The Impacts of Proposed Education Minimum Service Standards on a Sample of Districts in Indonesia
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The Impacts of Proposed Education Minimum Service Standards on a Sample of Districts in Indonesia Stephen Dunn January 13, 2005. Overview. “Snapshot” of Indonesia and Districts “Pre-History” of Decentralization in Indonesia The Era of Decentralization

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The Impacts of Proposed Education Minimum Service Standards on a Sample of Districts in Indonesia

Stephen Dunn

January 13, 2005


Overview l.jpg
Overview on a Sample of Districts in Indonesia

  • “Snapshot” of Indonesia and Districts

  • “Pre-History” of Decentralization in Indonesia

  • The Era of Decentralization

  • Motivation for Minimum Service Standards

  • Overview of Proposed Minimum Service Standards

  • Study and Results

  • Conclusions, Issues, Looking Forward


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Snapshot of Indonesia on a Sample of Districts in Indonesia

  • Population 214.5 million (WB, 2003)

  • 14,000 islands

  • 3,000 miles east-to-west

  • 43% urban (WB, 2002)

  • Life expectancy at birth 66.7 Years, (WB, 2002)

  • GDP per capita $971 (WB, 2003)

  • Poverty Headcount Index 16% (WB, 2002)


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Snapshot of Districts on a Sample of Districts in Indonesia

  • 420 Districts

  • District Populations from <25,000 to Over 4 Million

  • Environments from “Metro” to isolated, agricultural

  • Poverty Headcount Index from >90% to <2% (SUSENAS, 2002)

  • Annual Per Capita Own-Source Revenues from nearly Rp 1 million to below Rp 5,000 (WB, 2001)


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Snapshot of District Education on a Sample of Districts in Indonesia

  • Primary NER: 91% for lowest-income districts 91% for highest-income districts

  • Sen. Sec. NER: 18% for lowest-income districts 62% for highest-income districts

    (WB, 2002)

  • Per-Student APBD Education Expenditure Range: minimum < Rp 50,000 maximum > Rp 300,000

    (author’s data)


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“Pre-History” of Decentralization in Indonesia on a Sample of Districts in Indonesia

  • Prior to 1999 Laws, Highly Centralized Government

  • Low Control of Own-Resources

  • Deconcentrated Sectoral Offices in Districts

  • Limited District Autonomy

  • Little Scope for Local Choice in Service Delivery


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The Era of Decentralization on a Sample of Districts in IndonesiaOverview

  • Motivations for Decentralization

  • Decentralization to District Level

  • Laws 22, 25 of 1999 and “Big Bang” in 2001

  • Assets Transferred to Districts

  • Local Planning and Budgeting

  • New Revenue Streams: DAU and DAK

  • Share of Sub-National Spending Doubled


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The Era of Decentralization on a Sample of Districts in IndonesiaFinance and Management of Education

  • Education managed at district and school level

  • DAU is primary source of district funds

  • Education competes for district resources with other sectors

  • There are numerous other funding streams

  • Large amount of district autonomy, emerging school autonomy


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Motivation for on a Sample of Districts in IndonesiaEducation Minimum Service Standards

  • Education is a national concern

  • Desire to increase equity across districts

  • Indonesia has low achievement relative to peers

  • Political-Economic Aspects


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Overview of Proposed on a Sample of Districts in IndonesiaEducation Minimum Service Standards

SPM cover:

  • formal education (grades 1-12)

  • equivalent out-of-school education

  • pre-school

  • sports

  • “youth participation” / “social participation”

  • special education

  • teacher/school development and management


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Overview of Proposed on a Sample of Districts in IndonesiaEducation Minimum Service Standards

  • Large number of SPM (297)

  • Some SPM are conflicting or internally inconsistent

  • “Education” SPM cover many non-education areas

  • Districts do not collect much of the data needed


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PERFORM Study on a Sample of Districts in IndonesiaOverview

  • Goal: understand expenditure implications of SPM

  • Team: PERFORM staff, MOF, RTI

  • SPM focus: formal education (grades 1-12)

  • * Districts: 15 districts from 10 provinces

  • * Model: policy options projection model

  • * Results: projections from 2002-2017, “lower bound”


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PERFORM Study on a Sample of Districts in IndonesiaDistricts


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PERFORM Study on a Sample of Districts in Indonesiapolicy options projection model

  • User can set policy/functional parameters (SPM) and examine impacts

  • A “what if?” model to examine policy impacts

  • Single district focus, output for 15 districts

  • District base data

  • Projections over 2002-2017

  • Results for many variables/indicators


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Results on a Sample of Districts in IndonesiaOverview

  • Interpretation of Results

  • Total Expenditure

  • Expenditure by Level

  • Expenditure by Type

  • Enrollment Indicators, Teachers, Classrooms, Books, Teacher and Classroom Upgrading


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Results on a Sample of Districts in IndonesiaExpenditure

  • Proposed SPM result in a 54% increase in district expenditure on education by the year 2007 (“lower bound” estimate of SPM impact)

  • Expenditure impact varies significantly across districts

  • Within districts, expenditure impact varies dramatically for different levels of education


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Results on a Sample of Districts in IndonesiaExpenditure


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Results on a Sample of Districts in IndonesiaTotal Education Expenditure: Kab. Batang


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Results on a Sample of Districts in IndonesiaSD/MI Expenditure: Kab. Batang


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Results on a Sample of Districts in IndonesiaSMA/MA Expenditure: Kab. Batang


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Results on a Sample of Districts in IndonesiaSD/MI Enrollment: Kab. Batang


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Results on a Sample of Districts in IndonesiaSMA/MA Enrollment: Kab. Batang


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Results on a Sample of Districts in IndonesiaSD/MI and SMA/MA Teacher Demand: Kab. Batang


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Conclusions on a Sample of Districts in Indonesia

  • If implemented, the proposed SPM would result in large expenditure increases for many districts

  • Achievement of SPM would require substantial level-specific actions/changes for each district

  • Time as well as money will be required


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Issues/Questions on a Sample of Districts in Indonesia

  • Are the proposed SPM Affordable?

  • Are the SPM really “minimum service standards”?

  • Should all districts be subject to the same SPM?

  • Should SPM apply to all of education or to particular aspects?

  • What about empowerment of schools, school committees, and district education boards?

  • Why are the enrollment SPM not met?

  • How to finance SPM?

  • How to hold districts accountable for meeting SPM?


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Looking Forward on a Sample of Districts in Indonesia

  • Before promulgation, more analysis: financial and educationist perspectives

  • Definition of obligatory functions within education

  • Tsunami Impacts? focus, spending priorities, timeframe


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