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Contact Name
EFI LPEM FEB UI
Contact Email
efi.lpemfeui@gmail.com
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Journal Mail Official
efi@lpem-feui.org
Editorial Address
Institute for Economic and Social Research (LPEM-FEUI) Jl. Salemba Raya No. 4, Jakarta, Indonesia, 10430
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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 104 Documents
Types and Severities of Export Barriers: Evidence from Indonesian SMEs Revindo, Mohamad
Economics and Finance in Indonesia Vol. 63, No. 2
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Abstract

Small and Medium-sized Enterprises (SMEs) are more constrained to export than their large counterparts and SMEs' limited participation in export market is more prevalent in developing than in developed countries. Extant literature suggests that SMEs encounter a set of export inhibiting factors distinct to those faced by large firms and therefore accurate identification of export barriers is crucial in fostering SMEs export. This study investigates the export barriers faced by Indonesian SMEs. The evidences were collected from 271 exporting SMEs and 226 non-exporting SMEs in seven provinces in Jawa, Madura and Bali regions. The results show that the types and severities of export barriers perceived or encountered by SMEs vary across export stages and across products/industries. Further, export barriers can be distinguished by their general or specific nature. The policy and managerial implications of the findings are discussed.
Revenue and Distributional Impact Analysis of Indonesian Personal Income Tax Reform in 2008 Wijayanto, Bimo; Vidyattama, Yogi
Economics and Finance in Indonesia Vol. 63, No. 2
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Abstract

Since 1983, Indonesian tax policy has been the subject of ongoing reforms in order to replace the old colonial tax arrangements, reduce income dependency from oil and gas, decrease the government's foreign debt and maintain its fiscal sustainability. Nevertheless, after 25 years of reform, actual Indonesian tax performance is still far from what might have been expected as Indonesia have one of the lowest total tax ratios among the ASEAN countries. This research show that the most recent changes put in place may have reduced potential tax revenue from personal income but an increase in the compliance rate.
Tourism and Economic Development in ASEAN 1998-2013 Ardra, Umara; Martawardaya, Berly
Economics and Finance in Indonesia Vol. 63, No. 2
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Abstract

Many countries support government policies to encourage tourism sector, including ASEAN countries, due to an assumption that tourism contributes positively to GDP and poverty reduction. This study investigates that assumption, as well as the correlation between tourism and HDI, by applying panel data regression to eight ASEAN countries (Brunei Darussalam, Indonesia, Laos Singapore, Malaysia, Thailand, the Philippines, and Vietnam,) during 1998-2013. We found that the number of international tourist arrivals as a proxy variable for tourism have a significant and positive correlation with poverty reduction. Tourism is also proven to increase GDP per capita (albeit in a smaller magnitude) and increase HDI (in an even smaller scale). These findings confirmed our hypothesis on the positive effects of tourism. It is recommended that the tourist promotion is continued while studying the best practices to strategically develop the tourism sector in order to strengthen the positive correlation.
Mapping Persons with Disabilities (PWDs) in Indonesia Labor Market Halimatussadiah, Dr. Alin; Nuryakin, Chaikal
Economics and Finance in Indonesia Vol. 63, No. 2
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Abstract

The empowerment of Persons with Disabilities (PWD) has recently attracted the attention of the Indonesian government. Several initiatives have been made to empower their life, especially the establishment of Act No. 8/2016 which enhances their right to inclusive economic activities. This study aims to map PWD in Indonesian labor market. Specifically, it analyzes the characteristics of employed and unemployed PWD. It explored Labor Force Survey (Sakernas), which began to concern on disability issue in 2016. The results show that PWD prevalence varies highly among provinces led by West Sumatera, East Nusa Tenggara, and South Sulawesi and that PWD has lower labor participation rate than that of PWOD. It may indicate the significant presence of discouraged workers among PWD.
Determinants of Port Performance - Case Study of 4 Main Ports in Indonesia (2005-2015) Aqmarina, Atika
Economics and Finance in Indonesia Vol. 63, No. 2
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Abstract

