Arnoldus Kristianus, Jakarta – The government has allocated Rp 5 trillion ($278.26 million) for a pilot program offering free education from elementary to senior high school in 2027, as it seeks to expand access to education and strengthen support for disadvantaged regions.

"The main target is a Rp 5 trillion pilot program for free education at the elementary, junior high and senior high school levels," House of Representatives Budget Committee Chairman Said Abdullah told reporters at the parliamentary complex in Jakarta on Tuesday.

Said told reporters the 2027 state budget (APBN) reflects the government's fiscal policy priorities in pursuing public welfare, including through subsidies, social protection and programs supporting education and health.

The budget will also prioritize Indonesia's frontier, outermost and underdeveloped regions, known as 3T, through targeted initiatives such as accelerated regional infrastructure development and free schooling.

"As a commitment reflected in the state's budget policy, the 2027 state budget provides affirmative support for 3T regions through various programs, including accelerated infrastructure development and free schools," he said.

He added that government development programs must deliver tangible benefits to the public. Fiscal policy in 2027 will remain expansionary, with a collaborative, targeted and measurable approach, while keeping the budget deficit at 2.4% of gross domestic product (GDP).

Under the proposed budget, state revenue is projected to reach Rp 3,435.1 trillion, while expenditure is set at Rp 4,106.3 trillion. The resulting deficit of Rp 671.2 trillion will be financed through what Said described as innovative and measured financing.

"Programs funded by the state budget must be measurable, both through science-based assessments and through direct feedback from the public as beneficiaries," he said.

Finance Minister Suahasil Nazara said the government had allocated Rp 824 trillion for education spending in 2027, describing it as an investment in the development of future generations.

The allocation will support several initiatives, including the Program Indonesia Pintar education assistance scheme, the Indonesia Smart College Card (KIP Kuliah), school and madrasah renovations, the Sekolah Rakyat and Sekolah Unggul Garuda programs, as well as scholarships and talent development through the Indonesia Endowment Fund for Education (LPDP).

Source: https://jakartaglobe.id/business/indonesia-sets-278-million-for-free-school-pilot-in-202