Journal of Indonesian Economy and Business
Journal of Indonesian Economy and Business (JIEB), with registered number print ISSN 2085-8272; online ISSN 2338-5847, is open access, peer-reviewed journal whose objective is to publish original research papers related to the Indonesian economy and business issues. This journal is also dedicated to disseminating the published articles freely for international academicians, researchers, practitioners, regulators, and public societies. The journal welcomes authors from any institutional backgrounds and accepts rigorous empirical research papers with any methods or approach that is relevant to the Indonesian economy and business context or content, as long as the research fits one of three salient disciplines: economics, business, or accounting. The JIEB is Internationally indexed in SCOPUS, EBSCOHost (Business Source Corporate Plus and Business Source Complete), EconLit, ProQuest, Google Scholar, DOAJ, Microsoft Academic Search, and ACI (ASEAN Citation Index). Furthermore, this journal has been nationally accredited by the Directorate-General for Research Strengthening and Development, the Ministry of Research and Technology for Higher Education, Republic of Indonesia (Decree No. 148/M/KPT/2020) in SINTA 2 (Indonesian Science & Technology Index).
Articles
77 Documents
<![CDATA[The Bank Specific Determinants of Loan Growth and Stability: Evidence from Indonesia ]]>
<![CDATA[Pananda Pasaribu]]>;
<![CDATA[Bonnie Mindosa]]>
<![CDATA[ Journal of Indonesian Economy and Business Vol 36 No 2 (2021): May ]]>
Publisher : <![CDATA[Faculty of Economics and Business, Universitas Gadjah Mada ]]>
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DOI: 10.22146/jieb.v36i2.1385
<![CDATA[Introduction/Main Objectives: This study aims to examine the specific determinants of loan growth and the consequences of excessive loan growth on bank stability. Background Problems: Bank loans play an important role in economic growth, but previous studies indicate that excessive loans lead to bank instability. Novelty: This study undertakes a comprehensive analysis, as it will discuss both the loan determinants and excessive loans simultaneously. Research Methods: This study covers more than 89% of the total loans of commercial banks (listed and non-listed banks) between 2002 and 2018 and it employs GMM in order to obtain robust estimations. Finding/Results: The growth of customers’ deposits and gross NPL are the most important factors in explaining loan growth in Indonesia. Banks with excessive loans tend to have high levels of credit risk. Conclusion: Banks’ liquidity and credit risk have important roles in explaining banks’ loans. However, excessive loans could lead to bank instability, particularly for small banks.]]>
<![CDATA[The Study of Mangrove Ecosystems’ Services Valuation in Semarang City ]]>
<![CDATA[Tito Aditya Perdana]]>;
<![CDATA[Febrianur Ibnu Fitroh Sukono Putra]]>;
<![CDATA[Risanda Alirastra Budiantoro]]>
<![CDATA[ Journal of Indonesian Economy and Business Vol 36 No 3 (2021): September ]]>
Publisher : <![CDATA[Faculty of Economics and Business, Universitas Gadjah Mada ]]>
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DOI: 10.22146/jieb.v36i3.1395
<![CDATA[Introduction/Main Objectives: This study estimates how much economic value will be lost from contact activities within the coastal areas in the research location. Background Problems: The area of Semarang City has flood and tidal problems, the damage to the mangrove forests in Semarang City began with the boom in shrimp farming between 1980 and 1990. Hopefully, this valuation can provide an overview of the current health of the ecosystem and become the basis for a mangrove management strategy in the future. Novelty: The novelty of this study is that it uses a sharper satellite (Image Pleades Resolution 0.5 m) to calculate the mangrove area in the research location. Research Methods: This research uses a total economic valuation, an estimation of the mangrove’s carbon stock and heavy metals, the replacement cost to prevent tidal flooding, and the willingness to pay. Findings/Results: We find that the existing economic value in the study area is very large and should be preserved for conservation. Conclusion: The environment cannot produce something instantly, but it needs to be preserved as a balance to nature.]]>
<![CDATA[“Getting to Denmark" from Indonesia: Starting from State Institutions or the Tax Capacity? ]]>
<![CDATA[Heru Iswahyudi]]>
<![CDATA[ Journal of Indonesian Economy and Business Vol 36 No 3 (2021): September ]]>
Publisher : <![CDATA[Faculty of Economics and Business, Universitas Gadjah Mada ]]>
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DOI: 10.22146/jieb.v36i3.1397
<![CDATA[Introduction/Main Objectives: This paper is aimed at answering the following research questions: Where should Indonesia’s journey toward a prosperous society start from? Should state institutions be improved first to increase the tax collection necessary to finance this journey? Or should the tax capacity be improved first to help improve the institutions? Background Problems: Maintaining good quality state institutions requires fiscal support and, vice versa, maintaining fiscal support through tax revenue requires the existence of good quality state institutions. This paper empirically examines which of these two aspects needs to be improved first to achieve a better society for Indonesians. Novelty: To the best of the author’s knowledge this paper may be the first that tries to empirically explore the causal relationships between the quality of