Towards Quality Education for Enhanced Productivity & Economic Growth in Indonesia1 Tazeen Fasih Rythia Afkar Heather Tomlinson Education is a priority for Indonesia Part 01 Fig.1. Education Spending, 2001-2014 IDR Trillion Vs (%) of GDP and spending 400 (in IDR Trillion) 19.4 (% of GDP and spending) 20 18.9 18.9 17.9 17.3 17.4 15.6 15.1 282.9 300 14.2 14.0 14.3 272.4 15 13.7 13.6 254.9 214.0 11.3 216.8 206.3 200 10 170.6 168.3 146.7 126.5 121.0 128.0 102.8 93.3 100 5 3.2 3.1 3.3 3.3 3.3 3.3 2.8 2.7 3.0 2.7 2.2 2.4 2.5 2.5 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: World Bank consolidated fiscal database using MoF(Ministry of Finance) data. Notes: District, LHS Sub-national government education spending data is only available until 2014. Ministerial Provinces, LHS breakdown of CG(Central Government) spending before 2010 is not available. CG 2016 Central–Other Ministries, LHS is revised budget data. Total government national spending comprises: 1) CG spending, including subsidies, interest payments but excludes transfers; 2) Provincial spending; and Central, LHS 3) District level spending. Total education spending comprises of CG education sector/ Central–MoRA, LHS function spending, excluding transfers, Province education sector/function spending and Central, MoEC,LHS District education sector/function spending. Note that some SNG(Sub-national Government) education spending is not captured if coded under the General Administration function. Total education spending as % national spending, RHS Total education spending (2010=100), LHS 1 USD MoRA MoEC Total education spending as % = 13,348 Ministry of Ministry of GDP, RHS Indonesian Rupiah Religious Affairs Education and (IDR) Culture Uniquely and richly diverse Economic Quarterly from geography, natural disasters, in people groups, religions, January 2017 reported that ethnic and language diversity cultures, landscapes and education spending now and socioeconomic differences, languages, Indonesia is represents a full 20.6% of Indonesia has used these nonetheless united in Indonesia’s budget. Government funds to design and implement prioritizing education. This spending on education has multiple initiatives, reforms and commitment is reflected in risen rapidly, increasing nine- policies that have effectively a constitutional mandate to fold in nominal terms from improved the education system allocate 20% of the national 2001 to 2014 (Figure 1). Over for millions of Indonesians. budget to education. The the last two decades, in spite World Bank’s recent Indonesia of challenges stemming from 2 Learning for All 9x Government spending on education has risen rapidly, rising nine-fold in nominal terms from 2001 to 2014. Indonesia is one Indonesia takes regular stock way of comparison, no low- of the few Lower of its progress by participating income countries participated in international comparative in the TIMSS 2015 or the Middle Income non- assessments, studies, and PISA 2015, and only three OECD countries who impact evaluations. It is one and five lower-middle income take regular stock of the few countries outside countries participated in of their progress the Organization of Economic the TIMSS 2015 and PISA by participating in Cooperation and Development 2015 respectively—Indonesia various international (OECD) to participate was one of them. It has also extensively in international participated in extensive studies learning assessments. assessments. For instance, examining teacher knowledge it is a committed participant and practices, early childhood in the Trends in International programs and more. Taking Mathematics and Science stock is a crucial pre-requisite Study (TIMSS), the Progress for improvements. Indonesia in International Reading has collected valuable data and Literacy Study (PIRLS), and the information on proficiencies Programme for International and trends by investing in Student Assessment (PISA). By assessments and studies. 3 Learning for All Access to Primary Education is Nearly Universal although Gaps Remain for the Poor Part 02 Enrollment rates have is at a remarkable 97%. The significantly improved such enrollment rate for junior that Indonesia now boasts secondary has increased to almost universal enrollment almost 78% from only 60% in rates in primary school. 2000; and senior secondary net Household survey data enrollment is now at 60%, also (Susenas) from 2015 show representing a steep increase primary school net enrollment from 39% in 2000. 97% Household survey data (Susenas) from 2015 show primary school net enrollment is at a remarkable 97% 78% The enrollment rate for junior secondary has increased to almost 78% from only 60% in 2000 60% and senior secondary net enrollment is now at 60%, also representing a steep increase from 39% in 2000. 