Redesigning Indonesia’s People’s School Policy: Structural Economic Lessons for Poverty Alleviation

Authors

DOI:

https://doi.org/10.15294/jllr.v7i3.49947

Keywords:

People’s School Policy, Poverty Alleviation, Structural Economic Reform, Education Economics, Education Policy

Abstract

This article critically examines Indonesia’s People’s School Policy as a socio-economic instrument for poverty alleviation, situating education reform within the broader structural economic context. The study employs a qualitative socio-legal and structural-economic approach, combining historical tracing of institutional design, policy document analysis, and a comparative review of education-linked poverty-alleviation programs in other developing countries. This methodological framework allows for a nuanced understanding of how education policy interacts with labor market segmentation, dependence on the informal sector, and unequal access to productive resources. The research identifies a significant gap in existing scholarship: most studies treat education policy as an isolated intervention, emphasizing access and enrollment while neglecting its integration with structural economic linkages. This narrow focus has limited the transformative potential of Indonesia’s People’s School Policy, which remains constrained by fragmented financing, weak institutional governance, and misalignment with long-term labor market strategies. Findings demonstrate that without structural economic alignment, expanded schooling opportunities fail to translate into sustainable livelihood outcomes. Comparative lessons from other developing contexts highlight the importance of inclusive financing models, community-based governance, and integration with long-term economic restructuring. These elements are crucial to ensuring that education reform contributes directly to poverty alleviation rather than reproducing existing inequalities. The article concludes that poverty alleviation through education requires more than expanding access; it demands a redesign that situates schooling within systemic economic change. By proposing a multidimensional framework that links education reform to structural economic restructuring, the study contributes to policy debates on equitable development. It offers a pathway for Indonesia to strengthen its poverty alleviation agenda.

References

Awang, Mohd, Abdul Ahmad, and Bennedine Allang. “Rural Education: How Successful Low-Income Students Received Socio-Educational Supports from Families, School Teachers and Peers?” International Journal of Academic Research in Progressive Education and Development 10 (February 28, 2020). https://doi.org/10.6007/IJARPED/v10-i1/8988.

Barro, Robert. “Education and Economic Growth.” Annals of Economics and Finance 14 (November 1, 2013): 301–28.

Behaghel, Luc, Clément de Chaisemartin, and Marc Gurgand. “Ready for Boarding? The Effects of a Boarding School for Disadvantaged Students.” American Economic Journal: Applied Economics 9, no. 1 (2017): 140–64. https://doi.org/10.1257/app.20150090.

Blanden, Jo. “Educational Inequality” 60208, no. April (2022). https://doi.org/10.5157/NEPS.

Darling-hammond, Linda, Lisa Flook, Channa Cook-harvey, Brigid Barron, Lisa Flook, Channa Cook-harvey, Brigid Barron, et al. “Implications for Educational Practice of the Science of Learning and Development” 8691 (2019). https://doi.org/10.1080/10888691.2018.1537791.

Devid, Rahmad. “Economic Empowerment of Islamic Boarding Schools in Realizing SustainableDevelopment Goals (SDGs) in the Era of Society 5.0at Lirboyo Islamic Boarding School Kediri.” MONETARIUM: Journal of Economics Business and Management 1 (January 9, 2024): 27–38. https://doi.org/10.71155/m5wf5379.

Faisal, Neliwati, and Muhammad Rifa’i. “Recruitment and Selection Management of Educators and Education Staff to Improve Education Quality.” EDUTEC : Journal of Education And Technology 7 (December 29, 2023). https://doi.org/10.29062/edu.v7i2.685.

Fryer, Roland. “Financial Incentives and Student Achievement: Evidence From Randomized Trials.” The Quarterly Journal of Economics 126 (April 1, 2010): 1755–98. https://doi.org/10.1093/qje/qjr045.

Indonesia., BPS-Statistics. “Profil Kemiskinan Di Indonesia September 2024 [Poverty Profile in Indonesia September 2024].” Badan Pusat Statistik., 2024.

Isra, Saldi, and Pan Faiz. “The Indonesian Constitutional Court: An Overview,” 55–94, 2024. https://doi.org/10.1163/9789004691698_004.

