In the international context, the quality of public primary education in Indonesia is sub-standard. The assumption of officials at all levels of government is that a significant increase in funding will be required to improve education performance. The analysis in this paper shows that money does indeed matter for the attainment of primary…

Studies on Indonesia and the Philippines in this special issue examine how local financial control affects costs of providing primary schooling. In both countries, schools with greater financial decentralization operated more efficiently. These results have important implications for U.S. schools, where decentralization reforms in Kentucky and…