Indonesia’s state institutions and its tax capacity. Research Methods: Answers to the research questions were approached by employing a vector error-correction model of governance indicators and tax revenue data for Indonesia, covering the period from 2002 to 2017. Finding / Results: It has been found that, for Indonesia, the quality of the state institutions and the tax capacity did not have a causal relationship in any direction. Conclusion: Indonesia seems to be caught in a dilemma: On one side, choosing the strategy of improving the quality of the institutions first may not be sustainable because it is unlikely to lead to improvements in the tax capacity, thus the prospects for sustaining good-quality institutions may be uncertain due to the possible lack of fiscal support. On the other hand, improving the tax capacity first does not seem to be a reliable strategy either because it may not result in better quality state institutions, hence revenue mobilization efforts might not be effective due to the incomplete support provided by the poor-quality institutions]]>
<![CDATA[Empathetic Leadership, Job Satisfaction and Intention to Leave among Millennials in a Start-up Industry: Needs’ Satisfaction as a Mediating Variable ]]>
<![CDATA[Muhammad Cesare Wicaksana Negoro]]>;
<![CDATA[Amin Wibowo]]>
<![CDATA[ Journal of Indonesian Economy and Business Vol 36 No 2 (2021): May ]]>
Publisher : <![CDATA[Faculty of Economics and Business, Universitas Gadjah Mada ]]>
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DOI: 10.22146/jieb.v36i2.1398
<![CDATA[Introduction/Main Objectives: The purpose of this research is to examine the relationship between empathetic leadership and employees' job satisfaction and the intention to leave with needs’ satisfaction as a mediating variable among millennials in a start-up business. The number of millennials will only continue to grow, and by 2025 it is expected that 75% of the global workforce will be millennials. In particular, empathetic leadership will be required to manage and control this generation if the organizations they choose to work for are to be successful, as this generation’s members have different characteristics compared to those of the older generations. Design/methodology/approach: Following a cross-sectional research design, this research collected data from 137 millennial employees of start-up companies in Indonesia. A structural equation modeling technique was used for the data’s analysis. Findings: The results reveal that empathetic leadership has a direct and positive relationship with employees' job satisfaction and has a direct and negative relationship with the intention to leave. Needs’ satisfaction partially mediates these relationships. Originality: This study makes a novel contribution to the existing literature by first providing empirical evidence that among the three dimensions of needs’ satisfaction only the relatedness dimension passed the measurement test in the structural equation modeling. Second, empathetic leadership is proven to increase job satisfaction and reduce the intention to leave among millennials, considering their unique characteristics. Research limitations/implications: The research was conducted during COVID-19 pandemic. Circumstances related to that pandemic might influence the result of this study. It is, therefore suggested to conduct the study again under normal circumstances. Policy and Practical implications: The findings of this study suggest managers should develop an empathetic leadership style in order to better manage the millennials. Leaders can be nurtured, but disciplined efforts have to be invested in their creation.]]>
<![CDATA[Antecedents and Implications of Innovation Capability: Empirical Study of Bakpia MSMEs in Yogyakarta ]]>
<![CDATA[Baroroh Dwi Nurhayati]]>;
<![CDATA[Titik Kusmantini]]>;
<![CDATA[Tri Wahyuningsih]]>
<![CDATA[ Journal of Indonesian Economy and Business Vol 36 No 2 (2021): May ]]>
Publisher : <![CDATA[Faculty of Economics and Business, Universitas Gadjah Mada ]]>
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DOI: 10.22146/jieb.v36i2.1399
<![CDATA[Introduction/Main Objectives: This research examines the antecedents and implications of innovation capability, empirically. The outcomes aim at contributing to the knowledge and understanding about the main driver of innovation capability. Background Problems: Yogyakarta is known for its many and varied charms, its tourist attractions, the availability of facilities and infrastructure to support tourism, such as souvenir sellers. But there is known that number of total foreign and domestic tourists has been a decrease in 2018 (Semester I by 11.51% and II by 3.33%), also in 2019 (Semester I by 11.23%). This is a challenge for MSMEs in the tourism sector and MSMEs in other sectors that support tourism, such a souvenir seller. Bakpia is one of the well-known products of the food and beverage sector in Yogyakarta often bought for souvenirs. The Bakpia MSMEs’ innovations were triggered by competition among the Bakpia producers in Yogyakarta. Therefore, every Bakpia MSME must be competitive to survive in the market. Thus, there is a need to improve their innovation capability, which will impact the innovation performance of the Bakpia MSMEs in Yogyakarta. There is a gap in the research regarding the influence of the factors that are predicted to build innovation capability. Novelty: Previous studies’ results indicate that the influence of knowledge donating and knowledge collecting about innovation performance is not yet conclusive. Therefore, this study aims to fill the gap