<![CDATA[Literacy Rate (LR) is defined as percentage of population aged over 15 with ability to read and write. LR, as one of people welfare indicators, is a measurement of educational development. The indicator, as a measurement of government performance on education, can be measured if all variables related is available. Statistics Indonesia (BPS) each year calculated LR based on National Socio-Economic Survey (SUSENAS) with estimation available only on provincial level and district level. Along with establishment of autonomous regional policy, where regional government had greater power to manage its own region, availability of LR on lower levels to monitor educational development is necessary. Due to sampling design of SUSENAS, accommodated only estimation on district level, will give high variance if used to estimate on lower sub-district level, although still unbiased. Modelling LR was done with Logit-Normal approach, because LR data followed Binomial Distribution. Good estimators from inadequate sample size can be obtained with method of Small Area Estimation (SAE). Hierarchical Bayes (HB) method is one of SAE methods which are proven to give good estimate on binomial distributed data as LR. Estimation on sub-district level in District of Donggala with HB method gave better result compared to the direct estimation with lower Mean Square Error (MSE).Key words : Small Area Estimation, Literacy Rate, Hierarchical Bayes, Logit-Normal Model]]>
