Indonesia is rich in natural resources, but that does not automatically translate into strong teacher welfare or high-quality education.
This gap is common in resource-rich developing countries. Below is a clear, structured explanation of why Indonesia’s teacher welfare and education outcomes lag, broken into root causes.
1. Natural resource wealth ≠ education investment
Indonesia’s economy relies heavily on extractive sectors (oil, gas, coal, minerals, palm oil). These industries generate revenue, but:
a. Resource revenues fluctuate
b. “Resource curse” dynamics
Countries rich in natural resources often:
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invest less in human capital (education, health)
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depend on resource exports instead of building high-skilled industries
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experience corruption and rent-seeking in extraction sectors
This creates a structural bias away from education spending.
2. Decentralization created massive disparities
Since 2001, Indonesia decentralized education funding to districts.
Effects:
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Rich regions (e.g., Jakarta, Bali, some mining regions) can pay teachers well.
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Poor regions (NTT, Papua, many rural districts) struggle with salaries, allowances, and school infrastructure.
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Teacher hiring and promotion became fragmented; quality control is uneven.
This results in extreme inequality—Indonesia’s education quality depends heavily on where a child lives.
3. Huge number of teachers + teacher status problem
Problems:
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For decades, many teachers were honorer (contract teachers) paid far below minimum wage.
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Certification (tunjangan profesi) improved welfare for civil servants, not for contract teachers.
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PPPK reforms are trying to fix this, but the cost is massive.
4. Budget absorbed by salaries, not quality
~70–80% of that budget goes to salaries, not improvements.
This leaves little for:
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teacher training
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facilities
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technology
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curriculum development
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school maintenance
Many OECD and East Asian countries (Japan, Korea, China, Vietnam) spend proportionally more on quality, not just personnel.
5. Weak teacher training & qualification systems
Education systems with strong outcomes (Finland, Singapore, South Korea) have:
Indonesia faces the opposite:
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Many teacher education programs have low admission standards.
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Teaching is sometimes a “last choice” profession.
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Limited mentoring and professional development for teachers already in the field.
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Certification allowances were granted without guaranteed skill improvement.
This affects both welfare and learning outcomes.
6. Political priorities favor infrastructure over education
Governments often prioritize visible, fast-return investments:
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roads
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airports
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tollways
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mining
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energy
Education yields long-term results (10–20 years), so it often receives less political attention even though spending is high.
7. Corruption and inefficiency in education governance
Issues include:
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Leakages in education budgets
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Inflated procurement (books, school construction)
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Allowance disbursement delays
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Local political interference in teacher hiring
These reduce the impact of the money that is spent.
8. Socioeconomic inequality reduces education outcomes
Regions with:
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high poverty
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remote geography
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weak infrastructure
struggle to attract and retain high-quality teachers.
Urban–rural and west–east disparities are still extreme.
9. Curriculum instability and reform fatigue
Indonesia has had:
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Kurikulum 1994
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KBK
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KTSP
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Kurikulum 2013
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Merdeka Belajar
Frequent changes without adequate teacher preparation lead to:
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confusion
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inconsistent teaching
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shallow implementation
10. Natural resource revenue is not fully captured
Even though Indonesia is resource rich:
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Coal, nickel, and palm oil sectors still have loopholes and untaxed profits.
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Illegal mining/logging reduces state revenue.
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Local governments often lack capacity to manage extraction revenues efficiently.
So the country’s “wealth” does not fully become public wealth.
The Short Answer
Indonesia’s teacher welfare and education quality remain low because:
Natural resource wealth alone does not guarantee high investment in human resources. Structural issues—decentralization, massive teacher workforce, governance problems, weak training systems, inequality, and political priorities—prevent resource wealth from becoming educational strength.

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