Economics · 2026-10-25 · Afternoon briefing
Indonesia weighs free education plan with 10% budget price tag
A sweeping proposal to make all public education in Indonesia free, from primary school through to the university level, is under consideration in Jakarta. The plan, if adopted, would represent a fundamental expansion of the state's role and a dramatic shift in social policy for the nation.
The initiative's fiscal implications are substantial. The cost is estimated to be equivalent to close to 10% of Indonesia's total government expenditure. Funding such a large-scale policy, which covers the entire public education system from primary school to university, would require a major reallocation of the national budget, placing significant pressure on public finances and forcing difficult trade-offs against other government spending priorities.
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- Indonesia plans free public education from kindergarten
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- Indonesia market falls 11%, most since 1998 as MSCI weighs index deletion
- Indonesian stocks dive 11% as MSCI weighs market reclassification
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