It is also common in English (not sure about American English) to say "We read in school" but this was marked as wrong, even though "di" = "at/in/on". In Indonesian can somebody only be "at school" rather than "in school"?
I agree with SWybrow. We read in school seems perfectly natural.
Also agree - 'In' school should be accepted.
Other than being more formal, what is the difference between 'baca' and 'membaca'?
'baca' means read.
'membaca' means reading.