The quality of education is a key indicator in determining the success of human resource development in a nation. In Indonesia’s education system, educational financing is considered a strategic factor that can continuously improve educational quality. This study aims to examine the relationship between educational financing and educational quality through a literature review approach by analyzing scholarly sources, international reports, and government policy documents. The findings indicate a positive relationship between financing and educational quality; however, this relationship is neither linear nor automatic. The effectiveness of financing is highly dependent on good governance, professional school management, local government support, and the involvement of the community and private sector. Several challenges are also identified, including unequal distribution of funds, limited financial management capacity at the school level, and weak oversight mechanisms. Therefore, a reform in the education financing system is necessary, with an emphasis on transparency, community participation, and a needs-based approach. Through these strategies, educational financing can move beyond being a mere administrative tool and function as a transformative instrument to improve the quality of education comprehensively and equitably across all regions of Indonesia.
Habiby et al. (Thu,) studied this question.