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rivate sector contribution to national education is a potentially crucial resource that remains largely untapped, a foundation says.

Putera Sampoerna Foundation, which works in partnership with 200 corporations, said that since 2001 it had helped 34,000 students return or stay in school.

The National Education Ministry said approximately 1.5 million students aged between 13 and 18 dropped out of school each year.

A public relations officer at the foundation, Astried Anggraini, said the foundation could not work alone in its endeavor to help the government provide education for all.

“The contributions from the private sector could be much more,” she said.

Education expert Darmaningtyas said corporate philanthropic resources had played a vital role in developing more positive and enduring changes in the country’s education sector, which was hampered by a lack of governmental financial support.

“I think corporate philanthropy has had a significant impact in broadening educational opportunities in the country,” he told The Jakarta Post.

Many innovations have emerged under various programs funded by corporate philanthropy, bringing benefits both for the corporations and the receivers of the funds.

Many big companies are deciding to invest more in education as part of their efforts to raise the quality of manpower, something that is desperately needed if Indonesia is to be able to compete with global competitors.

Darmaningtyas said a lack of funds still remained the biggest obstacle in Indonesia’s education sector.

According to the National Education Ministry, out of a total budget of about Rp 1,200 trillion, the government allocates Rp 221 trillion (US$24.75 billion) for the education and training of civil servants, of which the ministry receives only Rp 65 trillion for schools from elementary to university levels.

“How can we deliver quality education with such a small portion of the budget,” Darmaningtyas said.

The International Labor Organization said in a 2004 report that 92.8 percent of street children sold drugs to cover their daily basic needs, with many becoming drug users.

The government has developed various education programs such as School Operational Assistance and Compensation Program for Reduced Petroleum Fuel Subsidies.

However, these financial programs were not enough to resolve the problem in the education sector.

Despite limited resources, Astried said Putera Sampoerna Foundation had tried to provide quality educational facilities for Indonesian students with good academic performance and who came from poor and low income families.

“We want to create future leaders and potential entrepreneurs who are ready to face global challenges,” she said.

Since 2001, the foundation has carried out corporate philanthropic activities for education for more than nine years through various programs, including Sampoerna Academy, Sampoerna School of Education, and long-term soft loans for student financing provided for schools by Putera Sampoerna Foundation.

“I think education is the key since we believe that the root of our problems is lack of leadership,” she said.

In December 2009, the foundation started a program called “Save a Teen”, which aimed to help junior high and high school students stay in school despite their financial problems.

As of October 2010, the program managed to help 4,000 students but the number was far below the foundation’s target of 12,000 students annually due to the lack of funding.

To raise funds for the program the foundation worked with 45 retail partners from banks to restaurants, trying to attract not only corporate donors but also individual donors.

In 2009, the foundation recorded Rp 181.81 billion of contributions and earnings and 13 percent of them were from individual donors while 42 percent were from institutional ones.

Indika Energy corporate secretary Anang Rizkani Noor said the company viewed corporate philanthropy in education as a long-term investment.

“Education is key for Indonesia to win the global competition in the future,” he told the Post.

Indika Energy has run various educational programs coordinated by its subsidiaries, Tripatra Engineering and Petrosea.

Indonesia Mengajar, a program set up by an organization led by Anies Baswedan, and funded by Indika Energy, selects many young intellectuals and hires them to teach students at elementary schools in remote areas throughout Indonesia.

“We have 51 young teachers across the country,” Anang said, citing another Petrosea supported program that aimed to improve computer literacy among elementary school teachers. (ebf)