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Shochrul Rohmatul Ajija
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East Java Economic Journal
Published by Kantor Perwakilan Bank Indonesia Provinsi Jawa Timur
ISSN : 25978780     EISSN : 28302001     DOI : https://doi.org/10.53572/ejavec.v6i1.73
Core Subject : Economy, Social,
Economics, Econometrics & Finance Social Sciences
East Java Economic Journal invites manuscripts on an economics area, but not limited to economic development, finance, monetary, international trade, environmental, energy, public economics, econometrics, microfinance, health economics, and political economics related to the economy of East Java.
Arjuna Subject : Ilmu Ekonomi, Ekonometrika dan Keuangan (semua kategori) - Ilmu Ekonomi, Ekonometrika dan Keuangan (Lain-Lain)
Articles 119 Documents
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The Role of Industrial, Agricultural, and Household Economic Activities in The Formation of a Green Economy in East Java: Determinants from a Spatial Perspective Anam, Yongky Choirul; Lubis, Deltha Airuzsh; Miranti, Ragdad Cani
East Java Economic Journal Vol. 9 No. 1 (2025)
Publisher : Kantor Perwakilan Bank Indonesia Provinsi Jawa Timur

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53572/ejavec.v9i1.154

Abstract

This paper aims to evaluate spill-over effects of green economic growth and the role of driving factors across 38 districts in East Java. Using the 2018-2022 period, this paper measures Green Total Factor Productivity (GTFP) as the proxy of green economic development at sub-national level in East Java, while ICT index, fiscal-related policy, environmental regulation, and foreign direct investment are applied as the determinants of green growth. Emission in GTFP levels are the impact of household activities, the agricultural sector, and the processing industry. We find the persistence and appealing pattern of GTFP over the time, indicated by the increasing number of districts which generate green productivity index over. The results show the existence of spatial dependence and spatial-spillover effect in terms of green economic development in East Java, meaning that the increasing index of green productivity in a district tends to increase green productivity in neighboring regions. However, there are considerable differences of determinants which affect green productivity across districts in East Java. From spatial heterogeneity perspectives, we evaluate that each group of regions are affected by the different factors. Looking from policy perspectives, our findings suggest that one-size-fits-all policy is not proposed for promoting equal green growth across East Java districts. Instead, augmenting different treatments and policies based on spatial heterogeneity are more demanded to be applied.
Positioning Halal Branding in International Trade Masruroh, Nikmatul
East Java Economic Journal Vol. 9 No. 1 (2025)
Publisher : Kantor Perwakilan Bank Indonesia Provinsi Jawa Timur

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53572/ejavec.v9i1.157

Abstract

This study aims, first, to explore the implementation of halal branding in international company, and second, to analyze the positioning of international companies utilizing halal branding. These objectives are investigated through a qualitative approach using a case study method. The study focuses on the international company PT Mitratani Dua Tujuh. The company specializes in edamame products exported to Japan, Dubai, the UK, and various other countries worldwide. Data were collected through interviews, observations, and documentation. The data were analyzed using interpretive analysis with the flow model stages of Miles and Huberman. Data validity was tested through source triangulation and technique triangulation. This research produced the following findings: first, international companies, despite holding various trade certifications such as HACCP and BRGC, must still possess halal certification. Second, international companies using halal branding can outperform competitors due to advantages in safety and health aspects. Halal branding serves as a differentiation, creating a safety barrier to entry. This study concludes that halal branding elevates products to become prestigious and differentiated offerings.
Environmental Efficiency of Rice Farming in East Java Zulkarnain, Rizky
East Java Economic Journal Vol. 9 No. 2 (2025)
Publisher : Kantor Perwakilan Bank Indonesia Provinsi Jawa Timur

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53572/ejavec.v9i2.111

Abstract

Sustainable agriculture is not only global agenda, but also becomes national and regional agenda. Rice farming is a key factor of national food security, where East Java province has a vital role as the largest rice producer in Indonesia. Unfortunately, excessive practices in agriculture lead to detrimental impact on environment, such as greenhouse gas (GHG) emissions, land degradation and water pollution (eutrophication). This study aims to measure environmental efficiency of rice farming in East Java and also to analyze its determinants. This study employs stochastic frontier model to measure environmental efficiency as well as to examine the effects of various factors. The results shows that environmental efficiency of rice farming in East Java is generally low, with average score 0.463. This result suggests that there is opportunity to enhance environmental efficiency of rice farming in East Java by 53.7%. The low environmental efficiency is influenced by the low labor quality (education and managerial quality), low technology adoption, physical environment, and institutional environment (land ownership, counseling, credit access, social network). Based on this study, various policy interventions can be implemented to improve environmental efficiency.
Exchange Rate and Trade Balance of East Java Province: J-Curve Evidence and ARDL Approach Syamad, Syamad
East Java Economic Journal Vol. 9 No. 2 (2025)
Publisher : Kantor Perwakilan Bank Indonesia Provinsi Jawa Timur

