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INDONESIA
The Indonesian Journal of Business Administration
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Core Subject : Science,
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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Articles 6 Documents
Search results for , issue "Vol 11, No 1 (2022)" : 6 Documents clear
The Impact Of Branchless Banking On Banking Profitability In Indonesia: Difference In Difference Approach
The Indonesian Journal of Business Administration Vol 11, No 1 (2022)
Publisher : The Indonesian Journal of Business Administration

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Abstract

Abstract. In increasing financial inclusion in Indonesia, the Financial Services Authority (OJK), in collaboration with Bank Indonesia (BI), implemented the Financial Services Authority Regulation (POJK) No.19/POJK.03/2014 program, namely Digital Financial Services (LKD) and Laku Pandai, otherwise known as branchless banking. Branchless banking is very useful for people who have never been touched by banking. Branchless banking is very useful for people who have never been touched by banking. This service is provided without an office network, but with cooperation with other parties and support from the use of information technology facilities. This study aims to determine the impact of branchless banking on the level of profitability in banks that have implemented branchless banking services. This study used 7 banks as the treatment group and 14 banks as the control group, from 2005-2020. The method used is difference in difference (DiD) which will compare before and after the implementation of branchless banking by eliminating other factors that can bias the results. The results showed that branchless banking has a positive impact on the level of profitability. The level of profitability as measured by ROA, ROE and NIM has increased significantly and BOPO has decreased. So, it can be concluded that there are differences in the level of profitability before and after the implementation of branchless banking.Keywords: DiD, Conventional Banking, Branchless banking, Profitability.
Determining Optimal Capital Structure for PT Pupuk Kalimantan Timur
The Indonesian Journal of Business Administration Vol 11, No 1 (2022)
Publisher : The Indonesian Journal of Business Administration

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PT Pupuk Kalimantan Timur (PT Pupuk Kaltim) is the largest Indonesian fertilizer producer. They wish to expand their business by building new plants. There are two ways to obtain external funding: debt and equity. The composition of debt and equity will affect the firm value. To maximize the firm value, optimal capital structure is needed to be estimated. Both qualitative and quantitative research methodology is used to analyze the optimal capital structure of the firm. This research use Library Research as a method for collecting data and secondary data are documentation of annual report, audited financial statement, data from credible website, and also media. The data period in this research is from 2013 to 2020. The optimal capital structure is calculated based on two approaches: cost of capital approach and APV approach.The result shows that the optimal capital structure based on cost of capital approach is 5%, while the current debt to capital ratio is 2.31%. The APV approach also shows that the current debt to capital ratio is lower than optimal debt ratio, which is 15% for all three scenarios: optimistic, most likely, and pessimistic. With the current condition of the firm that is underleveraged, the firm can take the new project with debt to increase the debt level and meet optimal capital structure that will increase the firm value. The current credit rating of PT Pupuk Kaltim is Aa2/AA, if the debt ratio is changed to 5% based on cost of capital ratio, the rating will decrease to A1/A+. While if it is changed based on APV approach with 15% debt ratio, it will decrease to A3/A- or Baa2/BBB, lower than cost of capital approach.Keywords: optimal capital structure, fertilizer producer, cost of capital approach, apv approach
Business Process Redesign and Automation for Apotek Semoga Jaya
The Indonesian Journal of Business Administration Vol 11, No 1 (2022)
Publisher : The Indonesian Journal of Business Administration

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Abstract, Information system implementation gives advantages to business activities in a company. SMEs to large scale businesses are competing to implement an information system in their business. Information system implementation in a business can increase the benefit from data management and information flow in their operational activities. Apotek Semoga Jaya or known as ASJ is one of the pharmacies in Padang City which still implement a manual approach for their activities. This condition makes ASJ get a problem with warehouse management. Undetected medicine stock-out makes ASJ have potential lost sales by more than one billion rupiahs in a year. Root cause analysis is implemented to get the initial cause of the ASJ’s problem. From the root cause analysis, there is no specific regulation to prevent unrecorded transactions in ASJ. Implementation of an information system comes as the solution for the ASJ’s problem. Implementation of an information system needs to consider the people, process, and technology (PPT) aspects in ASJ. The business process redesign heuristic is implemented to improve the business process on ASJ which involves PPT aspects. The implementation of the solution will be using the PDCA cycle to monitor the effectiveness of the solutions in ASJ.Keywords: Information systems, root cause analysis, business process redesign heuristic, PPT aspect, PDCA cycle.
Optimal Formation Portfolio: An Analysis Using the Markowitz and Single Index Model for IDX30 Stock Period (2016-2021)
The Indonesian Journal of Business Administration Vol 11, No 1 (2022)
Publisher : The Indonesian Journal of Business Administration

