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INDONESIA
Law and Economics
ISSN : 18296688     EISSN : 30261929     DOI : -
The Law and Economics is an interdisciplinary Publication. It seeks to promote an understanding of many complex phenomena by examining such matters from a combined law, economics, and organization perspective (or a two-way combination thereof). In this connection, we use the term organization broadly - to include scholarship drawing on political science, psychology and sociology, among other fields. It also holds the study of institutions - especially economic, legal, and political institutions - to be specifically important and greatly in need of careful analytic study.
Arjuna Subject : Ilmu Sosial - Hukum
Articles 114 Documents
Measuring the Effect of COVID-19 on Bank Cost Efficiency in Indonesia Using Stochastic Frontier Analysis: Conventional vs Islamic Evidence Febrianto, Galih Ramadhan; Amin, Muhammad Sirojuddin
Law and Economics Vol. 20 No. 1 (2026): February: Law and Economics
Publisher : Institute for Law and Economics Studies

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35335/laweco.v20i1.294

Abstract

This study focuses on finding the impact of the Covid-19 pandemic on the cost efficiency of banks using Stochastic Frontier Analysis (SFA). Building on intermediation and risk-return theories, we contend that credit risk, profitability, capital buffers and liquidity management have different impacts on costs in crisis and normal regimes. Using SFA, we estimate a translog cost frontier and Battese-Coelli (1995) inefficiency-effects model on a balanced panel of the quarterly data of Indonesian banks over the period 2015-2024. Inefficiency is modeled using Non-Performing Loan (NPL), Return on Asset (ROA), Capital Adequacy Ratio (CAR), Loan-to-Deposit Ratio (LDR), a dummy of the Covid period (2020-2022) and interaction terms of structural change. Results show that average cost efficiency is high but significantly lower during the lives of the Covid compared to outside the pandemic and conventional banks are seen to be more efficient than Islamic counterparts, Muamalat being the least efficient. Crucially, determinant effects are state-dependent: before the pandemic NPL, ROA, and CAR are associated with less inefficiency and LDR with more inefficiency, whereas during the pandemic such associations become weaker or become opposite and LDR/FDR becomes efficiency-improving. Theoretically, we provide proof of a regime shift mechanism in efficiency drivers under disruption, which means that models of performance should take crisis interactions into account when testing banking efficiency and cross-model heterogeneity.
Legal Liability of Military Doctors for Medical Malpractice within the In-donesian Legal System Tresna, I Komang
Law and Economics Vol. 20 No. 1 (2026): February: Law and Economics
Publisher : Institute for Law and Economics Studies

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35335/laweco.v20i1.298

Abstract

Medical services provided by military doctors have distinctive characteristics due to their position under both health law and military law regimes. This dual legal framework raises specific legal issues when allegations of medical malpractice occur, particularly concerning the legal liability of military doctors. This study seeks to examine the legal accountability of military physicians for medical negligence within the Indonesian legal framework. This study utilizes a normative legal methodology incorporating legislative, conceptual, and case analyses. The legal resources comprise primary, secondary, and tertiary legal sources. The results demonstrate that military physicians are governed by national health legislation while adhering to the specific stipulations of military law. The legal accountability of military physicians for medical misconduct may manifest as criminal, civil, and administrative culpability, enforced through legal frameworks that ensure legal certainty, justice, and patient safeguarding. This research advances health law and the enforcement of legal accountability for military medical professionals in Indonesia
Reframing The Right to Regulate Clause in The Indonesia-China Investment Agreement Wailanduw, Gilbert Leonard
Law and Economics Vol. 20 No. 1 (2026): February: Law and Economics
Publisher : Institute for Law and Economics Studies

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35335/laweco.v20i1.300

Abstract

This analysis focusing on reframing the right to regulate clause as a legal mechanism for balancing Indonesia’s regulatory autonomy with the protection of Chinese investors under the Indonesia-China investment framework. Although the 1994 Indonesia-China Bilateral Investment Treaty (BIT) was terminated in 2015, its survival clause continues to provide investment protection for a period of ten years. Using a normative legal approach, this analysis focusing on legitimate expectations; legal paradigm reorientation; and the application of principle non-discrimination. This analysis proving the reconstruction right to regulate clause in the BIT is a solution to end the conflict between investment protection and the domestic policy. The  result of this analysis implying the shift of the clause from general to be more specific focusing on downstream policy as the new standard of the international investment focusing on Indonesia and China investment agreement.
3488 Operating Cost and Revenue Budgets and Financial Performance at PT PLN (Persero) Anggraini, Faulia; Triana, Windi
Law and Economics Vol. 20 No. 1 (2026): February: Law and Economics
Publisher : Institute for Law and Economics Studies

