Journal of Indonesian Economy and Business
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
ZAKAT POTENTIAL AS A MEANS TO OVERCOME POVERTY (A STUDY IN LAMPUNG)
Keumala Hayati;
Indra Caniago
Journal of Indonesian Economy and Business (JIEB) Vol 26, No 2 (2011): May
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/jieb.6270
Zakat is a compulsory service run by the Muslims who are able to implement it. Zakat is a means of income redistribution and also can support development of human resources as well as enhance economic growth in Indonesia, particularly in the Lampung Province. The purposes of this study were to explore the potential of zakat and to analyze the role of zakat in empowering poor communities in Lampung Province. This research result showed that zakat potential in Lampung Province was quite large; Rp644.18 billions with the 2% opinion and Rp1.38 billions with the 4.3% opinion. Meanwhile the Regional Government of Lampung Province in 2007 and 2008, for example, budgeting for social services reached Rp29.15 billions and Rp21.01 billions respectively, including other poverty reduction programs. Therefore, zakat potential should attract the government's attention as one solution to reduce poverty in Indonesia. Zakat is not only the provision of voluntary charity, but it is an obligation that must be paid by Muslims who received the zakat obligation. The results of the analysis showed zakat's potential in empowering poorcommunities in each district/city in the province of Lampung. Based on the standards meet the needs of the poor with an income of one dollar per day, from ten districts in Lampungprovince, only two districts were capable of removing the poor families from the poverty line, those are Bandar Lampung and Metro. While the potential zakat of eight otherdistricts had not been able to remove poor families from the poverty line due to the small acquisition of GDRP. This research showed that empowerment of the poor could be done based on the potentials of zakat in each district, the greater the GDRP, the greater the zakat potential that could be obtained. Even if the zakat potential was excessive than the poverty level in the district, it could be used as cross-subsidies with other districts in greater need.Keywords: Zakat Potential, poverty reduction
THE NEED FOR A NEW DEFINITION OF SUSTAINABILITY
Shaharir b.M.Z.;
Alinor M.b.A.K.
Journal of Indonesian Economy and Business (JIEB) Vol 28, No 2 (2013): May
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/jieb.29761
The present definition and scope of sustainability are reviewed by highlighting its various weaknesses including those that have been mentioned by Western scholars in development economics, ecological economics, environmental economics, and envirometrics. The emergence of a new field in the 1990’s, misleadingly named as eco-nomics, was to replace general economics. The presence of many forms of economics with new paradigms are purposely designed to improve development economics and at the same time to discuss and cope with the problems of sustainability. Our study on the nature and scope of sustainability was based on the history of the Malayonesian1 civilization and Islam, and practices of the present globalism. It has shown that not only is there a need to include an exhaustive environmental aspect (more than just the homo oeconomicus, flora and fauna) and a wider quantitative aspect (not just only statistics as well as other elements of mathematical science) but also to consider much more basic and important in the definition of sustainability. In this regard, we criticize the present mathematics used to measure sustainability. Other important aspects are the dimensions of knowledge and religion (with the emphasis on the importance of happiness) which we reclassify as two important components of culture which form our main focus of this paper. Examples of these new and classical elements of sustainability are partly based on our study inspired by relevant Malay inscriptions and manuscripts of direct and indirect effort of those in power and scholars of sustainability during the pre-Islamic and Islamic era of the Malayonesian civilization. In other words, our new definition of sustainability is proposed in order to improve the present definition and therefore involves the issue of interaction between beings, cultures and religions, together with a comprehensive value-laden mathematical science.
DECENTRALIZATION AND ITS IMPACT ON PRIMARY EDUCATION OUTCOMES
Deniey Adi Purwanto
Journal of Indonesian Economy and Business (JIEB) Vol 25, No 1 (2010): January
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/jieb.6302
Development outcomes nowadays not only measured by the successful of economic growth but more comprehensively by the achievement of human development. Obviouslyeducation has been place a one substantial factor not only as a basic human right but also in international development. Meanwhile after more than 8 years of decentralization inIndonesia, many concerns arise regarding the decentralization impacts. One of the considerable questions is on how far the fiscal decentralization has enhanced education development achievement. Therefore, a set of fiscal decentralization variables used in this paper to analyze their roles on primary education outcomes. Enrollment Rate used as dependent variable to represent the primary education outcomes. Regional characteristics were also utilized to improve the robustness of the result.Using panel data set of 434 sub provincial regions (districts and cities) in Indonesia, the estimation result show that fiscal decentralization instrument played a significant roleon primary education outcomes. Furthermore, DAK seems to have a greater impact on primary education outcomes than DAU. Additionally the estimation result also shows thatthere is still a significant disparity among sub provincial region in primary education achievement. The results suggest that fiscal decentralization instrument rearrangement substantially needed next to the education development equalization in all sub provincial region. This way, decentralization will foster more favorable outcomes in education development outcomes hopefully.Keywords: decentralization, primary education, panel data.
