies (AI-based simulations, virtual reali- than on inputs. The same standards should be ap- ty, 3-D printing). The conventional content-based plied throughout the country but adapted to the curriculum can be replaced by novel approach- specific nature and mission of the various types es such as problem-based learning; cooperative of institutions (for example, research-­ intensive programs in partnership with industry, and com- universities, teaching universities, teacher train- petency-based programs; and multidisciplinary ing colleges, technical colleges, and online pro- programs and research-based learning paths. grams). To build the capacity of the institutions in Paradigm shifts in curricula and pedagogy require the poorer regions and provinces, MoEC should substantial innovations in the assessment system support capacity-building partnerships between to support student-centered and outcome-based stronger institutions in the more developed education. 124  •  The Promise of Education in Indonesia Internationalization. Indonesian universities could incorporate appropriately-defined “effective teach- enhance internationalization by redesigning cur- ing” in the evaluation and promotion criteria for ricula in academic programs in partnership with faculty, on par with excellence in research. foreign universities, increasing the number of To recruit the best-qualified applicants for ac- courses in English in order to improve the mastery ademic staff, universities should move away from of English by students and faculty, seek interna- one-step reviews of standardized applications to a tional accreditation of selected programs, and im- staged process that includes written statements, plement student and faculty exchange programs portfolios, and interviews to align the trajectory with foreign universities. The government is in the and expectation of applicants with the values, in- process of allowing foreign providers to work in the stitutional culture, and strategic orientation of the country, which could give a boost to international- recruiting university. To assess the qualified appli- ization, as happened in Malaysia. cants thoroughly, the hiring unit should organize a research talk, a teaching talk, and a conversa- Talent development. In the medium and long terms, tion with students. Finally, radical changes in the establishing a good talent development system employment status of faculty members can help would require revamping graduate schools to at- develop an academic performance culture that tract high-quality domestic and international PhD rewards results. For example, Finland recently students and produce a good pipeline of doctor- transitioned from a civil service status for all ac- al and post-doctoral students. In the shorter term, ademic and administrative staff to having facul- research-intensive universities could introduce a ty and administrative staff be employees of their tenure track for promising young researchers. To university. ensure that universities focus on leading-edge re- search and high-quality teaching, Indonesia could Strengthening research and consider, following the examples of Australia, Tai- technology transfer wan, and the United Kingdom, a “teaching excel- Comparing Indonesia with its regional neighbors lence” initiative, which would offer incentives to reveals poor performance in research output and TABLE 6.3 Principal dimensions and instruments of accountability Effective Quality Academic Fiscal use of and Instrument integrity integrity resources relevance Innovation Equity University instruments Strategic plan ✔ ✔ ✔ Key performance indicators /scorecards ✔ ✔ ✔ ✔ Budget ✔ Financial audit ✔ ✔ Student satisfaction surveys ✔ ✔ ✔ Graduate employment surveys ✔ Employer and alumni surveys ✔ ✔ Assessment of learning outcomes added value ✔ ✔ Annual report (to parliament and the public) ✔ ✔ ✔ ✔ Government instruments Licensing ✔ ✔ Accreditation/academic audit/evaluation ✔ ✔ ✔ ✔ Funding formula ✔ ✔ ✔ ✔ Performance contracts ✔ ✔ ✔ ✔ Scholarships/student loans/vouchers ✔ ✔ ✔ Student engagement surveys ✔ ✔ ✔ Labor market observatory ✔ Assessment of learning outcomes ✔ ✔ Rankings/benchmarking ✔ ✔ Source: Authors’ elaboration. Tertiary education—high expectations, low performance  •  125 and innovation capacity and output, Indonesia and TABLE 6.4 Research benchmarking countries Patents Citable documents per per million Global Innovation million population h-index population Index rank Countries 2010 2017 2017 2017 2008 2019 Australia 2,741 3,352 848 251 22 22 China 249 356 712 233 37 14 Denmark 2,975 4,179 662 1,084 8 7 Finland 2,777 3,225 571 1,451 13 6 France 1,510 1,564 1,023 709 19 16 Germany 1,664 1,853 1,131 1,206 2 9 Indonesia 10 71 196 1.7 49 85 Japan 949 898 920 2,282 9 15 Malaysia 547 936 249 30 25 35 Netherlands 2,644 2,993 893 1,233 10 4 Philippines 13 28 205 1.4 63 54 Poland 777 1,096 479 114 56 39 Korea, Rep. 1192 1,491 576 2,341 6 11 Singapore 2,831 3,388 492 548 5 8 Switzerland 4,092 4,813 866 3,065 7 1 Thailand 140 212 289 3.2 44 43 United Kingdom 2,223 2,468 1,281 362 4 5 Vietnam 23 63 183 1.2 64 42 Source: SCImago for research output, h-Index, World Intellectual Property Indicators 2017 for patents, Gender Inequality Index 2008 and 2019. Note: Main challenges: The determinants of the present performance. technology transfer (table 6.4). Even though the university graduate programs are underdeveloped quantity of scientific publications increased sub- in faculty, financing, and other scientific resources stantially from 2008 to 2019, Indonesia’s research such as science labs, equipment, and technology output remains way below that of China, Malaysia, platforms. or Thailand. Indonesia’s h-index, a proxy of quality For investment, Indonesia spends only 0.1 per- and impact of scientific publications, is also low. It is cent of GDP on gross expenditure for R&D (GERD) no surprise, therefore, to see that the competitive- as a percentage of total GDP, far below China, Ma- ness of the Indonesian economy has deteriorated. laysia, Thailand, and Vietnam (figure 6.2). While all Asian middle- and low-income nations in University research is severely underfunded. the benchmarking table improved their position in Further, the limited resources available for re- the Global Innovation Index over the past 10 years, search and technology transfer in universities are Indonesia stands out as the only country with a sig- spread too thin, are not allocated on the basis of nificantly lower rank (85, down from 49). performance, and may not always be aligned with The low research and technology transfer ob- national and local priorities. served in Indonesia is largely associated with limit- Another limiting factor is the low level of uni- ed human resource capacity and insufficient fund- versity–industry and international collaborations ing. Most Indonesian universities lack the talent in Indonesia, the result of low demand from the and the policies and incentives to attract and re- private sector and insufficient industry-relevant tain high-caliber researchers. In 2016, Indonesia’s research at the universities. A related challenge is researcher ratio was only 1,071 per million popula- that Indonesian universities do not have many links tion, far below Malaysia and Singapore, with 2,590 with leading-edge global research, such as world- and 7,000 respectively. Despite an impressive in- class universities and their world-class faculty, crease in the number of PhD degree graduates in which would allow them to participate in collabo- the past two decades, Indonesia is still missing a rative research programs and internationalize their critical mass of high-quality research talent. Many PhD programs. 126  •  The Promise of Education in Indonesia FIGURE 6.2 GDP on gross expenditure for R&D as a percentage of GDP, 2015 Percent of GDP 5 4 3 2 1 0 . nd k d y ce na s e ia m a d nd m es a s s ep nd ie ie an ar or si si an an al do na in an hi la la tr tr ay ne ,R m ap tr m rla nl l pp C un un er Po ai et ng Fr al en us do er ea Fi ng he it z Vi ili M co co Ki A G D In r Ph Si et Sw Ko d e e N m m te co co ni U in in e- e- dl dl id id -m M er w Lo Source: Global Innovation Index. For Indonesia to reap the potential of this sec- consider funding postdoctoral schemes, emulat- tor, it needs to accelerate efforts to form a critical ing government programs in other parts of the mass of high-level researchers. In the past three world. Accredited universities could hire promising decades, Brazil’s CAPES Foundation, operating young researchers paid by government for up to as an arm of the Federal Ministry of Education, two years, at no or little cost to the receiving insti- has coordinated the country’s interventions to im- tution, as Pakistan did in the 2000s. prove the quality of Brazil’s academic staff through grants and rigorous evaluation programs. The gov- Modernizing governance and ernment stepped up its efforts through its Science management Without Frontiers initiative, which financed 25,000 One of the key dimensions of good governance at annual scholarships for overseas studies at the the national level is the ability of the government to Masters and PhD levels in highly ranked universi- steer all tertiary education institutions in a coordi- ties in OECD countries. Box 6.2 illustrates how a nated manner. However, the system is divided into recent World Bank project has supported efforts three subsectors since the recent dissolution of the to strengthen research institutes in Indonesia. Ministry of Research, Technology and Higher Edu- One key decision for the national science and cation (MoRTHE). Responsibility for secular higher technology strategy is how many research-inten- education has gone to the Ministry of Education sive universities the country should have and can and Culture (MoEC). The Ministry of Religious Af- afford. This could be done by simply selecting a fairs (MoRA) is responsible for managing religious number of universities, as Thailand did a few years tertiary education institutions. And other line min- ago, to focus on research. Or it could be based on istries supervise professional tertiary institutions. a competitive exercise (Excellence Initiative), fol- The governance system is very centralized for lowing China, France, Germany, Japan, and Re- human resources management and very loose public of Korea, to invite interested universities to for quality assurance. The academic and admin- design their upgrading strategy to become world- istrative staff of public universities are all civil ser- class institutions at the leading edge of research. vants, whose pay and administrative status are After selection, the government would need to tightly controlled by the Ministry of Education, the commit adequate funding over the long run. Ministry of State Apparatus and Bureaucracy Re- To facilitate inserting young doctoral graduates form, and the Ministry of Finance. As discussed into dynamic research teams, Indonesia could also earlier, accreditation requirements have not been Tertiary education—high expectations, low performance  •  127 BOX 6.2 Supporting research institutions The Research and Innovation in Science and The project strengthened the coordination of Technology (RISET) Project (US$80 million), exe- public research funding among public research cuted by the Ministry of Research and Technol- agencies and research funding providers. It devel- ogy, supports the government in improving the oped a technology readiness level training mod- human resource capacity of science and technol- ule, guidelines on the methodology of unit cost ogy institutions and strengthening technology calculations of output-based research activities transfer, institutional functioning, and data man- related to renewable energy, and advanced the agement of public research agencies (LPNKs). research and development of the Monevrisbang The project started in June 2013 and will end in online system for monitoring and evaluation. December 2020. Of the 457 researchers who have gone on to RISET piloted and institutionalized the con- study abroad, 307 have graduated­ —­228 Masters cept of a science and technology park for agri- and 79 PhDs­ —­ and returned to work in their re- culture in five parks as well as at four technol- spective LPNKs. In addition, 1,982 participants ogy transfer offices in non-ministerial public attended various national and international train- research institutes. Results of these pilots are ing programs and professional courses linked to helping implement a commercial model for the LPNK flagships, which supports the national LPNK products. priorities in science, technology, and innovation. Source: Brief on RISET. enforced systematically, contributing to serious to develop a transformational vision and a solid quality challenges. strategic plan to implement that vision. The gov- The 1996–2005 Higher Education Strategy ernment should consider the following policy di- brought a paradigm shift in tertiary education, set- rections to modernize its governance setup and ting the foundation for greater autonomy, trans- processes for tertiary education development: parency, and accountability for public universities. • Articulate an ambitious, comprehensive vision After initial controversy over the advantages and for the future of tertiary education and trans- drawbacks of granting more autonomy to tertiary late it into an actionable strategic plan with institutions, the 12/2012 Higher Education Act pro- clear milestones and sufficient resources for vided, in theory, increased autonomy over institu- implementation. tional organization, finance (except setting tuition • Assign the overall responsibility for tertiary ed- fees), student affairs, staffing, and management of ucation to one single department in charge of facilities and infrastructure. But the creation of new steering and coordinating the human develop- academic study programs remained tightly regu- ment strategy design and implementation. lated. Autonomy was expected to be a powerful • Outline the rules of engagement with a well-de- lever to develop a more efficient and effective ter- fined distinction between the responsibilities of tiary education system. However, the strong legacy the state and the rights and obligations of ter- of central control has limited the implementation tiary education institutions. of autonomy on the ground, particularly financial • Design and implement a comprehensive man- and staffing autonomy. For example, all promo- agement information system to monitor the tions are still controlled by MoEC, while inade- performance of the tertiary education system. quate institutional capacity to exercise autonomy In the past two decades, universities in many has contributed to incomplete implementation of OECD countries have converged in their structure the policy. For accountability to the public at large, and practice toward a stronger role for university apart from the partially implemented accreditation presidents and their leadership teams, while be- process, no other mechanism is in place to keep coming more autonomous and accountable (Field- society informed about institutional performance. en 2008, Salmi 2017). Indonesia should consider Efforts to improve the quality of teaching and moving toward giving more power to university learning and raise the research output in Indone- councils, appointing university leaders through a sian universities are unlikely to succeed without transparent selection process based on profes- modern governance structures and processes. sional criteria, and having clear rules of engage- Universities need more freedom and flexibility ment for increased autonomy and accountability. 