Together with multilateral donor organisations, the government of Indonesia has responded by setting aside Rp. While responding to the pressures the crisis has placed on education remains a principal concern, four broad reform themes also drive national education policy. Decentralisation of the national education system is also a prominent topic of reform. Although decentralisation has been the subject of much discussion, little has been done in terms of large scale implementation. The national education system is based on the country's 1945 constitution and the state ideology called pancasila , which encompasses the five principles of the state's philosophy.
Education consists of both state and private institutions.
Private institutions comprise a significant portion of the country's primary, secondary and tertiary institutions. At some levels, the private sector forms the majority of institutions. Islamic education is also a significant component of the education system. One area where growth has persisted in spite of the crisis is in English language teaching. The sector has seen increasing demand for a variety of private courses across the country.