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The Indonesian Journal of Business Administration
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The Indonesia Journal of Business Administration(IJBA) is a business journal that bridges the gap between business research and practice, evaluating and reporting on new research to help readers identify and understand significant trends in their fields. The IJBA seeks to publish papers relating to business, broadly defined. It publishes articles that address both theoretical and practical issues in the broad areas of Business Strategy and Marketing, People and Knowledge Management, Entrepreneurship and Technology Management, Decision Making and Strategic Negotiation, Operation and Performance Management, and Business Risk and Finance.Contributing academicians and researchers are encouraged to address a variety of concerns relating to all areas of business. We also encourage students to use an interdisciplinary approach to analyzing a topic, which often yields interesting and novel papers. The published articles provide valuable insight into matters of broad intellectual and practical concern to academicians and business professionals. The Journalis published three times a year: in April, July and October. The journal is mainly an outlet of MBA ITB students to publish their final project works, although it also accepts articles written by students at masters level from other institutions. A published paper is an honor that will be unambiguously beneficial for professional and academic careers, especially for those who want to attend graduate/professional schools. This means that papers written in relations to Accounting, Economics, Finance, Marketing, Management, Operations Management, Information Systems, Business Law, Corporate Ethics, and Public Policy all qualify for submission. Information on the journal format can be found in the journal's website. The number of pages must be at 10 pages. After published, the journal article will be available electronically at the journal's website. Print ISSN: 2252-3464; Online ISSN: 2252-9284
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Search results for , issue "Vol 1, No 10 (2012)" : 10 Documents clear
Business Process Improvement on Capital Projects Evaluation System at PT. Freeport Indonesia Zefrinardi, Rendy; Anggono, Achmad Herlanto
The Indonesian Journal of Business Administration Vol 1, No 10 (2012)
Publisher : The Indonesian Journal of Business Administration

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Underground area, in particular is focusing on sub-area Underground and sub-area Long- Term Development, have business development projects with high-intensive capitals and as a consequence also have extraordinary business risks. This areas would be revenue sources for PTFI for the next ten years of operations, 2011-2021.This final project aims to initiate an optimization of business process in capital project evaluation system with emphasis to underground area, with objectives to increase PTFI resources capability to conduct capital project forecast, projects evaluation and projects approvals and authorization according to company policy.Approach taken by conducted root-cause-analysis to find source of issue by referencing three-year capital projects performance for mentioned sub-areas, and field survey to active project users to identify and analyze source of issues that leads to steps for improvement. Process tools utilized are Issue Tree, Severity Matrix dan FCX PMO (Project Management Office) Methodology.Source of issues found in sub-areas of Underground is that total actual cost in comparison to projected forecast project cost, in cumulative for the past three years.  There are arising business requirements to optimize capital projects evaluation system to specifically address project cost forecast in Underground and Long-Term Development sub-areas.   Other than that an end-to-end interconnection is necessary starts from a request for project budget submitted, project evaluation process, to decision making process where it ties approvals for budget authorization up to company’s director level into a single system.Recommended solution to be applied is to optimize process in project evaluation system to get and prepare more accurate projects cost estimate, accountable and consider business risks to support capital management on capex projects in PTFI. Key words:  business process improvement, project evaluation system, authorization for expenditure, capex, finance process improvement.
Determining Business Strategy of Seismic Survey Vendor Based on Competitive Advantages: Case Study Elnusa Geoscience Soewargono, Dadang; Mangkusubroto, Kuntoro; Wicaksono, Agung
The Indonesian Journal of Business Administration Vol 1, No 10 (2012)
Publisher : The Indonesian Journal of Business Administration

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Elnusa TBK is one of the biggest oil services in Indonesia established 42 years ago and now have three divisions : 1) Geoscience Services, 2) Drilling Services and 3) Oilfield Services. In the increasingly global competitive oil and gas services industry, company must choose to sharpen its business portfolio.  Competition in the oil and gas services business is quite high, including the entry of several foreign players which forced Elnusa to improve its service and business strategy. This Final Project focus on Geoscience Services division which has the biggest revenue in Elnusa TBK.  Currently Elnusa Geoscience cannot compete with competitors because its fixed cost cannot be reduced.  Therefore, Elnusa Geoscience has to find a way the strategy to compete in this situation.This final project will explore business issues and analyze the factors in oil & gas services industry situation.  Finally this final project provide several alternatives strategy recommendation and implementation plan.. Keywords : competitiveness, oil & gas service company, business strategy
Maximizing the Value of Information Technology Investment based on Strategic Alignment, Risk Control and Real OptionsA Case Study of Enterprise System Implementation at PT. Pegadaian (Persero) Mulyana, Rahmat; Wiryono, Sudarso Kaderi
The Indonesian Journal of Business Administration Vol 1, No 10 (2012)
Publisher : The Indonesian Journal of Business Administration

