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Indonesia’s Almost 30,000 pesantren are private Islamic education institutions and acknowledgedas part of Indonesia’s education system. They are particularly known for their long presence insociety delivering education to those coming from low-income families in rural areas mostly onthe island of Java.While retaining the authority to conduct education independently, pesantren have long receivedsome public financing but significantly less than public schools. To a large extent, pesantren arefunded independently from their own sources. Problems to raise adequate financial support areconsidered to have affected the quality of facilities and infrastructure as well as the remunerationof pesantren teachers.Following presidential elections, in which Javanese Muslims largely provided their support toincumbent President Widodo, in late September 2019 the Indonesian House of Representatives(DPR) passed the “Pesantren Law.” It provides the legal base for pesantren to receive fundingfrom central and local governments. This public funding introduces pesantren to the regulatoryobligations of public schools. The law states that pesantren are going to be subjected to a qualityassurance system that determines standards for the curriculum, the institution, the students andthe teachers.The Pesentran Law potentially results in the disappearance of the pesantren’s distinctive featuresdetermined by the Kyai and the demand of the community in which they operate. Instead, it isrecommended that the government provides funds only as an incentive to improve pesantreneducation. The pesantren should remain largely autonomous to preserve their diversity and toprevent that their accountability is going to be redirected from their respective communitiestowards government institutions.A checklist should set benchmarks for the government: it should impose minimum standardsfor the curriculum, facilities and management while still ensuring substantial autonomy forthe pesantren. Moreover, efforts are needed in accordance with the Pesantren Law to improveMORA’s Islamic education data management and the Education Management Information System(EMIS) to generate reliable data for future technical regulations.

Effects of the Pesantren Law on Indonesia’s Education System – A Projection