M01174
Paper International Conference
ICETA – UNIPA Surabaya, 24 May 2014
Proceeding ISBN 978 – 979 – 3870 – 58 - 8
Abstract
MODEL OF FUNDING EDUCATION IN INDONESIA
( Reflection Responsibility of The Government In Improving The Quality of The Nation )
Dr. Bambang Ismanto, M.Si
bam_ismanto@yahoo.com
Satya Wacana Christian University – Salatiga - Indonesia
This paper examines the implementation of the government's responsibility in meeting the basic
education budget. The focus of this research is the government budget (APBN) expenditure
allocated for development programs in the field of education. The study was conducted through a
study of the government budget documentation and government policies concerning basic
education. These studies describe that the allocation of the budget consists of central government
spending, transfers to the regions, and financing expenses. each component of the education
budget have different procedures for planning , administration and accountability. Management
education budget is done according to the law and regulations governing public finance. Local
governments to implement the government's budget as the embodiment of decentralization of
education. The community is also obliged to bear the operational and investment needs of the
educational program.
Keywords : Funding Education, Model, APBN
Introduction
Education is a strategic program to improve the quality and competitiveness of human resources
in Indonesia. Various activities of formal, informal and non-formal educations will improve one's ability
in problem solving, and development itself. Educational output in the form of increased knowledge,
skills, expertise and control life values useful in harnessing the resources and opportunities in life.
Increased competence of a person will determine his existence in interacting with its environment. In
aggregate, increasing the quality of people's lives will improve international competitiveness. Ismanto
(2014:1), state that education is an investment in human resources and strategic importance. Human
capital investment to prepare for the knowledge , skills and values useful in hiring resources. Education
will prepare the next generation to ensure the sustainable development of the nation.
Education contributes to the development of the nation. according to Schultz (1963), the
outcomes of education may be classified into two categories : consumption and investment. The
consumption aspect is relatedto the joy, pleasure, and similar benefits derived by students, their families,
92
and societyas a whole. The investment component includes a variety of outputs are related to the
enhancement of an individual’s or society’s producive skills and future well-being (Cohn : 179: 168).
In the opening of 1945 National Constitution (UUD 1945), it is stated that one of the objectives of
the Republic of Indonesia is educate its entire people. Inline with that opening, in Article 20, 21 28 C
verse (1), Article 31, and 32 mandated the government to implement and organize one national education
system to increase the conviction and belief towards Almighty God also good sincere intention to educate
the people as stipulated in the Constitution. That national education system must be able to
ensure/guarantee equal opportunity for education, quality improvement also educational relevance and
efficiency in order to face the challenges in accordance with demands for local, national and global
changes. Therefore a carefully planned, well directed and sustainable education reformation is required.
Indonesia's resources will not be meaningful if it is not supported increasing the ability of the
nation. education will be preparing a generation that has the ability to manage resources for the
improvement of the welfare of the nation Indonesia. According to the strategic plan of the ministry of
national education (2010-2014), education produce noble human being which becomes a blessing for the
universe. Such human beings fulfill their needs by caring towards the needs of current and next
generations (intergenerations sustainability). This paradigm urges people to think about the sustainability
of planet earth and the entire universe. Education must develop an understanding of the importance of
ecosystem’s sustainability and equilibrium, which is an understanding that mankind is part of the
ecosystem. Education must give understanding on socially and naturaly responsible values to educate
students that they are part of a social system that must synergize with other human beings and nature with
all its contents. By obtaining those values, critical understanding will emerge regarding environment
(both social and natural) and all forms of interventions; good and bad towards environment, including the
development.
Education is a fundamental right of every Indonesian citizen and thus, each one of them is entittle
to have quality education inline with their respective talent and interest with disregard to their social
status, economic status, ethnicity, race, religion, and gender. Equal access and educational quality
improvement will make Indonesian citizen achieve their life skill in order to support the comprehensive
human development and modern society which embedded Pancasila values as mandated in Legislation
No 20 Year 2003 on National Education System. This carries the implication that every Indonesian
citizen has the opportunity to improve the quality of life through education. Education is to ensure the
absence of discrimination, so that will allow each person develops according to its potential.
According Handayani (Ismanto:2014), Compulsory nine-year basic education is a constitutional
mandate that needs to be guarded together. Government, family, and community need to synergise. Thus,
compulsory basic education involves various parties: government agencies and non-government
institutions, and community groups. The national goals can be achieved, but there are still small areas that
will present difficulties in achieving completion, either because of geographic, social, economic, or
cultural barriers.
93
Basic education at primary (SD) and junior high school (SMP) set as a requirement for the
occupation aged 7 to 15 years. Government and the community is obliged to provide for the provision of
basic education funding. In the strategic plan of national education ministry (2010-2014) considers that
basic education as minimum at the basic level, is a part of human rights and right of every citizen and
any efforts in fulfilling it must be carefully planned and executed. The fulfillment of rights for quality
basic education is a measurement of equal and fair development results and at the same becomes human
resources investment required to support the country’s sustainable development. The right for basic
education as a fullfilment of human rights has become a global commitment.
In the embodiment destination (output) quality education, competitive operating costs and
investment needs. Operational costs required to meet the routine needs such as stationery, administration,
teacher salaries, electric power, telephone, water and so forth to ensure regular running activities.
