Lessons from Indonesia’s SD Inpres Programme
In 2019, Esther Duflo, a prominent economist and Nobel Laureate in Economics, paid great attention to the impact of primary school construction in Indonesia through her article entitled ‘Schooling and Labour Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment’ published in 2000.
In the study, Duflo explored one of the largest school construction programmes ever recorded, the SD Inpres programme that took place in the period 1973-1974.
The SD Inpres programme, introduced by the Indonesian government, was a monumental step in expanding access to basic education for the people. Duflo’s research revealed that the programme significantly increased the proportion of people who completed primary education, an important achievement in Indonesia’s human capital development.
Not only that, Duflo also found that each additional school built through the programme contributed to a 1.5 to 2.7 per cent increase in wages for those accessing basic education.
Furthermore, the economic impact of building these SD Inpres was recorded to provide a return of 6.8 to 10.6 per cent, demonstrating how investments in education can generate substantial economic benefits.
An important lesson we can learn from this history is the importance of good development planning, which not only stops at the planning stage, but also requires effective and sustainable implementation.
The SD Inpres programme is an example of how careful planning and consistent execution can maximise the use of resources and achieve optimal results.
The future of a country’s development depends largely on the ability to plan well and execute the plan with discipline. The SD Inpres programme is not just the physical construction of schools, but a long-term investment in human capital that continues to have a positive impact on the national economy.
Therefore, planning and implementing development well is the key to achieving success and prosperity for all.
Source: Bappenas
