Investing in knowledge? Information asymmetry and Indonesian schooling

This paper reports from a survey of media exposure and level of knowledge among senior high school students at various locations in Indonesia. Government budgets for education have recently been dramatically reduced in Indonesia and increasing financial burdens are put on the households, like in many other poor countries. There is a tendency to increasing differences in quality of schooling among social layers and geographical areas. Main conclusions in this research are that information asymmetry exists as a problem in society and that type of school and location matter more than media exposure for students’ knowledge level. Students in public schools generally score significantly higher than those in private institutions. Also, students’ level of knowledge tends to fall with decreasing level of geographical centrality. Our policy recommendations include increased public investment in quality schooling for all.