Education Sector in Indonesia

The implementation of national education is based on Pancasila (The State Philosophy) and UUD 1945 (the 1945 Constitution).

  • Indonesia has 100 million residents under age 19.
  • Globally, the pupil-teacher ratio in Indonesia ranks 83rd.
  • By 2035, the number of collegebound Indonesians is expected to be among the world’s the top 10.
  • English remains the largest gap for Indonesian workers.
  • Government spending on education was only 2.8% of GDP, making its global rank 157th.

Beginning in 2013, the length of Indonesia compulsory education was extended from 9 to 12 years. This represents a great opportunity given the country’s projected demographics. Indonesia will experience growth on the productive age population compared to the non-productive age population until after 2050. By 2050,  Indonesia will have well over 200 million residents of productive age. A good education quality provided by government today will bring demographic dividend to Indonesia.  This will be an advantage in the future, allowing people to get better jobs, salaries, and a better quality of life.

 

Teachers Recruitment

However Indonesia lacks teachers. According to data from Nation Master, in 2011 pupil-teacher ratio in primary school was only 15.94 (ranked 83rd). And according to data from Nation Master, in 2011 pupil-teacher ratio in secondary school was 14.77 (ranked 51st). Indonesia also lacks good teachers, as less than half of the country’s 2.7 million teachers meet minimum requirements. To improve the quality of teachers, the Ministry of National Education and Culture runs several programs, including regular certification tests. Its target is to complete certifications by the end of 2015 and only recruit professional teachers after 2015. In 2013 the education system received a total of US$34.9 billion, the biggest amount to any sector in Indonesia.

A study by the British Council found that in 2035, Indonesian post-secondary students are expected to rank among the top 10 worldwide in terms of numbers. About 2.6 million Indonesian students will enter higher education in the next decade. Indonesia currently has more than 3,400 higher education institutions, with the most popular fields of study being business, IT and accounting/finance, medicine, health sciences, linguistics and engineering. Higher education in Indonesia is concentrated in the major cities of Java: Jakarta, Bandung, Surabaya, Semarang and Yogyakarta. About 30,000 Indonesian students are pursuing higher education abroad, accounting for 1 percent of global internationally mobile students.

 

Teacher Skills and Quality

For young workers, there are some major gaps in creativity, computing and some technical skills,  the biggest one being English language skill. Most studies confirm these gaps happen because of poor education and training quality for Indonesian workers. To shrink these gaps, the government is increasing the number of vocational secondary schools. This effort making the compulsory education program 12 years, and requiring state universities (PTN) to accept prospective students from poor families.

It is possible to set up a company with a local partner to provide education sector services, such as teacher training, research and academic advisory.

You can continue reading about

Success story of a medical manufacturer in Indonesia
Czech companies at InaGreen Tech fair in Jakarta, Indonesia
First steps and characteristics of doing business in Indonesia

 

Feel free to contact us for a free quotation on entering the education sector in Indonesia.

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