Education Budget in the Indonesian State Budget 2026
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| Source photo by Editing POINT Consultant from Gemini aplikasi |
The Prabowo administration's 2026 education budget was designed at Rp 470.46 trillion. The 2026 education budget will still be distributed through 23 ministries/agencies, as in 2025. The largest portion goes to the National Government Agency (BGN), with Rp 223.55 trillion, equivalent to 47.51% of the total budget.
READ ALSO (Indonesia Translation) :
Anggaran Pendidikan dalam APBN 2026
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The 2026 Education Budget Allocation is IDR 757.8 Trillion, a 9.8 Percent Increase from the 2025 Outlook.
The government allocated a budget of Rp757.8 trillion for education in 2026, or an increase of 9.8 percent from the 2025 budget outlook of Rp690 trillion. Minister of Finance (Menkeu) Sri Mulyani said that this increase reflects the government's commitment to maintaining the portion of education spending at 20 percent of the total APBN, in accordance with the constitutional mandate.
"The education budget is in accordance with what was conveyed by the House of Representatives and our constitutional mandate of 20 percent is maintained against the total expenditure," said the Minister of Finance at the DPR Budget Committee Working Meeting, Thursday (08/21/2025), in Jakarta.
The Minister of Finance explained that this budget allocation is divided into three main focuses of direct beneficiaries: students/university students, educators and education personnel, and educational infrastructure and operations.
Rp301.2 trillion of the total budget will be directly enjoyed by students through various assistance and scholarship programs, including the KIP Kuliah and Bidikmisi scholarships amounting to Rp17.2 trillion for 1.2 million students, the Smart Indonesia Program (PIP) amounting to Rp15.5 trillion for 21.1 million elementary, junior high, and high school students, the Education Fund Management Institute (LPDP) scholarship amounting to Rp25 trillion to finance 4,000 students, research activities, and other strategic education programs, and the Free Nutritional Meal Program (MBG) amounting to Rp223 trillion for 82.9 million people.
Meanwhile, the budget for teaching staff has also increased to Rp274.7 trillion. This includes various professional allowances from the Non-PNS Teacher Professional Allowance of Rp19.2 trillion for 754,747 teachers, the Non-PNS Lecturer Professional Allowance of Rp3.2 trillion for 80,325 lecturers, the Regional ASN TPG of Rp69 trillion for 1.6 million teachers, as well as the PNS TPG, PNS TPD, and educator salaries of Rp120.3 trillion.
"So these are teachers who are not civil servants who also receive TPG from the APBN, namely 754,747 teachers who actually have non-PNS status but still receive TPG paid by the APBN. Likewise with non-PNS lecturers," explained the Minister of Finance.
The government also allocated Rp150.1 trillion for the improvement and maintenance of educational facilities and school and campus operations, including the People's School program amounting to Rp24.9 trillion with a breakdown of Rp20 trillion for the construction of 200 locations and Rp4.9 trillion for operations, School Operational Assistance (BOS) amounting to Rp64.3 trillion for 53.6 million students, Early Childhood Education Operational Assistance amounting to Rp5.1 trillion for 7.7 million students, madrasah and school renovation amounting to Rp22.5 trillion for 850 madrasahs and 11,686 schools, State University Operational Assistance amounting to Rp9.4 trillion for 201 PTN and higher education institutions, and the construction of Garuda Flagship Schools amounting to Rp3 trillion for 9 locations.
As part of the decentralization of education functions, a budget of Rp253.4 trillion is distributed through regional transfers (TKDD) to cover allowances for public and private teachers, school operational assistance, early childhood education (PAUD), and equivalency programs.
"This is to ensure that regions, in implementing decentralization, can continue to operate their education functions. Rp253.4 trillion includes allowances for public and private teachers, school operational costs, operational costs for early childhood education (PAUD), and equivalency programs, as well as additional income for permanent teachers that can be directly felt by the community," concluded the Minister of Finance.
Imagine an Indonesia without decent schools, without teachers who are well-off, or without students who can continue their education due to financial constraints. In such a situation, it's difficult to imagine the emergence of reliable healthcare workers, engineers who build infrastructure, innovative entrepreneurs, or professional and virtuous civil servants. Every sector of life, from energy and food to industry and tourism, ultimately relies on the quality of education. Therefore, to say that education is the lifeblood of Indonesia's long-term development is no exaggeration.
Education is not simply a classroom learning process, but rather the primary mechanism for developing competitive Indonesians. It determines how a nation manages natural resources, builds institutions, creates innovation, and maintains social cohesion. A country may possess abundant energy and mineral reserves, but without superior human resources, these resources cannot be optimally and sustainably utilized.
