Background

Indonesia has launched Vision of Indonesia’s Golden Generation 2045 as the

ambitious goals to have a resilience and competitive human capital. To achieve this,
the development should start with investing in human capital. Therefore, human
capital investment is critical, as it is one of the four pillars of Indonesia’s Golden
Generation 2045, namely: high qualified human resources who mastery of science
and technology, sustainable economic development, equitable development, and
advance national security and good governance.
In line with this, the recent annual meeting of the IMF-World Bank in October 2018
in Bali raised about the importance of human capital in economic development. At
the same time, the World Bank launched the Human Capital Index (HCI), which
emphasizes the importance of capital investment in human resources in order to
build the next resilience generation. This index is expected to enhance human
development index (HDI), which has been routinely issued by UNDP and used until
now.
Table 1. Human Capital Index Indonesia Compared to the Global
and Asia-Pasific by Gender, 2018

Scope Man Woman Total

World 0.56 0,59 0.57
Asia-Pasific 0,60 0,63 0.61
Indonesia 0,52 0,55 0,53
Source: https://databank.worldbank.org/data/download/hci/HCI_2pager_IDN.pdf

Human Capital Index or HCI measures the amount of human capital that a child born
today can expect to attain by age 18. It conveys the productivity of the next
generation of workers compared to a benchmark of complete education and full
health. five indicators: the probability of survival to age five, a child’s expected years
of schooling, harmonized test scores as a measure of quality of learning, adult
survival rate (fraction of 15-year olds that will survive to age 60), and the
proportion of children who are not stunted. A country can use these indicators to
assess the extent to which the economic value is lost due to human capital gap.
With a population of 264 million people and a GDP per capita amounted to
USD11,189, Indonesia including lower middle-income countries. Indonesia in 2018
reached a score of 0.53. This score is better than the average score of middle-income
countries (0.48), but far below the average score countries of Asia-Pacific (0.62), and

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 still below the world average (0.57) which put Indonesia is ranked 87th out of 157
countries.

Human capital consists of the knowledge, skills, and health that

people accumulate over their lives, enabling them to their potential
as productive members of society.

Table 2. Human Capital Index and Components, Lower-Middle-Income Countries

in Asia Pacific Region, 2018
Learning-
Probability of Expected % of Children
Country Harmonized Adjusted Adult
Survival to Years of Under-5 Not HCI
Name Test Scores Years of Survival Rate
Age 5 School Stunted
School
Lao PDR 0.94 10.8 368 6.4 0.67 0.81 0.45
Papua New
0.95 8.2 358 4.7 0.50 0.78 0.38
Guinea
Timor-Leste 0.95 9.9 371 5.9 0.50 0.85 0.43

Myanmar 0.95 9.9 425 6.7 0.71 0.81 0.47

Kiribati 0.95 11.6 383 7.1 .. 0.81 0.48

Vanuatu 0.97 10.6 356 6.1 0.72 0.87 0.47

Cambodia 0.97 9.5 452 6.9 0.68 0.83 0.49

Indonesia 0.97 12.3 403 7.9 0.66 0.83 0.53

Philippines 0.97 12.8 409 8.4 0.67 0.80 0.55

Solomon
0.98 9.2 362 5.3 0.68 0.86 0.44
Islands
Mongolia 0.98 13.6 435 9.4 0.89 0.79 0.63

Vietnam 0.98 12.3 519 10.2 0.75 0.88 0.67

Source: WDR 2019 team

HCI Indonesia with a score of 0.53 (up from 0.50 in 2012), which means that a child
born in Indonesia today will be 53 percent more productive when he was growing up if
she she enjoyed complete education and full health. This score is an index that is built
on the following conditions:
a. Probability of Survival to Age 5. 97 out of 100 children born in Indonesia survive to
age 5.
b. Expected Years of School. In Indonesia, a child who starts school at age 4 can expect
to complete 12.3 years of school by her 18th birthday.

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 c. Harmonized Test Scores. Students in Indonesia score 403 on a scale where 625
represents advanced attainment and 300 represents minimum attainment.
d. Learning-adjusted Years of School. Factoring in what children actually learn,
expected years of school is only 7.9 years.
e. Adult Survival Rate. Across Indonesia, 83 percent of 15-year olds will survive until
age 60. This statistic is a proxy for the range of fatal and non-fatal health outcomes
that a child born today would experience as an adult under current conditions.
f. Healthy Growth (Not Stunted Rate). 66 out of 100 children are not stunted. 34 out of
100 children are stunted, and so at risk of cognitive and physical limitations that can
last a lifetime.
In 2017, HCI Indonesia was lower than expectations of appropriate income level
(Figure 1). In fact, Vietnam with lower incomes were able to have a much higher HCI.
Discussion on the Human Capital Index more often focus only on the importance of
education and productivity, but rarely addressed the contribution of the health sector.
In fact, when investment in the health sector began in the early years of life and is
maintained through the life cycle, it will set a strong foundation to build resilience and
competitive human capital of the country.

