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Contact Name
EFI LPEM FEB UI
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efi.lpemfeui@gmail.com
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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
Structural Change, Productivity, and the Shift to Services: The Case of Indonesia Ryandiansyah, Nabil Rizky
Economics and Finance in Indonesia Vol. 64, No. 2
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Abstract

Since Chenery & Syrquin (1975), the pattern of transition from agriculture-heavy economies to industry and then later to services has been central to growth literatures. But recent empirical works have casted doubts on whether developing countries are able to follow the same path. This paper analyzes whether structural change in Indonesia has been productivity-enhancing. This paper finds that structural change from 1998-2014 has not been able to generate impact on economy-wide productivity. This paper also explores possible determinants of the direction of structural change. This paper does not find commodity dependence nor human capital to have clear association with low structural productivity that is observed.
A Comparative Analysis between Islamic Banks and Conventional Banks in Indonesia Before and After Global Financial Crisis Rani, Lina Nugraha
Economics and Finance in Indonesia Vol. 64, No. 2
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The objective of this study is to elaborate the comparison and examine the stability level between Islamic and conventional banks operational in Indonesia during the period of before and after Global Financial Crisis (GFC). The impact of Global Financial Crisis on Islamic and conventional banks was analyzed using the tests of IRF (Impulse Response Function) and Variance Decomposition Analysis (VDA) which existed in the VAR (Vector Autoregressive) Method. The pre (GFC) period used in this study is between January 2003 and July 2007, whereas the post GFC is between August 2007 and December 2016. The results of this study are that Conventional and Islamic Banks are affected by macroeconomic conditions and macroeconomic turmoil in the period before and after the global financial crisis. The results of contrasting research are the responses and the effect of macroeconomic indicators on banks higher pre the GFC occurs than after the occurrence of GFC.
Corruption and Foreign Direct Investment (FDI) in ASEAN-5: A Panel Evidence Abdul Karim, Bakri, Mr; Karim, Zulkefly Abdul
Economics and Finance in Indonesia Vol. 64, No. 2
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This paper examines the effects of corruption on the inflow of FDI in ASEAN-5 countries by controlling twomacroeconomic variables namely Gross Domestic Product (GDP) and inflation. Using a static panel dataestimation, the results show the significant relationship between corruption and Gross Domestic Product(GDP) on the inflow of FDI in ASEAN-5. This results indicate that less corrupted countries and largermarket size would attract more FDI inflows. The policy implications from this study suggests that ASEAN-5 governments need to have concerted and continues efforts in improving the integrity and credibility of theiradministration and transactions. In addition, maintaining their sustainable of economic growth is also crucial as a full factor in attracting more FDI inflows in future.
Availability of Infrastructure for Poverty Reduction in Indonesia: Spatial Panel Data Analysis Pramono, Galih
Economics and Finance in Indonesia Vol. 64, No. 2
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Abstract

Poverty is a key issue in various developing countries, including Indonesia. One of the efforts to reduce poverty is building the infrastructure. Therefore, this study aims to determine the effect of infrastructure on the level of poverty by considering the spatial effect in the period 2011-2015. This study applies spatial panel data analysis with Spatial Autoregressive (SAR) model with fixed effect. The findings show that the infrastructure of electricity, health, sanitation, and building of senior high school has a significant negative impact on the percentage of the underprivileged people. Meanwhile, the building of elementary school has a significant positive impact on the percentage of the underprivileged people.
Financial Development and Income Inequality in Indonesia: A Sub-national Level Analysis Aginta, Harry
Economics and Finance in Indonesia Vol. 64, No. 2
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Abstract

This study constructs financial inclusion indicator and analyzes the link of financial inclusion and income inequality for 33 provinces in Indonesia. By using Fixed Effect Panel Model, we find financial inclusion appears to have insignificant effect to on inequality at national level. While at sub-national level, adding other variables such as GRDP, years of schooling, and trade openness, we find financial inclusion appears to have negative and significant impact on income inequality in manufacture and mining-based provinces, not in agriculture-based. The results suggest that financial inclusion helps to lower income inequality when economic condition encourage people to utilize financial access for productive purposes.
Does Gender Diversity in the Boardroom Improve Firm Performance? Evidence from Indonesia Pasaribu, Pananda
Economics and Finance in Indonesia Vol. 65, No. 1
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Abstract

This study investigates board gender diversity in Indonesia's listed firms and its effect on firm performance from 2011-2016. After addressing the endogeneity of diversity, the results in this paper show that the proportion of female in the boardroom marginally improve firm performance. Firms with two or more female in the boardroom have a stronger impact on firm performance than firms with one female in the boardroom, consistent with the critical mass effect. Finally, certain sectors will gain more benefits of appointing females in the boardroom. The results suggest that increasing gender diversity in the boardrooms can have beneficial effects on firm performance, but the benefits may be subject to the critical mass and firm industry.
The Effect of Hedging with Financial Derivatives on Firm Value at Indonesia Stock Exchange Frensidy, Prof. Dr. Budi
Economics and Finance in Indonesia Vol. 65, No. 1
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Abstract

This study aims to analyze the effect of hedging for the risks of foreign currency, interest rate, and commodity price on firm value as measured by Tobin's Q. The findings reveal that hedging with derivative instruments is insignificantly related to firm value but significantly varied in financial risks. Hedging for foreign currency risk has a significantly positive relation to firm value, while hedging for interest rate and commodity price risk has no relation. Furthermore, this study provides a novelty compared to previous studies in the utilization of the extent of hedging as the variable to measure the implementation of hedging.
Promoting the Indonesian Special Economic Zones for Tourism: Lessons from Mandalika and Tanjung Kelayang Adam, Latif
Economics and Finance in Indonesia Vol. 65, No. 1
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This paper aims to analyze the design and implementation of the policy to develop tourism special economic zones (TSEZs) in Indonesia with special reference to Mandalika and Tanjung Kelayang. Using descriptive analysis, it is revealed that these TSEZs have not attracted many investors yet. The policy design to promote the two TSEZs is unattractive, unclear, and at odds with the characteristics of the tourism sector. Furthermore, the implementing institutions have insufficient capacity and professionalism to implement the policy. Various critical actions are necessary to take. First, accelerating the provision of infrastructure. Second, clarifying several regulations to be in compliance with the characteristics of the tourism sector. Third, improving the capacity of the implementing institutions to manage the TSEZs. Fourth, encouraging both TSEZ Managements to collaborate.
Economic Inequality, Regional Development, and Internal Migration in Indonesia Khoirunurrofik, Khoirunurrofik
Economics and Finance in Indonesia Vol. 65, No. 1
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This study aims to probe the determinants of inter-provincial migration flows in Indonesia and how economic and development changes affect migration patterns. We employ three census periods, 1990, 2000, and 2010. Our study finds that an increase in relative inequality between origin and destination provinces decreases inter-provincial migration and relatively high distance elasticity in Indonesia leads to high migration cost. People are more inclined to migrate due to push factors as opposed to pull factors from the destination region, thus indicating a strong relationship between the level of regional development and the willingness of people to migrate.
Economic Change in Modern Indonesia: Colonial and Post-colonial Comparisons by Anne Booth Patunru, Arianto
Economics and Finance in Indonesia Vol. 65, No. 1
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