Investment costs required to meet long-term needs in order to ensure the implementation of education and
quality of education. Investment costs of education such as: buildings, laboratories, libraries, information
technology and so on
Funding education is a shared responsibility between government, local government, and society.
Funding from the community include: a. organizer or educational unit established community; b.
students, parents or guardians of students; and c. others having a role in the care and education (Article 2
of Government Regulation Number 48 Year 2008). Government or the local government can
investment fund and / or the unit operating costs education in the form of grants or assistance
appropriate social legislation. The budget allocation for education from the government and local
governments are set in accordance with the system budgeting in the legislation. Education costs are
sourced from the public is a form of participation in improving the quality and competitiveness of the
community through education.
The limited resources of the central government, provincial and local, carries implications
participation ( public ) in the planning, implementation, monitoring budgets and school education in the
city of Salatiga. At the planning stage, the community participated in the preparation of the school budget,
the education department budget, the budget discussion in Parliament (Ismanto a:2014:464).
Models of Funding Education in Indonesia
Since 2001, implemented decentralization of power in Indonesia. Decentralization is the
transfer of power by the government of the autonomous region government to regulate and
administer the affairs of government in the system of the Republic of Indonesia. Education is one
area that is left to the local government. Differences of economic resources and human resources
into the issue of decentralization in Indonesia. The government guarantees the implementation of
94
decentralization by allocating government budget (Budget). Financial balance between the
Government and the local government as the distribution system based on the principles of
fairness, proportional,
democratic, transparent, and accountable in the funding of
decentralization, taking into account the potential, conditions, and needs of the area and the
amount of funding of deconcentration and assistant task.
Article 31 paragraph (4) of
The 1945 Constitution of the Republic of Indonesia
specifically mandates the state to allocate at least 20% of the overall state and regional budgets
for education to meet the needs of national education delivery. As an implementation of the said
mandate, the National Education System Law, hereinafter is referred to as Education Law,
stipulates that education funding is a shared responsibility between central Government, local
government, and society. Central government, local governments, and community shall mobilize
the available resources. The management of education funds is based on such principles as
fairness, efficiency, transparency and public accountability.
Implementation of local government functions will be implemented optimally when
government affairs administration followed up by providing sources of revenue sufficient to
region, with reference to the Law on Financial Balance between Central and Regional
Government, where the amount of adjusted and aligned with the division of authority between
the Government and Regions. All financial resources inherent in any government matter be
submitted to the financial resources of local areas.
The area was given the right to obtain financial resources such as: the availability of
funding certainty from the Government in accordance with government affairs submitted ;
authority to levy taxes and leverage and levies and the right to obtain the outcome of national
resources that are in the area and other equalization funds; the right to manage the property and
the area is getting other sources of legitimate income and other sources of financing. With such
an arrangement, in which case the Government essentially applying the principle of " money
follows function " .
Revenue Sharing between the Government and the Regional Government is a subsystem
of the State finances as a consequence of the sharing of task between the Government and the
regional government. Sources of state finances are made available to the regional government in
the implementation of Decentralization based on the transfer of task by the Central Government
to the regional government with due regard to fiscal stability and fiscal balance. Revenue
Sharing between the Government and the regional government is a comprehensive system in the
funding of Decentralization, Deconcentration and Coadministered Tasks (articles 2 of
Government Regulation of Republic of Indonesia Number 33 year 2004).
95
In the Law on State Finance, the affirmation contained in financial management,
financial management , namely that the power of the state is part of the authority of government ;
and financial management of the state power of the president partially handed over to the
governor / regent / mayor as head of the local government to manage local finances and
represent local governments in the areas of wealth ownership separated . Such provisions have
implications for regional financial management arrangements, namely that the governor / regent /
mayor is responsible for the financial management area as part of a local government authority .
Thus setting the area of financial management and accountability attached and become one with
the setting of local government, namely the Law on Local Government .
Balancing Fund means a fund sourced from APBN allocated to a region to finance the
need of the region in implementation of Decentralization. General Allocation Fund, hereinafter
called DAU, means a fund sourced from APBN allocated to bring equality in the financial
capacity among the regions to finance the need of the regions in implementation of
Decentralization. Special Allocation Fund, hereinafter called DAK, means a fund sourced from
revenue in APBN allocated to a certain region with the aim of helping funding special activities
of the region in accordance with national priorities.
Revenue Sharing between the Government and the Regional Government is a subsystem
of the State finances as a consequence of the sharing of task between the Government and the
regional government. Revenue Sharing between the Government and the regional government is
a comprehensive system in the funding of Decentralization, Deconcentration and Coadministered
Tasks (article 2, Law Number 33 / 2004). The funding of basic education funding from the state budget
(APBN ) consists of: a. Revenue Sharing Fund (DBH); b. General Allocation Fund (DAU), and c. Special
Allocation Fund (DAK).
Revenue Sharing Fund (DBH) is sourced from taxes and natural resources. DBH sourced from
taxes consists of : a. Land and Building Tax (PBB); b. Land Rent (BPHTB), and c. Personal Income Tax
(PPh). DBH sourced from natural resources derives from: a. Forestry; b. General mining; c. Fisheries; d.
