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Dynamics of the underground economy in border areas: A case study of Indonesia-Timor Leste Nalle, Frederic Winston; Suman, Agus; Kaluge, David; Ekawati, Marlina
Jurnal Perspektif Pembiayaan dan Pembangunan Daerah Vol. 13 No. 4 (2025): Jurnal Perspektif Pembiayaan dan Pembangunan Daerah
Publisher : Program Magister Ilmu Ekonomi Pascasarjana Universitas Jambi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22437/ppd.v13i4.41879

Abstract

The underground economy in border regions represents a complex phenomenon shaped by regulatory gaps, limited access to formal economic systems, and high transaction costs in legal trade. This study analyzes the dynamics of informal cross-border trade along the Indonesia–Timor-Leste border, focusing on North Central Timor (TTU) Regency and the Oecusse Enclave. Employing a qualitative descriptive approach, the research draws on field observations, semi-structured interviews, and thematic analysis to demonstrate that underground economic activities function not only as a survival strategy but also as an informally institutionalized, socially organized economic ecosystem. The findings reveal that price disparities, weak supervision, and limited institutional capacity collectively drive communities’ dependence on illicit trade. A comparative analysis of similar cases from international border regions highlights the need for policy responses tailored to local contexts. The study recommends strengthening bilateral cooperation, adopting surveillance technologies suited to regional capacities, and implementing community-based economic empowerment programs to facilitate the transition toward an inclusive and sustainable formal economy.
Inclusiveness of economic development in the multidimensional perspective in provinces in Indonesia Susilowati, Dwi; Suman, Agus; Susilo, Susilo; Prasetyia, Ferry
Jurnal Ekonomi & Studi Pembangunan Vol. 26 No. 2: October 2025
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18196/jesp.v26i2.27485

Abstract

Achieving genuinely equitable and sustainable national progress depends on understanding and effectively measuring inclusive economic development, a complex and often elusive goal. Despite Indonesia's sustained economic growth over the past decade, questions persist about the extent to which this progress has translated into inclusive outcomes across regions and dimensions of well-being. This study addresses the empirical gap in comprehensive measurement by developing and applying a rigorous quantitative framework to estimate the Inclusive Economic Development Index across 34 Indonesian provinces from 2011 to 2023. Using national data from Statistics Indonesia (BPS) and supplementary records from other government bodies, we construct province-level inclusive development scores that encompass multiple dimensions of inclusive economic development, including economy, social factors, political aspects, ICT, governance, and the environment. The findings reveal significant variation in inclusive development across provinces, with West Sumatra, West Java, and Bali leading in the 4-dimensional model; West Sumatra, Maluku, and Aceh in the 5-dimensional model; and Maluku, East Nusa Tenggara, and East Kalimantan in the 6-dimensional model. Despite these provincial disparities, overall inclusivity levels demonstrate relative consistency. Nationally, the index fluctuated during the period, peaking at 4.65 in 2011 and hitting a low of 3.75 in 2022, resulting in an average of 4.18. These results underscore that inclusive development remains a persistent systemic and structural challenge for Indonesia.
An empirical analysis of profit-and-loss sharing financing in Indonesian Islamic banks Suman, Agus; Supriani, Indri; Rajasa, Muhammad Attar Indra; Anisa, Vera Novia
Jurnal Ekonomi & Keuangan Islam Volume 12 No. 1, January 2026
Publisher : Faculty of Economics, Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/JEKI.vol12.iss1.art6

Abstract

Purpose – This study examines the determinants of profit-and-loss sharing (PLS) financing adoption in Indonesia by incorporating bank-specific, macroeconomic, and religiosity variables.Methodology – Utilizing monthly time-series data from October 2014 to October 2023, this research employs the Autoregressive Distributed Lag (ARDL) approach to model both long-run and short-run relationships. The analyzed variables include PLS financing, non-performing financing (NPF), capital adequacy ratio (CAR), total assets (TA), Zakat, Infaq, and Shadaqah (ZIS), the Islamic financing rate, the exchange rate, inflation, and the Industrial Production Index (IPI).Findings – The results indicate that in the short run, PLS financing is significantly influenced by CAR, TA, ZIS, and IPI. In the long run, however, PLS financing is predominantly determined by internal banking factors, specifically CAR and TA. Bank capitalization and asset size are critical to PLS financing dynamics, ensuring stability and responsiveness to internal financial conditions, thereby enhancing its viability within Indonesia’s dual banking system.Implications – The findings suggest that Indonesian regulators and bank policymakers should focus on enhancing the long-term availability of PLS-based financing, establishing standardized monitoring frameworks, and improving financial transparency. Furthermore, fostering innovation in Sharia-compliant products and investing in capacity-building initiatives that integrate Islamic jurisprudence with modern finance are recommended to strengthen the sustainability and competitiveness of PLS financing.Originality – This study contributes to the literature by providing an integrated empirical analysis of both internal bank-specific and external macroeconomic determinants of PLS financing in Indonesia, a comprehensive approach rarely explored in prior research.
PEMBERDAYAAN EKONOMI MASYARAKAT DESA PURWOASRI MELALUI DIGITALISASI UMKM Suman, Agus; Widiyanti, Dwi Retno; Ardina, Sovia
Studi Kasus Inovasi Ekonomi Vol. 10 No. 01 (2026)
Publisher : Program Studi Manajemen, Fakultas Ekonomi dan Bisnis Universitas Muhammadiyah Malang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22219/skie.v10i01.42637

