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Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 02
March 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 271
Assessment of Indonesian Social Capital Index
Alex Oxtavianus
BPS- Statistics Indonesia, Indonesia; leaxoct@gmail.com
Abstract
Social capital is one of development capital.
This study calculates the quantity of social
capital in Indonesia by using an index. Social
capital index is calculated at a national and
provincial level. Social capital components in
social capital index are trust, norm and
network. The result showed that social capital
in Indonesia is supported by the trust and
norm. Networks component is very low. Social
capital in Indonesia is also determined by the
degree of society homogeneity, informal
leadership and level of development.
Homogeneous society and the existence of
informal leaders have a positive impact on
social capital. Development has a negative
impact on social capital, especially in trust
and norms components. Otherwise,
development has a positive impact on the
networks expansion..
Key Words:
Social capital index, trust, norm, network,
development
I. Introduction
Spangenberg and Bonniot (1998) identified
four development capital, which are man- made capital, human capital, natural capital
and social capital. Three first capital very
popular and much studied, whereas social
capital is rarely discussed and empirically
studied, especially in Indonesia. Paradox with
these conditions, theory about the role of
social capital in development has grown fast.
The results of studies in various countries
shows that strong social capital will stimulate
the growth of various sectors of the economy
because of the high level of trust and closeness
of relationships within a broad network grows
among economic actors (Fukuyama, 1995).
Fauzi (2007) states that social capital can play
a role in sustainable development, because it
has an important role in economic growth
through: (a) the information flows will move
faster between economic agents if social
capital is quite good; (b) trust as a major
component of social capital will reduce
information search costs, thereby reducing
transaction costs; and (c) social capital will
reduce government control of the economy so
that exchange more efficient.
Social capital is a missing link among natural
capital, physical/produced capital and human
capital (World Bank, 2008). Emphasized
social capital, including trust, norms and
networks, is a prerequisite for sustainable
development. Rydin and Holman (2004) even
state that social capital can solve the problems
to achieve sustainable development. Social
capital acts through two different things; first,
social capital plays a role in tackling the
problems of collective action; second, social
capital can reduce transaction costs between
actors of sustainable development. The use of
social capital can solve the problems of lack
of participation, conflict of desire, lack of
resources, as well as barriers to cooperation
between the parties relating to sustainable
development.
Page 2 of 7
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 02
March 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 272
Svendsen and Svendsen (2004) states that
social capital increases control system against
opportunistic behaviour, free rider and rent- seeking. Individual is likely opportunistically,
selfish and will strive to achieve a common
goal when individual goals are met. The
tendency will be suppressed when strong
social capital as the control system will
increase the additional cost to behave
opportunistically.
To get an idea of social capital, it needs to
analyze how much the stock of social capital
in a region. Stock of social capital is early
information to learn social capital as well as
indication of development impact on social
capital. Related to the statement, the study
aims to calculate and analyze the social capital
stock in Indonesia.
II. Method
Components of social capital in this study are
trust, norms and network. Social capital is
measured using several indicators that a
relation of these components. Social capital
indicators selection refers to social capital
research has been done by some researchers
previously and adapted to data. The data used
in this study is the National Socio-Economic
Survey, Culture and Education Module
(SUSENAS MSBP) in 2012.
Stock of social capital is expressed in the form
of social capital index. Steps being taken in the
calculation of social capital index are as
follows: (1) data preparation, (2) calculation
average score, (3) normalization, (4)
determination of weights and (5) aggregation.
