The Role of Private Sector in Developing Human Capital Trough Education (Study Case: Masjid Terminal School Depok)

UNIVERSITAS INDONESIA

THE ROLE OF PRIVATE SECTOR IN DEVELOPING HUMAN CAPITAL TROUGH EDUCATION
(Study Case: Masjid Terminal School Depok)

PAPER

Authorized by:
Pyan Putro Surya A. M.
1206255854

Faculty of Economics
Universitas Indonesia
Depok
2013
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I who undersigned in the following confirm that the work presented in this paper,
Title : The Role of Private Sector in Developing Human Capital Trough Education (Study Case: Masjid Terminal School Depok)
Course : Economics Development
Has been solely composed by myself, and describes my own work, unless otherwise acknowledge in the text. There are no other party work which has been used without disclosing its sources.
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Pyan Putro Surya A. M
1206255854

Education can add to the value of production in the economy and also to the income of the person who has been educated. But even with the same level of income, a person may benefit from education—in reading, communicating, arguing, in being able to choose in a more informed way, in being taken more seriously by others and so on.
—Nobel laureate Amartya Sen, Development as Freedom, 1999

The Role of Private Sector in Developing Human Capital trough Education (Study Case: Masjid Terminal School Depok)
Introduction
Since its indepence in 1945, Indonesia keeps developing until now. along that time Indonesia faced some crisis and did survive. Nowadays, as a developing country, Indonesia has high enough economic groeth. With about 6% along this past five years Indonesia deserves to counted as new big economy power in the world. However this growth couldn’t answer a lot of economic problem in this archipelago country. There are still many economic aspects that should be fixed, let say, inequality, unemployment, infrastructure. Moreover Indonesia should improve its human capital as the prime mover of economy’s wheel.
Human Development Index (HDI) shows the quality of human resources in Indonesia. The HDI represents a push for a broader definition of well-being and provides a composite measure of three basic dimensions of human development: health, education and income. Between 1980 and 2012 Indonesia 's HDI rose by 1.3% annually from 0.422 to 0.629 today, which gives the country a rank of 121 out of 187 countries with comparable. This rank is still below neighbour countries such as Singapore(18), Malaysia (64), Thailand (103), and Brunei (30).
Education is the most important things in human capital. It determines human skill as factor of production. But Indonesia has not been able yet to provide proper education to society at any level. UUD 1945 that guaranted education to people doesn’t work as it should be. It’s hard for low income people to access education facilities. No wonder if there are still many children along crowded street. The inadequancy of present infrastructure and system is the factors that has a heavy bearing in keeping several children away from school. This genereal condition is mirrored in daily life of Depok. The city with 1.6 milion citizen has the same problem about human capital. Because it is near with Jakarta, Depok growth so fast. But its growth doesn’t accomodate all level of society. Depok has . However there are still many beglars and street children who feel hard to reach proper education.
People around Depok Terminal live in low-income society. Most of them work as small seller, driver, smelther labor, housekeeper, or other informal job. They spend thier low income to fulfill basic needs of living in high living cost city such as Depok. It is hard for them to reach education and helath for their welfare. The more important is to find money for food and survive untill the next day.
This condition reveals toughtfulness from Mr Nurrokhim. He established Master (Masjid Terminal) School under an organization named YABIM (Yayasan Bina Insan Mandiri) in 2000. The school provide opened education program to children around Depok Terminal from kindegarden, elementary school, junior high school, until senior high school. It opens paket A, paket B, and paket C program to get national certificate. Master school does not only open at daylight, it also provide night class for senior children. This flexibility gives oporunity for children to attend the school.
Without waiting respon from government, Master school try to solve education problem in Depok, especially for street children around the terminal. YABIM has no much fund to run Master school, however the young generation who become volunteer think that they have responsibility to care each other as human. They have a role to develop human capital trough education. Human Capital Development
There are several measurement of economic development of country. The common one is GDP (Gross Domestic Product), market value of final goods and services produced within a country in a given time period. We also know similar measurement such as GNP (Gross National Product) wich cunduct GDP from nationality aspect instead of geographical side. Those measurments only capture individuals income or expendute. However there is a measurement concerning on quality of individuals which is called Human Development Index. It is based on concept human capital. Each year since 1990 the Human Development Report has published the Human Development Index (HDI) which was introduced as an alternative to conventional measures of national development, such as level of income and the rate of economic growth.
Human capital is productive investments embodied in human persons, including skills, abilities, health, and locations, often resulting from expenditures on education, on-the-job training program, and medical care . As an investment, human capital is affected by education and health which have close relationship. On one hand helath is important factor in school attendance and in the formal learning process of a child. A health at any point during the working life make sure the education investment is worthful. On the other hand, greater education capital may improve the returm to investment in health, because many health programs rely on basic skill often learned in school.
Education and health are basic objectives of development; they are important ends in themselves. Health is central to well-being, and education is essential for a satisfying and rewarding life; both are fundamental to the broader notion of expanded human capabilities that lie at the heart of the meaning of development. At the same time, education plays a key role in the ability of a developing country to absorb modern technology and to develop the capacity for self-sustaining growth and development. Moreover, health is a prerequisite for increases in productivity, and successful education relies on adequate health as well. Thus both health and education can also be seen as vital components of growth and development—as inputs to the aggregate production function. Their dual role as both inputs and outputs gives health and education their central importance in economic development.1

As written in UUD 1945 education has been guaranted by government. But the fact is not appropriate with the expectation. There are still many children in Depok who can’t go to school, especially around Terminal Depok. They think that spending time at street getting money is better than having class without any future certainty.

