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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 574 Documents
The Impact of School Operational Assistance Program Implementation at School Level on Senior Secondary Education Enrollment by Households: Evidence from Indonesia in 2007 and 2014 Fairuzah Pertiwi Kartasasmita; Eny Sulistyaningrum
Economics and Finance in Indonesia Volume 67, Number 2, December 2021
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (1039.228 KB) | DOI: 10.47291/efi.v67i2.846

Abstract

Education is recognized worldwide as one of the key elements in developing the human capital of a nation for a prosperous future. Given an almost universal enrollment in primary education, many governments have shifted their focus on students’ motivation to continue to and finish their secondary education. The government of Indonesia has made extensive efforts in widening participation in education. With a growing budget for educational expenditure, various government programs have been implemented to assist students in their learning. One such program is the School Operational Assistance Program (BOS), which has been running for two decades. This paper reports on a study aimed to investigate the impact of the implementation of BOS at a school level on senior secondary school enrollment by households using data obtained from the Indonesia Family Life Survey (IFLS) recorded in 2007 and 2014. By using Propensity Score Matching (PSM), it was found that students whose schools received BOS during their primary education years were more likely to continue their education to senior secondary education than those whose schools did not receive BOS. This shows that a school subsidy could encourage students to continue their education, particularly for students coming from poorer households.
Special Allocation Fund and Poverty Rate in Indonesia Danesta Febianto Nugroho; Bayu Rhamadani Wicaksono; Muhammad R. Reynaldi
Economics and Finance in Indonesia Volume 67, Number 2, December 2021
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47291/efi.v67i2.811

Abstract

The Special Allocation Fund is distributed to specific areas to aid them in funding special regional activities that follow national interests. Giving regional government’s broad autonomy is meant to hasten the realization of social welfare, as seen by reducing poverty. This study aims to examine the influence of the Special Allocation Fund for education, health, and infrastructure on the poverty rate in Indonesia, using the Poverty Gap Index (P1) as a proxy for the poverty rate. The study employed annual data from 33 Indonesian provinces from 2015 to 2018 and panel data regression analysis utilizing the Fixed Effects Model (FEM). The study discovered that the Special Allocation Fund for Education and Health has a negative and significant impact on poverty, but the Special Allocation Fund for Infrastructure has a positive but not significant impact on poverty. The central and regional governments must work together to guarantee that the Special Allocation Fund is distributed effectively to sectors directly relevant to poverty reduction efforts.
Exporters in the Time of COVID-19 Pandemic: Evidence from Indonesia Realita Eschachasthi
Economics and Finance in Indonesia Volume 68, Number 1, June 2022
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47291/efi.v68i1.945

Abstract

The export of Indonesia has contracted rapidly in response to the COVID-19 outbreak. However, little is known about the crisis-trade relationship, which is important for the policymakers to design the relevant policies. To that end, this study examines how exporters adjust in the time of pandemic as well as estimates the impact of COVID-19 on export performance by using microdata of monthly export transactions from January 2019 to August 2020. This relationship is analyzed by employing intensive and extensive margins as well as a panel fixed effects specification. The result shows that capital goods, mainly manufactured products, have been hit the hardest compared to consumption and intermediate goods. The evidence also suggests that the exporters have been primarily affected at the extensive margin or leaving the market. During the crisis, the rate of ceasing export transactions is approximately 40%, while the rate of decline in export value is 14%. The aftermath of COVID-19 is expected to disrupt export performance by 0.15 percentage points of mid-point growth. The result is robust subsequent to performing several alternative specifications. Finally, the study discovers that the virus does not discriminate; it hits all exporters regardless of their size.
Does It Pay to be Good? The Performance of Indonesian Green Companies from 2009–2018 Ega Annisa Rizti; Berly Martawardaya
Economics and Finance in Indonesia Volume 68, Number 1, June 2022
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47291/efi.v68i1.844

Abstract

In Indonesia, KEHATI Sustainable and Responsible Investment (SRI) Index, hereafter referred to as SKI, aims to raise public awareness and help pro-environmental investors by selecting 25 highly rated public companies that adhere to the internationally accepted green business standard. This paper compared the financial performance of the companies listed in SKI and their counterparts between the period of January 2009 and December 2018 by predicting their future opening price of stock, comparing the performance of SKI to JKSE market index, and examining their financial performance using ROA and ROE as dependent variables. The findings suggest that being included in SKI is insignificant to the future opening price of stock. The index itself is found to be slightly more volatile than the market index, which is attributed by a previous study to SKI selection process lowering the chance for portfolio diversification and the volatility of the Indonesian market due to the financial crises. However, being included in the index positively affects both ROA and ROE, albeit small differences. Therefore, there is no significant difference between the financial performance of green companies in Indonesia and their counterparts.

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