1. Education Decentralisation in Indonesia: Lesson Learned and Challenges Fasli Jalal, PhD Director General for Non Formal Education and Youth Ministry of National Education Indonesia

2. . Structure of the Government & Education

3. Government structure President Line ministriesMinistry of home affairs Guidance on minimum standard Governor minimum standard supervision District head / mayor Technical agency (dinas)

4. Education structure Islamic S3S3: doctorate Islamic S2S2: magister 19-22Islamic S1S1: bachelor Diploma 1-3 16-18Islamic SSSGeneral SSSVoctech SSSPackage C Voc training 13-15Islamic JSSJunior Secondary SchoolPackage B 7-12Islamic PSPrimary SchoolPackage A Islamic KGKindergarten Playgroup Islamic General Islamic General Formal Education System Formal Education System Non-formal Ed. System  COMPULSORY 

5. Basic figures of education, 2001/02 PupilSchoolTeacher Primary25,850,849148,5161,164,808 Junior sec7,466,45820.842476,827 Senior sec5,051,64012,307363,508 Higher ed2,915,2911,944292,949 Source: Indonesia/Educational Statistics in Brief, 2001/02

6. COMPARISON OF HDI AMONG SELECTED ASIAN COUNTRIES: 1995-2003 COUNTRY YEAR 1995200020022003 Thailand Malaysia Philippine Indonesia China Vietnam 58 59 100 104 111 120 76 61 77 109 99 108 70 59 77 110 96 109 74 58 85 112 104 109 Source: UNDP (1995, 2000, 2002, dan 2003)

7. HDI of Indonesia YearHDI 19750.465 19800.526 19850.578 19900.619 19950.664 20000.684 20020.662 Source: BPS, Bappenas, UNDP (2001). Indonesia HDR 2002.

8. Diversity of district/municipalities, 1999 TOP 5HDI  South Jakarta 75.1  Yogyakarta73.4  Ambon73.0  East Jakarta72.8  Manado72.5 BOTTOM 5  West Lombok49.9  Jaya Wijaya48.7  Sampang47.3  West Sumba45.4  Fak Fak43.6 Source: Indonesia/Human Development Report, 2001

9. INDONESIA’S HDI RANK (2002) No Province Life Expectancy (years) Adult Literacy Rate (%) Mean Years of Schooling (years) Adjusted Real per Capita Expenditure (Rp. 000) HDI 1 2 3 4 5 6 7 8 9 10 11 12 Jakarta Sulawesi Utara D.I. Yogyakarta Kalimantan Timur Riau Kalimantan Tengah Sumatera Utara Sumatera Barat Bali Jambi Banten Maluku 72 71 72 69 68 69 67 66 70 67 62 66 98 99 86 95 97 96 95 84 95 94 96 10,4 8,6 8,1 8,5 8,3 7,6 8,4 8,0 7,6 7,4 7,9 8,0 617 588 611 592 588 586 589 596 586 609 576 75,6 71,3 70,8 69,9 69,1 68,8 67,5 67,1 66,6 66,5 Source: UNDP, Bappenas, BPS, 2003 NOT FOR QUOTATION

10. No PROVINCE Life Expectancy Adult Literacy Mean Years of Schooling Adjusted per Capita HDI 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Jawa Tengah Bengkulu Nangroe Aceh D. Sumatera Selatan Jawa Barat Lampung Maluku Utara Bangka Belitung Sulawesi Selatan Sulawesi Tengah Kalimantan Selatan Gorontalo Jawa Timur Sulawesi Tenggara Kalimantan Barat NTT Papua NTB 69 65 68 66 65 66 63 66 69 63 61 64 66 65 64 65 59 86 93 96 94 93 96 92 84 93 95 83 88 87 84 74 78 6,5 7,6 7,8 7,1 7,2 6,9 8,4 6,6 6,8 7,3 7,0 6,5 7,3 6,3 6,0 5,8 594 587 558 583 592 583 588 587 580 596 573 594 578 580 563 578 583 66,3 66,2 66,0 65,8 65,4 65,3 64,4 64,3 64,1 62,9 60,3 60,1 57,8 Lanjutan… Source: UNDP, Bappenas, BPS, 2003 NOT FOR QUOTATION