4 Learning for All Although enrollment rates ECED programs, now getting infrastructure are uneven. For are still low at the ends of increasingly more children off example, whereas Java generally the education spectrum, to a strong start. Similarly, a has access to paved roads enrollment rates are rising greater share of Indonesians and electricity (85% and 99% for ECED (Early Childhood now achieves some level of respectively), Papua does not Education and Development) participation at the tertiary (21% and 29% respectively).2 and tertiary education. In level: Net enrollment rates in As a result of infrastructure 2015, Approximately 35% of tertiary education have risen challenges, household costs children ages 3-6 are enrolled from 8% in 2001 to 17% in 2015 associated with education (e.g., in some type of ECED program, (BPS, 2017). transportation, uniforms) and according to Indonesia’s Central opportunity costs, poorer Bureau of Statistics (BPS/ Enrollment rates for poor students are less likely to move Biro Pusat Statistik). This households has improved, but as far through the education percentage represents a gain work remains to be done to system as more affluent peers: from initial data collection close extant gaps. For example, 61% of children from the richest in 2001, when enrollment a substantial gap remains households reach Grade 12, reached a maximum of 22%. between the richest and poorest whereas only 23% of the poor Indonesia has made substantial quintiles at the secondary level reach that level. inroads to providing access to (Figure 2). Service delivery and 2 Calculations based on Podes 2014 data. Fig.2. Net Enrolment rates, 2000-2015 100 90 80 70 60 50 40 30 20 10 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Year (20xx) World Bank calculations Primary: National Average using Susenas various Primary: Poorest 20% years Junior: National Average Junior: Poorest 20% Senior: National Average Senior: Poorest 20%` 5 Learning for All In spite of Investments, Indonesia has high enrollments but low learning achievements Part 03 Indonesian students’ remain low. There are also Proficiency performance on international gaps favoring urban over rural levels in the assessments continues to lag students. Indonesia is not yet core academic behind regional and OECD achieving average achievement averages by approximately 3 levels commensurate with areas are not yet years of schooling. Proficiency regional peers such as Thailand, satisfactory. PISA levels in the core academic areas Malaysia or Vietnam. 2015 results, for of reading, science and math are example, find 68% not yet satisfactory. PISA 2015 However, trends are moving in of Indonesian results, for example, find 68% the right direction. Proficiency 15-year-olds of Indonesian 15-year-olds to levels rose slightly between 2012 achieve below basic proficiency and 2015 PISA assessments (see achieve below basic levels in mathematics. Lower Figure 3), and the proportion of proficiency levels than average scores were also students functioning at a basic in mathematics. found in science and reading level of proficiency in science and domains, findings that are reading has increased by 6 and commensurate with results 3 points respectively (although on the TIMSS and PIRLS it decreased by 3 points in assessments for 4th and maths). These changes are not 8th graders. The difference statistically significant. Since between students in the top initial participation in the PISA, and bottom socioeconomic Indonesia has realized gains in quintiles represents 2.3 years reading and mathematics roughly of schooling, revealing that equivalent to a year’s worth of proficiency levels for the poor schooling (World Bank, 2016). 6 Learning for All Fig.3. PISA scores, 2006-2015 560 Math Reading Science 510 460 410 360 2006 2009 2012 2015 2006 2009 2012 2015 2006 2009 2012 2015 Indonesia Source: OECD Non OECD OECD The difference between students in the top and bottom socioeconomic quintiles represents 2.3 years of schooling, revealing that the poor lag behind. 7 Learning for All Time to Renew Attention to the Quality of Education Part 04 One important key to better per capita predicts. Looking quality education is better at the trends of GDP per quality of spending. The capita and PISA scores, one Government of Indonesia country from the region which ensures adequate expenditures has performed much higher reach the education sector, than expected from its level of yet student proficiencies and income, is Vietnam (Figure 4). workforce skill sets are not It appears that Vietnam does yet satisfactory. The Minister a number of things differently of Finance recently noted that or more effectively than other a top priority for Indonesia at countries, such as promoting present is to consider not simply strong parental involvement what sectors spend, but how in students’ academic success, they spend allotted funds to closely monitoring teacher ensure maximum effectiveness.3 performance, and emphasizing student achievement and PISA 2015 scores reveal that supporting students’ confidence Indonesia also performs lower related to future academic than the trend that its GDP achievement. A top priority for Indonesia at present is to consider not simply what sectors spend, but how they spend allotted funds to ensure maximum effectiveness. 