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Full-Text Articles in Social and Behavioral Sciences

Fiscal Sustainability In Indonesia With Asymmetry, Mohamad Ikhsan, I Gede Sthitaprajna Virananda Mar 2021

Fiscal Sustainability In Indonesia With Asymmetry, Mohamad Ikhsan, I Gede Sthitaprajna Virananda

Economics and Finance in Indonesia

The management of fiscal balance determines public debt sustainability, where a positive response of primary balance towards the debt ratio indicates a sustainable path. However, there might be asymmetry in the government's fiscal management between different phases of the debt trajectory and business cycle. This study examines the sustainability of fiscal imbalance and public debt in Indonesia using the fiscal reaction function with annual fiscal data from 1976 to 2019. We incorporate asymmetry by decomposing the lagged debt ratio and cyclical output variables into their positive and negative partial sums. We find that Indonesia's fiscal imbalance is on a path …


Factors To Improve Fishery Household Welfare: Empirical Analysis Of Indonesia, Bayu Rhamadani Wicaksono, Yuniarti Yuniarti, Dede Yoga Paramartha Mar 2021

Factors To Improve Fishery Household Welfare: Empirical Analysis Of Indonesia, Bayu Rhamadani Wicaksono, Yuniarti Yuniarti, Dede Yoga Paramartha

Economics and Finance in Indonesia

This study attempts to verify the linkage between the characteristics of fishers and the welfare of fishery household in Indonesia, which is explained by the surplus obtained by fishers. Based on the empirical results using multiple linear regression analysis, variables with significant impacts on improving the welfare of fishery household in Indonesia in both marine and inland open water fisheries are fishing gear, number of fishers, number of crew, salary, province, age, gender, education level, processed storage, transportation, and market target. Furthermore, the characteristics of fishers are divided into similarities and differences. Observed from the similarities, the main fishers play …


Credit Limit Of Unsecured Consumer Lending: Evidence From Micro Data, Suwinto Johan, Calista Endrina Dewi Feb 2021

Credit Limit Of Unsecured Consumer Lending: Evidence From Micro Data, Suwinto Johan, Calista Endrina Dewi

Economics and Finance in Indonesia

As credit card debts have increased in Indonesia over the past ten years, concerns over the impulsive buying behavior of Indonesian credit card holders have emerged. Therefore, more attention must be paid to credit risk management of banks as it plays an important role in analyzing the possibility of losses due to the inability of prospective borrowers to repay debts. This study provides empirical evidence about the prudence of commercial banks in Greater Jakarta in offering credit card limits. Using primary micro-data collected from credit card applications submitted to the largest foreign private bank providing retail credit in the Greater …


Indonesian Provinces Sdgs Composite Index: Lampung Province Analysis, Reny Andriati, Mohamad Fahmi Feb 2021

Indonesian Provinces Sdgs Composite Index: Lampung Province Analysis, Reny Andriati, Mohamad Fahmi

Economics and Finance in Indonesia

Publications of Sustainable Development Goals (SDGs) have mainly been conducted at a national level and separately for each goal. No prior research has been done on SDGs composite index at a provincial level in Indonesia. It is necessary to create a composite index that presents a single value at the provincial level to enable regional evaluation. The Indonesia Province SDGs composite index is developed from indicators based on Statistics Indonesia gathered from several publications. The data sources are the National Socio-Economic Survey (Susenas) and the Basic Health Research (Riskesdas) which were linked surveys held in 2018. Principal Component Analysis and …


Financial Reporting Quality And Investment Efficiency: Evidence From Indonesian Stock Market, Iman Harymawan Jan 2021

Financial Reporting Quality And Investment Efficiency: Evidence From Indonesian Stock Market, Iman Harymawan