This view aligns with the direction of national development planning as emphasized in the 2025–2029 National Medium-Term Development Plan (RPJMN), which places human resource strengthening as National Priority 4. The government emphasizes that prosperous, adaptive, noble, superior, and competitive human resources are the primary capital for realizing the Vision of Golden Indonesia 2045. Within this framework, development is no longer defined solely as physical development, but must begin with the provision of basic services and the formation of human capital as the foundation for long-term transformation.
With a continuously increasing population and the ongoing demographic bonus, the quality of human resources is a determining factor in whether Indonesia can leapfrog into a developed nation or become trapped in the middle-income trap. The demographic bonus is truly a historic opportunity, but it will only become an advantage if it is accompanied by education that can produce a productive workforce, adaptable to technology, and possess strong character. Without quality education, the demographic bonus risks turning into social pressures in the form of unemployment, inequality, and economic vulnerability.
The targeted higher economic growth in the 2025–2029 period will also be unsustainable without a strong, inclusive, and relevant educational foundation. Consumption-driven growth has its limits, while productivity-driven growth requires long-term investment in education, skills, and innovation. This is why the RPJMN emphasizes inclusive human development based on gender equality, so that every individual, without exception, has an equal opportunity to optimize their potential and live a prosperous life, both physically and mentally.
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| Source photo from : Googling |
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| Source photo from : Googling |
Challenges in National Education
Despite its central role, the sector still faces significant structural challenges. The quality of Indonesian learning lags behind that of peer countries in the region. Various international assessments indicate that Indonesian students' literacy and numeracy skills are suboptimal. This issue relates not only to the curriculum but also to the quality of teaching, the learning environment, and support for students.
Beyond quality issues, disparities in access to education across regions remain significant. Disadvantaged, frontier, and outermost (3T) regions face limited infrastructure, unequal teacher distribution, and limited access to educational services. This disparity has the potential to widen the gap between social and economic inequality between regions if not addressed consistently and sustainably.
Another challenge arises in vocational and higher education. A significant number of vocational high school (SMK) and university graduates have not been fully absorbed by the job market. This situation reflects the weak link between education and industry needs. A curriculum that is less responsive to job market dynamics risks producing graduates who are academically educated but lack practical relevance.
At the same time, teacher welfare, particularly non-civil servant (non-ASN) teachers and teachers in regional areas, remains a crucial issue affecting the quality of the teaching and learning process. Teachers are key actors in the education system, yet many still face challenges regarding their well-being and limited competency development. Without qualified and prosperous educators, it is difficult to expect education to produce superior human resources as targeted in the National
Medium-Term Development Plan (RPJMN). If these challenges are not addressed seriously and in an integrated manner, education has the potential to fail in its role as an instrument of social mobility and a driver of long-term economic growth. Therefore, policy intervention through the state budget (APBN) is crucial.
Education Policy Direction in the 2026 State Budget
Recognizing these challenges, the government has placed education as one of the top priorities in the 2026 State Budget. Education is not viewed merely as a routine expenditure to fulfill a constitutional mandate, but rather as a strategic investment in human development that directly supports the policy direction of the 2025–2029 National
Medium-Term Development Plan (RPJMN). In the 2026 State Budget, the education budget reaches IDR 757.8 trillion, continuing the trend of budget increases in recent years. This large allocation reflects the state's commitment to building a strong foundation of human resources. The education budget is directed at three main focuses: equal access, improving quality, and strengthening the relevance of education to economic needs and structural transformation.
These three focuses align with the RPJMN agenda, starting from accelerating 13 years of compulsory education, improving the quality of teaching and learning, and strengthening education governance. Thus, the 2026 State Budget is an important instrument for translating the medium-term development vision into concrete fiscal policies.
Equal Access and Affirmative Action for Education
The government is strengthening various affirmative action programs to ensure that economic background does not become a barrier for Indonesian children to access education. The Smart Indonesia Program (PIP), the Smart Indonesia Card (KIP) for College, School Operational Assistance (BOS), and Early Childhood Education Operational Assistance (BOP PAUD) remain the backbone of expanding access to education at all levels.
These affirmative action policies align with the National Medium-Term Development Plan (RPJMN) commitment to building an inclusive and equitable human capital. Education is positioned as a basic right that must be guaranteed by the state, not a privilege for certain groups. Without strong fiscal intervention, social inequality risks widening, especially amidst uncertain global economic dynamics.
Furthermore, affirmative action for education policies has a long-term impact on reducing structural poverty. Children from poor families who gain access to quality education have a greater opportunity to improve their standard of living and contribute to the national economy.
Improving the Quality of Learning and Teachers
In addition to access, the 2026 State Budget also places significant emphasis on the quality of education. Revitalizing facilities and infrastructure, building superior schools, and strengthening teacher competencies are key components of the national education policy agenda.
