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Economics and Finance in Indonesia

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Economic Impact Of Imposing Excise Tax On Plastic Bottles Of Drinks, Eugenia Mardanugraha Apr 2018

Economic Impact Of Imposing Excise Tax On Plastic Bottles Of Drinks, Eugenia Mardanugraha

Economics and Finance in Indonesia

This research simulates the effect of imposing excise tax on plastic container of drinks towards economic performance of beverage industry in Indonesia and governments ´Zs tax revenue. The results showed that by imposing excise tax on plastic cups and plastic bottles the government would lose tax revenue from value added tax (PPN) and corporate income tax (PPh badan) more than they gain additional revenue from excise tax. Hence, imposing excise tax on drink containers should serve a clear purpose and an undeniable reason. This paper recommends the government to develop proper excise infrastructure to extend the goods or services to …


Provinces And Local Government Revenues Structures And Intra-Province Economic Disparity, Riatu Qibthiyyah Apr 2018

Provinces And Local Government Revenues Structures And Intra-Province Economic Disparity, Riatu Qibthiyyah

Economics and Finance in Indonesia

One of major policies of Indonesia Decentralisation is the adoption on various type of revenue sharing among provinces and local governments and also the devolved of taxes to lower level government in particular to the province level. Challenges of policy toward higher degree of revenue autonomy, is that an increase in revenue sharing as well as devolved taxes would enhance economic disparity among regions. Further, our finding shows that different types of revenue sharing seem to have different effect on intra-province economic disparity.


Indonesia Poverty Reduction Strategies: Shifting Policies To Promote Employment In The Poorest Four Deciles, Ardi Adji, Sri Hartini Rachmad Apr 2018

Indonesia Poverty Reduction Strategies: Shifting Policies To Promote Employment In The Poorest Four Deciles, Ardi Adji, Sri Hartini Rachmad

Economics and Finance in Indonesia

This paper observes the working status and conditions of people who fall into the poorest four deciles in Indonesia. The research aims to provoke policy shifts in the drive to accelerate poverty reduction in Indonesia, taking a longer view of people being more employable and less dependent; also identifying the dominant factors preventing people from moving out of poverty and improving their life quality. By comparing elements of gender, age, education and health against employment status and opportunities. Simultaneously social assistance and protection programs are evaluated in relation to their stated target groups to determine their suitability and their impact.


Revenue And Distributional Impact Analysis Of Indonesian Personal Income Tax Reform In 2008, Bimo Wijayanto, Yogi Vidyattama Dec 2017

Revenue And Distributional Impact Analysis Of Indonesian Personal Income Tax Reform In 2008, Bimo Wijayanto, Yogi Vidyattama

Economics and Finance in Indonesia

Since 1983, Indonesian tax policy has been the subject of ongoing reforms in order to replace the old colonial tax arrangements, reduce income dependency from oil and gas, decrease the government's foreign debt and maintain its fiscal sustainability. Nevertheless, after 25 years of reform, actual Indonesian tax performance is still far from what might have been expected as Indonesia have one of the lowest total tax ratios among the ASEAN countries. This research show that the most recent changes put in place may have reduced potential tax revenue from personal income but an increase in the compliance rate.


Tourism And Economic Development In Asean 1998-2013, Umara Ardra, Berly Martawardaya Dec 2017

Tourism And Economic Development In Asean 1998-2013, Umara Ardra, Berly Martawardaya

Economics and Finance in Indonesia

Many countries support government policies to encourage tourism sector, including ASEAN countries, due to an assumption that tourism contributes positively to GDP and poverty reduction. This study investigates that assumption, as well as the correlation between tourism and HDI, by applying panel data regression to eight ASEAN countries (Brunei Darussalam, Indonesia, Laos Singapore, Malaysia, Thailand, the Philippines, and Vietnam,) during 1998-2013. We found that the number of international tourist arrivals as a proxy variable for tourism have a significant and positive correlation with poverty reduction. Tourism is also proven to increase GDP per capita (albeit in a smaller magnitude) and …


Mapping Persons With Disabilities (Pwds) In Indonesia Labor Market, Dr. Alin Halimatussadiah, Chaikal Nuryakin Dec 2017

Mapping Persons With Disabilities (Pwds) In Indonesia Labor Market, Dr. Alin Halimatussadiah, Chaikal Nuryakin

