BOGOR, WEST JAVA – Finance Minister Sri Mulyani has cited low salaries for teachers and lecturers as a challenge for state finances. The finance minister, who served under Presidents SBY, Jokowi, and Prabowo, also questioned whether teachers and lecturers should be paid from state finances.
This statement is honest but also serves as a wake-up call, reminding us that teachers and lecturers have long been viewed as a burden on the state. Yet, from an economic perspective, educators are the driving force behind growth. The state aims to improve education quality and compete with advanced nations worldwide, yet ironically, educators receive meager salaries—barely enough to buy rice—while lecturers who shape the nation’s future leaders struggle to pay their rent. Teachers and lecturers are hailed as the foundation of civilization, unsung heroes, yet the state still views their well-being as a “fiscal challenge” rather than a strategic investment.
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The 2025 education budget is indeed substantial, reaching Rp 724.3 trillion, or approximately 20% of the national budget. However, this funding is spread across numerous programs such as the Basic Education Operational Assistance (BOS), the Higher Education Scholarship Program (KIP Kuliah), the Vocational Education Scholarship Program (PIP), infrastructure, scholarships, and only a portion goes toward teachers’ salaries and allowances. Many honorary teachers still earn wages below the minimum wage, while lecturers at small private universities are paid per credit hour at disheartening rates. This is not merely a matter of budget size but a structural issue stemming from employment contracts, economic disparities between regions, and stagnant career paths.
Looking at developed countries that have demonstrated economic progress, technological advancement originates from a strong educational foundation by providing teachers and lecturers with decent and prestigious salaries. Finland and South Korea, for example, rank teachers among the top 10 highest-paid professions. The impact is clear: improved education quality, innovation flourishes, and the economy grows sustainably. Data on the impact of education on the economy, according to Hanushek & Woessmann (2012), provides strong evidence that each additional year of education increases average individual income by 9–10%. Furthermore, the quality of education, measured through cognitive skills, is directly linked to the long-term growth rate of GDP.
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The author then made a quantitative estimate for 10 years based on the Hanushek & Woessmann (2012) model simulation if Indonesia is able to increase the average student achievement score by 0.25 standard deviations, equivalent to a moderate increase in international tests such as PISA, indicating a potential additional economic growth of around 0.5% per year. The results indicate that Indonesia’s GDP could increase cumulatively by 10–12% compared to a scenario without quality improvements. The additional trillions of rupiah in the national economy would yield returns far exceeding the costs of raising educators’ salaries today.
So, why are we still hesitating? Every rupiah allocated for the welfare of teachers and lecturers is not charity, but an investment in the nation’s future. Teachers and lecturers who are well-off are more motivated, have the time and energy to develop themselves, and are able to provide education that is relevant to the needs of the 21st century.
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The government must have the courage to change the paradigm. First, set a national minimum wage standard for teachers and non-civil servant lecturers above the minimum wage plus professional allowances. Second, allocate a fixed portion of the education budget specifically for the welfare of educators. Third, establish an education endowment fund whose investment returns are guaranteed to cover educators’ salaries and professional development. Education without well-off teachers and lecturers is nothing but an empty slogan. A nation that aspires to progress cannot build grand schools on a shaky foundation.
It is time we stop viewing educators as a burden and begin treating them as the most valuable investment for the nation’s future.
Text: Dr. C. Aza El Munadiyan S.Si., M.M. (Third Vice Chairman for Student Affairs, STIM Budi Bakti)
Photo: DDTV
Editor: Dhika