This piece reflects on why large-scale investment in Indonesia’s teacher reform has failed to produce significant learning gains, and what systemic issues are being overlooked.
As a country that stretches over the same distance as London to New York and consists of more than 17,000 islands with more than 1300 different ethnic groups, ensuring that every Indonesian citizen gets a proper education is a difficult job. Building educational facilities on remote islands or highlands requires greater infrastructure due to the difficulty of access and limited resources. Getting all ethnic and socio-economic groups to go to the same school, or at least use the same education system, is perhaps the biggest challenge.
Despite these challenges, in the last few decades, Indonesia has succeeded in making significant progress. From 1972 to 2015 the gross enrolment rate for elementary schools increased from 85 percent to 105 percent, 18 percent to 85 percent for secondary schools, and 2 percent to 24 percent for tertiary education. The literacy rate has also increased sharply, from 81% in 1990 to 98.2% in 2021.
But here’s the puzzle: these students do not necessarily learn at school.
The 2018 PISA Literacy Skills results showed that 70% of Indonesian students could not reach level 2 in the PISA framework—the skills to determine the main idea of a text, find connections between various information, and draw a simple conclusion from reading. A 2014 RISE Program research and a 2018 World Bank study show the same phenomenon: students do not learn enough in elementary school that they cannot solve basic mathematical problems.
Even more concerning, 20 percent of the wealthiest students in Indonesia were outperformed by 20 percent of the poorest students in Vietnam, a neighboring country with a similar literacy rate (97.55%) and primary school enrollment rate (108.71%). This underachievement translates to a real-world disadvantage for Indonesian school graduates. The majority of Indonesian workers currently do not have enough skills to get middle-class jobs, and if they do not improve their quality, Indonesia will not achieve its target of becoming a high-income country by 2045, as noted by Wihardja and Cunningham (2021).
The Teacher Quality Crisis
The poor performance of Indonesian students shows the need for deeper attention to the teaching and learning process in the classroom, where teacher quality is one of the biggest factors (Sirait, 2016; Hanushek & Rivkin 2010; Aaronson et al., 2007; Rockoff 2004; Sanders & Rivers 1996). A 2016 World Bank study shows that around 65% out of 2.7 million teachers in Indonesia do not meet the standards set for professional educators. Five years later, in 2021, the condition has not changed much—a report from the Ministry of Education shows that the average score of Indonesia’s teacher competency test was 50.64 points (on a 100-point scale).
It’s important to acknowledge that the Indonesian government has recognized this urgency and has tried to address the problem. In 2005, the government passed the Teacher Law. This special law aims to improve the quality of teachers in Indonesia by regulating minimum academic qualification requirements, job descriptions, minimum salaries and allowances, and skills development.
One implementation of this law is the teacher certification program which started in 2007 and succeeded in certifying all active teachers in 2015. Since 2009 the government has also carried out the mandate of the Constitution to allocate 20% of the state budget for education, the majority of which is for teacher salaries.
But despite these massive investments, why haven’t we seen significant improvements in teacher quality?
Analysis Framework
In 2013, the World Bank under The Systems Approach for Better Education Results (SABER) initiative published a framework to comprehensively analyze teacher policies worldwide. This framework was developed by many educational scientists, economists, and development consultants based on global research and has been used in more than 100 countries to assess teaching workforce policies against best practices.
The SABER framework consists of 10 main aspects of teacher policy: 1) Requirements for entering and remaining in the teaching profession, 2) Initial teacher preparation, 3) Recruitment and job placement, 4) Teacher workload and autonomy, 5) Professional development, 6) Compensation, 7) Pension rules and benefits, 8) Monitoring and evaluating teacher quality, 9) Teacher representation and voice, and 10) School leadership.
Of these, SABER identifies 8 specific “Teacher Policy Goals” as most critical for improving student performance. In my analysis, I focused specifically on the first three of these goals: 1) Setting clear expectations for teachers; 2) Attracting the best people to teaching; and 3) Preparing teachers with useful training. These three areas align with the focus of Indonesia’s recent government reforms through the Teacher Law of 2005 and its complementing regulations.
Policy Analysis
1. Expectations for Teachers
The first part of the 8 Policy Goals framework examines whether there are clear expectations for teacher and student performance in the country. This aspect is divided into two components: whether expectations about what students must understand are clear enough, and whether there are clear guidelines about how teachers should use their working time.
Since 2022, Indonesia has gradually implemented a new curriculum, the Merdeka Curriculum, and in 2024 it was officially designated as the national curriculum. Apart from overhauling learning content, this new curriculum gives teachers and schools more freedom in developing learning, based on the assumption that schools are the best place to organize learning opportunities that can accommodate different social contexts (Randall et al., 2022).
