Education Sector Performance in the Frontier, Outermost and Least Developed (3T) and Non-3T Regions: The Role of the Specific Allocation Fund (DAK) in the Education Sector

Authors

  • Devita Arifyani Universitas Indonesia
  • Khoirunurrofik Khoirunurrofik Institute for Economic And Social Research, Faculty of Economics and Business, University of Indonesia indonesia

DOI:

https://doi.org/10.31685/kpxsfs85

Keywords:

Intergovernmental transfers, Special allocation fund, Educational performance, Gross enrollment ratio, Underdeveloped areas

Abstract

The transfer of sector-specific funds is expected to have a maximum output impact as a result of competition between regions for such funding, thus encouraging the convergence of the quality and quantity of education in Indonesia. This study aims to estimate the relationship between DAK education funds and the gross enrolment ratio (GER) in primary and junior high schools and the difference in the influence of such funds for education in 3T and non-3T regions in 2015-2017. The main findings show that DAK can increase the GER at primary and junior high school levels, with its impact in 3T regions being more elastic than in non-3T regions. This is probably due to the lack of facilities and infrastructure in the former. Therefore, the transfer of DAK can accelerate the additional availability of education facilities and infrastructure, thus increasing the GER. The results imply that the government should continue to improve and expand the scheme in order to improve the achievement of educational performance through GER and to improve governance DAK policies, both at the central government and local government levels.

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Published

2023-10-26

Issue

Vol. 5 No. 3 (2021)

Section

Articles

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