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All Journal Journal of English Language and Education
Abdullah, Ridwan
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Model to Stimulate Economic Growth in Indonesia Abdullah, Ridwan; Ahmad, Masduki; Rochimah, Heni
Journal of English Language and Education Vol 10, No 4 (2025)
Publisher : Universitas Pahlawan Tuanku Tambusai

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31004/jele.v10i4.1043

Abstract

Educational investment as part of human capital development is a crucial strategy in increasing competitiveness and driving economic growth of a nation. However, in developing countries like Indonesia, there is still a gap between theory and practice, particularly in the effectiveness of implementing education financing models. This study aims to formulate a relevant human capital- based education financing model capable of driving inclusive and sustainable economic growth. Using a systematic literature study approach to scientific publications and national-international policy documents over the past decade (2014–2024), it was found that education financing schemes focused on improving the quality of human resources have a positive impact on labor productivity and Gross Domestic Product (GDP) growth. The findings demonstrate the importance of implementing outcome-based budgeting, diversifying funding sources, and cross-sector synergy in formulating education financing policies. The proposed conceptual model positions human resource quality as the main indicator of the effectiveness of education investment. In conclusion, education financing strategies must be designed contextually, collaboratively, and output-oriented to encourage inclusive and sustainable economic growth.
Co-Authors Masduki Ahmad Rochimah, Heni