Jurnal Perspektif Pembiayaan dan Pembangunan Daerah
ISSN Online: 2355-8520 ISSN Print: 2338-4603 The Journal of Perspectives on Financing and Regional Development (Jurnal Perspektif Pembiayaan dan Pembangunan Daerah) is an open-access, peer-reviewed international forum that welcomes scientists engaged in research to publish high-quality, refereed papers. The Journal focuses on publishing theoretical and empirical papers across all fields of economics. We accept diverse papers employing various research methodologies, such as statistical analysis, case studies, and field research. We aim to provide a platform for articles exploring important research questions from multiple perspectives. The Journal is published six times a year. Since Volume 6, Issue 2 (September-October 2018), Jurnal Perspektif Pembiayaan dan Pembangunan Daerah has been nationally accredited with an S2 SINTA (Science and Technology Index) score, based on the Decree of the Director General of Development and Research Enhancement, Ministry of Research, Technology & Higher Education of the Republic of Indonesia, Number 10/E/KTP/2019 concerning the Ranking of Scientific Journals. Published by Master Program in Economics, Graduate Program of Universitas Jambi Editor Address: Jurnal Perspektif Pembiayaan dan Pembangunan Daerah. Program Magister Ilmu Ekonomi, Pascasarjana, Universitas Jambi, Kampus Telanaipura Jambi, Indonesia
Program Magister Ilmu Ekonomi Pascasarjana Universitas Jambi
Basic infrastructure and income inequality in Indonesia: a spatial econometrics approach
This study investigates the association between basic infrastructure and income inequality in Indonesia using a spatial panel econometric framework. Based on provincial panel data for 34 provinces from 2015 to 2024, the analysis first documents significant positive spatial dependence in the Gini ratio and then estimates a Spatial Autoregressive Random Effects (SAR-RE) model. The results show a positive, statistically significant spatial autoregressive coefficient (ρ = 0.1926), indicating that provincial inequality is linked to that of neighboring provinces. Better access to clean water and sanitation is associated with lower inequality, with sanitation showing the strongest equalizing effect. By contrast, GRDP continues to have a positive effect, suggesting that regional output expansion alone does not automatically yield inclusive distributional outcomes. This study contributes to the literature by applying spatial panel analysis to Indonesian provinces and by positioning basic infrastructure as an indirect human-capital channel in an archipelagic setting. Although the findings should be interpreted as associative rather than strictly causal, they highlight the importance of cross-provincial coordination in water and sanitation policy to reduce persistent regional inequality.
Copyright (c) 2026 Ardiansyah Abubakar, Arifin Arifin, Muhammad Fadillah https://creativecommons.org/licenses/by/4.0
Do carbon emissions increase borrowing costs? Evidence from Indonesian SOEs
Climate-related risks have become increasingly relevant in corporate financing decisions. Yet, empirical evidence on how carbon emissions affect borrowing costs in state-owned enterprises (SOEs), particularly in developing countries, remains limited. In this study, borrowing costs are proxied by the cost of debt. This study analyzes the effect of carbon dioxide (CO₂) emissions on the cost of debt of Indonesian SOEs listed on the Indonesia Stock Exchange during the 2015–2024 period. Using a quantitative approach, the study employs firm-level data from LSEG Refinitiv and estimates fixed-effects panel-data regressions with clustered standard errors at the firm level. Robustness tests are conducted through winsorization and lagged independent variables. The results show that CO₂ emissions have a positive and significant effect on the cost of debt, indicating that creditors consider environmental risk when setting borrowing costs, even for state-owned firms. This relationship remains consistent in the winsorized specification, although the lagged emission variable is not statistically significant. The findings support the risk-based pricing, signaling, and legitimacy perspectives by showing that carbon emissions function as a relevant financial risk signal in debt markets. This study contributes to the sustainable finance literature by providing evidence from Indonesian SOEs, a context that remains underexplored in prior studies. In practice, the results imply that SOEs need to strengthen carbon-emission management, environmental governance, and transparency in disclosure to maintain more efficient access to debt financing.
Copyright (c) 2026 Richa Angelia Selbi, Doddy Setiawan https://creativecommons.org/licenses/by/4.0
Intergenerational solidarity and subjective economic vulnerability among older adults in Indonesia
This study examines the influence of intergenerational relationships on the subjective economic vulnerability of older adults in Indonesia, with particular emphasis on reciprocal motives and bequest intentions within the framework of intergenerational solidarity. Using data from the fifth wave of the Indonesia Family Life Survey (IFLS-5) conducted in 2014, comprising 6,246 respondents aged 60 and above, the study estimates two forms of subjective vulnerability—self-assessed economic vulnerability and perceived economic vulnerability—using a bivariate probit regression model to address potential endogeneity between co-residence with adult children, health status, bequest motives, and vulnerability among older adults. The findings indicate that bequest motives significantly increase the likelihood of co-residing with adult children, reflecting reciprocal exchange mechanisms within multigenerational households. Physical and psychological health emerge as the strongest determinants of subjective vulnerability among older adults. This study makes an important empirical contribution by introducing an integrated model that links bequest motives, intergenerational solidarity, and subjective vulnerability within the context of a developing country. Overall, the results underscore the need for stronger synergy between family-based support and formal social protection systems to mitigate vulnerability risks among older adults in an era of population ageing.
Copyright (c) 2026 Novya Zulva Riani, Idris Idris, Yeniwati Yeniwati https://creativecommons.org/licenses/by/4.0
Mapping food system vulnerabilities and multilevel governance across spatial typologies in Jambi Province
Uneven production capacity, spatial disparities, distribution constraints, and governance fragmentation shape food security conditions in Jambi Province. Although aggregate indicators show improvement between 2022 and 2024, persistent territorial inequalities and structural vulnerabilities remain. This study maps food system vulnerabilities and multilevel governance dynamics across spatial typologies in Jambi Province. Using a mixed-methods design that integrates Likert-scale surveys of provincial and district/municipal officials with thematic qualitative analysis of academic perspectives, the study synthesizes institutional perceptions across the four FAO pillars—availability, access, utilization, and stability. The findings reveal scalar asymmetries in governance perceptions: provincial actors rely on aggregate indicators and formal coordination mechanisms, whereas district and municipal actors emphasize operational constraints and localized bottlenecks. Academic perspectives highlight longer-term structural pressures, including land-use conversion, climate exposure, and demographic shifts in farming communities. Through iterative thematic integration, the study constructs three spatial configurations of food system vulnerability: (1) urban and peri-urban areas dependent on external supply and sensitive to price volatility; (2) highland production centers characterized by strong output capacity but climate-related risks; and (3) rural–coastal regions constrained by infrastructural limitations and environmental exposure. The results demonstrate that food security in Jambi is territorially differentiated and mediated by multilevel governance dynamics. Mapping these configurations provides a structured basis for spatially differentiated and coordination-sensitive policy design.
Copyright (c) 2026 Junaidi Junaidi, Mustaqim Siga, Hardiani Hardiani https://creativecommons.org/licenses/by/4.0
The impact of ICT adoption and trade openness on youth unemployment in ASEAN: opportunity or challenge?
This study investigates the long-term impact of Information and Communication Technology (ICT) adoption and trade openness on youth unemployment in ASEAN countries over the period 2000–2023. Panel data are analyzed using the Fully Modified Ordinary Least Squares (FMOLS) estimation method. The empirical results indicate that trade openness reduces youth unemployment, particularly among male youth. However, its effect is relatively weaker and not consistently significant for female youth, suggesting the presence of gender disparities in labor absorption within tradable sectors. Furthermore, digital infrastructure plays a crucial role in mitigating youth unemployment. Both fixed broadband and mobile cellular subscriptions are found to significantly reduce youth unemployment rates, with broadband access exhibiting a stronger and more consistent effect across models. Overall, the findings suggest that ICT adoption and trade openness constitute important mechanisms for reducing youth unemployment in ASEAN countries.
Copyright (c) 2026 Tripitono Adi Prabowo, Alvin Sugeng Prasetyo, Diah Wahyuningsih https://creativecommons.org/licenses/by/4.0
Determinants of female labor force participation in the Bangka Belitung Islands Province
This study examines the key factors shaping women’s labor-market participation in the Bangka Belitung Islands Province, Indonesia, where gender disparities in employment persist. It aims to analyze how demographic and economic characteristics influence women’s decisions to engage in paid work. Using a quantitative approach and a binary logistic regression model, the study draws on data from 100 women aged 15 to 65 years. The analysis evaluates the effects of age, educational attainment, marital status, number of dependents, and household income. The findings indicate that education and household income are significant determinants of women’s labor force participation. Women with a junior high school education are significantly less likely to participate in the labor market than those with a tertiary education. Meanwhile, higher household income contributed by other family members reduces women’s likelihood of working. However, age, marital status, and the number of dependents do not have statistically significant effects. These results underscore the importance of human capital and household economic conditions in shaping women’s labor market behavior in resource-based regions. The study also provides policy-relevant insights for promoting more inclusive labor markets through investments in education, skills development, and gender-responsive employment strategies.
