FUNDING POLICIES ON EDUCATION REFORM IN INDONESIA

This study examines the management of government funding for education reform in Indonesia. Funding \neducation is strategic in improving the equity and quality of human resources in Indonesia. Regional differences, \neducational resources between districts/cities and the ability of parents and the community bring about \ndifferences in the amount and sources of funding for education. Education funding is the responsibility of the \ncentral government, local government and the community. The Indonesian government established a policy meet \nthe needs of the education budget from the state budget in the form of budget of the Ministry, the General \nAllocation Fund, the Special Allocation Fund and school operating costs. The education fund from the local \ngovernment is to increase the aid budgets of school operating costs and scholarships. The implementation of \neducation funding is according to the regulations set forth in the financial area of Law Number 17 of 2003. The \nfindings of this study show that the implications of education reform authorizes the regency/city governments in \nmanaging education funds both from national and regional budgets. The district government, and parliament \nestablish policies and budgetary priorities of education. More than 20% budget allocations for education in \nIndonesia state and local budgets. Reform education funding also carries implications for every school and school \noperational assistance to manage the special allocation fund derived from state and local budgets. The Principal \nin collaboration with the School Committee do the planning, administration, supervision and accountability of \neducation funding. The problem of education funding reform is the financial systems and procedures, planning \nand budgeting, financial management and skilled manpower limitations. The legal uncertainty into the \nmanagement of public financial management in the implementation of education funding problem in Indonesia. \nKeywords: Funding, School Reform, Education, Accountability.