Vice-President Boediono has given education authorities two weeks to improve the distribution of school funding, following reports that up to Rp 300 billion ($35.4 million) was still being withheld.

Yopie Hidayat, a spokesman for Boediono, said on Thursday that the vice-president had ordered the coordinating ministry for people’s welfare to oversee efforts to expedite the release of the Rp 4 trillion School Operational Aid (BOS) fund by regional administrations.

“The vice president has given them until the second week of August to improve the BOS distribution mechanism and report back to him,” he said.

The BOS, which is used by schools to cover their overhead costs and also serves as an indirect subsidy for students from low-income families, was previously distributed directly to schools by the central government.

But as of this year, the government began giving the funds to regional administrations instead, citing the principle of regional autonomy. These administrations are then responsible for distributing the money to schools, but most regional administrations have failed to distribute the funds on time.

The first quarterly batch of BOS payments were successfully distributed: only Supiori district in Papua failed to distribute the funds to schools.

But the distribution of the second batch, which includes the Rp 300 billion still withheld, has not come close to the performance of the first. Nearly 40 district and municipal administrations have failed to give the money to schools.

National Education Minister Muhammad Nuh said he would set up a team to look into the slow release of the funds, including probing allegations the money was being diverted for other purposes

“They have the money already, but it seems difficult for them to distribute it,” he said.

“They have thousands of excuses, but I guess there’s really only one problem: lack of commitment.”

Nuh said the late release of the money would force school officials to borrow money, raise fees or stop teaching altogether.

In a related development, officials in Jakarta said they would soon respond to calls from parents to replace a primary school principal accused of embezzling money from the BOS.

Taufik Yudi Mulyanto, the city education chief, said his office had been monitoring Rotua Siregar, from State Elementary School No. 4 Bambuapus in East Jakarta, for several weeks and would announce a decision on her fate before the end of the month.

Earlier this week, angry parents sealed off the school to protest the lack of action against Rotua. The education agency has since unsealed it.