128  •  The Promise of Education in Indonesia Role of university councils. Clear decision-making possible because of (a) existing robust digital in- responsibilities and accountabilities should be frastructure, (b) technical and pedagogical capac- granted to strengthened councils, which would ity and the know-how to make the timely shift to be responsible for appointing the university presi- effective online program development and deliv- dent, endorsing the strategic plan, and approving ery, and (c) the ability of all their students to fully the budget. International experience shows that, to participate in and benefit from this mode of de- function effectively, university councils should have livery. In the context of the likely evolution of the no more than 20 members, including a significant current pandemic and anticipated future external number­—­sometimes even the majority­— ­of inde- shocks including climate change, natural disasters pendent external members (Salmi 2017). In Ireland and others, the resilience of the Indonesian tertia- and the United Kingdom, the external members ry education system needs significant strengthen- are chosen by the council to avoid political inter- ing. An additional benefit is that it will afford insti- ference. Strengthened and empowered councils tutions the ability to extend their reach to remote should have the authority to appoint their head. areas and in doing so, become more inclusive. Table 6.5 summarizes the likely consequences Selection of university leaders. In recent years, a and possible mitigation measures that the Govern- few countries­—­ for example, Denmark and Finland­ ment of Indonesia and the tertiary education insti- —­ have transferred the responsibility to select tutions should consider together. university leaders to the university council. In this Of particular importance to implementing many new approach, the council conducts a competitive of these recommendations is the need for the In- search to appoint, on purely professional consider- donesian government to strengthen access to ations, the most suitable candidate from a pool of broadband for all tertiary education institutions candidates from within and outside the institution. and students. It is recommended that a minimum The new president could be a foreign national with of 100  Mbps–1  Gbps be available to all tertiary high qualifications and experience, as is the case education campuses, keeping in mind the expect- at Nanyang Technological University in Singapore, ed increases in data traffic and emergence of new KAUST in Saudi Arabia, and Nazarbayev Universi- applications between now and 2025. This involves ty in Kazakhstan. The Government of Indonesia has three complementary steps: encouraged a move in that direction, with a Kore- • Further strengthen IDNET, the country’s nation- an president recently appointed to lead the Asia al education and research network. It can act as Cyber University. a single point of coordination to reach all uni- versities in the country­—­ and to connect them Improve gender balance. While females enroll to international knowledge and digital resourc- in tertiary education at slightly higher rates than es. To achieve this goal, IDNET must focus on males (51.5  percent), they tend not to enroll in providing universal end-to-end service connec- STEM faculties (science, technology, math and tivity and not only on providing bandwidth to engineering). For example, the national represen- university sites. It may have to reassign staffing tation of female students in faculties of engineer- and borrow talents from universities in Indone- ing is only 25 percent (Higher Education Statistics sia to have the necessary technical capacity to 2019). To address these gaps, tertiary institutions implement these new responsibilities. Govern- and government should act to reduce gender-bar- ment support is needed to boost the broad- riers to entry and retention in STEM programs and band capacity of the network and ensure that academic professions, such as introducing schol- the price is affordable for all tertiary education arships or in-kind support for female students institutions. in specific STEM programs, providing grants for • Work with commercial internet providers to en- women’s research projects in STEM-related fields sure free or heavily-subsidized internet access at tertiary level, and revising HR policies and pro- for all students. The Ministry of Education and viding leadership training for female academics to Culture must take the lead in negotiating access improve recruitment and retention in senior aca- for all Indonesian universities to digital resourc- demic positions. es available in foreign institutions, institutes, and colleges. Improve system resilience from COVID–19 and • Complemented efforts to improve connec- beyond. The current pandemic has demonstrat- tivity through interventions that help tertiary ed that globally, resilient education systems have education institutions overcome challenges been able to respond quickly and positively by re- in connecting to adequate learning manage- verting to on-line delivery. Their success has been ment systems and videoconferencing facilities. Tertiary education—high expectations, low performance  •  129 TABLE 6.5 Matrix of COVID–19 effects and mitigating measures for tertiary education Effects Short-term­—­until August 2020 September 2020­—­June 2021 2021 and beyond Issues/ Staff members/students sick or dying New admission criteria/procedures Reduced public funding for higher challenges from virus education Reduced public funding for higher Temporary closures with no education Freeze on hiring of new staff alternative delivery Reduced or increased research Closure of institutions/programs due Temporary closures and switch to funding depending on field to student attrition/switching online education Closure of institutions/programs due Lower enrollment of students from Higher spending due to rapid to student attrition/switching under-represented groups investment in e-learning technology Higher dropout rates among low- Reduced number of international Financial/logistical difficulties for low- income students students income students More widespread use of technology- More widespread use of technology- Suspension of international mobility based delivery of courses/academic based delivery of courses/academic (academic staff and students) programs programs Lab- and field-based research on hold Reduced staffing and salaries or delayed (regular and PhD research) Greater need for academic and Suppression/modification of exam psychological counseling and graduation requirements Suspension of graduation ceremonies, scheduled conferences, and academic events Delays in renewal of leadership teams and/or university boards Mitigating Short-term response Medium-term recovery Long-term resilience measures Government Financial package for tertiary Financial package for tertiary Sustainable funding strategy for the policies education institutions education institutions tertiary education system Student loan repayment moratorium Strengthening of broadband access Shift to income-contingent loans (capacity and pricing), including Strengthening of broadband access Quality assurance supports online (capacity and pricing), including IDREN IDREN education on par with on-campus Training of academics in preparation education Training of academics in preparation and delivery of online education and delivery of online education Strengthening of broadband access Flexibility in quality assurance (capacity and pricing), including IDREN Additional research funding in requirements COVID–19 related areas Flexibility in quality assurance requirements Institutional Alternatives to face-to-face Increased alternatives to face-to-face Mainstreaming of innovative curricular policies instruction instruction and better curation of and pedagogical practices and next online content generation assessment modalities Capacity building for online education teaching and learning Capacity building for online education Mainstreaming of predictive analytics (instructors and digital infrastructure) and blended teaching and learning and AI to identify at-risk students (instructors and digital infrastructure) Identification of students without More systematic fund-raising laptop/tablet Alignment of assessment with Strategic planning includes risk innovative education practices Provision of devices for low-income assessment and mitigation students Increased reliance on predictive analytics and AI to identify at-risk Financial support for low-income students students Strengthened of academic and Identification of at-risk students psychological counseling/mentoring Strengthening of academic and services psychological counseling services Increased fund-raising efforts Adjustment of assessment Increased internationalization “at approaches and graduation home” requirements for this academic year Better preparation for risk assessment and mitigation (including through relevant research on lessons from previous epidemics) (continued) 130  •  The Promise of Education in Indonesia TABLE 6.5 Matrix of COVID–19 effects and mitigating measures for tertiary education (continued) Effects Short-term­—­until August 2020 September 2020­—­June 2021 2021 and beyond Support Donations in cash or kind (laptops, Donations Donations from firms tablets, protection masks) Free online platforms for universities Free online platforms for universities and other Free online platforms for universities and colleges and colleges organizations and colleges Free educational resources for Free educational resources for Free educational resources for universities and colleges universities and colleges universities and colleges Networks for strengthening of online Networks for strengthening of online Networks for strengthening of online education practices education practices education practices Source: Authors’ elaboration. Institutions should include an IT office staffed prepared by a credible private sector firm follow- with the right technical and managerial exper- ing international accounting standards, and an an- tise to manage and maintain the network and nual performance report showing progress against infrastructure and to offer support to faculty each university’s own strategic objectives and and students. Providing laptops or tablets to yearly plan, which can be presented to parliament students who have no computer access at home every year, as happens in the Canadian province of is equally important. Quebec. Institutional autonomy. To improve their perfor- Defining a sustainable financing mance, Indonesian tertiary education institutions strategy should have meaningful control over the main The financing of tertiary education suffers two factors affecting the quality and costs of their pro- major constraints. First, government spending on grams. Autonomy includes, among its many di- tertiary education in Indonesia is small. The Indo- mensions, the ability of each institution to set its nesian Constitution stipulates that a minimum of own admission requirements, determine the size of 20  percent of government budget must be allo- its student body, and establish new programs and cated to education, but tertiary education actually courses (academic autonomy). It also means the gets less than 5 percent of the total government ability to make structural changes to the config- spending on education despite the social returns uration of institutions (organizational autonomy). to tertiary education. This is equivalent to 0.4 per- Institutions must also have the ability to assess cent of gross domestic product (GDP), much lower tuition fees, establish eligibility criteria for finan- than the 1.7 percent in Malaysia and 0.7 percent in cial assistance to needy students, and reallocate Thailand. Public spending is estimated to repre- resources internally according to self-determined sent only 25 percent of total spending on tertiary and transparent criteria (financial autonomy). education, compared with the OECD average of For staffing autonomy, Indonesia can consider about 80  percent and Thailand’s 70  percent. The two options to introduce performance elements bulk of public funding goes to pay salaries directly in the management of academics and research- to public tertiary education staff. ers, which would help the universities establish Public funding to help expand access to tertia- themselves as dynamic institutions of teaching, ry education is limited. It is estimated that financial research, and technology transfer. The first would aid provided to students enrolled in tertiary educa- be to maintain the civil service status of academic tion institutions covers only 3 percent of the total staff but allow universities to establish benefits and costs to attend. There is no student loan scheme rewards to recognize the actual performance and specifically to serve low-income students. contributions of individual staff. The second would Second, public funding does not incentivize in- be to eliminate the civil service status of academic stitutions to improve performance. The resources staff and make each university the employer­ —­ and that the Indonesian public universities receive from assessor­ —­ of its academic and administrative staff. government are not allocated on the basis of an Increased institutional autonomy should go objective and transparent funding model. Instead, hand-in-hand with a well-defined accountabili- they are negotiated directly between the universi- ty framework. International experience indicates ties and the Ministry of Finance, reflecting histori- that good accountability practices involve at least cal trends, the fiscal situation, and the influence of two types of yearly reports: a financial audit report each university’s president. As a result, the budget Tertiary education—high expectations, low performance  •  131 is not an instrument to ensure that the universities • The fourth group comprises a small number of are aligned with the national development objec- nations that charge substantial fees to only se- tives and maximize their performance. Nor does it lect groups of students, while exempting low- have built-in incentives to encourage the universi- income students. ties to be innovative in the types of programs they Chile, Italy, South Africa, the Canadian province set up or in their curricular and pedagogical prac- of Ontario, and the state of New York in the United tices. Generally speaking spending is not closely States lead the group of countries or regions that linked to outcome targets and there is little ac- have recently introduced targeted free tuition, a countability for results. relatively new funding model whereby the poorest To mobilize additional resources for tertiary ed- students are exempted from paying fees, following ucation, the government can increase cost-sharing the example of some equity-conscious private uni- in public universities, encourage public universities versities in North and South America which offer to diversify their sources of income, and promote needs-blind admission. The most equitable and more public–private partnerships (PPPs). sustainable approach could be for Indonesian uni- versities to move to a targeted free tuition scheme Cost-sharing (table 6.6). Higher cost-sharing in public tertiary education In the medium and long term, the most sustain- institutions cannot be envisaged without putting able approach would be to rely on student loans in place a comprehensive student aid system to to provide financial aid to all needy students. But ensure that qualified Indonesian students are not traditional, mortgage-type student-loan schemes, deterred by financial barriers from entering uni- with a fixed repayment schedule, are vulnerable by versity education and completing their studies. design (Chapman et  al. 2014). To avoid high de- Cost-sharing could be achieved by introducing a fault rates, the new loan program should consid- targeted free tuition (TFT) scheme, expanding the er borrowers’ future incomes in their repayment existing needs-based scholarship program, and schedules, following the income-contingent loans setting up a sustainable student loan system as an in Australia and New Zealand. It is widely consid- income-contingent scheme. ered to be a more sustainable source of revenue Countries across the world can be divided (not a one-way subsidy), more efficient (uses the into four main groups for cost-sharing in public tax system for tracking tax payees), and more eq- universities. uitable (a low repayment burden linked to future • The first group are the richest countries whose income streams). public universities do not charge tuition fees. • The second group, including China and Viet- Resource diversification nam, comprises countries that charge fees to While the potential for resource mobilization is more all students, with various forms and levels of fi- limited in developing countries than in OECD na- nancial aid to protect low-income students from tions, Indonesian public universities can step up their financial hardship. efforts to actively seek additional resources through • The third group, with most former socialist na- donations, contract research, consultancies, con- tions in Eastern Europe and Central Asia and tinuing education, and other fund-raising activities. several Sub-­ Saharan African countries, allows Not all sources of income have the same poten- the most academically qualified students to tial. Contrary to what is commonly assumed, tech- study free of charge or with low fees but require nology transfer is not, on average, a highly benefi- the other students to pay high fees. cial activity for generating income, even though it TABLE 6.6 Sustainability and equity impact of various cost-sharing schemes Cost-sharing modality Financial sustainability Equity impact Free higher education for all Very costly Richer students more likely to benefit Universal fees Less demanding on fiscal resources Equitable if financial aid available Fees only for parallel studentsa Less demanding on fiscal resources Richer students more likely to benefit Targeted free tuition Costly Potentially most equitable Source: Authors’ elaboration. a. In many Sub-­ Saharan African and Eastern European/Central Asian countries, public universities have two admission systems. The brighter students do not pay fees, and those with slightly lower scores at the university entrance exam are also admitted but they have to pay fees (creating a cross-subsidization situation from poorer to richer students on average). 