Public Financing for Low-cost Private Schools

Rohan Joshi
Discussion paper Center for Indonesian Policy Studies • September 2018 Indonesia

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Indonesia has a unique private schooling segment which contributes about 35% to the total number of schools in Indonesia. This segment mainly consists of Madrasah and Pondok Pesantren, which come under the Ministry of Religious Affairs (MoRA), while public schools come under Ministry of Education and Culture (MoEC). There is a much smaller and nascent sub-segment of private International schools, currently restricted to urban Java region. Madrasahs and Pesantren preexist public schools. They are both historic, culturally rooted and widely spread across the vast geography of Indonesia. Recognizing historical association of community-based educational institutions such as Madrasahs and Pesantren, the Education Law (Act 20/2003) of Indonesia states that the communities have the right to provide education, which is aligned with the social and cultural norms of the community.





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