Indonesia must work hard to improve the quality of its human resources, with its 2017 Human Capital Index score below the world average.
The 2017 Human Capital Index was announced by the World Bank on Thursday, Oct. 11, at the 2018 IMF-WB Annual Meetings in Bali, where the value of the Indonesian index was 0.53 while the world average was 0.57. Indonesia’s rating in the 2017 Human Capital Index has risen from the 2012 rating of 0.50 and is the highest among countries of the same income group. Moreover, Indonesia\'s Human Capital Index is lower than expected for the country\'s income level.
This index is important because it measures five indicators: the chance of life up to the age of five, expectation of children’s schooling, harmonized school exam scores to measure the quality of education, life expectancy level at the age of 15-60 years and the number of stunted children. The five are considered determinative factors to predict the productivity of a child when they reach 18 years of age, their ability to adapt to employment, and their level of income.
Of the five indicators, Indonesia must work hard to improve education and health. Even though the average length of schooling in Indonesia is 12.3 years, when harmonized with test scores it turns out that the average quality of Indonesian children\'s academic achievement is equivalent to only 7.9 years of schooling.
With regard to health and nutrition, 34 percent of Indonesian children are stunted. Stunted growth reflects malnutrition, putting children at risk of experiencing intellectual disabilities and physical limitations for the rest of their lives.
We need to address the Human Capital Index report seriously, especially when linked to demographic bonuses. This report should be the basis for the government to arrange investment strategies and policies for social infrastructure development, especially health and education, after physical infrastructure.
Developing countries have a great opportunity to make the jump to become developed countries when they get demographic bonuses because the number of people of productive age is greater than those who have not entered productive age or are no longer productive. The productive age population becomes a useful driver of the economy and development if it has high productivity. In the experience of developed countries, it can only be achieved if the population has good quality education and health.
In order to achieve superior human resources, development must be long-term with a healthy goal for life. It starts from pregnant women, who must get adequate and balanced nutrition, children from birth to age 18 also must get adequate and balanced nutrition, decent environment and housing and quality education.
The World Bank\'s report advises the government to be more directed and coordinated in preparing its human development strategies. We want the demographic bonus to provide as much benefit as possible and make Indonesia a prosperous developed country in accordance with the ideals of independence.