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INDONESIA
Review of Indonesian Economic and Business Studies
Published by Lembaga Ilmu Pengetahuan Indonesia
ISSN : 20871392     EISSN : 2502244x     DOI : -
Core Subject : Economy,
Economics, Econometrics & Finance
RIEBS Journal is a scientific journal published by the Economic Research Center-Indonesian Institute of Sciences (Pusat Penelitian Ekonomi-Lembaga Ilmu Pengetahuan Indonesia/P2E-LIPI) twice a year, with e-ISSN: 2502244X and p-ISSN: 20871392. RIEBS Journal publishes original articles on the most recent knowledge, theoretical and/or applied research, and other development in the fields of economics, business, as well as studies in comparison between Indonesia’s economic and other countries.
Arjuna Subject : -
Articles 19 Documents
 1   2 
The Analysis of Consumer Satisfaction in Airlines Industry Zaharias, Bryan Mikail
RIEBS Vol 7, No 1 (2016): Reviews of Indonesian Economic and Bussiness
Publisher : P2E-LIPI

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Abstract

Abstract:This study examines the factors that determine airlines’ customer satisfaction rating, according to SKYTRAX in which SKYTRAX is a world airline audit that leads product and service quality improvement program for the airline industry with 26 years of experience. SKYTRAX audit the performance of the airlines through customer reviews and rate them with 1-5 and 1-10 interval Likert scale. This study uses only 3 variables from SKYTRAX which are food and beverages, seat comfort, staff service, and number of reviews that act as a control variable. This study uses ordered probit regression model because the data are cross section and the dependent variable is discrete variable (1-10 Likert scale). The number of airlines observed is 128. The result reveals that Food and Beverages, Seat Comfort and Staff service have positive significant effect on increasing the probability of an airline getting a higher rating, which means more satisfied customer.Keywords: Airline studies, airlines rating, SKYTRAX, airline industry, customer satisfaction, ordered probit model
BUILDING A MEGACITY: JAKARTA IN THE 21ST CENTURY A CASE STUDY OF THE URBAN TRANSPORT SYSTEM IN JAKARTA Negara, Siwage Dharma
RIEBS Vol 6, No 1 (2015): Reviews of Indonesian Economic and Bussiness
Publisher : P2E-LIPI

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Abstract

Jakarta is rapidly becoming as one of the world’s megacities and this has been boosted by its impressive economic growth over past decades. The city has transformed over the past thirty years into one of the modern financial and services hubs in Southeast Asia. With a population of more than ten million, it is now a thriving centre of entrepreneurship. However, the city is striving to find a balance between growth and sustainable development. Like all other megacities, Jakarta faces serious development challenges, such as a population explosion, traffic congestion, environmental pollution, resource shortages, urban poverty and cultural conflicts. This study focuses on the complex challenge of alleviating worsening traffic congestion in Jakarta. It looks at how various fragmented policies and strategies have failed to solve this problem because of poor planning, lack of community participation, poor urban transport management and unbalanced regional development. In particular, it addresses the key failure to develop a sustainable urban transport system that considers the social, economic, environmental and cultural elements of the city. The essential message of the study is that to control traffic congestion successfully, reforms in the urban transport system should be complemented with more community engagement in planning, governance and monitoring. Social sciences can contribute to the understanding of the problems and reinforce the necessity for wide-ranging social and behavioural reforms in urban society
Efficiency Analysis of Local Government Spending of Regencies and Cities in West Java, 2001-2010 Sihaloho, Estro Dariatno
RIEBS Vol 6, No 2 (2015): Review of Indonesian Economics and Business Studies
Publisher : P2E-LIPI

