Indonesia's 2026 Education Budget Hits Rp750 Trillion: 22 Million Students Get Scholarships

Bisnis | Ekonomi - Posted on 16 August 2025 Reading time 5 minutes

President Prabowo Subianto has delivered the government’s statement on the Draft State Budget (APBN) 2026 and its Financial Note during the Annual Session of the People’s Consultative Assembly/House of Representatives (MPR/DPR RI). This includes the allocation for education.

 

In the 2026 Draft State Budget and Financial Note, education spending is set at Rp757.8 trillion, an increase of 4.63% compared to Rp724.3 trillion in 2024. This figure marks the largest education budget in Indonesia’s history since independence.

 

“We are committed to delivering quality education. Education is the most powerful weapon to create excellent human resources with global competitiveness. The government is determined to fulfill the 20% education allocation, amounting to Rp757.8 trillion in 2026—the largest in our nation’s history,” said Prabowo in his 2026 Budget Address and Financial Note presentation at the Parliament Complex, Friday (August 15, 2025).

 

As mandated by the 1945 Constitution and Law No. 20 of 2003 on the National Education System, the government is required to allocate at least 20% of the state budget to education. This policy has been implemented since 2009.

 

Since then, the government has consistently met the mandatory allocation of 20% for education.

 

Out of the Rp757.8 trillion allocated in 2026, the majority—Rp401.5 trillion—is directed toward supporting students.

 

Based on the details, 22.7 million students will benefit: 21.1 million through the Smart Indonesia Program (PIP), 1.2 million under the Bidikmisi/KIP Kuliah scheme, and 4,000 funded by the LPDP Scholarship Program.

 

Specifically, Rp17.2 trillion is allocated for 1.2 million KIP Kuliah recipients, Rp25 trillion for 4,000 LPDP scholarship holders, Rp15.6 trillion for 21.1 million PIP beneficiaries, and Rp335 trillion for the Free Nutritious Meals (MBG) program, targeting 82.9 million beneficiaries and 30,000 Nutrition Provider Education Units (SPPG).

 

Meanwhile, teachers, lecturers, and education personnel will receive Rp178.7 trillion.

 

This includes Rp19.2 trillion for 754,747 non-civil servant teachers, Rp68.7 trillion for 1.6 million civil servant teachers, Rp3.2 trillion for 80,325 non-civil servant lecturers, and Rp82.9 trillion for salaries of both civil servant and non-civil servant educators.

 

Schools and universities are allocated Rp150.1 trillion.

This covers Rp24.9 trillion for the construction of People’s Schools in 200 new sites plus operational support for another 200, Rp64.3 trillion for School Operational Assistance (BOS) for 53.6 million students, Rp9.4 trillion for Early Childhood Education (PAUD) BOS for 7.7 million children, Rp22.5 trillion for the renovation of 850 madrasahs and 11,686 schools, Rp3 trillion for the development of nine Garuda Superior Schools, and Rp9.7 trillion for State University Operational Assistance (BOPTN) benefiting 201 universities and institutions.

Source: cnbcindonesia.com

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