Abstract

Program Pengabdian ini dilaksanakan di Desa Purwoasri, Kecamatan Singosari, Kabupaten Malang, yang memiliki potensi besar di sektor pertanian dan UMKM namun terkendala literasi digital yang rendah. Sebagian besar pelaku UMKM masih mengandalkan metode pemasaran konvensional dan belum terbiasa dengan sistem pembayaran non-tunai. Kegiatan ini bertujuan untuk meningkatkan pemahaman UMKM terhadap pentingnya digitalisasi usaha melalui pelatihan pemasaran online, pencatatan keuangan digital, serta praktik foto produk. Metode pelaksanaan mencakup ceramah, diskusi, pendampingan, dan praktik langsung dengan evaluasi melalui pre-test dan post-test. Hasil menunjukkan peningkatan pemahaman peserta pada seluruh materi, dengan capaian tertinggi pada pembuatan foto produk yang naik 27,0% dari rata-rata 3,46 menjadi 4,40. Peningkatan signifikan ini sejalan dengan kebutuhan utama UMKM yang mayoritas bergerak di sektor pangan dan minuman sehingga sangat bergantung pada kualitas visual produk. Pada materi pencatatan dan pembayaran digital, pemahaman meningkat 9,7% dari 3,83 menjadi 4,20, menandakan adanya adopsi awal meski sebagian peserta yang berusia paruh baya masih membutuhkan waktu beradaptasi. Adapun materi pembuatan akun media sosial hanya meningkat 2,4% dari 4,23 menjadi 4,33, yang dapat dipahami karena peserta telah memiliki pengetahuan dasar sebelumnya. Dengan demikian, program ini terbukti relevan dalam mendukung penguatan kapasitas digital UMKM Desa Purwoasri, terutama dalam aspek promosi visual dan manajemen keuangan berbasis teknologi.
Analysis of the Effects of Socioeconomic Determinants on Income Inequality in Regencies and Cities in Java in the 2017-2024 Period Kamila, Adelia Cahya; Suman, Agus
Journal of Development Economic and Social Studies Vol. 5 No. 2 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

Java Island contributes the largest share to Indonesia’s Gross Regional Domestic Product (GRDP); however, it continues to experience relatively high income inequality. This study aims to examine the socio-economic determinants of income inequality across regencies and cities on Java Island over the period 2017–2024. The analysis employs panel data regression using the Fixed Effects Model, covering 113 regencies and cities. Income inequality is measured using the Gini ratio, while the explanatory variables include sectoral GRDP (primary, secondary, and tertiary sectors), minimum wage, population size, and the Human Development Index (HDI). The empirical results indicate that GRDP in the primary sector and the minimum wage have a positive and statistically significant effect on income inequality. In contrast, GRDP in the secondary sector significantly reduces income inequality. Meanwhile, GRDP in the tertiary sector, population size, and HDI do not exhibit statistically significant effects on income inequality. These findings suggest that income inequality on Java Island is largely influenced by structural economic transformation. Therefore, policy efforts should focus on strengthening labor-intensive industries, modernizing the primary sector, and designing more inclusive minimum wage policies to mitigate income disparities.
The Influence of Education Expenditures and Health Expenditures on Poverty Through HDI (A Case Study: 35 Regencies and Cities in Central Java in the 2018-2023 Period) Maesur Sindi, Amalia; Suman, Agus
Journal of Development Economic and Social Studies Vol. 5 No. 2 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

