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INDONESIA
Journal of Indonesian Economy and Business
ISSN : 20858272     EISSN : 23385847     DOI : -
Core Subject : Economy,
Journal of Indonesian Economy and Business (JIEB) is open access, peer-reviewed journal whose objectives is to publish original research papers related to the Indonesian economy and business issues. This journal is also dedicated to disseminating the published articles freely for international academicians, researchers, practitioners, regulators, and public societies. The journal welcomes author from any institutional backgrounds and accepts rigorous empirical or theoretical research paper with any methods or approach that is relevant to the Indonesian economy and business content, as long as the research fits one of three salient disciplines: economics, business, or accounting.
Articles 989 Documents
TASK-TECHNOLOGY FIT AND PERSON-JOB FIT: A BEAUTY CONTEST TO IMPROVE THE SUCCESS OF INFORMATION SYSTEMS Woro Dwi Suryani; Sumiyana Sumiyana
Journal of Indonesian Economy and Business (JIEB) Vol 29, No 2 (2014): May
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (224.533 KB) | DOI: 10.22146/jieb.6203

Abstract

This study raises the issue that information system success could be enhanced by complementing other factors. This study investigates the success of information systems by inducing2 the task-technology fit (TTF) and person-job fit (PJF) into the DeLone and McLean model. This study aims to examine, among the two induced factors, which one is able to explain and improve the success of the information systems implementation. The results of this study indicate that the TTF explains the models’ goodness of fit better than that of the PJF when induced into the modified DeLone and McLean model. This study implies this in terms of both theory and practice. Theoretically, this research presents an alternative research model that can be used to investigate the success of information systems by considering the aspect of the users’ cognitive suitability (the cognitive fit theory). Furthermore, practically, this study suggests the importance of focusing on users’ skills and competencies and, subsequently, management should do so. Additionally, the TTF recommends a simple proposition that it could be attached immediately into the individuals’ skills and competencies. However, the PJF needs to be deeply embedded in the job’s qualifications and recruitment policies.
PERILAKU AGREGAT MONETER DALAM SISTEM KEUANGAN/PERBANKAN GANDA DI INDONESIA Noer Azam Achsani
Journal of Indonesian Economy and Business (JIEB) Vol 23, No 2 (2008): April
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (1125.681 KB) | DOI: 10.22146/jieb.6345

Abstract

The main difference between contemporary Islamic monetary system and conventional monetary system is the replacement of interest system with profitand-loss sharing (PLS) system, which both have different behavior in influencing monetary stability. This study aims to analyze demand for money, conventionally and Islamically, in Indonesia and to determine the relationship between money supply in the two system and price level as the goal of monetary policy. Methods used are Vector Auto Regression (VAR) and Vector Error Correction Model (VECM). The results show that PLS return negatively correlated with Islamic demand for money. In Islamic demand for money, the value of correction error is significant, so that there is an adjustment towards its long-term equilibrium. The Islamic demand for money stabilizes quicker to response the shock from other variables compare to that of conventional demand for money. Moreover, there is no cointegration between money supply, conventionally and Islamically, with price level, so that inflation targeting framework of monetary policy implemented by Bank Indonesia need to be reviewed.Kata Kunci : permintaan uang konvensional, permintaan uang Islam, sistem keuangan/perbankan ganda, VAR/VECM
THE IDENTIFICATION OF STRUCTURAL BREAK AT TIME SERIES DATA ON INDONESIAN ECONOMY 1990Q1-2008Q4: THE APPLICATION OF ZIVOT AND ANDREWS’ EXPERIMENT Rahman Dano Mustafa
Journal of Indonesian Economy and Business (JIEB) Vol 26, No 3 (2011): September
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (150.543 KB) | DOI: 10.22146/jieb.6260