8 Learning for All Fig.4. PISA performance & GDP per capita Japan E STO N I A FINLAND CANADA Vietnam Hong Kong SAR China Korea China UNITED (B-S-J-G) S LOV E N I A KINGDOM AU ST R A L I A PISA 2015 Score in Science NEW NETHERLANDS ZEALAND GERMANY SWITZERLAND B E LG I U M DENMARK IRELAND POLAND PORTUGAL AU ST R I A N O R WAY FRANCE U N I T E D S TAT E S S PA I N SWEDEN L AT V I A CZECH R U S S I A F E D E R AT I O N REPUBLIC H U N G A RY I TA LY C R O AT I A LITHUANIA ICELAND ISRAEL M A LTA S L O VA K R E P U B L I C K A Z A K H S TA N GREECE B U LGA R I A CHILE Malaysia UNITED ARAB ROMANIA CY P R U S E M I R AT E S M O L D O VA ARGENTINA ALBANIA TURKEY TRINIDAD & TOBAGA C O STA R I CA Thailand COLUMBIA MEXICO GEORGIA MONTENEGRO JORDAN BRAZIL PERU Indonesia LEBANON TUNISIA MACEDONIA KO S OVO A LG E R I A GDP Per capita in 2015 or latest (constant 2011 International $), World Bank ICP Source: PISA Brief, World Bank, 2016 Indonesia has several points of themselves—can lead to already in place in each of entry to improve the quality improvements in student these areas that Indonesia of its spending on education. learning outcomes either ideally will continue, although Considering a student as the directly or indirectly. with refinements or a greater nucleus in a set of concentric share of investments to some circles, implementing effective Access to education is aspects of programming that policies at varying levels of necessary but it is not could lead to greater returns on proximity to the student— sufficient unless the quality of investment. through schools, teachers, education is equally high. There parents and the students are several strong programs 3 Presentation on January 17, 2017, by Minister of Finance Sri Mulyani Indrawati given at the World Bank Indonesia and CSIS launch of Indonesia Economic Quarterly January 2017. Centre for Strategic and International Studies, Jakarta. 9 Learning for All Becoming School Ready: Refining the BOS Program Part 05 The Government could enhance the poverty focus of BOS, already a priority, by adjusting for inflation and tweaking funding to provide additional funds for poor students Since 2005, the government favorable impact on enrollment specifically. 2014 guidelines for has used the Bantuan rates, especially among students the program state: “The School Operasional Sekolah (BOS or from poor households. Upon Operational Assistance (BOS) School Operational Grant) the introduction of BOS (2005) program that was launched in program to provide per- and when BOS was increased July 2005 has made a significant student financial support by a significant amount in 2009, contribution to accelerating for school operating costs household education spending the completion of the 9-year and strengthen school-based decreased particularly among compulsory education program. management. According to the poorest quintile (Figure 5). Therefore, from 2009 onwards Assessing the Role of the School the government has changed the Operational Grant Program The Ministry of Education BOS’ objectives, approach and (BOS) in Improving Education and Culture has shifted its orientation from outreach to Outcomes in Indonesia (World focus of the BOS program quality improvement” (Ministry Bank, 2014a), BOS has had a towards education quality of Education and Culture, 2014). 10 Learning for All The World Bank recommends the BOS grants allocated to that BOS policies more private schools that charge high explicitly link funding tuition fees. In addition, BOS has allocations to quality the opportunity to do more to assurances, such as achieving empower parents. Revitalizing accreditation or meeting parents’ level of awareness, national standards. The empowerment and responsibility Government could enhance the for schools through BOS poverty focus of BOS, already may link to higher emphases a priority, by adjusting for on student achievement inflation and tweaking funding and greater demand for to provide additional funds for accountability (World Bank, poor students. It could also limit 2014a). Fig.5. Household education spending per student 2002-2012 900,000 Introduction Large increase of BOS in BOS amount 800,000 IDR (constant 2012 price) 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Average spending per student for all groups Source: World Bank, 2014a Average spending per student for the poorest group 11 Learning for All Becoming Teacher Ready: Impacting Teacher Knowledge & Skills Part 06 Teacher certification is not prestige of teaching as a career were no differences in teacher correlated with improvements and the