Hot Issue and Government Policy about

Investment in Human Capital : Education and Training

Group :
Sheilla Audita 12020118190084
Elisa Ardiani 12020118190215
Wintari Aaqila 12020118190196
Aqshal Averiel 12020118190193
Audrey Gisela 12020118190207

Class X (IUP)
Human Resource Economics
Economics Development
Faculty of Economic and Business
 I. Hot Issues

A. Educational Challenges and Opportunities of the Corona Virus

1. Around 25 million elementary school children in Indonesia are now studying

under the threat of a COVID-19 pandemic.
As carried out by many countries, to prevent transmission of the corona virus
in schools, the Minister of Education and Culture issued a circular dated March 24,
2020 which regulates the implementation of education during the emergency period
of the spread of coronavirus). This "Learn from Home" policy is appropriate to
prevent the spread of COVID-19 in the school environment, but our initial and
limited surveys show that implementation is still diverse in the field. The still limited
ownership of computers / laptops and internet access, for example, is a major problem
that results in uneven access to online learning. This finding is the same as what
happened in developed countries such as in the United States, United Kingdom, and
neighboring Singapore. In early April, we from Innovation for Indonesian School
Children (INNOVATION) conducted research to find out the implementation of the
"Learn from Home" policy. We surveyed around 300 parents of elementary school
students in 18 districts and cities in the provinces of East Nusa Tenggara (NTT), West
Nusa Tenggara (NTB), North Kalimantan (Kaltara), and East Java. Our survey shows
that there is an imbalance in access to learning media, which is deeper between
children from economically capable and disadvantaged families. We also found that
only about 28% of respondents said their children learn by using online media.
Related to the role of parents, the mother group provides more time (2-3 hours
per day) than fathers (less than 1 hour) in accompanying children to learn from home.

2. The majority of parents are literate in learning information from home

Most of the respondents of this research came from partner schools of the
INNOVATION program. They are the parents of students in the elementary class.
Generally, respondents have internet and cellphone access. Viewed from the
background of work and education, respondents from the economic class can afford
more than the poor economy. In terms of disseminating information on the "Learning
from Home" policy, 95% of parents say their child's school has implemented the
policy. Although the official national policy was only published on March 24, 2020,
76% of parents said schools had implemented the policy earlier, the third week (16-
22). This fact shows that the District and City Offices, which are authorized to take
care of early childhood education to junior high school, have made a decision even
though the regulation has not yet been published.

3. The use of offline learning media is more dominant

Only about 28% stated that their children learn by using online media both
using learning conference media and using online learning applications. Conversely,
the use of offline learning media by using books and student worksheets is the
dominant method (66%) used by teachers. The rest, which is about 6% of parents say
there is no learning as long as students are asked to learn from home. In terms of the
province, the more remote the province is, the smaller the percentage of students who
get online learning. In East Java, 40% of respondents said their children get online
learning. In NTB online learning is less than 10% and in NTT less than 5%. The rest
is through offline books and student worksheets.

4. Children are given many tasks by the teacher

For students who study online, all students get assignments that must be
completed, 87% of students benefit from the delivery of material by the teacher. But
only 65% of students get the opportunity of question and answer session between
students and teachers. This assignment may be closely related to the curriculum
burden that must be fulfilled by the teacher. However, the Ministry of Education and
Culture has actually freed teachers from the demands of curriculum achievements
both for grade promotion and graduation.

5. The effect of parents' work and education on online learning access

The educational background of parents and economics tends to contribute to
ownership of online learning access. Children who study using online media on
average have parents who work as government employees (39%) and entrepreneurs
(26%), as well as a minimum educational background of S1 (34%) and high school
(43%). On the other hand, the majority of children who were not given assignments
by schools came from those whose parents worked as farmers (47%) and had an
elementary school education (47%). This means that more children from vulnerable
groups do not learn than children from economically capable families. Even though it
has not been ideal, most parents can still feel the positive impact of this policy.
They stated that children lead healthier and more independent lives (62%),
have more knowledge about health, including COVID-19 (61%), help parents more
often (56%), and have more opportunities to learn skills living like washing, cooking,
and the like (53%).