Abstract

Before the 1997/1998 economic crisis that enhanced the fluctuation of some Indonesian macroeconomic indicators, Indonesian economic indicators seemed to run quite well as to make it attractive as business destination. The economic turbulence has brought about the enhancement of its macroeconomic indicators fluctuation: the depreciation of Indonesian Rupiah’s exchange rate, the sharp contraction of GDP, the ever-increasing inflation pressure, and the interest rate hike.The objective of this paper is to identify the right timing of the major structural break on Indonesian economy through the application of Zivot and Andrew’s procedure (ZA)(Zivot and Andrews, 1992), with time series data in the period of Q1 1990-Q4 2008. The ZA model empirical test outcome shows that endogenously the significance of structural break for most macroeconomic variables necessitates at least one hypothesis of null unit root that can be rejected for most of the investigated variables. The potential structural break in series (ADF-test) also allows some originally non-stationary-unit contained variables to turn into a stationary ones. These results are statistically significant as the endogenously appropriate break (ZA-test) coexisted with the Indonesian financial-crisis shocks in 1997/1998.Keywords: structural break, unit root test, macroeconomic time series and Indonesian economy
CAPITAL INTENSITY, OPENNESS, AND THE ECONOMIC GROWTH OF THE ASEAN 5 Ni Putu Wiwin Setyari; Surya Dewi Rustariyuni; Luh Putu Aswitari
Journal of Indonesian Economy and Business (JIEB) Vol 31, No 3 (2016): September
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (209.134 KB) | DOI: 10.22146/jieb.23268

Abstract

One of the core elements of the neoclassical growth theory is that poor countries have low capital-labor ratios but have higher marginal products of capital than the rich countries. This means the low-income countries experience faster growth rates and become a reason for allowing capital, goods, and technology can move across countries. Assuming that the labor intensive countries have higher returns on capital, then investment will flows into those countries and encourage higher economic growth. However, in fact capital flows seems to go in the opposite direction. A country with abundant capital can expand its capital-intensive sectors and export their goods along with trade liberalization. Consequently, the returns to capital in its capital-intensive sectors rise and a greater demand for investment induces higher capital inflows from abroad. Those predictions push developing countries to change their labor intensive industrial structures and become more capital intensive, to encourage their economic growth. This paper examines how capital intensity and openness affect economic growth using data from the ASEAN 5 countries data. The issue of endogeneity and unobserved heterogeneity, as major problems in a data panel, are addressed by the fixed effect method and the Feasible General Least Square (FGLS). Capital flows appears to be the most important source of economic growth, whilst trade is found to have a limited role. The interaction between capital intensity and the openness indicator do not indicate significant effects. Generally, there is no evidence that the more outward-oriented countries with high levels of capital intensity experiences higher economic growth.
INDUSTRIALIZATION AND DE-INDUSTRIALIZATION IN INDONESIA 1983-2008: A KALDORIAN APPROACH D.S. Priyarsono; Titi Kanti Lestari; Diah Ananta Dewi
Journal of Indonesian Economy and Business (JIEB) Vol 25, No 2 (2010): May
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (402.001 KB) | DOI: 10.22146/jieb.6292

Abstract

Economists have for a long time discussed the causes of economic growth and the mechanisms behind it. Kaldor viewed advanced economies as having a dual nature verysimilar to that of developing countries, with an agricultural sector with low productivity and surplus labour, and a capital intensive industrial sector characterized by rapid technical change and increasing returns. The transfer of labour resources from the agricultural sector to the industrial sector depends on the growth of the latter’s derived demand for labour. With this background this study attempts to show the periods when the Indonesian economy indicated the processes of industrialization and deindustrialization. Italso attempts to identify whether the economy experienced positive deindustrialization (i.e., showed signs of economic maturity where service sector substituted the role of industrial sector as the engine of growth) or negative deindustrialization (i.e., showed signs of economic stagnancy where industrial sector could not grow rapidly enough to absorb surplus labour from agricultural sector). Lastly, this study attemps to analyze several factors that might be responsible for the process of the deindustrialization.Keywords: industrialization, deindustrialization, economic growth
COMPETITIVENESS TOWARDS ASEAN ECONOMIC COMMUNITY Mari Elka Pangestu
Journal of Indonesian Economy and Business (JIEB) Vol 24, No 1 (2009): January
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (176.747 KB) | DOI: 10.22146/jieb.6330

Abstract

ASEAN Economic Community will be the driving force of an economic integration within ASEAN countries, and between ASEAN countries and the rest of the world. Many believe the economic integration will realize ASEAN framework as a single market and production base, to increase competitive economic region, to support more equitable economic development, and as a stepping stone toward full integration into globaleconomy. Commitments of the implementation of AEC Blueprint by ASEAN member countries will be a crucial role to achieve the objective of the ASEAN Vision, Mission, and Targets.Keywords: AEC, ASEAN, Economic Community
THE IMPACT OF EDUCATION ON ECONOMIC GROWTH IN INDONESIA Faizal Reza; Tri Widodo
Journal of Indonesian Economy and Business (JIEB) Vol 28, No 1 (2013): January
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (244.925 KB) | DOI: 10.22146/jieb.6228