132  •  The Promise of Education in Indonesia is a good way of ensuring the relevance of teaching reducing their budget as they become more adept and research. Experience suggests that providing at fundraising. Ministries of finance are often tempt- continuing education, undertaking productive ac- ed to cut down the budget allocation to universities tivities, and raising funds from alumni, philanthro- perceived as successful in raising funds from the pists, and especially corporations, are the three private sector or from philanthropists. Second, in most important income generation sources. addition to providing the right financial incentives, The government could encourage public univer- the government should also guarantee a favorable sities to be more effective in their income-genera- taxation regime for stimulating philanthropic and tion efforts by offering matching grants, a powerful charitable gifts to higher education institutions. instrument to stimulate the fund-raising activities of public universities, which would require some Public–private partnerships change in existing regulations for non-autonomous A growing number of countries have relied on universities. In the Canadian province of Alber- public–­private partnerships (PPPs) to fund invest- ta, when the government introduced a matching ments in tertiary education. The government could grant program in 2006, it was so successful that explore this as a way of mobilizing additional re- the amount of philanthropic donations received sources from the private sector and complement- by the universities exceeded the funds set aside ing its public investment in tertiary education. At for co-financing by the provincial government. In the lower levels of education, PPPs sometimes Hong Kong SAR, China, the matching fund pro- include the provision of education services by gram proved so effective that it inspired the British private institutions that receive public subsidies, government to set up a similar scheme for its own something which Indonesian institutions have tried universities. Between 2008 and 2011, the British but could do more of. But in higher education, government matched any eligible gift made to a PPPs are usually restricted to financing infrastruc- participating higher education institution. ture projects (construction, management, mainte- Two caveats. First, the government should nance). Most major PPP-supported infrastructure not penalize the most enterprising universities by investments in tertiary education focus on student Tertiary education—high expectations, low performance  •  133 TABLE 6.7 Alignment of the Indonesian funding framework with international good practices Indonesia Guiding principles funding model Comments Alignment with national priorities + No direct relationship Performance orientation + No performance criteria considered Equity considerations ++ Availability of scholarships from the DG of HE Multiplicity of instruments + Only direct budgetary contributions Objectivity and transparency + None Stability over time + No guarantee of stability and no multi-year budget Block grant allocation ++ This gives flexibility Institutional autonomy and accountability ++ Insufficient Source: Authors’ elaboration. + is weak alignment; ++ is average/reasonable alignment. accommodations and cafeterias developed on by making it more performance-oriented, offering a build-operate-and-transfer basis, as in OECD better guarantees of stability over time, and having countries such as France, the United Kingdom, a greater diversity of instruments to meet the var- and the United States, and in developing countries ious needs of institutions that have different mis- such as Nigeria and South Africa. sions (research, general education, skill formation). Indonesian universities could also explore enter- To achieve this purpose, policymakers may consid- ing PPPs for energy production, following recent er the three types of innovative allocation mecha- experience from France and the United States. nisms, separately or combined: funding formulas, Ohio State University’s 50-year contract with an performance contracts, and competitive grants. energy company and an investment firm to run its utility system is the most striking example of the Funding formulas. One of the most transparent and approach. The university received US$1.1 billion at objective manners of distributing funds for recurrent the outset, which included funding for academics expenditures is to use a mathematical formula link- as well as energy-related research and facilities. In ing the amount of resources allocated to indicators exchange, it pays its partner annually, including a of institutional performance, such as the number of US$45 million fee adjusted to inflation, as well as graduates, the employment rate of graduates, and/ other fees for operations and capital investments or the research output. Denmark has a “taximeter in the project (Busta 2019). Along the same lines, model” in which 50 percent of recurrent funds are an area worth exploring would be PPPs for build- paid in relation to the number of students who suc- ing renewable energy facilities to generate solar cessfully pass exams every academic year. In the and wind power on campuses, as the University of Netherlands, half of recurrent funding is based on Bordeaux in France has recently started. the number of degrees awarded as an incentive to improve internal efficiency. In Australia, funding for Performance-based budget allocations doctoral student places is based on a formula com- Based on international experience, an adequate prising graduates (40  percent), research outputs model for allocating public funds for tertiary ed- (10 percent), and research income (50 percent). ucation in Indonesia should be guided by eight principles­—­ close alignment with national priori- Performance contracts. These contracts are non- ties, explicit links to performance, equity among all binding regulatory agreements, negotiated be- population groups, objectivity and transparency tween governments and higher education institu- in the allocation process and criteria, consistency tions and defining a set of mutual obligations. In and compatibility among the various financing in- return for the participating universities’ commit- struments in use, stability over time, institutional ment to meeting the performance targets estab- autonomy and accountability, and allocation as a lished in the agreement, the government provides block grant (table 6.7). additional funding. The agreements may be with It appears that the present funding framework several or all institutions in a given higher education has few dimensions of alignment with international system, or with a single university. All or part of the trends. The funding framework could be improved funding may be conditional upon the participating 134  •  The Promise of Education in Indonesia institutions meeting the requirements in the con- government has signaled its intention to put in tracts. The agreements can be prospectively funded place a more flexible regulatory framework that or reviewed and acted upon retrospectively. Austria, would allow the most dynamic tertiary education Chile, Costa Rica, Denmark, Finland, France, and institutions to transform themselves by intro- the United States have used performance contracts ducing innovative educational and managerial to nudge their public universities toward more inno- practices. This chapter has outlined options to vative strategies and practices (Salmi 2017). improve the contribution of tertiary education to The main advantage of performance contracts equitably building human capital, summarized is to encourage institutions interested in improving below. their results voluntarily without central edicts that are unlikely to be followed. For the government, What are the options to implement this performance contracts help align the behavior of change? higher education institutions with national policy objectives. For the institutions, they can bring ad- Access and equity. MoEC can help to spread en- ditional resources to implement the strategic plan, rollment growth across a variety of tertiary edu- if the institution has a transformative vision and the cation institutions and delivery modalities (public, will to implement it. private, non-university, and online) and push for the elimination of financial barriers for students Competitive funds. Competitive funds, which Indo- from underrepresented groups. MoEC can work nesia has used in the past, have proven their value with public and private institutions to put in place and strength as an effective resource allocation comprehensive non-monetary equity promotion mechanism for transformative investment purpos- measures for increased outreach and the retention es. Under this approach, institutions are invited of students from underrepresented groups. to formulate project proposals that are reviewed and selected by committees of peers according to Quality and relevance. The Directorate General of transparent procedures and criteria. Positive expe- Higher Education (DGHE) of MoEC can articulate riences in Chile, China, Egypt, Indonesia, and Tu- and implement a proactive talent development nisia have shown the ability of competitive funds strategy for academic staff. The Directorate of to help improve quality and relevance, promote Learning and Students of DGHE can encourage in- curricular and pedagogical innovations, and foster novations in curriculum and pedagogy as well as better management­ —­ all objectives that are more promote the internationalization of curriculum and difficult to achieve through funding formulas. the mobility of students and academics. The Direc- The actual eligibility criteria vary from country to torate of Institutions of DGHE can develop closer country and depend on the specific policy changes university-industry linkages and strengthen quality sought. In Argentina, proposals could be submit- assurance systems. ted by entire universities or by individual faculties or departments. In Chile, both public and private Research and technology transfer. The DGHE institutions are allowed to compete. In Egypt, a MoEC can continue to finance scholarships for PhD competitive fund was set up in the 1990s to stimu- training at top universities overseas. The Director- late reforms in engineering education. ate of Human Resources can provide funding for One of the principal benefits of competitive funds postdocs to build up research teams and select a is the practice of transparency and objectivity on the small number of research-intensive universities for basis of clear criteria and procedures and the over- capacity building toward excellence. sight of an independent monitoring committee. An additional benefit is that they encourage universities Governance. DGHE MoEC can work with the ter- to undertake strategic planning activities which help tiary education community to articulate a vision them formulate proposals based on a solid identifi- for the future of tertiary education, with an ac- cation of needs and a rigorous action plan. tionable strategic plan and sufficient resources for implementation. The Directorate of Institutions Recommendation 11: Improve the can make a clear distinction between the responsi- quality, relevance, and equity of the bilities of the state and the rights and obligations tertiary education sector of tertiary education institutions. The Secretary of the Directorate General of Higher Education can What can be changed or improved? design and implement a comprehensive manage- To optimize the contribution of tertiary educa- ment information system to monitor the perfor- tion to its ambitious development agenda, the mance of the tertiary education system. Tertiary education—high expectations, low performance  •  135 Sustainable financing. To mobilize additional pub- Sector, Human Development Network, World Bank, lic funding the DGHE MoEC can provide incentives Washington, DC. to public tertiary education institutions to diversify Reichert, S. 2019. “The Role of Universities in Regional their resources through contracts from continuing Innovation Ecosystems.” Brussels: European Univer- education, consultancies, research, and fund-rais- sity Association Study. https://eua.eu/downloads/ ing. The Directorate of Institutions can promote publications/eua%20innovation%20ecosystem%20 public–private partnerships. The DGHE can intro- report%202019–3-12.pdf. duce performance-based allocation mechanisms. SAKERNAS (Survei Angkatan Kerja Nasional). 2018. Badan Pusat Statistik. References Salmi, J. 2017. The Tertiary Education Imperative: Knowl- Busta, H. 2019. “Colleges look to public-private partner- edge, Skills and Values for Development. Rotterdam: ships for help with sustainability.” EducationDive, 11 Oc- Brill/Sense Publishers. tober. https://www.educationdive.com/news/plugging UNESCO (United Nations Educational, Scientific, and -in-colleges-seek-partners-to-help-reach-energy Cultural Organization). 2017. “Accountability in Educa- -goals/564868/. tion: Meeting Our Commitments.” Background paper BPS 2018 https://www.bps.go.id/dynamictable/2018/07/ prepared for the Global Education Monitoring Report 11/1523/angka-partisipasi-kasar-apk-perguruan-tinggi 2017/18, UNESCO, Paris. -pt-menurut-kelompok-pengeluaran-2015–2019.html. ———. 2020. UIS (UNESCO Institute for Statistics) Data Chapman, B., T. Higgins, and J. Stiglitz. 