11. DIFFERENCES IN EDUCATION INDEX AMONG DISTRICTS/MUNICIPALITIES (2002) NoDistrict/Municipality Melek huruf dewasa (%) Rata-rata lama pendidikan (tahun) HDI Rank 1 2 3 4 5 6 7 8 9 10 Jakarta Timur Ternate Bireuen Kutai Mataram Fakfak Sanggau Indramayu Sampang Jayawijaya 99 98 97 96 95 86 84 76 56 32 10,9 10,1 9,0 7,7 7,4 6,4 5,7 5,1 2,9 2,2 1 47 63 114 198 228 286 303 340 341 Source: UNDP, Bappenas dan BPS, 2003 NOT FOR QUOTATION

12. . General features of decentralization of government management in Indonesia

13. General concept of (educ) decentralization Transfer of authority of educational policies from central government Shifting of various educational decisions from government to people delegate discretion of ed. policies & money needed to finance the responsibility It is the people who benefit from ed. being offered  they should be in a better position to make decisions on their own behalf

14. Overall gov. management decentralization in Indonesia Central gov authority : foreign politics, defence & security, justice, monetary & fiscal, religion, national planning, national standardization, etc. Other matters (incl. education) decentralized to district/municipality level

15. Ed. decentralization in Indonesia Radical type of decentralization: from extreme centralization down to school level

16. Pilars for educational decentralisation in Indonesia Educational reformation Democratisation Community participation Profesionalism Financial support Political will

17. Ed decentralization ( 1 ) from central to local government Central gov: national standard (curr, exam, minimum provision standard); requirement for admission, transfer, certification; org & dev of higher ed, etc. Prov gov : equitable student selection & acceptance, provision of learning materials, assist in hi-ed manag, etc. District/municipality gov : all other aspects.

18. Political will & financial support Constitution * Every citizen is entitle to education Every citizen should enroll in basic education and the government should finance it (art 31:2) Act # 20/2003 on National Ed. System Financing ed: shared responsibility of national gov, local gov, and community (art 46:1) Ed. funds** are allocated at a minimum of 20% of national gov. budget 20% of local gov budget (art 49:1) * IV th amendment of the 1945 Constitution ** excluding salary of educators & service ed. expenditure

19. Important features of the new system of Education Democratisation in education School & community based Curriculum: competence based Freedom to schools & teachers to promote profesionalism

20. Ed decentralization ( 2 ) from central government to school Vehicle School based management (SBM) Equiped with education board (district/municipality), school committee (school level) Education board Provide advice for ed. decision making at district/municipality level Provide financial support & concepts for education provision Controlling the application of transparency & accountability for ed. finance & provision Mediator for executive-legislative-community in the development & provision of ed. School committee Similar tasks, at school level

21. Educ. board--school committee--logal gov--schol relationship District head/ mayorEducation boardLocal parliament Education division School comittee Education board School/out of school alternatives Other educational institution School comittee

22. Role of various parties in SBM SchoolGovernmentSchool boardSchool comittee Teacher Recruitment + selection Teaching assignment Career+remuneration Teachers’ MIS Equal access to ed. promo, CRU* Selection criteria for teachers PA** criteria Selection procss Teachers’ EPA *** Student Selection Ed. process Evaluation Direct subsidy provision Competence standard CRU New entrants selection criteria Select subsidy recipients, PA criteria Monitor student selection Schools’ EPA Finance Annual planning Block grant from gov Direct block grant Earmarked tax for ed, CRU Allocation of subsidy to school PA criteria Review annual school plan+budget Schools’ EPA *CRU: complaint resolution unit** PA: performance audit *** EPA: external PA *CRU: complaint resolution unit** PA: performance audit *** EPA: external PA Source: Ed. Reform in the Context of Regional Autonomy: the Case of Indonesia, 2001

