SUSTAINABLE FINANCING ALTERNATIVES FOR VOCATIONAL HIGH SCHOOLS

by Machmud Sugandi

Bali Indonesia, July 7-8 2008

It is assumed that vocational high schools need high financing than other high schools (Klein, 2001). This statement is according to the theoretic and empiric study which is found in the field. It is because practice learning needs more funding than theoretic-learning. This high financing needs due to skills-competencies process which is done in practice-learning, meanwhile in cognitive-competencies it is more theoretic. Practice-learning needs much funding to buy workshop equipment, workshop materials, maintain the equipment, for hiring the technicians and, power and fuel supply. Financial support for the vocational high school learning process in Indonesia, classified into: (1) local and state government, (2) local community, and (3) block grant. The variable-fund such as from local community, collaboration with industry, production income, and block grant are easily influenced by external factor. Meanwhile, fix-fund from local and state government is limited.

The alternatives solution to making out these matters could be done in the learning process or when the student graduated as follows: First, applying production-based learning or productionbased training through competence-learning for the student in the last grade in doing productive workshop in their own group. Second, providing alternate capital for the potential graduate students and technical assistance for them with entrepreneurship potential.

Basis and Objective of Fund:

Amendment Constitution of 1945 Republic Indonesia number fourth, National Education System of Law No. 20 year 2003, and government regulation No. 19 year 2005 about Standard National of Education. It is stated that the nation provide at least 20% of their national and local income to commit education national learning process. The aim of this skill-learning process could make a benefit for the person as well as the society This personal and social benefit lead us for the concept of funding basis which could be as the answer of some questions such as Who have the responsibility in financing vocational education or vocational training? According to the social impact, there is stated that the government has the responsibility in financing the educational or training process. Meanwhile, according to personal benefit, there is a concept that there should be a private financing.

According to Gasskov (2000: 193), the government position in giving equal access for the vocational education is unique, equality in education process and training can be reached through these following financing mechanism:
1. giving learning or training and giving free job offer or with a low fee for every body who wants to get a skill in public school around the country, 2. training voucher in the form of education service and training for the young people for the short future, and 3. giving the scholarship for them who have low income and have not access to follow the program. The government funding for the vocational high school in Indonesia could be categorized into: 1. Operational subsidy for vocational education process which given regularly and equal to every school according to the variable of the student in every grade, and 2. Grant funding to the school according to their program in a competitive way.

 Concept of private finance by the student and the employer is a kind of direct contribution of the learning process or training process, the contribution of employer as the impact of profit from this learning or training program. According to Gasskov (2000; 197), individuals finance training through; 1. Fees paid for courses, 2. Accepting reduced wages during training periods at enterprises, 3. Training after working hours, and 4. Repayment of training loans. Private financing is very susceptible because it is depends on parents financial ability, meanwhile most of the students of vocational high school come from under middle-class which see that education is not their priority in life.

 The School learning in vocational high school has own characteristic than high school. In this school, the practice learning gets the most portions than theoretic learning. The students competency since the general level to qualified level are the student skillcompetency in observing productive material, solving the practice problem, and easily adapting the filed work or in reaching specification of the product. The learning actualization of the student in reaching psychomotor domain is using productionbased learning approach. Production-based learning or usually called production-based training is a kind of education or training in school through some production of good or service or make a material component of a certain industry according to specification of the product in the market. According to Sasmita (2007:207-212), the purpose of this productionbased learning: (1) create a skilled labour which are needed in industry as well as could produce a saleable product, and (2) engraft productive experience in developing entrepreneurship motivation in creating a commercial service or product. In line with this, Directorate Education Vocational High School (1999), states that productionbased learning is a learning-skill process which is created and done according to procedure and work standard in a real job, in order to create product or service according to market demand. There are another learning approach which have the same final purpose with production-based learning, such as a project-based learning and work-based learning.

The reason of searching the alternate capital is a limited financing donation from the state or local government, and susceptible donation from the students, local community, and the industry or production unit. The vocational high school together with the sponsor make collaboration in crating a new innovation that is providing alternate capitals for the potential graduate student. Therefore, the student could establish their own business according to their competency, as well as build up their parents business. Providing alternate capital has been done in some vocational high school in East Java, Southeast Sulawesi, and South Sulawesi. The student or the graduate student who are involved in the production-based learning have the competency and experience in creating market-oriented product. The procedure of alternate capitals lending are: (1) competition level, in this process the school offers the proposal to the sponsor, (2) implementation program, the student or the graduate student get the alternate capitals. The amount of the alternate capital is based on the proposal, and (3) monitoring and evaluation level, in this level the sponsor have to monitor and evaluate the implementation of the funding. The contribution from this alternate capital to the school as the income generating is 8%/year in flat calculation, so that every student has to turn it back on time.

The high financing need of vocational high school, demand of the good quality of the graduate student from vocational high school, and a limited funding have a big effect on the learning process especially in this crisis. Therefore, the schools alternative funding is developed in order to create a good quality vocational high school, while the alternate funding could be done in the form of: 1. doing production-based learning, and 2. providing alternate capitals and technical assistance for graduates with entrepreneurship potential. The business could be a new business, or continuing the parents business or collaboration with the industry around the vocational high school.

Thank You