Reforming Teacher Allowance Distribution: Government Ensures Timely Payment

The Government of Indonesia has introduced major reforms to the disbursement of teacher allowances for regional civil servants. Instead of being channelled through local government accounts—which often caused long delays—allowances are now transferred directly from the national treasury to teachers’ bank accounts. This reform has already reached over 1.5 million teachers across Indonesia, providing financial certainty, enhancing transparency, and strengthening teachers’ motivation to deliver quality education. SKALA, an Australia–Indonesia Partnership Program for Accelerating Basic Services, has supported the design of this transfer mechanism, helping ensure the reform works effectively at both national and local levels. This booklet highlights the reform journey, its positive impact on teacher welfare and education quality, as well as the remaining challenges to ensure its long-term sustainability.