Economics and Finance in Indonesia

The empowerment of Persons with Disabilities (PWD) has recently attracted the attention of the Indonesian government. Several initiatives have been made to empower their life, especially the establishment of Act No. 8/2016 which enhances their right to inclusive economic activities. This study aims to map PWD in Indonesian labor market. Specifically, it analyzes the characteristics of employed and unemployed PWD. It explored Labor Force Survey (Sakernas), which began to concern on disability issue in 2016. The results show that PWD prevalence varies highly among provinces led by West Sumatera, East Nusa Tenggara, and South Sulawesi and that PWD has lower …


Types And Severities Of Export Barriers: Evidence From Indonesian Smes, Mohamad Revindo Dec 2017

Types And Severities Of Export Barriers: Evidence From Indonesian Smes, Mohamad Revindo

Economics and Finance in Indonesia

Small and Medium-sized Enterprises (SMEs) are more constrained to export than their large counterparts and SMEs' limited participation in export market is more prevalent in developing than in developed countries. Extant literature suggests that SMEs encounter a set of export inhibiting factors distinct to those faced by large firms and therefore accurate identification of export barriers is crucial in fostering SMEs export. This study investigates the export barriers faced by Indonesian SMEs. The evidences were collected from 271 exporting SMEs and 226 non-exporting SMEs in seven provinces in Jawa, Madura and Bali regions. The results show that the types and …


Determinants Of Port Performance - Case Study Of 4 Main Ports In Indonesia (2005-2015), Atika Aqmarina Dec 2017

Determinants Of Port Performance - Case Study Of 4 Main Ports In Indonesia (2005-2015), Atika Aqmarina

Economics and Finance in Indonesia

Port plays significant role in supporting economic growth of a country. This study aims to analyze the determinant of port performance in Indonesia. In this research, the ports selected are four main ports in Indonesia which are Port of Belawan, Port of Tanjung Priok, Port of Tanjung Perak, and Makassar. These ports are designed as the hub ports in the national sea transport system of the country. The study used pooled OLS as the methodology to analyze the determinant. The result of this studies shows that total traffic is not influenced by operating surplus per ton, whereas the rest of …


Accelerating Financial Inclusion Through Non-Cash Assistance: Exploring Factor Affecting Beneficiaries Perception, Sartika Djamaluddin Dec 2016

Accelerating Financial Inclusion Through Non-Cash Assistance: Exploring Factor Affecting Beneficiaries Perception, Sartika Djamaluddin

Economics and Finance in Indonesia

Distribution of social assistance through a non-cash system is a new government breakthrough to increase transfer effectiveness and promote financial inclusion. After the pilot project in 2014, the recent study found that there is a number of beneficiaries who feel the non-cash system is difficult. Therefore they use non-cash facilities to get the transfer only and do not want to use for other financial services. This fact could become an obstacle to financial inclusion. This study aims to investigate what factors influence beneficiaries perception to use non-cash system. We conducted a survey of 139 non-cash beneficiaries in Kabupaten Cirebon, West …


How Congested Jakarta Is? Perception Of Jakarta’S Citizen On Traffic Congestion, Muhammad Halley Yudhistira Dec 2016

How Congested Jakarta Is? Perception Of Jakarta’S Citizen On Traffic Congestion, Muhammad Halley Yudhistira

Economics and Finance in Indonesia

This paper aims to reveal the behavior and perception of Jakarta's citizens on traffic congestion in Jakarta. Although this approach is somewhat well-developed in behavioral science, its utilization in urban economics study, is still limited. Detecting the traffic congestion and its cause mainly relies on physical (engineering) methods, i.e V/C ratio. Here, we define the traffic congestion through two variables; ordinal traffic congestion perception and proportion of expected travel time to perceived travel time. Using a non-probabilistic sampling survey held in one of densest business district in Jakarta called Sudirman-Thamrin Golden Triangle Area; the estimation results show that travel behavior …


Export Stimuli, Export Stages And Internationalization Pathways: The Case Of Indonesian Smes, Mohamad D. Revindo Dec 2016

Export Stimuli, Export Stages And Internationalization Pathways: The Case Of Indonesian Smes, Mohamad D. Revindo

Economics and Finance in Indonesia

Small and Medium-sized Enterprises (SMEs) in developing countries are still constrained to seize the opportunity of trade liberalization as compared to their large counterparts. It has been argued that effective efforts to foster SME export require clear understanding of the factors that stimulate them to export. This study investigates the export stimuli of 385 Indonesian SMEs at different export stages (pre-exporting and exporting) and different internationalization pathways (domestically established exporter and born-global SMEs). Three types of export stimuli are consistently identified as the most important in all sub-samples: the presence of foreign buyers, the confidence in the products and the …


