Illegal levies in education funding in Indonesia: an analysis of experiences from Jambi Province

Indonesia’s 1998 reforms resulted in numerous significant changes to improve the country’s development, including education policy. The central and regional governments set aside at least 20% of their revenue and expenditure budgets for various programs to improve the country’s educational quality each year. Utilizing community engagement to manage school finances can contribute to the long-term viability of the education sector. However, it is essential to acknowledge that this approach also risks fostering corruption. This article examines the impact of the school budget reform on the corruption involving crowdfunding in Indonesia. The data for this study are analyzed using interpretative phenomenological analysis (IPA) and a qualitative phenomenological methodology. The data was gathered via comprehensive interviews with a sample of participants who represented diverse backgrounds. The findings emphasize that the community’s involvement in school funding has led to the emergence of a novel type of corruption, as the funds collected are, in fact, illegal fees for education. Therefore, it is strongly advised that local governments establish regional policies concerning the allocation of funds for education and ensure the active involvement of the community in managing these funds.