2014. Income 2020. Paris: UNESCO. Contingent Loans: Theory, Practice and Prospects. London: Palgrave MacMillan. Government laws and regulations Fielden, J. 2008. “Global Trends in University Gover- Law No. 12/2012 on Higher Education. https://jdih. nance.” Education Working Paper Series 9, Education kemenkeu.go.id/fullText/2012/12TAHUN2012UU.htm. 136  •  The Promise of Education in Indonesia Tertiary education—high expectations, low performance  •  137 CHAPTER 7 Managing Indonesia’s multiple systems for learning T he preceding chapters have stressed the has participated in all main international tests im- importance of learning across key areas plemented since 1990, including Trends in Interna- of education, including (1) boosting learn- tional Mathematics and Science Study (TIMSS) and ing, (2) starting early with readiness for learning, Programme for International Student Assessment (3) promoting equity and inclusion in learning, (PISA). This allows for cross-country and across- (4) preparing and supporting teachers, (5) promot- time comparisons in learning outcomes that can ing skills for the labor market, (6) strengthening identify strengths and areas for improvement. tertiary education. Further gains can be made by Indonesia has recently started major changes in aligning the system as a whole for learning. This its national assessment system. Because of contro- concluding chapter considers how to improve sys- versies surrounding the exams, the Ujian Nasional tem coherence so that all aspects of the system (UN) for grade 6 was cancelled and changed to a drive toward student learning. less high-stakes examination called the Nationally Based School Examination (Ujian Sekolah Berbasis Schooling for learning Nasional, or USBN). The specified topics covered The 2018 World Development Report (World Bank in the USBN are selected at national level, and test 2018a) stresses that schooling is not the same as papers are then developed at district level to be learning. Reform in Indonesia can advance on used in all schools, so they are not comparable be- three fronts to build on its education reforms and tween districts or between years. In another major improve results. policy shift in December 2019, Minister Makarim announced the termination of the UN for grade 12, Assess learning to make it a serious goal. Use stating, “The implementation of national exam in well-designed student assessments to measure 2021 will be changed to the Assessment of Mini- the health of education systems, not primarily as mum Competency and Survey of Character, which tools for administering rewards and punishments. consists of the ability of language (literacy), the It also means using the results of these learning ability of math (numeracy), and the strengthening measures to spotlight hidden exclusions, make of character education.”103 While previous itera- choices, and evaluate progress. tions of the national assessments had challenges and controversy, keeping the important advances Act on evidence to make schools work for all learn- of the less high-stakes assessment such as AKSI ers. The volume and quality of evidence on how will be critical to be able to continue measuring the people learn has expanded in recent decades, health of the system (box 7.1). along with an increase in educational innova- tion. Countries can make better use of this evi- —­ Act on evidence­ to make schools work for all dence to set priorities for their own practices and learners innovations. Measurement should guide action. To do so, mea- sured results must be available to stakeholders. Align actors to make the whole system work for Measures of learning can motivate action by in- learning. Classroom innovation is unlikely to have creasing participation of stakeholders in outcomes much impact if the system as a whole does not sup- and by making information available for reform. port learning. By taking account of technical and There is a need to make information about learning political barriers and mobilizing stakeholders, In- available and to support key stakeholders, includ- donesia can support innovative educators, admin- ing teachers, parents, districts, provinces, to use it. istrators and subnational leaders on the front lines. This information can come in the form of student assessment, such as AKSI, and it can also come —­ Assess learning­ to make it a serious goal through instruments such as the proposed Educa- Education service deliveryis affected by the re- tion Quality Index (see chapter 5), which is intend- sources available, institutional capacity, politics, ed to bundle key information that can be used for and ad hoc restrictions, among other variables. decision-making. Earlier reforms to strengthen assessment using One way to do this is to ensure greater owner- computer-based testing­ —­along with more recent ship, engagement, and empowerment of decen- structural reforms to redesign the assessment and tralized actors to respond to local learning chal- the underlying student learning progression­ —­ are lenges. Improving the quality of service delivery is headed in the right direction, and more develop- a particularly difficult challenge, poorly suited for a ments are expected in the near term. nationally homogeneous response. To drive more The tradition of testing and assessment has re- effective local responses, districts need support vealed widespread learning weaknesses. Indonesia to understand the different education challenges Managing Indonesia’s multiple systems for learning  •  139 BOX 7.1 Measuring the health of the system AKSI, the Indonesian Student Competency As- private madrasahs. The examination will be built sessment (Asesmen Kompetensi Siswa Indone- from the AKSI developed by MoEC and be imple- sia), is a mechanism to assess a representative mented in 2021. sample of students starting in grade 4. It is meant A new assessment, the Minimum Competency to measure the health of the system rather than Assessment, is planned for launch in 2021 to map the achievement of individual students. The as- student competencies in reading and numeracy. sessment, using a scoring system similar to PISA, The competency in reading will measure not only was introduced in 2016 in primary schools and students’ ability to read but also students’ level subsequently in lower (2017) and upper (2018) of reading comprehension. Likewise, the com- secondary schools. On its introduction in grade petency in mathematics will measure not only 4, 77 percent of the students tested at the lowest students’ ability to do analysis but also students’ level of achievement.1 ability to do mathematical operations. The AKM As of late 2020, AKSI has not been imple- is planned to be implemented in all schools and mented in madrasahs. The Ministry of Religious madrasahs. Affairs is currently preparing the implementation The results from these assessments are used of census-based standardized examination sys- to map the student competencies and perfor- tem at primary level to support improved service mance at school, region, and national levels. delivery and accountability for formal public and 1. http://puspendik.kemdikbud.go.id/inap-sd/. that they face and the resources that they already governments; subnational education authorities; possess to address them. The Ministry of Educa- and national ministries of education. The strength tion and Culture (MoEC), together with the Minis- of institutions can strongly affect the quality of in- try of Home Affairs (MoHA) and others, can take teractions between education officials and provid- a stronger role in assisting districts to define their ers, on the one hand, and stakeholders from civil learning-related challenges, provide resources to society, especially parents and employers, on the respond to identified obstacles, and ensure that other. the education system remains focused on learning. These interactions take place within contexts District leaders, bureaucrats, educators, and shaped by political influences and political culture. parents need to understand that the system is Politics can drive misalignments when the vested failing many children on the provision of basic lit- interests of different stakeholders collide. Mis- eracy and numeracy skills. They can understand alignment can occur along every step of the poli- this problem not as a national issue, but as a local cy process, from defining goals to designing and one, relevant to them and their own kids. They implementing policies to evaluating their effec- would benefit from seeing where they are doing tiveness. Misalignment threatens to undermine the well, so that they have a place to start moving efforts of education systems to produce learning forward. This means that they need data that are (World Bank 2018a). meaningful at the district, school, and class level. Far too often, policies and investments in ed- It is important that teachers have the capaci- ucation are not well aligned with national eco- ty and flexibility to adjust their teaching to the nomic development needs, as noted in the 2018 needs of their students, and that their directors World Development Report (World Bank 2018b). and school monitors have the ability to support This lack of alignment has the potential to under- them in doing so. mine reforming education systems to improve learning. Overall government capacity may affect Align actors­ to make the whole system work —­ actions that affect student learning, but capaci- for learning ty in education systems is likely to have a greater Education systems require effective institutional impact. alignment at a variety of levels and among multiple Among leading education systems in East Asia, actors (World Bank 2018b). progress was made possible by a series of deliber- Capacity levels matter for district and school ate policy choices that fostered alignment (Wong level bodies; national, provincial, and municipal 2017). These policies included setting targets and 140  •  The Promise of Education in Indonesia demanding results, advocating for education in national spending, and providing the impetus for FIGURE 7.1 Coherence and alignment for cross-sectoral alignment. learning COVID–19 pandemic impacts and ians Civil organ soc litic izat iety response Po ion s The COVID–19 pandemic is expected to have a large and negative impact on progress in all sec- Pe rs Le ar er he or s/c tors of human development. This includes educa- ect ac om ne te s Te tion, where we estimate that Indonesian children r mun s Priva have already lost 16 points on the PISA reading ities scale and US$367 in future annual individual earn- Learning ings due to the four-month closure period from Sch o Bure March 24 to the end of September 2020 (figure iary ts ol 7.2) (Yarrow, Masood, and Afkar 2020). We used pu auc dic m na ol in a the World Bank’s Country Tool for Simulating ge rat Ju me ho Sc s nt COVID–19 Impacts on Learning and Schooling In te Outcomes and data from the forthcoming Mea- rn s ati ona tor suring the Quality of Education Services in Indo- l acto r ac rs Othe nesia survey to simulate and contextualize the potential impact of COVID–19 school closures on Source: World Bank 2018b. learning outcomes, proficiency levels, enrollments, and expected earnings for Indonesian students in primary and secondary school (Azevedo et al. 2020). The estimate for the eight-month closure FIGURE 7.2 Projected trends in PISA scores due scenario shows that these losses are expected to increase as schools gradually re-open (and possi- to COVID–19 bly re-close). Given unequal access to resources to PISA score in reading support learning while schools are closed, children from poorer households are expected to lose more 380 learning than children from wealthier households (Yarrow, Massod, and Afkar 2020). 370 4 months Figure 7.3 summarizes the current and potential transmission channels for the impact of COVID–19 360 6 months on education, including increased drop-outs due 8 months to economic hardship and loss of income. If, by 350 July 2020, the income shock is –1.1  percent, the rate of out-of-school children (OOSC) is expected 340 to increase by 0.13 of a percentage point for prima- ry students, equivalent to 48,175 additional chil- 330 dren dropping out of school at the primary level. At the secondary level, the increase in OOSC is es- 320 2018 Post-COVID timated at 0.15 of a percentage point, equivalent to 43,031 additional children dropping out. The Source: Yarrow, Massod, and Afkar 2020. model estimates that, as households lose income, the dropout rate will increase as the opportunity cost of attending school increases (Yarrow, Mas- reduce losses in these areas is already being col- sod, and Afkar 2020). lected (World Bank forthcoming). Like other countries, once re-opened Indone- In terms of education, both MoRA and MoEC sia will likely find setbacks to its progress on the have been fairly nimble in their response to the SDGs. Family poverty, maternal and child mortal- COVID–19 emergency as part of national and ity, malnutrition, and stunting are all likely to have local government initiatives. In late March, schools increased, and immunization rates, food produc- began to close based on recommendations from tion, and enrollment in ECED services and schools the central government, with all schools from early will all likely have declined. Evidence of setbacks childhood to tertiary closing by early April, affect- as well as efforts by the government and others to ing over 68 million students (MoEC Circular Letter Managing Indonesia’s multiple systems for learning  •  141 FIGURE 7.3 COVID–19 crisis education system transmission channels Direct • Learning stalls education • Learning inequality increases School costs • Attachment to schooling falls closures Health • Student nutrition worsens and safety • Student mental health declines impacts • Student vulnerability increases • Dropout rate increases, especially for the disadvantaged Education • Child labor, child marriage, transactional sex increase demand side • Education investment by parents declines Economic crisis • Government spending on education falls Education • Quality of education declines supply side • Teaching quality declines • Private schools and ECED services close • Learning poverty increases • e quality of human capital declines Long-run • Overall poverty increases (due to dropouts) • Inequality increases costs • Social unrest increases • e intergenerational cycle of poverty and low human capital is reinforced Source: Rogers and Sabarwal 2020. No. 4/2020).104 BOS funds were given increased • The ECED subsector may suffer more than other flexibility, allowing them to be spent on COVID re- levels of education. Government-supported sponse at the school level. Among other actions, schools and kindergartens will likely keep their MoEC initiated an online-learning partnership teachers during the pandemic and eventual- with private providers to provide free access to Ed- ly reopen. But many private and community- Tech tools and it launched a national educational based ECED services have already reportedly TV program on April 13, 2020. MoRA is providing closed. Without their salaries, staff may leave. training and support for teachers using online plat- Workforce capacity, built up over prior years, forms and reaching out to school leaders to better may be eroded by the pandemic. Parents who understand their needs. National exams have been were negatively impacted economically may cancelled for academic year 2020. There is also an skip ECED services. initiative to mobilize university hospitals to expand • The disparities, inequities, and exclusions testing and repurpose some learning areas for that existed in schooling and learning before overflow patients. COVID–19 are likely to be exacerbated by the Looking forward, much more will need to be impact of the pandemic. Most children with done to help the system recover and accelerate disabilities now have lost the special services learning in the coming months and years. Based many of them received in their ECD programs on anecdotal evidence and experience from other and schools. They are likely to return to edu- contexts, the following impacts have already start- cation even further behind their abled peers. ed, and are expected to continue in the coming Children of poor families and those disadvan- months: taged by the digital divide (especially children • Overall investment in education may fall if less in rural and remote areas) are also likely to have public financing is available because of eco- fallen further behind their wealthier peers. nomic contraction and reduced tax receipts Households are likely to spend less on educa- and if funds are diverted to other sectors. In tion inputs, and there may be some shift from the short term, the revised national budget for higher-­ cost to lower-cost schools depending 2020 is prioritizing the health sector, social pro- on the level of economic contraction. Dropouts tection, and protection to small and medium- by existing students may also rise dramatical- sized enterprises to deal with the COVID–19 ly, particularly among the poorest households, outbreak. However, with the constitutional who will likely have difficulty paying for educa- mandate of 20 percent, education still gets the tion and may need their older children to work 20 percent allocation. MoEC has announced to increase family income (Yarrow, Masood, the reallocation of Rp 405 billion to support im- and Afkar 2020). provement in capacity and resources in educa- • The supply of tertiary education and private tion