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Education Team

The Indonesian education sector offers significant opportunities given the major pool of customers, many of which are leaving for education overseas due to a lack of quality supply. With nearly 43% of the country’s population being below 25 years old and underpinned by its growing middle-class consumers which are expected to double to 140 million by 2030, the demand for high-quality educational services in Southeast Asia’s largest economy will continue to grow in-line with the middle-class’ aspirations for their children’s future.

Education will play a vital role in increasing or reducing Indonesia’s chance to evolve from its emerging market status. An educated and skilled workforce has been shown to be the most vital component for sustainable economic growth. Conversely, a large youthful population devoid of professional aspirations can be a social and political tinderbox.

Under President Joko Widodo, the Indonesian government has pledged to put a greater emphasis on the education sector. To maximise the potential of its new generation, the Indonesian government needs to drastically improve the quality and access to formal and non-formal education.

The role of the private sector is crucial in this respect because the Indonesian government, despite the locked down portion of 20% of the state budget towards education, does not have the capacity to answer all of Indonesia’s educational needs. According to a report by the BPS (2015), around 62% and 96% of senior secondary schools and kindergartens in Indonesia are owned by private institutions. Public schools outnumber private schools only in primary and junior secondary school categories which is mainly due to the 9-year compulsory education programme that the government is obliged to provide as mandated by Law No.  20/2003 on National Education System.