FUNDING POLICIES ON EDUCATION REFORM IN INDONESIA

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