6. Mothers accompany more children than fathers

In addition to aspects of work and education, it was also found differences in
the contribution of parents to mentoring while children learn from home. Although
home education is the responsibility of both parents, mothers allocate more time than
fathers. Within a day, the majority of mothers (33%) spend 2-3 hours, compared to
the majority off fathers (44%) who spend around less than an hour doing activities
such as communicating with teachers, assisting children's learning processes, helping
children understand material, and providing learning support tools. Mothers who
accompany children 3 to more than 4 hours, the amount is 3 times that of the father.

7. What can be done?

Some parents suggest that there be efforts to improve the quality of distance
learning. For example, increasing the number of material delivery sessions (not
limited to the task), providing additional training for teachers related to technology
mastery, and providing more equitable internet access. Considering that internet
infrastructure procurement cannot be done quickly, then for those in areas with
limited and remote internet but not yet included in the red and yellow zone COVID-
19 the local government can empower village communities such as Taman Bacaan
Masyarakat (TBM), youth groups, Posyandu administrators or PKK, and village
officials. Of course this method must still pay attention to procedures that are safe
from the risk of contracting COVID-19. If needed, the resources of the village
government can also be used to provide reading books, free internet and children's
nutritional needs. The Ministry of Education has allowed schools to use School
Operational Costs (BOS) to purchase credit packages and internet access. This policy
is expected to help the distance learning process for both teachers and students. In
addition to schools, the village government can also help teachers and students get
internet access or other needs for teaching and learning. In addition, the Ministry of
 Home Affairs, the Ministry of Social Affairs, and the Ministry of Villages,
Disadvantaged Regions and Transmigration need to support these efforts with flexible
regulation. To anticipate inequality, currently the Ministry of Education and Culture
has provided learning through TVRI and RRI starting 13 April. This approach is
expected to reach more students. This program must also be able to accommodate the
interests of children with special needs, such as the use of sign language.

B. “Freedom of Learning”

Education and Culture Minister Nadiem Makarim has announced for

educational policy programs called “Merdeka Belajar” or freedom of learning. One of
the policies is the termination of the national examination (UN) starting in 2021. The
implementation of national exam in 2021 will be changed. To the Assessment of
Minimum Competency and Survey of Character, which consist of the ability of
language (literacy), the ability of math (numeracy), and the strengthening of character
education.
Assessment usually takes place in the end of a school period. Starting in 2021,
students will be required to undergo a character test at the mid-point of each of their
school level: fourth grade in elementary school, and second grade in junior high
school and senior high school. An early assessment will allow teachers to remedy
poor performance by the students before graduation. The assessment will focus on the
student’s ability to apply their reading, mathematics, and science skills in real life
situations.
Nadiem said the new system will be based on international practices such as
the Program for International Student Assessment (PISA). According to the President,
the assessment will be provided for teachers and schools in order to improve the
quality of education. In addition to that schools failing to meet the standards will be
supported by the Government to improve it. On that occasion, he added “if the policy
could improve the country’s quality of education, the Government will continue to
carry out the program.
Seeing that the covid-19 pandemic that’s happening now, In a bid to protect
students across the country amid the ongoing coronavirus pandemic, the Government
 has cancelled this year’s national exam. According to Nadiem, national exam may
pose enormous health risks to eight million students and their families.
President Jokowi has said that the cancellation of the 2020 National Exams
and Indonesia’s ranking in the Program for International Student Assessment (PISA)
could be a momentum to reformulate the national educational evaluation system as
well as standard for primary and secondary education.
Indonesia, according to the President, has participated in seven PISA surveys
from 2000 to 2018 and the PISA survey shows that Indonesia’s education system has
become more inclusive and open in the last 18 years. Based on the findings of the
PISA survey, the President convey that there are three main problems; First, the large
percentage of low-achieving students. Second, the high percentage of students who
failed to get promoted to the next grade. And the last is the low student attendance.
The President further said the PISA survey findings required comprehensive
improvement measures in terms of regulations, budget, infrastructure, school
management, teacher’s quality and administrative burden on teachers. The
administrative burden on teachers will discourage them from focusing on teaching
and learning activities. On that occasion, the President also ordered the improvements
in learning process, especially the use of information and communication technology.
The President also ordered the improvement in student learning environment,
including by providing learning motivation and overcoming bullying at schools.

