Financial Standard Relationship with Institute Quality

Nahuda, Khudlori

, Atabik Luthfi

and Kunaenih

Islamic University of Jakarta, Indonesia

Keywords: Standard of Financing, Quality, Institution

Abstract: This study aims to determine the relationship between the standard of financing and the quality of the

institution. This study is important, is important, because of the need in the field, so that educational

institutions are able to improve the quality of education based on appropriate financing. This research uses

descriptive method of technical analysis. In analyzing the data of standard financing relationship to student

achievement, the researcher submits a question or questionnaire to 10 staff teachers and 20 students as many

as 10 items for variable X (Financing Standard) and 10 items for variable Y (Student Achievement). The

results of this study are the results of the correlation obtained can be said as a weak or low negative correlation,

the results of which are -0.275. From these results, it is known that the use of financing standards does not

affect the quality of an institution with a weak or low correlation between 0.20 - 0.40. Factors that cause

learning achievement can be improved, among others: a. Good management, b. Good interaction between

educators and students, c. Adequate facilities and infrastructure, d. Motivation of educators and students, e.

Qualified and professional educators, e. A conducive school environment.

1 INTRODUCTION

Education is one of the most important of national

development. History shows that the key to

successful development of developed countries is the

availability of an educated population of adequate

numbers, types and levels. Therefore, almost all

nations place education development as a top priority

in their national development program. A qualified

human resource, which is an educational product, is

the key to a country's success.

Recognizing the above mentioned in 1994

has been declared Compulsory Basic Education

Program 9 Years which is one effort to improve the

quality of human resources of Indonesia. This

program targets all Indonesian citizens to have a

minimum education equivalent to Junior High School

with a good quality.

With the provision, it is expected that all

Indonesian citizens can develop themselves further

that eventually able to choose and get the job in

accordance with the potential. It cannot be denied that

an institution they have, as well as participate in life

of society, nation, and state.

It will be able to function and be adequate if

it has a management system supported by human

resources (HR), funds / fees, and facilities. The cost

of education plays an important role in the

sustainability of the education world (David Wijaya,

2009: 91).

The importance of cost in a budget is the cost

of having an influence on the level of efficiency and

effectiveness of activities in the context of achieving

goals. Education Financing Standards can be traced

from Government Regulation Number 19. 2005 on

National Education Standards (PP SNP).

Chapter IX Financing Standard in PP SNP

states that education financing consists of investment

costs, operating costs, and personal costs. The

education unit costs include the cost of providing

facilities and infrastructure, human resources

development, and fixed working capital.

The operating costs of the educational unit

include:

1. The salaries of educators and education

personnel as well as any allowances attached

to salaries,

2. Consumable materials or educational

equipment, and

3. Operating costs indirect education in the

form of power, water, telecommunication

services, maintenance of facilities and

818

Nahuda, ., Khudlori, ., Luthﬁ, A. and Kunaenih, .

Financial Standard Relationship with Institute Quality.

DOI: 10.5220/0009917908180824

In Proceedings of the 1st International Conference on Recent Innovations (ICRI 2018), pages 818-824

ISBN: 978-989-758-458-9

infrastructure, overtime pay, transportation,

consumption, taxes, insurance, and so forth.

4. Personal costs include the cost of education

that must be spent by students to be able to

follow the learning process regularly and

continuously.

It was mentioned in the PP SNP Chapter I

General Provisions of Article 1 Paragraph 10, the

standard of financing is the standard that governs the

components and the amount of operating unit cost of

education applicable for one year. Paragraph 12 states

the operational cost of the educational unit is part of

the education fund needed to finance the operations

of the educational unit in order to enable educational

activities that meet national standards of education on

a regular and ongoing basis.

Referring to the articles and clauses in the

PP SNP relating to the educational financing

mentioned above, it can be concluded that although

the cost of education consists of:

1. Investment costs,

2. Operating costs, and

3. Personal costs.

The education financing standard is focused

on operating costs education. It is part of the

education fund needed to finance the operations of the

educational unit in order to enable educational

activities that meet national standards of education on

a regular and ongoing basis.

The use of good operational cost of

education can lead to the fulfillment of the needs

during the continuation of educational activities that

suit national standards of education on a regular and

ongoing basis. It certainly becomes one of the factors

in improving school performance. With the use of a

good, regular, continuous education operating cost,

the school's performance continues to grow and

increase.

