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EducationChallengesin

IndonesiawithSpecial
ReferencetoIslamicSchooling
Risti Permani
SchoolofEconomics
TheUniversityofAdelaide
PresentedattheIndonesiaUpdate
2425September2010,TheAustralianNationalUniversity

Motivation
Persistentincome
inequality
Educationalinequality
Toensurechildrenfrom
poorfamilieshave
accesstoeducation
Madrasah:apathway
outofpoverty?

Objectives
Toassessrecentdevelopmentinthe
educationsectorinIndonesiawithspecial
referencetoIslamicsecondaryschool.
ToidentifyproblemswithMadrasah
schooling.

SchoolFinance
Schoolsorting
Resources

Parentalbackground

Madrasah
MinistryofReligiousAffairscurriculum
Notdecentralised
Schoolfinance

SchoolOperationalAssistance
(Bantuan Operasional Sekolah orBOS)
TocoverMadrasahbasicoperatingcosts(Parkerand
Raihani 2009).
JointlyadministeredbyMinistryofNationalEducationand
MinistryofReligiousAffairs.
Thedeterminationofallocationsisconsideredunfairfor
traditionalIslamicschools(PesantrenSalafiyah)where
numberofstudentsfluctuatesovertime(Suharyo,Sumarto
etal.2006).
Doublereporting:tobothMinistryofReligiousAffairsat
thecentralgovernmentandregionaleducationaloffices
Lesssupportforreligionofficesduringthesocialisation
phase(Suharyo,Sumarto etal.2006).

Guidelinesof2006budgeting:forbidlocal
governmentstoallocatetheirregionalbudget
toverticalinstitutionsi.e.underjurisdiction
ofthecentralgovernmentwhichincludes
Madrasah andothertypeofIslamiceducation
institutionsPesantren.

Schoolsorting
Reflectsabilitysorting,neighbouringsorting,
etc.
Schoolchoice
Ifeducationchoiceleadstoahigherdegreeof
sortingbyabilityandpeereffectsmatter,then
thedistributionofeducationalbenefitsis
likelytobequiteunequal(EppleandRomano
1998).
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Reasonsnot tochooseMadrasah?
Facilities?In2007:onlya
halfoftotalnumberof
Madrasahclassroomsare
inagoodcondition.
Betteracademic
performance?religious
studiesaredeliveredat
theexpenseofmore
economicallyrelevant
subjectssuchasmathand
scienceassuggestedby
Hanushek andKimko
(2007).
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Academic
performance
maximisers
versus
education
expenses
minimisers.
Lowcost
education?

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Madrasahjuniorsecondarychoice
Sourceofdata:IFLS4,Probitanalysis

Significant

Insignificant

PrimaryMadrasahattendance
(+)
Mothersreligiosity(+)
Repeatingagrade(s)atthe
primaryschool(+)
Principalseducational
background(whether
completedpostgraduate
study)()
Principalsexperience(+)
Schoolsaccesstoelectricity
(+)

Educationvariables:Education
costs,UANscoresatprimary
level.
Householdvariables:parental
educationalbackground,
fathersreligiosity,land
ownership,hourlyearnings
andlivinginurbanareas.
Schoolvariables:provisionof
governmentassistance(BOS,
etc),theroleofschool
committee.
Etc.
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Curriculumcontent
Religiouscourses=30%totalhoursof
schooling.
The1989reform noevidencethat
reductioninproportionofreligiouscourse
increasesacademicattainment,earningsof
Madrasahgraduates;itincreasesprobability
ofcontinuingJSSin.

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Toextendhoursofschooling
Aboardingsystem
Informalreligiousstudieseg.Pesantren

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Resources

Excesssupplyofteacherswhohaveshortworkinghours

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Teachersstatusofemployment

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Teacherseducationalbackground

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ConcludingRemarks
Structuralchanges:
rolesofMRA,local
governments.
Underoneroof
management
Potentialstoprovide
accesstoeducationfor
lowincomefamilies
especiallythoseinrural
areas.
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