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This paper has two objectives. The frst is to estimate technical effciency scores for local government expenditure in regencies and cities in West Java. The second is to analyze the other environmental factors that play animportant role in the technical effciency scores of local government expenditure in the same regencies and cities.This research uses a Data Envelopment Analysis (DEA) method to estimate technical effciency scores and usesa Tobit method for analyzing environmental factors. The DEA method uses capital expenditure per capita,employment of government expenditure per capita, and goods and services expenditure per capita as input anduses Gross Regional Product (GRP) per capita, human capital index (HDI) and road infrastructure length perwide area as output. The Tobit method uses the total of investment credit funds, total labor and total governmentemployment per 1000 civil servants. The results showed that there are many region that have high spendingbut can not achieved the maximum score of effciency. The Tobit estimation shows that the total of investmentcredit funding and total labor have positive and signifcant marginal effects in creating optimal technical effciencyscores. Total government employment per 1000 civil servants has a negative and insignifcant marginal effect onoptimal technical effciency scores.
PREDICTING INDONESIAN FINANCIAL CRISES USING THE ARTIFICIAL NEURAL NETWORK MODEL Syaifullah, Syaifullah
RIEBS Vol 4, No 1 (2013): Reviews of Indonesian Economic and Bussiness
Publisher : P2E-LIPI

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This study offered a method for predicting crises in Indonesia using an artificial neural network (ANN) model. The empirical findings indicated that an ANN model would have performed well in predicting crises from 1971:1 to 1995:12 (in-sample) and from 1996:1 to 1998:12 (out-of-sample), namely the Asian Financial Crisis, which hit Indonesia in 1997--1998. The empirical results indicated that financial crises can be predicted and the application of the ANN model in predicting Indonesian financial crises is promising. Thus, the government can develop an ANN model to predict recurrent financial crises and use it to provide an early warning system.
The Impacts of FDI Inflows of China on Intra Industry Trade of Indonesia’s Manufacturing Industry Verena, Vidita Vergia
RIEBS Vol 7, No 1 (2016): Reviews of Indonesian Economic and Bussiness
Publisher : P2E-LIPI

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This article is to examine the impact of Chinese firms’ FDI to Indonesia on the development of intra-industry trade between two countries, measured by Grubel-Lloyd index. Using Pooled Least Square (PLS) regression method, this article shows that the increase of Chinese firms’ investment in Indonesia’s industry, particularly in manufacturing industry, demonstrated strongly positive effect in the intensification of intra-industry trade. Additionally, this article also finds that the other components such as factor endowments as well as trade openness between two countries and the existence of trade integration are also important determinants of the development of intra-industry trade between two countries.
OUTPUT AND UNEMPLOYMENT: TESTING OKUN’S LAW IN INDONESIA Yaumidin, Umi Karomah
RIEBS Vol 6, No 1 (2015): Reviews of Indonesian Economic and Bussiness
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Abstract

This paper reports a study of the testing of Okun’s Law in the Indonesian economy: we test difference and gap models of Okun’s thesis. For this we use annual data on GDP and unemployment rates for Indonesia from 1980 to 2013. The main conclusions are, first, that Indonesia still faces a continuing high unemployment rate according to the results of the output gap model and of the first difference model. Second, in the long term, demand in Indonesia’s employment market is inelastic, especially during financial crises. Indonesia needs high economic growth to cause demand for labour to be more elastic to absorb many more into the labour force. Overall, our analyses found that interpretations of Okun’s Law might not be applicable to Indonesia’s economy.
POVERTY DYNAMICS IN INDONESIA, 2008–20101 Astuti, Avi Novia; Asra, Abuzar; Ilmma, Amri
RIEBS Vol 3, No 2 (2012): RIEBS 2012 (2)
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Abstract