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Abstract

This study examined the effect of operating cost budgets and revenue budgets on the financial performance of PT Perusahaan Listrik Negara (Persero) Unit Tanjung Tiram, Batu Bara Regency. The research addressed the problem of fluctuating financial performance, as reflected in changes in return on assets, which indicated potential inefficiencies in budget planning and control. A quantitative approach was applied using secondary financial data covering the 2019–2023 period. The analysis employed multiple linear regression to measure the partial and simultaneous effects of operating cost budgets and revenue budgets on financial performance. The data were processed using statistical analysis software. The results showed that operating cost budgets and revenue budgets simultaneously had a significant effect on financial performance. However, when tested individually, neither operating cost budgets nor revenue budgets showed a significant partial effect on return on assets. These findings indicated that financial performance was influenced by the interaction between cost management and revenue planning rather than by a single budget component in isolation. The study concluded that integrated and balanced budget management was essential for improving financial performance, particularly in state-owned enterprises operating under public service and regulatory constraints
The Influence of Leadership Style, Work Discipline and Organisational Commitment on the Performance of Members of the East OKU Police Intel-ligence Unit Andy Bintoro; Yunita Sari; Munajat
Law and Economics Vol. 20 No. 1 (2026): February: Law and Economics
Publisher : Institute for Law and Economics Studies

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Abstract

When it comes to furthering efforts to accomplish the goals of the Police Institution's creation and existence, human resources are the most crucial component. Issues related to the organisational commitment of members of the East OKU Police Intelligence Unit. The purpose of this study is to examine how personnel of the East OKU Police Intelligence Unit perform in relation to organizational commitment, work discipline, and leadership style.  The census method is the sampling strategy employed in the quantitative descriptive analysis research approach.  Multiple linear regression analysis is used in data processing and analysis.  The findings demonstrate that work discipline and leadership style have a major impact on OKU Timur Police Intelligence Unit members' performance.  In the meantime, OKU Timur Police Intelligence Unit members' performance is not significantly impacted by organizational dedication.
Operating Cost and Revenue Budgets and Financial Performance at PT PLN (Persero) Faulia Anggraini; Windi Triana
Law and Economics Vol. 20 No. 1 (2026): February: Law and Economics
Publisher : Institute for Law and Economics Studies

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

This study examined the effect of operating cost budgets and revenue budgets on the financial performance of PT Perusahaan Listrik Negara (Persero) Unit Tanjung Tiram, Batu Bara Regency. The research addressed the problem of fluctuating financial performance, as reflected in changes in return on assets, which indicated potential inefficiencies in budget planning and control. A quantitative approach was applied using secondary financial data covering the 2019–2023 period. The analysis employed multiple linear regression to measure the partial and simultaneous effects of operating cost budgets and revenue budgets on financial performance. The data were processed using statistical analysis software. The results showed that operating cost budgets and revenue budgets simultaneously had a significant effect on financial performance. However, when tested individually, neither operating cost budgets nor revenue budgets showed a significant partial effect on return on assets. These findings indicated that financial performance was influenced by the interaction between cost management and revenue planning rather than by a single budget component in isolation. The study concluded that integrated and balanced budget management was essential for improving financial performance, particularly in state-owned enterprises operating under public service and regulatory constraints
The Effect of Price, Service Quality, and Product Quality on Customer Loy-alty with Customer Satisfaction as a Mediating Variable at Richeese Factory Muncul Branch: A Literature Study Aji Muhamad Rivky; Edward S. Tampubolon; Annuridya Rosyidta P.O; Afina Putri Vindiana
Law and Economics Vol. 20 No. 2 (2026): June: Law and Economics
Publisher : Institute for Law and Economics Studies