West java where Depok is, has 0,711 point of HDI. This point make West Java ranks at 17 from all province in Indonesia2 and same with another developing country such as Honduras. Another data shows that only 35,75% over 10 ages population in Depok who have at least Junior High School certificate. In group age of 10-19, BPS counted that there are 329.158 children. However, those big number aren’t absorbed enough in formal class. Bappeda Depok shows that only 175.266 children in SD, 53721 children in SMP, 47830 children in SMA and SMK. These data means that people in Depok are not formally well educated enough. West Java, especially Depok, should improve its human development.
Basic education is important, but it is not enough to fulfill job requirement nowadays. Many firms or offices rise their minimum level education requirement to get the job, which usually determine at least finish undergraduate program. When Master children just starts to reach basic education, jod demands people who have undergraduate certificate with bachelor title. They could’t comply with the request of formal job. This convergence gap make them isolated in informal area, or even become unemployee. And the worst case, they can not come out from poverty circle.
Master School and Private Sector Role
Masjid Terminal (Master) school is located behind Depok Terminal. Children who attend the school are from grassroot economic background. The school doesn’t run along the day, so they can work in part time job to help thier parent or jus to have additional money. Even some of them become panhandler and singing beggar. Before Mr Nurrokhim run the program, their awareness on education was very bad. They don’t have long term thinking to use education as investment that can be enjoyed in the future.
Master school provide opened formal education for children around Terminal Depok. It is established under non-profit organization called YABIM. No body pays for the education fee. No wonder if the facilities are very limited. The buliding are built from container. The teachers are recruited as volunter. Most of them are still young. Their activity portion in Master school are limited because they have prior activity wheteher working or studying in university. However the school is running well.
YABIM provides not only education but also several program that make conducive situation in learning activity. There are 5 division running in YABIM ehiches are education, health, advocacy, facilities, and mentoring. The core of YABIM activity is education trough Master school, however it will not run well without support from anpther division. For example, street children can not suddenly join in the learning class. Mentoring division provide bridging program to smoothen their adaptation from street life to educated environment.
With progressive growth, world of job request high educated poeple to be employed. Master that only focus on providing basic education faces restriction to help the children. The education given is not enough for the children to pass university enrollment test. For year 2013, the test (SBMPTN) is attended by 600 thousand applicants. However there are only about 110 chairs provided from state Universities. No wonder if there are so many learning intstitute that give additional informal education with high price. This tight competition withdraws Master children will to get high level education in state university. Moreover they lack of information about the way to enroll and about compatible major that they want. They are also shadowed by apprehensive of high cost of high level education.
Knowing this condtion, students from Faculty of Economics Universitas Indonesia (FEUI) helds a program called Master FEUI. It is an informal additional learning course to help Master children to prepare national examination and university enrollment test. Its main goal is to increase street children partitipation in high level education. All the volunteer teacher are FEUI’s student. They dedicate their time, power, and thought to help Master children.
People called Master as alternative-flexible school. There are 1467 children who attend Master school which only has about one hectare area. In one year, Master helds National Examintaion 5 times for junior high school and 3 times for senior high school. Beside the formal school, Master also provide extracurriculer activities. The children should have some skill that can directly applyed to support their life, especially for working stand alone.
Conclusion
As written in UUD 1945 article 31, eduation should be guaranted by government. But the real condition doesn’t show as what had been planned. Viewing on street, there are many children who still can’t attend school. Government doesn’t show its seriousness to solve education problem in Indonesia. Fluently changing curriculum and fail on helding national examination give no affect in encouraging street children to go to school.
Government provide subsidy to school trough Bantuan Operasional Sekolah program. Trough this policy, children may enjoy basic education with low fee, even free. However, the problem faced by street children is not only about school fee. For street children, attending in school means they couldn’t work to find money for live. Their opportunity cost to attend school is too high. Facing this condition, YABIM try to give solutoin trough Master School. The founder, Nurrokhim, strugle to provide missing problem that is not treated by govewrment. As a human, he think that everyone have responsibility to care each other. We can’t only blame government and let the human capital trouble happens unsolved. Eventhough private sector and society doesn’t have authority to change education system and policy, they still could give contribution with thier competence. What Nurrokhim started is developing with support from young generation. The youth that is mostly consisted undergraduate students or fresh graduates help the program by being volunteers. Especially for FEUI’s students who run additional informal adeucation, Mester FEUI. The program had resulted 100% pass in Nastional Examination (UN) from 2005 until 2013. It also bear 13 children pass state university enrollment. Master also attracts many corporations to apply their CSR (Corporate Social Responsibility) in Master School. They try to give more necessary facilities such as classroom, library, computer, and scholl equipment. Some of them also provide scholarship Master student in high level education. From Master, private sector may take a role to in developing Depok’s human capital trough educcation.
Works Cited
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Cited: Depok, B. (2013). Kota Depok Dalam Angka. Depok: Bappeda. Hayami, Y., & Godo, Y. (2005). Development Economics. New York: Oxford University Press. Irfan, M. (2011). Chamber of Inovation: Kemudahan Pendidikan untuk Anak Jalanan Kota Depok. International Conference of Islamic Leadership 2 (pp. 337-346). Kuala Lumpur: University Sains Islam Malaya. Mankiw, N. G. (2010). Macroeconomics. New York: Worth Publisher. Parkin, M. (2011). Economics. New York: Pearson. Sugeng. (2012, 12 3). All About Master and YABIM. (P. Muchtar, Interviewer) Todaro, M. P., & Smith, S. C. (2012). Economic Development. Chicago: Addison-Wesley. UNDP. (2013). National Human Development Report for Indonesia. Retrieved December 14, 2013, from UNDP website: http://hdrstats.undp.org/en/countries/profiles/IDN.html White, C. (2009). Understanding Economic Development. Northampton: MPG Books Group. Wilson, R. (2002). Economic Development in the Midle. New York: Routledge.