Indonesia education market is estimated to grow at a robust CAGR during the forecast period driven by the government efforts to improve education standards, favorable demographics, rising online learning platforms propelled by robust economic growth.

Major Market Drivers and Emerging Trends

The market growth is mainly fueled by government efforts to enhance access to education and improve its quality. The government has recently shown a clear dedication to education as it is implementing reforms and boosting investments. Under the Golden Indonesia 2045 vision the government emphasizes the significance within education in developing skilled human resources because it serves as the cornerstone for accelerating national progress. Government spending has significantly risen which leads to notable improvements in secondary enrollment with the student number in higher education doubling in the past five years. This translates to a rise in the number and academic quality of students pursuing post secondary education.

The government facilitates study abroad for students through the LPDP which is administered by the Ministry of Finance. The LPDP aims to become the leading regional financial management which equips future leaders and fosters innovation to achieve a prosperous and inclusive Indonesia. The government contributed approximately IDR 99 trillion to LPDP in 2022. As part of its expansion LPDP is focusing on cost sharing initiatives with overseas universities and increased short exchange programs for students or young professionals.

The government has also encouraged business leaders to take a more active role in shaping curricula and establishing skill standards that align with job market needs. Business leaders are also anticipated to create internship opportunities and provide hands-on training for teachers and students. There could be potential for international vocational institutions to partner with their Indonesian counterparts to assist in curriculum development and expand their presence in the country.

Additionally the demand for high quality education in the country has surged with urbanization on the rise and a growing middle class population. The middle class in Indonesia is expanding rapidly and is estimated to grow which makes it the largest in Southeast Asia. There are significant opportunities for investment in Indonesia particularly in the education sector driven by a large market as some families are opting for international education over local pathways in search of better quality.

The other factor supporting Indonesia education market size growth is the increasing requirement for institutions to embrace digital transformation. More universities are turning to e-learning platforms to enrich the learning experience as the demand for higher education grows and the job market becomes more competitive. This encompasses online learning and virtual classrooms which are further fueling education market growth in Indonesia. Home to more than 280 million individuals, the country boasts a vast and varied education market which offers substantial opportunities for innovation.

Based on end-users, the market can be segmented into students, teachers, schools/universities and others. With over 52 million enrolled students and 3 million teachers along with 400,000 schools, Indonesia ranks among the leading education systems on a global scale. After completing junior secondary education, students can opt for senior high school or attend vocational schools. Most primary schools in Indonesia are public but over half of high schools and around 96% of universities are private institutions. Public schools in the country are generally free.

Based on educational level, the market can be categorized from primary to tertiary education. With recent reforms making education mandatory for 12 years, Indonesia is witnessing a growth in the number of schools at the primary and secondary levels. The majority of elementary schools are under government control with some offering accelerated programs which shorten the duration to five years. The Islamic education system operates alongside this.

Based on method, the market can be segmented into offline and online learning platforms. Even though offline classes remain more common and continue to be the primary mode of learning, online platforms are experiencing rapid growth in this digital era. The rise of mobile work and learning coupled with advances in technology and cloud computing is driving the increasing popularity of online platforms. The leading Ed Tech tools provide learning management systems to foster teacher-student collaboration along with interactive features for live teaching including Zoom or Google Classroom.

Top Market Players

Prominent companies in the market include Ruangguru, Cakap, Quipper among others. Institutions including the Universitas Indonesia and Bandung Institute of Technology alongside others also offer various academic programs and are crucial to the higher education advancement in Indonesia.

Key Developments

• • In 2024, the education services company in Indonesia Kipin was recently honored as the only Indonesian company featured in TIME Magazine’s list of the World’s Top Ed Tech Companies. It highlights the importance of its mission in addressing educational challenges in the country which makes it a leader in innovation within the education industry.
  • In 2024, the government initiated the Partnership Compact which is a crucial milestone in the ongoing educational system transformation in Indonesia. Created in partnership with various national and international stakeholders, the compact utilizes the GPE model to direct and coordinate resources for key education reform in Indonesia.

Segments covered in the Report:

The Indonesia Education Market has been segmented on the basis of End-Users, Educational Level, and Method. Based on End-Users, the market is segmented into Learning Providers, Schools/Universities, Students, and Teachers. Based on Educational Level, the market is segmented into Primary Education, Middle Education, Secondary Education, Vocational Education, and Tertiary Education. Based on Method, the market is segmented into Offline Classes and Online Learning Platforms.

Report Coverage	Details
Market Revenues (2024)	USD Million
Market Base Year	2024
Market Forecast Period	2025-2032
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By End-Users, By Educational Level, By Method
Regional Coverage	Indonesia
Companies Profiled	Ruangguru, Cakap, Quipper a total of 3 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Indonesia Education Market by End-Users

• • Learning Providers
  • Schools/Universities
  • Students
  • Teachers

Indonesia Education Market by Educational Level

• • Primary Education
  • Middle Education
  • Secondary Education
  • Vocational Education
  • Tertiary Education

Indonesia Education Market by Method

• • Offline Classes
  • Online Learning Platforms

Indonesia Education Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Ruangguru
  • Cakap
  • Quipper