Copyright (c) 2026 Ayu Wulandari, Devi Valeriani, Ineu Sulistiana https://creativecommons.org/licenses/by/4.0
Adaptive fiscal strategies for strengthening local taxing power: Evidence from Jambi Province
The transformation of regional taxation is a strategic agenda aimed at strengthening fiscal capacity, reducing dependence on central government transfers, and supporting sustainable development within the framework of regional autonomy. This study aims to identify the regional tax instruments with the greatest potential, analyze the challenges and opportunities associated with implementing local taxing power, and formulate adaptive fiscal policy strategies in Jambi Province. The research employs a qualitative descriptive-analytical approach, drawing on primary data from in-depth interviews and focus group discussions (FGDs), as well as secondary data from regional budget (APBD) reports, local revenue (PAD) statistics, and regional tax realization for the period 2021–2024. Thematic analysis was conducted using NVivo software, complemented by quantitative data triangulation. The findings reveal that the largest tax potential in Jambi lies in the Street Lighting Tax, Specific Goods and Services Tax, Land and Building Acquisition Duty (BPHTB), and Rural and Urban Land and Building Tax (PBBP2), with varying dominance across districts and municipalities according to their respective economic characteristics. The main implementation challenges include low taxpayer compliance, weak administrative systems and institutional coordination, limited human resources, and disparities in infrastructure development across regions. Nonetheless, significant opportunities exist through the growth of the digital economy, the rise of online-based SMEs, the development of tourism and real estate sectors, and the diversification of resource-based taxation. This study recommends adaptive fiscal strategies built upon three key pillars: regulatory reform, institutional and technological capacity building, and cross-sector collaboration, accompanied by public outreach. Such strategies are expected to foster a more inclusive, transparent, and efficient regional taxation system while strengthening fiscal independence in the post-HKPD 2022 era.
Copyright (c) 2025 Junaidi Junaidi, Dwi Hastuti, Raihan Fajri Ramadhan, Fitri Widiastuti, Faradina Zevaya, Mustaqim Siga, Deki Irawan https://creativecommons.org/licenses/by/4.0
Digital technology and job quality: multidimensional insights from the labor market in East Java
Digital technology transformation has a significant impact on labor market dynamics, both in terms of job quantity and quality. This study aims to analyze the extent to which digital technology influences workers’ job quality in East Java Province using a multidimensional approach. The measurement method used in this study is the Job Quality Index (JQI) developed by the World Bank, which assesses four dimensions of job quality: income, security, benefits, and job satisfaction. This study uses 2023 Sakernas data, comprising 39,425 observations. The analytical method employed is binary logistic regression. Robustness tests across various model specifications are conducted to ensure the stability of the results. The findings show that using digital technology increases the likelihood of achieving better job quality by up to 2.3 times compared to non-users. Other individual characteristics, such as education, training, gender, and age, also positively influence workers’ job quality. Conversely, participation in the Pre-Employment Card (Prakerja) Program and living in urban areas are found to have negative effects. This study highlights the importance of digital literacy and inclusion, as well as human capital investment through education and competency-based training aligned with labor market needs.
Copyright (c) 2026 Jatu Mawar Widhiarti Putri, Devanto Shasta Pratomo, Susilo Susilo https://creativecommons.org/licenses/by/4.0
The role of financial inclusion and ICTs in shaping inclusive growth: A bibliometric analysis of past, present, and future trends
This study conducts a comprehensive bibliometric analysis to map and review the scientific literature on the role of financial inclusion (FI) and information and communication technologies (ICTs) in fostering inclusive growth, using the Scopus database. Although previous studies have examined FI, ICTs, and inclusive growth separately, few have systematically integrated their intellectual structures into a unified framework. The bibliometric analysis includes co-citation, bibliographic coupling, and co-word analyses, supported by VOSviewer software. The findings indicate that digital finance plays a significant role in driving financial inclusion and inclusive growth. Current research shows that financial inclusion reduces poverty and income inequality, while ICTs promote economic growth and innovation in fintech and digital financial systems. Emerging themes, including digital financial inclusion, fintech, microfinance, innovation, and sustainability, represent important research trends and future directions. Overall, the integrated findings demonstrate the growing role of digitally enabled financial systems in supporting inclusive economic development.
Copyright (c) 2026 Amaluddin Amaluddin, Teddy Christianto Leasiwal, Yerimias Manuhutu https://creativecommons.org/licenses/by/4.0
Financial inclusion, demographics, and experiential learning as drivers of entrepreneurial intention among Generation Z
In the contemporary digital economy, entrepreneurial development has become a crucial factor in strengthening national competitiveness. Higher education institutions are therefore expected to cultivate entrepreneurial capacity among students, particularly those from Generation Z, who face increasingly dynamic economic challenges. This study aims to analyze the effects of financial literacy, financial inclusion, and demographic factors on entrepreneurship and entrepreneurial intention. The study employed a quantitative approach using survey data collected from students of the Faculty of Economics and Business at Universitas Jambi. The data were analyzed using Structural Equation Modeling with the Partial Least Squares (SEM-PLS) method. The results indicate that financial inclusion has a significant positive effect on both entrepreneurship and entrepreneurial intention, while demographic factors significantly influence entrepreneurship but do not directly affect entrepreneurial intention. Entrepreneurship itself exerts a strong, significant effect on entrepreneurial intention, suggesting that entrepreneurial engagement serves as the primary pathway through which background characteristics and access to financial services are translated into entrepreneurial intention. In contrast, financial literacy does not show a significant direct effect on either entrepreneurship or entrepreneurial intention. These findings highlight that access to financial services and experiential entrepreneurial engagement are more decisive than financial knowledge alone in fostering entrepreneurial intention among Generation Z students, implying that universities should prioritize practice-based entrepreneurship education supported by inclusive financial access.
Copyright (c) 2025 Etik Umiyati, Dwi Hastuti, Jaya Kusuma Edy https://creativecommons.org/licenses/by/4.0
Socioeconomic determinants of blue-collar employment in West Java Province: A binary logistic regression approach
Employment issues remain a persistent national challenge in Indonesia, particularly in West Java Province, which has a high concentration of blue-collar workers. These workers, typically engaged in manual and technical sectors, often face structural vulnerabilities, including low job security, limited social protection, wage stagnation, and restricted career advancement opportunities. This study aims to analyze the characteristics and determinants influencing individuals’ likelihood of becoming blue-collar workers in West Java Province. Using a quantitative approach, the research draws on microdata from the 2022 National Labor Force Survey (SAKERNAS) provided by Statistics Indonesia (BPS). A binary logistic regression model is employed to examine how individual and employment-related characteristics affect the probability of working in blue-collar occupations. The results show that gender, marital status, education level, job training, participation in the Pre-employment Card program, age group, regional minimum wage category, and area classification significantly influence this likelihood. Notably, individuals with lower educational attainment are 2.9 times more likely to become blue-collar workers. The findings underscore the critical role of education in shaping labor market segmentation. Strengthening the education, vocational training, and Pre-employment Card ecosystem is essential to reduce the vulnerability of blue-collar workers and expand their access to decent, inclusive employment opportunities.
Copyright (c) 2025 Alvin Subastian, Wahyu Hidayat Riyanto, FX Gugus Febri Putranto, Muhammad Firmansyah https://creativecommons.org/licenses/by/4.0
Political positioning and local issue salience in the digital age: Evidence from regional elections in an archipelagic province
This study analyses the influence of political positioning on voter preferences, with local political issues functioning as a mediating variable within the framework of digital political marketing. Using a quantitative explanatory survey design, data were collected from 349 eligible voters in the Riau Archipelago Province and examined using Partial Least Squares Structural Equation Modeling (SEM–PLS) via WarpPLS 8.0. The results show that political positioning significantly affects voter preferences and that the salience of local political issues partially mediates this relationship. These findings highlight that positioning strategies are more effective when aligned with context-specific issues in geographically fragmented regions, thereby strengthening both emotional and cognitive voter evaluations. Theoretically, the study advances digital political marketing and issue-based voting frameworks, and, practically, offers guidance for designing contextually relevant political narratives in archipelagic settings.