number of teachers or student test scores between in student learning outcomes. going through teacher training certified and non-certified In 2005, Indonesia passed Law programs. However, findings teachers (Figure 6). Becoming No. 14/2005, the Teacher Law, from a rigorous randomized certified does not currently requiring teachers to achieve control trial evaluation, require any demonstrated bachelor’s degrees followed discussed in Indonesia: Teacher evidence of knowledge and by certification. The policy Certification and Beyond (World skills (e.g., from exam results or has increased teacher pay, the Bank, 2015b), showed that there observation evaluations). Fig. 6. Causal effect of the teacher certification program Problems financially Threshold for supporting the household Welfare statistical significance /Motivation Having a second job Source: World Bank, Subject knowledge SMP 2012 Note: The bars represent Competency t-statistics associated Subject knowledge SD with each indicator SMP students (English) SMP students (Indonesian Language) SMP students Student (Science) Outcomes SMP students (Math) SD students –6 –4 –2 0 2 4 t-Statistics 12 Learning for All Teachers’ subject-matter in Indonesia would yield a 0.3 teachers rarely pose strategic knowledge accounts for a large standard deviation increase in and open-ended questions share of student learning, but student achievement the medium that require complex and current teacher knowledge term (World Bank, 2015b). specific student responses levels are on average low. demonstrating student Differences in teachers’ levels Teachers also need training understanding. Nearly 90% of of subject-matter knowledge to better implement student- students observed, responded has been shown to account centered approaches in the to teacher questions using for 50% of the variation in classroom. Indonesian teachers only a single word. The World student outcomes observed in have not yet fully embraced Bank recommends that the Indonesian primary classrooms. student-centered approaches. Government support teachers Results from MoEC’s teacher According to results from an to understand and become competency exam, the Ujian in-depth video study of 8th skilled with student-centered Kompetensi Guru, show that grade mathematics teachers, approaches to increase in- 57% of math teachers scored Indonesia: A Video Study of class interaction, open-ended below 50% on the exam (World Teaching Practices in TIMSS questions, inquiry-based Bank, 2015a). World Bank Eighth Grade Mathematics methods using real-world researchers estimate that a Classrooms (World Bank, 2015a), contexts, hands-on practice 1.0 standard deviation increase teacher-centered teaching and experimentation, and other in teachers’ subject-matter actually increased from 2001 methods shown to positively knowledge among all teachers (61%) to 2007 (74%). Indonesian impact learning outcomes. 13 Learning for All Improving Teacher Selection & Training Programs Part 07 Fig. 7. Selective hiring of high performing teachers can have a strong positive impact on student learning outcomes Average PISA score 460 440 OP T I M I S T IC S C ENA RIO 420 TA RGET SCENA RIO 400 PESSI M I ST IC SCENA RIO 380 360 2000 2010 2020 2030 2040 2050 Source: World Bank, 2015b Indonesia is in an elite group 200,000 more teachers annually the top candidates before when it comes to the current than can be employed each entry into training programs, popularity of teaching as a year. Instead of training more rather than after completing career, perhaps drawing more professionals than necessary, a training, has been effective in teachers than needed. Thanks more efficient approach would highly successful education in part to certification-based be to select a much smaller systems such as Singapore and increases in pay, teaching is an number of candidates into Finland. A study in Indonesia attractive career option that teacher training colleges in shows that selective hiring of draws millions of Indonesians. the first place, those with high high performing teachers can In 2015, there were over 1 levels of cognitive proficiency substantially improve learning million students enrolled in and subject-matter knowledge outcomes (Figure 7). teacher training colleges in and appropriate dispositions Indonesia, producing roughly for teaching. Selecting only 14 Learning for All Highly successful education systems such as Singapore and Finland select only the top-performing students to be trained as teachers. Indonesia will want to focus the likelihood that only highly not only on the new generation qualified candidates achieve of teacher candidates seeking certification. Lastly, connecting first certification but also on financial incentives with both the millions of teachers already certification achievement in classrooms. Refining policies and successful completion related to teacher certification of