All steps are performed sequentially. Step 1
and 2 are the basic data preparation for
calculating social capital index. Preliminary
data then normalized by using the maximum
method minimum (Step 3). The maximum
value of the average score was 4 with a
minimum value of 1, if In is an average of the
normalized scores for each indicator, then the
normalization formula is follows:
I=
(Actual Score − 1)
(4 - 1)
x100
Weighting (Step 4) is an important step in
calculation social capital index. Weight of
each indicator is determined by using
Table 1: Indicators of Social Capital
Components of
Social Capital Indicators of Social Capital Reference
Trust Trust in village officials (APARATUR)
Trust in community leaders (TOKOH_MA)
Trust in neighbour to left home (TITIP_RU)
Trust in neighbour to 0-12 years child care (TITIP_AN)
Perceptions of safety in the neighbourhood (AMAN)
[7], [8], [12],[13]
[7], [8], [12],[13]
[7], [8], [12],[13]
[7], [8], [12],[13]
[7], [13]
Norm Readiness to help others (BANTU)
Ease of getting help/loan from neighbours (DITOLONG)
The number of relatives, friends, neighbours who are ready to
help when get difficulty (JML_DITO)
Habit of joint activities to help unfortunate residents
(MUSIBAH)
[7], [12],[13]
[7], [8], [9], [12],[13]
[7], [13]
[7], [13]
Network Number of organizations that followed (ORG)
Participation in religious activities (AGAMA)
Participation in community activities (MASY)
[7],[8],[10],[11],[12],[13]
[7], [13]
[7], [13]
Note: ( ) variable name; [ ] In accordance with the reference number
Page 3 of 7
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 02
March 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 273
correlation matrix. The weight is proportion of
each indicator correlation over the total value
of the correlation. Correlation matrix is
formed on each component. While, the weight
of each social capital components (trust, norm
and network) are set uniformly for all.
Step 5 (aggregation) is a stage to calculate
social capital index and its components. Social
capital component index is performed with the
weighted average method; summing the
multiplication of all indicators score that have
been normalized to the weight of each
indicator on each component of social capital.
After all social capital component index is
obtained, and then social capital index was
calculated using equal weights for all
components.
III. Findings and Discussions
This study is intended to measure the amount
of social capital at provinces level throughout
Indonesia. Given the breadth and diversity
characteristics of the study area, the indicator
used should be general and applicable in all
regions. In addition to indicators selection, the
coverage areas also need special attention.
Referring to the Statistics Indonesia (BPS)
study, the measurement of social capital in
rural communities is the simplest thing to be
done. Village social capital is an accumulation
of individual social capital in related region.
Furthermore, social capital in higher hierarchy
territory is accumulation of social capital in
village communities.
Measurement of social capital is rarely done,
especially to all provinces in Indonesia. Only
BPS has studied to measures social capital in
massive. Measurement of social capital
amount in rural communities has been
calculated for 2009 and 2012. This study
sought to recount the amount of social capital
in 2012, but using the same data that was used
by the BPS. The recount was done due to the
different components of social capital used by
BPS with components that have been designed
for this research.
3.1. Respondent Characteristics
Characteristics of the respondents could be a
measurement of information quality provided
by respondents. Characteristics of respondents
viewed from several demographic indicators,
which include gender, age group, marital
status, and long lived in the village.
Table 2 Percentage of Respondents by
Demographic Characteristics
Demographic
Characteristics Urban Rural Total
Sex
- Female 64.90 52.70 58.00
- Male 35.10 47.30 42.00
Age Group
- < 30 years 16.10 16.00 16.00
- 30-40 years 31.50 30.90 31.20
- > 40 years 52.40 53.10 52.80
Marital Status
- Not married 7.90 4.70 6.10
- Divorced 12.40 13.10 12.80
- Married 79.70 82.20 81.10
Long lived in the
village
- < 5 years 18.80 10.30 14.00
- 5-10 years 16.40 11.30 13.50
- 11-20 years 21.80 20.50 21.10
- > 20 years 43.00 57.80 51.40
Number of
respondents 29337 38878 68215
By gender, the majority of respondents were
female respondents. The proportion of female
respondents was greater in urban areas. The
proportion of female respondents in urban
areas even reached 64.9 percent. The large
number of female respondents was allegedly
influenced by the data collection methods
used. Data collection conducted with the
households sample and conducted interviews
directly. Generally, the data collection is done
during the day, so that was in the house is
female household members. Men household
