Sources of Education Finance

Sources of Education Finance M. J. Langeveld (in Neolaka, A. & Neolaka, A. G., 2017, p. 11) states that education is an effort, influence, protection, and assistance given to children so that they are focused on their maturity, or more precisely, helping children to be able to carry out their own life tasks. An education system will be successful if the system is supported by the assistance of professional education personnel and supported by adequate educational facilities and infrastructure. Therefore, educational financial funding is an absolute must to realize quality education. However, educational financial funding does not guarantee the quality of education if it is not managed properly. Therefore, there needs to be good financial management so that educational finance can be managed as effectively as possible to help realize educational goals. According to Law No. 20 of 2003 Article 46 Paragraph 1 (in Komariah, N. 2018, p. 75), it is stated that educational funding is a shared responsibility between the government, local government, and the community. According to Sulistiyorini (in Komariah, N., 2018, p. 75), sources of education finance can be grouped as follows. a) Government Education funding in Indonesia comes from the State Budget (APBN) of 20% and the Regional Budget (APBD). In 2020, the government's education budget in the APBN was allocated at IDR 508.1 trillion or 20% of state spending. This amount was allocated through Central Government Spending (including K/L) of IDR 172.2 trillion, Transfers to Regions and Village Funds of IDR 306.9 trillion, and Government investment in the financing post of IDR 29.0 trillion. The budget in 2020 increased by IDR 15.6 trillion from 2019 which was at IDR 492.5 trillion. For the education budget through Central Government spending in 2020, it is distributed through the Ministry of Education and Culture of Rp36.3, the Ministry of Research, Technology and Higher Education of Rp41.5 trillion, and the Ministry of Religious Affairs of Rp55.0 trillion. The budget target in 2020 is focused on improving the quality of Indonesian education services. Financial resources from the government are provided through the Routine Budget in the Activity List (DIK) which is allocated to all schools for each academic year. The subject and amount of funds for the type of expenditure have been determined by the government in the DIK. Expenditures, accountability, and utilization of routine funds (DIK) must be in accordance with the budget. Apart from DIK, educational financial funding from the government can be in the form of School Operational Assistance (BOS) funds. b) Parents of Students Educational financial funding by parents of students is in the form of committee fees. The amount of related funds is usually determined through a committee meeting. Basically, committee funds can be divided into: 1) Fixed monthly funds or funds that must be paid by parents of students per month. 2) Incidental funds or funds that are required for new students and are generally only paid once during their time as students. 3) Voluntary funds or funds given voluntarily by parents of students. c) Community Educational financial funding from the community is voluntary. Educational financial funds from the community can be in the form of individual funds, group funds, and business entities. Individual funds are given personally to the relevant school. Group funds usually come from foundations. Meanwhile, funds from business entities come from private parties or the government that provide funds as a form of concern for educational activities at a school. d) Funds from Alumni Funds from alumni are educational financial assistance donated by alumni as a form of concern for improving the quality of educational institutions. In addition to assistance in the form of money, assistance from school alumni can be in the form of books, school supplies, or other assistance that can help support learning activities. e) Funds from Activity Participants Funds from activity participants are funding that comes from activities and events organized by the school. Basically, because the funds are obtained from activities and events organized by the school, financial assistance can be obtained from students, education personnel and the community. f) Funds from School Entrepreneurship Activities School entrepreneurship can be developed by involving the school community itself such as students and teachers, and staff or by empowering the surrounding community. Such as cooperatives, canteens, photocopying, annual bazaars, plantations, convenience stores, and so on.