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 Education, Culture, Research, and Technology (MoECRT, or Kemdikbudristek) and the Ministry of Religious Affairs (MoRA, or Kemenag). MoECRT is responsible for non-religious pre-primary programmes, while MoRA oversees Islamic pre-primary programmes.
Tuition-free status
Free pre-primary education is not 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. The BOP PAUD grants allocate higher per-student amounts to institutions serving disadvantaged, rural, or underprivileged communities.
3. Education resources to students and families
No information was found on current Ministry of Education-funded initiatives to support families with the associated costs of pre-primary education. In late 2025, the Ministry of Education announced plans to expand the Smart Indonesia Programme (Program Indonesia Pintar, PIP) to include pre-primary education. 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.
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 participation in PAUD (early childhood education), where available, to receive benefits.