hospitals as well as for educational content technical and vocational education is expected on COVID–19. to contract as decreased enrollments will lead 142  •  The Promise of Education in Indonesia to decreases in tuition and other fees. This will families. These are important in a time of crisis, impact these institutions’ ability to pay salaries as are education-based services related to child and meet other financial obligations. The de- health, nutrition, and protection. Continuing to pay mand for this education will also likely decrease teacher salaries is essential to guaranteeing the re- with the expected economic contraction. Stu- silience of the overall system. dents who have paid tuition for intensive face- As schools reopen, it will be crucial to ensure to-face instruction­ —­ especially for courses re- that staff are in place, and that parents re-enroll quiring classroom or laboratory practice­ —­ may their children. Recognizing that learning dispari- find online and distance education a poor sub- ties will have increased because of the pandemic, stitute. Those universities with the technology it will also be crucial at the primary and secondary and materials required for online learning will levels to assess students’ learning gaps, both new increase their advantage over those without. and old, to provide extra support to those who Similarly, students with access to the technolo- have been most disadvantaged, and to differenti- gy needed to process such learning will increase ate instruction based on students’ current learning their advantage over those without. In other levels. Additional socioemotional support will be words, the extent that school and university important for students who may have been neg- learning has transferred out of the classroom atively affected by school closures and more toxic to the computer will inevitably have an impact home environments. It may be necessary to extend on the gap in learning between technology-­ the school year in order to help students catch up. advantaged and technology-­ disadvantaged The existing mismatch between curricular pace students. and student learning needs to be closed, and This digital divide will be problematic for all students may need to be grouped by ability level levels of education. And the divide does exist. For across grades. Teachers will need to be support- example, urban households in Indonesia are al- ed to conduct these re-entry assessments. Stu- most twice as likely to have access to the internet, dents should not be held back or excluded from fixed broadband, computers, and radio than rural school, and individual needs and weaknesses, ex- households­ —­ clear evidence of an urban–rural and acerbated by the pandemic, should be identified. most likely rich–poor digital divide (table 7.1) (Hadi There should be follow-through with targeted as- 2018). sistance to students catching up. The experience should also enhance teacher skills in formative as- What are the options to mitigate COVID–19’s sessments and differentiated learning beyond the impact on education? COVID–19 response . While it may not be possible Support is needed for heathy development and to accelerate learning enough to catch up in the learning now. Current action should support learn- first academic year following re-opening, it may be ing through online options, educational TV, and possible to re-orient the system toward grouping technical and moral support to education staff and students by ability and differentiating instruction TABLE 7.1 Indonesia’s ICT indicators (percent) Rural Urban Household Individual Household Individual Total access usage access usage Internet 36.0 26.3 32.5 48.5 41.7 Mobile broadband 93.3 95.4 — 93.3 — Fixed broadband 7.8 7.4 — 14.3 — Mobile phone 84.4 79.5 70.1 90.7 76.4 Smartphone — — 59.2 — 70.7 Non-smartphone — — 61.5 — 49.4 Both — — 20.7 — 20.1 Computer 31.4 22.1 20.4 43.4 38.5 Fixed phone 4.5 1.4 — 8.5 — TV 87.7 82.6 67.0 94.2 81.2 Radio 40.0 26.3 20.5 48.5 31.3 Source: Hadi 2018. Managing Indonesia’s multiple systems for learning  •  143 by student’s individual learning needs rather than for the infrastructure of schools, universities, and by curricular pace. government offices. For tertiary institutions, some closures and con- Climate change and natural hazards are topics solidations may be unavoidable due to financial that merit more attention across the education sec- strain. However, the following mitigation mecha- tor, including for national curriculum content, indi- nisms can help improve the overall quality of the vidual school and local government disaster pre- tertiary education systems and help align them paredness, school construction and infrastructure with employment opportunities: upgrading, and tertiary-level study and research. • Supporting enrollment through an expansion Learning from the early stages of the COVID–19 and increase of KIP-Kuliah, a tertiary education response shows the importance of developing an benefit received by low-income students. education system resilient to such shocks, whatev- • Supporting consolidation of the private sector er they may be. This means that distance-learning into fewer high-quality institutions by easing content and infrastructure must remain in place­ the transfer of students from low-performing —­ whether online, TV, or radio-based­ —­ and that micro-institutions to larger ones that commit to teachers must become even more skilled in the improved service delivery. This could be done central role they can play in motivating and sup- by extending no-cost credit to private universi- porting students even from a distance. In other ties meeting minimum size and quality criteria areas, national policy on new infrastructure invest- and that are willing to accept transfer students ments for education can mandate energy efficient from other private schools. upgrades, the use of solar power, and hazard re- • Supporting tertiary education institutions con- duction related to flooding, earthquakes, or rising tribute to overall system resilience through seas. Recognizing the importance of this kind of investments in online education, and have resilience and starting to build the structures and them look ahead to the next climate or natu- capacity to ensure it exists may be one of the few ral disaster-­related event that may interrupt positive results of COVID–19. campus-based learning. In some cases, quality Currently available information indicates that could be improved by shifting to online learning, MoEC is planning a revision of the national curricu- particularly in areas such as foreign languages lum in partnership with MoRA and other key stake- where institution-based learning could comple- holders.105 This revision could include more infor- ment online instruction by native speakers. mation on climate change and natural hazards at Detailed discussion of the impacts of school grade-appropriate levels. Disaster preparedness closures and recommendations for strategies to information and drills are the responsibility of local support both improved face-to-face instruction, as governments, but they can be supported through well as improved quality of distance learning are communication tools developed at the national discussed in Yarrow, Masood, and Afkar (2020). level, including through the national curriculum. Recommendation 12. As a part of the Synthesis of recommendations COVID-19 response and recovery, The recommendations of this report (table 7.2) strengthen the system for future provide the building blocks for learning, and their shocks and stresses interconnectedness and coordination among all key stakeholders is critical for providing coherence What can be changed or improved to increase and alignment of the system toward the goal of education system resilience to external shocks? learning. If learning declines and dropout increases are not effectively mitigated, there may be long-term Interconnectedness of the recommendations macro effects on human capital development and The recommendations in this report are highly rising inequality. But COVID–19 is not the only connected and depend on one another for the inter­ event that will result in these effects. More broadly, system to function and progress as a whole. the education system will continue to be vulnerable to external shocks. Nationally, weak development Learning controls and insufficient planning have allowed de- The overarching theme of boosting learning is set velopment to happen in areas prone to risk, includ- in Recommendation 1: Ensure that students reach ing flooding, earthquakes, and land subsidence. at least minimum learning and development stan- As the risks of the climate crisis, extreme weather, dards at each level of the system. To achieve this, sea level rise, and other climate changes increase, multiple things need to occur related to students, so do the risks increase for students, teachers, and teachers, and management and inputs. 144  •  The Promise of Education in Indonesia TABLE 7.2 Summary of key recommendations What is the need? Recommendation Who How Boost learning 1. Ensure that Provinces • MoEC to reduce and revise the NES indicators to focus on students reach at least Districts measurable and observable aspects of the education pro- minimum learning MoHA cess that are more closely linked to learning. and development MoEC • Subnational stakeholders to develop budgets and learning standards at each level MoRA improvement plans to increase student learning. of the system Local level • MoHA to require reporting on these plans and assess prog- supervisors ress toward goal achievement; MoEC to provide technical (pengawas) support. Principal and teacher • MoEC to revise the national curriculum. working groups Start early 2. Make quality early MoEC (DG ECED • Government, led by MoEC, to issue policy statement mak- childhood education and Community ing two years of preprimary education compulsory; share accessible to all Education) roadmap to achieve this by 2030. MoRA • Government, led by MoEC, to prioritize and target funding BAPPENAS to ensure that children most excluded from ECED services MoHA (for example, with disabilities, from poor and rural families) MoV are able to complete two years of preprimary education. Provinces • Districts can increase allocations to ECED within the Districts existing education budget and seek alternatives, while Villages MoF and MoEC can pilot innovative approaches to funding nationally. • Accompany these reforms with integrated local and nation- al socialization campaigns to stimulate registration of ECED services and higher enrollment. • Improve collaboration among ECED stakeholders and improve data collection on ECED services, teachers, and learners. Provide learning 3. Act to guarantee MoEC • Leaders at all levels to recommit their energies and resourc- for all equitable access to MoRA es available to ensure equitable access to good quality good quality education Provinces education. and learning by Districts • MoEC and MoRA can continue to improve education children most excluded Schools management systems to include a special focus on inequity from the system Teachers and exclusion to help identify excluded populations and Supervisors children. Principal and teacher • Update school-based management tools to include working groups indicators of exclusion such as nonenrollment, repetition, LPMP dropout, and completion rates. 4. Act to improve MoEC • MoEC and MoRA to implement national assessments in learning outcomes of MoRA primary to identify learning inequities. the lowest performers Provinces • Use primary grade assessments as a part of in-service Districts teacher training to ensure that teachers know how to use Schools this information to support students. Teachers • Use student learning data to identify the lowest 40 percent Supervisors of schools and students. Principal and teacher • Consistently low-performing schools and districts to receive working groups special capacity support. LPMP • Schools and teachers to preferentially support lowest per- forming students. Serve everyone 5. Ensure that all MoEC • Students at high risk of exclusion are identified early and students, including MoRA provided needed support. those with disabilities, MoF • Barriers to continuing schooling are removed by adapting succeed MoHA learning environments. MoSA • Teachers trained to identify and work with disabled Provinces students. Districts • Use BOS, BOP–PAUD to reduce cost of schooling, Program Schools Indonesia Pintar for subsidies to disadvantaged families to enroll and keep children in school. (continued) Managing Indonesia’s multiple systems for learning  •  145 TABLE 7.2 Summary of key recommendations (continued) What is the need? Recommendation Who How Improve teaching 6a. Improve the MoEC • Revise policies and regulations for the operational licensing quality of preservice MoRA and establishment of new LPTKs to control the number and institutions and the MoHA quality of entering student teachers. candidates that enter LPTKs • In order to ensure the appropriate number of entrants, them KemenPAN-RB the DGHE and DG Islamic Education MoRA could identify qualified LPTKs and quota for each of them. • The accreditation process for LPTKs could be strengthened and linked to the licensing process (including reducing the time lag between licensing and accreditation). • Provide funding and technical support to BAN–PT to ensure it has the capacity and authority for a meaningful accreditation process. • Incentivize LPTKs to meet the strengthened accreditation system using grants/financing. • Close LPTKs that are do not meet and are not on track to meet accreditation standards in the near future. • MOEC and MORA can set competency standards of new teacher candidates. 6b. Recruit the best MoEC • MoEC and MoRA can help attract the best teacher candi- teacher candidates MoRA dates by enhancing the visibility and increasing the status and distribute them MoHA and reputation of accredited LPTKs. effectively Province • Resist political pressures in hiring. District • MoEC, MoRA, and MoHA can set minimum standards for Schools hiring teachers across contract types by working closely with provinces and districts. 7. Improve professional MoEC • MOEC and MoRA to establish and enforce procedures for development and MoRA induction, probation, and teacher assessment. calibrate incentives MoHA • Strengthen working groups to support their efforts to in- Provinces crease quality and decrease disparities among schools. Districts • Provinces and districts require supervisors to monitor and Schools supervise student assessment by teachers; these are used to inform teaching and learning. • MoEC and MoRA to include formative and summative stu- dent assessments in teacher appraisal. • MoRA and MoEC, working at the national and subnational level, can address gender disparities, particularly for princi- pals, by encouraging and providing more opportunities for female teachers to become civil servants and principals. • Districts and provinces to experiment with ways to increase accountability through incentives. Manage for 8. Strengthen MoEC • MoHA and MoEC develop a simple education quality index learning accountability MoRA drawing on improved minimum service standards, NES, and mechanisms through MoHA student learning measures. better data tracking Parents (school • MoEC and MoRA require districts to evaluate student learn- and verification committees) ing at primary level, support them on strategies to improve Teachers learning. Schools • Districts to communicate results to parents and teachers, Districts support schools and teachers to remediate gaps. Provinces • Schools use results to improve teacher practices, mobilize community support, and provide additional services for students. • MoEC to support schools and provinces to improve data reporting; MoHA to mandate independent verification of data, with financial sanctions for misreporting. 