Economics and Finance in Indonesia

This study aims to analyze the impact of financial reporting quality on the investment efficiency of a company. The study uses 994 observations from companies listed on the Indonesia Stock Exchange (IDX) in three periods from 2013Â to 2015. The findings suggest that higher financial reporting quality has a positive and significant relationship with investment efficiency. Furthermore, the tests were conducted on groups of companies experiencing underinvestment and overinvestment. It was found that higher financial reporting quality had a negative and significant relationship with companies experiencing overinvestment. The findings provide implications for investors in assessing investment management carried out by …


Kerentanan Perbankan Di Indonesia: Pengukuran Dan Penyebabnya, Wisnu Wibowo, Amir Ambyah Zakaria Jan 2021

Kerentanan Perbankan Di Indonesia: Pengukuran Dan Penyebabnya, Wisnu Wibowo, Amir Ambyah Zakaria

Jurnal Ekonomi dan Pembangunan Indonesia

This study aims to identify banking vulnerabilities and analyze the factors that influence them. The tool used to identify bank vulnerabilities uses modification crisis and default index (C&D Index) while hypothesis testing uses logit regression. Commercial banks in Indonesia from 2008 to 2018 was taken as sample. As a result, in 2008 and 2013 were the most vulnerable conditions for banks in Indonesia. The reason most banks have been identified as vulnerable is due to decreased profits, increased liabilities in foreign currencies and increased Non Performing Loan (NPL). Logit regression test show that banking fragility is negatively related to capital, …


Islamic Bussiness Concept In Facing Moral Hazard Of Mudharabah Financing In Indonesia Islamic Banking (Perspective: Asymetric Information Theory), Ummu Sholihah, Nur Fatwa Jan 2021

Islamic Bussiness Concept In Facing Moral Hazard Of Mudharabah Financing In Indonesia Islamic Banking (Perspective: Asymetric Information Theory), Ummu Sholihah, Nur Fatwa

Journal of Strategic and Global Studies

In the contract of financing much-needed information asymmetry between the owners of capital (shahibul mall) and the manager of the capital (mudharib) in order to achieve common interests. One of the indicators that lead to moral hazard is due to asymmetric information or dissimilarity of information provided, and influential in the contract of financing. In a Mudharabah financing contract, between shahibul mall and mudharib provide information asymmetry in favor of the creation of a common interest. This study is a literature with an approach that combines the philosophical and phenomenological approach to look deeply about the …


Should I Bribe? Re-Examining The Greasing-The-Wheels Hypothesis In Democratic Post-Soeharto Indonesia, Irfan Kurniawan Dec 2020

Should I Bribe? Re-Examining The Greasing-The-Wheels Hypothesis In Democratic Post-Soeharto Indonesia, Irfan Kurniawan

Economics and Finance in Indonesia

During the Soeharto Era corruption was considered to grease the wheels of growth in Indonesia, a country once considered to be the most corrupt country in the world. Indonesia began to experience instantaneous decentralization and democratization after the Soeharto Era abruptly ended. While vastly celebrated, these episodes have their unintended consequence: coercive regulation. We employed the extensive firm-level Large and Medium Manufacturing (Industri Besar Sedang/IBS) census data combined with the Indonesian Democracy Index (Indeks Demokrasi Indonesia/IDI) at provincial level spanning from 2009 to 2015 and found that bribery hampered Indonesian firm output and productivity growth by 9.8% and 12.6%, respectively. …


Public Health Spending, Governance Quality And Poverty Alleviation, Mohamad Komarudin Dec 2020

Public Health Spending, Governance Quality And Poverty Alleviation, Mohamad Komarudin

Economics and Finance in Indonesia

Poverty alleviation has become the main priority program in most developing countries. This research empirically studies the correlation between public health spending, governance quality, and poverty alleviation in developing countries. The panel data were estimated via a random-effects (RE) model and robustness check using instrumental variables (IV) (two-stage least-squares [2SLS]) and first-difference generalized method of moments (GMM) because of the endogeneity problem. The results suggest that public health spending has a significant effect on reducing the poverty rate, and that countries with better governance tend to reduce poverty than countries with poor governance. Increasing public health spending by one percentage …