However, many teachers still complain that they have difficulties in understanding and implementing the learning targets set out in these documents (Putra, 2024; Basri and Rahmi, 2023; Haeri, 2023; Windayanti et al., 2023). The greater freedom given to teachers and schools makes it difficult for them to determine content and learning standards. This is exacerbated by the lack of training and outreach on how to implement this new curriculum.
This lack of clarity in the instructions that teachers can use as guidance might hurt their students’ achievement, as shown by research in both developed countries (Borman et al., 2007) and developing countries (He, Linden, and McLeod, 2007).
Additionally, the new curriculum does not provide clear guidelines on how teachers should spend their work time. Research in countries with advanced education systems such as Singapore, Canada, Finland, South Korea, and Japan shows that teachers there spend more time on activities that can improve their teaching abilities, such as analyzing teaching methods, sharing strategies, and collaborating with other teachers, rather than direct classroom instruction (Levin, 2008; Darling-Hammond, 2010; Darling-Hammond & Rothman, 2011). For example, Japan allocates 40% of teachers’ working hours to these types of professional development activities.
2. Attracting the Best Talents
According to the SABER framework, there are four empirically proven ways to make the teaching profession attractive: competitive recruitment process, competitive salaries, attractive working conditions, and the availability of career advancement opportunities.
a. Competitive Recruitment Process
One of the things regulated in the Teacher Law is teacher qualifications and competencies, stating that the minimum requirement to become a teacher is to have a four-year degree and an educator certificate. This explicit requirement is important considering that in the past (1970s) the government recruited many senior secondary school graduates who specialized in pedagogy directly as teachers to meet enormous needs during that time.
Indonesia has two teacher recruitment routes: the official route and the unofficial route. The official route takes the form of a written test which, before 2013, was organized by regional governments. This system was criticized for fostering bribery and nepotism, so since 2013 the central government through the Ministry of Administrative and Bureaucratic Reform took over and implemented computer-assisted tests.
Even though this centralized system is claimed to be effective in reducing corruption (“Kemen-PANRB”, 2017), it does not guarantee the quality of teachers recruited because the administrative requirements and basic tests used are the same as tests for other types of civil servants, such as prison guards (Huang et al., 2020). Applicants who get the highest score on this basic test then undergo pedagogical and subject area tests, but there are no interview or teaching practice tests to assess actual classroom skills.
A selection process based solely on administrative requirements and test scores is not ideal. Research indicates that test scores are weak predictors of teacher performance (Bardach & Klassen, 2020; Goldhaber et al., 2017; D’Agostino & Powers, 2009). However, the competitive nature of the process does attract candidates. Studies in countries with high-performing education systems such as Finland, South Korea, and Singapore show that talented individuals are more attracted to teaching when the selection process or preparation program is highly competitive (Lavonen, 2010; Darling-Hammond, 2010; Cantrell et al., 2008; Decker et al., 2004).
The unofficial recruitment route presents even more problems. Schools often resort to informal hiring to meet immediate teaching needs, recruiting teachers with minimal contracts or sometimes no employment contracts at all (“Indonesia”, 2018). These informally recruited teachers receive very small salaries, so the selection process often does not prioritize pedagogical skills but accepts anyone willing to take the low pay (Iswara, 2020; “Importance”, 2021). Many of these teachers are only high school graduates (Samir, 2015).
This situation worsened when the government prioritized these informally recruited teachers for civil servant appointments before opening vacancies to the public, issuing Regulation Number 48 of 2005 (later amended by Regulation Number 43 of 2007) as a complement to the 2005 Teacher Law. This repeated the same mistake from the 1970s, undermining competitive recruitment and failing to attract the best talent to the teaching profession.
b. Competitive Salary
Since 2009, Indonesia’s national education budget has increased to 20% (approximately US$19 billion) of the total state budget from 10.5% in 2007 and 18.5% in 2008. Most of these funds (60%) are allocated for teacher salaries.
One key implementation of the 2005 Teacher Law is the teacher certification program, which comes with a two-fold increase in salaries. Teachers who meet the minimum education requirements (four-year degree) and have a high civil servant rank can automatically participate in the certification process, which consists of collecting a work portfolio and attending a two-week training.
This significant salary increase succeeded in increasing teacher job satisfaction and financial conditions but did not affect student test scores, teacher test scores, teacher attendance, or the likelihood of teachers pursuing higher education (de Ree et al., 2017). However, the salary increase—which moved teacher salaries from the 50th percentile to the 90th percentile of tertiary education graduate salary distribution—successfully increased enrollment in teacher training programs five-fold during 2005-2010 (Negara & Benveniste, 2014). This suggests it might eventually attract better talent, as Dal Bo et al. (2013) found that high salaries in public service tend to attract applicants with higher IQs and more experience.
c. Attractive Working Conditions
Various studies in both advanced and developing countries show that workplace conditions influence teachers’ interest in teaching. For example, the quality of school facilities influences teacher attendance and turnover rates (Chaudury et al., 2005; McGowen, 2009), and the student-teacher ratio influences teacher job satisfaction (Urquiola, 2006; Perrachione et al., 2008; Hojo, 2021).