Abstract

Does education promote economic growth? The aim of this study is to find out the impact of education on economic growth in Indonesia. This research employed panel data technique to investigate the relationship between education and economic growth in Indonesia during the period 1996-2009. The empirical results show that education per worker has a positive and significant impact on economic growth. The estimates of panel model suggest that a 1% increase in average education per worker will lead to about 1.56% increase in output. By using instrument analysis, researchers found that Jawa Timur is a province with highest economic growth in Indonesia. In contrast, Bengkulu experiences the lowest position with the lowest economic growth. The results show us that there are still substantial disparities within the provinces in Indonesia.  
THE TRANSFER PROBLEM IN INDONESIA AND POLICY RESPONSES Amri Anjas Asmara
Journal of Indonesian Economy and Business (JIEB) Vol 27, No 1 (2012): January
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (299.57 KB) | DOI: 10.22146/jieb.6251

Abstract

This paper examines the implications of, and policy responses to the transfer problem phenomenon, which is the interaction between surging capital inflows and real exchange rate. In particular, this paper identifies three episodes of large net private capital inflow to Indonesia during 1995 - 2010. Episodes of large capital inflows are often associated with real exchange rate appreciations. In turn, these conditions could undermine economic competitiveness in terms of price.This paper adopts theoretical framework that leads to test the long-run co-movements of real exchange rates and capital inflows. This long run relationship is modeled on thecointegration framework. The Full-Modified Ordinary Least Square (FMOLS) is used to provide optimal estimates of cointegration regressions, dealing with endogeneity andserial correlation effect in the regressors that result from the existence of the cointegrating relationships.Controlling for relative output levels, degree of openness, and the terms of trade, time series empirical evidence presented evidence supporting the existence of a significanttransfer problem in Indonesia. Moreover, using disaggregated measure of inflows, this paper finds that portfolio investment has the most significant impact on REER appreciationin Indonesia.A comprehensive assessment of various policy responses to the transfer problem leads to two major conclusions. First, the problematic relationship between REER apreciationand capital inflows would be more moderate in which the authorities exercised countercyclical fiscal. It means that greater fiscal restraint would also help ease pressures for real appreciation of the exchange rate. Second, aggressive sterilization could be the first line of defense against REER apreciation during surge of capital inflows.Keywords: Transfer Problem, Real Effective Exchange Rate, Capital Inflows, Cointegration, Full-Modified Ordinary Least Squared (FMOLS)
ISLAM AND THE MORAL ECONOMY: THE CHALLENGE OF CAPITALISM Sumiyana .
Journal of Indonesian Economy and Business (JIEB) Vol 29, No 3 (2014): September
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (177.514 KB) | DOI: 10.22146/jieb.23586

Abstract

This is a book review on Islam and the moral economy that highlights the challenge of capitalism.
APPLICATION OF RULE OF LAW BY JURISDICTION SYSTEM ON ILLEGAL LOGGING CASE IN INDONESIA 2002-2008 Yudistira Hendra Permana
Journal of Indonesian Economy and Business (JIEB) Vol 25, No 3 (2010): September
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (561.002 KB) | DOI: 10.22146/jieb.6283

Abstract

The aim of this research is to analyze behavior of Supreme Court’s judge on detention period sentence for illegal logging defendants in Indonesia from year 2002 through 2008.The first analysis is censored normal regression method using detention period indictment by prosecutor, detention period sentence by district court, defendant’s gender, appealeffort, defendant’s age, and defendant’s job variables. Those variables are used to analyze how each variable affect on Supreme Court’s verdict on detention period sentence forillegal logging defendants in Indonesia. Second analysis is descriptive statistic involves three levels of jurisdiction’s considerations (prosecutor, district court, and SupremeCourt) on determining detention period sentence for illegal logging defendants in Indonesia and suitability those three levels of jurisdiction to law. Research’s result showsthat detention period indictment by prosecutor, detention period sentence by district court, and defendant’s age significantly affect on Supreme Court’s verdict on detention period sentence for illegal logging defendants in Indonesia. But, on the other hand there is unsuitable verdict made by those three levels of jurisdiction to law.Keywords: court’s verdict, illegal logging, censored normal regression

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