Oil mining e. Natural gas mining and f. Geothermal mining. According to the law number 33 year 2004,
Total amount of General Allocation Fund (DAU) shall be at least 26% (twenty six percent) of Net
Domestic Revenue as established in APBN. DAU for a region shall be allocated based on fiscal gap and
basic allocation. Fiscal gap means fiscal need less fiscal capacity of the region. Basic allocation shall be
calculated based on total salaries of the Civil Service in the region. Fiscal need of a region means the
financing requirements of the region in providing basic public services. Financing requirements shall be
measured by total population, areas size, Construction Cost Index, Gross Regional Domestic Products per
capita, and Human Development Index. Fiscal capacity of a region means financing sources of the region
derived from PAD and DBH. The proportion of DAU between a province and a kabupaten/kota shall be
96
established based on the sharing of authority between the province and the kabupaten/kota . DAU for a
province based on fiscal gap shall be calculated based on the weight of the province multiplied by total
DAU for all provinces. DAU for a kabupaten/kota based on fiscal gap shall be calculated based on the
weight of the kabupaten/kota multiplied by total DAU for all kabupaten/kota.
The decentralization local budget especially for autonomous regions in Indonesia comes from
PAD or local Income Budget which still depends on balanced budgets which are DBH, DAU and DAK.
In this case, the balanced budget from this is more convinced when it was still in the form of previous
autonomy form. The financing of Local Finance is regulated in law No. 33 in the year 2004 which is also
regulated in some regulations which are Local regulation No. 54 in the year 2005 regarding Local Loan;
Government Regulation No. 55 in the year 2005 concerning The balanced Budget, PP No.58 in the year
2005 which was about the grant to the local areas and types of other budgeting sources (Sjamsudin :2012)
AU
Special Allocation Fund (DAK) shall be allocated to certain region to finance special activities
being the affairs of the region. Special activities shall be in accordance with the function as established in
APBN. The Government shall establish criteria for DAK, including general criteria, special criteria and
technical criteria. General criteria shall be established with due regard to the financial capacity of the
region in APBD.
Special criteria shall be established with due regard to the prevailing laws and
regulations and the characteristics of the region. A regions receiving DAK shall provide Matching Funds
in an amount of at least 10% of DAK allocation. Matching Funds shall be budgeted in APBD. A region
with a certain fiscal capacity shall not be required to provide Matching Funds. Further provisions on DAK
shall be established by Government Regulations. To improve access to basic education, the government
provides school operational assistance (BOS) and help poor students (BSM). BOS is a government
program for providing funding for the unit cost nonpersonalia basic education as a compulsory program
implementers. The main goal of the BOS program is for equity and expanding access, BOS is also a
program for improving the quality, relevance and competitiveness as well as for governance,
accountability and public image. Help Poor Students Elementary School which is the amount of
government aid in the form of cash given directly to elementary school students whose parents are poor
according to the criteria that have been set. According Samosir (2008:32), the government needs to
ensure that the poor people ( or group) have access to basic education. As have been shortly
discussed above, through the access to basic educations, they are expected to be able write and read,
and thus will be able to participate in the economy and the end objective is improving their life
condition. Hence, the end objective is to help the poor out of poverty, and it is perceived as a long
term poverty reduction strategies. Spending for primary and junior secondary education is targeted to
the poor and it is also correlated to the increasing enrollment rates in this group.
The government allocated the necessary budget to implement the decentralization of education
across districts / cities in Indonesia. Budget for education is the education budget in ministries / agencies,
97
transfers to the regions, and financing expenses. Details of the education budget is described in the
following table.
Table 1. Education Budget 2010 – 2014
(Rp. Billion)
No Education Budget
2010
1 Central Government Expenditure
2 T ransfer to Region
a Revenue Sharing Fund (DBH)
2011
2012
2013
2014
96.50
105.40
117.00
126.20
130.30
127.70
159.00
186.60
214.10
238.60
0.70
0.90
1.00
0.90
1.00
b Special Allocation Fund (DAK)
9.30
10.00
10.00
11.10
10.00
c General Allocation Fund (DAU)
95.90
104.30
113.90
128.10
135.60
d Additional income of teachers
e T eachers' professional allowance
5.80
3,7
2.90
2.40
1.90
11.00
18.50
30.60
43.10
60.50
f Special Autonomy
2.30
2.70
3.30
3.70
4.10
g Regional incentive funds
1.40
1.40
1.40
1.40
1.40
h Infrastructure development acceleration fund education
1.30
i T he School Operational Assistance
-
j Regional infrastructure development acceleration fund (DPPID) education
3 T he expenditure Financing
1.00
T otal of Education Budget
T he Expenditure Budget
T he ratio of education spending to total spending in the state budget
Source :)Ministry of Finance of The Republic of Indonesia
-
-
-
-
16.80
23.60
23.40
24.10
0.60
2.60
5.05
-
-
-
-
225.20
266.90
310.80
345.30
368.90
1,126.10
1,320.80
1,548.30
1,726.20
1,842.50
20.00
20.21
20.07
20.00
20.02
In the decentralization of power (autonomy), the government assist local governments in
implementing public services that submission. from the above table shows that majority of the basic
education budget from the state budget is the transfer to local governments. basic education as the
implementation of regional autonomy. Government is obliged to allocate the budget for education to help
local governments cope with fiscal needs.