Especially some of the fields studies need

more financial efforts to fulfill requirement facilities,

in order to increase the quality of faculties, or to stand

in line with domestic and foreign institutions.

In the view of Islam, producing superior

human resources does require significant costs. In the

view of Imam Shafi'i, there are six factors in the

success of scientific achievement, namely

intelligence, enthusiasm, sincerity, friendship with

the teacher, provisions or costs, and a long time.

Referring to Al-Mujadilah verse 12, the

education lesson from this verse that education is not

free; even in one history relating to the descent of this

verse explains that education is not too cheap (as the

Prophet said to Ali bin Abi Talib). In this verse Allah

SWT gives requirements to Muslims who want to ask

(learn) to the Messenger of Allah to give alms to the

poor. We can assume the alms in this verse as the cost

of education (learning) that must be issued by the

seeker of knowledge.

If this factor is taken into account, the effort

to improve the quality of graduates who in fact affect

the quality of institutions requires a more in-depth

and comprehensive study of the issue of financing.

The cost of education in question is not

always understood as high or expensive, but the costs

are affordable for all levels of society. One of them is

by setting standards for proper education funding for

all children of the nation.

Another thing related to financing is the

issue of accountability, in the sense that the ability to

show reports or records that can be accounted for in

managing the financing of an educational institution.

Inefficient management of cost sources and

their use as investments in the education system can

have a negative impact on the quantity and quality of

educational products. Inefficiency and

ineffectiveness, due to inaccuracies in the use of

funds that can include inthe management of costs

from the main components of the education system

include teachers, students, curriculum, facilities and

educational infrastructure.

Problem Limitation and Formulation

Restricting the problem

In order for the discussion in this study to be

more directed and easy to understand, the limitations

of the problems raised are as follows:

Financing standards are limited to financing

allocated by the institution in accordance with the

standards to be achieved by the achievement and

capabilities possessed

Institutional quality is limited to the

achievement of the quality of institutions related to

academics in this case student achievement based on

the set of financing references

2 RESEARCH FORMULATION

Based on the limitations of the above problems, the

formulation of the problem is directed at the main

issues to be discussed in this study, namely:

1. Do financing standards have an influence on

institutional quality?

2. If yes, how big?

3 Are there opportunities and challenges in financing

standards to improve institutional quality?

Financial Standard Relationship with Institute Quality

819

4. What are the obstacles faced and how to overcome

them?

3 RESEARCH PURPOSES

This research aims to:

1. Describe the influence of financing standards on

institutional quality

2. Getting a deep explanation relates to the

relationship of financing standards in improving

institutional quality

3. Studying more deeply relates to the opportunities

and challenges of financing standards for institutional

quality

4. Examine the obstacles faced and anticipate efforts

related to financing standards in improving

institutional quality

4 USABILITY OF RESEARCH

This research is expected to be useful:

1. Providing information for educational institutions

in improving their quality with financing standards

2. Add information to educational institutions in

strengthening financial standards associated with

improving institutional quality

3. Improving educational institutions in promoting

opportunities and challenges in financing standards

for institutional quality

4. Anticipate obstacles faced and anticipate efforts

related to financing standards in improving

institutional qualitty.dan lain sebagainya

5 RESEARCH THEORY

The core discussion of this research is about financing

standards and the quality of educational institutions.

The two points of this discussion must be adequately

explained, before carrying out further research, in

order to understand the problem properly

The standard of education financing refers to

Minister of Education Regulation Number 69 of

2009, which is consists of 4 articles as follows:

article 1

Standard non-personnel operating costs for SD / MI,

SMP / MTs, SMA / MA, SMK, SDLB, SMPLB, and

SMALB are the standard costs needed to finance non-

personnel operations for 1 (one) year for SD / MI,

SMP / MTs, SMA / MA, SMK, SDLB, SMPLB, and

SMALB as part of the overall education fund so that

the education unit can carry out educational activities

on a regular and sustainable basis according to the

National Education Standards.

Section 2

(1) Standard non-personnel operating costs in 2009

per school / expertise program, per study group, and

per student for SD / MI, SMP / MTs, SMA / MA,

VOCATIONAL SCHOOL, SDLB, SMPLB, and

SMALB using a non-personnel operating cost base

school / expertise program, per study group, and per

student for SD / MI, SMP / MTs, SMA / MA, SMK,

SDLB, SMPLB, and SMALB in the Special Capital

Region (DKI) of Jakarta.

