KIPI Melbourne

Abstract

 

Impact of Education Decentralization toward Quality Improvement, Reduction Disparities and Regional Financial Balancing in Indonesia

Sunyigono ANDRIE KISROH, Philippines

1.      INTRODUCTION

The implementation of regional autonomy, which refers to Law No. 22 and 25 in 1999 has an impact on the education sector. As one of the basic services sectors, this sector will change significantly. It is caused by implementation of decentralization of education and fiscal decentralization.

 
This paper aims at analyzing the implication of decentralization of education. The spesific objectives of this paper are: to analyze the effects of decentralization of education on education quality, to identify the ability of the decentralization to reduce educational disparities in provincial level and to analyze the implications of regional autonomy and fiscal decentralization to decentralization of education in Indonesia.

2.      METHODOLOGY

The data used in this paper are secondary data include: APBN, APBD Provincial / District, LAKIP Depdiknas, and Renstra Depdiknas. The author also collects information that relevant to Indonesian national education condition. The area of this study covers national level starting from 2000 to 2008. The reason why author chooses this periode because it is able to cover the phase before and after implementation of decentralization of education. The study uses qualitative method to describe the phenomena and to analyze the relationship among them. Besides, the quantitative method is also used to measure the impact of decentralization on the national education.

3.      FINDINGS

-          The implementation of education decentralization can improve some educational indicators such as gross enrollment rate and reduced literacy rates but tend to increase the disparities of education quality between the provinces.

-          Per capita block grant transfers in education budget did not fully address the education problem.

-          Proportion of education budget in the region is still far from the budget allocation in accordance with the mandate of Law of National Education System.

-          Composition of local education spending was dominated for most of the salaries and regular expenses rather than development expenses.

4.      RECOMMENDATION

Regional financial Balancing

-          Change the formula of the general allocation of funds (DAU) calculation, especially for education by entering the relevant variables such as gross enrollment rate, and level of illiteracy.

-          Implementation of the mandate of the Law of National Education System, especially for the provincial education budget has not been allocated by 20% of their budget.

Quality Improvement

-          Strengthen management of education services in order to encourage the quality of education through improving the good governance of educational institution.

Reduced Disparities

-          Increasing the capacity of local governments and education stake holders to implement the decentralization of education especially for local government in remote areas.

-          Eliminate gender disparity in elementary school and junior high school.

KEYWORDS:

Education, Decentralization, Fiscal, Disparities,

Biography of THE First Author (max 100 words)

The author was born in April 13, 1973 in Banyuwangi East Java. Now, he is pursuing PhD in Agricultural Economic in University of the Philippines Los Banos under DGHE Scholarship.

Since 2002, He is a lecturer and researcher in Department of Agribusiness Trunojoyo University.  His research focused on agribusiness economic and management, community development and economic development. He held grants for research from DGHE, DIPA-IRJAT and some local governments.

His research work has been published in accredited journals such as Agritek, Wacana and Jurnal Manajemen, Akuntansi dan Bisnis. He was a finalist of Scientific Writing Competition in France in 2009.