Every three years, Indonesia’s education system goes through the ritual humiliation of the PISA tests, comparing the performance of 15 year-olds in 65 countries in reading, maths and science. Indonesia has more teachers per student than most much richer countries, and an amendment to the constitution guarantees that 20 percent of the national budget is spent on education. And yet the 2012 PISA results, released this week, show that Indonesia ranked at the bottom of the heap in maths and science, and did only marginally better in reading….

Indonesia starts the new year hopefully: it has been upgraded to investment status by one of the rating agencies. It’s no huge surprise; rating agencies tend to think quite short term, and short term, the indicators look good. The Financial Times is enthusiastic about what it calls a “demographic dividend” i.e. lots of young people. “Indonesia’s dependency ratio of workers to retirees is dropping from about 55 percent now to 45 per cent by 2025,” says the pink paper. What…