THE IMPACT ON FARM PROFITS OF A COMPANY’S PARTNERSHIP WITH A POTATO FARM
Hirwan Hamidi
Journal of Indonesian Economy and Business (JIEB) Vol 29, No 2 (2014): May
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/jieb.6204
This research aims to explain the impact of the partnership on potato farms’ profits in Sembalun District, West Nusa Tenggara Province. To achieve this goal, we looked at 142 farmers, comprising of 111 partnered farmers and 31 non-partnered farmers. The conclusions from our profit function analysis were: (i) the partnership had a positive impact on potato farmers’ profits in Sembalun District, West Nusa Tenggara Province; (ii) productivity, input costs, and labor costs had a significant influence on profits as an impact of the partneship. In this context, it is recomended that the local government encourage and facilitate potato farmers who have not yet established a partnership to enter such an arrangement with the company, so that their productivity and incomes increase. In addition, the local government is expected to build storage facilities for potato seeds. Future research should search for potato seeds that can replace the imported ones.
PROSES PEMBENTUKAN SIKAP SECARA BERJENJANG: STUDI EMPIRIS DI BIDANG PERLUASAN MEREK
Budhi Haryanto
Journal of Indonesian Economy and Business (JIEB) Vol 23, No 2 (2008): April
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/jieb.6346
This study examines goodness-of-fit model to explain brand extension phenomenon. Specifically, explaining the influence of brand similarity, belief toward core brand, and motivation to elaborate information on attitude toward brand extension. Laboratory experiment was used to ascertain controlled variables. Participants consist of 598 undergraduate students in business. Hierarchical regression analysis was used to elaborate the linkage among these observed variables. The study shows that complexity of brand extension was linearly influenced by brand similarity, belief toward core brand, and motivation to elaborate information. The finding confirms that the decision toward brand extension was significantly tested. Implications for further research are also discussed.
MARKET RETURN, VOLATILITY AND TRADING VOLUME DYNAMICS AFTER ECONOMIC CRISIS
Bramantyo Djohanputro
Journal of Indonesian Economy and Business (JIEB) Vol 26, No 3 (2011): September
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/jieb.6261
This paper attempts to explore the relationships of return – trading volume and volatility – trading volume. Trading volume may represent a proxy of information, liquidity, andmomentum. The up and down of trading volume, therefore, contain certain information that can be extracted by traders to make investment decision. Regressions of market returnon its lags, volume, and conditional variance and regressions of volatility on its lags, volume, and conditional variance are employed. Traders may respond positive informationdifferently from negative information. To accommodate such behaviour, threshold autoregressive conditional heteroskedasticity or TARCH is employed. Using market data of Indonesia Stock Exchange between economic crisis and before sub-prime mortgage crisis (from year 2000 to 2007) indicate the existence of return – volume relationships as well as volatility – return relationships albeit not very strong. There is also an indication that traders respond positive information differently from negative information concerningreturn movements but there is no indication concerning volatility movements.Keywords: return, volatility, volume, TARCH
IN DEFENSE OF A LIBERAL EDUCATION
Wisnu Setiadi Nugroho
Journal of Indonesian Economy and Business (JIEB) Vol 31, No 2 (2016): May
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/jieb.23562
A book review dealing with the liberal arts' importance and the critiques made on the discipline taught in academic curriculum. The followings are the data about the book:Keyword:Education, Liberal Arts, American Education SystemPublisher:W.W. Norton & Company. Inc. 2015. New YorkLength:200 pagesPrice:$23.95 (hardcover)Reading rating:8 (1 = very difficult; 10 = very easy)Overall rating:3 (1 = average; 4 = outstanding)
GLOBAL DETERMINANTS OF ENTRY MODE CHOICE
Joy Elly Tulung
Journal of Indonesian Economy and Business (JIEB) Vol 25, No 2 (2010): May
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/jieb.6293
