This edition includes a focus topic thatdiscusses how 15 years of education reforms have helped toimprove education outcomes and human capital in Indonesia,and what challenges remain. The outcomes from 15 years ofeducational reform have been mixed, with a significantexpansion inaccess, but a large deficit in quality. In 2002,Indonesia embarked on a series of policy reforms tostrengthen access to and the quality of education, both keydeterminants of human capital development. After 15 years,however, the results of the reforms have been mixed.Enrolments have grown significantly, but student learningremains below the levels of other countries in the region.For example, 55 percent of 15-year olds are functionallyilliterate, compared to lessthan 10 percent in Vietnam.Education reform covered the right areas, but implementationchallenges led to uneven results. Most elements of thereforms were aligned with international best practices andhad strong potential to improve Indonesian educationoutcomes. Educationreform included increasing financing foreducation, enhancing participation of local actors in sectorgovernance, strengthening accountability, improving thequality of teachers, and ensuring students’ preparedness asthey enter schooling. Significant implementation challengesprevented the policy reform from reaching its fullpotential. While steps have been taken to address someofthese challenges, further actions are urgently needed. Inparticular, measures need to be taken tostop growinginequality in student results, and to take advantage of theopportunity generated by the large number of teachersretiring in the next decade. Key recommendations include:defining and enforcing qualification criteria to be met byevery teacher who enters the classroom, complementing theexisting financing mechanisms for education with a targeted,performance-based transfer for lagging schools anddistricts, and launching a national education qualitycampaign to generate public awareness and pressure foreffective action to improve student learning.