(2) The standard amount of non-personnel operating

costs in 2009 per school / expertise program, per

study group, and per student, as well as the minimum

percentage of school stationery costs (ATS) and

materials and consumables (BAHP), for SD / MI ,

SMP / MTs, SMA / MA, SMK, SDLB, SMPLB, and

SMALB are as listed in Appendix I of this Ministerial

Regulation.

(3) The calculation of the standard non-personnel

operating costs for 2009 for each region is done by

multiplying the operating costs of DKI Jakarta non-

personnel with the index of each region, as listed in

Appendix II of this Ministerial Regulation.

Article 3

Primary and secondary education units that have not

been able to meet the National Education Standards

use a lower unit cost than this standard.

Article 4

This Ministerial Regulation comes into force as from

the date of stipulation.

While quality definition has various

connotations depending on the person who uses it.

Quality comes from Latin, namely "Qualis" which

means what kind of (depends on what words follow

it). Quality according to Deming is conformity to the

needs. Mutu according to Juran is a match with needs.

(Usman, 2006: 407).

Still in the same book (406) passages from

Sallis (2003) suggest quality is an absolute and

relative concept. Absolute quality is high quality

idealism and must be met, with high standards, with

the characteristics of high-quality products. Relative

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quality is not an end, but as a predetermined tool or

service is assessed, namely whether it has met the

established standards (Usman, 2006: 408).

Quality in the field of education includes the

quality of inputs, processes, outputs, and outcomes.

Educational input is declared quality if ready to

process. Quality education process if able to create an

atmosphere that is PAKEM (Active, Creative and Fun

Learning).

Output is declared quality if the student's

academic and non-academic learning outcomes are

high. Outcome is declared quality if graduates are

quickly absorbed in the world of work, reasonable

salary, all parties recognize the greatness of their

graduates and feel satisfied (Usman, 2006: 410).

Quality in the context of integrated quality

management or Total Quality Management (TQM) is

not only an idea, but a philosophy and methodology

in helping institutions to manage changes in totality

and systematically, through changes in values, vision,

mission, and goals. Because in the world of quality

education graduates of a school are assessed based on

their ability to suit the goals set in the curriculum.

Meanwhile, according to Sudradjad Day (2005:

17) quality education is education that is able to

produce graduates who have the ability or

compotency, both academic competencies and

vocational competencies, which are based on

personal and social competencies, as well as noble

moral values, which are all skills life (life skill),

Sudradjat further stated that quality education is

education that is capable of producing whole people

(complete human beings) or humans with an integral

person (integrated personality), namely those who are

able to neutralize faith, knowledge, and charity.

Husaini Usman (2006: 411) suggested 13 (three)

twelve characteristics possessed by education quality,

namely:

Performance (performance) that is related to the

functional aspects of the school includes: teacher

performance in teaching both in providing convincing

explanations, healthy and diligent teaching, and

preparing complete learning materials, good

administrative and educational services with good

performance after becoming a vaforit school

Timelines which are in accordance with a reasonable

time include starting and ending the lesson on time,

the exact time of the test.

Reliable (reliability), the age of service lasts long.

Including excellent service provided by the school

lasts from year to year, the quality of the school

persists and tends to increase from year to year.

Durability is hardiness, for example despite the

monetary crisis, the school still survives

Aesteties such as the exterior and interior of the

school are arranged attractively, the teacher makes

interesting educational media.

Human interface (personal interface) is to uphold

moral values and professionalism. For example

school people respect each other, democracy, and

respect professionalism.

Easy to use (easy of use), namely facilities and

infrastructure used. For example school rules are easy

to apply, easily borrowed library books are returned

on time.

A special feature is certain advantages such as

superior schools in terms of mastering information

technology (computerization).

Specific standards (comformence to specification),

which meet certain standards. For example schools

still meet minimum service standards.

Concistency, which is permanence, constant and

stable, for example school quality does not decline

from the past until now, school citizens are consistent

with the word.

Uniformity which is without variation, not mixed. For

example schools carry out rules, indiscriminately,

uniforms and dress.

Able to serve (serviceability) which is able to provide

excellent service. For example schools provide

suggestion boxes and suggestions that are able to be

fulfilled well so that customers feel satisfied.

Acuracy, namely the accuracy in service, for

example, schools are able to provide services in

accordance with what the school customers want.

