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In an effort to increase education quality, the Indonesian government initiated the Teacher Certification Program (TCP) in 2009 to increase the minimum attainment of teachers to 4-year degrees. Despite its US$460 million price tag and taking up nearly 90 percent of the education budget, the TCP has yet to produce positive gains in student achievement. Understanding the context in which teacher incentive policies are being implemented is essential in producing desired student outcomes, as extrinsic rewards may often unknowingly undermine more stable and enduring intrinsic rewards, which in return will lead to reduced teacher commitment. Several researchers, for instance, have found that while the TCP has helped to improve teachers’ welfare and attract more qualified candidates into the teaching profession as a result of significant salary increases, it has not been effective in improving teacher commitment, as demonstrated through teacher absenteeism rates and effective work hours (Fahmi et al., 2011; Suryahadi & Sambodho, 2013). Since previous studies have demonstrated the positive relationship between teacher commitment and student achievement, it is imperative for Indonesian policy makers to examine how policies such as the TCP both directly and indirectly shape Indonesian teachers’ commitment. Using Firestone and Pennell’s (1993) Working Conditions and Teacher Commitment framework, this literature review examines how current teacher working conditions in Indonesia impact teachers’ organizational commitment and commitment to student learning.