Abstrak USAID and the Government of Indonesia have a long history of partnership agreements. Current focuses include higher education, vocational education and basic education. USAID PRIORITAS works for improved quality of basic education through best practice approaches to teaching and learning, school based management and community participation. USAID PRIORITAS also works to improve the quality of pre-service and in-service teacher education in Indonesia. The teaching of reading in early grades is of key importance and assistance is provided through mechanisms for assessment, training of early grades teachers, and the introduction of leveled reading materials to support the development of reading skills for young readers.