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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
Current Account Sustainability of South Africa with Regime Shifts Senela Stungwa; Teboho Mosikari
Journal of Indonesian Applied Economics Vol. 11 No. 2 (2023): August 2023
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.2023.011.02.5

Abstract

Purpose This study investigates the sustainability of current account with possible regime shifts in South Africa. Design/methodology/approach The study makes use of an annual data spanning from 1980 to 2021, the data is collected from International monetary fund. To ensure the order of integration of variables, the study used Fourier LM unit root test and Minimum LM unit root test. The study uses maki cointegration test with multiple structural breaks to examine the long run relationship between the variables in the presence of structural breaks. Findings Maki cointegration test confirmed a long run relationship between exports and imports of goods and services. The results indicate that the current account sustainability of South Africa is weakly. Research limitations/implications This study did not consider the effect of nonlinearities in the modelling processes. Another drawback of this study is that it did not use frequency analysis such as wavelet /Fourier transform since the current account can be affected by volatilities in the domestic and global markets. Therefore, for future studies it will be better if they overcome the limitations of this study. Originality/value This study focuses specifically on the issue of current account sustainability, taking into consideration the possible consequences of structural changes brought about by South Africa's prior economic crises. In addition, this study recommends the devaluation of currency for South Africa to ensure that the exports always exceed imports or the improvement in the current account deficit.
Rethinking of Local Autonomy and Fiscal Decentralization Policy: Can It Improve The Quality of Human Capital? A Case in Eastern Region of Indonesia Fahmi Prayoga; Candra Fajri Ananda
Journal of Indonesian Applied Economics Vol. 11 No. 2 (2023): August 2023
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.2023.011.02.2

Abstract

Purpose This study aims to see the effect of regional autonomy and fiscal decentralization in the fields of education, health, and the economy in the development of human resources in Eastern Indonesia. Design/methodology/approach This study uses a quantitative approach with panel data regression utilizing data from 16 provinces in Eastern Indonesia from 2010-2019. Findings According to the results, the development of human resource quality is influenced by government spending on education, health, and GRDP per capita. However, the study reveals that capital expenditure does not play a significant role in the enhancement of human resource quality. Research limitations/implications One shortcoming of this research is its lack of detailed information regarding how capital expenditures, education expenditures, and health expenditures are distributed across various local governments. Originality/value This study shows the impact of fiscal decentralization and regional autonomy by comparing the results gap that occurs between the western and eastern regions of Indonesia on human resource development
The Financial Behavior of Young Generation in Indonesia Kurniasari, Irma; Sumiati; Ratnawati, Kusuma
Journal of Indonesian Applied Economics Vol. 11 No. 2 (2023): August 2023
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.2023.011.02.3

Abstract

Purpose This study explored self-efficacy's link to student financial behavior, assessing its influence and dimensions. The aim was to improve financial literacy and behavior among students through interventions. The study deepened understanding of self-efficacy's role in university students' financial behavior. Design/methodology/approach In quantitative research, researchers employ SEM, specifically PLS, to examine self-efficacy and financial behavior in university students. The study has 100 student respondents and uses SEM-PLS for complex analysis, aiming to offer empirical evidence for hypotheses. Findings could significantly enrich comprehension of self-efficacy's influence on financial behavior in college students. Finding Results show a positive link between variables. Higher self-efficacy relates to improved financial behavior. Confident individuals budget, save, and make wise financial choices. This underscores the need to enhance self-efficacy in interventions for better student financial behavior. Overall, findings emphasize self-efficacy's pivotal role in shaping financial behavior. Research limitations/implications This study offers empirical evidence of a positive link between self-efficacy and financial behavior, broadening understanding. It highlights psychological factors in financial behavior and extends self-efficacy's role in financial management literature. Financial education programs should enhance self-efficacy for better financial management, benefiting students' overall well-being. Originality/value This research merges self-efficacy and financial behavior concepts, showcasing the link between psychological factors and financial actions. Combining these constructs provides a holistic view of how self-beliefs impact financial choices and behaviors.
Assessing Information Security Risks in Clinical Laboratory in Accordance With ISO/IEC 27001 Standard Eddy Susanto; Nilo Legowo; Benny Ady Prabowo
Journal of Indonesian Applied Economics Vol. 11 No. 2 (2023): August 2023
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.2023.011.02.8

