Decentralization Impacts on The Educational System in Indonesia Bambang Hermanto (elbarmaq@gmail.com)

Introduction After Reform, Indonesia has created a decentralized educational system. Local government authority has increased in Education (Ryaas Rasyid, 2003). Some research has shown that education has improved because local governments are responding more through educational budget (R.R. Simatupang, 2009). This article concerns how the decentralized system has effected educational quality, especially how the budget on educational expenditure influence the educational quality.

Literature Review There are inconsistency policies in the education system in Indonesia (Raihani, 2011) The lack of guidelines from the central government has exacerbated educational uncertainty (Ryaas Rasyid, 2003) Is the Indonesia education getting better or even worse after decentralization??

Methodology The main data source of this research is government data particularly data from Central National Statistic Board The data were compared by the official measurement by the Ministry of Education and Culture toward educational quality.

Educational Quality After Reform One of the basic indicator of educational quality is the participation index on the elementary to the university level. The elementary level remain steady The middle level education which is the local government authority has been increased gradually The Universities level tends to be fluctuating

Figure 1. Indonesia`s participation Index 1994-2014 Source: national statistic Board 2015

Local government Budget on Education Source: national statistic Board 2015

Budget Comparison From 34 provinces throughout Indonesia, no one has put 20 percents of its education budget in the Local Revenue and Expenditure Budget (APBD), even the Education Act has mandated that education budget not less than 20%. The highest percentage budget on education is DKI Jakarta (18,4%) and the lowest is Papua (1%). Average budget percentages on educational expenditure in Indonesia is around 2-6%.

Source: The Ministry of Education and Culture (2012)

Result: the first top 10 provinces in educational quality is Yogyakarta which only has spent its budget 8 % to the educational expenditure. Moreover, Bali the province with only 4 % for educational spending, it took the third position in the chart. In contrast, Aceh and south Borneo, which spent more than 8 % of their budget, did not hit the top 10 list.

Conclusion After the implementation of decentralization era, every province has more responsible about the quality of education. The local government has provided budgets on education but it is not influence to the quality itself, because there are some provinces with the lower budget indicated the better quality.

References Rentanida Renata Simatupang, Georgia State University, Economics Dissertations Department of Economics, 2009 Ryaas Rasyid, (ed.) Local Power and Politics in Indonesia, ed. By Edward Aspinall and Greg Fealy. Singapore: ISEAS, 2003