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INDONESIA
Journal of Indonesian Applied Economics
Published by Universitas Brawijaya
ISSN : 19077947     EISSN : 25415395     DOI : -
Core Subject : Economy,
Journal of Indonesian Applied Economics (JIAE) is an online journal sponsored by the Faculty of Economics and Bussiness, Universitas Brawijaya. The purpose of this journal is to enhance the study of economic issues on all aspects of applied economics and finance.
Arjuna Subject : -
Articles 169 Documents
Role of Creative Economy on Local Economic Development Pratomo, Satrio; Ashar, Khusnul; Satria, Dias
Journal of Indonesian Applied Economics Vol 9, No 2 (2021)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.JIAE.009.02.4

Abstract

Local economic development in Indonesia is still quite minimal, requiring new policies and strategies such as the creative economy. This study analyzes the influence of the creative economy as represented by the concentration of the creative class and its supporting factors on local economic development. Using panel data from Barekraf / BPS statistics for 2011-2015, the results show that the concentration of the creative working class has a significant impact on local economic development including supporting factor such as proportion graduated high educated, electrification ratio and internet coverage ratio. These findings indicate that the creative working class can encourage the growth of local economic development in a region.
THE ROLE OF VILLAGE FUNDS IN VILLAGE FINANCIAL INDEPENDENCE (A Case Study in Jombang Regency) Susanto, Arys Wahyu; Khusaini, Moh.; Badriyah, Nurul
Journal of Indonesian Applied Economics Vol 9, No 1 (2021)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2021.009.01.4

Abstract

This study aimed to analyze the factors that affect village original income as a component of village financial independence and evaluate the role of village funds for community empowerment in strengthening the influence of VoE on village original income in Jombang Regency. This study used the Moderated Regression analytical method with the Robust Least Square method to test the cross-sectional data provided by Siskeudes of Jombang Regency of 2019. The analysis results showed that village asset utilization affects village original income positively and significantly. Furthermore, it also confirmed the moderating role of the village fund for community empowerment in strengthening the influence of Village-owned Enterprise (VoE) on village original income. These findings indicated that the allocation of village funds to targeted community cmpowerment activities has encouraged the role of VoE in increasing village original income.
Ethnicity, Migration, and Entrepreneurship in Indonesia Cahyono, Erwin; Syafitri, Wildan; Susilo, Agus
Journal of Indonesian Applied Economics Vol 9, No 1 (2021)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2021.009.01.1

Abstract

Extant studies demonstrate the vital roles of ethnicity group and culture influencing individual intention and decision to become an entrepreneur. Meanwhile, in the entrepreneurial decision, each ethnic group has different preferences regarding where to run it, at the origin or overseas. This study examines the roles of group ethnicity and culture in affecting the likelihood of an individual’s choosing entrepreneurship as their occupation using the combined data of the Indonesian Family Life Survey (IFLS) and the Population Census Report. Our findings substantiate that group ethnicity and culture significantly influence the likelihood of entrepreneurial decisions. Furthermore, using Javanese as a reference, we found the Balinese, Batak, Chinese, South Sumatran, and Minangkabau tend towards entrepreneurship. The difference is that the Balinese, Batak, Chinese, and South Sumatran tend to run their business around where they live, while the Minangkabau are overseas.
Determinants of Household Poverty Status in Kediri City Khusaini, Mohamad; Prasetyia, Ferry
Journal of Indonesian Applied Economics Vol 9, No 2 (2021)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.JIAE.009.02.5