continuous professional would boost teacher development activities would knowledge and performance enhance the felt impact of levels. Requiring certification funds reserved for teacher achievement to be contingent compensation. The current on demonstrated evidence of workforce impacts students teacher competencies would every day already. They lead to a more knowledgeable will benefit from Indonesia’s and skilled teacher workforce. continuous professional Instead of relying on portfolio development systems and reviews, for example, a Teacher Professional direct testing on literacy, Management System that numeracy and subject-matter continues to strengthen and knowledge and observation- incentivize teacher learning to based evaluations of in-class impact student outcomes. performance would increase 15 Learning for All Becoming Parent Ready: Empowering Parents to Raise Student Performance Levels Part 08 In Indonesia parenting practices were relatively powerful predictors of many outcomes, representing 0.5 standard deviation related to cognitive development, for instance. Above and beyond socioeconomic development, communication a school-based management status, parenting skills make skills and general knowledge. survey had neither provided a difference in the lives of Parenting practices were any inputs into school decision Indonesian children. In a large- relatively powerful predictors of making nor volunteered in scale, longitudinal World Bank many outcomes, representing school activities, such as serving impact evaluation (Hasan et 0.5 standard deviation related as a committee member, helping al., 2013), researchers showed to cognitive development, classroom activities, or raising that good parenting practices for instance. Parenting was funds for the school. Similarly, are associated with lower particularly powerful in impacting 50% of parents never talked child behavior problems and children’s physical health. with their child’s principal and emotional problems and with 30% never talked with their higher scores on physical growth, Parental involvement in school child’s teacher (Figure 8) social competence, emotional affairs tends to be low. Over maturity, language and cognitive 80% of parents evaluated in 16 Learning for All Fig. 8. Parental participation in school affairs 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Talked with Attended Talked with Helped with Provided Served on a Volunteered your child’s Schoolwide your child’s fundraising input on how committee in the teacher meetings for principal the school (other than classroom parents budget will be school (e.g., help spent committee) with classroom activities) Multiple times Source: School-based Management Survey, Never 2010 Once Indonesia can use parenting Government could better school attendance, assignment education programs to support facilitators in terms completion and achievement. In empower parents to improve of compensation, training, addition, diversifying outreach students’ success in school. goals and guidelines, and to include parents of older Findings from a World Bank realize greater impacts on children would expand the reach review, Parenting Education in poor households by increasing of program impacts to support Indonesia (Tomlinson & Andina, contact with families to at secondary students. 2015) suggest that positive least once weekly. Given results would come from Indonesia’s high comfort level improving program content with technology, schools could and delivery and specifically take advantage of inexpensive naming education-based parent methods such as regularly behaviors or student-learning texting parents, for example, outcomes as indicators. The which correlates with improved 17 Learning for All Becoming Student Ready: Ensuring Young Children are Prepared to Succeed in School Part 09 Fig. 9. Impact of ECED on children’s outcomes All 4 years old Poor 4 years old Communication & General Knowledge Communication & General Knowledge Language & Cognitive Development Languge & Cognitive Development Physical Health & Well-being Physical Health & Well being Standardized Coefficient Emotional Maturity Emotional Maturity Social Competence Social Competence 0.5 0.4 0.3 0.2 0.1 0 –0.1 –0.2 –0.3 Source: Brinkman et. al, 2015 Note: Estimated coefficients and associated 95% intervals shown Advancing children’s school benefit from the opportunities (Hasan et al., 2013) and found readiness—making them at school. The World Bank has that participation in ECED student ready—is a critical completed several analyses programs leads to improved avenue for increasing returns demonstrating the impact of child outcomes including on investment in education early childhood education and social competence, emotional sector. Children do not possess development (ECED) programs maturity, and language and the ingredients for success in on Indonesian children, such cognitive