The government will continue to provide Teacher Professional Allowances (TPG) and Teacher Supplements (Tamsil), including for non-ASN teachers. This policy aligns with the direction of the National Medium-Term Development Plan (RPJMN) to strengthen the management of qualified educators and education personnel. Teachers who are prosperous and whose competencies are continuously improved will be better able to create quality learning processes oriented towards character development and 21st-century skills.
Vocational Education, STEAM, and Linkages to the World of Work
In the context of economic transformation, relevant vocational and higher education are key. The 2026 State Budget encourages the strengthening of Vocational High Schools (SMK) Centers of Excellence, partnerships with businesses and industry, and the development of higher education based on Science, Technology, Engineering, Art, and Mathematics (STEAM).
This policy direction aligns with the National Medium-Term Development Plan (RPJMN), which emphasizes increasing the contribution of science and innovation (iptekin) and developing national talent. The goal is clear: to ensure economic growth is not only high numerically, but also inclusive, productive, and sustainable through the creation of quality jobs.
Education and Nutrition: Early Human Resource Investment
The 2026 State Budget also integrates education policies with health and nutrition improvements through the Free Nutritious Meals Program (MBG). This program emphasizes that education and health are inseparable components of human development. Healthy and well-nourished children have better learning abilities, higher school attendance rates, and optimal cognitive potential.
Education as the Foundation of Golden Indonesia 2045
Through a large budget allocation and increasingly focused policy direction, the 2026 State Budget demonstrates that education is positioned as the main foundation towards Golden Indonesia 2045. The challenges of quality, inequality, and relevance of education are addressed through a combination of state spending, policy reforms, and central-regional synergy, in line with the 2025–2029 RPJMN framework.
Thus, the 2026 State Budget is not merely an annual financial document, but a tool for social and economic transformation. Education is not just about classrooms and diplomas, but about Indonesia's future, about ensuring every child has a fair opportunity to grow, contribute, and lead this nation forward.
Education Funding in 2026 Remains at 20% of the State Budget, with MBG and BGN Allocations in the Spotlight
The government has ensured that the education budget in 2026 will remain at a minimum of 20% of total state spending, with a nominal increase compared to the previous year. However, the allocation structure has undergone a significant shift, primarily due to the Free Nutritious Meals (MBG) program and the role of the National Nutrition Agency (BGN).
Based on the 2026 Draft State Budget (RAPBN), the education budget is estimated to be in the range of IDR 757.8–769.08 trillion, or around 20% of total state spending, which is set at IDR 3,786.5 trillion. This figure increases by between 0.4% and 9.8% compared to the 2025 education budget outlook of IDR 690–724.3 trillion. The Minister of Finance emphasized that the education portion remains a top priority, along with efforts to strengthen the quality and equity of education services at all levels.
Funding Structure Changes
The 20% education budget scheme includes allocations through ministries/agencies (K/L), transfers to regions, the MBG program, and other financing such as education endowment funds. The budget through K/L ranges from IDR 243.9 trillion to IDR 470.46 trillion, depending on whether the BGN portion is included. Meanwhile, transfers to regions (TKD) are allocated around IDR 253.4 trillion to IDR 264.62 trillion, primarily for BOS (School Operational Assistance), early childhood education (PAUD) operations, and teacher professional allowances. Other financing funds, around IDR 34 trillion to IDR 37 trillion, are used for education endowment funds, research, Islamic boarding schools, universities, culture, and school revitalization.
The main highlight this year is the role of the BGN, which received an allocation of around IDR 223.55 trillion, becoming the largest user of the education budget among K/L. These funds are mostly used for the MBG program, which targets 71.9 million students, equivalent to almost a third of the total education budget.
Beneficiary Focus
The Minister of Finance divided the focus of the 2026 education budget into three main recipient groups: students and university students, educators and education personnel, and educational infrastructure and operations. The student and university student group, including recipients of the KIP/KIP Kuliah, PIP, educational cost assistance, and MBG, received an allocation of IDR 301.2–401.5 trillion. Educators and education personnel received IDR 274.7 trillion for salaries, professional allowances, and competency improvement. Meanwhile, the budget for educational infrastructure and operations includes the construction and rehabilitation of infrastructure, the BOPTN (National Open University Fund) for state universities, and the Ministry of Public Works and Public Housing's program to improve the quality of educational facilities.
