This research was done on primary school students who are able to understand mathematical concepts, but unable to apply them in solving real life problems. Therefore, this study aims to improve primary school students' mathematical literacy through problem-based learning and direct instruction. In addition, the research was conducted to determine whether there are differences in the increase in literacy mathematical among students who received problem-based learning and direct instruction in primary schools located in urban areas, transition, and villages, as well as whether there is an interaction effect between the model of learning by location category of the school toward mathematical literacy skills of primary school students. The study was conducted in the academic year 2015 to 2016 in the fifth grade public primary schools in Bandung with three categories of school location (rural, city and county transition). During the research, one experimental group was treated by problem based learning, while the second experimental group was treated by direct instruction. The research approach used was a quantitative approach with quasi experimental method nonequivalent groups design pretest-posttests. The results showed that: there was a significant difference between the increase in mathematical literacy of students who received a model of problem-based learning (PBL) and direct instruction (DI) model; PBL model was more effective in improving students' mathematical literacy model than the DI; There were no significant differences regarding an increase in students' mathematical literacy by category location of the school; there is no interaction effect between the model of learning by school location factors to the increase in students' mathematical literacy.
Key words: Mathematical literacy, problem based learning, direct instruction, mathematics education, primary school.
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