<![CDATA[The development of superior Human Resources (HR) is an essential prerequisite for a nation's progress. In the Indonesian context, education financing based on human capital, as a form of investment in HR, is a strategic step that requires comprehensive review from both opportunity and challenge perspectives. This research aims to conduct a systematic review of the literature related to the challenges and opportunities of implementing a human capital-based education financing model within the Indonesian education context, as well as its contribution to the development of superior HR. Furthermore, this research will formulate policy recommendations derived from the analysis and identify relevant research gaps. Through a Systematic Literature Review (SLR) approach, this study explores critical issues such as financing standards, optimization of fund allocation, education budget management, and accountability and equity challenges. The analysis results indicate strong recognition of education as a "human capital investment," supported by regulations, allocation efficiency, transparency, and diversification of funding sources. Strategic financing can enhance the quality and relevance of education, foster innovation, and ultimately produce more competent and competitive HR. Based on the findings, policy recommendations include developing a clear national framework for human capital investment in education, implementing performance-based financing, improving transparency and accountability, and diversifying funding sources. This research identifies gaps in cost-benefit analysis, the role of non-governmental stakeholders, measurement of long-term impact, and a more focused analysis of vocational financing policies.]]>
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