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The world of IT market has experienced fast growth by9.7% worth US$ 527.9 billion (Rp 5.015,1 trillion) in 1995, but still IT value realization is questioned with the advent of IT Productivity Paradox phenomenon. In 2002, Gartner survey stated that 20 to 70% IT investment worth US$ 600 billion (Rp6,315.8  trillion)  was  wasted.  However,  the  phenomenon  was fading  with the  rise  of  IT governance  and  management  field, including IT investment management best-practice. Latest research from PwC and ITGI in 2011 has shown that the practice brought 27.1% increased value and 28.1% improved business competitiveness. Recently, PT. Pegadaian (Persero) has planned to invest on a new centralized real-time online Enterprise System. Considering this is a large scale IT investment which estimated TCO is around Rp 1.1 trillion (16% of Total Gross Revenue and 1100% of Total Investment in 2011), while the world historical data has shown many of its failures, in fact Pegadaian itself has experienced ES implementation failure in 2009-2011 which has wasted significant resources, therefore the management is very concerned   about   how   to   prevent   project   failures   while maximizing the value from it. The author has proposed the combination use of strategic alignment, risk control and real options valuation methods which enhanced the conventional investment  analysis  methods  such  as  IRR,  NPV,  ROI  and Payback Period to solve Pegadaian’s problem. This paper result showed that the combination of those methods has maximized the value of IT investment by making sure that the investment is aligned with business objectives, able to control its risks and offered managerial flexibility through viable investment option configurations which maximizing the value. Keywords: IT investment, strategic alignment, risk,  real options, enterprise systems, IT governance and management
Evaluation on Planning, Recruitment and Selection of New Employees Case Study in Bank Syariah Muamalat Indonesia Basuki, Nanang; Tjakraatmadja, Jann Hidajat
The Indonesian Journal of Business Administration Vol 1, No 10 (2012)
Publisher : The Indonesian Journal of Business Administration

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PT Bank Syariah Muamalat Indonesia (BMI) is the second largest Islamic bank in Indonesia. As a leading Islamic bank in market share, BMI challenged to grow and aspires to become the 10th largest bank in Indonesia in 2015 (the end of 2011, assets of BMI is on the order-23). To increase service and to support a rapid business growth, Bank Muamalat has made a commitment to increase physical infrastructure and electronic infrastructure. As many as 177 new outlets and 350 new ATM will be open in 2012. The opening of new infrastructures will be supported by the increase of human resources more than 2.000 employees. The study aim to evaluate the existing planning, recruitment and selection process to get new employees at BMI.  Based on the facts presented, focus group discussion that involves operation managers and conduct questionnaire instrument from 67 respondens, the solution expected to be applied to repair the process and support business expansion.Based on the results of the analysis has been conducted, this study formulates implementation practices proposals with three main objectives: 1. Improve planning process through empowering application of human resources information system;  2. Improve recruitment process through the acceleration of electronic recruitment ; 3. Improved selection process especially in written test and psychological test. Keywords: opening outlets, business performance, new style in planning, recruitment and selection.  
Transfer Pricing: A Case Study on PT XX Policy in Related Party Transactions Kurnadi, Jemmy; Secokusumo, Thomas H.
The Indonesian Journal of Business Administration Vol 1, No 10 (2012)
Publisher : The Indonesian Journal of Business Administration