II. Goverment Policy about Education is Investment

A. Indonesia's government encourages private investment in education

Projected to have a workforce of 65m young adults by 2035, the country is

turning its focus to education to better ensure its citizens will be prepared to perform
in an increasingly competitive economy. Indonesia is the world’s fourth-most-
populated country and guaranteeing that everyone has access to quality education is
no easy feat, especially considering the many, not least, infrastructural challenges
posed by its archipelagic terrain. While the construction of new school facilities
continues to receive investment, authorities are simultaneously prioritising
improvements to curriculum and teacher performance to boost the overall quality of
public education.
Indonesia has 3m teachers and 50m students studying at more than 300,000
schools nationwide. Schooling is compulsory for children aged seven to 16 and there
are three levels to the system: primary, junior secondary and senior secondary. Until
2014 both mandatory and tertiary education were under the remit of the former
Ministry of Education and Culture. However, this body has since been restructured
and changes also made to the former Ministry of Research and Technology, with the
aim of improving the quality and commercial viability of tertiary education across the
board.
The reformed Ministry of Primary and Secondary Education and Culture
(Kemdikbud) oversees mandatory education, while the revamped Ministry of
Research, Technology and Higher Education (Ristekdikti) now manages colleges and
universities. Meanwhile, the Ministry of Religious Affairs ( Kemenag) is responsible
for all religious institutions.
BUDGET: Through a constitutional amendment in 2002 the government
decreed that a minimum 20% of annual budgets – both estimated and revised – is to
be allocated to education. After a thorough consultation period on how to implement
this decree, the target was first met by the government in 2009 and has been
maintained ever since. However, the recent reorganisation of Kemdikbud and
Ristekdikti has had a significant impact on the apportionment of capital between the
two ministries. The budget for Kemdikbud dropped from 4.3% of GDP, or Rp80.7trn
($6.1bn) in FY 2014 to 2.7% of the budget, or Rp53.3trn ($4.0bn) in FY 2015. This
declined further to 2.3% of GDP, or Rp49.2trn ($3.7bn) in FY 2016. However, during
the same period, Ristekdikti funding rose sharply from 0.03% of GDP, or Rp600bn
($45.2m) in FY 2014 to 2.2% of the budget, or Rp43.6trn ($3.2bn) in FY 2015.
Allocation for this ministry then declined slightly to 1.9% of GDP, or Rp40.6trn
($3.1bn) in FY 2016. Funding for Kemenag stood at 3% of the total budget in FY
2015, or Rp60.3trn ($4.5bn), and 2.7% of GDP, or Rp57.1trn ($4.3bn) for FY 2016.
STRUCTURAL REFORM: Until 2016 management of schools was
decentralised, meaning the education ministry gave authority to districts. Management
for the senior secondary school level has since shifted up to the provincial level. For
the next two to three years, the provincial education authorities are expected to
monitor and assess the conditions of senior secondary schools, complete the transition
in management from districts to provinces and determine which areas need the most
support.
DEVELOPING EDUCATORS: Officials in education authorities often do
not have teaching backgrounds, and this can prevent them from being able to identify
shortfalls and thus raise overall standards within the system. Bringing high-
performing educators into supervisory positions could create a trickle-down effect on
curricula and teacher quality, both of which have been identified as priority areas in
need of improvement within the public school system.
PISA PERFORMANCE: Every three years the OECD releases its
Programme for International Student Assessment (PISA) report. The latest survey
took place in 2015 and its findings were published in December 2016. The 2015
programme surveyed 540,000, 15-year-olds from 72 countries, focusing on
mathematics, science, reading and problem solving, to judge how well the students
could apply their knowledge rather than rely on memorisation. The survey assesses
students from both public and private institutions. The 2015 report showed that
Indonesia ranked below the OECD average in the categories of science, mathematics
and reading, behind many of its neighbours, including Malaysia, Thailand and
Vietnam. Results from the past 10 years of PISA surveys have remained consistent;
Indonesia has yet to meet the OECD average for these categories during that time.
ACCESS ISSUES: School enrolment for students aged 13-15 increased from
88% in 2011 to 95% in 2015. However, the country still faces a challenge in retention
and there is a significant urban-rural divide when it comes to access to education and
quality provision. Kemdikbud has also acknowledged the role which gender
inequality continues to play in education access. Indonesia lags behind many of its
ASEAN neighbours in this regard, ranked 88th in the world out of 144 countries,
according to the World Economic Forum’s “Global Gender Gap Report 2016”. While
Indonesia has made improvements in this area at a rate faster than the OECD average,
more can be done to improve girls’ inclusion in education, particularly across the full
range science fields.
PRIVATE EDUCATION: As Indonesia’s middle class expands and
disposable income increases, more parents are opting to pay for private education for
their children. Private schools accounted for 36.17% of the total student body in the
2015/16 school year, up from 29.17% in 1999/2000. While public schools have been
underperforming, private schools continue to offer higher-quality education and
access to stronger teaching. These schools are also leading the way with the
integration of classroom technology, with tablets, smartphone applications and other
devices connecting students to innovative and interactive lessons.