Since several decades, a lot of academic attention has been given to entry mode decisions of firms, and which factors, in which contexts, are important determinants to take into consideration. Especially interesting for researchers is what influences the choice for a certain entry mode. A general limitation of this research stream seems to be that theempirical testing is limited to firms of a particular part of the world. This paper has developed six propositions. These propositions all concern a certain variable whichinfluences the entry mode choice. The variables have been justified in the transaction cost theory, the resource based. Following the theories, the relationship between assetspecificity, R&D intensity, firm size and international experience is said to be positive with the entry mode choice, and cultural distance and country risk are negatively related. Most propositions have been confirmed. view and institutional theory. These variables are asset specificity, R&D intensity, firm size, cultural distance, country risk and internationalexperience.Keywords: Entry mode theory, transaction cost theory, resource based view, institutional theory
TOWARD OPTIMUM SYNERGY OF MONETARY POLICY IN DUAL FINANCIAL/BANKING SYSTEM
Ascarya Ascarya
Journal of Indonesian Economy and Business (JIEB) Vol 24, No 1 (2009): January
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/jieb.6331
In a country adopting dual financial/banking system, where a conventional financial system coexists with an Islamic financial system, monetary authority has the responsibility to maintain financial/monetary stability and synergy of both systems. This study analyses and compares one of the main pillars of conventional monetary system and Islamic monetary system (i.e., interest system vs. profit-and-loss sharing/PLS system) and try to come up with the possible conduct of optimum monetary policy under dual financial/banking system. The results show that PLS system is superior to interest system in fairness, justice, efficiency, and stability. Therefore, the optimum synergy in the dual financial/banking system can be achieved when monetary policy in conventional systembenchmarks its policy rate to the PLS market return in Islamic financial market of Islamic system, which will ensure optimum market efficiency that maximize distributive social welfare and justice. Monetary policy in managing money supply is only a response to thedynamic activity in the real sector. While, active monetary policy can be conducted, not by altering M, but by altering V, i.e. to increase the flow of money in the economy by issuing central bank SUKUK with PLS market return to finance government projects, commercially as well as socially, in the real sector.Keywords: Islamic Monetary System, Islamic Financial System, Dual Banking Financial System
SPATIAL SMALL AREA ESTIMATION FOR DETERMINATION OF UNDERDEVELOPED VILLAGES IN THE PROVINCE OF YOGYAKARTA (DIY) IN 2011
Lilis Nurul Husna;
Sarpono Sarpono
Journal of Indonesian Economy and Business (JIEB) Vol 28, No 1 (2013): January
Publisher : Faculty of Economics and Business, Universitas Gadjah Mada
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DOI: 10.22146/jieb.6229
Indonesia's poverty alleviation programs are implemented by two approaches target, those are the pockets (areas) of poverty and the poor households. Related with poverty alleviation programs targeting poor areas, in the Medium Term Development Plan (RPJM) 2010-2014, the government through the Development Backward Areas Ministry (KPDT) has determined the backward or underdeveloped regions at the level of district/city. There is no district/city in the province of Yogyakarta (DIY) are classified as underdeveloped region, but in 2011 the poverty rate in DIY is the highest compared with other provinces in Java and Bali. Therefore, the classifications of underdeveloped areas are not optimal if applicable only within the district, but it needs to be seen in the smaller scope, such as village. The main purpose of this study is to determine the underdeveloped villages in DIY in 2011. The average per capita household expenditure is a key indicator in measuring poverty. Susenas data can only be used to estimate the average per capita household expenditure to the level of district. Therefore, to obtain the estimated value in village level, this study used Small Area Estimation approach by combining census data (Podes 2011) and survey data (Susenas 2011). This study used Geographically Weighted Regression (GWR) with Adaptive Gaussian Kernel Bandwidth weighting function. GWR is a linear regression model that produces the local parameters in all locations. GWR parameters estimated are performed by Weighted Least Squares (WLS) method which involving spatial aspects. The results found that there were 13 underdeveloped villages in DIY. Furthermore, the Local Indicator of Spatial Association (LISA) is used to look at the tendency of cluster in underdeveloped villages. Then, maps are used to compare characteristic of underdeveloped villages among others.