Challenges and Effective Strategies In Managing Education Financing
Keywords:
Education Financing, Budget Management, Performance Based BudgetingAbstract
The management of educational financing is a crucial aspect in ensuring the achievement of quality, equitable, and just national education goals. However, its implementation in Indonesia continues to face several significant challenges, such as limited government budgets, disparities in fund allocation between regions, and low levels of transparency and accountability in financial management. This study employs a qualitative approach using a literature review method to thoroughly examine these challenges and formulate effective strategies to overcome them. The findings indicate that several strategic approaches can be implemented, including the application of performance-based budgeting, diversification of funding sources through partnerships with the private sector and international donors (CSR, scholarships, and international cooperation), development of productive business units within educational institutions, and the digitalization of financial systems through e-budgeting and e-reporting. Furthermore, legal foundations such as Law No. 20 of 2003 on the National Education System, along with supporting policies like BOS (School Operational Assistance), PIP (Smart Indonesia Program), and DAK (Special Allocation Funds) for education, serve as vital pillars to ensure sustainable educational financing. It is expected that the results of this study will contribute to policy formulation and the implementation of more effective and sustainable education financing management practices in Indonesia.
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