in the previous research by examining the role of capability as a mediating between knowledge sharing process (knowledge donating and knowledge collecting) to innovation performance. Research Methods: Forty-eight items of data were obtained from Bakpia MSMEs in Yogyakarta through a survey conducted by distributing questionnaires directly to them. The data were analyzed using PLS-SEM via SmartPLS version 3.3.2. Findings/Results: This study shows that the direct and indirect effects of sharing knowledge (which includes donating and collecting knowledge) about innovation performance are found to be positive but not significant. The results also indicate that innovation capability does not significantly mediate knowledge donating and knowledge collecting about innovation performance. Meanwhile, the influence of innovation capability on innovation performance was found to be positive and significant. Conclusion: The antecedents are insignificant for innovation capability, but the antecedent’s constructs still act as a driver to build innovation capability.]]>
<![CDATA[Water Rights Dilemma in Indonesia: Coase Theorem and Game Theory Approach ]]>
<![CDATA[Andar Ristabet Hesda Hesda]]>
<![CDATA[ Journal of Indonesian Economy and Business Vol 37 No 1 (2022): January ]]>
Publisher : <![CDATA[Faculty of Economics and Business, Universitas Gadjah Mada ]]>
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DOI: 10.22146/jieb.v37i1.1400
<![CDATA[Introduction/Main Objectives: This paper aims to explain Indonesia's water rights dilemma and propose a potential solution to solve it using the Coasian and game theory approaches. Background Problems: Developing a mechanism that supports the citizens (and farmers) in the area surrounding water plants, maintains firm productivity, builds social cohesion, and promotes environmental improvement remains an ongoing concern. Novelty: This study utilizes the Coasian and game theory approaches to solve Indonesia's water rights dilemma. Research Methods: This research employs a game theory simulation representing the Coasian strategy in handling externalities. Findings/Results: The implementation of Coasian bargaining might be promising in solving the water rights dilemma in Indonesia. The necessary condition is high farmer commitment during the bargaining process, and the sufficient condition is a reduction of transaction costs. Conclusion: The strategies in lowering transaction costs can be accomplished by establishing an independent multidisciplinary research team, involving a government element as a mediatory body, and creating an advisory firm. This research team would aim to close the gap in institutional deficiency. The government would have a significant role in reducing the transaction cost by defining, enforcing, and transferring property rights. Lastly, the advisory firm would help to focus all business activities, operationalize agreements, and conduct monitoring.]]>
<![CDATA[The Trusting Beliefs of Users and the Intention to Continue Making Purchases via Social Commerce ]]>
<![CDATA[Ghina Fitri Ariesta Susilo]]>;
<![CDATA[Utpala Rani]]>;
<![CDATA[Siti Afidatul Khotijah]]>
<![CDATA[ Journal of Indonesian Economy and Business Vol 37 No 1 (2022): January ]]>
Publisher : <![CDATA[Faculty of Economics and Business, Universitas Gadjah Mada ]]>
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DOI: 10.22146/jieb.v37i1.1402
<![CDATA[Introduction/Main Objectives: This study aims to examine the influence of a user’s trusting beliefs on the intention to continue making purchases via social commerce. Indonesia is ranked 4th in the world for the most active online users of social media. Thus, it is necessary to investigate the influence of those variables. Background Problems: Social networks contribute to online trading by providing platforms for social commerce. The author chose the trusting beliefs concept and linked it to online users’ trust in social commerce. Novelty: Trusting beliefs variables are fundamental in shaping online users’ behaviors, but no prior research has investigated the effect of trusting beliefs on the intention to make purchases via social commerce. This study presents new research that provides a comprehensive model related to social commerce. Research Methods: This research uses purposive sampling of people who are required to have social media accounts and who have made purchases via social commerce at least once with data taken from surveys. The research uses Structural Equation Modelling (SEM). Finding/Results: This study proves that all trusting beliefs variables are supported and significant, but there is one hypothesis that is not supported (H4). Empirically, this indicates that active users are not necessarily engaging in online shopping using their social media. Conclusion: This study provides insights into the potential role of trusting beliefs driving continuing purchases in the context of social commerce research. We suggest that the sellers need to give customers-to-be more frequent and wider product reviews information so they can get results in terms of stronger product image and motivate them to make purchases via social commerce.]]>
<![CDATA[The Effect of Cognitive and Affective Involvement on Intention to Use and Word of Mouth: The Case of Zoom Users In Indonesia ]]>
<![CDATA[Nur Halimah Siahaan]]>;
<![CDATA[Aldini Nofta Martini]]>;
<![CDATA[M. Halim]]>
<![CDATA[ Journal of Indonesian Economy and Business Vol 37 No 2 (2022): May ]]>
Publisher : <![CDATA[Faculty of Economics and Business, Universitas Gadjah Mada ]]>
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DOI: 10.22146/jieb.v37i2.1403