Picture 1. Human Capital Index vs GDP Per Capita, Indonesia, 2017

HCI

Log Real GDP per capita at PPP

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 Table 3. Human Capital Index by Gender

Component Boys Girls Overall

HCI 0:52 0:55 0:53
Survival to Age 5 0.97 0.98 0.97
Expected Years of School 12.2 12.4 12.3
Harmonized Test Scores 398 408 403
Learning-adjusted Years of
7.8 8.1 7.9
School
Adult Survival Rate 0.8 0.86 0.83
Not Stunted Rate 0.65 0.67 0.66

A demographic projection estimates that Indonesia will obtain demographic dividend

where the increasing the number of productive adults is higher than 60 percent of the
total population, decreasing dependency ratio of productive-age 15-65-year old
relative to the non-productive population (0-14 and 65+ years old) is estimated to
occur in the year of 2025. This period only can be achieved or even be extended
substantially through strategic human capital investments in health, nutrition,
education, labor, and social protection. Importantly, health sector investments should
be diverse, multidimensional and cross-generational – addressing the health risks and
challenges of youth and elderly simultaneously.
Investment in the health systems will ensure that all people have access to quality
health services so that they are healthy and productive throughout their lives - the core
of universal health coverage - a major investment in human capital. The nation should
ensure that people can live a healthy life so that not only can thrive in school but until
they get ready to enter the working world. Health and poor nutrition inhibit people
from reaching their full potential at any point in life. Without a comprehensive capital
and qualified health, 'learning outcome' is expected of education and 'productivity'
while being part of the labor force will not be achieved. Has the state committed to
ensuring sufficient investment in health and quality?
Therefore, a group of postgraduate students of the Public Health Faculty, University of
Indonesia would like to organize a public health policy dialogue with experts and
policymakers to discuss the opportunities and challenges in the health sector in
creating resilient and competitive human capital of Indonesia.

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 Objectives

1. Discuss the importance of investment in human capital through investment in

health and education integrated, comprehensive, and complete that involves all
stakeholders.
2. Build a rationale for advocacy favor of the development vision of health for the
sake of realizing the 'human capital' resilient to policymakers and experts.
3. Encouraging innovation policy studies and economic development and health and
education are aligned towards improving the human capital of Indonesia
advanced.

Outputs

This public health policy dialogue uses a method of "talk show" that is both interactive
and constructive discussions.
The expected outputs are all participants can discuss issues as well as share ideas or
thoughts related to human capital, especially on the human capital investment that
starts from the health sector investment.

Time & Venue

Day, Date : Thursday, May 2, 2019
Time : 08.30 to 13.00
Venue : Balai Sidang Universitas Indonesia, Depok

Theme & Topics

Theme : Investing in Human Capital Health towards SDGs and Beyond
Topics : Urgency of Investing in Health for Human Capital towards Indonesia’s
Golden Generation 2045

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 Speakers
1. Keynote speaker by Sri Mulyani, S.E., M.Sc., Ph.D, Minister of Finance of the Republic
of Indonesia (*)
2. Special Guest: Dr. Timothy Grant Evans, Senior Director of the Health, Nutrition, and
Population of the World Bank Group (*)
3. Dr. Ir. Subandi M.Sc., Deputy of Human Development, Society and Culture, Bappenas
(*)
4. Deborah Comini, Country Representative of UNICEF Indonesia (*)
5. dr. Anung Sugihantono, MKes, Director General of Disease Prevention and Control,
Ministry of Health (*)
6. Prof. Dr. dr. Fachmi Idris, M.Kes., President Director BPJS-Health (*)
7. Prof. DVM. Bakti Wiku Bawono Adisasmito, M.Sc., Ph.D., Professor of FKM-UI (*)
8. Students of the doctoral program in public health sciences, University of Indonesia,
as discussant and summary writers.
*) In confirmation

Moderator & Summary Writers

Students of Doctoral Program in Public Health Sciences, University of Indonesia 2018.

Event Participants

The target number of participants of this policy dialogue is about 300 people.
Participants are the national and local leaders, social and health policy makers, health
planners, public health professionals, health practitioners, students, researchers,
academics, and the public. Attendees of the workshop will receive a seminar kit with a
certificate that accredited by Medical Doctor Association (IDI) and Public Health Expert
Association (IAKMI), meals (coffee break and lunch), and door prizes.