National Education Funding Scenario
Education as a strategic development program in Indonesia. Planning education in Indonesia has
a long-term perspective, medium and short term. National Education Strategic Plan (2010-2014),
establishes the educational development is implemented with regards to 2010-2014 Mid Term National
Development Plan (RPJM) and 2005-2025 Long Term National Development Plan (RPJPN). Based on
RPJPN, MoNE has compiled a 2005-2025 Long Term National Education Development Plan (RPPNJP)
as stipulated in Ministerial Decree (Permendiknas) No 32 Year 2005 on 2005-2025 MoNE Strategic Plan
(Kemendiknas Renstra). The RPPNJP has been broken down into four educational development themes,
such as I development theme (2005-2009) focussing on increasing capacity and modernization; II
development theme (2010-2015) focussing on strengthening services; III development theme (2015-2020)
focussing on strengthening regional competitiveness; and IV development theme (2020-2025) focussing
98
on strengthening international competitiveness. The development theme and determining its stages, must
be inline with 2005-2025 RPJPN and 2010-2014 RPJMN also with future condition development.
Firman (2008:3), state that On the basis of the new Education Law enacted in the Year 2003,
which conveys the spirit of educational decentralization, the Government of Indonesia has implemented
a number of reforms to change education practices at the school level. After political and economic crises,
the education reforms in Indonesia were determined by the enactment of Law Number 20 Year 2003 on
the National Education System as the legal framework for the development of education. The Law
guarantees that students in the basic education program are free from any fees in order to facilitate easier
access to education.
Education funding scenario for the period of 2010 - 2014 refers to the mandate of the Republic
Indonesia Constitution 1945 and Education Law and continues the function and goal of education set by
the government for the years 2005-2025, namely (a) to reinforce the pro poor policy; (b) to strengthen the
educational decentralization and autonomy, and (c) to provide incentives and disincentives for improving
access, quality, and governance of education. The implementation of these three functions of education
funding is aimed at materealizing the educational services in accordance with national standards of
education, as reflected in the funding and budget structure and the division of funding responsibilities
between the central government and local government. Since 2009 fiscal year, the mandate of the 1945
Constitution and Education Law (in accordance with the Constitutional Court decision No. 13 Year 2008)
has been met by the government by allocating 20% of the overall State Income and Revenue Budget for
education. The total budget for education in 2009 reached Rp207 trillion, equivalent to 20% of the state
budget amounting to Rp1,037 trillion, with economic growth in 2009 amounted to 4% and inflation rate
3.5%. 2010 state budget next year is estimated at Rp1,038 trillion, assuming the economic growth of 5%
and inflation rate of 5%. In the year 2014 state budget is estimated to reach Rp1,583 trillion, assuming
economic growth of 7.2% and inflation rate of 4% (Strategic Planning 2010-2014).
Besides of the organizers and the unit of education, funding education is also the responsibility of
students, parents and/or guardians of students. These responsibilities include (a)personal expenses of
students, (b) financing of non-land investment costs for the educational units which do not implement
compulsory education, both formal and informal, which is required to cover the shortage of funding
provided by the organizers and/or educational unit; (c) financing of personnel unit cost in education units
which do not implement compulsory education program, both formal and informal, is required to cover
the shortage of funding provided by the organizers and/or educational unit; (d) financing the unit cost of
non personnel of education units which do not implement compulsory education program, both formal
and informal, is required to cover the shortage of funding provided by the organizers and/or educational
unit, and (e) financing of some of the costs of education investment and/or some additional education
operating costs needed to develop education unit to become internationally standardized and/or local
excellence based education unit (Strategic Planning of MoNE 2010-2014)
Education funding can also be obtained from community outside the organizers and
99
education unit established by community as well as from students or their parents/guardian on condition
that the funding is given voluntarily, recorded in a transparent and accountable manner to the stakeholders
of the associated education unit, audited by public accountant, published in a transparent manner in
national printed media, and then reported to the Minister of National Education if the amount exceeds a
certain ceiling amount determined by the Minister of National Education.
Government Regulation Number 48 Year 2008 regarding the funding of education governs the
division of education funding responsibility for the levels of basic, secondary and higher education
between the central government, regional government, and society, including educational unit. In this
regard, one funding component is the sole responsibility of the central government and regional
authorities.
Conclusion
Basic education as compulsory for residents in Indonesia ages 7 to 15 elementary and junior high
levels. It as the implications of the 1945 Constitution and Law Number 2003 on National Education
System, which requires the government provide basic educational services without discrimination.
Government, and local governments are obliged to provide the cost of provision of basic education. Basic
education budget allocated from the state budget in the national education ministry expenditures, transfers
to local government financing and expenditure. Model of funding for basic education in Indonesia -based
obligation to implement the constitution and the law . Basic education as a right of every citizen and the
government must provide the necessary budget. People are given the opportunity to participate in the
financing of basic education both operational and investment costs. Schools as executor of the education
budget needs to have administrative competence . General allocation fund ( DAU ) is used to meet the
funding needs of the Regional to carry out the functions of basic public services. DAU is managed
directly by the local government to pay the salaries of teachers and public facilities. Special Allocation
Fund ( DAK ) and school operational assistance ( BOS ) is managed by the school. Funding of assistance
to poor students (BSM) proposed by the school but its use is governed by the parents of the students
concerned.
Reference
Cohn, Elchanan., (1979). The Economics of Education. Revised Edn., Massachusetts: A Subsidiary of
Harper & Row Publisher, Inc.