The financing standard is a standard that

regulates the components and the amount of operating

costs of an educational unit that is valid for one year.

Education funding consists of investment

costs, operating costs, and personal costs.

The investment costs of the education unit as

referred to above include the costs of providing

facilities and infrastructure, developing human

resources, and permanent working capital.

Personal costs as referred to above include

the education costs that must be spent by students to

be able to follow the learning process regularly and

continuously.

Financial Standard Relationship with Institute Quality

821

The operating costs of the education unit as

referred to above include:

Teachers and education staff salaries and all

benefits attached to salaries,

Consumable educational materials or

equipment, and Indirect educational operating costs

in the form of power, water, telecommunications

services, maintenance of facilities and infrastructure,

overtime money, transportation, consumption, taxes,

insurance, etc.

6 REVIEW OF LITERATURE

PP 19/2005 on National Standards of Education

explains The standard of financing is the standard that

regulates the components and the amount of operating

unit cost of education applicable for one year.

Educational financing consists of investment costs,

operating costs, and personal costs. The education

unit investment costs as mentioned above include the

cost of:

1. Providing facilities and infrastructure,

2. Human resources development, and

3. Fixed working capital.

The personal costs referred to above include

the tuition fees to be incurred by learners to be able to

follow the learning process regularly and

continuously. The cost of operating the educational

unit as mentioned above includes:

1. The salary of educators and education

personnel as well as any allowances attached

to salaries,

2. Disposable educational materials or

equipment, and

3. Indirect education operating costs in the

form of:

a. Power,

b. Water,

c. Telecommunication services,

d. Maintenance of facilities,

e. Maintenance of infrastructure,

f. Overtime pay,

g. Transportation,

h. Consumption,

i. Taxes,

j. Insurance, and so forth.

The cost of education as one of the studies in

the production process of education is closely related

to the environment. The size of the cost of education

will be influenced by:

1. Environment,

2. The level of state income,

3. Population density, and others.

There are two factors that affect the cost of

education, namely external factors and internal

factors.

1) External factors, including:

a. The development of educational

democracy

b. Government policy

c. The demand for education

d. The inflation

a) The development of educational democracy

In Indonesia, educational democracy is

clearly formulated in Article 31 of the 1945

Constitution paragraph 1 and 2. The consequence of

the existence of democracy is that the government

provides sufficient funds for it.

b) Government policy

Granting rights to citizens to obtain

education is in the interest of a nation in order to be

able to maintain and develop its nation. However, so

that the goal is achieved the government provides

facilities in the form of things that are alleviating and

supporting education.

For example, the provision of large funding

for the construction of buildings and their facilities,

ease the burden on students in the form of:

1. Tuition assistance

2. Tuition arrangements for collection

3. Tuition arrangements for scholarships

4. Teacher salary increases and so forth.

c) Demands for education

The increase in demands for education is

everywhere. Domestically, the demand for education

is characterized by quantity in terms of the increasing

number of people who want education and the quality

aspect of increasing desire to obtain a higher level of

education.

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d) Inflation

Inflation is a decline in the value of a

country's currency. The inflation factor is very

influential on the cost of education because the unit

cost price certainly increases following the increase

in inflation.

2) Internal factors

The internal factors include:

a. Educational goals to be achieved

b. The approach used

c. The material presented

d. Level and type of education

Education is one of the areas submitted its

authority to the region. Thus, education management

that was at the center became the authority of each

region. In accordance with Law No. 25/1999 (article

8), regional authority in various fields including

education will be followed by the delegation of its

financing to the regions. Will be a problem for

regions with limited financial capacity and low self-

reliance.

Therefore, in the implementation of regional

autonomy, schools are required to have independence

in digging funds for improving the quality of

education by utilizing the resources owned and

increasing the role of society and the business world

for education financing. Implementation of school-

based management is closely related to the

implementation of Law No. 25 of 1999 that is

changing the decision-making mechanism and

authority that has been done by the central delegated

to the district / city. The policy enables the

implementation of the decentralization principle in

education to improve a rigid centralized system.