Poverty reduction remains a critical challenge in regional development, particularly in en-suring that public spending effectively translates into improved welfare outcomes. This study aims to examine the effects of education and health expenditures on poverty, with the Human Development Index (HDI) as a mediating variable. Employing a quantitative approach, the research utilizes panel data from 35 regencies/cities in Central Java Province over the period 2018–2023 and applies path analysis using a Fixed Effect Model (FEM). The results indicate that education and health expenditures do not have a significant direct impact on poverty levels. In contrast, HDI is found to have a significant negative effect on poverty, suggesting that improvements in human development contribute to poverty re-duction. Furthermore, mediation analysis reveals that HDI does not mediate the relation-ship between education expenditure and poverty, but it significantly mediates the effect of health expenditure on poverty. These findings imply that the effectiveness of government spending in reducing poverty depends not merely on budget allocation, but on its capacity to enhance human development outcomes.
KAJIAN PENGARUH PROGRAM NASIONAL UPAYA KHUSUS PENINGKATAN PRODUKSI PADI TERHADAP KEMISKINAN PERDESAAN DI WILAYAH BARAT DAN TIMUR INDONESIA Krisnawati, Estifania; Suman, Agus; Saputra, Putu Mahardika A.
Jurnal Ilmu Ekonomi dan Pembangunan Vol 18, No 1 (2018): Jurnal Ilmu Ekonomi dan Pembangunan
Publisher : EP FEB UNS

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20961/jiep.v18i1.17550

Abstract

Increasing population in Indonesia spur increased demand for rice. On the other hand, national rice production as a rice-producing commodity is not optimal due to limited capital owned by farmers and the number of damaged irrigation infrastructures. This has an impact on the farmers' incomes that are less than optimal and the high poverty rate in rural areas requires public policy in the form of government expenditures, one of which is rolled out through the national program of Special Efforts (UPSUS) for Increasing Rice Production. This study aims to determine the effect of UPSUS funds directly or indirectly to rural poverty in the western and eastern regions of Indonesia. Using path analysis, the findings of the study indicate that the direct impact of the program on poverty is apparent in the eastern region with a positive coefficient. Meanwhile, the indirect effect of program funds on rural poverty through rice production and GDP of the food crops sub-sector shows positive values both in the west and east. As well as the indirect effect of program funds on poverty through rice production occurs only in the eastern region by showing negative coefficients.. Keywords: Government Expenditure, Rural Poverty, UPSUS PAJALEJEL Classification:H5, Q180
THE ROLE OF GOVERNMENT, TRADITIONAL INSTITUTION, AND SOCIAL CAPITAL FOR EMPOWERING SMALL AND MEDIUM INDUSTRIES Ni Nyoman Yuliarmi; Agus Suman; S.M. Kiptiyah; Ahmad Erani Yustika
Journal of Economics, Business, and Accountancy Ventura Vol. 15 No. 2 (2012): August 2012
Publisher : Universitas Hayam Wuruk Perbanas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v15i2.75

Abstract

There are some factors which are deemed to have an effect in empowering the small and mediumindustries (SMIs). This study determines the roles of government, traditional institutions, and socialcapital for the empowerment of SMIs. Purposive Sampling method was used to determine the district/city in the sample. Sample units in each selected district/city were used Stratified RandomSampling method as many as 204 people. Structural Equation Modeling (SEM)-based variance isused as analysis technique aided by program Partial Least Square (PLS). The results showed that:1) the role of government through the relevant agencies has not been able to directly influence theempowerment of SMIs. 2) The role of traditional institutions through social roles, cultural, economicand financial has a positive effect for the empowerment of SMIs. 3) Social capital has a positiveeffect on the role of government to empower SMIs. 4) Social capital has a positive effect on therole of traditional institutions for the empowerment of SMIs. 5) Social capital is not directly affectingthe empowerment of SMIs. 6) The role of government through the relevant agencies has a positiveinfluence on the role of traditional institutions for the empowerment of SMIs.
Investment, Trade, Human Capital, and Economic Growth Alika, Denisya; Suman, Agus
Journal of Development Economic and Social Studies Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

This study examines the relationship between investment, trade, human capital, and economic growth using regional panel data from Riau Islands Province, Indonesia. Investment, international trade integration, and labor quality are commonly regarded as major drivers of long-term growth, yet their effectiveness often varies across regions. This research employs panel data from seven cities during 2010–2024 and applies the Fixed Effect Model with Moderated Regression Analysis. The results indicate that foreign direct investment and labor does not have a significant direct effect on economic growth, while domestic investment has a negative and significant effect. Trade, proxied by net exports, also shows a negative relationship with growth. Human capital, represented by the Human Development Index, has a negative direct coefficient. However, the interaction between foreign direct investment and human capital is positive and significant, indicating that human capital strengthens the contribution of investment to growth. These findings imply that capital inflows and trade openness alone are insufficient to promote sustainable growth without adequate human capital quality. Policies should therefore integrate investment promotion, trade competitiveness, and human resource development.
Analysis of Economic and Social Factors Against Social Security in West Java Auza, Tahta Azzera; Suman, Agus
Journal of Development Economic and Social Studies Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

