The Indonesian Crisis: A Human Development Perspective

7. The Indonesian Economic Crisis: Impacts on School Enrolment and Funding

182 Djoko Hartono and David Ehrmann© 2003 Institute of Southeast Asian Studies, Singapore m n DJOKO HARTONO AND DAVID EHRMANN Introduction The impacts of the economic crisis in Indonesia on education enrolments and drop-out rates have not been as devastating as initially feared. School incomes, however, have been hit hard by the crisis. This chapter examines how the crisis has affected key educational indicators since the 1997/98 academic year. The findings of the study reflect the authors’ analysis of several previously published sources of data from the Central Independent Monitoring Unit (CIMU), which independently monitors and evaluates the Scholarships and Grants Programme (SGP), one component of the Indonesian Social Safety Net programme. The CIMU has published a number of reports on the economic crisis, education, and the Scholarships and Grants Programme. The analysis begins with a description of the education system, summarizing the policy focus at the time when the crisis first struck Indonesia. Detailed findings from the CIMU national survey data are used to describe the varying effects of the crisis on education. Other data sources are also examined to determine the consistency of findings from the CIMU data with those from other sources. The chapter concludes with an analysis of the impact of the Scholarships and Grants Programme, a major donor-supported government intervention to mitigate the effects of the crisis on the school system. 7 182 THE INDONESIAN ECONOMIC CRISIS Impacts on School Enrolment and Funding Reproduced from The Indonesian Crisis: A Human Development Perspective, edited by Aris Ananta (Singapore: Institute of Southeast Asian Studies, 2003). This version was obtained electronically direct from the publisher on condition that copyright is not infringed. No part of this publication may be reproduced without the prior permission of the Institute of Southeast Asian Studies. Individual articles are available at . The Indonesian Economic Crisis 183© 2003 Institute of Southeast Asian Studies, Singapore The Indonesian Educational System and Development The Indonesian education system consists of several levels, including pre-school, primary school, junior secondary school, senior secondary school, and a range of post-secondary education programmes. According to Indonesian law No. 2/1989, basic education lasts for nine years, consisting of six years of primary school plus three years of junior secondary school. Management responsibility for education falls on several different government ministries. The Ministry of National Education manages the general primary schools, junior secondary schools, and senior secondary schools. However, the general primary schools are not only managed by the Ministry of National Education but also by the Ministry of Home Affairs. The Ministry of Religious Affairs administers some primary schools known as Madrasah Ibtidaiyah (MI), some junior secondary schools known as Madrasah Tsanawiyah (MTs), and some senior secondary schools known as Madrasah Aliyah (MA). In addition to the distinction between general and Islamic education, there is also a distinction between general and vocational secondary education (Sekolah Menengah Kejuruan or SMK). Vocational secondary education emphasizes specific occupational skills and preparing students to enter the world of work. This vocational secondary education is also managed by the Ministry of National Education. In 1984, the Government of Indonesia declared six years of compulsory education for primary school-age children (7–12 years). This policy has increased participation rates in primary schools from 79.3 per cent in 1983 to 92.2 per cent in 1993. In 1994, compulsory education was extended to nine years (Wajib Belajar Pendidikan Dasar 9 Tahun) commonly referred to as Nine Year Universal Basic Education (NYUBE) so that it would encompass both six years of primary education and three years of junior secondary education. Educational indicators showed improvements before the crisis, particularly during the 1990s. The percentage of school-age children who had never attended school declined, school attendance rose, and there was a decline in drop-outs. These indicators varied slightly across different age groups.1 The trend of enrolment rates in Indonesia from 1980 until the current crisis showed general increases although there was a marked decline in junior secondary enrolment between 1988 and 1994 (see Figure 7.1 on “Gross Enrolment Rates”). At the same time, there was a significant rise in drop-outs at the junior secondary level. This figure reached 12.4 per cent during the 1988/89 school year. It has been widely accepted that 184 Djoko Hartono and David Ehrmann© 2003 Institute of Southeast Asian Studies, Singapore these trends resulted from the economic crisis that occurred in 1986...