Child Labour In Indonesia: Supply-Side Determinants, Dayang Haszelinna Binti Abang Ali, G. Reza Arabsheibani Dec 2016

Child Labour In Indonesia: Supply-Side Determinants, Dayang Haszelinna Binti Abang Ali, G. Reza Arabsheibani

Economics and Finance in Indonesia

This study analyses the determinants of working among 10-17 years children and to investigate the presence of Luxury Axiom. Child tends to work as they gets older, has biological ties to the household head and lives in a rural area. The higher levels of household heads education lead to the childrens been less likely to work. With regard to the Luxury Axiom, household income is negatively impact the work decision. Birth order is positively related to working and the probability of working decreases by the presence of employed adult. Finally, the impact of the childs activities varies by provinces.


Local Government Forestry Expenditure And Forest Land Cover: A Preliminary Lesson From Decentralized Indonesia, Firda Hidayati Dec 2016

Local Government Forestry Expenditure And Forest Land Cover: A Preliminary Lesson From Decentralized Indonesia, Firda Hidayati

Economics and Finance in Indonesia

Even though government of Indonesia invests billions of rupiah to tackle deforestation, its effectiveness has been questionable. This study analyses changes in rates of forest cover in Indonesia and their association with forestry expenditures (FE) spent by the provincial governments. Based on 2007 to 2010 data, linear multiple regression results indicate that FE is not enough to tackle the negative change in forest land cover that could represent deforestation. Moreover, it was found that FE have negative association with forest land cover and therefore, can be associated to deforestation. This negative association remains when other factors that affect forest land …


Portfolio Flows Into Indonesia: Push Or Pull?, Chaikal Nuryakin Aug 2016

Portfolio Flows Into Indonesia: Push Or Pull?, Chaikal Nuryakin

Economics and Finance in Indonesia

This paper focuses on the dynamic of the portfolio flows into Indonesia. The result of Structural Vector Autoregression (SVAR) model reveals that push factors is more dominant than pull factors in explaining portfolio flows into Indonesia. Portfolio flows into Indonesia are positively correlated with regionals stock market performance and negatively correlated to the federal funds rate. On the pull factors, domestic risk (the Credit Default Swap spread) is more dominant than domestic return (the BI rate) in explaining the flows. Thus, it is important for authorities to have more focus on domestic risk relative to rate of return in managing …


Lowering Regional Inflation? Improve Budget Absorption, Vid Adrison Aug 2016

Lowering Regional Inflation? Improve Budget Absorption, Vid Adrison

Economics and Finance in Indonesia

The subnational government spending in Indonesia exhibit a highly skewed distribution, i.e., it is very low in the first two-quarters and then increases significantly in the last two-quarters. Such explosive pattern poses two disadvantages. First, the regional output will fall below its optimal level as the low government capital expenditure leads to a fewer provision of public goods. Second, a significant increase in government spending in the later quarter pushes the short run aggregate demand to the northeast and creates an inflationary pressure in the following quarters. In this study, we analyze the effect of quarterly regional government expenditure growth …


Indebtedness And Subjective Financial Wellbeing Of Households In Indonesia, Dwini Handayani Aug 2016

Indebtedness And Subjective Financial Wellbeing Of Households In Indonesia, Dwini Handayani

Economics and Finance in Indonesia

Indebtedness is an element to foresee household financial wellbeing. This vulnerability could be determined objectively and subjectively. Objective financial vulnerability is the objective ability to make ends meet that is analyzed using household income and characteristics. Measurement in subjective welbeing is determined by household perceptions in their ability to make ends meet. Household behavior with different perceptions will behave differently. Indebtedness is analyzed using the Indonesian Family Life Survey (IFLS) 5 with the Ordinary Least Square method. The inferential shows that both objective and subjective financial wellbeing influence household indebtedness. Kedalaman hutang merupakan elemen untuk mengetahui kesejahteraan finansial rumah tangga. …


Determination Of Competition Conventional Bank In Banking Industry In Indonesia, Ciplis Gema Qori'ah Apr 2016

Determination Of Competition Conventional Bank In Banking Industry In Indonesia, Ciplis Gema Qori'ah

Economics and Finance in Indonesia

The aim of this study is to determine the level of concentration and competition behavior of conventional commercial banks in the national banking industry. This study focuses on descriptive analysis and quantitative analysis using panel data regression for 9 conventional commercial banks during 2003-2014. Results of eclectic analysis are supposed that behavior of banks is less competitive due to high levels of concentration in the banking industry. While the results of panel data regression show that the variables of bank interest expense, operating expense, other operating incomes and variable of loanable funds significantly affect the income of conventional banks.


