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Dynamic Relationship of Macro Variables and Liquefied Petroleum Gas Subsidy Transformation Program Eddy Prabowo; Harianto Harianto; Bambang Juanda; Dikky Indrawan
Binus Business Review Vol. 14 No. 2 (2023): Binus Business Review
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/bbr.v14i2.8557

Abstract

Most Indonesians rely on liquefied petroleum gas as one of their primary sources of energy. Liquefied petroleum gas is classified into subsidized and non-subsidized. Subsidized liquefied petroleum gas is primarily used by low-income households, small businesses, as well as poor fishermen and farmers for cooking. However, no exit strategy has been established to overcome the increase in government spending on subsidized kerosene introduced in 2008. The problem is that macro variables may influence liquefied petroleum gas economic prices. The research aimed to identify the relationship between macro variables that might affect liquefied petroleum gas economic prices. It applied a quantitative method with Vector Auto Regression (VAR) and Vector Error Correction Model (VECM). The results demonstrate that inflation rate have a significant impact on the economic price of liquefied petroleum gas. Then, gross domestic product, inflation rate, and world gas price have positive correlations to the economic prices in liquefied petroleum gas. Meanwhile, currency exchange and world oil price have negative coefficients. The regression model indicates that a rise in inflation increases market prices in liquefied petroleum gas. Furthermore, the increased subsidized fuel means more poor people cannot afford liquefied petroleum gas. It is because high inflation reduces purchasing and potentially increases the number of poor people.
Government Resource Planning-Based Transformation Strategy for Budget Planning System in Planning Division Directorate General of Sea Transportation Hari Ryanto Wiyono; Dikky Indrawan; Irman Hermadi
Eduvest - Journal of Universal Studies Vol. 5 No. 12 (2025): Eduvest - Journal of Universal Studies
Publisher : Green Publisher Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59188/eduvest.v5i12.51843

Abstract

The fragmentation of planning and budgeting systems in government institutions poses significant challenges to operational efficiency and strategic decision-making. This research develops a comprehensive transformation strategy for the budget planning system at the Directorate General of Sea Transportation, Ministry of Transportation, Indonesia. Using As-Is Analysis and Soft System Methodology (SSM), the study examines current system conditions and identifies transformation requirements. The analysis reveals critical challenges including the operation of three separate systems (E-Planning, KRISNA, and SAKTI) without integration protocols, dominance of manual processes in budget calculations for 302 work units, and absence of standardized digital infrastructure. Through SSM implementation, two conceptual models were developed addressing digital transformation and system integration requirements. Gap analysis between conceptual models and reality identified deficiencies across six dimensions: stakeholder engagement, system architecture, performance management, technical design, implementation strategy, and risk management. The research proposes Government Resource Planning (GRP) implementation through four integrated strategies: developing integrated system architecture with modular design principles, implementing organizational change management addressing human and institutional factors, establishing interoperability protocols for seamless data exchange, and creating comprehensive evaluation and risk mitigation frameworks. A phased implementation roadmap spanning 18 months provides a pragmatic approach to transformation. This research contributes to digital government literature by demonstrating the effectiveness of combining As-Is Analysis with SSM in addressing complex socio-technical challenges, while offering practical frameworks for government agencies pursuing similar transformations. The findings have significant implications for Indonesia's digital government initiatives and public sector modernization efforts.