Although official figures show that poverty in Indonesia has declined, it remains one of the keydevelopment issues. The current static poverty approach in assessing poverty changes has not been sufficientto design effective and strategic policies for poverty reduction. This study analyses the dynamicsof poverty in Indonesia using the 2008–2010 panel data of the Survei Sosial Ekonomi Nasional(Susenas), the National Socio-Economic Survey. This study uses a sequential transition matrix to depictthe dynamics of poverty that are shown by the magnitude of changes in poverty status (especially transientand chronic poverty). The matrix indicates that the incidence of transient and chronic povertyfor the period 2008–2010 was 23.2 per cent, much higher than the figure of 13.3 per cent derivedby using the static poverty approach in 2010. This suggests that the magnitude of the poverty problemin Indonesia is indeed much higher than the common perception that is based on the usual povertyindicators. The results of a multinomial logistic model reconfirm the importance of investment ineducation, improvement in the agricultural and non-agricultural sectors, and reduction of dependencyratios to help cope with transient and chronic poverty. To help develop poverty alleviation policy andto design intervention programs, using the statistics of chronic poverty and the Human DevelopmentIndex, there are eight provinces that could be considered as the core focus area. These provinces areNangroe Aceh Darussalam, Lampung, East Java, East Nusa Tenggara, Central Sulawesi, South EastSulawesi, Maluku, and West Papua, and all need immediate intervention and accelerated povertyreduction programs.Keywords: Geographical targeting, Multinomial logistic, Poverty dynamics, Transient and chronicpoverty, Sequential transition
DESIGNING AND MAINTAINING GOOD POLICIES FOR THE DEVELOPMENT OF THE SOUTHEAST ASIAN COUNTRIES Wie, Thee Kian
RIEBS Vol 4, No 1 (2013): Reviews of Indonesian Economic and Bussiness
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Abstract

The first part of this paper highlighted that there is wide diversity among all ten Southeast Asian countries. Then the discussion was followed by an assessment of the need to design and maintain good policies for the development of the Southeast Asian countries. In this section, the discussion focused on four main areas such as: (i) sound macroeconomic policies; (ii) the growth and trends in poverty of these countries; (iii) the industrial and technological development of these countries; and (iv) the need to achieve an environmentally sustainable development of these countries, particularly in regard to the preservation of Southeast Asia’s precious tropical hardwood forests. 
IDU’S SOCIOECONOMIC STATUS AND PROBABILITY OF HIV INFECTION IN BANDUNG Kautsar, Achmad
RIEBS Vol 7, No 1 (2016): Reviews of Indonesian Economic and Bussiness
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Abstract

Introduction: Transmission dominance of HIV/AIDS in Indonesia is caused by risky sexual activities and needle sharing behavior. West Java ranks fourth in case of HIV/AIDS among 33 other provinces. Individual’s behavior in performing risky sexual acts or drugs using can be affected by factors of social and economic status.Methods: This research uses cross-sectional survey. The subjects were injecting drug users in Bandung. Sampling is respondent-driven method. This study collects 222 respondents. Collected data were analyzed using logistic regression test. The strength of the effect expressed in odds ratios and marginal effect is used for the interpretation.Results: Individuals who work have marginal effect of -0,2422 (CI, -0,445 to -0,392) smaller than individuals who do not work, income has marginal effect of 0,375 (CI, 0,0928 to 0,657) for income under Rp.500.000,00. Individual’s income between Rp.1.500.000,00-Rp.2.000.000,00 has value of marginal effect is 0,236 (CI, 0,015 to 0,456), and income between Rp.2.000.000,00-Rp.2.500.000,00 has marginal effect of 0,261 (CI, 0,0025 to 0,52). Duration of use syringe has marginal effect of 0,235 (CI, 0,121 to 0,349) higher compared to the duration of use under 12 years.Conclusion: Socioeconomic status can affect the potency of HIV infection. The government should encourage the drug user community to participate in activities which aims to reduce the risk of HIV/AIDS. 
THE ASEAN–INDIA FREE TRADE AREA AND DESIGN OF FUTURE REGIONAL TRADING ARCHITECTURE IN THE ASIA–PACIFIC REGION hidayat, Agus Syarif
RIEBS Vol 6, No 1 (2015): Reviews of Indonesian Economic and Bussiness
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Abstract

This paper discusses the role of the ASEAN–India Free Trade Area (AIFTA) in designing future regional trading architecture (RTA). To date, the negotiations on future regional trading architecture in the Asia–Pacific region have split into two blocs: the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). By considering some essential factors, it would be to the advantage of AIFTA members to focus on negotiations under the RCEP rather than the TPP. There are at least three ways in which the AIFTA could play a significant role in the:”) course of future RTA in the Asia–Pacific region: strengthening unity of the RCEP; redressing power imbalances among RCEP participating countries; and becoming a hub for other regions.

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