development. Impacts school in equal measure, and the as Early Childhood Education are higher and persist over time quality of child’s experiences in and Development in Poor for children from disadvantaged school partly depends on how Villages of Indonesia: Strong households (Figure 9). ready they are to absorb and Foundations, Later Success 18 Learning for All PISA science scores of students who participated in ECED programs are 1.4 years of schooling ahead of non-participating peers. Experience in ECED programs a minimum 2 years shows As yet, program quality in rural is a significant positive the most powerful positive districts across Indonesia is predictor of children’s impacts on later child outcomes often low. To raise program developmental outcomes. For (Brinkman et. al, 2016). The most quality, programs need have example, PISA science scores cost-effective pathway through to high standards, sufficient of students who participated in the early years for poor children funding, a balanced curriculum, ECED programs are 1.4 years in rural Indonesia includes age- implementation occuring in of schooling ahead of non- appropriate entry in a playgroup alignment with program design, participating peers. Outcomes (at age 3-4) followed by entry trained, well-paid staff, strong from rural Indonesia, where into kindergarten (at age 5-6) supervision and monitoring, and early childhood programs (Nakajima et. al, 2016). data to improve and refine the provide a relatively low dose of program. exposure, show that children are However, it remains to be likely to benefit from attending emphasized that cost-benefit longer hours in pre-primary effectiveness and degree of programs; participating for impact follows program quality. 19 Learning for All Putting Education to Work: Building Skills to Meet Market Demands and Generate Growth Part 10 Fig. 10. Returns to Education by Educational Attainment Level, 2001 & 2013 0.20 0.18 0.16 0.14 0.12 0.14 0.10 0.11 0.08 0.09 0.09 0.09 0.06 0.07 0.04 0.06 0.05 0.02 0.00 2001 2013 Primary Junior Secondary Source: World Bank calculations using Sakernas data. Senior Secondary Higher New entrants into the structural transformation not one-third (35%) of employers labor force are increasingly only requires higher levels of want workers with a high becoming more educated, education and skills to boost school diploma. The demand for but there are signs of skills innovation and productivity, but higher education is reflected in mismatches. Despite the higher also necessitates more complex the higher rates of return to enrollment and completion workplace skill sets and higher education (Figure 10). Over the rates of the Indonesian labor order thinking and problem years, the marginal return to force, employers still face solving skills. Such a need primary education has reduced, difficulty to find the right skills for improved skills is limiting whereas it has increased for for their needs (World Bank, opportunities for less educated tertiary education. Therefore, 2011). At the same time, the individuals. For instance in 2002, only primary education demand for skills is increasing 61% of jobs could be filled by a achievement may no longer rapidly, and will continue worker with a primary school guarantee a pathway out of to grow with Indonesia’s education; by 2013, less than half poverty. economic transformation. (47%) of jobs allowed for that This economic growth and level of education. More than 20 Learning for All Reforms to Indonesia’s screening and counseling education and training systems activities. Effective services could allow workers to upgrade in other country settings their skills and be more include training opportunities responsive to the labor market. and unemployment benefits Incentives to better involve the to support and provide private sector could lead to opportunities to vulnerable more needs-based and results- workers. At present, Indonesia oriented trainings that are in has rigid labor market and direct response to current worker protection regulations labor market needs. Improving that may actually be causing a equitable access to trainings, net loss in terms of productivity. especially for historically Employers have a disincentive marginalized groups including to create more formal jobs and women, youth and people with workers have a disincentive to disabilities, will expand job move into better-fit jobs or get opportunities and the pool of retrained to try new jobs or qualified workers. Facilitating innovate. It would also benefit job matching services through, from supporting innovation and for example, employment entrepreneurship—high-risk services could lead to matching but high-reward endeavors that between vacancies and eligible generate economic growth. workers, as well as supporting 21 Learning for All Recommendations for achieving Learning for All and quality education in Indonesia Although