Firman, Harry and Burhanuddin Tola, 2008, The Future of Schooling in Indonesia, CICE Hiroshima
University, Journal of International Cooperation in Education, Vol.11 No.1 (2008) pp.71- 84
Good Governance Brief, Local Government Financial Management Reform in Indonesia Challenges and
Opportunities, No. 3 , September 2007
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Handayani, Titik, Soewartoyo and Makmuri Sukarno, 2009, Implementation of the Compulsory NineYear Basic Education Program: Opportunities and Constraints at Household and Community Level ,
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101
ICETA – UNIPA Surabaya, 24 May 2014
Proceeding ISBN 978 – 979 – 3870 – 58 - 8
Abstract
MODEL OF FUNDING EDUCATION IN INDONESIA
( Reflection Responsibility of The Government In Improving The Quality of The Nation )
Dr. Bambang Ismanto, M.Si
bam_ismanto@yahoo.com
Satya Wacana Christian University – Salatiga - Indonesia
This paper examines the implementation of the government's responsibility in meeting the basic
education budget. The focus of this research is the government budget (APBN) expenditure
allocated for development programs in the field of education. The study was conducted through a
study of the government budget documentation and government policies concerning basic
education. These studies describe that the allocation of the budget consists of central government
spending, transfers to the regions, and financing expenses. each component of the education
budget have different procedures for planning , administration and accountability. Management
education budget is done according to the law and regulations governing public finance. Local
governments to implement the government's budget as the embodiment of decentralization of
education. The community is also obliged to bear the operational and investment needs of the
educational program.
Keywords : Funding Education, Model, APBN
Introduction
Education is a strategic program to improve the quality and competitiveness of human resources
in Indonesia. Various activities of formal, informal and non-formal educations will improve one's ability
in problem solving, and development itself. Educational output in the form of increased knowledge,
skills, expertise and control life values useful in harnessing the resources and opportunities in life.
Increased competence of a person will determine his existence in interacting with its environment. In
aggregate, increasing the quality of people's lives will improve international competitiveness. Ismanto
(2014:1), state that education is an investment in human resources and strategic importance. Human
capital investment to prepare for the knowledge , skills and values useful in hiring resources. Education
will prepare the next generation to ensure the sustainable development of the nation.
Education contributes to the development of the nation. according to Schultz (1963), the
outcomes of education may be classified into two categories : consumption and investment. The
consumption aspect is relatedto the joy, pleasure, and similar benefits derived by students, their families,
92
and societyas a whole. The investment component includes a variety of outputs are related to the
enhancement of an individual’s or society’s producive skills and future well-being (Cohn : 179: 168).
In the opening of 1945 National Constitution (UUD 1945), it is stated that one of the objectives of
the Republic of Indonesia is educate its entire people. Inline with that opening, in Article 20, 21 28 C
verse (1), Article 31, and 32 mandated the government to implement and organize one national education
system to increase the conviction and belief towards Almighty God also good sincere intention to educate
the people as stipulated in the Constitution. That national education system must be able to
ensure/guarantee equal opportunity for education, quality improvement also educational relevance and
efficiency in order to face the challenges in accordance with demands for local, national and global
changes. Therefore a carefully planned, well directed and sustainable education reformation is required.
Indonesia's resources will not be meaningful if it is not supported increasing the ability of the
nation. education will be preparing a generation that has the ability to manage resources for the
improvement of the welfare of the nation Indonesia. According to the strategic plan of the ministry of
national education (2010-2014), education produce noble human being which becomes a blessing for the
universe. Such human beings fulfill their needs by caring towards the needs of current and next
generations (intergenerations sustainability). This paradigm urges people to think about the sustainability
of planet earth and the entire universe. Education must develop an understanding of the importance of
ecosystem’s sustainability and equilibrium, which is an understanding that mankind is part of the
ecosystem. Education must give understanding on socially and naturaly responsible values to educate
students that they are part of a social system that must synergize with other human beings and nature with
all its contents. By obtaining those values, critical understanding will emerge regarding environment
(both social and natural) and all forms of interventions; good and bad towards environment, including the
development.
Education is a fundamental right of every Indonesian citizen and thus, each one of them is entittle
to have quality education inline with their respective talent and interest with disregard to their social
status, economic status, ethnicity, race, religion, and gender. Equal access and educational quality
improvement will make Indonesian citizen achieve their life skill in order to support the comprehensive
human development and modern society which embedded Pancasila values as mandated in Legislation
No 20 Year 2003 on National Education System. This carries the implication that every Indonesian
citizen has the opportunity to improve the quality of life through education. Education is to ensure the
absence of discrimination, so that will allow each person develops according to its potential.
According Handayani (Ismanto:2014), Compulsory nine-year basic education is a constitutional
mandate that needs to be guarded together. Government, family, and community need to synergise. Thus,
compulsory basic education involves various parties: government agencies and non-government
institutions, and community groups. The national goals can be achieved, but there are still small areas that
will present difficulties in achieving completion, either because of geographic, social, economic, or
cultural barriers.
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Basic education at primary (SD) and junior high school (SMP) set as a requirement for the
occupation aged 7 to 15 years. Government and the community is obliged to provide for the provision of
basic education funding. In the strategic plan of national education ministry (2010-2014) considers that
basic education as minimum at the basic level, is a part of human rights and right of every citizen and
any efforts in fulfilling it must be carefully planned and executed. The fulfillment of rights for quality
basic education is a measurement of equal and fair development results and at the same becomes human
resources investment required to support the country’s sustainable development. The right for basic
education as a fullfilment of human rights has become a global commitment.
