1. The Impact of Indonesia’s Decentralization on Education Sector:
A Case Study of Lampung Province and Bandar Lampung Municipality
By Dendy Mashuri

2. The new order government based on law no. 5/1974
Central
Government
Provinces
Municipals/Districts
Law No. 5/1974

3. Framework of Government According to Law No.22/1999
Central
Government
DPRD/House of
Representative
DPRD Province
DPRD Municipal
DPRD District
Province
Municipal
District
DPRD
Choose the
Governor
Major
Reagent
Report the responsibility
Decentralization
Deconcentration
Assistance
Framework of Government
According to Law No.22/1999

4. Framework of Government According to Law No.32/2004
Central
Government
DPRD/House of
Representative
DPRD Province
DPRD Municipal
DPRD District
Province
As central
Representative
District
Municipal
People
Elect for
Governor
Mayor
Reagent
Corporate as a partner
Decentralization
Deconcentration
Assistance
Framework of Government
According to Law No.32/2004

5. Anatomically, the government affairs divided by two aspects:
Absolute Affairs (Central Government; National Monetary, Foreign Policy, Defense, Security, Religious and Judicial)
Concurrent Affairs: Externality, Accountability, Efficiency (The affair that can be handling together by province, municipal/district and central)-----

6. Supply and Demand on Education Sector
Decentralization
Law No.22/1999
Regional Administration
Supply
Demand
Learning
Achievement
Local Context: Local government
1. Public Spending & Program Policy
2. Local Content Curriculum
3. Competency Based Curriculum
4. School Operational Assistance
The Perception of
Local People
Supply
Demand
Supply and Demand on Education Sector
(Sources: Adapted by the Author from Filmer 2003)

7. MoRA MoE Provincial Government Local Government Public School Madrasah
Ministry of Religion
Affairs
MoE
Ministry of
Education
Central Government
Bappenas
National Planning
Board
DAU & DAK:
General Allocation Fund & Specific Allocation Fund
Provincial
Government
DAU & DAK
The Operational
Grant Fund
National Budget/
School Operational
Assistance/BOS
National Budget/
School Operational
Assistance/BOS
Local
Government
Public School
Post-Decentralization Multiple Flows
(Source: Adapted from Kaiser 2004 in World Bank 2004)
Madrasah
Islamic School

8. International Comparisons of Education Expenditures
(Sources: Edstats and the World Bank 2007: 11) [1]

9. Allocation Fund for Education Sector in Lampung Province
Rp.42,171,704,065
Rp.38,378,674,286
Rp.33,450,660,000
Rp.28,917,306,625
Rp.22,360,000,000
Rp.11,194,800,000
Rp.6,561,000,000
Rp.10,918,600,000
1999
2000
2001
2002
2003
2004
2005
2006
Allocation Fund for Education Sector in Lampung Province
(Source: Compiled by Author based on APBD Lampung Province )

10. Bandar Lampung Municipality
Rp.219,990,700,000
Rp.169,449,900,000
Rp.182,426,300,000
Rp.8,004,500,000
Rp.6,848,100,000
Rp.1,344,700,000
Rp.6,216,500,000
Rp.1,776,900,000
1999
2000
2001
2002
2003
2004
2005
2006
Allocation Fund for Education Sector in Bandar Lampung Municipality

11. Survey result whether the spending money on education sector in Lampung Province has already enough

12. Survey result whether spending money on education sector from Bandar Lampung Municipality sector has enough

13. Survey result whether education sector under decentralization is better than before decentralization

14. Survey result whether Local Content Curriculum improve the student quality

15. Survey result whether Competency-Based Curriculum improve the quality of student

16. Survey result whether the SOA improve the quality of student

17. Survey result whether the SOA has given to right people

18. Survey result whether SOA should be handled by local government

19. Conclusion
The survey results reveal that the Indonesia’s decentralization on education sector in Lampung Province gave significant impacts such as:
1st. On financial budgeting: the education sector after three year lack of funding finally local regions can increase their expenditure on educational sector.
And 2nd. on education program, the policy such as local content, CBC and SOA beneficiary to local people/student, and so far well mobilized towards the development.