Location

The Centre for Regional Information and Studies (PATTIRO) examined the many schemes that fund Indonesia’s highly decentralized education system. Researchers focused on seven financing schemes—three that fund operating expenses and four that fund investments—in 38 elementary and secondary primary schools in two Indonesian regions: Serang Regency, in Central Java, and Gresik Regency, in East Java. They found weaknesses in all the schemes: the allocation of funding is confusing and opaque, there are delays and substantial leakages along the funding stream, funding is often not spent on what it was intended for, reporting on spending is often inaccurate, and auditing is cursory at best.