Business Vulnerability And Credit Access For Agriculture-Based Micro And Small Women Entrepreneurs, Dewi Ratna Sjari M Dec 2020

Business Vulnerability And Credit Access For Agriculture-Based Micro And Small Women Entrepreneurs, Dewi Ratna Sjari M

Economics and Finance in Indonesia

Micro and Small Industries (MSIs) constitute the largest share of Indonesia's manufacturing sector and play an important role in providing employment opportunities and value-added creation. However, their business sustainability and scaling up are often hindered by various factors, one of which is access to credit. The subsidized loan scheme provided by the government, namely People's Business Credit (KUR), appears to be insufficiently attractive to entrepreneurs, especially to Micro and Small Women Entrepreneurs (MSWEs). Employing a logit regression method and utilizing the BPS-Statistics Indonesia's 2015 MSI survey data, this study aims to investigate factors affecting MSWEs decision to apply for bank …


The Role Of Banking Services In Determining The Destination Countries For Indonesia's Non-Oil And Gas Export, Rini Satriani Dec 2020

The Role Of Banking Services In Determining The Destination Countries For Indonesia's Non-Oil And Gas Export, Rini Satriani

Economics and Finance in Indonesia

This study aims to examine whether the risk factor and banking services play a significant role in determining not only the export performance of a country but also the pattern of export destination markets, with the reference to the case of Indonesia. These two indicators are interrelated because the risk factor in export transactions can be mitigated by banking sector. Using the data of export Letter of Credits (LCs) for non-oil and gas exports of Indonesia as a banking instrument to mitigate special risk transactions to 102 export destination countries as well as a panel data methodology for the 2011-2018 …


A Decomposition Analysis Of Fertility: Evidence From Dki Jakarta And East Nusa Tenggara, Farma Mangunsong Dec 2020

A Decomposition Analysis Of Fertility: Evidence From Dki Jakarta And East Nusa Tenggara, Farma Mangunsong

Economics and Finance in Indonesia

Fertility control has been one of the priorities of development in Indonesia. However, the 2000 and 2010 population censuses showed an increase in fertility indicators. To identify the sources of increased fertility in developed and less developed areas, DKI Jakarta and East Nusa Tenggara Provinces were selected for comparison. Using 2000 and 2010 census data, the decomposition analysis shows that the increase in Total Fertility Rate (TFR) of DKI Jakarta was dominated by the increase in nuptiality rate, while the increase in TFR of East Nusa Tenggara was mainly caused by the increase in Marital Fertility Rate (MFR). The highest …


Islamic Financial Literacy Index Of Students: Bridging Sdgs Of Islamic Finance, Arief Dwi Saputra, Alfina Rahmatia Dec 2020

Islamic Financial Literacy Index Of Students: Bridging Sdgs Of Islamic Finance, Arief Dwi Saputra, Alfina Rahmatia

Economics and Finance in Indonesia

This research aims to measure the level of Islamic financial literacy among students by reviewing 2 dimensions, 8 variables, and 33 indicators obtained from literature studies and experts. This study applied mix method to qualitative and quantitative data with a total sample of 273 respondents. The data were obtained from interview and online FGD and then processed by word similarity analysis as well as validity and reliability tests, the results of which are used as reference and conclusion. The analysis shows that the level of understanding of financial literacy among students remains significantly low, proven by the value of the …


The Impact Of Disparity In Infrastructure Development On Aceh's Economic Performance: An Inter-Provincial Analysis, Mutiara Fahmi Dec 2020

The Impact Of Disparity In Infrastructure Development On Aceh's Economic Performance: An Inter-Provincial Analysis, Mutiara Fahmi

Economics and Finance in Indonesia

This study provides empirical findings on regional disparity in infrastructural facilities in 23 districts/municipalities of Aceh Province and the impact of the disparity on the economic performance of Aceh Province, specifically on those of economic growth, poverty, and unemployment. The unit of analysis is the district level and the Infrastructure Development Index (IDI) is used as the variable computed by using the multivariate method. Regional disparity is measured by the Coefficient of Variation and the impact of IDI on the provinces economy is analyzed using the econometric model. The analysis shows that infrastructure development disparity exists and that IDI generally …


