<![CDATA[The educational assessment system in Indonesia faces significant challenges in transitioning from a conventional summative approach toward an assessment model oriented toward the learning process particularly at the primary school and *madrasah ibtidaiyah* (SD/MI) levels, which serve as the foundation for developing students' competencies and character. Key obstacles hindering the effective implementation of formative assessment include limited teacher competency in designing formative assessment instruments, heavy administrative burdens, and a paradigmatic resistance to changing the assessment system. This study aims to analyze the implementation of formative assessment in SD/MI settings based on the Ministry of Education, Culture, Research, and Technology (Kemendikbudristek) Regulation Number 21 of 2022—by identifying its implications for the quality of learning, examining the alignment between policy and field practice, and formulating policy recommendations and operational implementation models. The study employs a descriptive-qualitative analytical method, utilizing a literature review and document analysis of the aforementioned regulation, alongside relevant scholarly literature sourced from Google Scholar, SINTA, and DOAJ (covering the period 2017–2025). The findings indicate that the regulation establishes three core principles for assessment fairness, objectivity, and an educational focus through a systematic procedure encompassing the definition of objectives, instrument development, execution, data processing, and reporting. The implementation of formative assessment has been shown to positively influence students' conceptual understanding, the quality of teacher feedback, the refinement of instructional strategies, and the development of student character. Nevertheless, its implementation remains constrained by limited teacher competency, a lack of infrastructure, and paradigmatic resistance. While formative assessment holds significant potential for enhancing the quality of learning in SD/MI, it requires the strengthening of teacher competencies, systematic institutional support, and ongoing adjustments to administrative workloads.]]>