Copyright (c) 2025 Kasirul Fadli, Johannes Johannes, Sry Rosita, Dahmiri Dahmiri https://creativecommons.org/licenses/by/4.0
The impact of inflation on Sierra Leone’s current account balance
This study examines the dynamic relationship between inflation and the current account balance (CAB) in Sierra Leone from 1980 to 2024, with a particular focus on both short-run and long-run effects. The objective is to determine the directional impact of inflation and other macroeconomic indicators on current account performance and to provide actionable insights for economic stabilization. Using the Autoregressive Distributed Lag (ARDL) bounds testing approach and Granger causality analysis, the study assesses both equilibrium and predictive relationships among inflation, the real exchange rate, foreign direct investment (FDI), GDP growth, real interest rates, and trade openness. The results indicate that, in the long run, the CAB improves by approximately 0.0867 percentage points for every one-percentage-point increase in inflation, consistent with the intertemporal current account framework. The findings also suggest feedback effects between inflation and the current account, though statistical significance varies across directions. Trade openness and FDI are found to exert negative long-run effects on the current account, while their lagged effects show positive adjustments. Exchange rate dynamics and interest rates are volatile, whereas economic growth contributes positively to the external balance. Furthermore, the results reveal that inflation Granger-causes GDP growth, real interest rates, and FDI, underscoring its broader macroeconomic influence. Overall, the findings highlight the importance of coordinated fiscal, monetary, and trade policies in maintaining external stability and macroeconomic balance in Sierra Leone.
Copyright (c) 2026 Ishmael Kamara, Indra Gunawan, Fajar Hirawan https://creativecommons.org/licenses/by/4.0
Fiscal decentralization, monetary policy, and economic growth in Indonesia: A panel data analysis
The implementation of regional governance through fiscal decentralization, particularly in the management of Local Own-Source Revenue (PAD), demonstrates that regional fiscal autonomy can effectively enhance community welfare under a decentralized government structure. Using the Ordinary Least Squares (OLS) method with panel data for the period 2010–2024, this study provides empirical evidence that community welfare—measured by the growth of real Gross Regional Domestic Product (GRDP) per capita—is significantly and positively influenced by several key factors. These include Local Own-Source Revenue (PAD) with a coefficient of 0.258, Transfer Funds to Regions and Village Funds (TKDD) with a coefficient of 0.046, the Human Development Index (HDI) with a coefficient of 0.070, and Regional Investment (FDI) with a coefficient of 0.006. However, the study also identifies challenges to sustaining real GRDP growth per capita, particularly from interest rates and income inequality, which exhibit significant negative relationships with coefficients of –0.202 and –0.011, respectively. These findings suggest that disparities in population income distribution and fluctuations in borrowing costs can hinder regional economic performance. To address these challenges, regional governments must adopt fiscal incentive policies that stimulate revenue generation and investment while prioritizing human resource development. Moreover, closer collaboration with central banking authorities is essential to manage monetary policy—especially in controlling interest rates—to maintain stability and ensure balanced, inclusive regional growth.
Copyright (c) 2025 Syahrimi Syahrimi, Ariodillah Hidayat, Anna Yulianita https://creativecommons.org/licenses/by/4.0
Dynamics of the underground economy in border areas: A case study of Indonesia-Timor Leste
The underground economy in border regions represents a complex phenomenon shaped by regulatory gaps, limited access to formal economic systems, and high transaction costs in legal trade. This study analyzes the dynamics of informal cross-border trade along the Indonesia–Timor-Leste border, focusing on North Central Timor (TTU) Regency and the Oecusse Enclave. Employing a qualitative descriptive approach, the research draws on field observations, semi-structured interviews, and thematic analysis to demonstrate that underground economic activities function not only as a survival strategy but also as an informally institutionalized, socially organized economic ecosystem. The findings reveal that price disparities, weak supervision, and limited institutional capacity collectively drive communities’ dependence on illicit trade. A comparative analysis of similar cases from international border regions highlights the need for policy responses tailored to local contexts. The study recommends strengthening bilateral cooperation, adopting surveillance technologies suited to regional capacities, and implementing community-based economic empowerment programs to facilitate the transition toward an inclusive and sustainable formal economy.
Copyright (c) 2025 Frederic Winston Nalle, Agus Suman, David Kaluge, Marlina Ekawati https://creativecommons.org/licenses/by/4.0
Foreign ownership as a moderating factor in transfer pricing: Evidence from multinational firms in Indonesia
This study examines the relationship between taxation, tunneling incentives, foreign ownership, and transfer pricing among multinational companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2023 period. Using purposive sampling, 27 firms were selected, resulting in 81 firm-year observations. The study employs multiple linear regression and moderated regression analysis (MRA) to assess both direct and interaction effects. The results show that taxation is not statistically significantly associated with transfer pricing, whereas tunneling incentives are negatively and significantly associated with it. Furthermore, foreign ownership plays a significant moderating role, strengthening the relationships between taxation and transfer pricing and between tunneling incentives and transfer pricing. These findings indicate that transfer pricing decisions are shaped by the interaction between internal governance mechanisms and external ownership structures rather than by individual factors in isolation. This study contributes to the literature on transfer pricing behavior in developing economies by highlighting the conditional role of foreign ownership. However, the model does not incorporate several potential control variables, such as firm size, profitability, leverage, and industry characteristics. Future research is therefore encouraged to include additional firm-level and macroeconomic variables to improve the model's robustness and explanatory power.
Copyright (c) 2026 Indah Yuliana, Salma Rasheeda, Oggy Maulidya Perdana Putri https://creativecommons.org/licenses/by/4.0
The impact of institutional quality, market openness, and government size on corruption across income levels
Government openness in managing the economy can stimulate growth, but carries the risk of policy misuse. This study analyzes panel data from 139 countries between 2012 and 2023 to examine the relationship between economic openness and corruption, as measured by the Corruption Perceptions Index (CPI). The findings reveal that key factors such as government integrity and financial freedom significantly influence CPI scores across countries with varying income levels. Nations characterized by flexible business regulations, transparent governance, strong legal protection of property rights, and stable monetary policies tend to exhibit lower levels of public sector corruption. However, the analysis also shows that financial freedom in high-income countries and investment freedom in upper-middle-income countries are negatively associated with CPI scores. This suggests that excessive liberalization—particularly in investment—without adequate regulatory oversight can increase corruption risks, likely due to limited transparency in capital flows and foreign investment practices. In contrast, when properly managed, the recognition of property rights, government integrity, and investment freedom are instrumental in reducing corruption in many middle-income countries. The study highlights the importance of strengthening government integrity, particularly in delivering public services and regulating an open economy. By ensuring effective and efficient oversight, countries can enhance their CPI scores and reduce the potential for corruption.
Copyright (c) 2025 Hendra Kusuma, Deden Iskandar https://creativecommons.org/licenses/by/4.0
Leading sectors, multiplier effects, and economic spillovers among the islands of East Nusa Tenggara Province
Regional economic disparities and fragmented inter-island linkages remain key challenges in East Nusa Tenggara (NTT), one of Indonesia’s archipelagic provinces with diverse resource endowments. This study analyzes the structure and dynamics of NTT’s regional economy by identifying its leading sectors through intersectoral linkage analysis, estimating the magnitudes of multiplier effects, and examining spillover effects across the province’s major islands. The research utilizes the 2016 Input–Output Table of NTT Province and the accumulated Gross Regional Domestic Product (GRDP) data of regencies and cities across the Timor, Flores, and Sumba islands for the 2016–2023 period. Analytical methods include linkage analysis, multiplier effect estimation, and the Vector Error Correction Model (VECM). The results show that agriculture, manufacturing, electricity, trade, and transportation constitute the leading sectors due to their strong forward and backward linkages. At the same time, agriculture and manufacturing also generate the largest multiplier effects. These sectors further create significant inter-island spillover effects, characterized by spread effects between Sumba–Timor, Sumba–Flores, and Timor–Sumba, and backwash effects between Timor–Flores and Flores–Sumba. The findings highlight that strengthening productive linkages in agriculture and manufacturing is vital for enhancing spatial equity and promoting inclusive regional growth. Conceptually, this study contributes to the literature by integrating intersectoral, multiplier, and spillover analyses to explain spatial economic interdependence in archipelagic regions and by offering practical policy implications for fostering sustainable inter-island integration in NTT Province.
