Background/Objectives: Household poverty is a known risk factor for early childhood development. However, the extent to which caregiver education can mitigate these risks remains underexplored in Southeast Asian contexts. This study investigates whether caregiver educational attainment buffers the negative impact of low household income on child-rearing environments and early developmental outcomes in Indonesia. Methods: This study utilized cross-sectional data from Indonesian caregivers. To maximize statistical power, analyses of the home environment (Index of Child Care Environment) full sample (N = 933). Analyses of developmental outcomes (Early Childhood Development Index) were restricted to the validated age cohort of 3- and 4-year-old children (N = 355). General Linear Models (GLM) were conducted, controlling for child age and sex. Results: For the home environment, both household income (p = .042) and caregiver education (p = .021) were independent, significant predictors, with no significant interaction. However, for actual developmental outcomes, a highly significant interaction between income and education emerged (p < .001). Conclusions: While education and income independently improve the home environment, caregiver education acts as a robust protective buffer for actual child development, mitigating the risks typically associated with low-income households. Interventions targeting socioeconomic disparities should prioritize parenting and caregiver education.