Kadir, Zarina. “The Role of MARA (The Council of Trust for Indigenous Peoples) in Enforcing Affirmative Action in Malaysia.” Academic Journal of Interdisciplinary Studies, October 1, 2013. https://doi.org/10.5901/ajis.2013.v2n11p193.

Kluve, Jochen, Susana Puerto, David Robalino, Jose Romero, Friederike Rother, Jonathan Stöterau, Felix Weidenkaff, and Marc Witte. “Interventions to Improve the Labour Market Outcomes of Youth: A Systematic Review of Training, Entrepreneurship Promotion, Employment Services and Subsidized Employment Interventions.” Campbell Systematic Reviews 13 (December 4, 2017): 1–288. https://doi.org/10.4073/csr.2017.12.

Lucas, Robert E. “ON THE MECHANICS OF ECONOMIC DEVELOPMENT.” World Devziopment Report 22, no. February (1988): 3–42.

Mahapoonyanont, Natcha. “How To Reduce Educational Inequality In Thailand, Lessons From Vietnam, Indonesia and New Zealand,” March 10, 2022, 2907–12.

Maulida, Aldehita Purnasanti, Angkasa Angkasa, Suhadi Suhadi, and Abu Bakar Munir. “Transforming Credit Guarantees in Indonesia: Legal Reform and Digital Innovation at Askrindo.” Journal of Law and Legal Reform 7, no. 1 (2026): 251–92. https://doi.org/10.15294/jllr.v7i1.38585.

Nurlaili, Nurlaili, Andi Warnaen, Romadi Ugik, and Yoyon Haryanto. “Harnessing Islamic Education for Agricultural Empowerment: The Islamic Boarding School Model in Indonesia.” Jurnal Penyuluhan Pertanian 20 (July 30, 2025): 79–94. https://doi.org/10.51852/2wp5we67.

OECD. “OECD Economic Surveys: Thailand 2025.” Paris: OECD Publishing., 2025.

Psacharopoulos, George, and Harry Anthony Patrinos. “Returns to Invesment in Education: A Decennial Review of the Global Literature.” Education Economics 26, no. 5 (September 3, 2018): 445–58. https://doi.org/10.1080/09645292.2018.1484426.

Purcell, Ann. “Buddhist School for Girls in Thailand.” HUFFPOST, 2013.

Purnastuti, Losina, Paul Miller, and Ruhul Salim. “Declining Rates of Return to Education: Evidence for Indonesia.” Bulletin of Indonesian Economic Studies 49 (August 1, 2013). https://doi.org/10.1080/00074918.2013.809842.

Raihani, Raihani. “Report on Multicultural Education in Pesantren.” Compare: A Journal of Comparative Education 42 (July 1, 2012): 1–21. https://doi.org/10.1080/03057925.2012.672255.

Sethi, Raveewan. “THE BENEFITS AND CHALLENGES FOR SCHOOL COUNSELORS AS THAI NATIONALS AND FORMER INTERNATIONAL STUDENTS WORKING IN INTERNATIONAL SCHOOLS IN BANGKOK,” 2023.

Sopacua, Henry. “State Responsibility for Fulfilling the Right to Basic Education Facilities Based on Human Rights.” Pena Justisia: Media Komunikasi Dan Kajian Hukum 24 (June 5, 2025): 6380–96. https://doi.org/10.31941/pj.v24i2.6563.

Suhandi, Muhammad Syukri, Muhammad Arif, Muhammad Rizal, and Muhammad Rahmadana. “Strategy for Economic Development of Islamic Boarding School Through Change Management-Based Approach (Empirical Study in the City of Subulussalam).” International Journal of Environmental Sciences 11 (August 14, 2025): 2025. https://doi.org/10.64252/cmhnz267.

Sukasni, Agnes, and Hady Efendy. “The Problematic of Education System in Indonesia and Reform Agenda.” International Journal of Education 9 (September 27, 2017): 183. https://doi.org/10.5296/ije.v9i3.11705.

Suryahadi, Asep, Ridho Al Izzati, and Daniel Suryadarma. “The Impact of COVID-19 Outbreak on Poverty : An Estimation for Indonesia.” The SMERU Research Institute, 2020.