Abstract

Analyses of the causes and the characteristics of poverty at micro levels provide more efficient strategies for the attainment of main Sustainable Development Goals. This study aimed to analyze the extent to which the characteristics of individuals, households, and communities influence the probability of household poverty status. The 2019 Social Welfare Integrated Data and Village Potential Data of Kediri City were analyzed using an ordered logit regression model and then interpreted based on marginal effect calculation. The study found that household heads’ squared-age, household members’ education, household members’ occupation, household head gender (female), ownership of assets, access to the internet, access to proper sanitation, and access to financial institutions reduced the probability of households being categorized as very poor and poor. This finding indicated that household productivity influenced by the household head’s characteristics in managing productive assets, supported by access to infrastructure, could increase the household's welfare. However, the household head’s age and marital status, dependency ratio, and access to health facilities increased household’s probability of being very poor and poor. Policies regarding poverty must be adjusted to the poverty characteristics and status. Improving access, equalizing education, and improving job opportunity and infrastructure management that ensure accessibility and enhancement in service quality need to be made to increase the status of households with the lowest 40% welfare in Kediri City. Policies regarding poverty should be focused more on social programs for very poor and poor households. Meanwhile, those near-poor and vulnerable-to-poor need more empowering programs.
Migration Flow and Social Protection Policy: Case Study Indonesia – Malaysia Wijayanti, Febry; Turgel, Irina Dmitirevna
Journal of Indonesian Applied Economics Vol 9, No 1 (2021)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2021.009.01.5

Abstract

Nowadays, the rest of the world concentrates on increasing global economies through the development of technology and productivity growth. This intent creates uneven economic opportunities, inequality, and social disparity between developed, developing, and undeveloped countries. On the other hand, the discrepancy between them contributes to increasing the migration flow, particularly in ASEAN. Moreover, the population movement between Indonesia-Malaysia majority is a low-skilled migrant and brings several problems for both countries. Thus, the scheme of social protection for a migrant becomes a crucial matter to implement. Hence, this paper aims to acknowledge the migration flow and assess Indonesia and Malaysia's social protection schemes. The result shows that distance is an essential variable of Indonesia's worker migrant than Malaysia's wage rate. Hence, the discourse for stopping worker migrants, particularly domestic workers, is not a great solution. Notably, the government should create a proper MoU with Malaysia to protect worker migrants, particularly domestic workers.
Fiscal Decentralization, Economic Growth and Regional Development Inequality in Eastern Indonesia Nur Farida; Agus Suman; Rachmad Kresna Sakti
Journal of Indonesian Applied Economics Vol. 9 No. 2 (2021)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.009.02.1

Abstract

This study analyzes the relations between fiscal decentralization, economic growth, and regional development inequality in Eastern Indonesia using 2016-2019 panel data of thirteen Eastern Indonesia provinces obtained from Statistics Indonesia and the Directorate General for Fiscal Balance. Using simultaneous equations estimated through the Three-Stage Least Squares, this study finds that fiscal decentralization has not fully supported economic growth and correct the inequality in eastern Indonesia’s regional development. The mandate for managing the budget has not been optimally used by the local governments, indicated by poor allocation for productive expenditures and its decreasing proportion during the research period. It is caused by poor human resource quality in budget planning and management, which finally hinders the quality of public service and economic growth. Supports from physical and human capital are required to keep up with the occurring economic activities so that inequality in regional development in the area can be reduced.
Local Pride Movement As A Local Sneaker Branding Strategy Suseno, Bayu Aji; Hidayat, Anwar
Journal of Indonesian Applied Economics Vol 9, No 2 (2021)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.JIAE.009.02.6

Abstract

This research aims to determine the revival of local pride tagline or slogan as a social movement for being proud of wearing local sneaker brand. In this research, the branding theory was used to analyze the formation of local pride or being pride of Indonesian-made products slogan or taglines. This research used a qualitative method with an analytic descriptive approach. Meanwhile, data were collected through non-participant observation to obtain an overview or information about objective or event conditions. The research result showed that the local pride movement practiced through cross-industry collaboration with influencers was able to build the brand personality of local shoes on consumers’ buying interests. The level of consumer ethnocentrism in the community resulted in brand awareness providing significant effects on the decision to buy local shoes. It was also in line with the government policy through restriction on imported commodities for products or goods that can be made domestically. The Content digital marketing was adopted by developing a proud Indonesian products theme. It was carried out through a hashtag for #LocalPride to increase the number of local shoes product sales, and it also can be used as a promotional tool that has proven to be effective to increase the number of followers on social media.
INTEGRATED LINKAGES TO THE SUSTAINABILITY OF DINOYO CERAMIC VILLAGE, MALANG Efani, Anthon; Manzilati, Asfi; Bakar, Abu
Journal of Indonesian Applied Economics Vol 9, No 1 (2021)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2021.009.01.2

