Summary: The evolving nature of education system and the increasing complex challenges facing individual teachers and the teaching profession as a whole are of immense importance in Indonesia. The Indonesian teacher reform was designed and is being implemented as a genuinely comprehensive program. From its beginning, it has therefore considered and responded to all of the necessary stages of an effective teacher management and development process. The importance of this reform is further underlined by the efforts made by the Ministry of education and culture, supported by the World Bank, to examine following points: (1) the quality of existing (pre-reform) and new (post-reform) teachers in the system; (2) the promotion of higher standards and enhanced competencies for teachers through more effective processes of recruitment, teacher education, certification, remuneration and other incentives, ongoing professional development and support, and career promotion or progression; and (3) the impact of these actions on teacher behavior and knowledge, student achievement, and the financing and efficiency of the education system. Thus, the World Bank team, with the Indonesian Ministry of national education, designed and managed a wide range of research projects and program support activities that, taken together, tell the story of the design, implementation, and impact of this reform. In order to reduce the budgetary impact of the certification program, the inefficiencies associated with teacher hiring and deployment need to be addressed. Attention will also need to be paid to staffing standards in small schools which are a key driver of low student-teacher ratios. But the incentive of both professional status and professional pay is now attracting more candidates into teacher education at the expense of other fields. The original intention of the teacher law was to put in place a framework of effective policies and procedures which will both assure the quality of the process and its products and encourage continuing professional development.
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