1. School Types and Participation

In all WEI countries, there is variation between and within countries in the
existence of and enrolment in different types of schools and programmes. Schools can
be administered and supported by the government, by private entities, or by a
combination of both. Schools, and programmes within schools, can also be
differentiated according to whether they prepare students for specific jobs and careers
or for study at higher levels of education. These variations can arise from educational
traditions and philosophies, but also from economic constraints on what governments
are able to provide and on policies intended to meet labour market needs.

2. Public and Private Schooling

Public, government-dependent private, and independent private. Institutions
are classified as public if they are controlled and managed directly by a public
education authority or other government agency, or by a governing body, most of
whose members are either appointed by a public authority or elected by the public.
An institution is classified as private if it is controlled and managed by a non-
governmental organisation (such as a religious organisation, trade union, or business
enterprise) or if its governing board consists mostly of members not selected by a
public agency. Private schools are further sub- divided into government-dependent
and independent institutions, the distinction being that government-dependent private
schools receive more than 50 per cent of their core funding from government
agencies.
For the purpose of international comparisons, a distinction needs to be made
between public, government- dependent private, and independent private institutions.
Private schools provide alternative teaching methods and curricula and can help to
serve the diverse needs, interests and abilities of the total student population. Private
schools can also provide incentives to public schools to improve. Private schools
differ both between and within countries in the extent to which they draw on public
and private financial resources.
 3. Secondary and Tertiary Programme Options
In addition to the variety of public and private school options, variety can also
be found in the vocational orientation of schools and in programmes at secondary and
tertiary levels For the purpose of international comparisons, a distinction between
general, pre-vocational, and vocational programmes needs to be made. By contrast
with OECD countries, where vocational programmes tend to predominate at the upper
secondary level, general programmes are more common among WEI countries.

4. General Education for Citizenship

A stable and democratic society is impossible without widespread acceptance
of some common set of values and without a minimum degree of literacy and
knowledge on the part of most citizens. Education contributes to both. In
consequence, the gain from the education of a child accrues not only to the child or to
his parents but to other members of the society; the education of my child contributes
to other people’s welfare by promoting a stable and democratic society.