Port plays significant role in supporting economic growth of a country. This study aims to analyze the determinant of port performance in Indonesia. In this research, the ports selected are four main ports in Indonesia which are Port of Belawan, Port of Tanjung Priok, Port of Tanjung Perak, and Makassar. These ports are designed as the hub ports in the national sea transport system of the country. The study used pooled OLS as the methodology to analyze the determinant. The result of this studies shows that total traffic is not influenced by operating surplus per ton, whereas the rest of variables such as turnaround time, idle time, berth of occupancy rate, rate of return, number of employee and cargo equipment have significant results and significantly influenced the total traffic.
Modification of the Regulatory Impact Assessment on Indonesia's Economic Policies Verico, Kiki
Economics and Finance in Indonesia Vol. 64, No. 1
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Abstract

This paper modifies the Regulatory Impact Assessment (RIA) method in Indonesia's trade, investment, and industrial incentive policies. First, it analyses the Indonesian Bilateral Trade Agreements of Indonesia - Japan Economic Partnership Agreement (IJEPA) and Indonesia - Pakistan Preferential Trade Agreement (IP-PTA) This paper found if the trading partner has GNI per capita higher than Indonesia's then the expected outcome was the increasing FDI inflows and if its GNI per capita lower therefore the most top foreseeable result was the rising net trade balance of Indonesia. Second, it analyses industrial sector incentive analysis and found that firms prefer supply-side than fiscal incentives.
Income Inequality between Formal-Informal Employees Based on Education Group Satria, Dias
Economics and Finance in Indonesia Vol. 64, No. 1
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Abstract

Integrally, the informal sector deals with the formal sector with pro-cyclical nature or as a complementary sector. Such conditions allow for wage disparity between sectors even in the same education group. Thus, this study seeks to determine the determinants of wage inequality between formal and informal employees in skilled and unskilled workers in Indonesia in 2017 using Blinder-Oaxaca decomposition. The results showed that the discrimination factor had a greater influence than the endowment factor on wage inequality and the endowment factors that contributed to the increase in wage inequality between the two groups were age squared, experience, and job training.
Recent Developments in Indonesia's Macro-economy and Trade, Q1-2018 Kacaribu, Febrio
Economics and Finance in Indonesia Vol. 64, No. 1
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This paper discusses Indonesia's macroeconomic and trade development in the first quarter of 2018. The macroeconomic data shows that the industrial growth was inhibited by regulatory regime inconsistency, while consumption growth still lagged overall GDP growth, and investment growth tended to rise. The trade data shows that the non-oil-and-gas commodities dominated its export, although the commodities terms-of-trade declined. Indonesia's imports were mostly used as raw and auxiliary materials for the input of domestic production. The data also reveals that the larger the firms, the stronger tendency that they have comparative advantage in capital-intensive commodities, and vice versa.
Does Manufacturing Sophistication Lead to Higher Demand for Vocational Workers? Evidence from Indonesia Wicaksono, Padang; Priyadi, Lionel
Economics and Finance in Indonesia Vol. 64, No. 1
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Abstract

Indonesia post-crisis manufacturing growth has been dominated by technologically sophisticated industry. Hypothetically, this development would increase the demand for skilled and more specialized workers like vocational school graduates. However, statistical evidences show that manufacturing sophistication stimulated by integration with the Global Production Network increase demand for vocational as well as general high school graduates. Moreover, higher demand does not necessarily result in sustainable career prospect, as many vocational graduates still have limited opportunity to improve their skills while climbing the seniority ladder possibly caused by shifting Global Value Chain from export-oriented toward domestic market-oriented that affect the industry's technological complexity.
The Relationship of VAT Rate and Revenues in the Case of Informality Qibthiyyah, Riatu M.
Economics and Finance in Indonesia Vol. 64, No. 1
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Abstract

This study explored relationship between tax rate and revenues in the case of VAT, one of few type of consumption taxes that is considered to be a broad-based tax. Based on a larger set of countries - in comparison to previous studies, this study shows VAT rate has an inverted U-shaped relationship to VATÂ revenues, confirming the Laffer Curve theory. Exploring further on the effect of informality to maximum VAT rate, we found that higher informality will reduce government flexibility in its effort to increase tax rate. Furthermore, openness has significant and positive effect on VAT revenues performance, and tax administration capacity may also play role on improving VAT revenues performance.

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