Abstract

Dinoyo is a ceramic handicraft center in Malang City. The cultural potential of the Dinoyo people, especially ceramic craftsmen, which has survived to this day is one of the fulcrums for cultural preservation efforts. The purpose of this research is to create a marketing strategy, to improve the sustainability of the Dinoyo Ceramic Village both in terms of production and function of the village as a center for literacy and cultural preservation in Malang City and one of them is through the optimization of promotional media to increase sales and support promotional events in Dinoyo Ceramic Village. The method used in this research is descriptive qualitative structured interviews. The results showed that the dinoyo ceramic village had not made good use of the marketing strategy so that it needed optimization of online media partnerships and the use of online social media. Thus this research contributes to increasing the competitiveness of dinoyo ceramics in order to improve community welfare.
Competitiveness E-Commerce: An Empirical Study on MSMEs Producing Tempe Sanan Chips in Malang City Chandra Mayasari; Ferry Prasetyia
Journal of Indonesian Applied Economics Vol. 9 No. 2 (2021)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.009.02.2

Abstract

This quantitative research was conducted to determine the effect of e-commerce adoption on the competitiveness of MSMEs in Tempe Sanan Chips Industry Center, Malang City. This study used primary data obtained from questionnaires distributed to respondents who were owners of the MSMEs in Sanan Tempe Chips Industry Center who had adopted e-commerce. This study used the Partial Least Square (PLS) method and employed SmartPLS 3.0 as a tool. The results of the analysis showed that the variable e-commerce adoption has a positive and significant effect on MSME competitiveness; the control variables human resources and business environment were found to have a positive and significant effect on e-commerce adoption; the control variables product innovation and product quality do not have a positive and significant effect on e-commerce adoption; the variables human resources, product innovation, and product quality do not have a significant effect on MSME competitiveness; and the control variable business environment has a significant positive effect on MSME competitiveness.
Determinants of Household Poverty Status in Kediri City Mohamad Khusaini; Ferry Prasetyia; Yennie Dwi Rozanti
Journal of Indonesian Applied Economics Vol. 9 No. 2 (2021)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.JIAE.009.02.05

Abstract

Analyses of the causes and the characteristics of poverty at micro levels provide more efficient strategies for the attainment of main Sustainable Development Goals. This study aimed to analyze the extent to which the characteristics of individuals, households, and communities influence the probability of household poverty status. The 2019 Social Welfare Integrated Data and Village Potential Data of Kediri City were analyzed using an ordered logit regression model and then interpreted based on marginal effect calculation. The study found that household heads’ squared-age, household members’ education, household members’ occupation, household head gender (female), ownership of assets, access to the internet, access to proper sanitation, and access to financial institutions reduced the probability of households being categorized as very poor and poor. This finding indicated that household productivity influenced by the household head’s characteristics in managing productive assets, supported by access to infrastructure, could increase the household's welfare. However, the household head’s age and marital status, dependency ratio, and access to health facilities increased household’s probability of being very poor and poor. Policies regarding poverty must be adjusted to the poverty characteristics and status. Improving access, equalizing education, and improving job opportunity and infrastructure management that ensure accessibility and enhancement in service quality need to be made to increase the status of households with the lowest 40% welfare in Kediri City. Policies regarding poverty should be focused more on social programs for very poor and poor households. Meanwhile, those near-poor and vulnerable-to-poor need more empowering programs.

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