23. Stages of school decentralization Laws & regulation To support (i) greater authority of school principal, (ii) roles of educational board & school committee, (iii) quality assurance role of gov. Socialization Audience: government & parliament (all levels), principal, teachers & union, business leaders, community leaders Managing different interests to establish agreement in order to have better quality ed. Need to prepare good public relation strategy (new roles of stakeholders & program benefits) Integrated info-system Ensuring good linkage b/n: central gov – school level Develop capabilities on the collection & use of reliable data for planning & strategy development for increasing quality of ed. services

24. Purpose Improving quality & effectiveness of schooling through decentralization of school finances and enhanced accountability of schools to all stakeholders Mechanism Offered to voluntarily interested distrcts and schools (3 districts & 50 schools) Stake holders’ seminars, school trainings, technical assistance on the development of strategies for ed. finance. Results : Grant mechanism for improved allocation of operational resources to schools by district gov. Integrated school level planning, budgeting, and financial management system School governance concept Results of study (1) DSSD (Decentralized Social Service Delivery)

25. DSSD: focal area, activity, and objective Focal areaActivityObjective System of district allocation of reso- urces to school Dev. of grant mechanism for allocation of resources to schools by the districts I mprove equity & efficiency of resource allocation I ncreased resources to schools School financial management system Training for integrated school level planning, budgetting, financial management reporting I mproved efficiency, transparency, & accountability in managing school resources School/education governance system Training for better school governance and development of role of school committee B roaden ed. debate, promote horizintal accountability & role of civil society in ed. M anagement and strengthen school level governance Source: Progress in the Direction of SBM, 2003

26. Ed financing in pilot districts MagelangWest Lampung Purworejo APBD/capita*1,081,195393,297375,961 Share education in APBD37.2 %41.2 %51.8 % APBD ed budget per capita*402,602162,204194,886 Ed salaries/total ed87.5 %79.1 %94.5 % % non-salary budget12.5 %20.9 %5.5 % Non-salary per capita (APBD only)*50,16533,92210,801 % non salary budget in APBD 4.6 %8.6 %2.9 % Source: Progress in the Direction of SBM, 2003 * US$ 1 = Rp 8,509 (15 Nov. 2003)

27. The next step Continue develop resource allocation formula Persist with DBO as an interim strategy but refocus on targetting Extend important innovations to all districts, eg. (i) consolidated & performmance based school budgetting (ii) school/community managed construction Extend best features of capacity building models Develop a coherent quality control system driven by learning indicators Design & develop central technical support Develop systematic research strategy in a gradual transition to more evidence based policy making Focus early on building the capacity of school principal

28. Results of study (2) CIDA*: regional consultations in West Sumatra on the use of Education Board and School Commitee Purpose Obtaining initial regional input to the concept of educational board (EB) and school committee (SC) Mechanism Direct, face to face consultation, of 90 representatives of central level, provincial level, district/ municipality level, community leaders, and intelectuals Results : bottom-up consensus on essential concepts & working mechanism relative to EB & SC Function & organization of EB & SC EB & wider organization and SC with the old PTA Benefit & funding of EB & SC EB & SC members and SC of private school Time line for establishing EB & SC * Involves CIDA, Bappenas, MONE, and World Bank * Involves CIDA, Bappenas, MONE, and World Bank

29. Lesson learned Schools have the capability to manage SBM program. The capabilities vary among schools School capacity should be included as one of the criteria to apply SBM Apllication of the SBM should be conducted through pilot, replication, and dissemination steps To better understand school management characteristics, in-depth studies are needed during the pilot step There is a need to put gov. commitment explicitly to the financing of education on the laws & regulations

30. Challenges Need more preparation on educational service standards, capability of the local gov., resources adequacy Full authority to district/municipality government was not balanced with human readiness Reduction of inequality of resources allocation to regions High dependency on central gov. budget on education

31. So what? Given the diversity of Indonesian regions  blangket approach is not suitable  decentralisation is a must Strategy for education decentralisation: –More independent & autonomous management at school level –How to support school?  strengthen school committee  improve school finance & management system