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Economics and Finance in Indonesia
Published by Universitas Indonesia
ISSN : 0126155X     EISSN : 24429260     DOI : 10.47291
Core Subject : Economy,
EFI mainly covers original idea related to the Economics and Finance in Indonesia. Published articles can be either theoretical, empirical, or in between of those two polar variants.
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Articles 5 Documents
Search results for , issue "Volume 64, Number 1, June 2018" : 5 Documents clear
Modification of the Regulatory Impact Assessment on Indonesia’s Economic Policies Kiki Verico
Economics and Finance in Indonesia Volume 64, Number 1, June 2018
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (123.19 KB) | DOI: 10.47291/efi.v64i1.579

Abstract

This paper modifies the Regulatory Impact Assessment (RIA) method in Indonesia’s trade, investment, and industrial incentive policies. First, it analyses the Indonesian Bilateral Trade Agreements of Indonesia – Japan Economic Partnership Agreement (IJEPA) and Indonesia – Pakistan Preferential Trade Agreement (IP-PTA). This paper found if the trading partner has GNI per capita higher than Indonesia’s then the expected outcome was the increasing FDI inflows and if its GNI per capita lower therefore the most top foreseeable result was the rising net trade balance of Indonesia. Second, it analyses industrial sector incentive analysis and found that firms prefer supply-side than fiscal incentives.
Does Manufacturing Sophistication Lead to Higher Demand for Vocational Workers? Evidence from Indonesia Padang Wicaksono; Lionel Priyadi
Economics and Finance in Indonesia Volume 64, Number 1, June 2018
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (618.263 KB) | DOI: 10.47291/efi.v64i1.580

Abstract

Indonesia post-crisis manufacturing growth has been dominated by technologically sophisticated industry. Hypothetically, this development would increase the demand for skilled and more specialized workers like vocational school graduates. However, statistical evidences show that manufacturing sophistication stimulated by integration with the Global Production Network increase demand for vocational as well as general high school graduates. Moreover, higher demand does not necessarily result in sustainable career prospect, as many vocational graduates still have limited opportunity to improve their skills while climbing the seniority ladder possibly caused by shifting Global Value Chain from export-oriented toward domestic market-oriented that affect the industry's technological complexity.
The Relationship of VAT Rate and Revenues in the Case of Informality Fikri R. Arrachman; Riatu M. Qibthiyyah
Economics and Finance in Indonesia Volume 64, Number 1, June 2018
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (405.431 KB) | DOI: 10.47291/efi.v64i1.581

Abstract

This study explored relationship between tax rate and revenues in the case of VAT, one of few type of consumption taxes that is considered to be a broad-based tax. Based on a larger set of countries - in comparison to previous studies, this study shows VAT rate has an inverted U-shaped relationship to VAT revenues, confirming the Laffer Curve theory. Exploring further on the effect of informality to maximum VAT rate, we found that higher informality will reduce government flexibility in its effort to increase tax rate. Furthermore, openness has significant and positive effect on VAT revenues performance, and tax administration capacity may also play role on improving VAT revenues performance.
Recent Developments in Indonesia’s Macro-economy and Trade, Q1-2018 Febrio Kacaribu; Alvin Ulido Lumbanraja; Mohamad Dian Revindo; Syahda Sabrina; Zehan Pricilia; Yeremia Natanael
Economics and Finance in Indonesia Volume 64, Number 1, June 2018
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (556.243 KB) | DOI: 10.47291/efi.v64i1.582

Abstract

This paper discusses Indonesia’s macroeconomic and trade development in the first quarter of 2018. The macroeconomic data shows that the industrial growth was inhibited by regulatory regime inconsistency, while consumption growth still lagged overall GDP growth, and investment growth tended to rise. The trade data shows that the non-oil-and-gas commodities dominated its export, although the commodities’ terms-of-trade declined. Indonesia’s imports were mostly used as raw and auxiliary materials for the input of domestic production. The data also reveals that the larger the firms, the stronger tendency that they have comparative advantage in capital-intensive commodities, and vice versa.
Income Inequality between Formal-Informal Employees Based on Education Group Riska Dwi Wulandari; Susilo Susilo; Dias Satria
Economics and Finance in Indonesia Volume 64, Number 1, June 2018
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (655.39 KB) | DOI: 10.47291/efi.v64i1.583

Abstract

Integrally, the informal sector deals with the formal sector with pro-cyclical nature or as a complementary sector. Such conditions allow for wage disparity between sectors even in the same education group. Thus, this study seeks to determine the determinants of wage inequality between formal and informal employees in skilled and unskilled workers in Indonesia in 2017 using Blinder-Oaxaca decomposition. The results showed that the discrimination factor had a greater influence than the endowment factor on wage inequality and the endowment factors that contributed to the increase in wage inequality between the two groups were age squared, experience, and job training.

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