Policy Research
This paper examines the feasibility of an income-contingent loan (ICL) system to finance higher education in Indonesia. Using graduates’ income data from the 2015 National Labor Force Survey (Sakernas), we model the life-cycle income distribution of university graduates using unconditional quantile regression.
The baseline data collection (the study) will provide a foundation for the project´s key quantitative and qualitative indicators within the WfW project’s M&E Plan, and create the basis to measure and report the project’s performance and any changes for each indicator.
After successfully improving access to education in the early 1990s, with virtually universal primary school completion and similarly positive trends in senior secondary level, Indonesia began investing to improve learning outcomes since 2005. For almost a decade, the country has been spending about one-fifth of its public funds on education.
When President Jokowi took the office at the end of 2014, Indonesia was facing the problem of stagnating poverty and inequality reduction. He quickly introduced several initiatives to address these problems, mainly in the form of cards which gave the poor access to education and health services as well as food and cash transfer, and grants for villages as mandated by the Village Law.
The Indonesia Knowledge Sector Initiative (KSI) has run for four years and entered in July 2017 its second phase. Against this backdrop, KSI commissioned this research to inform its design and delivery. It aimed to explore what specific factors and actors shape the policy process? Whose and what type of knowledge tends to be influential in shaping policy and why?