Copyright (c) 2025 Werenfridus Taena, Anggelina Delviana Klau, Marce Sherly Kase, Fried Markus Alung Blegur, Felisisima Afoan, Febrya Christin Putri Handayani Buan https://creativecommons.org/licenses/by/4.0
The impact of institutional economics on carrying capacity and sustainable tourism of the subak landscape as a World Cultural Heritage site: A Bayesian network approach
This study aims to analyze the probability of sustainable tourism in Subak Pulagan. Specifically, it examines the probabilistic impact of optimizing tourist visits on tourism carrying capacity and sustainable tourism within the Subak Pulagan landscape. The analysis was conducted using the Bayesian Network (BN) approach to develop a sustainable tourism model that integrates components of institutional economics, destination support factors, carrying capacity, and the World Cultural Heritage (WCH) designation as interrelated variables. Tourism in Subak Pulagan has strong potential for development through village tourism and rural tourism approaches. However, it is crucial to prevent overuse of the carrying capacity, as excessive tourist numbers could undermine the sustainability of tourism in the area. The findings indicate that a significant increase in tourist visits is likely to have a substantial impact on physical and environmental capacities. In contrast, the WCH designation and its associated recognition have not yet made a significant contribution to the sustainable tourism development of Subak Pulagan. As a policy implication, it is recommended to strengthen preventive measures to manage tourism carrying capacity—particularly in the physical and environmental dimensions—to ensure that tourism development supports both heritage preservation and long-term sustainability.
Copyright (c) 2025 Ni Nyoman Reni Suasih, Ida Ayu Nyoman Saskara, Putu Yudy Wijaya, I Made Putra Yasa https://creativecommons.org/licenses/by/4.0
The impact of economic growth, inequality, and resource depletion on CO2 emissions in Indonesia: Evidence from the ARDL model
This study examines the impact of natural resource depletion, economic growth, and income inequality on CO₂ emissions in Indonesia from 1990 to 2021. Utilizing time series data from the World Bank, the analysis employs the Auto-Regressive Distributed Lag (ARDL) model to simultaneously assess both short- and long-run relationships among the variables, while also testing the validity of the Environmental Kuznets Curve (EKC) hypothesis. The results reveal that natural resource depletion, economic growth, and income inequality all have a positive and statistically significant effect on CO₂ emissions in both the short and long term. Furthermore, the findings provide strong empirical support for the existence of an inverted U-shaped EKC in Indonesia, indicating that emissions initially rise with income but eventually decline beyond a certain income threshold. These results underscore the crucial need for comprehensive policy frameworks that effectively integrate economic development, environmental sustainability, and social equity. In particular, the significant role of resource depletion necessitates prioritizing sustainable resource management strategies—such as forest conservation, responsible mining practices, and improved resource efficiency—to mitigate environmental degradation.
Copyright (c) 2025 Annisa Annisa, Anna Yulianita, Abdul Bashir https://creativecommons.org/licenses/by/4.0
An analysis of bank productivity in Indonesia: The impact of P2P lending and digital payments using the Malmquist Productivity Index
This study investigates the relationship between technological adoption and banking productivity, specifically focusing on Indonesian banks over five years. Using the Malmquist Productivity Index (MPI), the study measures changes in productivity and identifies the variables that influence increases or decreases in performance. The findings reveal that P2P lending and digital payment innovations have a significant positive effect on enhancing bank productivity. Additionally, other bank-specific and macroeconomic variables were found to impact productivity levels. The results highlight the importance of continuous technological development and strategic operational improvements to sustain productivity growth. Based on these findings, it is recommended that banks intensify investments in financial technology, diversify their digital service offerings, and adapt operational models to reach broader market segments. Furthermore, regulatory bodies are encouraged to foster a competitive environment that promotes innovation while ensuring financial stability. These efforts are crucial to maintaining long-term efficiency and competitiveness in the banking sector.
Copyright (c) 2025 Fajra Octrina, Jihan Eliza, Almi Jamilah, Andrieta Shintia Dewi https://creativecommons.org/licenses/by/4.0
Demand-side determinants of Indonesian palm oil exports to major destination countries: Evidence from India, China, and Pakistan
Palm oil is one of Indonesia’s leading export commodities and plays an important role in supporting export revenue and international trade performance. This study aims to analyze the development of Indonesian palm oil exports and examine the influence of gross domestic product (GDP), exchange rates, and population on Indonesian palm oil exports to its three major destination countries, namely India, China, and Pakistan, during the period 2012–2022. This study employed a quantitative approach using descriptive analysis and panel data regression. The findings show that Indonesian palm oil exports to the three destination countries fluctuated during the observation period, with India recording the highest average export value and Pakistan showing a stronger upward trend toward the end of the period. The regression results indicate that GDP and exchange rates have a positive and significant effect on Indonesian palm oil exports, while population has a significant negative effect. These findings suggest that destination-country macroeconomic conditions and price competitiveness play an important role in shaping Indonesia’s palm oil export performance. This study contributes to the international trade literature by providing comparative empirical evidence on the demand-side determinants of Indonesian palm oil exports across major destination countries. In addition, the findings offer practical insights for strengthening export competitiveness and developing export-oriented trade strategies in the global palm oil market.
Copyright (c) 2025 Siti Hodijah, Erni Achmad, Emilia Emilia, Candra Mustika https://creativecommons.org/licenses/by/4.0
Does grit reduce job-hopping intentions? Evidence from millennial industrial workers in Purwakarta, Indonesia
This study examines the relationship between grit and job-hopping intention among millennial employees in the industrial sector of Purwakarta Regency, West Java, Indonesia. Millennials are often considered a challenging generation to manage due to their dynamic work behavior and tendency to change jobs frequently. Using a quantitative approach, data were collected through 100 questionnaires from industrial workers and analyzed using validity, reliability, regression, correlation, and determination tests. The results revealed that grit among respondents was relatively low, while job-hopping intention was relatively high. Regression analysis confirmed that grit had a significant negative effect on job-hopping intention, indicating that employees with higher perseverance and resilience were less likely to intend to leave their jobs. The coefficient of determination indicated that grit explained 22.6% of the variation in job-hopping intention, with the remainder influenced by other factors, such as compensation, career opportunities, and work–life balance. These findings suggest that organizational strategies to strengthen grit, combined with supportive labor market policies, are crucial for reducing turnover intentions and enhancing workforce stability in the industrial sector.
Copyright (c) 2025 Deden Sutisna, Neuneung Ratna Hayati, Vina Silviani Marinda https://creativecommons.org/licenses/by/4.0
Digital payment adoption and managerial preferences in Madura’s culinary tourism sector: Evidence from the analytic hierarchy process
This study investigates the payment preferences of culinary tourism managers in Madura, with particular attention to the adoption of the Quick Response Code Indonesian Standard (QRIS) as a non-cash payment method. Employing the Analytic Hierarchy Process (AHP), the research identifies the key factors influencing payment decisions among managers across four districts in Madura. The results indicate that convenience is the most influential factor, followed by utility and safety. At the same time, QRIS remains the least preferred payment option compared to cash and other non-cash alternatives. Barriers to QRIS adoption include technical challenges, limited digital literacy, and insufficient infrastructure. The study underscores the need to strengthen technological infrastructure and enhance digital awareness to accelerate the adoption of non-cash payments within Madura’s culinary tourism sector. These findings contribute to the growing body of literature on financial inclusion and digital transformation in tourism, offering practical insights for policymakers and industry stakeholders seeking to promote inclusive digital economies.
Copyright (c) 2025 Ris Yuwono Yudo Nugroho, Mochammad Reza Adiyanto https://creativecommons.org/licenses/by/4.0
Sustainable finance and green economic growth: Evidence from the Indonesian banking sector
Green economic growth has emerged as a global priority in pursuing sustainable development. This study examines the role of resource allocation efficiency in supporting green economic growth, as influenced by green financing practices, sustainable finance policies, and green financial products. A quantitative research approach was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The study population consisted of 107 financial institutions. A purposive sampling technique was used to select 168 respondents from 84 banks, comprising senior managers, division heads, and executives responsible for implementing sustainable finance policies—averaging two respondents per institution. The results reveal that green financing practices, sustainable finance policies, and green financial products directly and significantly impact green economic growth. Moreover, resource allocation efficiency plays a mediating role in strengthening these relationships. These findings underscore the importance of the banking sector in driving innovation in green financial products, implementing sustainable finance policies, and enhancing resource utilization efficiency. In conclusion, the banking sector holds a strategic position in advancing green economic growth. Future research could extend this framework by examining the role of non-financial sectors or exploring how digital technology transformation facilitates green financing to support sustainable development goals further.
