This paper explores private educational provision in the context of the decentralisation of education management in Indonesia. It provides an overview of the extent and nature of private provision and explores the nature of the interrelationship between private and government schools. The predominance of private provision at secondary level, rising demand for secondary schooling and national financial constraints will mean that private schools continue to play a major role in Indonesia for the foreseeable future. This paper argues that the sector warrants greater consideration from government and donor alike as an issue of both financial propriety and social equity. If the government is to increase educational participation and address issues of efficiency and social equity then policy sensitivity is required to ensure educational provision which is geographically rational and equitable, and promotes complementarity and not competition between government and private provision.