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INDONESIA
Economic and Finance in Indonesia
Published by Universitas Indonesia
ISSN : 0126155X     EISSN : 24429260     DOI : -
Core Subject : Economy, Education,
Aims & Scope EFI mainly covers original idea related to the Economics and Finance in Indonesia. Published articles can be either theoretical, empirical, or in between of those two polar variants. The journal covers specific areas, including but not limited to: Agricultural Economics Capital Market Demography Development Economics Economy in Crisis Economy of Rural Areas Education Economics Energy Economics Environmental and Natural Resources Economics Financial Sector Health Economics History of Economic Thoughts Industrial Economics Institutional Aspect of Economy International Economics Investment Labor Economics Maritime Economics Methodology of Economics Monetary Economics Political Economics Poverty Economics Public Policy Public Sector Economics Regional Economics Urban Economics
Articles 5 Documents
Search results for , issue "Vol. 69, No. 1" : 5 Documents clear
Energy and Economic Growth Nexus: A Long-run Relationship in Indonesia Darrian, Kelvan; Scholastica, Patricia; Kadarusman, Yohanes B.; Rafitrandi, Dandy
Economics and Finance in Indonesia Vol. 69, No. 1
Publisher : UI Scholars Hub

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Abstract

Energy plays an important role in economic growth in which it affects total factor productivity (TFP). Energy conservation efforts to address global climate change may adversely affect economic growth, particularly in the long run. This study analyses the short- and long-run relationship between energy consumption (both non-renewable (NREC) and renewable (REC)) and economic growth in Indonesia within the period of 1985 to 2019. Using the vector-error correction model (VECM), the paper discovered a short-run unidirectional causality from NREC and REC to economic growth. Economic growth in Indonesia is dependent on energy consumption. The finding proves the growth hypothesis in the energy and economic growth nexus (EGN). In the long run, only NREC has a unidirectional causality to economic growth, while REC is independent. REC supports the neutrality hypothesis rather than the growth hypothesis. The neutrality of REC in promoting economic growth in the long run indicates that Indonesia remains highly dependent on NREC to generate economic growth. Consequently, lowering NREC will adversely affect economic growth both in the short and long run. Nevertheless, Indonesia has signed a commitment to reduce carbon emissions vis a vis NREC in the context of climate change. The findings suggest that Indonesia should conduct energy transition toward REC, while conserving NREC in addition to accumulating physical and human capital to sustain high economic growth in the long run.
Social Capital and Conflict in the Post-Suharto Regime in Indonesia Hesda, Andar Ristabet; Nasrudin, Rus'an
Economics and Finance in Indonesia Vol. 69, No. 1
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This study explores the relationship between social capital and conflict in the post Suharto regime in Indonesia. We employed a combination of cross-section datasets from the Social and Cultural Module of the 2009 National Socio- Economic Survey (SUSENAS) and the media-based conflict data from National Violence Monitoring System (NVMS) of 2010–2014 in Indonesia. Using Binomial Negative Regression, our empirical analysis shows that the past social capital stocks negatively correlate with future conflict intensity. This pattern applies to most conflict types. This result indicates that the social capital stock in 2009 is more likely to be the starting point determining the conflict vulnerability in the subsequent period. Furthermore, the evaluation of the components of social capital reveals that the most crucial type of social capital is trust in neighbors, the government, and local officials. The district with high trust is less prone to conflict.
Household Demand for Food Prepared at Home and Food Away from Home in Indonesia Damayanti, Ratih; Nuryakin, Chaikal; Muchtar, Pyan Amin
Economics and Finance in Indonesia Vol. 69, No. 1
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Abstract

This study aims to analyze the demand for food among Indonesian households, consisting of foods prepared at home (FPAH) and food away from home (FAFH). Utilizing longitudinal data from the National Socioeconomic Survey 2011-2013, combined with the Village Potential Statistics, the study estimates the demand with the Linear Approximated Almost Ideal Demand System (LA/AIDS). The results show that both FPAH and FAFH are normal goods, but FAFH is more elastic than FPAH. Additionally, in terms of income elasticity, we found that households show stronger responses in consumption on FAFH, compared to FPAH. We also present heterogeneity analysis on different types of household characteristics.
A Mathematical Approach to the Money Multiplier Analysis on Indonesian 1997–1998 Monetary Crisis Siagian, Albertus Prabu
Economics and Finance in Indonesia Vol. 69, No. 1
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Abstract

In crisis moments, massive liquidity supports, extensive cash withdrawal, and large reserve hoarding can all lead to the change in monetary base, currency ratio, and reserve ratio respectively. In turn, all these disruptions could cause money supply to change. This research aims to find out which factor (among the change in monetary base, currency ratio, and reserve ratio) became the main causal factor of increasing money supply in Indonesia during 1997–1998 crisis. The method follows mathematical equation models used by Friedman & Schwartz (1963) and Stauffer (2006) in analyzing Great Depression in the US. This research has found that the change in monetary base in Indonesia during 1997–1998 crisis became the main cause of increasing money supply in that period. This result is consistent with what the other literatures had said.
Sociodemographic Effects on Financial Inclusion: Implications from Online Transaction in Developing-8 Countries Wardani, Dyah Titis Kusuma; Khusniati, Navi'ah; Darsono, Susilo Nur Aji Cokro
Economics and Finance in Indonesia Vol. 69, No. 1
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Abstract

The world has reached the industry 4.0, where technological developments have been widely applied to electronic payment, with no exception on Muslim countries. This study aims to investigate association between sociodemographic and financial inclusion in country D-8 in the probability of using online financial transactions. Using The Global Findex 2017 from D-8 Organization for Economic Cooperation included in OIC countries and the logistic regression, this study explores the effect of sociodemographic namely gender, education, income status and working status on online financial transactions users. Using control variables such as Gross Domestic Product (GDP), Inflation and Exchange reta, results show that, there is a gender imbalance between men and women in using online transaction to access formal services. On the other hand, individuals who have higher level of education, upper-middle income and high-income, and those who work are more financially inclusive in using online transaction. In conclusion, those with higher sociodemographic status are more likely to use online transaction to access formal financial services. The government and third parties can use this study as policy recommendations for expanding online transaction as well as financial inclusion in developing Muslim countries.

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