Copyright (c) 2025 Rita Zulbetti, Adzirah Muzaffirah, Alfiana Alfiana, Perwito Perwito https://creativecommons.org/licenses/by/4.0
A closer look at willingness to pay: An economic perspective on the Gringsing weaving cultural industry
Gringsing weaving from Tenganan Village is renowned for its distinctive indigo blue dye, derived from the tawum tree. However, traditional awig-awig (customary regulations) prohibit dyeing within the village due to environmental concerns, particularly the risk of groundwater contamination. As a result, dyeing activities are relocated to neighboring Bugbug Village, where local rivers are used for washing and saltwater soaking—processes that enhance the quality of the dye. This relocation has led weavers to outsource dyeing services, prompting an investigation into the factors influencing their willingness-to-pay (WTP). This study employs Focus Group Discussions (FGDs) with Gringsing weavers and relevant government stakeholders, supported by MICMAC (Matrix of Cross-Impact Multiplications Applied to a Classification) and Bayesian Belief Network (BBN) analyses. The MICMAC results identify cultural capital and awig-awig as primary driving factors shaping WTP. BBN analysis further highlights the significant influence of Communal Intellectual Property Rights (CIPR) and income stability. These findings suggest that willingness to pay is shaped not only by economic considerations but also by deeply embedded cultural and institutional factors. To ensure the long-term sustainability of the Gringsing weaving tradition, interventions must integrate cultural revitalization, environmental responsibility, and financial empowerment. Strengthening intellectual property protections, promoting income-generating opportunities, and respecting traditional regulatory frameworks are essential to preserving both the cultural integrity and economic viability of the Gringsing weaving industry.
Copyright (c) 2025 Desak Made Marysha Dewi, Ida Ayu Nyoman Saskara https://creativecommons.org/licenses/by/4.0
Community empowerment model in mining areas to improve welfare: Some lessons from Jambi Province, Indonesia
Jambi Province holds significant potential in the coal mining sector, contributing substantially to Local Own Source Revenue and supporting the local economy. With the sixth-largest coal reserves in Indonesia, these resources are spread across key districts such as Sarolangun, Muaro Jambi, Tebo, Batanghari, and Bungo. The coal mining sector provides economic benefits not only through job creation and infrastructure development but also poses significant social and environmental challenges, including air pollution, road damage, and degradation of water quality. This study aims to (1) analyze the social, economic, and environmental impacts of coal mining activities in Jambi Province, (2) evaluate the effectiveness of empowerment programs implemented by companies through CSR, and (3) design an empowerment model that can improve the welfare and economic independence of communities surrounding the mines. The research methodology includes field surveys, SWOT analysis, and Analytical Hierarchy Process (AHP) to determine program priorities. The findings reveal that CSR activities around the mines have a positive impact on community welfare; however, challenges exist in program sustainability and limited community involvement in planning. The SWOT analysis identifies strengths, weaknesses, opportunities, and threats, such as community dependence on the mining sector and significant environmental impacts. Based on the AHP results, the priority programs identified include skills training, support for small and medium-sized enterprises (SMEs), and the enhancement of educational and healthcare infrastructure to create a sustainable impact. To maximize the economic benefits of mining, a community empowerment model that focuses on economic diversification and community engagement is necessary. This study recommends collaboration between companies and the government to develop inclusive and sustainable programs that improve the welfare of communities surrounding mining areas.
Copyright (c) 2025 Haryadi Haryadi, Nurhayani Nurhayani, Erni Achmad, Rosmeli Rosmeli https://creativecommons.org/licenses/by/4.0
Analysis of technical efficiency and socio-economic factors influencing the development of smallholder oil palm plantations in Batanghari Regency, Indonesia
This study aims to analyze technical efficiency and the influence of socio-economic factors on the development of smallholder oil palm plantations. Data were collected using the Simple Random Sampling method, utilizing both primary and secondary data. The analytical methods employed include descriptive analysis and the Stochastic Frontier Production Function with the Maximum Likelihood Estimation (MLE) method. The results reveal that the average size of oil palm plantations is 3.9 hectares per farmer, with a productivity rate of 13,853 kg/ha. Production factors such as land area, NPK fertilizer, urea, and dolomite fertilizer significantly influence production, whereas labor and herbicides show no significant effects. The technical efficiency levels range from 0.81 to 0.95, with an average of 0.86, which is greater than the threshold of 0.62, indicating that oil palm plantations operate at a technically efficient level. Socio-economic factors, including land area and plantation distance, potentially increase technical inefficiency but have no statistically significant effect. Conversely, variables such as farming experience, access to technology, and active participation in farmer groups help reduce technical inefficiency. To promote the development of smallholder oil palm plantations, it is crucial to focus on enhancing technical efficiency, as it directly impacts productivity. Additionally, consideration of farmers' socio-economic conditions and external factors such as market prices and environmental conditions is essential.
Copyright (c) 2023 Yanuar Fitri, Saidin Nainggolan https://creativecommons.org/licenses/by/4.0
Fertility decline and economic growth challenges: Japan's struggle amid a demographic crisis
This study examines the impact of demographic factors, particularly declining fertility rates and an aging population, on Japan’s economic growth from 1960 to 2022. Additionally, it analyzes key macroeconomic variables, including healthcare expenditure, interest rates, and inflation, that influence the country’s economy. Using quantitative time-series data and the Vector Error Correction Model (VECM), this research evaluates the short- and long-term effects of these variables on economic growth. The findings indicate that, in the long run, population aging and high interest rates significantly negatively affect economic growth. In contrast, healthcare expenditure and moderate inflation have a positive impact. Population aging slows economic expansion by increasing pension and healthcare costs, while high interest rates discourage investment and consumption. Conversely, healthcare expenditure, as an investment in human capital, enhances labor productivity, and moderate inflation stimulates economic activity by promoting consumption and investment. However, in the short term, none of these variables exhibit a significant impact on economic growth, suggesting that policy measures and demographic changes require time to influence the broader economy.
Copyright (c) 2025 Hamira Hamira, Dirta Pratama Atiyatna, Feny Marissa, Dwi Darma Puspita Sari, Khairunnas Khairunnas https://creativecommons.org/licenses/by/4.0
Evidence-based strategies for extreme poverty reduction: Identifying priority areas in Jambi Province, Indonesia
Extreme poverty is a global priority within the framework of the Sustainable Development Goals (SDGs), with “No Poverty” designated as Goal 1 by the United Nations. Indonesia has targeted the eradication of extreme poverty to 0–1% by 2024, requiring each region to accelerate its efforts, including Jambi Province, which recorded an average extreme poverty rate of 1.36% in 2021. This study aims to identify priority areas of extreme poverty in Jambi Province and to formulate evidence-based strategies through the integration of spatial mapping using the Extreme Poverty Coefficient (K₀) with the Analytical Hierarchy Process (AHP). The analysis employed district/municipality-level data for the period 2021–2022, with K₀ constructed from official BPS indicators and AHP conducted through expert assessments across institutions. The findings reveal shifts in priority areas: in 2021, the highest-priority regions were Tanjung Jabung Barat, Tanjung Jabung Timur, and Jambi City, while in 2022, Sarolangun and Batang Hari emerged as new high-priority areas. The AHP results indicate that reducing household expenditure burdens is the main strategic criterion (0.748), followed by reducing poverty pockets (0.134) and increasing community income (0.119). The most prominent policy alternatives include food subsidies, energy subsidies, and the empowerment of local economies and MSMEs. Methodologically, this study contributes by integrating K₀-based spatial mapping with AHP to produce policy strategies that are convergent, measurable, and place-based. These findings are expected to strengthen Indonesia’s efforts to accelerate the eradication of extreme poverty.
Copyright (c) 2025 Zulgani Zulgani, Faradina Zevaya, Fadwa Rhogib As https://creativecommons.org/licenses/by/4.0
From cultural heritage to sustainability: Evaluating green economy in the Gringsing weaving industry using the MULTIMOORA approach
The green economy, as a dimension of sustainable development, offers a comprehensive framework for achieving sustainability goals. The Gringsing textile industry in Bali presents a unique opportunity to integrate traditional crafts with principles of a green economy. This study examines the opportunities and challenges of sustainable Gringsing textile production in Tenganan through the lens of green economy principles. The MULTIMOORA (Multi-Objective Optimization by Ratio Analysis plus Full Multiplicative Form) method was employed to evaluate the environmental, economic, and social impacts of production alternatives. The findings reveal that Alternatives A1 and A3 achieved identical aggregate values of 0.84, with distinct strengths. A1 excels in economic viability and social contribution, making it a balanced option for stakeholders seeking comprehensive benefits. In contrast, A3 demonstrates superior environmental performance, making it the preferred choice for initiatives prioritizing ecological sustainability. Opportunities for sustainable Gringsing textile production include market expansion, innovation, and policy support, while challenges encompass high production costs, market competition, and resource constraints.