<![CDATA[Introduction/Main Objectives: This study investigates affective and cognitive involvement that reflects psychological ownership and consumer-brand identification in the use of zoom application. Background Problems: The Zoom application was proposed because of its increasing popularity amid the Covid-19 pandemic. The selection of the zoom meeting application is the right way to find out how much the users want to continue this application both for themselves and to promote it to others by word of mouth (WOM). Novelty: This study examines the effect of cognitive and affective involvement on continuance intention to use and WOM by examining the mediating role of consumers’ psychological ownership and consumer-brand identification. Research Methods: 200 responses were analyzed using structural equation modeling (SEM) to test this study’s hypotheses. Finding/Results: The findings support the mediating role of the extent of consumer’s psychological ownership in describing the effect of affective involvement and continuance intention to use of a brand. In addition, the results support the mediating role of the extent of consumer-brand identification in describing the relationship between affective involvement and continuance intention to use a brand and engage in WOM promotion. Conclusion: These findings expand and unite existing theory on involvement and a continuing intention to use and engage in WOM.]]>
<![CDATA[Exploring the Existence of Innovative Work Behavior among Government Employee: Have Been There? ]]>
<![CDATA[Dediek Tri Kurniawan]]>;
<![CDATA[Yesiana Ihda Kusnayain]]>;
<![CDATA[Fatwah Inna Aulisaina]]>;
<![CDATA[Muhamad Arif Rahman Hakim]]>
<![CDATA[ Journal of Indonesian Economy and Business Vol 36 No 3 (2021): September ]]>
Publisher : <![CDATA[Faculty of Economics and Business, Universitas Gadjah Mada ]]>
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DOI: 10.22146/jieb.v36i3.1404
<![CDATA[Introduction/Main Objectives: This study aims to determine the existence of innovative work behavior ecosystems for Indonesia’s government employees Background problems: The quality of individual employees partially determines the quality of the organization. The abilities of the different employees who work in the same system will undoubtedly deliver the government employee and possibly produce results which are less than were expected. Novelty: The previous studies have examined innovative work behavior, focusing on the external factors and ignoring the internal factors of individual traits. This study focused on investigating the interrelationship among the factors that will be affected by innovative behavior, especially in government employees in Indonesia. Methods: This study examines the relationship among these variables using structural equation modeling (SEM) with LISREL 8.8 as the statistical tool. Finding/Result: This study found that transformational leadership and work engagement positively influence innovative work behavior. Unexpectedly, this research indicates an insignificant relationship between organizational justice and innovative work behavior among government employees. Besides, this study also found that transformational leadership and organizational justice have an impact on work engagement. Conclusion: These findings provide managerial implications about the need to strengthen employees’ innovative work behavior to ensure the organization’s continuity. Additionally, the results prove that innovative work behavior by government employees is supported by government’s role such as the style of leadership and work engagement.]]>
<![CDATA[Property Price, Capital Inflows, and Financial System Stability in ASEAN-5 Economies: A Simultaneous Analysis ]]>
<![CDATA[Sonia Anggun Andini]]>;
<![CDATA[Telisa Aulia Falianty]]>
<![CDATA[ Journal of Indonesian Economy and Business Vol 37 No 1 (2022): January ]]>
Publisher : <![CDATA[Faculty of Economics and Business, Universitas Gadjah Mada ]]>
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DOI: 10.22146/jieb.v37i1.1406
<![CDATA[Introduction/Main Objectives: This study aims to estimate the impact of capital inflows on property prices and financial system stability (FSS) in ASEAN-5 and the simultaneous relationship between the two dependent variables. During the observation period of this study, there were large capital inflows to ASEAN 5 countries after the 2008-2009 financial crisis; on the other hand property prices showed an increase in that period. Background Problems: This study indicates the simultaneous relationship between two dependent variables. In fact, using only a single equation for variables that have a simultaneous relationship can cause endogeneity problems, so the results obtained become unreliable/ biased. Novelty: The novelty of our research is we fill a gap in the previous studies by examining the relationship of property prices and financial system stability with the simultaneous method so as to solve the endogeneity problem that exists. Research Methods: We use the 2SLS simultaneous panel model to solve endogeneity problems. Finding/ Results: The results show that the massive capital inflows to ASEAN-5 countries caused a significant increase in property prices. Conclusion: This study confirms that property prices and financial system stability have simultaneous relationships. On the one hand, the impact of property prices on the financial system stability is positive and significant. On the other hand, testing the effect of the financial system stability on property prices does not show significant results.]]>