What Are The Challenges In Designing An Effective Personal Income Tax System?, Raeni Raeni Apr 2016

What Are The Challenges In Designing An Effective Personal Income Tax System?, Raeni Raeni

Economics and Finance in Indonesia

This article aims to examine the challenges of designing individual's income tax systems in general and particularly to observe taxpayers behaviour in developing countries. This study used case study approach to gain in depth understanding type of taxpayers attitude towards personal income tax systems. Based on the analyses, tax behaviour, which comprises the perception of fairness and motivation to comply, attracts urgent challenges in designing effective tax on personal income in every country and mainly underdeveloped countries. Every human being in each country has their social pattern towards tax policy. When the individual perception of fairness is significant, it will …


Financial Integration In Asean-5, Laura Grace Gabriella, Revathy Suryanarayana, Vania Esady Apr 2016

Financial Integration In Asean-5, Laura Grace Gabriella, Revathy Suryanarayana, Vania Esady

Economics and Finance in Indonesia

The financial integration in South East Asia has varied over time. This paper focuses on three periods: before, during, and after the global financial crisis in 2008. This paper finds that ASEAN-5 countries have indeed taken a step towards financial integration. While we do not observe any (cointegrating) long-run relationships between the ASEAN-5 countries, we find that there has been a significant increase in the volatility spillovers between them. This is particularly true in the recovery period following the global financial crisis.


Determinants Of Firm Innovation In Indonesia: The Role Of Institutions And Access To Finance, Edo Mahendra, Ubaidillah Zuhdi, Ratnawati Muyanto Dec 2015

Determinants Of Firm Innovation In Indonesia: The Role Of Institutions And Access To Finance, Edo Mahendra, Ubaidillah Zuhdi, Ratnawati Muyanto

Economics and Finance in Indonesia

This paper investigates the determinants of firm innovation in Indonesia. Using quality of local regulations index constructed by the Indonesia's Regional Autonomy Watch (KPPOD) as measure of institutions, We found that better institutional quality at the local level was associated with more innovation and that firms experiencing major obstacle in access to finance were less likely to innovate. Access to finance is more critical for small and medium enterprises (SMEs) whereas institutional quality is more important for large firms. The positive impact of better institutions on innovation is asymmetrically distributed. Better local institutional quality disproportionately benefited non-constrained firms.


Managing Productivity In The Infrastructure Sector: A Case Study From Indonesia, Eric R. W. Knight Dec 2015

Managing Productivity In The Infrastructure Sector: A Case Study From Indonesia, Eric R. W. Knight

Economics and Finance in Indonesia

This paper considers the nature of assessing productivity and effectiveness in infrastructure investment in the context of governments increasing investment in new infrastructure. Taking the case of energy infrastructure investment within Indonesia, this paper makes three contributions: (i) develops a model for assessing infrastructure productivity based on landscape, regime and niche-level changes, (ii) suggests the interconnection between these levels based on sequencing multi-level changes over time, and (iii) shows the role of supply and demand side initiatives in enabling new infrastructure investment is evaluated.


Unequal Impact Of Price Changes In Indonesia, Ruly Pratikno, Mohamad Ikhsan Dec 2015

Unequal Impact Of Price Changes In Indonesia, Ruly Pratikno, Mohamad Ikhsan

Economics and Finance in Indonesia

The main idea of this study is to determine the impact of relative inflation on poverty incidents and to investigate whether inflation inequality has occurred in Indonesia. Interesting results were found at regional level. Firstly, Jakarta had different poverty response with respect to price increases. Processed food and transportation inflation were more imperative for the poor in Jakarta. Secondly, the poor in province with low poverty figures were more prone to inflation. In general, the results show that food inflation has the major adverse impact on the poor. Moreover, we found that inflation in Indonesia has not been pro-poor.


Oil Exploration Economics: Empirical Evidence From Indonesian Geological Basins, Hari Patria, Vid Adrison Dec 2015

Oil Exploration Economics: Empirical Evidence From Indonesian Geological Basins, Hari Patria, Vid Adrison

Economics and Finance in Indonesia

Oil exploration has been subject to economic research for decades. Earlier studies of exploration models are mostly discussed the behavior of exploration at the macro-level analysis such as field, firm, region, and continental. This paper then focuses on the geological and economic factors that determine the well-drilling decision at the micro-level using disaggregated panel data of 32 geological basins in Indonesia over the period of 2004-2013. This study shows that the number of drilled wells is determined significantly by the lag of success rate, lag of discovery size, lag of global oil price, and regional location of geological basin.