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 Rundown Activity

Event
Time
Activity Speaker
Participant Registration & Coffee
07:30 to 8:30 Committee (Registration)
Break
MC Opens EVENTS
08:30 to 08:35 Safety Induction Convention Center Building Management
08:35 to 08:45 Indonesia Raya (Anthem) dr. Fika Minata Wathan, M.Kes
08:45 to 08:55 Chairman’s Report and Prayer dr. Afdal Andi Abdullah, M.B.A., A.A.K.
dr.Agustin Kusumayati, M.S.c, Ph.D., Dean of
8:55 to 9:05 Opening Remarks
the Faculty of Public Health)
Special Guest:
Special Guest: Dr. Timothy Grant Evans, Senior
Investing Health for Human Capital
9:05 to 09:20 Director of the Health, Nutrition and Population
and Inclusive Development - The
Global Practice at the World Bank Group
Case of Indonesia
Sri Mulyani Indrawati, S.E., M.Sc.., Ph.D.,
Keynote Speaker:
09:20 to 09:35 Minister of Finance of the Republic of Indonesia
Health Investment for Human Capital
(*)
The Award Ceremony and Group MC: Mayfree Syari and Vetty Yulianti
9:35 to 10:00
Photo Permanasari, S.Si, M.P.H.
Sessions Talkshow
Human Development Agenda Dr. Ir. Subandi M.Sc., Deputy for Human
10:00 to 10:15 towards Indonesia’s Golden Development, Society, and Culture – Bappenas
Generation 2045 (*)
Investing in Children for Human Deborah COMINI,Country Representative of
10:15 to 10:30
Capital towards SDGs Achievement UNICEF Indonesia
Unfinished Agenda in Health with
dr. Anung Sugihantono, M.Kes., Director
Double Burden Diseases and
10.30.-10:45 General of Disease Control and Prevention, MOH
Malnutrition vs. Investing Health for
(*)
Human Capital
JKN (National Health Insurance
Prof. Dr. dr. Fachmi Idris, M.Kes., President
10:45 to 11:15 Programme)’s role in the Human
Director BPJS-Health
Capital Investment
Prof. DVM. Bakti Wiku Bawono Adisasmito,
11:15 to 11:45 Discussant 1
M.Sc., Ph.D., Professor of FKM-UI
12:00 to 12:15 Discussant 2 dr. Rooswanti Soeharno, M.A.R.S.
Discussion sessions (Participants Provide Questions to the Informant Guided by Moderator)
Moderator: Alfito Deannova / Kurnia Sari,
12:15 to 12:30 Discussion Sessions
S.K.M., M.S.E.
Summary Writers Team: Nurul Huriah Astuti,
12:30 Closing – Summary Presentation
S.K.M., M.K.M. & Team.
The award handover to all speakers
12:30 to 12:45 MC & Committee
and group photos
12:45-finished Lunch Committee

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 Committee Members

Task Name
Counselor : Dr. Rita Damayanti, MSPH
Chairman : dr. Andi Afdal Abdullah, MBA, AAK
: dr. Yulherina, MKM
Deputy Chairman
Tiopan Sipahutar, SKM, MKM
: dr. Rooswanti Soeharno, MARS
Kurnia Sari, SKM, MSE
Science & Events
Vetty Yulianty Permanasari, SSi, MPH
dr. Dewi Lestarini, SpKK, MARS
: Sandra Barinda, SSi, Apt, MSi
Secretary
Rikawarastuti, SKM, MKes
: dr. Fika Minata Wathan, MKes
Treasurer
Delmaifanis, SST, MKM
: Fadlul Imansyah, SE, MM, AAK, CIFP
dr. Duta Liana, MARS
Funding/Sponsorship
Susiana Nugraha, SKM, MSc
Ir. Ignatia Widya K. M.Si.
: Dewi Nirmala Sari, M.Biomed
Registration & Participants
Lisa Trina Arlym, SST, MKeb
: Maya Sari Dewi, SKM, MKes
Publication & Nurul Huriah Astuti, SKM, MKM
Documentation Rosni Lubis, SST, Mkeb
Ester Indahyani Jusuf, SH, MSi
: dr. Ekorini Listiowati, MMR
Consumption Corie Indria Prasasti, SKM, MKes
Mieska Despitasari, SSi, MKM
: Tegar Septyan Hidayat, ST, MT
Tiara Amelia, SKM, MSc
Equipment & Logistics
Kencana Sari, SKM, MPH
dr. Ronny Sutanto, Sp.OT
: Dwi Sisca Kumala Putri, SKM, MEpid
Security & Sanitation
Agustina Setyaningsih, SH, Msi