In Indonesia, regulations regarding school facility standards have been updated several times, most recently in 2023 through Minister of Education Regulation No. 22. This regulation details the physical facilities required in every school at all education levels. Despite improvements in standards, 2021 Education Statistics data from the Ministry of Education shows that only around 50% of classrooms in Indonesian schools are in good condition.
Interestingly, the student-teacher ratio at all education levels is 15, which meets the standard ratio in countries with advanced education systems, where the maximum is typically 30 (UNESCO, 2012).
d. Career Advancement Opportunities
In countries with advanced education systems such as Finland, Japan, and Singapore, teachers have opportunities for both vertical and horizontal career progression (Darling-Hammond, 2017; Pramana & Alifia, 2021). Vertical progression typically involves moving into school management or leadership positions, while horizontal progression allows teachers to become specialized experts with higher status and salaries while remaining focused on teaching.
A UNESCO study (Tournier et al., 2019) shows that teaching profession reforms in developing countries like Bolivia, Thailand, Colombia, and South Africa that implement horizontal career progression make teachers feel more valued and the profession more attractive.
In Indonesia, according to Minister of State Apparatus Empowerment Regulation No. 16 of 2009, teachers have four career levels: First Teacher, Junior Teacher, Middle Teacher, and Primary Teacher. These career stages only affect salaries, not authority or responsibilities—teachers continue to teach as usual even after promotion. To advance, teachers need to collect credit scores from education, training, or continuous professional development activities.
In addition to this horizontal path, there’s a vertical path to become a school principal or supervisor. However, both career development tracks are primarily based on length of service rather than performance (Pramana & Alifia, 2021), failing to incentivize excellence.
3. Training and Experience
As mentioned previously, since 2005 Indonesia has required a minimum four-year degree for prospective teachers, similar to requirements in educationally advanced countries (World Bank, 2012). However, various teacher competency test results show that the quality of teacher education in Indonesia remains low, likely due to poor curriculum quality, inadequate teacher trainers, and lack of teaching practice opportunities (Novita, 2022).
In 2013, the Indonesian Government launched the Professional Teacher Training Program (PPG), a two-semester program to compensate for the low quality of both new and experienced teachers. All teachers are required to complete this training in addition to their four-year degree. However, this program has also proven ineffective due to the low quality of participants, lack of coordination between organizers and practice schools, and poorly developed curriculum (HEAD Foundation, 2019).
Policy Recommendations
Short-Term Policy Recommendations
a. Revise and Strengthen the Teacher Recruitment Process
To attract the best talent to the teaching profession, Indonesia needs a merit-based and highly competitive selection system. This requires completely prohibiting recruitment through informal channels and creating a system to make formal recruitment easier and more profitable for schools. Information technology can play an important role in streamlining the centralized recruitment system.
The government should also cancel regulations that prioritize informally recruited teachers for civil service positions. These teachers should undergo the same rigorous selection process as other candidates. Additionally, the teacher selection process should include interviews and teaching practice tests to better identify candidates with strong pedagogical skills.
b. Reform Compensation, Incentive, and Career Ladder Structures
While the government’s efforts to improve teacher welfare through doubled salaries are commendable, this spending is not productive without performance incentives. The current system attracts people to the profession but doesn’t motivate existing teachers to improve their teaching quality. Career advancement, certification, and salary increases should prioritize performance over seniority.
c. Enhance Teacher Performance Monitoring and Feedback
To objectively evaluate teacher performance, Indonesia needs a robust monitoring and feedback system. School principals, who are typically experienced teachers, can play a crucial role in regularly assessing teacher performance and providing guidance on teaching issues, including implementation of the new curriculum. The role of school supervisors should also be strengthened to effectively guide and oversee principal performance.
Schools could also create positions for senior teachers to become expert teachers or mentors who can help monitor and improve the abilities of other teachers, simultaneously addressing the limited career progression options.
Long-Term Policy Recommendation
One root cause of poor teacher quality in Indonesia is the inadequate quality of teacher education. A sensible long-term solution is to reform teacher education comprehensively, following Vietnam’s example. Vietnam overhauled its teacher education program, changed the curriculum, and raised teaching standards with World Bank funding (Le et al., 2022), resulting in student performance that now surpasses Indonesia’s. Given Indonesia’s established cooperation with the World Bank on many development projects, this approach appears feasible.
Conclusion
Indonesia has made remarkable progress in expanding education access, but quality remains a serious concern. The government’s substantial 20% budget allocation for education—with most going to teacher salaries—has not translated into improved learning outcomes. By applying evidence-based reforms to teacher recruitment, compensation structures, performance monitoring, and teacher education, Indonesia can transform its teaching workforce and better prepare students for middle-class employment, ultimately supporting the country’s ambition to become a high-income nation by 2045.
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