Financing for equity in pre-primary education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Key financing indicators (UIS Data)
The official entrance age to pre-primary education is 5. Free pre-primary education is not granted in legal frameworks. Compulsory pre-primary education is not granted in legal frameworks. The net enrolment rate for pre-primary for both sexes is 49.89.
Governance
In Indonesia, pre-primary education services are primarily provided by private institutions. Almost all (99 per cent in 2023) registered early childhood education and pre-primary institutions are privately managed. These institutions are generally community-established and funded through a combination of government subsidies and tuition fees charged.
Pre-primary education financing and policy are overseen by both the Ministry of Primary and Secondary Education (MPSE, or Kemendikdasmen) and the Ministry of Religious Affairs (MoRA, or Kemenag). MPSE is responsible for non-religious pre-primary programmes, while MoRA oversees Islamic pre-primary programmes.
Tuition-free status
Free pre-primary education is not currently granted in legal frameworks.
1. Education resources to subnational governments
The General Allocation Fund (Dana Alokasi Umum) (DAU) is the primary mechanism for transferring funds to sub-national governments in Indonesia, constituting the largest single source of revenue for districts. The legal and institutional foundations for fiscal decentralisation were established between 1999 and 2001 with the passage of Law No. 22 of 1999 on Regional Government and Law No. 25 of 1999 on Sharing Finances between Central and Regional Governments. The DAU was established by Law 33/2004 on Fiscal Balance between Central and Regional Governments as the mechanism to provide subnational governments with resources to carry out newly devolved responsibilities. The DAU has undergone significant reforms with the passage of Law 1/2022.
Under Law 1/2022, the DAU aims to equalise fiscal capacities across regions by allocating funds based on each subnational entity’s estimated “per client” fiscal needs, rather than distributing a fixed amount per district as was done previously. The DAU is separated into general funds, which may be used at each government’s discretion, including to support pre-primary education.
2. Education resources to institutions
The government provides funds directly to both public and eligible private early childhood institutions through Early Childhood Education Operational Assistance (Bantuan Operasional Penyelenggaraan Pendidikan Anak Usia Dini, BOP PAUD) grants. BOP PAUD grants are transferred directly to schools and are intended to support operational costs, learning materials, facilities, and teacher support. BOP PAUD provides prefential support to education units in special regions (daerah khusus) that have a limited number of students by continuing to channel BOP PAUD funding. In addition, there is also BOP PAUD Afirmasi for education units in special regions (daerah khusus).
3. Education resources to students and families
No information was found on current Ministry of Primary and Secondary Education-funded initiatives to support families with the associated costs of pre-primary education.
In late 2025, the Ministry of Primary and Secondary Education announced plans to expand the Smart Indonesia Programme (Program Indonesia Pintar, PIP) to include pre-primary education, with implementation scheduled to begin in 2026. The Smart Indonesia Programme provides cash assistance and educational support to students (ages 6-21) from low-income families to reduce financial barriers to education. This expansion is intended to support 13 years of compulsory education (Wajib Belajar 13 Tahun) and to improve access to pre-primary education. As with PIP at other education levels, PIP operates through conditional cash transfers that cover tuition fees, books, uniforms, and transportation costs. Continued support is contingent on maintaining school enrolment, thereby encouraging retention, while schools are responsible for identifying eligible students and verifying their eligibility.
4. Social policies and family support programmes
The Programme Keluarga Harapan (PKH) is a conditional cash transfer programme managed by the Ministry of Social Affairs that aims to improve both health and education for economically disadvantaged families. Families with children aged 0-6 must comply with health and education requirements, such as regular early childhood check-ups and, where available, participation in PAUD (early childhood education), to receive benefits.
This profile was reviewed by the Indonesian National Commission for UNESCO.
