Does Education Budget Influence School Dropout?

Abstract

The problem of dropping out of school is very common in Indonesia. To overcome this, the education budget is allocated through the School Operational Assistance (BOS) program and the Smart Indonesia Program (PIP). Previous studies have shown that the implementation of BOS and PIP has not been effective, and there has been controversy over the significance of BOS and PIP on school dropout rates. This study aims to examine the effect of the BOS budget and PIP budget on school dropout rates in Indonesia. The study uses quantitative research methods. Data were analyzed by multiple linear regression analysis, t-test, and f-test. The results of the study show that the dropout rate tends to fall, although statistically, the BOS and PIP budgets do not have a significant effect on the dropout rate. These findings suggest that the success of a program depends not only on a certain amount of funding but also on the quality of overall program implementation. Keywords: school operational assistance, smart Indonesia program, school dropout