Abstract

Purpose This study aims to assess the information security risks that still arise in a clinical laboratory accredited to ISO 15189 and certified to ISO 9001, as a preparation for digital-based services. Design/methodology/approach Using the ISO/IEC 27001 approach which is embedded in the qualitative method in this study, risk assessment is carried out by identification, analysis and evaluation through interviews with process owners at clinical laboratories in Jakarta.   Findings As a result, it was found that the Busdev&IT Department had the most information security risks (35 risks out of 384 total risks), which required further treatment based on the established risk appetite. Therefore, vigilance on the use of information systems in the laboratory needs to be increased in terms of information security. Research limitations/implications The research object was in the preparation stage for ISO 27001 certification, but the risk assessment is not only to comply with requirements, that also to have effective information security control among their process to ensure the sensitive information is secured. Originality/value This study answers the need for establishment of information security risk control in clinical laboratory.
Income Distribution of Informal Sector Labor in Indonesia 2022 Sari, Bellia Mega; Sugiarto
Journal of Indonesian Applied Economics Vol. 12 No. 1 (2024): February 2024
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.2024.012.01.1

Abstract

Purpose This research aims to look at the description of the characteristics and factors that influence the categories of income levels under class (vulnerable and poor) and aspiring middle class in informal sector labor in Indonesia 2022. Design/methodology/approach The dataset from raw data of the National Labor Survey (SAKERNAS) in February 2022 collected by Badan Pusat Statistik (BPS). This research used the ordinal logistic regression, model of partial proportional odds (PPOM). The dependent variable used is the income level category based on the classification determined by World Bank. Findings This research finds that 58 percent of the population are informal labor. The results of the analysis show that the level of education, job training, work experience, type of work, age, gender, marital status, working hours, and residential area classification have a significant effect on income level categories. Research limitations/implications This research only includes sample of informal sector labor who have income and based on the main job status classification from BPS. Originality/value In this research, income of informal sector labor are categorized based on classification determined by World Bank. Then there has not been much research on the characteristics of informal sector labor and what influences the level of their income category.
The Determinants of Value-Added of Non-Oil and Gas Manufacturing Industries in Indonesia: Study case of 24 subsectors of non-oil and gas manufacturing industries from 2008 to 2019 Detylia; Santoso, Dwi Budi
Journal of Indonesian Applied Economics Vol. 12 No. 2 (2024): August 2024 (IN PRESS)
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.2024.012.02.3

Abstract

This research aims to obtain the determinants of industrial value added in Indonesia from 2008 to 2019 and give suggestions to the government about the determinants of industrial value added in Indonesia so they can have relevant information to stipulate a regulation to improve the industrial value added in Indonesia. The scope of this research is restricted to twenty-four (24) subsector of the medium and large non-oil and gas manufacturing industry in Indonesia from 2008 to 2019 and are analyzed with Panel Data Analysis using Random Effects Estimators followed by specification test to make sure the credibility of the regression model (Pesaran CD Test, Hausman Test, Breusch-Pagan test). This panel data was collected from Central Statistics Indonesia Board from 2008 to 2019. Based on the GLS regression results, we found that the variable cost, labor cost, capital-intensive industries, and the implementation of the Law Number 3 of 2014 concerning Industry significant and positive impact on the value-added of non-oil and gas manufacturing industry, while fixed costs do not significantly affect the value-added. These findings align with the income theory that the profit is obtained by subtracting the total revenue from the production cost (variable cost, labor cost), except for fixed cost. By finding that the fixed cost does not significantly impact the value-added in the non-oil and gas manufacturing industry, it is suggested to deepen the research by using firm-level data instead of aggregate data and includes other variables that have significance to the value added. The research gap of this research is the harness of variable cost, fixed cost, and labor cost, which represent costs in the production theory, dummy variables of capital-intensive industries as a measure of the impact of capital-intensive to value-added, and dummy variables before and after the implementation of the industry law to measure the impact of the government’s role. As implications, it is suggested that the producers could optimize their economies of scale since the increased variable cost and labor cost positively impact the value added. Other suggestions, it is recommended that the government simplify the bureaucracy of the business process, incentivize the technology start-ups, and embed the Industry 4.0 infrastructure in the 24 subsectors of industries.
Determinants of Financing Decisions for Micro Enterprises in Malang City in 2022-2023 Moderated by Islamic Financial Literacy Fina Rosyada; Handoko, Azriel Rakaha; Riyanto, Feri Dwi; Andriani, Sri
Journal of Indonesian Applied Economics Vol. 12 No. 1 (2024): February 2024
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.2024.012.01.3

