Measuring Human Capital in Indonesia Using an Adapted World Bank HCI Framework
Abstract
Despite the growing recognition of human capital as a key foundation of development, Indonesia still lacks a multidimensional provincial measure. This study develops a Human Capital Index (HCI) for Indonesian provinces based on the World Bank HCI framework and examines its spatial and temporal patterns during 2011–2019. The index is constructed using normalized indicators representing survival, schooling, and health dimensions, namely Measles Immunization, Expected Years of Schooling, Mean Years of Schooling, National Examination Score, and Life Expectancy. The study applies min–max normalization, composite index construction, Sturges’ Rule classification, robustness testing, Global Moran’s I, Pearson correlation, and temporal disparity analysis. The results show that provincial HCI is generally concentrated in the middle range, but disparities remain across provinces. DI Yogyakarta records the highest average HCI, while Papua records the lowest. The index is robust under alternative weighting scenarios. Spatial analysis shows no significant global clustering for composite HCI, although Measles Immunization and Life Expectancy exhibit significant spatial clustering. Furthermore, temporal analysis indicates persistent interprovincial disparities during this period. Overall, this HCI can serve as a diagnostic tool for targeted human capital policy.
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