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53572/ejavec.v9i2.112

Abstract

The primary objective of this study is to examine the impact of exchange rate fluctuations on the trade balance between East Java Province and its principal trading partners—namely China, Japan, and the United States—while also assessing the presence of the J-Curve phenomenon. The Autoregressive Distributed-Lag model estimation indicates that the exchange rate has an insignificant effect on East Java’s trade balance in the short run, while exerting a statistically significant negative influence in the long run. The empirical findings indicate the absence of a J-Curve phenomenon in East Java’s trade balance with its main trading partners. This outcome implies that the region’s trade flows are predominantly price-inelastic, as exchange rate depreciation fails to generate the expected short-run deterioration followed by long-run improvement. Therefore, currency depreciation is not an effective policy instrument for enhancing export performance, as its benefits are confined to a limited subset of sectors.
The Impact of Industrial Agglomeration on Labor Misallocation in East Java Purnomo, Wisnu; Primanthi, Martha Ranggi
East Java Economic Journal Vol. 9 No. 2 (2025)
Publisher : Kantor Perwakilan Bank Indonesia Provinsi Jawa Timur

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53572/ejavec.v9i2.156

Abstract

Agglomeration is believed to offer various advantages to firms located within its area. One such benefit is the potential reduction in labor misallocation. However, theoretical expectations do not always align with real-world practices. This study aims to analyze the impact of industrial agglomeration areas on the degree of labor misallocation in East Java by utilizing panel data from the Large and Medium Manufacturing Industry Survey (IBS) for the period 2010–2015. The analysis employs a fixed effects panel regression method. The findings reveal that firms located within agglomeration areas experience a labor misallocation level 2.52 times higher than those outside such areas. Additionally, a 1% increase in the number of workers leads to a 0.122% increase in labor misallocation. Exporting firms tend to exhibit a higher level of misallocation compared to non-exporting firms, by 1.926 points. Moreover, the study finds that a higher Herfindahl-Hirschman Index (HHI) among firms also contributes to greater labor misallocation. Specifically, a one-point increase in the HHI is associated with a 0.7% rise in labor misallocation
Economic Valuation of Three Coastal Tourism Objects Owned by the Local Government of Tulungagung Regency Erlando, Angga; Fanani, Zaenal; Darmawan, Andre Pupung; Hapsari, Reni Sri; Riza, Ahmad Ibnu; Hakim, Annisa Nurul
East Java Economic Journal Vol. 9 No. 2 (2025)
Publisher : Kantor Perwakilan Bank Indonesia Provinsi Jawa Timur

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53572/ejavec.v9i2.158

Abstract

This study aims to evaluate three beach tourism destinations managed as assets by the Tulungagung Regency Government, namely Popoh Beach, Sidem Beach, and Sine Beach, to optimize their management and revenue generation for the benefit of the community and the region. The research employs an inferential quantitative method using negative binomial regression techniques, based on primary data collected through direct visitor surveys conducted in 2023. The fundamental model is developed using the Travel cost Method (TCM) as a concept to assess demand for environmental services in the form of recreational activities. The economic valuation results show that using the TCM method, the three beaches possess moderate potential value for commercialization. However, based on the annual revenue data, the total income generated by these beaches remains below IDR 1 billion, indicating challenges in promotion/branding, management, and commercialization (sales) strategies that need to be addressed moving forward. Meanwhile, the calculation of Willingness to pay (WTP) using the Contingent Valuation Method (CVM) focuses solely on the willingness to pay for increased ticket prices. When analyzing the consumer surplus values of each beach destination, it is evident that the consumer surplus significantly exceeds the total WTP
Spatial Analysis of Tourism Economic Networks in East Java: A Modified Gravity Model Approach with Big Data Integration Handoko, Dwi; Hariyanto, Annisa Dira; Adityasna, Hardi; Afrianto, Firman
East Java Economic Journal Vol. 9 No. 2 (2025)
Publisher : Kantor Perwakilan Bank Indonesia Provinsi Jawa Timur