The Substantive Policy Direction
of the 2026 KEM-PPKF Document emphasizes improving the quality and competitiveness of education through strengthening leading schools, improving infrastructure, increasing the APK (Program APK) for Early Childhood Education (PAUD) and higher education institutions, and strengthening vocational training that aligns with the needs of the workforce. The Draft State Budget (RAPBN) also highlights strengthening the quality of teachers and lecturers, Garuda schools, LPDP scholarships for approximately 4,000 recipients, and expanding the KIP (Karuda Education Fund) and other assistance at all levels of education.
The presence of the National Education Standards Agency (BGN) and the MBG program is a new phenomenon in national education financing, where a large portion of the K/L budget is now directed towards ensuring student nutritional intake. This step is seen as strategic to support student learning abilities and productivity, while also being a concern for local governments in managing the transfer of education funds and school operations.
With this new composition, 2026 marks a significant shift in the orientation of Indonesian education funding: from merely meeting operational and teacher needs, it now also includes the dimensions of student nutrition and health on a massive scale, under the coordination of the BGN.
Summary Article :
Education Budget in the Indonesian State Budget 2026
Based on the text provided, here is a comprehensive summary of the Indonesian Education Budget for 2026 :
A. Total Budget and Constitutional Mandate
Total Allocation: The 2026 education budget is set at IDR 757.8 trillion (within a range of IDR 757.8 – 769.08 trillion).
Growth: This represents a 9.8% increase compared to the 2025 budget outlook of IDR 690 trillion.
Mandate: The government maintains the constitutional requirement to allocate 20% of the total State Budget (APBN) which is set at IDR 3,786.5 trillion to education.
B. Shift in Budget Distribution
A significant structural shift has occurred due to the inclusion of the Free Nutritious Meal (MBG) program:
National Nutrition Agency (BGN): This agency receives the largest portion of the ministry-level budget, totaling IDR 223.55 trillion (approx. 47.51% of the total ministry-level education budget).
Regional Transfers (TKD): Between IDR 253.4 trillion and IDR 264.62 trillion is distributed to regions for teacher allowances, school operations (BOS), and early childhood education (PAUD).
Endowment Funds: Roughly IDR 34 – 37 trillion is allocated for the Education Fund Management Institute (LPDP), research, and school revitalization.
C. Three Main Focus Areas & Beneficiaries
The Ministry of Finance has categorized the spending into three primary pillars :
1. Students & University Students (IDR 301.2 – 401.5 trillion)
Free Nutritious Meal (MBG): IDR 223 trillion targeting 82.9 million people.
Smart Indonesia Program (PIP): IDR 15.5 trillion for 21.1 million students (Elementary to High School).
KIP Kuliah/Bidikmisi: IDR 17.2 trillion for 1.2 million students.
LPDP Scholarships: IDR 25 trillion for 4,000 new students and strategic research.
2. Educators & Personnel (IDR 274.7 trillion)
Non-Civil Servant (Non-PNS) Teachers: IDR 19.2 trillion for 754,747 teachers.
Non-PNS Lecturers: IDR 3.2 trillion for 80,325 lecturers.
Regional ASN Teachers: IDR 69 trillion for 1.6 million teachers.
Salaries & General Allowances: IDR 120.3 trillion.
3. Infrastructure & Operations (IDR 150.1 trillion)
School Operational Assistance (BOS): IDR 64.3 trillion for 53.6 million students.
Renovations: IDR 22.5 trillion for 850 madrasahs and 11,686 schools.
People's School Program: IDR 24.9 trillion (construction and operations).
Garuda Flagship Schools: IDR 3 trillion for 9 locations.
University Operations (BOPTN): IDR 9.4 trillion for 201 state universities.
D. Strategic Objectives (RPJMN 2025–2029)
The budget is designed to support National Priority 4 of the Medium-Term Development Plan to avoid the "middle-income trap" and achieve the Golden Indonesia 2045 vision by :
1. Improving Quality: Addressing low literacy and numeracy scores.
2. Bridging Inequality: Reducing disparities in access between urban and frontier (3T) regions.
3. Vocational Relevance: Strengthening the link between vocational schools (SMK) and industry needs (STEAM-based education).
4. Holistic Development: Integrating nutrition (MBG) with learning to ensure students are physically capable of absorbing education.
Conclusion
The 2026 budget marks a transition where education is no longer just about pedagogy and infrastructure, but also a massive-scale social and health intervention through the National Nutrition Agency, aiming to create a competitive and productive workforce for the future.
Reference Source:
(Ministry of Finance Public Relations/UN - Ministry of State Secretariat Public Relations)
https://setneg.go.id/baca/index/alokasi_anggaran_pendidikan_2026_rp7578_triliun_naik_98_persen_dari_outlook_2025
Disclaimer: "All information in this article is presented for educational and general information purposes only. The author does not warrant the completeness or accuracy of this information. Any action you take based on the information herein is strictly at your own risk."
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