Indonesia has at, sub-national levels. A solid support schools to achieve made progress in access to monitoring system equipped national standards and basic education, much work by an enforcement mechanism improve schools’ quality. remains to be done to achieve that align performance and The BOS program has been quality education in Indonesia. incentives will lead to effective supporting schools to meet Financing for education has accountability in improving the their operational needs for been prioritized through delivery of education services. over a decade. As frontline the national budget, with a More strongly linked education education providers, schools constitutionally guaranteed sub-national fiscal transfers to are the most knowledgeable 20 percent of government performance would incentivize institution in mapping the school expenditure allocated to sub-national governments to needs. Therefore, schools’ education. This reform has perform better in providing capacity to translate school been implemented within a quality education. Moreover, operational needs into effective context of decentralization a more equitable distribution and efficient school budget of education service delivery. of resources would help sub- and activity plan (Rencana Despite the various Government national governments in Kerja Sekolah/RKA) should be programs and initiatives both at disadvantaged areas improving further developed. To better central and sub-national levels their performance. Performance monitor school expenditures, in education sector, quality based budgeting requires a standardized catalogues for education remains of national credible system of performance goods and services needs to be concern. This policy note measurement. Systematic incorporated into the school recommends 5 key areas to be information on standardized budget plan. Furthermore, improved to achieve quality of measures through an education transparent school plan and education service delivery: index to monitor performance performance agreements is fundamental . Reliable and could further support schools Effective and efficient timely information about the to achieve national education education service delivery results being delivered is equally standard and improve quality. would be enhanced if  improved important to inform budget Performance agreements accountability practices decisions. With this system, should be made between are institutionalized for the central government should districts/provinces and schools the sub-national levels be able to monitor all of the and publicly available for of government. In a highly performance areas identified important stakeholders such decentralized country context in the plan and to determine as parents, school committee, like Indonesia, sub-national the progress each sub-national local education organization, governments play crucial government is making toward etc. This would promote more roles in managing service achieving the national goals. efficient and effective use of delivery, including in the BOS and enhance district education sector. Two-thirds More efficient and transparent monitoring and accountable of the education budget are utilization of BOS (School school performance evaluation. transferred to, and executed Operational Grant) can Parents would similarly be able 22 Learning for All More efficient and transparent utilization of BOS (School Operational Grant) can support schools to achieve national standards and improve school quality 23 Learning for All Improving teacher management is crucial for efficiency in education service delivery 24 Learning for All to monitor and be involved main priority tasks of sub- in student performance with national governments. Capacity greater involvement in school of local governments to create management and knowledge of and implement teacher re- school performance. distribution plan based on reliable data and analysis Enhancing teacher needs to be strengthened to competencies and effectively help schools aligned performance through with the desired Student- Continuous Professional to-Teacher Ratio (STR). The Development (CPD) could Central Government could improve quality of teaching further support by providing the and learning. Different actors right incentives and ensuring should support CPD. For all regulations and Laws are in example, schools could support place to enable districts to fully the CPD system through implement their teacher re- prioritization in annual school distribution plan. budget and activity plan of BOS funds. Teacher accountability Ultimately, expanding access and incentive system similarly to quality ECED services, needs to be strengthened. where the participation is Teacher professional allowances low and public investment is and teacher competencies lacking, will give the highest achievements, CPD, and return of investment in classroom performance