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Indonesia economic quarterly : learning more, growing faster (English)

This edition includes a focus topic that discusses how 15 years of education reforms have helped to improve education outcomes and human capital in Indonesia, and what challenges remain. The outcomes from 15 years of educational reform have been mixed, with a significant expansion inaccess, but a large deficit in quality. In 2002, Indonesia embarked on a series of policy reforms to strengthen access to and the quality of education, both key determinants of human capital development. After 15 years, however, the results of the reforms have been mixed. Enrolments have grown significantly, but student learning remains below the levels of other countries in the region. For example, 55 percent of 15-year olds are functionally illiterate, compared to lessthan 10 percent in Vietnam. Education reform covered the right areas, but implementation challenges led to uneven results. Most elements of the reforms were aligned with international best practices and had strong potential to improve Indonesian education outcomes. Educationreform included increasing financing for education, enhancing participation of local actors in sector governance, strengthening accountability, improving the quality of teachers, and ensuring students’ preparedness as they enter schooling. Significant implementation challenges prevented the policy reform from reaching its full potential. While steps have been taken to address some ofthese challenges, further actions are urgently needed. In particular, measures need to be taken tostop growing inequality in student results, and to take advantage of the opportunity generated by the large number of teachers retiring in the next decade. Key recommendations include: defining and enforcing qualification criteria to be met by every teacher who enters the classroom, complementing the existing financing mechanisms for education with a targeted, performance-based transfer for lagging schools and districts, and launching a national education quality campaign to generate public awareness and pressure for effective action to improve student learning.


  • Author

    Diop,Ndiame, Gil Sander,Frederico

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    Working Paper

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    East Asia and Pacific,

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    Indonesia economic quarterly : learning more, growing faster

  • Keywords

    private consumption growth; oil and gas export; retail sale; current account deficit; high rates of inflation; average price of coal; Central Bureau of Statistics; higher crude oil price; intellectual property; science study; gross fixed capital formation; price of oil; macroeconomic policy framework; international good practice; barrels per day; high oil price; expenditure in education; expenditure education; quality of education; machinery and equipment; junior secondary level; annual average growth; social insurance program; credit rating agencies; national education quality; economic growth rate; physical capital accumulation; number of teachers; senior secondary level; real interest rate; global economic development; liquefied natural gas; investment in coal; quality of teacher; credit rating agency; foreign direct investment; consumer goods company; human capital development; capital goods import; component of investment; consumption of good; balance of payment; motor vehicle sale; export of goods; import of goods; government bond yield; household survey data; regional equity index; food price volatility; food price inflation; global economic growth; foreign portfolio investor; resources for education; consumer price inflation; long-term economic growth; price of crude; teacher performance appraisal; natural gas shortage; financial market volatility; financial market participant; export growth; import growth; palm oil; monetary policy; commodity price; goods export; government consumption; social spending; trade deficit; oil product; base metal; education outcome; goods trade; investment growth; coal consumption; high frequency; global financial; trade balance; Fuel Subsidies; household consumption; national account; global trade; vehicle investment; higher growth; downside risk; real gdp; coal price; social aid; Emerging economies; output growth; foreign tourist; communication sector; trade tensions; domestic demand; geopolitical tension; higher consumption; manufacturing sector; Power Generation; global commodity; processed food; edible oil; global growth; coal import; global supply; emerging economy; income account; production side; school size; fiscal deficit; banking sector; economic sector; price index; export volume; student learning; gross value; functionally illiterate; net export; la nina; school enrollment; swap agreement; rubber prices; core inflation; oil production; capacity constraint; student enrollment; real appreciation; electric vehicle; idle capacity; government revenue; prudential measures; shale oil; production loss; global demand; strategic guidance; oil demand; metal price; total trade; high remittance; policy reasons; coal usage; cleaner energy; electricity sector; energy intensity; energy intensities; price forecast; import cost; productivity growth; productivity gap; Macroeconomic Management; global merchandise; automotive fuel; household equipment; local actors; downward pressure; Hydro Power; administrative support; price cap; domestic production; Oil Export; environmental constraint; commodity producer; rising cost; education budget; global export; raw material; paper material; medium-term development; Social Welfare; agricultural product; paper product; global context; equipment investment; household expenditure; underdeveloped region; long-term growth; teacher competency; aggregate growth; quality education; expenditure growth; university degree; socioeconomic conditions; monetary condition; qualification criteria; risk financing; financial distress; public awareness; financing cost; effective action; protectionist measure; financial volatility; indian rupee; budget balance; high commodity; consumer confidence; car sale; consensus forecast; anecdotal evidence; electricity tariff; fiscal consolidation; government spending; improve revenue; fiscal management; credit worthiness; capital spending; trade flow; foreign currency; capital outflow; high spending; fiscal space; total collections



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Diop,Ndiame Gil Sander,Frederico

Indonesia economic quarterly : learning more, growing faster (English). Indonesia Economic Quarterly Washington, D.C. : World Bank Group.