Abstract

Purpose This study aims to analyze the Determinants of Financing Decisions in Micro Enterprises in Malang City Moderated by Sharia Financial Literacy Design/methodology/approach This research uses a mix method with purposive sampling techniques and the number of samples isas many as 60 respondents of micro business actors. The data of this study uses primary data obtained directly from the source using interview techniques, questionnaires, literature studies. Logistic regression is used to analyze the data. Findings This study revealed that variations in income and business age have a negative and significant effect on the variability of financing decisions. Meanwhile, guarantees have a positive and significant effect on the provision of financing decisions. Then, the variables of education, guarantees, and cultural characteristics do not affect the decision to provide financing. Vaiebel moderation itself is predicted to influence and strengthen the relationship between income variability and financing decisions. However, moderation variability has an influence and weakens the relationship between collateral variables and financing decisions. Research limitations/implications This research has limitations related to the amount of financing data conducted by Islamic banks Originality/value This study seeks to examine cultural characteristics with financing decisions which has rarely conducted before.
ARE THE REGIONAL FISCAL INDEPENDENCE, AND REGIONAL POVERTY RATE AS THE FACTOR OF POLITICAL BUDGET CYCLE IN ELECTION YEAR: EVIDENCE IN INDONESIA Gultom, Maria Maranatha
Journal of Indonesian Applied Economics Vol. 12 No. 2 (2024): August 2024 (IN PRESS)
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.2024.012.02.1

Abstract

Purpose This study aims to determine the factors of political budget practices carried out by incumbents ahead of regional elections as an incumbent strategy to demonstrate their competence to voters by politicizing the budget on social and investment spending. Design/methodology/approach In this study, the samples were used in 398 districts in Indonesia that held local elections in 2020, 2018, and 2017. Data analysis was performed by panel data regression analysis using Eviews 10. Findings The researcher found that from the two factors that indicate political budget practices such as the level of regional fiscal independence, and the level of regional poverty, the incumbent regional head has a different strategy for politicizing the government spending. The more higher fiscal independence rate of the region, the incumbents regional head tends to increase spending on investment in machines and equipment. Meanwhile, the more higher the poverty rate of the region, the incumbent regional head will tend to increase social spending. Research limitations/implications This study has limitations; there are still districts/cities whose data is incomplete but included in this sample. This study aims to provide theoretical contributions and empirical evidence for academics, researchers, and readers about the practice of the political budget cycle carried out by regional heads before the election with the aim of politics to be able to win back the next election so that this study was formed with samples of all districts in Indonesia. Originality/value This study uses the regional fiscal independence, and regional poverty rate as independent variables, and all components of capital expenditure as dependent variables that have not been used by previous studies, especially in Indonesia.
The Role of Fiscal Policy in Reducing Gender Income Inequality Galvani, Selly; Nasrudin, Rusan
Journal of Indonesian Applied Economics Vol. 12 No. 1 (2024): February 2024
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.2024.012.01.7

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Purpose This research aims to determine the role of fiscal policy in reducing gender income inequality in Indonesia. Design/methodology/approach This research used the microsimulation INDOMOD model, which is a static tax-benefit microsimulation model that has been underpinned by BPS Susenas 2019 data. Findings The estimation results show that the most appropriate fiscal policy to reduce gender income inequality are through PKH and BPNT. Meanwhile, income taxes for upper income levels have almost no effect, and for lower income levels, although it can reduce gender income inequality, it will increase income inequality. Research limitations/implications This research has several limitations which can be explored for further research. First, due to the limitations of the data, the gender term used refers to the gender of the head of household, so it does not describe the actual gender condition of the individual. Second, the income tax is calculated based on the income data available in the income block in the Susenas, so that the value does not reflect the actual condition of the income and income tax paid by taxpayers. Third, the microsimulation method is static, so it cannot be used to analyze the dynamic changes that occur at the individual level. Originality/value There are many studies on the relationship between fiscal policy and gender equality, but similar studies are still very limited in Indonesia. Moreover, the INDOMOD microsimulation model is rarely used in Indonesia, even though this method has been widely used in many countries.
Comparison of Sharia Banking Performance in Malaysia and Indonesia According to Maqashid Sharia Perspectives Munir, Misbakhul; Ekawaty, Marlina; Manzilati, Asfi
Journal of Indonesian Applied Economics Vol. 12 No. 1 (2024): February 2024
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.2024.012.01.5

Abstract

Purpose The research objective was to analyze the difference of sharia banking performance in Malaysia and Indonesia through measurement tool of maqashid index of MPEM and PMMS Design/methodology/approach This research used comparative study quantitative method and secondary data with observation period of 2014-2021. Findings Based on the MPEM index of maqashid sharia, this research result referred that Indonesia was superior in the dimension of preserving religion, maintaining wealth, and continuing offspring. Based on PMMS maqashid sharia index, Malaysia was superior to Indonesia in all indicators consisting of educating individuals and upholding justice and welfare. Research limitations/implications The research objective was to analyze the difference of sharia banking performance in Malaysia and Indonesia through measurement tool of maqashid index of MPEM and PMMS period of 2014-2021 Originality/value The countries in Southeast Asia region have applied this Dual Banking System including Indonesia and Malaysia. The use of different system applied in banking field should affect the difference of performance measurement. MPEM and PMMS were taken as alternatives of maqashid sharia-based banking performance measurement which was more proper if it was functioned to measure the performance of sharia banking.