Inflation is something that affects us all, whether we realize it or not. From groceries to housing and transportation, when prices go up, it changes how we live and spend. But here’s something you might not expect: education is becoming one of the major forces behind inflation, especially in Bali as we begin 2025. So, what’s really happening—and why are school fees suddenly at the center of the economic conversation?
Let’s break it down.
Education Becomes a Key Inflation Driver in Bali
According to recent data from the Central Statistics Agency (BPS) of Bali Province, the region experienced a year-on-year (yoy) inflation rate of 1.21 percent as of February 2025. Among all the categories measured, education stood out as one of the commodity groups with the highest price increases.
While many people tend to associate inflation with food or fuel, the cost of education is now joining the ranks of top inflation contributors. This is a significant shift, and one that deserves attention. Why? Because rising education costs not only affect students and parents—they also influence broader economic trends across the region.
This inflation isn’t just a local phenomenon, either.
A National Trend: Education and Health Lead the Way
Zooming out to the national level, the numbers tell a similar story. Data from the Central Statistics Agency (BPS) for 2024 shows that education and health sectors were two of the biggest contributors to inflation throughout the year. Most notably, school fees have been increasing at a rate of up to 15 percent annually.
That’s a steep climb, especially when combined with other household expenses. For many Indonesian families, this rise in education costs can put a real strain on their budgets. Whether it’s kindergarten tuition or university fees, the impact is being felt across income levels and age groups.
And with Bali being a major hub for both domestic and international education services, it’s no surprise that the province is feeling the heat more than most.
Why Are Education Costs Rising So Fast?
There are several factors driving up education costs in Bali and across Indonesia. First, schools are facing increased operational costs, including staff salaries, utilities, technology investments, and facility maintenance. Additionally, there’s a growing demand for higher-quality education and international standards, which often come with higher tuition fees.
On top of that, the post-pandemic era has brought changes to how schools operate. Many have adopted blended learning models that require both in-person and online resources. While this offers flexibility, it also means schools are investing in infrastructure and training that didn’t exist before—costs that are often passed on to students and their families.
What Can Be Done? Exploring Potential Solutions
So, what’s the path forward? While there’s no quick fix, there are a few ways we can begin to address the growing financial burden of education.
First, government intervention could play a larger role, whether through subsidies, scholarships, or support for public schools. Increased transparency around school fee structures might also help families better understand what they’re paying for—and why.
In the long term, encouraging alternative and affordable education models, such as online programs, vocational training, and community-based learning initiatives, might help ease the pressure on traditional education systems and make quality learning more accessible.
Final Thoughts: Paying Attention to the Bigger Picture
Education is, without question, one of the most important investments any society can make. But when its rising costs begin to drive inflation, it’s a signal that we need to pay closer attention. What’s happening in Bali now could easily reflect future trends across Indonesia and even the broader Southeast Asian region.
As we move through 2025, it’s crucial to keep conversations going—about inflation, about education, and about how we can ensure that both economic stability and access to quality learning go hand in hand.