Copyright (c) 2025 I Dewa Ayu Made Natasah Dewani, Ida Ayu Nyoman Saskara https://creativecommons.org/licenses/by/4.0
Assessing the unemployment rate as a mediator between SMEs and economic growth
Economic growth and unemployment reduction in developing countries can be strengthened by improving the business quality of SMEs. As SMEs dominate Indonesia’s industrial structure, this study examines their relationship with economic growth, with unemployment rates as a moderating variable, in West Java, Central Java, and East Java from 2015 to 2022. Using Structural Equation Modeling (SEM) on 96 observations, the findings reveal that the number of SME business units has a significant negative impact on the unemployment rate, whereas total assets have a positive impact. A higher asset value enhances the capacity for modernization and digitalization, which, in turn, reduces labor absorption and potentially increases unemployment. Additionally, a decline in the unemployment rate positively influences economic growth, which is consistent with Okun’s Law, though with a relatively low magnitude. These findings highlight the need for government policies to facilitate SME business development by improving production standards, expanding access to business capital, and enhancing market reach. This approach aligns with the UMKM Naik Kelas (SME Scale-Up) program, which aims to promote sustainable SME growth and economic resilience.
Copyright (c) 2025 Malik Cahyadin, Heru Irianto, Basem Ertimi https://creativecommons.org/licenses/by/4.0
Human capital and gender development in economic growth: A case study of Sumatera Barat, 2010–2022
This study analyzes the impact of the Human Development Index (HDI), Gender Development Index (GDI), and unemployment rate on economic growth in Sumatra Barat from 2010 to 2022. Economic growth, measured by Gross Regional Domestic Product (GRDP) per capita, reflects regional welfare. It is essential to understand the factors influencing it, particularly the quality of human resources and employment opportunities. According to data from BPS, economic growth in Sumatera Barat remains low compared to other provinces on the island of Sumatra. This study employs a dynamic panel data model using the Generalized Method of Moments (GMM) approach to address potential endogeneity issues arising from the reciprocal relationship between independent variables and economic growth. The findings indicate that HDI has a positive and significant effect on economic growth, suggesting that improvements in education, healthcare, and living standards contribute to economic expansion in Sumatera Barat. Similarly, GDI has a significant positive effect, highlighting the crucial role of gender equality in human development and driving economic growth. In contrast, the unemployment rate has a negative and significant impact, demonstrating that high unemployment hinders regional economic progress.
Copyright (c) 2024 Fita Dinda, Ratih Ramadhani https://creativecommons.org/licenses/by/4.0
The impact of inflation and interest rates on global stock markets: The moderating role of consumer confidence across five continents
This study examines the impact of inflation and interest rates on global stock market index performance, with the moderating role of the Consumer Confidence Index (CCI) across five countries representing different continents: the United States, the United Kingdom, China, South Africa, and Australia. These countries were selected for their distinct economic policies and significant contributions to the global economy. Using the Moderated Regression Analysis (MRA) method and 2,400 monthly data observations spanning 2014 to 2023, sourced from official institutions such as central banks and financial agencies, this research provides key insights. The findings reveal that inflation positively influences index performance in the United States, the United Kingdom, and Australia, while it negatively impacts performance in China. Interest rates predominantly have a negative effect on index performance, except in the United Kingdom and China, where the effect is statistically insignificant. The moderation effect of the CCI varies by country, highlighting the role of unique economic contexts in shaping the relationship between inflation, interest rates, and stock market indices. This study offers valuable implications for policymakers in managing inflation and bolstering consumer confidence and provides strategic insights for investors navigating global economic dynamics.
Copyright (c) 2025 Ahmad Zidni Nuuron A'la, Agus Sucipto, Indah Yuliana https://creativecommons.org/licenses/by/4.0
Integrating community-based adopt-a-tree programs with sustainable agrotourism: A Pathway to inclusive green growth in Merangin Regency
The integration of conservation initiatives with tourism development has emerged as an important strategy for promoting sustainable rural development. This study examines how community-based Adopt-a-Tree (AAT) programs are integrated into sustainable agrotourism in Merangin Regency, Indonesia, and how this integration contributes to environmental conservation and local livelihood opportunities. A qualitative case study approach was employed, drawing on data from in-depth interviews, focus group discussions, field observations, and supporting documents related to the implementation of tree adoption programs in Rantau Kermas and Guguk villages. Thematic analysis was conducted using NVivo 15 to identify patterns and relationships across stakeholder perspectives. The findings indicate that AAT programs function as a community-driven conservation mechanism that supports forest restoration, biodiversity protection, and increased environmental awareness among residents and visitors. The analysis also reveals that stakeholder collaboration, training activities, and local governance support are important for sustaining the implementation of conservation initiatives. In addition, integrating tree adoption with agrotourism creates new livelihood opportunities through eco-tourism services, agroforestry products, and community-based tourism activities. However, several challenges remain, including limited technical capacity, unequal participation opportunities, and constraints in institutional and financial support. Overall, the study demonstrates that AAT programs can serve as an effective model for integrating conservation initiatives with sustainable agrotourism development while supporting inclusive rural livelihoods and long-term environmental stewardship
Copyright (c) 2026 Zulgani Zulgani, Junaidi Junaidi, Dwi Hastuti, Fadwa Rhogib Asfahani, Wahdan Adillah Amri Lubis https://creativecommons.org/licenses/by/4.0
What shapes older adults’ multidimensional well-being in Jambi Province, Indonesia? Integrating capability–ecological frameworks
This study examines the socioeconomic determinants of subjective well-being (SWB) among older adults in Jambi Province, Indonesia, using a multidimensional framework encompassing life satisfaction, emotional well-being, and life meaning. Addressing limitations in prior research that often employ unidimensional measures or neglect contextual factors, this study integrates individual and environmental perspectives. A cross-sectional survey of 207 individuals aged 60 and above was conducted between July and August 2024 using stratified random sampling. Multiple linear regression was employed for analysis. The findings reveal that gender, educational attainment, and household role consistently and positively influence all dimensions of SWB. Economic activity status, income, ethnicity, and residential area also contribute to variation, although their effects are mixed. Chronological age showed no significant association with SWB. Interpreted through the Capability Approach and the Ecological Model of Aging, the results highlight how individual capacities and contextual conditions jointly shape well-being in later life. The study highlights the importance of implementing integrated policy measures, including inclusive pension systems, lifelong learning programs, and age-friendly infrastructure, to improve economic security and social inclusion for older adults.
Copyright (c) 2025 Hardiani Hardiani, Junaidi Junaidi, Putri Intan Suri https://creativecommons.org/licenses/by/4.0
Employment status and women's fertility: Do working women have fewer children?
This study aims to analyze the differences in fertility between employed and unemployed women in Jambi City and identify the socio-economic factors influencing the number of children they have. The study applies Propensity Score Matching (PSM) to ensure a fairer comparison between the two groups and Inverse Probability Weighting (IPW) to control for other variables that may affect the relationship between employment status and fertility. The results of the analysis indicate that the average number of children is higher among unemployed women than among employed women. However, after applying IPW weighting, employment status no longer has a significant effect on the number of children. Instead, economic factors, particularly household income, play a more significant role in determining fertility. Additionally, women’s age contributes to fertility differences, with older women tending to have fewer children. Meanwhile, education level and age at first marriage do not show a significant effect after weighting.
Copyright (c) 2024 Yulmardi Yulmardi, Erfit Erfit, Putra Dios Nugraha https://creativecommons.org/licenses/by/4.0
Measuring gender inequality in household decision-making and its impact on food security: Evidence from rice-farming households in Jambi Province, Indonesia
This study investigates the impact of gender inequality in household decision-making on food security among rice-farming households in Jambi Province, Indonesia. Drawing on the Harvard and Moser Models, the research develops quantitative indicators of gender roles and applies an ordered probit model to assess household food security across ranked categories. Data were collected from 214 households using a two-stage stratified sampling method, combining survey responses with secondary institutional data. The findings reveal that only 29% of households are food secure, while 71% experience either temporary or chronic food insecurity. Male-dominated households are more likely to achieve food security, whereas female-dominated and jointly managed households are significantly more vulnerable. Structural factors also exert a decisive influence: the education of the household head and land ownership consistently enhance food security. At the same time, participation in farmer training without resource support and reliance on non-farm income have adverse effects. These results underscore the importance of gender-inclusive policies that expand women’s access to education, land, credit, and market information. Targeted microcredit programs, resource-supported training, and the promotion of joint decision-making are recommended to reduce gender inequality and strengthen sustainable food security in rural farming communities.