Decentralization of education provides

flexibility and authority to schools and local

communities to manage education. SBM is a new

paradigm of education that provides widespread

autonomy at the school level intended to enable

schools to freely manage resources and resources,

allocate them according to priority needs and be more

responsive to local needs. MBS gives chances to the

head

Fattah (2009) argues that efforts to improve

the quality and expansion of education require at least

three main factors, namely,

1. Adequacy of educational resources in the sense of

the quality of education personnel, costs and means

of learning,

2. The quality of the teaching and learning process

that encourages students to learn effectively, and

3. Output quality in the form of knowledge, attitudes,

skills and values. So the adequacy of the source, the

quality of the teaching and learning process and the

quality of the output will be fulfilled if the support of

the costs needed and education professionals can be

provided at the school.

7 METHOD

Understanding Research methods are steps that are

owned and carried out by researchers in order to

collect information or data and conduct investigations

on the data that has been obtained. The research

method provides an overview of the research design

which includes, among others: procedures and steps

that must be taken, research time, source of data, and

what steps the data is obtained and then processed and

analyzedThe research method is the method used by

researchers in collecting research data, in this study

the researcher used the descriptive method of

professional knowledge, namely the research method

which aims to find whether or not there is

effectiveness and if there is, how effective the sera is

or not. , 1998; 63).

While research is a scientific and systematic

investigation in order to develop knowledge.

Research is also a systematic and structured effort to

investigate problems that require scientific answers.

In obtaining adequate data about this study,

the author uses two research methods, namely:

1. The library research method (Library Risearch) is

an investigation held in order to obtain facts and data

through a literature review and documents that are

relevant to the problem being studied.

2. Field Research Methods (Field Reserch) that is an

investigation held to obtain facts and symptoms -

symptoms that exist and look for information - facts

in fact.

8 RESULTS

This research uses descriptive method of technical

analysis. In analyzing the data of standard financing

relationship to student achievement, the researcher

submits a question or questionnaire to 10 staff

teachers and 20 students as many as 10 items for

variable X (Financing Standard) and 10 items for

variable Y (Student Achievement).

Financial Standard Relationship with Institute Quality

823

The results of this study are the results of the

correlation obtained can be said as a weak or low

negative correlation, the results of which are -0.275.

From these results it is known that the use of

financing standards does not affect the quality of an

institution with a weak or low correlation between

0.20 - 0.40.

The research also found the factors that

cause learning achievement can be improved, among

others:

a. Good management,

b. Good interaction between educators and

students,

c. Adequate facilities and infrastructure,

d. Motivation of educators and students,

e. Qualified and professional educators,

f. A conducive school environment.

Although the influence of financing

standards on the quality of institutions is not large, but

still the financing of education must be standardized,

in order to create equal educational opportunities. In

fact, high-cost educational institutions are very

popular with parents, because of the high

achievement results and excellent quality of

graduates

9 CONCLUSION AND

RECOMMENDATION

The cost or the financial standard of education is not

the only factor that influences the quality of

institutions, but is an important factor in improving

the quality of institutions. Therefore, policy makers

or the government must pay attention to this aspect.

Moreover, the government is indeed

responsible according to the mandate of the law to

continue to try to improve the quality of education.

So, our education can compete with the outside

world, and its benefits back to the nation itself.

Education funding standards are still

needed, although there is little effect on the quality of

institutions. This is to guarantee the affordability of

education for all levels of society.

Managers of educational institutions are

required to be able to be efficient and accountable in

managing education costs, and are fully allocated in

order to improve the quality of education

Research on financing standards still needs

to be improved and carried out by researchers, to

provide advice and input to all stakeholders and who

are responsible for improving the quality of

education. Several other factors that influence the

quality of education, both internal and external, need

to be continuously reviewed, in order to improve the

quality of education in various aspects

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Depdiknas. 2004. Curriculum and Learning Outcomes.

Jakarta: Dikmenum.

Dikmenum Depdikbud. 1998 / 1999. Management of

Quality Improvement in Supplements

Senior Principal Training. Jakarta: Depdikbud.

Fattah, N. 2009.Economy and Education Financing.

Bandung: Rosdakarya.

Murgatroyd & Morgan. 1994. Total Quality Management

and the School. Buckingham: Open University Press.

Nurkholis. 2006. School Based Management, Theory,

Models and Applications. Jakarta:

Grasindo.

Sallis, E. 2006. Total Quality Management in Education.

London: Kogan page Educational

Series.

Usman, Husaini, management theory, practice and

educational research, Jakarta : Bumi Aksara, 2006.

Suderadjat, Hari, school-based quality improvement

management, Bandung : Cipta Lekas Garafika, 2005

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