Education Spending: Indonesia

Analysis# Indonesia Education Spending Indonesia allocated 1.275% of its GDP to education in 2023, representing a modest recovery from the previous year's 0.864% low point. The country's education investment remains far below its all-time peak of 3.584% in 2015, when spending reached nearly three times current levels. Since 1972, overall education spending has declined 54.3%, reflecting a long-term downward shift in budgetary priorities. A dramatic collapse occurred between 2015 and 2016, when spending plummeted from 3.584% to just 1.21%—a drop of nearly two-thirds in a single year. Following this sharp decline, education spending stabilized around 1% of GDP for several years before declining further to 0.864% in 2022. The recent uptick to 1.275% suggests a potential recovery trajectory, though sustained growth would be necessary to reverse decades of declining investment.