education. Since 2016 the should be linked by a rigorous Government has launched performance managen system. School operational grants In this way, teachers would be for ECD centers (Bantuan more accountable and motivated Operasional Penyelenggaraan to improve their performance. PAUD/BOP PAUD) that aim to In designing performance-based provide financial support for allowance formula, rigorous ECD programs. Expansion of performance management the coverage and the unit cost system should be credible, fair, of BOP could address the main and trustworthy. This system challenges in low participation could support district to be and access to ECD centers. more pro-active and accountable Furthermore, the government for their teachers’ performance. needs to issue MSS (Minimum Ultimately, implementing Service Standards) for ECD periodic re-certification would center to apply consistent further support teachers’ standard and practices in ECD continuous improvement. services that aims to achieve quality output and uniformity of Improving teacher performance. MSS can similarly management is crucial for be used as a basis for district to efficiency in education service allocate and manage resources. delivery. Uneven distribution Like other education providers, of overall number of teachers, capacity of ECD center should and teachers with subject be further supported in better specialty, both within and planning and managing BOP across schools and districts PAUD to achieve those MSS(s). may hamper education services delivery. Identifying schools/ areas that have under-supply or over-supply of relevant teachers should be one of the 25 Learning for All Further Reading Brinkman, S. A., Hasan, A., Jung, H., Kinnel, A., Pradhan, M. The impact of expanding access to early childhood education services in rural Indonesia. in press. Journal of Labor Economics Brinkman, S. A., Hasan, A., Jung, H., Kinnel, A., Nakajima, N., Pradhan, M. (2016). The Role of Preschool Quality in Promoting Child Development Evidence from Rural Indonesia. Policy Research Working Paper 7529. World Bank. Chen, D. (2011). School-Based Management, School Decision-Making and Education Outcomes in Indonesian Primary Schools. Washington, DC: World Bank. Hasan, A., Hyson, M., & Chang, M. C., eds. (2013). Early Childhood Education and Development in Poor Villages of Indonesia: Strong Foundations, Later Success. Washington, DC: World Bank. Ministry of Education and Culture. (2014). BOS Manual. Jakarta: Government of Indonesia Nakajima, N., Hasan, A., Jung, H., Brinkman, S. A., Pradhan, M., Kinnel, A. (2016). Investing in School Readiness: An Analysis of the Cost-Effectiveness of Early Childhood Education Pathways in Rural Indonesia. Policy Research Working Paper 7832. World Bank. Tomlinson, H. B., & Andina, S. (2015). Parenting Education in Indonesia: Review and Recommendations to Strengthen Programs and Systems. Washington, DC: World Bank. World Bank. (2011). Skills for the Labor Market in Indonesia. Jakarta: World Bank. World Bank. (2012). Teacher certification in Indonesia a Doubling of Pay, or a Way to Improve Learning. Jakarta: World Bank. World Bank. (2013). Spending more or spending better: Improving education financing in Indonesia. Jakarta: World Bank. World Bank. (2014a). Assessing the Role of the School Operational Grant Program (BOS) in Improving Education Outcomes in Indonesia. Jakarta: World Bank. World Bank. (2014b). Tertiary Education in Indonesia: Directions for Policy. Human Development Sector. Jakarta: World Bank. World Bank. (2015a). Indonesia: A Video Study of Teaching Practices in TIMSS Eighth Grade Mathematics Classrooms. Washington, DC: The World Bank. World Bank. (2015b). Indonesia: Teacher certification and beyond. Jakarta: World Bank. World Bank. (2016). Indonesia PISA 2015 Brief. Washington, DC: World Bank. 26 Learning for All The World Bank Office Jakarta Indonesia Stock Exchange Building Tower II/12th Floor Jl. Jend Sudirman Kav 52-53 Jakarta 12190 P (6221) 5299-3000 F (6221) 5299-3111 W www.worldbank.org/id The World Bank 1818 H Street NW Washington, DC 20433, USA For any questions regarding this report, please contact: Tazeen Fasih (tfasih@worldbank.org) Rythia Afkar (rafkar@worldbank.org) Printed in December 2017 The photographs are copyright of the World Bank. All rights reserved.  The findings, interpretations, and conclusions expressed in this report 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. 27 Learning for All 1 This note synthesizes the knowledge base on investigate various sub- the findings of various education in Indonesia sectors of education analytical pieces conducted through several studies to effectively analyze by the World Bank in and technical assistance critical issues in depth and the education sector in partnerships, which recommend policy options. Indonesia. The World are noted at the end of Bank has supported this brief. The studies