School dropout remains a significant sociological and economic challenge to achieving educational equity in Indonesia, particularly amid the policy direction toward expanding 13 Years of Compulsory Education. This challenge is evident in Mataram City, where 1,364 children have never attended school, comprising 329 children aged 7–12 years, 333 aged 13–15 years, and 702 aged 15 years and above. In addition, approximately 856 children have dropped out of school, while 1,676 graduates have not continued their education. This study aims to analyze the management of community-based equivalency education organized by Learning Activity Centers (SKB) and Community Learning Activity Centers (PKBM) as a strategy for mitigating school dropout. A qualitative approach with a case study design was employed, with data collected through in-depth interviews, direct observations, and documentation studies. The findings indicate that flexible and community-oriented management practices implemented by SKB and PKBM provide an alternative pathway for reconnecting out-of-school children with the education system. Outreach strategies, functional and contextual curricula, flexible learning arrangements, and the integration of vocational skills contribute to making equivalency education more accessible and relevant to learners’ social and economic circumstances. Nevertheless, the implementation of these programs continues to face structural and social barriers, including limited operational budgets, unequal access to educational services, inadequate resources, and persistent negative stigma toward non-formal education. These findings demonstrate that dropout mitigation requires more than educational access; it demands responsive institutional management and sustained collaboration among educational providers, communities, and local governments. Strengthening regulations and partnership mechanisms between local governments and non-formal education institutions is therefore essential to optimize the contribution of SKB and PKBM toward achieving inclusive and equitable 13 Years of Compulsory Education.