RELATIVE EFFICIENCY AND EFFECTIVENESS ANALYSIS ON EDUCATIONAL OUTCOMES WITHIN PROVINCES IN INDONESIA PRIMARY AND SECONDARY SCHOOL IN 2006-2011

Education as an investment in human capital needs a certain funding to expand educational outcomes, namely education for all children and educational quality. Recent policy that government made to achieve these goals is by given financial commitment of minimum 20 percent share of budget allocated for education. This study focuses in analyzing the relative efficiency and effectiveness of policy education expenditure to education outcomes at primary and secondary level of school within provinces in Indonesia. This study finds that after the implementation of government policy of minimum 20 percent budget on education spending, Bangka-Belitung is found to be the only province at the production possibility frontier in second period (2009- 2011) by all DEA models, which implies that Bangka Belitung is relative efficient (efficiency score equal to 1) compare to other provinces. However, provinces that are not in the efficiency frontier do not necessarily imply that they are substantial inefficiencies, likely it a negative effect on outputs caused by environment factors. 1 Moreover, this study also found that implementation of education spending policy has affect education outcomes both in enrolment rates (GER-SD, GER-SMP, NER-SMA and GER-SMA) and human development index