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53572/ejavec.v9i2.166

Abstract

Research on the spatial structure of tourism economic networks remains limited, whereas understanding how tourism economic components are interconnected and interact within a geographical area is crucial. This study aims to fill these limitations by analyzing the strength of interaction and the spatial structure of the tourism economic network in East Java, both now and in the future. This research employs a modified gravity model that integrates big data as a proxy for tourism economic variables. Spatial network analysis was conducted using Spatial Design Network Analysis (SDNA) with four centrality algorithms. The results showed that the main centers or hubs of the tourism economic network in East Java are Batu City, Malang Regency, and Surabaya City, based on the total number of nodes or variables. While the analysis per variable revealed differences in the main centers, indicating complexity and diversity in the interactions, connections, and clusters of the tourism economic network in East Java. Road network planning in the East Java Provincial RTRW until 2043 is predicted to have a significant impact on the connectivity, attractiveness, and accessibility of the road network, which in turn will affect tourism economic growth in East Java. However, the uneven improvement of accessibility, especially in Madura Island, is a challenge in itself. This research offers valuable insights into the spatial dynamics of the tourism economic network in East Java and its implications for regional economic development, providing policy recommendations to optimize the impact of road network planning on the tourism sector.
Analysis and Strategy of Strengthening Green Economy Through the Value Chain ​​Concept to Support Downstreaming of Coffee Farming in East Java Fiba, Ivo Rajava; Salsabila, Raissa Aulia
East Java Economic Journal Vol. 9 No. 2 (2025)
Publisher : Kantor Perwakilan Bank Indonesia Provinsi Jawa Timur

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53572/ejavec.v9i2.169

Abstract

This study aims to analyze the coffee value chain and formulate strategies to strengthen downstream coffee farming in East Java Province within a green economy framework. Primary data were collected through surveys and interviews conducted in 2024 with three key actors: farmers, historians, and government officials. The analysis was conducted using the Hayami method to measure product added value, Rapfish to assess value chain variability, and AHP to determine priority strengthening strategies. The results indicate that the greatest added value is obtained when farmers process coffee from cherries to ground coffee. A unique analysis indicates that ecological and market dimensions still require further development. The resulting strategic priorities are training and certification of Good Agricultural Practices (GAP), facilitating market access through e-commerce and direct trade, and local government policies that encourage the use of local coffee. These findings emphasize the importance of downstream coffee processing as a means to enhance farmer welfare while promoting the transition to a green economy in East Java.
Spatial Analysis of Spillover Effects in The Manufacturing Industry: The Influence of Infrastructure and Industrial Estates in East Java Through an Open Data Approach Primasrani, Byun Jiye; Akbar, Fadly Muhammad; Dirgantara, Muhammad Prabu
East Java Economic Journal Vol. 9 No. 2 (2025)
Publisher : Kantor Perwakilan Bank Indonesia Provinsi Jawa Timur

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53572/ejavec.v9i2.202

Abstract

The transition from labor-intensive to capital-intensive industries is a key driver of long-term economic growth. East Java Province holds a strong foundation in the manufacturing sector, positioning it as a locomotive of national industrial growth. While local industrial estates contribute to increasing value-added, the concentration of economic activity also carries the risk of widening spatial disparities between regions. This study aims to examine the spillover effects of industrial estates and infrastructure on manufacturing output. Furthermore, it classifies districts and municipalities based on the most significant and promising variables for the development of new industrial zones. The dependent variable used is manufacturing output, while the independent variables include toll road length, the number of Base Transceiver Stations (BTS), Night-Time Lights (NTL), the Human Development Index (HDI), manufacturing investment, manufacturing labor, minimum wage, and an industrial estate dummy. The analytical method employed is spatial analysis using the Spatial Durbin Error Model (SDEM). The results indicate the presence of positive spillover effects from industrial estates, while BTS and NTL have a direct influence on manufacturing output. Conversely, toll road length, HDI, manufacturing investment, and manufacturing labor primarily affect the sector indirectly. Potential areas for future industrial estate development include urban centers such as Kediri City and Malang City.

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