The International Tourism Performance Amidst Several Intervention Events: More Than 20 Years Of Multi Input Intervention Analysis In Bali, Jakarta, And Kepulauan Riau Provinces, Taly Purwa Dec 2020

The International Tourism Performance Amidst Several Intervention Events: More Than 20 Years Of Multi Input Intervention Analysis In Bali, Jakarta, And Kepulauan Riau Provinces, Taly Purwa

Economics and Finance in Indonesia

As one of the priority sectors in economic development of Indonesia, tourism is expected to be the main key in accelerating economic and social growth, hence reducing poverty. The tourism performance, especially international tourism market, is highly prone to intervention events that can reduce the number of inbound tourists and produce a negative impact on economic development of the destination country. Therefore, anticipating and mitigating various intervention events is necessary to maintain the performance of the tourism sector in Indonesia. This study investigates the magnitude and patterns of impact of several intervention events on the number of international visitor arrivals …


Enhancing Resilience To Turbulent Global Financial Markets: An Indonesian Experience, Febrio Kacaribu Jun 2020

Enhancing Resilience To Turbulent Global Financial Markets: An Indonesian Experience, Febrio Kacaribu

Economics and Finance in Indonesia

In the empirical literature, large and abrupt declines in capital inflows, or sudden stops, typically hit asset markets and generate output losses in the receiving countries. The significant decrease in capital flows to emerging markets in 2018 is a unique opportunity to test this premise. Using Indonesian data, we found that the sharp decline in capital inflows for over two consecutive quarters in 2018 had an adverse impact on the currency, equities, and bond markets, but no discernible output loss was recorded. Real GDP growth remained resilient throughout 2018 and held broadly steady at around 5 percent in the first …


The Impact Of Entrepreneurship On Economic Performance In Indonesia, Yohanes Kadarusman Jun 2020

The Impact Of Entrepreneurship On Economic Performance In Indonesia, Yohanes Kadarusman

Economics and Finance in Indonesia

Entrepreneurship is claimed to have a positive and significant effect on economic growth in developed countries, but less so in developing countries. Using the growth model, this study examines the impact of entrepreneurship on economic performance in Indonesia as indicated by economic growth and income per-capita from 1985 to 2017. The estimation result confirms the non-significant effect of the growth of entrepreneurial ventures on the growth of GDP per-capita. However, the accumulation of the ventures has a positive and significant effect on the level of GDP per capita. The different typology of entrepreneurial ventures in Indonesia provides some insight to …


The Impact Of Human Capital On Shadow Economy In Indonesia, Neli Agustina Jun 2020

The Impact Of Human Capital On Shadow Economy In Indonesia, Neli Agustina

Economics and Finance in Indonesia

Shadow economy is a market for legal and illegal goods and services that escape recording and estimation of GDP. It can cause inaccurate estimation of GDP, declining tax revenue, and less precise economic policies. Improving the quality of human capital, both in education and health dimensions, can reduce shadow economy. The research aims to estimate shadow economy and analyze the influence of the quality of human capital on shadow economy in Indonesia. Applying time series multiple linear regression analysis, the findings show that the average shadow economy in Indonesia is 28.97 percent, changes in life expectancy negatively affect changes in …


Book Review: Central Bank Policy: Theory And Practice, Denny Irawan Jun 2020

Book Review: Central Bank Policy: Theory And Practice, Denny Irawan

Economics and Finance in Indonesia

No abstract provided.