Revisiting Stock Market Integration Pre-Post Subprime Mortgage Crisis: Insight From Bric Countries, Rayenda Brahmana, Chin-Hong Puah, Kai-Hung Wong Aug 2015

Revisiting Stock Market Integration Pre-Post Subprime Mortgage Crisis: Insight From Bric Countries, Rayenda Brahmana, Chin-Hong Puah, Kai-Hung Wong

Economics and Finance in Indonesia

This study revisits the long-run relationships and short-run dynamic causal linkages among BRIC stock market, with the particular attention to the 2008 subprime mortgage crisis. Extending related empirical studies, comparative analyses of pre-crisis, and post-crisis periods were conducted to comprehensively evaluate how stock market integration was affected by financial crises. In general, after employing cointegration test and VAR test, the results reveal the increase of stock market integration in BRICs after the subprime crisis. The evidence also found that China stock market is the most influential among the BRICs, in which China stock market has the ability to Granger cause …


"Does Inflation Targeting Framework Make A Significant Difference In Lowering Price Level?" What Is Its Implication To Indonesia's Inflation Rate?, Faisal Rachman Aug 2015

"Does Inflation Targeting Framework Make A Significant Difference In Lowering Price Level?" What Is Its Implication To Indonesia's Inflation Rate?, Faisal Rachman

Economics and Finance in Indonesia

In the last two decades many countries have been starting to employ Inflation Targeting Framework (ITF) as their main monetary policy framework. This is done to achieve an objective of anchoring public expectation on inflation which in the end will steer the price level movement towards ITF's ultimate target of relatively low and stable inflation rate. By conducting Difference-in-Difference method on panel data consisting of five countries implementing ITF since 2001 and twenty-one selected non-ITF countries for period 1990-2010, it is statistically proved that ITF adoption has a significant effect on inflation. In case of Indonesia, through Structural Break approach, …


Rural Electrification Program In Indonesia: Comparing Sehen And Shs Program, Maxensius Tri Sambodo Aug 2015

Rural Electrification Program In Indonesia: Comparing Sehen And Shs Program, Maxensius Tri Sambodo

Economics and Finance in Indonesia

In 2014, the Indonesian government has targets to obtain 80% of electrification ratio and 98.9% of rural electrification ratio. Extending the grid and off-grid connection has been done to obtain the targets. This paper aims to compare two main programs on rural electrification namely Super Extra Energy Saving (Super Ekstra Hemat Energi, SEHEN) that is belong to PLN (state owned company in electricity) and the Solar Home System (SHS) that is financed by the Ministry of Energy and Mineral Resources (MEMR). Indonesia has started the rural electrification program in the late 1950s, but how to provide electricity in a sustainable …


Current Account And Real Exchange Rate Dynamics In Indonesia, Firman Mochtar, Yoga Affandi Aug 2015

Current Account And Real Exchange Rate Dynamics In Indonesia, Firman Mochtar, Yoga Affandi

Economics and Finance in Indonesia

We analyze the role of both permanent and temporary factors in affecting the Indonesian current account and real exchange dynamics before and after 2000. Adopting Lee and Chinn (1998; 2006) approach as well as Chinn et al. (2007), two results stand out. First, we confirm that the behavior of the real exchange rate has altered since 2000. Identifications show that permanent shocks are the primary causes for the movements of the real exchange rate after 2000, while in the period before 2000, the Indonesian real exchange rates changes are characterized by greater dominance of temporary shocks. The apparent change in …


Improving Human Capital Through Better Education To Support Indonesia's Economic Development, Latif Adam, Siwage Dharma Negara Aug 2015

Improving Human Capital Through Better Education To Support Indonesia's Economic Development, Latif Adam, Siwage Dharma Negara

Economics and Finance in Indonesia

Despite Indonesia's impressive economic growth, it still lags behind other countries with a similar income level in terms of the quality of its human capital. This paper argues that one key factor explaining this low quality of human capital relates to the lack of focus and clear strategies to develop its education system. This paper attempts to assess Indonesia's current state of human capital development with particular focus on it's education sector. In order to benefit from its demographic bonus, Indonesia needs to to improve its current education and skill training system. Better education and skill training system will support …