In the embodiment destination (output) quality education, competitive operating costs and
investment needs. Operational costs required to meet the routine needs such as stationery, administration,
teacher salaries, electric power, telephone, water and so forth to ensure regular running activities.
Investment costs required to meet long-term needs in order to ensure the implementation of education and
quality of education. Investment costs of education such as: buildings, laboratories, libraries, information
technology and so on
Funding education is a shared responsibility between government, local government, and society.
Funding from the community include: a. organizer or educational unit established community; b.
students, parents or guardians of students; and c. others having a role in the care and education (Article 2
of Government Regulation Number 48 Year 2008). Government or the local government can
investment fund and / or the unit operating costs education in the form of grants or assistance
appropriate social legislation. The budget allocation for education from the government and local
governments are set in accordance with the system budgeting in the legislation. Education costs are
sourced from the public is a form of participation in improving the quality and competitiveness of the
community through education.
The limited resources of the central government, provincial and local, carries implications
participation ( public ) in the planning, implementation, monitoring budgets and school education in the
city of Salatiga. At the planning stage, the community participated in the preparation of the school budget,
the education department budget, the budget discussion in Parliament (Ismanto a:2014:464).
Models of Funding Education in Indonesia
Since 2001, implemented decentralization of power in Indonesia. Decentralization is the
transfer of power by the government of the autonomous region government to regulate and
administer the affairs of government in the system of the Republic of Indonesia. Education is one
area that is left to the local government. Differences of economic resources and human resources
into the issue of decentralization in Indonesia. The government guarantees the implementation of
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decentralization by allocating government budget (Budget). Financial balance between the
Government and the local government as the distribution system based on the principles of
fairness, proportional,
democratic, transparent, and accountable in the funding of
decentralization, taking into account the potential, conditions, and needs of the area and the
amount of funding of deconcentration and assistant task.
Article 31 paragraph (4) of
The 1945 Constitution of the Republic of Indonesia
specifically mandates the state to allocate at least 20% of the overall state and regional budgets
for education to meet the needs of national education delivery. As an implementation of the said
mandate, the National Education System Law, hereinafter is referred to as Education Law,
stipulates that education funding is a shared responsibility between central Government, local
government, and society. Central government, local governments, and community shall mobilize
the available resources. The management of education funds is based on such principles as
fairness, efficiency, transparency and public accountability.
Implementation of local government functions will be implemented optimally when
government affairs administration followed up by providing sources of revenue sufficient to
region, with reference to the Law on Financial Balance between Central and Regional
Government, where the amount of adjusted and aligned with the division of authority between
the Government and Regions. All financial resources inherent in any government matter be
submitted to the financial resources of local areas.
The area was given the right to obtain financial resources such as: the availability of
funding certainty from the Government in accordance with government affairs submitted ;
authority to levy taxes and leverage and levies and the right to obtain the outcome of national
resources that are in the area and other equalization funds; the right to manage the property and
the area is getting other sources of legitimate income and other sources of financing. With such
an arrangement, in which case the Government essentially applying the principle of " money
follows function " .
Revenue Sharing between the Government and the Regional Government is a subsystem
of the State finances as a consequence of the sharing of task between the Government and the
regional government. Sources of state finances are made available to the regional government in
the implementation of Decentralization based on the transfer of task by the Central Government
to the regional government with due regard to fiscal stability and fiscal balance. Revenue
Sharing between the Government and the regional government is a comprehensive system in the
funding of Decentralization, Deconcentration and Coadministered Tasks (articles 2 of
Government Regulation of Republic of Indonesia Number 33 year 2004).
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In the Law on State Finance, the affirmation contained in financial management,
financial management , namely that the power of the state is part of the authority of government ;
and financial management of the state power of the president partially handed over to the
governor / regent / mayor as head of the local government to manage local finances and
represent local governments in the areas of wealth ownership separated . Such provisions have
implications for regional financial management arrangements, namely that the governor / regent /
mayor is responsible for the financial management area as part of a local government authority .
Thus setting the area of financial management and accountability attached and become one with
the setting of local government, namely the Law on Local Government .
Balancing Fund means a fund sourced from APBN allocated to a region to finance the
need of the region in implementation of Decentralization. General Allocation Fund, hereinafter
called DAU, means a fund sourced from APBN allocated to bring equality in the financial
capacity among the regions to finance the need of the regions in implementation of
Decentralization. Special Allocation Fund, hereinafter called DAK, means a fund sourced from
revenue in APBN allocated to a certain region with the aim of helping funding special activities
of the region in accordance with national priorities.
Revenue Sharing between the Government and the Regional Government is a subsystem
of the State finances as a consequence of the sharing of task between the Government and the
regional government. Revenue Sharing between the Government and the regional government is
a comprehensive system in the funding of Decentralization, Deconcentration and Coadministered
Tasks (article 2, Law Number 33 / 2004). The funding of basic education funding from the state budget
(APBN ) consists of: a. Revenue Sharing Fund (DBH); b. General Allocation Fund (DAU), and c. Special
Allocation Fund (DAK).
Revenue Sharing Fund (DBH) is sourced from taxes and natural resources. DBH sourced from
taxes consists of : a. Land and Building Tax (PBB); b. Land Rent (BPHTB), and c. Personal Income Tax
(PPh). DBH sourced from natural resources derives from: a. Forestry; b. General mining; c. Fisheries; d.