Syauqy, Achmad. “THE LEGAL ASPECT OF THE NATIONAL EDUCATION BUDGET ALLOCATION.” Yuridika 33 (October 1, 2018): 349. https://doi.org/10.20473/ydk.v33i3.7910.

Taweel, Ibrahim. “The Impact of Higher Education Outcomes on Labor Market Requirements under the Vision of Saudi Arabia 2030.” International Journal of ADVANCED AND APPLIED SCIENCES 7 (June 1, 2020): 110–15. https://doi.org/10.21833/ijaas.2020.06.014.

Tong, Yuying, Yiqing Gan, and Ming Wen. “Do the Institutionally Disadvantaged Students Benefit More from Boarding at School in Their Studying? The Role of Migration and Hukou Status in China.” Research in Social Stratification and Mobility 90 (2024): 100913. https://doi.org/https://doi.org/10.1016/j.rssm.2024.100913.

Translation, Office of Assistant to Deputy Cabinet Secretary for State Documents. “President Prabowo Subianto: Gov’t Aims to Expand People’s School Program.” Office of Assistant to Deputy Cabinet Secretary, 2025.

Ulum, Miftahul, Nurul IR, and Abdul Wadud. “Islamic Boarding School-Based Economic Empowerment in Jember District The One Islamic Boarding School One Product (OPOP) Program.” Jurnal Syntax Admiration 4 (November 9, 2023). https://doi.org/10.46799/jsa.v4i11.783.

UNICEF. “The Role of Boarding Schools for Vulnerable Children in the Europe and Central Asia Region.” Geneva: UNICEF Regional Office for Europe and Central Asia., 2024.

Utari, Indah Sri, Ubaidillah Kamal, Diandra Preludio Ramada, Benny Sumardiana, and Bhanu Prakash Nunna. “Legal Protection for Child Sexual Violence Victims: Victimology Perspectives, Challenges, and Policy Solutions in Asia.” Jurnal Suara Hukum 8, no. 1 (2026). https://doi.org/10.26740/jsh.v8n1.p40-77.

Utari, Indah Sri, Diandra Preludio Ramada, Salman Alfarisi, and Nizamuddin Alias. “A Criminological Perspective on Corruption as a Catalyst of Economic Breakdown: Socio-Legal Challenges in Indonesian Environmental Governance.” Jambe Law Journal 9, no. 1 (2026): 205–47. https://doi.org/10.22437/jmj4ac47.

Utari, Indah Sri, Diandra Preludio Ramada, Ridwan Arifin, and Robert Brian Smith. “Legal Protection for Children as Victims of Economic Exploitation: Problems and Challenges in Three Major ASEAN Countries (Indonesia, Vietnam and Philippines).” Lex Scientia Law Review 7, no. 2 (2023). https://doi.org/10.15294/lesrev.v7i2.68301.

Walikrom, Achmad. “History of the Growth and Development of Education in the Early Period of Independence of the Republic of Indonesia.” MANDALIKA : Journal of Social Science 1 (February 5, 2023): 12–16. https://doi.org/10.56566/mandalika.v1i1.55.

Yusuf, Ayus, Didin Rosidin, and Asmiyati Khusnul Maryam. “Developing Sustainable Islamic Boarding Schools Economic Model: A Case Study from Indonesia.” Journal of Economics, Finance And Management Studies 07 (August 31, 2024). https://doi.org/10.47191/jefms/v7-i8-61.

Zhong, Zhiyong, Yang Feng, and Yongqi Xu. “The Impact of Boarding School on Student Development in Primary and Secondary Schools: A Meta-Analysis.” Frontiers in Psychology 15 (March 28, 2024): 1359626. https://doi.org/10.3389/fpsyg.2024.1359626.

Downloads

Published

13-07-2026

Article ID

49947

Issue

Section

Articles

How to Cite

Triaswati, Ninasapti, Aprila Niravita, and Noorimah Misnan. 2026. “Redesigning Indonesia’s People’s School Policy: Structural Economic Lessons for Poverty Alleviation”. Journal of Law and Legal Reform 7 (3): 1219-54. https://doi.org/10.15294/jllr.v7i3.49947.