EDUCATION AS LONG TERM INVESTMENTS

Professor Toshiko Kinosita suggested that human resources in Indonesia is still very weak to support the development of industry and economy. The reason for the government so far have placed education as the most important priority. Not placed education as the most important priority for the Indonesian people, ranging from the ordinary to politicians and government officials, only oriented to the pursuit of money to enrich themselves and never think long (Kompas, May 24, 2002).

Opinion Professor of Waseda University Japan is very interesting to study given the current Indonesian government began to look at education as a long term investment, after this long neglected education. One indicator is already approved by the Assembly to prioritize the educational budget of at least 20% of the state budget or the budget. This step is an early awareness of the importance of education as pangjang term investment. At least there are three reasons for prioritizing education as a long term investment.

First, education is a tool for economic development and not just economic growth. In the praxis of modern management education, one of the five functions of education is the technical-economical functions of both the individual level to global level. Technical-economical function refers to the contribution of education to economic development. For example, education can help students to gain knowledge and skills necessary to live and compete in a competitive economy.

In general, proved that the more educated a person is their income level, the better. This is possible because educated people are more productive when compared with the uneducated. One's productivity is due to its technical skills gained from education. Therefore one of the goals to be achieved by education is to develop life skills. This is exactly the direction of competency-based curriculum, life skill education and broad based education that was developed in Indonesia in recent years. In the United States (1992) doctoral educated person on average earnings per year of 55 million dollars, 40 million dollar master, and scholar 33 million dollars. Meanwhile, further education graduates berpanghasilan only an average of 19 million dollars per year. In the same year this structure also occurs in Indonesia. For example, on average, between rural and urban areas, the income of university graduates per year 3.5 million dollars, academy 3 million dollars, 1.9 million high school, and elementary schools only 1.1 million rupiah.

The adherents of human capital theory argues that education is an investment in human resources that give monetary benefits or non-monetary. The benefits of non-meneter of education is to obtain better working conditions, job satisfaction, efficiency of consumption, the satisfaction of enjoying retirement and the benefits of living longer because of the increased nutrition and health. Monetary benefits are economic benefits in the form of additional income a person who has completed certain educational level education graduates compared with income below it. (Walter W. McMahon and Terry G. Geske, Financing Education: Overcoming inefficiency and Inequity, USA: University of Illinois, 1982, h.121).

Educated human resources will become the main capital of national development, especially for economic development. More and more people are educated the more easier for a country to build their nation. This is due to have mastered the skills, science and technology by its human resources so that the government move more easily in national development.

Behind Education

Second, investments in education to give the return value (rate of return) is higher than the physical investment in other areas. The return value of education is the ratio between the total cost incurred to finance education with a total revenue to be obtained after one pass and enter the world of work. In developing countries generally show the return value of educational investment is relatively higher than on physical capital investment of 20% compared to 15%. Meanwhile in developed countries the return value of educational investment is lower than the physical capital investment is 9% compared to 13%. This situation can be explained that a number of well-educated workforce is skilled and expert in developing countries are relatively more limited in number compared with the requirement that higher wage levels and will cause the return value of education is also high (Ace Suryadi, Education, Human Resources Investment and Development: Issues , Theory and Applications. Hall Book: New York, 1999, h.247).

Education investment options should also consider the level of education. In Asia, the return value of social education on average by 27%, 15% secondary education and higher education 13%. Thus it can be argued that the higher one's education level is less social benefits. It was clear that basic education provides the greatest social benefits among other educational levels. Looking at this reality, the allocation of education funding structure should be reformed. In 1995/1996 for example, cost allocation for education from the Indonesian government Elementary School is the smallest per-student average of only sekirat 18,000 rupiah per month, while the cost of education per student at the State University received an allocation of 66,000 rupiah per month. Director General of Higher Education, Satrio Sumantri Brojonegoro once argued that the allocation of funds for higher education the country 25 times more than primary education. This suggests that more education costs are allocated to higher education precisely because of inefficiency and lack of individual benefits only provide benefits to the community.