Oil mining e. Natural gas mining and f. Geothermal mining. According to the law number 33 year 2004,
Total amount of General Allocation Fund (DAU) shall be at least 26% (twenty six percent) of Net
Domestic Revenue as established in APBN. DAU for a region shall be allocated based on fiscal gap and
basic allocation. Fiscal gap means fiscal need less fiscal capacity of the region. Basic allocation shall be
calculated based on total salaries of the Civil Service in the region. Fiscal need of a region means the
financing requirements of the region in providing basic public services. Financing requirements shall be
measured by total population, areas size, Construction Cost Index, Gross Regional Domestic Products per
capita, and Human Development Index. Fiscal capacity of a region means financing sources of the region
derived from PAD and DBH. The proportion of DAU between a province and a kabupaten/kota shall be
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established based on the sharing of authority between the province and the kabupaten/kota . DAU for a
province based on fiscal gap shall be calculated based on the weight of the province multiplied by total
DAU for all provinces. DAU for a kabupaten/kota based on fiscal gap shall be calculated based on the
weight of the kabupaten/kota multiplied by total DAU for all kabupaten/kota.
The decentralization local budget especially for autonomous regions in Indonesia comes from
PAD or local Income Budget which still depends on balanced budgets which are DBH, DAU and DAK.
In this case, the balanced budget from this is more convinced when it was still in the form of previous
autonomy form. The financing of Local Finance is regulated in law No. 33 in the year 2004 which is also
regulated in some regulations which are Local regulation No. 54 in the year 2005 regarding Local Loan;
Government Regulation No. 55 in the year 2005 concerning The balanced Budget, PP No.58 in the year
2005 which was about the grant to the local areas and types of other budgeting sources (Sjamsudin :2012)
AU
Special Allocation Fund (DAK) shall be allocated to certain region to finance special activities
being the affairs of the region. Special activities shall be in accordance with the function as established in
APBN. The Government shall establish criteria for DAK, including general criteria, special criteria and
technical criteria. General criteria shall be established with due regard to the financial capacity of the
region in APBD.
Special criteria shall be established with due regard to the prevailing laws and
regulations and the characteristics of the region. A regions receiving DAK shall provide Matching Funds
in an amount of at least 10% of DAK allocation. Matching Funds shall be budgeted in APBD. A region
with a certain fiscal capacity shall not be required to provide Matching Funds. Further provisions on DAK
shall be established by Government Regulations. To improve access to basic education, the government
provides school operational assistance (BOS) and help poor students (BSM). BOS is a government
program for providing funding for the unit cost nonpersonalia basic education as a compulsory program
implementers. The main goal of the BOS program is for equity and expanding access, BOS is also a
program for improving the quality, relevance and competitiveness as well as for governance,
accountability and public image. Help Poor Students Elementary School which is the amount of
government aid in the form of cash given directly to elementary school students whose parents are poor
according to the criteria that have been set. According Samosir (2008:32), the government needs to
ensure that the poor people ( or group) have access to basic education. As have been shortly
discussed above, through the access to basic educations, they are expected to be able write and read,
and thus will be able to participate in the economy and the end objective is improving their life
condition. Hence, the end objective is to help the poor out of poverty, and it is perceived as a long
term poverty reduction strategies. Spending for primary and junior secondary education is targeted to
the poor and it is also correlated to the increasing enrollment rates in this group.
The government allocated the necessary budget to implement the decentralization of education
across districts / cities in Indonesia. Budget for education is the education budget in ministries / agencies,
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transfers to the regions, and financing expenses. Details of the education budget is described in the
following table.
Table 1. Education Budget 2010 – 2014
(Rp. Billion)
No Education Budget
2010
1 Central Government Expenditure
2 T ransfer to Region
a Revenue Sharing Fund (DBH)
2011
2012
2013
2014
96.50
105.40
117.00
126.20
130.30
127.70
159.00
186.60
214.10
238.60
0.70
0.90
1.00
0.90
1.00
b Special Allocation Fund (DAK)
9.30
10.00
10.00
11.10
10.00
c General Allocation Fund (DAU)
95.90
104.30
113.90
128.10
135.60
d Additional income of teachers
e T eachers' professional allowance
5.80
3,7
2.90
2.40
1.90
11.00
18.50
30.60
43.10
60.50
f Special Autonomy
2.30
2.70
3.30
3.70
4.10
g Regional incentive funds
1.40
1.40
1.40
1.40
1.40
h Infrastructure development acceleration fund education
1.30
i T he School Operational Assistance
-
j Regional infrastructure development acceleration fund (DPPID) education
3 T he expenditure Financing
1.00
T otal of Education Budget
T he Expenditure Budget
T he ratio of education spending to total spending in the state budget
Source :)Ministry of Finance of The Republic of Indonesia
-
-
-
-
16.80
23.60
23.40
24.10
0.60
2.60
5.05
-
-
-
-
225.20
266.90
310.80
345.30
368.90
1,126.10
1,320.80
1,548.30
1,726.20
1,842.50
20.00
20.21
20.07
20.00
20.02
In the decentralization of power (autonomy), the government assist local governments in
implementing public services that submission. from the above table shows that majority of the basic
education budget from the state budget is the transfer to local governments. basic education as the
implementation of regional autonomy. Government is obliged to allocate the budget for education to help
local governments cope with fiscal needs.
