Jakarta, ThedailyID — Education remains one of the biggest long-term financial commitments for Indonesian families. As school costs continue to rise, financial experts urge parents to start preparing education funds as early as possible.
Data from the Central Statistics Agency (BPS) shows the average annual education cost reached Rp4.56 million for elementary school students in 2024. The figure climbed to Rp10.19 million per year for senior high school students. The trend highlights the need for long-term financial planning.
Education expenses also vary across income groups. Households in the highest 20% spending category paid an average of Rp8.88 million each year for elementary education. Meanwhile, families in the lowest 40% spending group spent about Rp3.28 million annually.
PT Asuransi Jiwa IFG (IFG Life), a member of Indonesia Financial Group (IFG), said parents should include education savings in their overall financial plan. The company believes families should begin preparing long before children enter school.
“Every parent wants to provide the best education for their children,” said Fabiola Noralita, Director of Individual Business and Acting Director of Corporate Business at IFG Life. She said early planning gives families more flexibility while protecting other financial goals.
Fabiola also encouraged parents to prepare financial protection against unexpected events. Such protection can help families keep education plans on track even when financial conditions change.
The recommendation comes as Indonesia enters its demographic bonus period. More families are now building long-term financial plans for their children’s future.
However, the 2025 National Survey of Financial Literacy and Inclusion (SNLIK) found insurance literacy stands at 45.45%. Insurance inclusion remains lower at 28.50%. The findings show many Indonesians still have limited understanding of financial protection.
IFG Life said it will continue promoting financial literacy across Indonesia. The company believes education is one of the most valuable long-term investments for every family. It also encourages parents to combine education savings with financial protection to secure their children’s future.
