August 15, 2025 | 11:22 pm
TEMPO.CO, Jakarta - Indonesia's President Prabowo Subianto will allocate Rp178.7 trillion for teacher and lecturer salaries and competency development when presenting the 2026 state revenue and expenditure budget (APBN) at the Annual Session of the People’s Consultative Assembly at the parliament complex in Senayan, Jakarta, on August 15, 2025.
This Rp178.7 trillion is part of a total 2026 budget of Rp757.8 trillion, or roughly 20 percent. Prabowo stated that this is the largest education allocation in Indonesia’s history, but emphasized that the funds must be properly targeted.
He promised to improve teacher quality and strengthen vocational education to meet workforce needs.
"The allocation for teacher salaries, competency enhancement, and strengthening of teachers and lecturers is set at Rp178.7 trillion," said Prabowo.
The government will also provide various scholarships. The Smart Indonesia Program has quotas for 21.1 million students, while the Smart Indonesia Card for College covers 1.2 million students. Funding for the improvement of school and campus facilities is set at Rp150.1 trillion.
Additionally, the Education Fund Management Agency (LPDP) will provide outstanding scholarships for 4,000 students in 2026.
Prabowo’s announcement comes after Finance Minister Sri Mulyani faced criticism for remarks about teacher salaries. She had said low salaries for teachers and lecturers pose challenges to state finances.
"On social media, many say being a lecturer or teacher is not appreciated because the salary is low. This is one of the challenges for state finances," Sri Mulyani said during the Science, Technology, and Industry Convention Indonesia broadcast by Bandung Institute of Technology on YouTube on August 7, 2025.
She also questioned whether teacher and lecturer salaries should come entirely from the state or involve community contributions. Her comments drew public backlash because the state is responsible for paying civil servant teachers.
Since 2009, the education budget has consistently reached 20 percent of the state budget, according to the Ministry of Finance.
In a December 4, 2024 Instagram post, Sri Mulyani detailed the 2025 education allocation of Rp724.3 trillion. Forty-eight percent is for transfers to regions (TKD), 36 percent for ministries and institutions, 11 percent for financing, and 5 percent for the State General Treasurer (BUN).
This means Rp347.09 trillion goes to TKD, Rp 262.28 trillion to ministries and institutions, Rp80 trillion through financing, and Rp 34.88 trillion to BUN.
She added that the total budget for civil servant and non-civil servant teachers’ welfare in 2025 increased by Rp16.7 trillion to Rp81.6 trillion. Another Rp17.15 trillion is allocated for the renovation and improvement of 10,440 state and private schools.
The government also targets professional teacher allowances for 477,700 non-civil servant teachers, certification for 666,900 teachers, 22,000 school constructions or renovations, LPDP scholarships for 10,500 students, and the Free Nutritious Meal (MBG) program.
According to Antara, as of June 2025, Rp16.71 trillion in subsidies for regional civil servant teachers has been distributed to 1.44 million teachers directly, under a new scheme introduced in March 2025. Previously, funds were transferred through the Regional General Cash Account.
The government also plans performance allowances (for 31,000 civil servant lecturers, totaling Rp2.66 trillion in 2025, in accordance with Presidential Regulation Number 19 of 2025 concerning Performance Allowances for Employees in the Ministry of Higher Education, Science, and Technology
Ilona Estherina, Nabiila Azzahra, Anastasya Lavenia Yudi, and Intan Wahyuningtyas contributed to this article.
Editor’s Choice: Sri Mulyani on Low Teachers' Salaries: "Should the State Fund Everything?"
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