Copyright (c) 2025 Junaidi Junaidi, Hardiani Hardiani, Dwi Hastuti https://creativecommons.org/licenses/by/4.0
How government incentives shape consumer intention to adopt electric vehicles: A study in Batam City
This study analyzes the factors influencing the intention to purchase electric vehicles (EVs) following the implementation of financial incentives. It integrates the Theory of Planned Behavior (TPB), the Technological Acceptance Model (TAM), and extensions of TPB, including consumer knowledge, perceived risk, and financial incentives. Data were collected from 384 respondents, comprising both EV users and non-users in Batam City. The findings reveal that attitude has an insignificant effect on the intention to buy EVs, while perceived usefulness also shows an insignificant effect on attitude. In contrast, consumer knowledge and financial incentives significantly influence both attitude and purchase intention. Perceived risk negatively affects attitude and intention to buy EVs. The study highlights the need for policies providing financial incentives to consider long-term benefits for consumers to ensure sustainable adoption of EVs.
Copyright (c) 2024 Suyono Saputra, Yulfiswandi Yulfiswandi, Wisnu Yuwono https://creativecommons.org/licenses/by/4.0
Assessing the impact of oil rent on living standards in Nigeria: Evidence from an ARDL Model
Some countries are naturally endowed with abundant natural resources, which serve as a significant source of government revenue for national development. Conversely, other countries lacking such resources rely on alternative means to generate income for their developmental efforts. The disparity in development and living standards among nations, however, cannot be attributed solely to the unequal distribution of natural resources but rather to the effectiveness and efficiency with which resource revenues are utilized. This study examines the effect of oil rents on living standards in Nigeria using the Autoregressive Distributed Lag (ARDL) model. The findings reveal a positive long-run relationship between Living Standard (LS), Oil Rent (OR), and Gross Domestic Product (GDP), while a negative relationship is observed with Oil Price (OP) and Exchange Rate (ER). However, these relationships are found to be statistically insignificant. In the short run, the results show a negative and statistically significant relationship between living standards and the variables of Oil Rent, Oil Price, GDP, and Exchange Rate. These findings highlight the complex dynamics between oil rents and living standards, particularly in the context of short-run economic fluctuations. In light of these results, the study recommends that the government prioritize making all refineries operational to meet domestic fuel demand and reduce the costs associated with fuel importation, which consumes a substantial portion of the country's earnings from oil exports. Furthermore, revenues from oil exports should be channeled into productive projects that directly improve the living standards of citizens, such as investments in infrastructure, healthcare, and education. These measures are essential for ensuring that the wealth generated from natural resources translates into sustainable development and improved quality of life for the populace.
Copyright (c) 2024 Zakaree Saheed, Lawal Omotunde https://creativecommons.org/licenses/by/4.0
Redesigning a Circular Business Model Canvas (CBMC) for smallholder dairy farming: Financial feasibility and SDG alignment in Sarangan, Indonesia
The Indonesian government has committed to implementing a circular economy, as outlined in its national roadmap to 2025. This study aims to redesign a Circular Business Model Canvas (CBMC) for smallholder dairy farming in Sarangan, Magetan, to enhance farmers’ income and welfare while promoting environmental sustainability. An exploratory mixed-methods design was employed, combining thematic analysis and expert judgment with financial feasibility assessment using the Benefit–Cost (B/C) ratio. The redesigned CBMC incorporates circular economy principles into dairy operations, emphasizing eco-conscious value propositions, diversified revenue streams, and multi-stakeholder partnerships. The results show that cheese processing, yogurt production, and the tourism café are financially viable under normal (B/C ≈ 2.4–2.5) and peak demand (B/C > 6) conditions but not under low-demand conditions (B/C < 1). The model also contributes significantly to the Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth, 85%), SDG 6 (Clean Water and Sanitation, 80%), and SDG 7 (Affordable and Clean Energy, 75%), with lower contributions to SDG 12 (70%) and SDG 15 (60%). Key challenges include farmer resistance to adopting new practices, limited access to capital, and seasonal fluctuations in demand. The study addresses these barriers and offers strategies to ensure scalability. Overall, this research fills a gap in the application of circular business models in agrifood systems by integrating business model redesign, financial feasibility, and SDG mapping, providing a replicable framework for smallholder dairy–ecotourism communities in developing regions.
Copyright (c) 2025 Kusnul Ciptanila Yuni K, Nurul Hidayat, Anita Musfiroh https://creativecommons.org/licenses/by/4.0
Simultaneous elections for budget efficiency: Advancing fair and inclusive democracy
General elections in Indonesia, a cornerstone of the country's democracy, face significant challenges in the post-COVID-19 era. This research examines the efficiency, implementation, and impact of Law Number 7 of 2017 and Law Number 10 of 2016 in the context of the 2024 simultaneous elections. The study emphasizes financing efficiency, evaluates implementation outcomes, and compares simultaneous and non-simultaneous elections. The research incorporates legal principles grounded in responsive law theory and progressive law theory and employs a descriptive-analytical and qualitative approach. Findings reveal the successful implementation of Law Number 7 of 2017 during the 2019 simultaneous elections, achieving notable efficiency in cost and time savings. However, challenges such as logistical complexities and inaccuracies in voter data management require further attention. The synergy between Law Number 10 of 2016 and Law Number 7 of 2017 provides a robust legal framework, fostering more effective and participatory general elections. The study underscores the importance of the interconnection between election laws and the administration of simultaneous elections in strengthening Indonesia’s democratic processes. Addressing existing challenges and ensuring consistency in regulatory frameworks will be crucial for enhancing the integrity and efficiency of future general elections.
Copyright (c) 2025 Yenita Yenita https://creativecommons.org/licenses/by/4.0
The impact of digital transformation on financial inclusion: Evidence from MSMEs in Indonesia
The integration of digitalization in micro, small, and medium enterprises (MSMEs) has become a cornerstone in enabling these businesses to thrive within an increasingly competitive and dynamic marketplace. This study, based on data from a survey of 5,553 MSMEs, examines the impact of digitalization on financial inclusion and enterprise productivity. The findings reveal that digitalization reduces MSMEs' dependence on traditional banking systems for credit, facilitating access to alternative financing options through internet-based technologies. Moreover, advancements in technology contribute to increased bank loans and improved MSME productivity by overcoming conventional barriers to financial inclusion and reaching previously underserved segments of the MSME sector. The adoption of formal business status fosters structured and organized operations, thereby enhancing overall performance, while the mere longevity of a business does not guarantee increased productivity. Additionally, improved financial management skills acquired through training are shown to diminish reliance on traditional bank financing. The study also highlights the adverse effects of the COVID-19 pandemic, including lockdown measures, supply chain disruptions, and changes in consumer behavior, which collectively led to a decline in MSME productivity.
Copyright (c) 2024 Harunurrasyid Harunurrasyid, Gustriani Gustriani, Mardalena Mardalena, Rahma Nida https://creativecommons.org/licenses/by/4.0
An analysis of employment participation and its determinants among older adults in Jambi Province, Indonesia
The older adult population in Jambi Province constituted 10.23% of the total population in 2023, categorizing it as an "aging population." This study aims to provide an overview of the employment participation of older adults in Jambi Province and to analyze the factors influencing their continued engagement in the labor force. The research employs descriptive and inferential analyses, utilizing binary logistic regression methods based on data from the National Labor Force Survey (Sakernas) conducted in October 2023 in Jambi Province. The findings reveal that the majority of the older adult population in Jambi Province remains actively employed, with 53.40% reporting work as their main activity. The working older adult population is predominantly characterized by individuals residing in rural areas, males, those with education levels up to junior high school or lower, individuals without physical limitations, married individuals, and heads of households—factors that significantly increase their likelihood of being employed in old age. The agricultural sector serves as the primary employer for the older adult workforce in Jambi, absorbing 69.64% of older adult workers, followed by the trade sector at 10.95%. Both sectors are characterized by their minimal reliance on formal educational qualifications, emphasizing physical capability over academic credentials.
Copyright (c) 2024 Eva Riani, Arie Wahyu Wijayanto, Arham Rivai https://creativecommons.org/licenses/by/4.0
Potential scenario of sustainable tourism through women's empowerment: A SMIC-Prob scenario analysis for Penglipuran Village, Bali, Indonesia
Penglipuran Village is a popular destination for tourists seeking to experience the essence of Bali. Known for its environmentally friendly settlement, Penglipuran is distinguished by its orderly and symmetrical buildings, each with a uniform main gate called Angkul-Angkul. The community places great value on upholding the honor of women in Bali. The objective of this research is to evaluate the potential scenarios that could empower women in the tourism industry and determine the sensitivity of scenarios that drive tourism sustainability in Penglipuran Village. This was achieved using the SMIC-Prob Expert model. The analysis identified three main priority scenarios: (1) working as usual, (2) improving side businesses, and (3) changing the profession. The results indicate that the scenario combination with the highest probability is "110," with an opportunity size of 0.138. This combination, where women continue to work as usual (PrimJob) and focus on the improvement of side businesses (SidePrim), is the best option for women tourism actors to support the sustainability of tourism in Penglipuran Village. Sensitivity analysis, measured by elasticity, identifies SidePrim as the "prime mover" or main driver of tourism sustainability. By implementing improvements in side businesses, women’s involvement in tourism can significantly contribute to achieving future goals alongside stakeholders and the government.