9. Support existing MoEC • Support school improvement and enhance student out- institutions to improve MoRA comes by building the capacity of existing actors such as service delivery MoHA working groups, school committees. Districts • Incentivize and hold accountable districts through Provinces performance-based budgeting and capacity building and Teachers support. Principal and teacher • Improve performance-based incentive programs such as working groups BOS Kinerja to include transparent, observable characteris- School committees tics linked to student learning and measure improvement in LPMP performance. LPTKs (continued) 146  •  The Promise of Education in Indonesia TABLE 7.2 Summary of key recommendations (continued) What is the need? Recommendation Who How Increase learning 10. Expand access MoM • Establish a Skills Development Council with strong partici- for employment to and improve the MoEC pation of the private sector. quality and relevance MoRA • Improve the availability and accuracy of information on of TVET MoF labor market needs and guide the overall skills develop- BAPPENAS ment system with strong participation of the private sector. • MoM to lead the development of competency frameworks that reflect private sector needs, develop labor market information system. • TVET institutions to increase their capacity to deliver grad- uates with these competencies and to meet rising demand. • Balance expansion with robust accountability mechanisms. • Ensure that TVET institutions have the right infrastructure and teachers to deliver the competency frameworks. • Expand the features and use of SISNAKER for an improved labor market information system to monitor the evolution of labor demand and supply, and also to provide information to job-seekers on occupations. • MoEC can expand the revitalization of the SMK program subject to an evaluation of current results. • MoF can establish direct financing to accreditation agen- cies of universities and TVET institutions to assure the independence and capacity to undertake accreditation. • MoEC can increase the internationalization of the higher education system by allowing greater freedom for foreign higher education institutions to provide services to Indone- sian students across the country. Raise the 11. Improve the MoEC • Increase Indonesia’s tertiary enrollments and improve equi- performance of quality, relevance, and MoRA ty by eliminating barriers to enrollment for underrepresent- tertiary education equity of the tertiary Tertiary education ed groups, increasing graduation levels for underrepresent- education sector institutions both ed groups through non-monetary support such as outreach public and private and retention programs and expanding enrollment at the BAN–PT Open University. • Directorate General of Higher Education (DGHE) of MoEC and the Directorate of Religious Higher Education (DRHE) of MoRA can articulate and implement a proactive talent development strategy for academic staff. • DGHE and DRHE can incentivize the diversification of financial resources for public institutions, and introduce performance-based financial allocations to improve quality and relevance. • Strengthen research and technology transfers through pub- lic–private partnerships, university–industry linkages and internationalization of curriculum and student enrollments. • Modernize governance and management, including a more flexible regulatory framework for high-performing institu- tions to innovate. • MoEC and MoRA to consolidate small, low-quality private universities, improve the quality of tertiary institutions; and develop a joint comprehensive management information system. • MoF to finance accreditation agencies to assure indepen- dence and capacity to undertake accreditation. Increase education 12. As a part of the MoEC • Improve distance-learning hardware and software. system resilience COVID-19 response MoRA • Improve teacher, student, and institutional capacity to to external shocks and recovery, Tertiary institutions utilize distance-learning technology. strengthen the system Subnational • Invest in secure data and communications capabilities. for future shocks and governments • All new infrastructure investments to maximize energy stresses efficiency and hazard-resistance. BAN–PT = Badan Akreditasi Nasional Perguruan Tinggi, BAPPENAS = Ministry of National Development Planning, BOP–PAUD = Bantuan Operasional Pendidikan, or School Operational Assistance Grant from subnational government, BOS = Bantuan Operasional Sekolah, School Operational Assistance, ECED = early childhood education and development, LPMP = Lembaga Penjaminan Mutu Pendidikan, or Education Quality Assurance, LPTK = Lembaga Pendidikan Tenaga Keguruan, or Teacher Training Institutes, MoEC = Ministry of Education and Culture, MoF =Ministry of Finance, MoHA = Ministry of Home Affairs, MoM = Ministry of Manpower, MoRA = Ministry of Religious Affairs, MoSA = Ministry of Social Affairs, MoV = Ministry of Villages, NES = Na- tional Education Standards, TVET = technical and vocational education and training. Managing Indonesia’s multiple systems for learning  •  147 Students early marriage, language interference, and socio- It is essential that students come to school pre- economic status. And it requires that small rural pared to learn. This includes a good start for all and remote schools can provide quality education. children, as captured in Recommendation 2: Make quality early childhood education accessible to Teachers all. This would include making at least two years Learning must be guided and supported, with of quality early childhood education compulsory more emphasis on helping teachers improve. and accessible to all. There is a need to strength- Recommendation 6a: Improve the quality of pre- en the coverage and quality of ECED by ensuring service institutions and the candidates that enter sufficient funding, and developing a roadmap to them, Recommendation 6b: Recruit the best achieve universal ECED enrollment by 2030. ECED teacher candidates and distribute them effective- expansion could also be incentivized, especial- ly, and Recommendation 7: Improve professional ly in areas with no ECED services, through grants development and calibrate incentives address the for new or additional services and by encouraging stock, flow, and quality of teachers. Recommenda- better collaboration among stakeholders. tion 6a involves improving preservice institutions Ensuring that education is equitable and sup- through better licensing and accreditation as well ports the most vulnerable students is addressed as through strengthening targeted technical and through three recommendations. financial support—especially those in Eastern Recommendation 3: Act to guarantee equitable areas—to stimulate improvements in quality and access to good quality education and learning by increases in accreditation ratings. Also important children most excluded from the system. It is im- is being more selective by enrolling fewer num- portant to ensure that the vision and mission of the bers and ensuring that they are of higher quality. Ministry of Education and Culture, and the policies Recommendations 6b and 7 involve improving that flow from it, are always focused on ensuring the caliber of teaching, including through bet- that ALL children have equitable access to good ter hiring, placement, and continued professional quality schooling and opportunities to learn. It is development. There is a need to ensure enough important to consider different levels and to iden- highly qualified teachers in the right locations, tify districts, communities, families, and children particularly in rural, remote, and low-performing who continue to be excluded from school and schools. They should be continuously supported therefore disadvantaged in their learning. To un- in ways that improve their skills, with a particular derstand these factors, it is useful to analyze the emphasis on induction of new teachers and effec- reasons for this exclusion and inequity and to de- tive methods of professional development such as velop both national and local policies and school the teacher working groups. It would also be ben- practices to overcome them. eficial to experiment with ways to increase teacher Ensuring that learners do not fall behind is ad- accountability through incentives. dressed in Recommendation 4: Act to improve learning outcomes of the lowest performers. This Management and inputs could involve making help for low-performing dis- The management and inputs of the system must tricts, schools, and students a priority. High-qual- also be driven toward delivering learning. Recom- ity national student assessments would diagnose mendation 8 is Strengthen accountability mecha- (identify and explain) low performance issues nisms through better data tracking and verification, and inform instruction to enhance performance. where stakeholders and decision-makers are held Teachers would routinely assess performance accountable for improving education quality. Data daily through formative evaluation approaches. are critical for accountability, and there is a need to And learning data would be harnessed to identify keep better track of education trends by improving lowest-­ performing schools and provide extra as- MoEC and MoRA databases. The proposed Edu- sistance to them. cation Quality Index would serve the purposes of Recommendation 5: Ensure that all students, measuring for accountability and directing assis- including those with disabilities, succeed. This re- tance to lagging districts and schools. Recommen- quires identifying children with disabilities as soon dation 9: Support existing institutions to improve as possible so that early childhood interventions service delivery includes ensuring that Indone- can be provided; and training teachers to work sia can build on its reforms to improve learning with children who have disabilities­ —­and include quality. At the school level, this involves support- them in learning. It also requires assessing to what ing school improvements and enhancing student extent in the local context (if any) disparities in outcomes using the building blocks already in achievement are linked to gender, school violence, place­—­ principal and teacher working groups, 148  •  The Promise of Education in Indonesia school committees, education quality assurance help secure the future of learning. Thus, Recom- institutes (LPMP) and training colleges (LPTKs), mendation 12: As a part of the COVID–19 response and the province-level education offices and their and recovery, strengthen the system for future supervisors. All these building blocks need fur- shocks and stresses. ther capacity development. The resulting aligned “architecture” of support can be directly involved Common systemwide themes in improving teacher performance. At the district The goals and recommendations also contain level, it requires making staff more capable and ac- common themes, contextual considerations, and countable for the work they do, including clarifying approaches. the role of every Dinas unit in enhancing learning outcomes and requiring Dinas staff to remain in Coordination among multiple actors their positions following capacity-­ strengthening It is critical to consider the multiple actors and how activities. The financial aspect involves linking fi- they can coordinate and work toward the common nancial transfers more explicitly to quality. goals. No recommendation can be achieved with actors working in isolation and possibly in different Learning and promoting skills for the labor market directions. It is important to work toward alignment A key goal of education is the development of and a coherent vision. With Indonesia’s complex skills that can be used after leaving school. This system and multiple actors, this takes on particu- can come in the form of many tracks. For techni- lar relevance. Just as the framework above shows cal and vocational skills, Recommendation 10: Ex- how all actors in the system must work toward pand access and improve the quality and relevance supporting the system and directing key elements­ of TVET recognizes the importance of expanding —­ teachers, students, management, and inputs­ —­ technical and vocational education and training toward learning, the recommendations consider to meet the rising demand, but also balancing the who, what, and how of implementation (as laid the expansion with robust accountability mecha- out in detail in the chapters themselves). nisms. For TVET to meet the demands of the labor market, a critical step is to improve information of Equity as a key consideration and driver for labor market needs and guide the overall skill de- directing support to those who need it most velopment system with strong participation from There is a common theme in the chapters and rec- the private sector. For the tertiary system, Rec- ommendations of supporting the disadvantaged­ ommendation 11: Improve the quality, relevance, —­those with disabilities, those lagging or under- and equity of the tertiary education sector, areas performing, or those with less equitable access. to address include increasing Indonesia’s tertiary For each element of the system, it is important to enrollment levels and improving equity, improving consider aspects of equity and ensure support for quality and relevance, strengthening research and those who are most vulnerable or lagging, whether technology transfer, modernizing governance and students, schools, districts, or provinces. management, and defining a sustainable financing strategy. Measurement for understanding, decision- Indonesia has made great progress on its jour- making, and directing ney to build human capital, but these achievements Measurement can play a role in assessing the sit- are threatened on multiple fronts. Climate change uation, determining progress, directing support is a driver of extreme weather events that can lead and resources, and putting in place mechanisms to to extended school closures and sometimes loss of encourage progress and achievement. Indonesia life. Earthquakes and other natural disasters can does collect a good amount of data, but the sub- threaten education service delivery, sometimes sequent steps for effective analysis and decisions across large areas for extended periods of time. based on that analysis are critical. In some cases, Other threats such as disease can challenge entire the measures can be used for accountability. But economies and societies as we have seen with the to avoid tainting or distorting the results, they current pandemic. Indonesia can support human should not be explicitly tied to accountability. capital development by increasing the resilience of the education system to shocks, for example by se- Political economy considerations curing data systems, improving distance teaching In considering the who, what, and how aspects and learning capacities, and improving infrastruc- for the goals and recommendations, the politi- ture for energy efficiency and against hazards. In- cal economy dimension is important. Sometimes creasing the resilience of the system is challenging the best solution from a technical perspective and will require investment, but it is necessary to is not feasible from a political perspective, so Managing Indonesia’s multiple systems for learning  •  149 implementation constraints and political economy Teachers factors must be considered. Indonesia’s complex Improving the quality of teachers and school prin- system requires careful consideration of what is cipals by improving recruitment systems, improv- feasible. ing the quality of training, and assessment, and developing community-learning platforms. This Looking forward includes Guru Penggerak, a new generation of New leadership has enacted major reforms in a school teachers provided with additional training short time period. The ministries of MoEC and and on-the-job coaching, who will serve as a re- MoRA with support from MoH and MoHA have source within their school and area. moved quickly to support learning while schools are closed due to COVID-19 (Joint Decree on Guid- Systems ance Learning Implementation during Covid-19 • Building a technology platform to encourage Pandemic. 