Gender Differences In Children's Non-Leisure Activities: A Decomposition Analysis, Dayang Haszelinna Abang Ali Jun 2020

Gender Differences In Children's Non-Leisure Activities: A Decomposition Analysis, Dayang Haszelinna Abang Ali

Economics and Finance in Indonesia

The prevalence of son preference indicates that girls will have less leisure time compared to boys. This study aims to examine gender differences in weekly hours in schooling, housework, and working among children in Indonesia using Tobit Model and decomposition model of Bauer & Sinning (2005), to test whether son preference explains the differences. The dataset was drawn from the fourth wave of Indonesia Family Life Survey (IFLS) in 2007. The results show significant gender differences in housework and working for children aged 5-14 years and insignificant gender gap in schooling for both age groups. These results confirm the existence …


Corporate Income Tax Rate And Foreign Direct Investment: A Cross-Country Empirical Study, Amalia Indah Sujarwati Jun 2020

Corporate Income Tax Rate And Foreign Direct Investment: A Cross-Country Empirical Study, Amalia Indah Sujarwati

Economics and Finance in Indonesia

This study aims to explore the impact of Corporate Income Tax Rate (CITR) on Foreign Direct Investment (FDI), specified based on income levels of countries. Using an unbalanced fixed-effect method of 112 countries over the period of 2003-2017, our finding shows that CITR has no significant impact on FDI. Corporate Income Tax (CIT) is levied on all firms, and as CIT is generally more complex than other types of taxes, its influences on FDI are in question. Excluding tax havens from the sample, our findings show that CITR has a weak significance only in the lower-middle-income and low-income countries.


The Contribution Of Islamic Banks Towards The Achievement Of Sustainable Development Goals: The Case Of Indonesia, Nunung Ghoniyah Dec 2019

The Contribution Of Islamic Banks Towards The Achievement Of Sustainable Development Goals: The Case Of Indonesia, Nunung Ghoniyah

Economics and Finance in Indonesia

This study aims to strengthen the opinion that the main goal of Islamic banks is not to obtain profit, but rather to improve the standards of living. In this study, the evidence is obtained by processing secondary data on Islamic banks in Indonesia during the period of 2011 to 2017 by using panel data regression model. The results of the data analysis support the hypothesis that banks whose goals are aimed at falah will demand lower payment obligations from customers, allowing the customers to manage funds in the real sector. The implication is also strengthened by good financial quality control, …


Book Review: Indonesia's Digital-Based Economic Transformation: The Emergence Of New Technological, Business, Economic, And Policy Trends In Indonesia, Anika Widiana Dec 2019

Book Review: Indonesia's Digital-Based Economic Transformation: The Emergence Of New Technological, Business, Economic, And Policy Trends In Indonesia, Anika Widiana

Economics and Finance in Indonesia

No abstract provided.


The Effect Of School Operational Assistance Program On Investment In Education By Households: Evidence From Indonesia, Nia Pramita Sari Dec 2019

The Effect Of School Operational Assistance Program On Investment In Education By Households: Evidence From Indonesia, Nia Pramita Sari

Economics and Finance in Indonesia

The School Operational Assistance Program, referred to as BOS, is a demand intervention program indirectly provided by the government of Indonesia to students through schools, started in July 2005. This paper examines the impact of BOS on educational investment by households and other expenditure such as food and non-food consumption. Using the observations of 1,161 households with at least one member studying in public school from the fourth wave of the Indonesian Family Life Survey (IFLS 4), we discover that BOS is effective in relaxing household's budget constraint, thus increasing educational investment by households. We also discover that households with …


Corruption And Economic Growth In Asean Member Countries, Anisah Alfada Dec 2019

Corruption And Economic Growth In Asean Member Countries, Anisah Alfada

Economics and Finance in Indonesia

This study examines the effect of corruption on economic growth and determines the corruption threshold in nine ASEAN member countries in 1999-2016. This study assesses whether the effect of corruption is growth-enhancing or growth-deteriorating in different corruption threhsolds using a sample-splitting and threshold model. In contrast to the existing literature, this study does not group countries based on income level and therefore can reveal the corruption level of a country relative to a corruption threshold. The estimation results show that the adverse effect of corruption on economic growth is stronger for countries with corruption levels above the second threshold of …


Utilization Of Free Trade Agreement In Indonesia: Firm-Level Data Analysis Of The Yogyakarta Special Region, Nadira Asrifa Nasution Dec 2019