B. Government Aid

In Indonesia, we might have realize that every children are encouraged to gain at least
12 years of formal education. This is one of government’s policy in encouraging education.
However, there are much more than that.
Over the past 15 years, Indonesia has implemented major policy reforms to improve
education. These include a constitutional mandate to spend 20 percent of the national budget
on education, decentralizing some functions of the education sector to the district and school
level, and implementing the Teacher Law in 2005. The government has also increased
resources to schools with the School Operational Assistance Grant (Bantuan Operasional
Sekolah, or BOS) program and supported parents enrolling their children in schools through
the Smart Indonesia Program (Program Indonesia Pintar, or PIP).
Through these reforms, Indonesia’s education expenditures have increased
significantly in the past 15 years. By 2018, spending on education was greater than any other
sector, approximately meeting the 20 percent target of total government expenditure.
However, since the national budget is 15 percent of GDP, this education expenditure is only 3
percent of GDP, one of the lowest in the region.
 While the reach of Indonesia’s education system has increased, major implementation
challenges persist. Between 2001 and 2017, enrolment increased by 23 percent, or 10 million
students, accompanied by only a modest increase in quality. The country’s Program for
International Student Assessment (PISA) scores rose during this period, but at its current pace
Indonesia will only reach average Organization for Economic Co-operation and Development
(OECD) country scores in 60 years.

III. Conclusion

Education in every sense is one of the fundamental factors of development. No

country can achieve sustainable economic development without substantial investment in
human capital. Education enriches people’s understanding of themselves and world. It
improves the quality of their lives and leads to broad social benefits to individuals and
society.This is the reason why education is today largely paid for and almost entirely
administered by governmental bodies or non-profit institutions. A stable and democratic
society is impossible without widespread acceptance of some common set of values and
without a minim degree of literacy and knowledge on the part of most citizens. Education
contributes to both. In consequence, the gain from the education of a child accrues not only to
the child or to his parents but to other members of the society; the education of my child
contributes to other people’s welfare by promoting a stable and democratic society.
This is why education has always been not just the concern of every individual and
families, but an economy as a whole. Government plays a huge role in an economy’s
education system. The role assigned to government in any particular field depends on the
principles accepted for the organization of society in general.A governmental body could
offer to finance or help finance the training of any individual who could meet minimum
quality standards by making available not more than a limited sum per year for not more than
a specified number of years, provided it was spent on securing training at a recognized
institution.
In any developing economy, government would want each and every one of their
people to gain a sufficient and most importantly equal distribution of education. However,
differences among families in resources, both physically and economically, are results of the
different policy that has been followed. Government subsidy on certain kinds of education are
one of the examples of government interventions on education. These are usually provided
for those with families who are economically in struggle in paying for education.
 Ultimately, Education has crucial role in developing the country since the economic
growth is affected by the productivity of human. As we know, one of the important indicators
of economic growth is the unemployment rate. Therefore, the higher productivity human
capital the country has, the easier for the country to overcome the unemployment rate issue.

IV. References :

1. https://theconversation.com/riset-dampak-covid-19-potret-gap-akses-online-belajar-dari-
rumah-dari-4-provinsi-136534
2. https://setkab.go.id/en/govt-to-reformulate-standards-in-primary-and-secondary-
education/
3. https://jakartaglobe.id/news/nadiems-first-big-surprise-abolish-national-exam
4. https://oxfordbusinessgroup.com/overview/back-school-government-wants-work-private-
investors-overhaul-sector
5. https://www.researchgate.net/publication/
24116294_The_Role_of_Education_in_Economic_Development_A_Theoretical_Perspective
6. https://www.edchoice.org/who-we-are/our-founders/the-friedmans-on-school-choice/article/the-
role-of-government-in-education/
7. https://www.worldbank.org/en/country/indonesia/brief/improving-teaching-and-learning-in-
indonesia