Madrasah education financing in Indonesia

The education system in Indonesia has two main sub-systems, one under the management of the Ministry of Education and Culture (MoEC), and madrasah education and religious education under the management of the Ministry of Religious Affairs (MoRA). Out of approximately 233,517 state schools and madrasah, about 82% are state schools and the remaining 18% are madrasah; and out of 49,402,000 students from these institutions, 87% are registered in state schools and other 13% are registered in madrasah. Indonesian laws and regulations require state schools and madrasah to be treated equally. Moreover, madrasah teach the same national curriculum in addition to Islamic religious subjects regulated by MoRA.
Madrasah make a significant contribution to meeting district enrollment standards (APM/APK) and Human Development Index targets (IPM), and they make a significant contribution to meeting district Minimum Service Standards (MSS). Madrasah (MI) take about 11% of primary school enrollments and 22% of junior secondary enrollments (MTs). But of these, the vast majority of madrasah are private. Private madrasah are typically organized by local religious foundations (yayasan) often associated with one of the two largest Muslim organizations—Nahdlatul Ulama (NU) and Muhammadiyah. Private elementary madrasah take 9.57% of enrollments vs. 1.43% state madrasah; private madrasah take 16.5% of junior secondary enrollments vs. 5.5% state1.
Madrasah are known to receive insufficient funding to carry out quality education, and in the case of private madrasah, for the most part are significantly under-funded in comparison with state schools. Many madrasah are established by the community and tend to serve the poorer elements of society. Decentralization has resulted in local government management of state schools, but madrasah are under MoRA management which remains centralized; thus, local governments do not fund madrasah on a regular basis.