DIFINITION AND MEASUREMENTOF HUMAN CAPITAL

Understanding and measuring human capital. Human capital theory is a thought which considers that humans are a form of capital or capital goods as other capital goods, such as land, buildings, machinery, and so forth. Human capital can be defined as the sum total of knowledge, skill, and intelligence of the people of a country.
These investments (human capital) is done in order to obtain higher levels of consumption in the future. Despite the controversy regarding the execution of human resources as human capital have not been resolved, but some classical economists and neo-classics like Adam Smith, Von Threnen, and Alfred Marshall agreed that human capital consists of skills acquired through education and useful for all members of society. Skills is a major force for economic growth.
In addition there is still disagreement about the concept of human capital, there are also disagreements about the measurement. According to Mary Jean Bowman's dissent is based on two things: First on the issue of whether capital (human capital) as a stock (store) or as an input to production. Second, with regard to weighting. In this weighting seen any efforts to treat the quantitative measures and qualitative in units of human capital. But there is no consensus on the treatment of quantitative measurement in human capital. A pendididikan size are realized in the labor force can be used to change the quality to quantity. Educational components and then into specific variables that can be compared with physical capital, and the size of the labor force in economic growth. As a consequence, the unit of capital is defined in a limited sense, namely in the labor force, which can be measured in several ways, among others are:
1. Number of school years
2. Efficiency-equivalence units
3. Base-year lifetime earned income
4. Approximations to real cost base year
5. Current approximations to real cost
There are some problems by measuring the formation of human capital approach to cost basis. Measures of net capital formation encountered some difficulties, among others.
1. With regard to the problem of the complexity of the relationship between consumption and investment.
2. Is related to how to treat unemployment in estimating the opportunity cost.

Human Resource Development
That there are three kinds of resources, namely natural resources (natural resources), human resources (human resources), and capital resources (capital resources). What is discussed here is a human resources emphasis on human capital (human capital .) The objective of human resource development is to improve the quality and use. About this destination Statement presented briefly in Budapest and the Jakarta Plan of Action. There are two main aspects in the development of human resources, namely the micro aspect, namely that relating to personal development, and macro aspects, with respect to the means, facilities, and climate with regard to personal development.
Development effort is done through education and training. Education and Training conducted with the intent to establish, prepare, maintain, and enhance human capabilities (learners) and their usage. Therefore, the development was done at the expense of current consumption pasa ongoing development and is intended to obtain a higher level of consumption in the future, then in essence these activities is an investment, ie investment in human resources (human capital). So education and training has an important role, not only increase knowledge, but also increase work productivity. As human capital, then education is meant here is education pursued after compulsory school.
Education and training can be done outside of school, including through on-the-job training, institutional training, apprenticeship traning, and up-grading training. On the job training provided to their official status as employees. There are two forms of training that is in-service training and pre-service training. Training institutions (institutional training) is done through the organization and development of an integral system as part of the national education system. Delivery is usually done by universities. Training the technical level and training level of workers' hands. Then the apprentice training. The training is given to those who will be appointed employees / workers. Furthermore, upgrading training. The training is conducted to enhance knowledge, skills and intelligence of those who already have a specific task.
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1. Improving the quality of education can be implemented by setting goals and standards of educational competence through a national consensus between the government and the whole society. Standards of educational outcomes might be different between schools and between regions will generate national competency standards in the levels of minimum standards, normal (mainstream) and seeded.
2. Improved efficiency in the management of education leading to school-based education management, by giving greater confidence to the schools to optimize the resources available for meeting the educational goals that are expected
3. Increased relevance of education leading to community-based education. Increased participation of parents and the community at the policy level and operational level through a committee or school board. This committee is comprised of principals, senior teachers, parent representatives, community leaders and student representatives. The role of this committee include planning, implementation, monitoring and evaluation of school work program.
4. Equitable education services leading to an equitable education. This is regarding the implementation of the education funding formula fair and transparent, equitable distribution of quality education efforts in the presence of minimum competency standards and equitable educational services for students at all levels of society.
Compulsory Basic Education

Input, Process, and Results of Education
National education goals at the macro level is the realization of civil society as a nation and people of Indonesia with a new order of life in accordance with the mandate of the proclamation of the Republic of Indonesia through the education process. New Indonesian society has the attitude and insight of faith and high morals, freedom and democracy, tolerance and human rights menunjung and discerning and global perspective.
National education goals in micro was the realization of new human individuals who have the attitude and insight of faith and high morals, freedom and democracy, tolerance and respect for human rights, mutual understanding and global perspective.
Mission macro long-term national education is toward civil society. In the field of educational administration educational implementation of an autonomous organization, adaptability and broad but flexible, be open and oriented to the needs and interests of the nation. Balancing authority and community participation has evolved naturally. Education has held a vision of global community life, has a national commitment and act locally leads to excellence, and make the institution as a center of civilization.
Micro long-term educational mission is to prepare individuals of Indonesian society towards a civil society. Education produces individuals who are independent, faithful and devoted to God Almighty, virtuous, skilled technology and capability to act socially. Education curriculum implemented in the open so it can meet the needs of virtual and real. Education produces exemplary man with vision, commitment and discipline.
Relevance, Efficiency, Quality, Equity, and Education Policy
2. Children are the focus for the hopes of the nation, because the child is the next generation. In order for children to become the next generation who have the potential of a strong human resources, the growing development should be running optimally. And this is where the role of education.
3. Children and the future is a unity that can be realized to form a generation that needed by the nation, especially nations that are building. Increased skills, mental and moral development must be increased so did the other aspects.
4. Human quality is powerful, reliable and superior to be prepared by education, for support of livelihood that is being pursued. Superior quality in this educational process, in addition to having the characteristics of such enduring devotion to Almighty God, honesty, noble character, must be coupled with the tenacity, persistence, competitiveness, independence, courage to solve problems and deal with reality, and diligent and work hard too highly disciplined.
5. Education is a cultural process to increase the price and the dignity of the nation last a lifetime implemented within the family, school and community. Therefore, education is a shared responsibility between families, communities, and government.