Research on the development of education in Indonesia has been done by strengthening the system of innovation and international competitiveness using literature methods. Aims of the study were 1) to determine the policy of education development in Indonesia, 2) to assess innovation in science and technology, 3) to determine the international competitiveness of education in Indonesia, 4) to determine the contribution of quality education to economic development. The development of education in Indonesia has been carried out with the financial support of 20% of the state budget has sufficient operational funding for education and research universities, research institutes, researchers and engineers technology. Innovation of new technologies has been able to increase productivity drive economic growth of Indonesia. International competitiveness has the advantage obtained student achievement in mathematics, chemistry, physics, biology, and English, has managed to carry out high quality research and have passed the examination by the National Aeronautics and Space Administration (NASA). Quality education in Indonesia has been succeeded in preparing a skilled and productive workforce has provided improvements contribute to Gross Domestic Product (GDP).