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Transfer pricing has becoming a great fear among companies in Indonesia, especially when Indonesian Tax Office launched its significant initiatives back in 2009 / 2010, where it required companies which submitted their annual tax return to be attached with transfer pricing documentation for company’s related party transactions. Though it has be to admitted that related party transactions mostly used by multinational companies to set up the profit level at the maximum by utilizing different tax regimes of the countries where the companies domiciles. Focus of this final project are maintained on major related party transactions, which are: 1) sales, 2) management and technical assistance fee, 3) charge related to shared services performed by related party domiciled in Malaysia. This is in accordance with tax regulation recently issued in 2011, stating that only transactions > IDR10 billion that required transfer pricing analysis / documentation.The first result of the analysis showed that it will be financially advantageous for the Company to increase the sales price which will affect decrease in global tax expense. However, given the complexities of changing the sales contract with the shareholder, tax implication for Japan business unit, it is advised that the Company maintain its sales price at the current level. The second result is to recommend the Company to revise its transfer pricing method for its MTA fee to a cost based / cost plus method as it would give better rationale of the transaction for Indonesia Tax Office. The third result is to deny the proposal of setting up the shared service organization in Malaysia for Indonesia business unit as it is financially inefficient and making further complexity on the tax administration in Indonesia. Keywords: transfer price, related party transactions, transfer pricing, arm’s length transaction
Employment Law Perspective and Mutual Respects in Resolving Industrial Relation Issue; The Case of Labor Strike in Demanding Wage Increase of PT Freeport Indonesia Employees Rumainum, Jonathan; Saksono, Prasetyo B.
The Indonesian Journal of Business Administration Vol 1, No 10 (2012)
Publisher : The Indonesian Journal of Business Administration

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Few factors has been identified as the cause of the interruption in Industrial relationship in PTFI which bring consequence in the suspend of negotiation thus followed by extended labor strike. The factors are the basic reference in increase wage demand, dead lock decision in -CLA negotiation  as cause of labor strike, the Industrial relationship settlement approach after the -CLA  negotiation stopped. The main cause of the problem is the discrepancy in understanding and communication as the consequence of each party keep hold tight on its principle and interest. Beside the material loss, the company also suffers physiological effect after the labor strike as the consequence of intimidation to non strike workers. To rebuild harmonious Industrial relationship in PTFI, the company and its employee needs to understand about industrial relationship principals with always consider the mutual interest, partnership, and interdependence, create calm and peacefully working atmosphere, increase productivity and increase mutual welfare. Start everything with good intention and industrial relationship approach together with mutual trust , if there is dispute in relationship. One of the Industrial relations- tool that needs to be develop in PTFI is communication in partnership relations- with equivalent position between company and labor union through -the bipartite coorporation body ( LKS- Bipartit). Key Words: Regulation No.13 Year 2003, Industrial Relationship, Mutual Agreement, Wages, Labor Strike, Industrial relationship dispute, Mutual respect / trust.. 
Improvement Proposal for Operational Safety in PT. Kereta Api Indonesia (Persero) Using People Management Approach Firstyadhika, Irdra; Bangun, Yuni Ros
The Indonesian Journal of Business Administration Vol 1, No 10 (2012)
Publisher : The Indonesian Journal of Business Administration

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Health and Safety at work is a thought and effort to ensure the integrity and perfection of both physical and spiritual labor in particular, and human beings in general, and cultural work towards fair and prosperous society (Mangkunegara, 2002). Another source said that safety is a series of efforts to create a work atmosphere that is safe and peaceful for those employees who worked at the company in question (Suma'mur, 2001).KNKT (National Committee on Transportation Accidents of Indonesia) in the event of the national railway safety held on March 2011, concluded: Safety is imposible without leadership, without safety leadership is imposible. Enforcement of laws and regulations that are less consistent or incomplete rules on safety, inadequate training, lack of rewards and punishments, regulations that need to be replaced or adjusted, transportation infrastructure that does not comply with the demands, means of transportation that do not meet the airworthiness standards and technical requirements, and lacking even the lack of coordination may be the underlying cause of the accident.The model of this research discusses that good people management companies have a positive impact to the operational safety performance. Good people management is influenced by a company's management commitment, safety committee involvement, leadership, training and development, communication and control, and performance management. While operational safety performance was favorably impacted by a solid safety culture, company reputation, preventive action, and the low incident.The results of the research showed that the predictors of good human management company with safety performance has a strong influence; then communication and control, performance management, and the involvement of the safety committee are the variables that were highly influential. Gap analysis using descriptive analysis found that there are several indicators that have a low value in the eye of employees. Keyword‒ safety, accidents, people management, state owned company, transformation, Indonesian state owned company
Measurement of Supermarket Service Quality by Applying Simple Content Analysis on Tweets Anandianto, Rahadian; Iskandar, Budi Permadi
The Indonesian Journal of Business Administration Vol 1, No 10 (2012)
Publisher : The Indonesian Journal of Business Administration

