The 1945 Constitution mandates that at least twenty percent of the State Revenue and Expenditure Budget (APBN) is for the education function. The Government and the Indonesian Parliament in 2010 through Law Number 2 of 2010 concerning the 2010 APBN-P agreed that part of the funds from the allocation of funds for the education function in the APBN-P were used as the National Education Development Fund (DPPN) which was managed by an endowment fund management mechanism (endowment fund) by a Public Service Agency (BLU).
In 2011, the Minister of Finance and the Minister of Education and Culture agreed that the management of the DPPN and the utilization of the proceeds from the management of these funds will be carried out by the Ministry of Finance, but the officials and employees are a combination of Ministry of Finance employees and Ministry of Education and Culture employees.
The Minister of Finance through the Minister of Finance Regulation (PMK) Number 252 / PMK.01 / 2011 dated December 28, 2011 established the Organization and Governance of the Education Fund Management Institution as a non-echelon institution that is directly responsible to the Minister of Finance and is guided by established policies by the LPDP Trustee Board (Minister of Education and Culture, Minister of Finance, and Minister of Religion). Through the Decree of the Minister of Finance (KMK) Number 18 / KMK.05 / 2012 dated January 30, 2012, the LPDP was designated as a government agency implementing the Public Service Badana financial pattern.
Further information https://www.lpdp.kemenkeu.go.id/
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