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Finance Ministry focuses on high-quality human resources with Rp 660.8t education budget

Josa Lukman (The Jakarta Post)
Jakarta
Thu, October 12, 2023

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Finance Ministry focuses on high-quality human resources with Rp 660.8t education budget (Courtesy of Finance Ministry)

T

he world of work has been transformed by the all-digital Fourth Industrial Revolution (Industry 4.0), and human resources have increasingly become vital for countries in the face of technological advancements such as automation, as well as external threats like the COVID-19 pandemic.

A comprehensive education system plays a central role in the development of a knowledge-based economy. From early childhood to higher education, the system shapes future generations, which in turn fosters the development of knowledge, technology and innovation.

To carry out this role successfully, both domestic and international schools and universities must collaborate among themselves, as well as with industry at large, to ensure a strong connection with the workforce, supported by the capital of a highly capable and competent teaching staff.

As part of the Golden Indonesia 2045 vision to develop superior, innovative and competitive human resources with integrity, the government has allocated an education budget of Rp 660.8 trillion, making up 20 percent of the 2024 state budget (APBN).

The budget is divided into a central government spending allocation of Rp 237.3 trillion; transfers to regions through the general allocation funds (DAU), revenue sharing (DBH), special allocation funds (DAK) and special autonomy funds (Dana Otsus) of Rp 346.6 trillion; and investment financing of Rp 77 trillion. Overall, the 2024 education budget is an increase compared with the 2023 education budget of Rp 612.2 trillion.

Finance Ministry Director General of Budget Isa Rachmatarwata said strong efforts and commitment are needed in the efforts to answer current and future challenges. The focus is also on universities, with the provision of higher education services supported by the APBN continuing to increase from year to year.

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"Improving the quality of Indonesia's human resources is emphasized in increasing the competence of teachers and education personnel, equalizing the quality of education through increasing the distribution of teachers and educational infrastructure, and improving the quality of early childhood education centers [PAUD]," Isa explained.

In addition, the strategy seeks to increase access to education at all levels of education; improving the quality of infrastructure supporting educational activities, especially in underdeveloped, outermost and frontier (3T) regions; as well as strengthening the connectivity of vocational education with the job market.

"Through this budget, the Finance Ministry is also committed to expanding scholarship programs, advancing culture, strengthening world-class universities, and developing research and innovation."

No one left behind

The government has increased the budget for scholarships and social assistance (bansos) for education to Rp 35.94 trillion in 2024, up from Rp 28.9 trillion in 2023. This increase is more than five times the scholarship budget for 2013.

According to Isa, the budget increase is meant to provide educational guarantees to the community from elementary to higher education levels, so as to expand access to education.

This is in line with the principle of President Joko “Jokowi” Widodo's government, that no citizen is left behind in obtaining the right to education.

"Scholarships and educational social assistance are realized through various efforts and assistance to schools and students, such as the Educational Unit Operational Assistance Program [BOSP] for schools. For students, scholarships are distributed through the Smart Indonesia Program [PIP], Secondary Education Affirmation [ADEM] and Higher Education Affirmation [ADik]," explained Isa.

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. (Courtesy of Finance Ministry/.)

As the concept also includes students in the 3T regions, people with disabilities and migrant workers, universities and other educational institutions play an important role and responsibility in realizing the government’s goals.

“For that reason, let's together promise that ranking is not the main goal. Our main goal is how the ranking can provide benefits for national economic growth and improve people's welfare."

On the other hand, challenges for the world of education and the world of work often lead to differences in paths, which require a bridge between universities and industry through the spirit of Kampus Merdeka (Freedom Campus), which provides ample space for students to develop their potential.

Consulting firm McKinsey has predicted that due to the rise of artificial intelligence (AI) and automation, some jobs will start to disappear. However, new job opportunities are emerging by taking advantage of continuously developing technology, which challenges universities to prepare competencies that suit the new industries, thereby creating a new generation of workers who are more adaptive and flexible in accordance with the spirit of Kampus Merdeka.

"Various programs have been carefully prepared in terms of targets and funding, so that they can be implemented as smoothly as possible by paying attention to efficiency and effectiveness and maintaining accountability in their implementation in order to achieve the planned targets," concluded Isa.

Source: The Finance Ministry

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