2020). The Minister of Education and stakeholder collaboration, and improving learn- Culture­—­along with the cabinet and under the ing effectiveness through a flexible approach, —­ guidance of the president­ has enacted or is plan- and upgrading the National Education Platform ning “Freedom to Learn” reforms across the fol- in five years, starting with the BOS marketplace. lowing areas: • Planning for supporting technological facilities and infrastructure. Assessment • Adjusting curriculum, pedagogy, and assessment • USBN (graduation exam) abolished. methods to nurture appropriate competencies • National Exam (UN) abolished. for future generations. This includes a simplified, • Teacher’s Lesson Plan no longer required. flexible, and competency-oriented curriculum • A Minimum Competency Assessment (AKM) as well as personalization and segmentation of that measures school performance based on learning based on periodic assessments. student literacy and numeracy, the core com- • Increasing collaboration with local governments petencies for international tests such as PISA, to ensure equitable distribution and working TIMSS, and PIRLS proposed. This would include with local governments through a personal and a Character and Learning Environment Survey consultative approach and meritocracy. to measure noncognitive aspects to get a holis- • Providing incentives for private sector contribu- tic picture of the quality of education. tions and collaboration in the field of education through CSR funds, tax incentives, public private Schools partnerships, autonomy, and greater profits. • Implementing collaboration and coaching be- • Increasing credibility and improving accredi- tween schools (SD–SMP–SMA, informal edu- tation mechanisms through data-based and cation): Collaboration and coaching between voluntary processes, increased community in- schools through Sekolah Penggerak (mover volvement, and making global comparisons. schools), peer learning programs, joint adminis- tration management, and value-based informal Tertiary education education. This includes a pilot project with 100 • Reduce the role of central government in creat- Sekolah Penggerak or mover schools in sup- ing new degree programs. Accreditation valid portive provinces, to spearhead the Freedom for 10 years, and can be done internationally. to Learn initiative through mentoring, peer sup- • Autonomy status granted on request. port, and technology utilization in the school • Student flexibility in study programs. ecosystem. The Sekolah Penggerak will be a • Industrial ownership and autonomy of vocation- catalyst to transform the surrounding schools al education promoted. Industry or associations and become a center for teacher training. are involved in curriculum development, learn- • Transferring BOS directly to schools from MoF. ing is encouraged, and education is funded • Increasing the proportion of BOS that can be through private sector contributions or CSR. used to support teacher salaries. • A vocational education collaboration model • Increasing the value of BOS. linked to industry and the world of work; a flex- • Improving BOS reporting. ible pathway between secondary and higher • Adapting school zoning to be more flexible. education. • Building classrooms and learning spaces in the • A link and match technology platform as a stu- future that are creative, collaborative, and expe- dent career planning tool, developed by stake- rience-based, and supported by technology­ —­ holders—industry, professional associations, but are also safe and inclusive. and so on­ —­and facilitated by the government. 150  •  The Promise of Education in Indonesia This incomplete list is still evolving, and aligns Rogers, H. and S. Sabarwal. 2020. The COVID–19 Pan- with many of the recommendations in the preced- demic: Shocks to Education and Policy Responses. ing pages. Most of the changes to date have been Washington, DC: World Bank. https://openknowledge. within the purview of MoEC, but it is expected that worldbank.org/handle/10986/33696. further changes will be enacted in cooperation UNESCO (United Nations Educational, Scientific, and Cul- with MoRA, MoHA, MoF, and other ministries and tural Organization). 2004. Early Education Financing: local governments. What is Useful to Know? UNESCO Policy Brief on Early To achieve their aims, these reforms need to Childhood, No. 23, May. https://unesdoc.unesco.org/ be implemented and sustained over time. This re- ark:/48223/pf0000137412. quires that the new policies be embraced at the World Bank. 2018a. Growing Smarter: Learning and Equi- district and province level and supported fully by table Development in East Asia and Pacific. Washing- MoEC and other ministries. Not meeting these ton, DC: World Bank. doi:10.1596/978–1-4648–1261–3. challenges has hindered the impact of earlier World Bank. 2018b. World Development Report 2018: reforms. Learning to Realize Education’s Promise. Washing- ton, DC: World Bank. https://www.worldbank.org/en/ Concluding statement publication/wdr2018. The Indonesian education system has a great deal High Frequency Household World Bank. Forthcoming.  of promise. To capitalize on that promise, student Surveys 2020. Washington, DC: World Bank. learning should be a focus and underlying driver Wong, A. 2017. “Insights from East Asia’s High-Performing in improving the country’s education system. This Education Systems: Leadership, Pragmatism, and Con- report has focused on learning and how, for every tinuous Improvement.” Background paper for Growing aspect and at every level of Indonesia’s education Smarter: Learning and Equitable Development in East system, the question should be asked: What can Asia and Pacific. Washington, DC: World Bank. the government do to shift the focus to improve Yarrow, N., E. Masood, and R. Afkar. 2020. Estimated learning? Looking ahead, improving learning is Impacts of COVID-19 on Learning and Earning in In- about the context and how policies and interven- donesia: How to Turn the Tide. Jakarta: World Bank. tions are implemented. Large improvements in In- http://documents1.worldbank.org/curated/en/18465 donesia’s human capital depend on shifting how 1597383628008/pdf/Main-Report.pdf. the education system operates, specifically align- Yarrow, N., E. Masood, and R. Afkar. Forthcoming. Mea- ing and strengthening the capacities, effective- suring the Quality of Education Services in Indonesia. ness, autonomy, and accountability of teachers, Jakarta: World Bank. principals, and local, regional, and national actors and institutions. Government laws and regulations Joint Decree on Guidance Learning Implementation during References Covid-19 Pandemic. 2020. https://ditpdpontren. Azevedo, P.J., G. Koen, D. Goldemberg, A. Hasan, and kemenag.go.id/web/wp-content/uploads/2020/06/ S.A. Iqbal. 2020. “Country Tool for Simulating COVID– SKB-PEMBELAJARAN-TA-BARU-MASA-COVID-19. 19 Impacts on Learning and Schooling Outcomes, Ver- pdf. sion 5.” World Bank, Washington DC. MoEC Circular Letter No. 4/2020 on Implementation of Ed- Hadi, Aulia. 2018. “Bridging Indonesia’s Digital Divide: ucation Activities in the COVID-19 Emergency Period. Rural-Urban Linkages?” Jurnal Ilmu Sosial dan Ilmu https://jdih.kemdikbud.go.id/arsip/SE%20Menteri%20 Politik. 22 (17). Nomor%204%20Tahun%202020%20cap.pdf. Managing Indonesia’s multiple systems for learning  •  151 Acknowledgments This report was prepared by a team led by Noah Timor Leste) and Toby Linden (Practice Manager, Yarrow and Andy Ragatz, comprising Rythia Afkar, Education, East Asia and Pacific). Lestari Boediono, Petra Bodrogini, Jonthon Couslon, Sangeeta Dey, GB Surya, Jerry Kurniawan and Maulyati Nuraini Deepali Gupta, Susiana Iskandar, Ratna Kesuma, provided support on the website and launch event. Citra Kumala, Javier Luque, Sylvia Njotomihard- A team at Communications Development Incor- jo, Rosfita Roesli, Jamil Salmi, Santoso, Sheldon porated, led by Bruce Ross-Larson and including Shaeffer, Dewi Susanti, Ruwiyati Purwana, Alexan- Joe Brinley, Joe Caponio, Jeremy Clift, Meta de der Michael Tjahjadi, and Wisnu Harto Adi Wijoyo. Coquereaumont, Mike Crumplar, Peter Redvers- The team is grateful to the peer reviewers Kathleen Lee, Christopher Trott, and Elaine Wilson, edited, Whimp and Fadila Caillaud, as well as to Camilla designed, and laid out the report. Holmemo for inputs and guidance. The report was Funding from the Australian Government, De- prepared under the overall guidance of Satu Kris- partment of Foreign Affairs and Trade, supported tiina Kahkonen (Country Director, Indonesia and the report’s research and production. 152 • Notes 1. State Address, August 2019. 16. Approximately 61 percent of those who have completed sec- 2. Indonesia Country Note: Programme for International Student ondary education are in what is classified as unskilled work Assessment: Results from 2018: https://www.oecd.org/pisa/ and have an income that is about half of those in skilled work. publications/PISA2018_CN_IDN.pdf. Skilled workers on average had a monthly income Rp 1,744,549, 3. MoRA constitutes 15 percent of the pretertiary education sys- while unskilled workers have a monthly income of Rp 913,767. tem and is not decentralized. 17. World Bank estimates based on data from PISA 2003 and 2018 4. World Bank based on MoEC data 2019. https://hasilun.puspendik (OECD 2004 and OECD 2019) .kemdikbud.go.id. 18. Based on projections of the 2015 population survey (SUPAS), 5. Ministry of Education and Culture statement, December the population of primary age children has already begun to 2019,  https://www.kemdikbud.go.id/main/blog/2019/12/ decline. However, the rate of decline is slow; the number of In- mendikbud-tetapkan-empat-pokok-kebijakan-pendidikan donesian children age 5–9 in 2018 is estimated at 22,043,000, -merdeka-belajar. while the number of children age 5–9 in 2025 is estimated at 6. http://lldikti12.ristekdikti.go.id/2016/12/15/mayoritas-lptk 21,906,000. -belum-terakreditasi.html. 19. The higher education function of the Ministry of Research, 7. For a study report on working groups for teachers, princi- Technology, and Higher Education (MoRTHE) was transferred pals, and school supervisors as a forum and support network to the Ministry of Education and Culture in October 2019. for continuing professional development (June 2019), INO- 20. This proportion includes the general allocation fund (DAU), VASI with MoEC did a case study on working groups in West with an estimated amount going to education. The amount Nusa Tenggara highlighting the issues and showing they going to education from this unconditional grant is estimated have improved learning outcomes. https://www.inovasi.or.id/ by MoF and does not represent actual reported expenditures wp-content/uploads/2019/07/19_07_19-INOVASI-KKG-KKKS by subnational governments, because actual reported expendi- -Study-ENG.pdf. ture amounts by subnational governments in education are not 8. The higher education function of the Ministry of Research, tracked. Technology, and Higher Education (MoRTHE) was transferred 21. MoRA, a centralized ministry, was allocated Rp 52 trillion for to the Ministry of Education and Culture in October 2019. general education in 2019. 9. Minister of Kemendesa said in a virtual conference that the 22. A specific amount of the DAU is allocated by the Ministry of Villages Fund could be used to provide free internet. https:// Finance (MoF) for education; however, the amount of DAU ac- republika.co.id/berita/qej3iy335/mendes-dana-desa-bisa tually spent on education by subnational governments is esti- -untuk-penyediaan-internet-gratis. In Kominfo, village heads mated (for allocation not execution). were urged to optimize the village fund to building internet in- 23. MoRA constitutes 15 percent of the pretertiary education sys- frastructure. https://kominfo.go.id/content/detail/11946/kepala tem and is not decentralized. -desa-diimbau-optimalkan-dana-desa-untuk-bangun 24. h t t p s : / / d a t a . wo r l d b a n k . o r g / i n d i c a t o r / S E . S E C . N E N R -infrastruktur-internet/0/sorotan_media. In Central Java a ?locations=ID&view=chart. village head in Central Java found a way to solve the inter- 25. Rapid Assessment of the Indonesian PISA 2018 results. net quota problem. https://www.beritasatu.com/jaja-suteja/ 26. In partnership with the Ministry of Education and Culture nasional/660479/pakai-dana-desa-kades-di-jateng-atasi (MoEC), the Ministry of Religious Affairs (MoRA), and the -problem-kuota-dengan-internet-gratis. In Bengkulu, the re� - United States Agency for International Development (USAID/ gent of South Bengkulu asked all village heads to install internet Indonesia), RTI International administered the two surveys to connections in all villages with funding from village fund. https:// 4,812 grade 2 students, equally divided between boys and girls bengkuluekspress.com/optimalisasi-dd-pasang-internet-desa/. and equally allocated across the four proposed “regions” of 10. https://indonesia.unfpa.org/sites/default/files/pub-pdf/ (1) Sumatra and its adjacent islands; (2) Java and Bali; (3) Ka- Proyeksi%20Penduduk%202015–2045_.pdf. limantan, Sulawesi, and its adjacent islands; and (4) the “MNP” 11. Based on PPP measured GDP, purchasing power parity (PPP) region, consisting of Maluku, East Nusa Tenggara (Nusa Teng- measures prices of different areas using a common good or gara Timur [NTT]), West Nusa Tenggara (Nusa Tenggara Barat goods to contrast the real purchasing power between different [NTB]), and Papua islands (Eastern Region). currencies. PPP exchange rates are widely used when compar- 27. An example is the 2013 curriculum reform, hastily rolled out, ing GDPs from different countries. then rolled back by the subsequent administration. 12. New World Bank Country Classifications Income Level 2020– 28. https://www.inovasi.or.id/wp-content/uploads/2019/10/Policy 2021. https://blogs.worldbank.org/opendata/new-world-bank -Brief-7-Literacy-2011–2019.pdf. -country-classifications-income-level-2020-2021. 29. For the purposes of the Flagship, the term early childhood edu- 13. Macro Poverty Outlook, June 8, 2020 update, with the Indone- cation and development (ECED) will be used to represent PAUD. sia value imputed: https://www.worldbank.org/en/publication/ 30. The term PAUD (Pendidikan Anak Usia Dini) is commonly used macro-poverty-outlook. by MoEC to refer to early childhood education and develop- 14. Education funding of 20 percent of the national budget is man- ment (ECED) as a sector, as well as a specific service that de- datory based on Law No. 1945, chapter 31 point 4 and Law livers childcare and early learning services to children ages 0–6 No. 20/2003 chapter 49 on National Education System. Aver- in Indonesia. This report uses the term “ECED” when referring age national education spending as a share of national spend- to the former, and “PAUD service” when referring to the lat- ing from 2008 to 2018 was 18.5 percent (World Bank COFIS ter. It should be noted that many countries and development Database). agencies in the world have expanded the age range of early 15. According to UNESCO Institute for Statistics, Indonesia’s ex- childhood to cover 0–8 years or age­ —o ­ r even conception to 8 penditure on education as a percent of GDP was 3.6 percent, years­ —­ to include care of pregnant women. lower than 4.7 percent in Malaysia, 4.3 percent in Vietnam, and 31. It established a multiagency task force to facilitate coordination 4.1 percent in Thailand. in implementing HI-ECD. At the national level, the task force Managing Indonesia’s multiple systems for learning  •  153 is chaired by the Coordinating Ministry for People’s Welfare Education Funds and APBD per district analyzed from Neraca (Kemenkokesra)­ —­ this ministry was abolished in 2014 and its Pendidikan Daerah NPD by MoEC at https://npd.kemdikbud. duties transferred to Kemenko PMK­ —­ and jointly cochaired by go.id/. the National Planning Agency (BAPPENAS) and the Ministry 44. Ministerial Regulation No. 137/2014 in Article 37 of Chapter 10 of Home Affairs. The membership comprises eight ministries on the Financing Standard explained that operational funding including both MoEC and MoRA. In 2019, the Coordinating covers salaries and entitlements of teachers and education Ministry of Human Development and Culture (Kemenko PMK) personnel, organization of learning programs; procurement issued Ministerial Regulation No. 1/2019 about Sub-Task Forc- and maintenance of facilities and infrastructure, and human es to reassure support to the HI-ECD multiagency task force resource development. Personal funding covers education and to implement the Presidential Regulation No. 60/2013. In costs spent for children participating in the learning process. Indonesian, HI-ECD is also called PAUD, but the “P” stands for Preschool accreditation includes checking evidence of imple- “pengembangan” (development) rather than “pendidikan” (ed- mentation of the eight PAUD National Standards, including the ucation) as used by MoEC. financing standard­ —­per Government Regulation No. 13/2015, 32. MoEC issued the Ministerial Regulation No. 137/2014 on the Article 1 (1.11, 1.15, and 1.32), and the 2019 Accreditation instru- National Standards for Early Childhood Education and Ministe- ment in SISPENA 2.0. rial Regulation No. 146/2014 on the 2013 Curriculum for Early 45. As per Ministerial Regulation No. 137/2014 issued by MoEC. Childhood Education. 