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Abstract

Increasingly fierce competition in the fast food industry requires companies to understand the factors that influence customer satisfaction and loyalty. This study aims to analyze the effect of price, service quality, and product quality on customer loyalty, with customer satisfaction as a mediating variable at Richeese Factory Muncul Branch. This study uses a quantitative approach with a survey method through questionnaires. The analysis technique used is Structural Equation Modeling Partial Least Squares (SEM-PLS). The data was analyzed using the SmartPLS application. The results show that price, service quality, and product quality have a positive and significant effect on customer satisfaction. Furthermore, customer satisfaction has a positive and significant effect on customer loyalty. Customer satisfaction is proven to act as a mediator in the effect of price, service quality, and product quality on customer loyalty. These findings emphasize the importance of customer satisfaction as a major factor in increasing customer loyalty in the fast food industry.
The Significance of Financial Transactions in the Process of Proving Economic Crimes and Money Laundering Ismawanto Somantri
Law and Economics Vol. 20 No. 2 (2026): June: Law and Economics
Publisher : Institute for Law and Economics Studies

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Abstract

Financial transactions play a crucial role in the process of proving economic crimes and money laundering, as they are the primary means of tracing the flow of proceeds of crime (follow the money). This study aims to analyze the significance of financial transactions as evidence, the forms and patterns of transactions used to disguise the proceeds of crime, and the authority of law enforcement agencies in utilizing financial transaction data for evidentiary purposes. The method used is normative legal research through library research and qualitative analysis of relevant laws, doctrines, and literature. The results indicate that financial transactions play a significant role in proving economic crimes and money laundering. The complex and evolving transaction patterns that follow the stages of money laundering (placement, layering, integration) require in-depth analysis. Law enforcement agencies, including the Police, the Prosecutor's Office, and the Corruption Eradication Commission (KPK), utilize financial transaction data from the Financial Transaction Reports (PPATK), such as the Suspicious Financial Transaction Report (LTKM), as primary evidence. This suspicious transaction reporting and analysis system enables effective tracing of the flow of proceeds of crime to support investigations, inquiries, and evidence presentation in court.
Analysis of the Influence of Financial Performance Factors Before and After Mergers and Acquisitions Amin Wijoyo; Steven Wiryajaya; Cordelia Stella Chandra
Law and Economics Vol. 20 No. 2 (2026): June: Law and Economics
Publisher : Institute for Law and Economics Studies

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35335/laweco.v20i2.302

Abstract

This research seeks to provide empirical evidence on changes in banking financial performance before and after mergers and acquisitions (M&A). Performance is assessed using several commonly applied financial ratios in the banking sector, namely Capital Adequacy Ratio (CAR), Return on Assets (ROA), Return on Equity (ROE), Non‑Performing Loans (NPL), Operating Expenses to Operating Income (BOPO), Loan to Deposit Ratio (LDR), and Total Asset Turnover (TATO). These indicators were selected because they capture diverse aspects of asset utilization within banks. This research population includes banks registered on the Indonesia Stock Exchange (IDX) during the 2011–2024 period that were involved in mergers and acquisitions. Using purposive sampling, 11 institutions met the criteria. Secondary data from annual reports were analyzed, with initial calculations performed in Microsoft Excel and further statistical testing conducted in SPSS. Depending on the normality results, differences were examined using either the paired sample t‑test or the Wilcoxon signed‑rank test. The findings are expected to contribute both academically and practically by evaluating the effectiveness of M&A strategies in enhancing the performance of Indonesian banks
Analysis and Design of it Service Users in Problem Management and Inci-dent Management in Hospitals Ali Imron; Zena Lusi; Putri Intan Avita; Fahri Rahman
Law and Economics Vol. 20 No. 2 (2026): June: Law and Economics
Publisher : Institute for Law and Economics Studies

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Abstract

Utilization of Information Technology (IT) in the healthcare sector plays a vital role in improving service quality, operational effectiveness, and patient satisfaction. The Banyuasin Regional Hospital (RSD Banyuasin) faces challenges in managing incidents and IT service-related problems that may disrupt both medical and administrative services. This study aims to analyze and design IT service governance processes for Incident Management and Problem Management based on the ITIL V4 framework. The research method involves observations, interviews, and analysis of supporting documents to identify the current conditions, user needs, and gaps through a gap analysis against ITIL best practices. The analysis results indicate that incident handling processes are not systematically documented and lack a structured escalation mechanism, while problem management remains reactive without proper root cause documentation. Based on these findings, an IT service design model was developed that integrates the workflows of Incident Management and Problem Management in accordance with ITIL V4 principles, including identification, recording, classification, escalation, and continuous improvement. This design is expected to enhance the responsiveness of incident handling, reduce the recurrence of problems, and support the continuity of IT services at RSD Banyuasin

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