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Competition in the retail industry means that any company  trying  to attract  consumers  to buy  products  in stores with the attention to the retail marketing mix. In addition to competitive  factors,  the number  of consumer  and public complaints  about retail marketing mix noted for improve quality of  care.  Social  media  as  a  two-way  communication   between  a brand with consumers and public is the right analysis tool for use to understanding  it. So, the purpose of this study was to evaluate the retail services in Bandung  by using criteria based on service marketing  mix  of  consumer  and  public  opinion  through  social media.   To  understand   of  complaints,   researcher   use  content analysis    to   identification    the   needs    of   consumer    through sentiment.  As a new tool analysis, Twitter can be used to explore service quality of retail. The main analysis  is see the advantages and   disadvantages    of   marketing   mix   in   serving   consumer through  the division  between  the marketing  mix with a number of  conversations   for   each   sentiment.   The   smaller   the   value indicates the most important marketing mix for repair. After run the analysis,  the general  weaknesses  of retail are price, process, and people. All weaknesses in each retail must consider for management to increase satisfaction and loyalty of consumers. Keywords:  marketing  mix, retail service,  content  analysis,  Twitter, conversation
Argo Parahyangan Train Service Quality Improvement
The Indonesian Journal of Business Administration Vol 1, No 10 (2012)
Publisher : The Indonesian Journal of Business Administration

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Argo Parahyangan train passenger volume declined since the opening of Highway Cipularang. This is due to the emergence of competing business that is passenger transport transportation travel point to point as well as inter-city buses. Due to continued losses, PT Kereta Api Indonesia combines two previously with Bandung-Jakarta route the Argo Gede and Parahyangan. It is intended to further save on maintenance costs and increases revenue. However, passenger trains continued to decrease in volume as the growth of business travel point to point.To find out what the cause of the increase in passenger volume reduction, is necessary to find the root cause of the problem first. Needs to be analyzed from all sides as the analysis of the company's external and internal analysis of the company. External analysis conducted by analyzing Framework PESTEL and Porter's Five Forces. Internal analysis conducted by analyzing corporate strategy, business strategy, Segmenting Targeting Positioning (STP), and the marketing mix (7P) PT Kereta Api Indonesia. Then do the retrieval questionnaires to passengers for the analysis of the quality of products, tariffs, and services using the Importance-Performance Analysis (IPA). Finding from this research in PT KAI is not the focus in the development of management because too many train set, education officials are still low, investments in railway development is still lacking, the promotion of a less. Objective of this research is to provide the proposed service quality implementation PT Kereta Api Indonesia and implementation of plans and programs to enhance customer satisfaction. With the suggestions given Argo Parahyangan passenger volume expected to be up front and get a high profit Keywords: PT Indonesian Railways, passenger volume, Importance-Performance Analysis (IPA)
Financial Analysis for Five Drilling Rigs Investment to Serve Pertamina Market Through Joint Operation PTDU and PDSI
The Indonesian Journal of Business Administration Vol 1, No 10 (2012)
Publisher : The Indonesian Journal of Business Administration

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Indonesia in one of the largest oil producers in the world, its potential oil resources is stored beneath the belly of the earth of Indonesia; some are proven oil reserves but some still potential oil reserves. PERTAMINA as a state owned company have responsibilities to manage oil business industry in Indonesia, their country’s potential oil resources need to be managed including oil exploration, oil drilling, oil refinery and any other process until the natural resources is ready to supply oil demand in all over the world. Scope of discussion of this research is limited into a narrower scope of oil drilling. PDSI (PT PERTAMINA Drilling Services Indonesia) is one of PERTAMINA’s subsidiaries that operate in drilling rig business; PDSI also carrying same responsibilities like its parent company. PTDU (PT Dimas Utama) saw an opportunity to do joint operation with PDSI, because PTDU have resources of drilling rigs from Chinese investor. PTDU become like a bridge between Chinese Investor and PDSI, but the business scheme needs a financial engineering because Chinese investor wants a 200% return in year five which is normally made for more than five years. Therefore feasibility study is needed for this business scheme, decision tree analysis also used because there are possibilities and decisions on the business scheme. The results of the feasibility study are feasible IRR (Internal Rate of Return), ROI (Return on Investment), ROE (Return on Equity), PP (Payback Period), and NPV (Net Present Value), so PTDU should take this investment project. Keywords: drilling rig, financial analysis, PERTAMINA, PDSI, drilling services

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