This study aims to analyze the influence of economic and social factors on crime in West Java from 2014 to 2024. The variables used include GRDP per capita, poverty, social assistance spending, population density, and average years of schooling. The study used a quantitative approach with a panel data regression method in 27 districts/cities in West Java. The results show that GRDP per capita and population density have a positive and significant effect on crime. Meanwhile, poverty and social assistance spending have no significant effect. Average years of schooling showed a significant positive effect on crime. All variables simultaneously influence crime with an Adjusted R² value of 72.1%. These findings indicate that crime in West Java is more caused by structural factors such as urbanization, population density, and development inequality than absolute poverty. Therefore, local governments need to encourage more inclusive development, economic equality, urban area planning, and strengthening social policies to maintain social security stability.
Co-Authors A.S., Putu Mahardika Agatha Christy Permata Sari Agung Yuniarinto Ahmad Erani Yustika Ahmad Erani Yustika Alfian Adiwantomo Alika, Denisya Angga Yanuar Triesmarandita Anisa Fitria Utami Anisa Fitria Utami Anisa, Vera Novia Antariksa Antariksa Aqilla Cinantya Wara Dayinta Ardina, Sovia Armanu - Thoyib Asadyawan Putra Asfi Manzilati Astini, Natasya Dyah Putri Atu Bagus Wiguna Auza, Tahta Azzera Bagyo Yanuwiadi BAIDOWI - - Batik, Karlina Bayu Krisnamurthi Benyamin - Parubak Bintang, Ikhsan Bunga Hidayati Bunga Hidayati DAVID KALUGE David Kaluge Davina Jeihan Zafira Devanto Shasta Pratomo Dias Satria Dwi Budi Santoso Dwi Budi Santoso Dwi Susilowati Dwiki Wicaksono, Dwiki Eka Afnan Troena Eka Intan Kumala Putri Ekawati, Marlina Faisol Muttaqin, Alfin Fauziah, Nurafikatul Febitania, Nabila Zakia Ferry Prasetyia Frederic Winston Nalle Ghozali Maskie Grace Sumbung Habibie, Muhammad Fadhlan HAMAMAH, M.Pd. Haya, Aulia Aqila Hendika S.L. Ibrahim - - Ida Ayu Nyoman Saskara Indah Dewi Nirwana Iswan Noor Jayawarsa, A.A. Ketut Jeany Mandang Jose Rizal Joesoef Kamila, Adelia Cahya Karimah, Haifa Asma Karlina Batik Katili, Annisa Pratiwi Khairani Alawiyah Matondang KHOIRUL ANAM Khusnul Ashar Khusnul Ashar Khusnul Ashar Khusnul Ashar Killian, Pantri Muthriana Erza Kliwon Hidayat Krisnawati, Estifania Lalu Suryadi S M Pudjiharjo M Umar Burhan M. Firmansyah M. Firmansyah M. Umar - Burhan M.S. Idrus Maesur Sindi, Amalia Marlina Ekawaty Matondang, Khairani Alawiyah Muhammad Eko Purnomo Musyaffa, Muhammad Ashari Neli Aida Ni Nyoman Yuliarmi Noer Soetjipto Nur Farida Nuraini, Adinda Putri Nurhuda, M. Paulus Kindangen Pinatih, Ni Komang Desy Arya Prasetya, Lalu Muhammad Azmi Pudjihardjo .. Putu Mahardika A.S. Putu Mahardika Adi Saputra Rachmad Kresna Sakti Rachmad Kresna Sakti Rahel Kimbal Rajasa, Muhammad Attar Indra Renaldy Rakhman Luthfi Riniati Rizaldi, Muhammad Rizki Nufiarni, Rizki Ronny Ersya Novianto Putra Rosyidah, Lathifatul Rudi Masniadi S.M. Kiptiyah Sasongko Sasongko Sasongko Sasongko, Sasongko Satti Wagistina Setiawan, Fredy Nugroho Siti Hamidah Siti Rohima Sitoresmi, Luthfiah Nur Soemarno Soemarno Supriani, Indri Surachman Surachman Susilo . Susilo Susilo Sutrisno - Djaja Treesye I Turang Ubud - Salim Virnanda, Yohana Widiyanti, Dwi Retno Wildan Syafitri Yohanes Hadi Soesilo Yusuf Husain Zuhdiyaty, Noor