THE IMPACT OF EDUCATION MANDATORY SPENDING POLICY ON THE ACHIEVEMENT OF EDUCATION DEVELOPMENT IN INDONESIA: FULFILLMENT OF THE 20% GOVERNMENT SPENDING MANDATE

• Main Author: Asriadi Putra, Septian
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/84302
• Institution: Institut Teknologi Bandung

There are at least 17 (seventeen) important aspects that are the centre of attention in development listed in the Sustainable Development Goals, one of which is listed in goal 4, namely Quality Education by Ensuring Inclusive and Equitable Education Quality and Increasing Lifelong Learning Opportunities for All. Thus, the government, as one of the important actors, feels the need to formulate good policies so that these goals can be achieved. In practice, governments provide enormous policy support, especially through stronger funding through the Education Mandatory Spending Policy. Several countries have implemented this policy including Indonesia. Through the Law of the Republic of Indonesia Number 20 Year 2003, it requires the central and local governments to allocate a minimum of 20% of the budget each year. Various studies have been conducted previously, most of which are descriptive, based only on correlation without identifying counterfactual conditions and lag causality and have not presented the conditions for the distribution of mandate policy fulfilment. Therefore, this study is conducted to identify lag causality and the fulfilment of mandatory education expenditure mandates of local governments in Indonesia. This study will estimate the impact of local government compulsory education expenditure policies by considering the 20% threshold in Indonesia on the Education Index, Percentage of Good Classrooms, Number of Students and Student Graduation which represent the achievements of the government in providing education services and the achievements of students. The observation period is 2015-2020. The data will be analysed using Discontinuity Regression with the mandated 20% education spending as the cutoff and Spatial Analysis. The results show that there are still many local governments that have not fulfilled the mandate policy with a varied distribution. In addition, discontinuity was found in the comparison graph with the Education Index and Percentage of Good Classrooms, but not in the variables of Number of Teachers, Number of Students and Student Completion. The findings also show that local governments that fulfil the education spending mandate provide higher service impacts than those that do not. The statistical estimation also strengthens the above findings. This study concluded that the impact of this policy is anomalous due to differences in conditions that exist in the regions