Tue, 27 Jan 2004

Budget for education still way below standard

P.C. Naommy, The Jakarta Post, Jakarta

Minister of Finance Boediono told the House of Representatives Commission VI on Monday that 2009 would be the earliest that the government could provide the 20 percent budget allocation for education as required by law.

During a hearing with the Commission responsible for education and culture, Boediono said that this projection could only be attained under the assumption of a minimum 5 percent annual economic growth and 8 percent budget expansion during the next five years.

Boediono's scenario projected a maximum budget allocation of 22.5 percent by 2009, with the understanding that routine expenditures for teachers' salaries and departmental administration costs would be deducted from that amount.

According to Article 49 of Education Law No. 20/2003, the government should provide a minimum allocation of 20 percent from both the total state budget and the total regional budget.

However, the State Minister of the National Development Planning Board (BAPPENAS) Kwik Kian Gie, said this target was unrealistic.

Kwik said: "It could be said that Indonesia is bankrupt right now. I just can't understand how the House members could possibly ask for that large an amount while Indonesia is at its lowest financial condition."

Kwik also expressed irritation about the inconsistency of the House members who at one time required 20 percent allocated for education, while on the other hand, through its budget committee, it only approved 3.49 percent.

Concerning the 20 percent requirement cited by the House Commission VI this year for the education fund, Kwik said "that is a hard request to grant." He explained that 20 percent of the entire state budget would total Rp 87.7 trillion, while the total allocation for all development, from which the education fund is derived, is only Rp 70.9 trillion. "That means we'd face a deficit of Rp 17 trillion (assuming no other development-related allocations)."

Previously, the chairman of the House Commission VI Taufiqurrachman Saleh lamented the insignificant allocation for education proposed by the government, saying it did not show enough concern for students or teachers.

The government has allocated Rp 15.3 trillion for the education sector or 3.49 percent of the total state budget of Rp 439.8 trillion in 2004, which was only 1.2 percent higher from the Rp 12.8 trillion allocated in 2003.

Other Asian countries, such as Malaysia, Thailand, the Philippines and Singapore show great concern in developing their education sector by respectively allocating 23 percent, 22 percent, 20 percent and 19 percent from their total state budgets.