National Education Funding Scenario
Education as a strategic development program in Indonesia. Planning education in Indonesia has
a long-term perspective, medium and short term. National Education Strategic Plan (2010-2014),
establishes the educational development is implemented with regards to 2010-2014 Mid Term National
Development Plan (RPJM) and 2005-2025 Long Term National Development Plan (RPJPN). Based on
RPJPN, MoNE has compiled a 2005-2025 Long Term National Education Development Plan (RPPNJP)
as stipulated in Ministerial Decree (Permendiknas) No 32 Year 2005 on 2005-2025 MoNE Strategic Plan
(Kemendiknas Renstra). The RPPNJP has been broken down into four educational development themes,
such as I development theme (2005-2009) focussing on increasing capacity and modernization; II
development theme (2010-2015) focussing on strengthening services; III development theme (2015-2020)
focussing on strengthening regional competitiveness; and IV development theme (2020-2025) focussing
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on strengthening international competitiveness. The development theme and determining its stages, must
be inline with 2005-2025 RPJPN and 2010-2014 RPJMN also with future condition development.
Firman (2008:3), state that On the basis of the new Education Law enacted in the Year 2003,
which conveys the spirit of educational decentralization, the Government of Indonesia has implemented
a number of reforms to change education practices at the school level. After political and economic crises,
the education reforms in Indonesia were determined by the enactment of Law Number 20 Year 2003 on
the National Education System as the legal framework for the development of education. The Law
guarantees that students in the basic education program are free from any fees in order to facilitate easier
access to education.
Education funding scenario for the period of 2010 - 2014 refers to the mandate of the Republic
Indonesia Constitution 1945 and Education Law and continues the function and goal of education set by
the government for the years 2005-2025, namely (a) to reinforce the pro poor policy; (b) to strengthen the
educational decentralization and autonomy, and (c) to provide incentives and disincentives for improving
access, quality, and governance of education. The implementation of these three functions of education
funding is aimed at materealizing the educational services in accordance with national standards of
education, as reflected in the funding and budget structure and the division of funding responsibilities
between the central government and local government. Since 2009 fiscal year, the mandate of the 1945
Constitution and Education Law (in accordance with the Constitutional Court decision No. 13 Year 2008)
has been met by the government by allocating 20% of the overall State Income and Revenue Budget for
education. The total budget for education in 2009 reached Rp207 trillion, equivalent to 20% of the state
budget amounting to Rp1,037 trillion, with economic growth in 2009 amounted to 4% and inflation rate
3.5%. 2010 state budget next year is estimated at Rp1,038 trillion, assuming the economic growth of 5%
and inflation rate of 5%. In the year 2014 state budget is estimated to reach Rp1,583 trillion, assuming
economic growth of 7.2% and inflation rate of 4% (Strategic Planning 2010-2014).
Besides of the organizers and the unit of education, funding education is also the responsibility of
students, parents and/or guardians of students. These responsibilities include (a)personal expenses of
students, (b) financing of non-land investment costs for the educational units which do not implement
compulsory education, both formal and informal, which is required to cover the shortage of funding
provided by the organizers and/or educational unit; (c) financing of personnel unit cost in education units
which do not implement compulsory education program, both formal and informal, is required to cover
the shortage of funding provided by the organizers and/or educational unit; (d) financing the unit cost of
non personnel of education units which do not implement compulsory education program, both formal
and informal, is required to cover the shortage of funding provided by the organizers and/or educational
unit, and (e) financing of some of the costs of education investment and/or some additional education
operating costs needed to develop education unit to become internationally standardized and/or local
excellence based education unit (Strategic Planning of MoNE 2010-2014)
Education funding can also be obtained from community outside the organizers and
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education unit established by community as well as from students or their parents/guardian on condition
that the funding is given voluntarily, recorded in a transparent and accountable manner to the stakeholders
of the associated education unit, audited by public accountant, published in a transparent manner in
national printed media, and then reported to the Minister of National Education if the amount exceeds a
certain ceiling amount determined by the Minister of National Education.
Government Regulation Number 48 Year 2008 regarding the funding of education governs the
division of education funding responsibility for the levels of basic, secondary and higher education
between the central government, regional government, and society, including educational unit. In this
regard, one funding component is the sole responsibility of the central government and regional
authorities.
Conclusion
Basic education as compulsory for residents in Indonesia ages 7 to 15 elementary and junior high
levels. It as the implications of the 1945 Constitution and Law Number 2003 on National Education
System, which requires the government provide basic educational services without discrimination.
Government, and local governments are obliged to provide the cost of provision of basic education. Basic
education budget allocated from the state budget in the national education ministry expenditures, transfers
to local government financing and expenditure. Model of funding for basic education in Indonesia -based
obligation to implement the constitution and the law . Basic education as a right of every citizen and the
government must provide the necessary budget. People are given the opportunity to participate in the
financing of basic education both operational and investment costs. Schools as executor of the education
budget needs to have administrative competence . General allocation fund ( DAU ) is used to meet the
funding needs of the Regional to carry out the functions of basic public services. DAU is managed
directly by the local government to pay the salaries of teachers and public facilities. Special Allocation
Fund ( DAK ) and school operational assistance ( BOS ) is managed by the school. Funding of assistance
to poor students (BSM) proposed by the school but its use is governed by the parents of the students
concerned.
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