Indonesia Boosts Education Budget Significantly

Published on 5.21.25

  Indonesia's education sector is set for a significant boost in the coming years, with the government proposing a substantial budget increase to support the establishment of new schools and improvement of existing infrastructure. The proposed 2026 education budget, estimated to range between Rp727 trillion and Rp761 trillion, reflects the government's commitment to providing quality education to its citizens. A key aspect of this plan is the establishment of "people's schools," which will be built in collaboration with regional governments. Home Affairs Minister Tito Karnavian emphasized the importance of cooperation in securing land, permits, and resources for these new schools. The goal is to have 100 operational people's schools by July 2025. The budget will also focus on improving teaching staff quality and expanding vocational education, with a particular emphasis on aligning learning outcomes with labor market demands. This is in line with the government's efforts to address the country's skills gap and provide students with relevant training for the workforce. Each school designed to accommodate up to 10,000 students. The proposed budget increase reflects a significant investment in Indonesia's education sector, which is expected to have a positive impact on the country's human capital development and economic growth.

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