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This research paper aims to evaluate the performance of the stocks listed in the IDX30 throughout five years (2016-2021). The evaluation of the IDX30 stocks is done by analysing the value of each stock through its risk and return to then bring forth an optimum portfolio. In order to come up with an optimum portfolio, the evaluation of the 17 stocks can be calculated through two methods which are the Markowitz Model and the Single Index Model. The findings of this research show that the Markowitz model produces 16 portfolio simulations with one optimum portfolio: Portfolio 2 with a return of 17.68% annually, and a standard deviation of 18.65%. The Single Index Method produces a portfolio with a return of 33.6% annually. Through this research, it can be deduced that as the Single Index Method evaluates more stocks, it also conveys better overall performance than the stocks evaluated by the Markowitz Model. However, the findings also convey that the calculation of the return presented by both Markowitz and Single Index methods is higher than JCI, hence showing that stock performance is more secure and less penetrable within the risk-free market.Keywords: investment, portfolio, return, risk, Markowitz, Single Index
Portfolio Optimization on Stocks from Agriculture, Finance, Mining, and Trade Sectors using Markowitz Method
The Indonesian Journal of Business Administration Vol 11, No 1 (2022)
Publisher : The Indonesian Journal of Business Administration

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Abstract. The year of 2020 has become an unpleasant year for people around the world because of the COVID-19 virus outbreak. To minimize the outbreak, Indonesian government enforced lockdown, which resulted in the decrease of people’s purchasing power. This situation affecting the sales of many companies which resulted in many losses. It makes the economy falls and goes into recession. The fall of the economy also affecting the capital market, which has fallen into the lowest point in the last five years. In this situation, investors need to be careful in managing their investments, especially in equity investment, because equity market is strongly influenced by economic condition and market sentiment. One way to manage the investment is by analysing the portfolios’ composition that will give high return with minimum risk. The model that is commonly used for portfolio calculation is Markowitz method. This method aims to construct portfolio that will give certain return and know how much the risk is by doing diversification. Based on the industrial sector growth, there are four sectors that constantly growing more than Jakarta Composite Index (JKSE) in recent months. Those sectors are Agriculture, Finance, Mining, and Trade. The stocks will be selected from those four sectors. This final project uses daily adjusted closed price data on the Indonesia Stock Exchange downloaded from yahoo finance from January 2016 to April 2021. The portfolio is analysed using the Markowitz method. The Markowitz method produce an optimum portfolio with 54,81% annual return and 24,42% risk. This portfolio consists of 26,11% DEFI; 14,92% ZBRA; 12,21% ANTM; 8,95% WICO; 8,81% INDY; 8,54% BINA; 8,21% PTRO; 6,26% BBHI; and 6,00% KONI. The Net Asset Value from this portfolio is Rp10.745.Keywords: Investment, Portfolio, Return, Risk, Markowitz
Bank Competition and Profitability in South East Asia
The Indonesian Journal of Business Administration Vol 11, No 1 (2022)
Publisher : The Indonesian Journal of Business Administration

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Abstract. Using bank-level data for periods 2010-2019, this study investigates the effect of competition and bank profitability in six South East Asian countries (Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam). The investigation is conducted by applying Panzar and Rosse (1987) methodology to characterize the competitive environment in South East Asian banking sector and followed by examination of profitability and market structure relations to determine variables that affect bank profitability. The result indicate Singapore to be highly concentrated and at times have monopoly environment, while the other five observed countries are less concentrated and have monopolistic competition. Investigation of bank profitability relationship shows market power and market concentration have no positive significant impact on bank profitability. The effect of bank-level variables have more significance on bank profitability, although impacting variables differ for different South East Asian banking markets. Keywords: ASEAN banking, bank competition, bank profitability, market structure, Panzar and Rosse

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