46. In 2019, DAK Fisik or Physical Special Allocation Funds are sub- 33. https://www.paud.id/2015/03/download-permendikbud-137 ject to Presidential Regulations (such as PERPRES 88/2019). -tahun-2014-standar-paud.html; https://luk.staff.ugm.ac.id/atur Ministerial Regulations by MoEC elaborated further on the /bsnp/Permendikbud137–2014StandarNasionalPAUD.pdf. type of DAK Fisik (such as MoEC Regulation No. 1/2019, At- 34. http://anggunpaud.kemdikbud.go.id/images/upload/images/ tachment 2 on DAK Fisik PAUD) to include construction, recon- Kurikulum/Permendikbud_146_Tahun_2014.pdf. struction, and rehabilitation of classrooms. But, until 2019, con- 35. The education Ministerial Regulation No. 32/2018 elaborated struction of new preschool buildings and premises was funded on the government regulation, including specifying that dis- by Bantuan Pemerintah (government assistance) managed by tricts/municipalities provide basic kits­ —­per child, per semes- line ministries (in this case MoEC). In 2019, such government ter, and in new condition­ —­to preschools that include 6 draw- assistance was limited to disadvantaged, frontline, and remote ing books and coloring packs of 12 colors. areas of Indonesia (PerDirjen PAUD Dikmas 36/2019, based on 36. The government of Indonesia is yet to issue a specific regula- Permenkeu 173/PMK.05/2016). tion to focus on early learning and stimulation for younger chil- 47. Up to 2016, Ministerial Regulations on BOP–PAUD issued dren, especially children ages 0–2 at risk of stunting. by MoEC prioritized children ages 4–6 (MoEC Regulation 37. Presidential Regulation No.  60/2013 allowed districts/cities No.  2/2016, Attachment 1 on Technical Guidelines, Section and provinces to form local multi-sector HI-ECD task forces to E). Prioritizing ages 4–6 allowed any remaining balance of coordinate implementation of early childhood development. In BOP–PAUD to be used by districts/cities to support younger contrast, the mandatory public service of early childhood ed- children below age 4, based on Article 3.3 of MoEC Regula- ucation for children ages 5–6 was regulated only recently in tion No. 2/2016. A year later, MoEC issued the Ministerial Reg- 2018 (Government Regulation No. 2/2018). ulation No. 4/2017 in which the prioritization of children ages 38. SEAMEO CECCEP and UNESCO Bangkok, Regional Guide- 4–6 as BOP–PAUD recipients was omitted. Ever since, BOP– lines on Innovative Financing Mechanisms and Partnerships for PAUD has targeted all children ages 0–6 as long as they are Early Childhood Care and Education, 2019. registered in DAPODIK (MoEC’s EMIS). The recent Ministerial 39. Based on information from the Ministry of Trade (http://statis� - Regulation No. 4/2019, Article 1.3 and Article 1.4, recognized tik.kemendag.go.id/gross-domestic-product), the 2018 GDP children ages 0–6 serviced by PAUD (early childhood educa- was Rp 14,837 trillion. With Rp 444.1 trillion of education fund- tion), by a definition of what PAUD is, as recipients of BOP– ing, % GDP on education was 2.99 percent. ECED expenditure PAUD. This recognition is in line with the mandate of the Ed- by proxy of budget allocation at MoEC was Rp 5.87  trillion ucation Law (Sisdiknas 20/2003) for PAUD to service children which made % GDP on ECED to be 0.0396 percent, in edu- ages 0–6. cation sector alone. The Rp 5.87  trillion was calculated from 48. As mandated by Education Law No. 20/2003 Chapter 49 item Rp 4.07 non-physical, special allocation funds (DAK Non- 1. https://kelembagaan.ristekdikti.go.id/wp-content/uploads/ Fisik) and Rp 1.8 trillion of ECED funds. Data on 2018 educa- 2016/08/UU_no_20_th_2003.pdf. tion funding and ECED funding: https://www.kemdikbud.go. 49. https://kemsos.go.id/program-keluarga-harapan-pkh. id/main/index.php/files/large/9e8cc44fd989632 and https:// 50. https://indonesiapintar.kemdikbud.go.id/. banpaudpnf.kemdikbud.go.id/upload/download-center/ 51. The ACDP 033 report on ECCE policy options and roadmap Paparan%20Dirjen%20PAUD%20DIKMAS%20-Kebijakan%20 (ACDP 2017, p. 13) suggested that the government start analy- dan%20Mekanism_1552711148.pdf. sis of current costs and ECED financing and calculate the re- 40. Early Childhood Education and Development in Indonesia: An quired budget to achieve universal preprimary enrollment by Assessment of Policies Using SABER (World Bank, 2015).http:// 2030. Similarly, the World Bank report on ECED in Indonesia wbgfiles.worldbank.org/documents/hdn/ed/saber/supporting_ (2015, p. 41) suggested using formulas (such as capitation with doc/CountryReports/ECD/SABER_ECD_Indonesia.pdf. possible targeting to the most vulnerable) to inform ECED 41. Regional Guidelines on Innovative Financing Mechanisms budgeting. and Partnerships for Early Childhood Care and Education 52. https://referensi.data.kemdikbud.go.id/index21.php. (ECCE), retrieved from https://unesdoc.unesco.org/ark:/48223/ 53. Equivalent data not available for formal PAUD,i.e. kindergarten. pf0000371189. The 10 percent figure was proposed by Zubairi 54. http://anggunpaud.kemdikbud.go.id/index.php/berita/index� - and Rose (2017) of the REAL Centre, University of Cambridge, /20200515164843/40-Orangtua-Murid-PAUD-Kesulitan-Ba- in Bright and Early: How financing pre-primary education gives yar-Uang-Sekolah and https://mediaindonesia.com/read/ every child a fair start in life­—­Moving towards quality early detail/312130-survei-kemendikbud-gaji-49-guru-paud childhood development for all. -terkendala-selama-pandemi#. 42. https://banpaudpnf.kemdikbud.go.id/upload/download 55. In the text that follows, “parent” refers also to primary caregiv- -center/Paparan%20Dirjen%20PAUD%20DIKMAS%20 ers who are most likely to be older members of the child’s ex- -Kebijakan%20dan%20Mekanism_1552711148.pdf. tended family. 43. Data sources: ECED allocations from monitoring reports by 56. https://elibrary.worldbank.org/doi/pdf/10.1596/978-1 the ECED Frontline Pilot and from RENJA Dinas Pendidikan; -4648-0621-6. 154  •  The Promise of Education in Indonesia 57. Data extracted from UIS.Stat on May 15, 2020, 09:59 UTC 77. https://indonesiaatmelbourne.unimelb.edu.au/mother (GMT). -tongue-language-education-improving-education-quality 58. MoEC’s DAPODIK estimates the actual preprimary enrolment -while-preserving-culture/. rate for 3–6 year olds at 38.8 for 2018, while SUSENAS esti- 78. The INOVASI program is a partnership between the govern- mates it at 37.3. ments of Australia and Indonesia to understand how student 59. See also World Bank (2013). learning outcomes in literacy and numeracy can be improved in —­ 60. The official age of entry for grade 1 is 7­ unusual in the region­ diverse primary schools and districts across Indonesia. It works —­ and many exceptions make possible a large enrollment of 6 in a range of locations across Indonesia, using a locally focused year olds (and even 5 year olds) in grade 1. approach to develop pilot activities and find out what does and 61. This underage enrollment also inflates the data used to mea- does not work to improve student learning outcomes. https:// sure SDG indicator 4.2.2­ —­the participation rate in organized www.inovasi.or.id/en/ learning (one year before the official primary age), by sex­ —­ by 79. https://www.inovasi.or.id/wp-content/uploads/2019/10/Poli� - including in these data children 5–6 years of age and already cy-Brief-2-Mother-Language-2011–2019.pdf. enrolled in primary school. 80. Indonesia 2014: The National Early Grade Reading Assessment 62. The high GER for Yogyakarta­ —­despite ranking 26 out of 34 (EGRA) and Snapshot of School Management Effectiveness provinces in terms of gross regional product per capita (https:// (SSME) Survey Report of Findings. RTI International. https:// en.wikipedia.org/wiki/List_of_Indonesian_provinces_by_GRP_ ierc-publicfiles.s3.amazonaws.com/public/resources/Indone- per_capita#Per_Capita_Data)­ —m­ ay relate to the fact that is it sia_EGRA_SSME.pdf. is renowned as a city of education with a large student popula- 81. Analysis from UNICEF. tion and dozens of schools and universities. 82. A new tool­ —­Profil Belajar Siswa (Special Needs Student 63. Equivalent data is not available for teachers in the nonformal —­ Profile)­ has been introduced to improve data on disabilities ECE. in Indonesian schools. See http://pgdikmen.kemdikbud.go.id/ 64. In terms of the longer-term impact of access to playgroup profil-belajar-siswa/. services by age of enrollment, Hasan et  al. (2019) find that 83. https://www.inovasi.or.id/wp-content/uploads/2019/10/Policy the younger cohort enrolled at age 3 had substantially higher -Brief-2-Mother-Language-2011–2019.pdf. scores in early grades in primary school relative to the older co- 84. http://lldikti12.ristekdikti.go.id/2016/12/15/mayoritas-lptk hort enrolled at age 4. -belum-terakreditasi.html. 65. See Indonesian Economic Quarterly, December 2017. 85. Bocoran Tes CPNS: 8.500 Soal, Disusun 100 Orang, 16 Jan- 66. The World Bank’s report on ECED in Indonesia (2015) indicated uari 2020, CNBC Indonesia, retrieved from https://www. that 71 percent of all public education spending on ECED was cnbcindonesia.com/news/20200116134439–4-130495/ provided by districts. Provinces were funding 3  percent, and bocoran-tes-cpns-8500-soal-disusun-100-orang/1. the central government 26 percent. The report also noted a de- 86. For example, an Evaluation for Academic Performance team cline in the share of central government funding from around established by MoRTHE found that the quality of education 4 percent in 2011 to around 2 percent in 2013. in LPTKs had deteriorated significantly (http://sumberdaya. 67. https://openknowledge.worldbank.org/bitstream/handle/ ristekdikti.go.id/index.php/2017/07/11/menyoal-pendidikan 10986/5988/WDR%202006%20-%20English.pdf. -calon-guru), and the School Teacher Group Federation Indo� - 68. Indonesia Country Note: Programme for International Student nesia (FSGI) said that many of LPTK graduates want to work in Assessment: Results from 2018: https://www.oecd.org/pisa/ industry and not become teachers(https://tirto.id/fsgi-lulusan publications/PISA2018_CN_IDN.pdf. -lptk-cenderung-pilih-kerja-daripada-jadi-guru-dDHy). 69. Under the KIP program, all children of school going age (ages 87. https://www.antaranews.com/berita/1193559/laporan-pisa 6–21) whose families are part of the Family Welfare program -2018-hanya-satu-persen-bekerja-seperti-mas-menteri. automatically receive a KIP and benefit from the program 88. The staffing formula allocates at least six grade teachers, a if they are registered in a school (either private or public and head teacher, a religion teacher, and a physical education at all levels, including Islamic schools and boarding schools), teacher per school. part of a nonformal education study group (study packages 89. As a good practice example at subnational level, the A/B/C), or enrolled in a training course. This includes children Probolinggo District Government has shown success in their of school-going age who are no longer in school, to encourage commitment to scale out multigrade pilots supported by INO- them to resume their education. The program involves the co- VASI to all small schools and to make significant efficiencies operation of the Ministry of Education and Culture, the Ministry in teacher deployment. More information can be found on of Social Affairs, and the Ministry of Religious Affairs. Children this in INOVASI multigrade policy brief: https://www.inovasi. in primary education receive Rp 450,000 per year; lower sec- or.id/wp-content/uploads/2019/10/Policy-Brief-4-Multi-grade ondary education, Rp. 750,000; and upper secondary educa- -Teaching-2011–2019.pdf. tion, Rp 1,000,000. In 2018, almost 10 trillion rupiah (about 90. The 2007 BEP found, for example, that principals tend to focus US$700 million) were spent on the program. on administrative aspects of the performance appraisal system 70. https://www.unicef-irc.org/publications/pdf/IWP3%20-%20 and that neither they nor the supervisors are well prepared to ac- Towards%20Inclusive%20Education.pdf. cept responsibility for appraisal. Supervisors also tend to focus 71. This is at least partly due to different definitions of what rep- on administrative rather than quality issues. The report conclud- resents a “countable” disability, with Indonesia’s data focusing ed that principals need support to develop the skills that will on “severe” disabilities. enable them to play their mandated role in managing teacher 72. BPS 2019 data reported in “Teaching disabled: Inclusive edu- induction, probation, performance assessment and appraisals; cation remains a challenge,” Jakarta Post, December 9, 2019. mentoring, promoting and sanctioning of teachers; the dissem- 73. World Bank calculations using Population Census 1971 and ination of information about teacher performance to the local SUSENAS 2017. community and local government; and accountability of overall 74. World Bank Indonesia 2018 PISA Brief. school performance. Similarly, supervisors need support in de- 75. http://timss2015.org/wp-content/uploads/filebase/full veloping the competencies required of them; e.g., knowledge of percent20pdfs/T15-International-Results-in-Mathematics curriculum subjects (especially those included in new curricula) -Grade-4.pdf. and skills in teacher performance assessment and support. 76. https://remoteschoolpapua.org/wp-content/uploads/ 91. Based on PP 19/2017 the principal has the core tasks of man- 2018/08/FINAL-REPORT-ACDP-023-April-25–2017.pdf. aging the school, raising and controlling school finances (i.e., Managing Indonesia’s multiple systems for learning  •  155 an entrepreneurial function), and supervising of teacher and trust fund, financed by the Australian Government and World education personnel. Bank. It aims to support the Indonesian Government to im- 92. Overview of Education and Cultural Data 2017/18. prove the effectiveness and efficiency of its education system 93. Kementerian Komunikasi dan Informatika. (January, 2020) In- at all levels (national, subnational and school), through analysis donesia Signal Coverage. Presented at National ICT Council and technical assistance. (Wantiknas) Focus Group Discussion, Jakarta. 101. SISLATKERNAS is a mandate of Government Regulation No. 94. See https://e-katalog.lkpp.go.id/. 31/2006, that is also reiterated in the line ministries to govern 95. For full discussion see Bhardwaj, R., and Yarrow, N. with Calì, its implementation in different sectors. M. 2020. EdTech in Indonesia: Ready for Take-off? Jakarta: 102. Only 2.4 percent of the population age 20–24 years old from World Bank Group. the lowest economic quintile are enrolled in tertiary education 96. https://www.bps.go.id/pressrelease/2019/02/06/1619/ (Susenas, 2018). ekonomi-indonesia-2018-tumbuh-5–17-persen.html. 103. https://www.kemdikbud.go.id/main/blog/2019/12/mendikbud 97. https://bos.kemdikbud.go.id/index.php/news/detail/5777fef8 -tetapkan-empat-pokok-kebijakan-pendidikan-merdeka bb1e14e0469913af. -belajar. 98. The Junior Secondary NES questionnaire contains 595 ques- 104. Early estimates of COVID-19 impact based on the latest avail- tions for school principals, 563 for supervisors, 547 questions able data from DAPODIK and EMIS, March 2020. for each teacher, 162 questions for students, and 188 questions 105. See for example: https://www.kemdikbud.go.id/main/blog/ for school committee (Kemendikbud 2018). 2020/07/tekankan-prinsip-keberlanjutan-mendikbud 99. https://kemenag.go.id/file/dokumen/PP1905.pdf. -sampaikan-target-merdeka-belajar-15-tahun-ke-depan. 100. The pilot is under the Improving Dimensions of Teaching, Ed- ucation Management, and Learning Environment (ID-TEMAN) 156  •  The Promise of Education in Indonesia