Reform of the allocation of the cost of education is important given that some studies showing that the majority who enjoy education at state universities is derived from the community can afford. So in addition to education funding model is based on education level (high vs. base) is also based on the economic strength of the student (poor vs. rich). This means that students at state universities who come from wealthy families should be charged the cost of education is more expensive than those from poor families. Models are offered in accordance with kritetia equity in education funding as outlined Unesco.

That is why Professor Kinosita suggest that what was needed in Indonesia is not a basic education and advanced education. The process of education in basic education setidaknnya rests on four pillars of learning to know, learning to do, leraning to be and learning to live together can be achieved through the eight basic competencies of reading, writing, listening, menutur, calculate, analyze, memorize and menghayal. The national education budget should be prioritized to alleviate the basic education of 9 years and if necessary be extended to 12 years. Besides basic education should be "completely" freed from all charges. It said "really" because during this 9-year compulsory education launched by the government is not free. If all primary age children are served at no charge to get an education, then education budget allocated to the next level of education.

Function

Non-Economic

Third, investment in education has many functions in addition to the technical-economic functions of social-humanitarian functions, political functions, cultural functions, and educational functions. Socio-humanitarian function refers to the contribution of education to human development and social relations at various levels of social groups. For example at the individual level of education helps students to develop themselves psychologically, socially, physically and helps students develop their potential as fully as possible (Yin Cheong Cheng, School Effectiveness and School-Based Management: A Mechanism for Development, Washington DC: The Palmer Press, 1996, p.7).

Political function refers to the contribution of education to political developments at different social levels. For example at the individual level, education helps students to develop attitudes and positive citizenship skills to train citizens the right and responsible. Educated people are expected to better understand their rights and responsibilities so that increasingly demoktratis insight and behavior. Also educated people are expected to have the awareness and responsibility towards the nation and the country better than the less educated.

Function refers to the contribution of cultural education and cultural development at the turn of the different social levels. At the individual level, education helps students to develop their creativity, aesthetic awareness and to socialize with the norms, values and social beliefs that good. Educated people are expected to be better able to appreciate or respect for difference and plurality of cultures that have a more open attitude towards cultural diversity. Thus more and more educated people are expected to be easier the next occurrence of acculturation will be the integration of national or regional culture.

The function of education refers to education contributions to the development and maintenance of education at different social levels. At the individual level of education helps students learn how to learn and help teachers how to teach. Educated people are expected to have awareness for lifelong learning (life long learning), always feel left out information, science and technology that continues to be encouraged to go forward and keep learning.

Among the general public also apply the general opinion that the more educated the better one's social status and respect communities of people who were better educated than the less educated. Educated people are expected to use his thoughts are oriented on long-term interests. Educated people are expected to have no inclination orientation of the material / money especially to enrich themselves.

Conclusion

It is clear that investment in education is not merely to boost economic growth but, more broadly of economic development. During the new order we are always proud of the high economic growth, but high economic growth was devastated because it is not supported by the presence of an educated human resources. New Order delivered many rich people who do not have the honesty and fairness, but many more poor delivery. Finally, the economic growth enjoyed by some and with a very large degree of dependence.

Economic development will be achieved if human resources has ethical, moral, sense of responsibility, sense of fairness, honesty, and realize the rights and obligations of all it is a good indicator of educational outcomes. It is time for this country to reflect on how to plan a good education system to support economic development. Besides education as well as a means of unifying a nation that is currently being threatened with disintegration. Through education functions on the socio-humanitarian functions, political functions, cultural functions, and educational functions then this country can be put back together. From the above it appears that education is a vehicle that is very important and strategic for economic development and national integration. In short education is a long term investment that should be the top choice.

If so, what direction this country education should be taken? How to plan a good education system? Let us think together.