Esther Samboh, Jakarta – The government said it would significantly increase state budget allocations for education as a result of the surge in total budget spending caused by the increase in energy subsidies.

In its proposed revision to the 2011 state budget, the government raised the education budget by almost Rp 14.5 trillion (US$1.6 billion) – excluding Rp 2 trillion allocated for the National Education Development Fund – to a total of more than Rp 262 trillion.

The increase is needed because under the existing law, at least 20 percent of the annual state budget must be allocated for educational purposes other than teachers' salaries and funds for ministry training.

However, the government remains hazy on what programs the additional funds will go to. "We are still working on that. There will be at least two [recipients], probably the National Education Ministry and Religious Affairs Ministry.

But I don't know yet what the programs will be," Deputy Finance Minister Anny Ratnawati said after a plenary session at the House of Representatives in Jakarta on Thursday. "Further discussions will be held by an education committee chaired by the Vice President," she added.

Agus Suprijanto, the Finance Ministry's director general of budgets, referred journalists to the fiscal policy office (BKF) when asked about the additional funds.

Acting BKF chief Bambang Brodjonegoro said the large increase was a consequence of the increase in total budget expenditure as a result of the increase in spending on fuel subsidies.

In the 2011 state budget, the government planned to spend Rp 1,229.6 trillion, of which Rp 246 trillion was allocated to education.

The government will have to increase the total spending to cope with the sharp increase in spending on energy subsidies as a result of the increase in oil prices.

The government sought the House's approval to increase energy subsidies by Rp 57 trillion in the revised state budget, which is being discussed by legislators.

In addition to the subsidy, the government also sought an increase in other spending items, which would result in the state budget increasing by Rp 83.8 trillion to Rp 1,313.4 trillion with 20 percent to go to education programs.

Paramadina University rector Anies Baswedan said that the additional budget should be spent under the coordination of the National Education Ministry. He said that the additional funds should be properly used to improve the quality of the country's education system

"In Indonesia, there are more than 140,000 elementary schools. However, there are only 26,000 junior high schools and 16,000 senior high schools – a huge disparity," Anies said, urging that the additional funds be invested to increase the capacity of schools.

Budget disbursements from the National Education Ministry were low in the first half of this year, reaching only 18.9 percent of the total budget – lower than last year's 29.7 percent in the same period.