On a sun-drenched morning in Denpasar, Bali’s capital, a crowd of parents and educators gathered outside a newly renovated school building, its coral-red walls freshly painted. Inside, children in crisp uniforms practiced their English pronunciations, their laughter echoing through halls that once echoed with the clatter of traditional wooden desks. This is not just another day in Indonesia’s tourism heartland—it’s the opening of one of 12 new Sekolah Rakyat (People’s Schools) funded by President Prabowo Subianto’s recent decree, a policy that has ignited both hope and scrutiny across the archipelago.
How Bali Became the Testing Ground for Indonesia’s Education Overhaul
Prabowo’s announcement last month to expand tuition-free Sekolah Rakyat to 500 schools nationwide—starting with 12 in Bali—marks a significant shift in Indonesia’s approach to public education. The initiative, part of his broader “Indonesia Maju” (Advanced Indonesia) agenda, aims to address persistent disparities in access to quality education, particularly in rural and island regions. Bali, with its mix of affluent resorts and under-resourced villages, serves as a microcosm of the challenges and opportunities this policy seeks to tackle.
The Sekolah Rakyat model, first introduced in the 1970s, emphasizes community-driven governance and a curriculum blending local cultural practices with national standards. However, the program has struggled with inconsistent funding and quality control. “This expansion isn’t just about numbers,” says Dr. Rina Wijayanti, an education policy analyst at the Indonesian Institute of Sciences (LIPI). “It’s about redefining what public education looks like in a country where 30% of secondary schools still lack basic facilities.”
Why Bali? A Strategic Choice with Unspoken Risks
Bali’s selection as the pilot region is no accident. The island’s dual identity as a global tourism hub and a region with stark socioeconomic divides makes it a high-stakes experiment. While luxury resorts in Nusa Dua employ thousands, rural areas like Karangasem still grapple with literacy rates below the national average. The government’s push to open 12 new schools by 2027 includes partnerships with local NGOs and private sector sponsors, but critics question whether this model can scale without compromising quality.
“Bali’s tourism economy is already strained by overdevelopment,” says I Gusti Ngurah Sudharma, a Balinese cultural preservationist. “If these schools become another tourist attraction—think ‘edu-tourism’—they’ll fail the very communities they’re meant to serve.” The government has pledged to prioritize enrollment for children from low-income families, but implementation remains uncertain. A 2023 report by the World Bank found that 42% of Indonesia’s out-of-school children live in rural areas, many of whom face transportation and cultural barriers to education.
The Economics of Free Education: Who Pays the Bill?
The financial mechanics of Prabowo’s plan are as complex as they are controversial. While the government claims the schools will be fully funded through existing education budgets, analysts warn that inflation and rising operational costs could strain resources. The Ministry of Education’s 2026 budget allocates IDR 12.3 trillion (around $850 million) for the initiative, but this represents just 1.2% of the total education budget—a figure critics argue is insufficient given Indonesia’s 230 million population.
“This is a political move, not a fiscal one,” says economist Budi Setiyadi of the University of Indonesia. “The real question is whether the government can maintain this funding amid economic headwinds. If inflation spikes again, these schools could become another casualty of short-term policymaking.” The government has also faced backlash for its reliance on private partnerships, with some fearing corporatization of public education. A 2025 audit by the Indonesian Audit Board revealed that 18% of schools receiving private funding had irregularities in spending, though no direct link to the Sekolah Rakyat program was found.
Cultural Resistance and the Quest for Balance
Beneath the policy rhetoric lies a deeper tension between modernization and tradition. Bali’s education system has long been a battleground for cultural identity, with some communities resisting Western-style curricula that they see as eroding local values. The Sekolah Rakyat model explicitly incorporates Balinese philosophy and language, but implementation has been uneven. “We want our children to be global citizens, but not at the expense of who they are,” says Ni Luh Gede, a mother of three in Ubud. “These schools must teach both the world and our world.”

The government has responded with promises of teacher training programs focused on cultural integration, but experts caution that systemic change takes time. “Education reform isn’t about building schools—it’s about changing mindsets,” says Dr. Suryadi, a professor of education at Gadjah Mada University. “If this initiative doesn’t address teacher preparedness and community engagement, it’ll be another well-intentioned failure.”
What’s Next for Indonesia’s Education Future?
As Bali’s new schools open, the world is watching. The success or failure of Prabowo’s vision could set a precedent for Indonesia’s $32 billion education sector, which has struggled with underfunding and inefficiency for decades. For now, the children of Bali are the lucky beneficiaries of a policy that promises to bridge divides—but the real test lies in whether this ambition can outlast political cycles and economic volatility.
For families like the Suryadis in Denpasar, the hope is simple: “We just want our kids to have a chance,” says Ibu Suryadi, a former teacher turned school volunteer. “Not a handout, but a ladder.” Whether Prabowo’s schools can build that ladder remains to be seen—but in a country where education is both a right and a privilege, the stakes have never been higher.