Education Budget Allocation

The issue of whether or not there was a constitutional requirement for the government to allocate 20% of the State Budget to education or not has been resolved by the Constitutional Court. The Constitutional Court has held that there is an obligation on the government to allocate 20% of the State Budget to education. Therefore, in order to facilitate the implementation of Article 80 of Government Regulation No. 48 of 2008 and to comply with the decision of the Constitutional Court, the Minister of Finance has issued Regulation No. 86/PMK.02/2009.

The regulation sets out the definition for the functional education budget. The allocation stipulates that the salaries of educators are to be included in the 20% allocation. However, the allocation does not include the budget for the provision of education to those engaged in government service. Nevertheless, it is expected that salaries will consume a large amount of the 20% allocation. And, therefore, it is unclear as to exactly how much of the remaining budget will be directed to specific education initiatives.

Some of the budgeted areas (sub-functions), among others, include:

All other regulations related to the education budget remain in force in so far as those regulations are not contrary to this regulation.

The regulation has been in force since 30 April 2009.