Utilization Of Free Trade Agreement In Indonesia: Firm-Level Data Analysis Of The Yogyakarta Special Region, Nadira Asrifa Nasution

Economics and Finance in Indonesia

This study aims to observe the utilization of Free Trade Agreement (FTA) in the Special Region of Yogyakarta. The findings are obtained by processing primary data collected from in-depth interviews and a survey of firms by applying descriptive analysis. The findings show that FTA is utilized by merely 44% of the total population of 64 firms in Yogyakarta. The benefits of FTA obtained by firms include market access, ease of processing custom documents, and lower preferential tariffs. However, the disadvantages include onerous document requirements, limited information, and difficulties in understanding regulations. Another issue related to the utilization of FTA concerns …


Promoting The Indonesian Special Economic Zones For Tourism: Lessons From Mandalika And Tanjung Kelayang, Latif Adam Aug 2019

Promoting The Indonesian Special Economic Zones For Tourism: Lessons From Mandalika And Tanjung Kelayang, Latif Adam

Economics and Finance in Indonesia

This paper aims to analyze the design and implementation of the policy to develop tourism special economic zones (TSEZs) in Indonesia with special reference to Mandalika and Tanjung Kelayang. Using descriptive analysis, it is revealed that these TSEZs have not attracted many investors yet. The policy design to promote the two TSEZs is unattractive, unclear, and at odds with the characteristics of the tourism sector. Furthermore, the implementing institutions have insufficient capacity and professionalism to implement the policy. Various critical actions are necessary to take. First, accelerating the provision of infrastructure. Second, clarifying several regulations to be in compliance with …


Economic Inequality, Regional Development, And Internal Migration In Indonesia, Khoirunurrofik Khoirunurrofik Aug 2019

Economic Inequality, Regional Development, And Internal Migration In Indonesia, Khoirunurrofik Khoirunurrofik

Economics and Finance in Indonesia

This study aims to probe the determinants of inter-provincial migration flows in Indonesia and how economic and development changes affect migration patterns. We employ three census periods, 1990, 2000, and 2010. Our study finds that an increase in relative inequality between origin and destination provinces decreases inter-provincial migration and relatively high distance elasticity in Indonesia leads to high migration cost. People are more inclined to migrate due to push factors as opposed to pull factors from the destination region, thus indicating a strong relationship between the level of regional development and the willingness of people to migrate.


Microcredit Accessibility In Rural Households: Evidence From Indonesia, Danang Budi Santoso Aug 2019

Microcredit Accessibility In Rural Households: Evidence From Indonesia, Danang Budi Santoso

Economics and Finance in Indonesia

Extant literature suggests that microcredit may improve borrowers social and economic welfare. This study aimed to investigate the microcredit accessibility of rural households in Indonesia. Binary Logistic regression was used to distinguish the characteristics of microcredit borrowers and non-borrowers, and the factors affecting the approval of microcredit application. Primary data was collected through a survey on 488 rural households in Bantul, Yogyakarta. The empirical results suggested that age, marital status and education attainment significantly affect the characteristics of clients and non-clients of microcredit. The results also revealed that age of borrowers, household income, interest rates, and loan duration are key …


Does Gender Diversity In The Boardroom Improve Firm Performance? Evidence From Indonesia, Pananda Pasaribu Aug 2019

Does Gender Diversity In The Boardroom Improve Firm Performance? Evidence From Indonesia, Pananda Pasaribu

Economics and Finance in Indonesia

This study investigates board gender diversity in Indonesia's listed firms and its effect on firm performance from 2011-2016. After addressing the endogeneity of diversity, the results in this paper show that the proportion of female in the boardroom marginally improve firm performance. Firms with two or more female in the boardroom have a stronger impact on firm performance than firms with one female in the boardroom, consistent with the critical mass effect. Finally, certain sectors will gain more benefits of appointing females in the boardroom. The results suggest that increasing gender diversity in the boardrooms can have beneficial effects on …