Copyright (c) 2024 I Gusti Ayu Mira Ananda Putri, Ida Ayu Nyoman Saskara https://creativecommons.org/licenses/by/4.0
Digital-based performance model for the Arabica Coffee supply chain: A case study of the Koerintji Barokah Bersama Cooperative in Kerinci, Indonesia
This study examines the performance model of the Arabica coffee supply chain managed by the Koerintji Barokah Bersama Cooperative, emphasizing the integration of supply chain management (SCM), social capital (SC), and information technology (IT) to enhance efficiency, transparency, and competitiveness. Using a mixed-methods approach involving descriptive analysis and Structural Equation Modeling (SEM), the study explores the current state of SCM, SC, and IT, evaluates supply chain performance, and develops a comprehensive performance model. The findings indicate that SCM, SC, and IT significantly influence supply chain performance, with IT and SC playing crucial mediating roles. The cooperative demonstrated strengths in reliability, flexibility, and utility, though cost management requires further improvement. The proposed model validates that a collaborative and digital approach can improve operational efficiency, stakeholder coordination, and market adaptability. The study highlights the need for stronger SCM coordination, enhanced SC through trust and collaboration, and greater IT adoption for real-time monitoring and data-driven decision-making. Despite its robust methodology, limitations include a localized focus and exclusion of broader external factors like global market trends and climate change. Future research should explore advanced technologies such as IoT, AI, and Big Data Analytics and assess long-term performance across diverse regions and market contexts to ensure sustainability and global competitiveness.
Copyright (c) 2024 Teguh Tri Handiyanto, Suandi Suandi, Fuad Muchlis https://creativecommons.org/licenses/by/4.0
The impact of the blue economy and renewable energy on CO2 emissions in Indonesia: An ARDL approach
Indonesia, the largest archipelagic country in the world with rich marine biodiversity, has significant potential for developing a blue economy encompassing aquaculture, sustainable fisheries, and maritime tourism. However, if not managed sustainably, these activities could increase CO2 emissions. Indonesia is also among the world's highest emitters of greenhouse gases, largely due to deforestation, forest burning for agriculture, and reliance on fossil fuels in the energy sector. Given global commitments to reducing emissions and mitigating climate change, this research explores how the blue economy and the transition to renewable energy can contribute to lowering CO2 emissions. This study examines both short- and long-term impacts using the Autoregressive Distributed Lag (ARDL) approach. The findings reveal that while increased aquaculture production initially reduces CO2 emissions due to efficiency gains and environmentally friendly technologies, its long-term effects are more complex and may lead to higher emissions. On the other hand, renewable energy consumption significantly reduces CO2 emissions in the short and long term. Conversely, higher energy intensity contributes to increased CO2 emissions, which can be mitigated through improved energy efficiency.
Copyright (c) 2024 Xenaneira Shodrokova, Anna Yulianita, Abdul Bashir, Imam Asngari, Ariodillah Hidayat https://creativecommons.org/licenses/by/4.0
The impact of fiscal policy on the underprivileged population in Indonesia
This study examines the impact of government spending across various sectors on poverty in Indonesia, motivated by the need to understand how fiscal policies affect the well-being of people experiencing poverty. Using Ordinary Least Square (OLS) and Least Square Dummy Variable (LSDV) models, the findings reveal that government spending on public services, health, education, and social protection significantly affects the number of poor people. However, spending on public services and education shows a positive coefficient, which may result from mandatory spending regulations not directly aimed at improving welfare. In contrast, government spending in the economic sector has an insignificant impact on poverty, indicating that the effects may require more than one period to manifest. Further analysis is necessary to explore this relationship. The consistency of the results was enhanced by incorporating district/city status as a predictor. These findings highlight the need for a more targeted approach to government spending to reduce poverty in Indonesia effectively.
Copyright (c) 2024 Andrianus Damai, Yesi Aprianti https://creativecommons.org/licenses/by/4.0
ICT expansion and human development: Empirical evidence from Indonesia
Human development is a central focus and objective for countries worldwide. Comprehensive human development is reflected in rising living standards and easier access to essential services like education and health. Accelerating human development requires adopting technology, particularly ICT (Information and Communication Technologies), which is increasingly utilized by societies. The main objective of this study is to estimate the impact of ICT Skills, ICT Access, domestic investment, and the democracy index on the Human Development Index (HDI) using provincial-level data in Indonesia. The study employed panel data from 34 provinces from 2016-2022. Based on the Chow and Hausman test results, the fixed effect model was the best fit compared to the common and random effect models. The findings demonstrate that ICT Skills and ICT Access significantly positively affected human development throughout the research period, with their coefficients being almost equal. This highlights the rapid advancement of ICT and its vital role in the lives of the Indonesian population. The results further revealed that democracy was insignificant, while domestic investment positively and significantly impacted human development. Based on these findings, ICT development policies are essential, particularly in investment, infrastructure improvement, and the effective implementation of ICT initiatives. The use of ICT should be tailored to each province's unique characteristics and potential to promote equality and reduce disparities. A key recommendation from this study is the adoption of ICT in societal activities to enhance equality across all regions of Indonesia.
Copyright (c) 2024 Vita Katika Sari https://creativecommons.org/licenses/by/4.0
Determinants of Sustainable Development Goals (SDGs) in Indonesia: Mapping with Cartesius Diagram
This research aims to explore the long- and short-term relationships and the quality of interactions between variables within the framework of the Sustainable Development Concept, focusing on the social aspect (Human Development Index), economic aspect (economic growth), and environmental aspect (Environmental Quality Index) in the context of reducing poverty rates in Indonesia. The methodology employed is the Panel Vector Error Correction Model (P-VECM) analysis for panel data, combining time series (2010-2022) and cross-section data (34 provinces in Indonesia), along with a Cartesian diagram to identify which provinces have the greatest potential for achieving evenly distributed SDG progress. The results show that the Granger causality test reveals no one-way or two-way causal relationships or interactions between the human development index, economic growth, and environmental quality index. In the long-term analysis, only the human development index significantly impacts poverty, with a negative correlation. In contrast, economic growth and the environmental quality index do not have a long-term relationship with Indonesia's poverty levels. These findings suggest that improving the quality of education, healthcare, and living standards in the long term can effectively reduce poverty, especially in Indonesia. Pro-poor government policies are crucial to prevent widening inequality and ensure that economic growth benefits the upper class and the lower and middle classes through more equitable income distribution.
Copyright (c) 2024 Azwardi Azwardi, Sukanto Sukanto, Siti Rohima https://creativecommons.org/licenses/by/4.0
The effect of partnership and information and communication technology (ICT) capability on competitive advantage through entrepreneurial marketing: a study on culinary sector SMEs in Batam City
This study analyzes the influence of partnership and Information and Communication Technology (ICT) capability on competitive advantage through entrepreneurial marketing. The research employs a quantitative approach with descriptive analysis, involving data collected through questionnaires, interviews, and observations from 56 culinary sector SMEs in Batam City. The data analysis technique used is Structural Equation Modeling-Partial Least Square (SEM-PLS). The results indicate that partnership and ICT capability positively and significantly affect entrepreneurial marketing, enhancing coordination and technology usage among SMEs. However, these variables do not significantly impact competitive advantage directly. On the other hand, entrepreneurial marketing demonstrates a positive and significant influence on competitive advantage, highlighting the importance of strong customer relationships and high-value product creation. Additionally, ICT capability significantly influences competitive advantage through entrepreneurial marketing, emphasizing the role of technology in enhancing business flexibility and marketing capabilities.
Copyright (c) 2024 Asmaul Husna, Raja Ainaya Alfatiha, Arianis Chan, Anang Muftiadi https://creativecommons.org/licenses/by/4.0
Public expenditure and performance of the agricultural sector: evidence from Sri Lanka
This study investigates the influence of agricultural public expenditure on the performance of Sri Lanka's agriculture sector. Utilizing data sourced from the annual reports of the Ministry of Finance spanning 2011 to 2022, the findings reveal a significant and positive correlation between the recurrent expenditure of the Department of Agriculture (DoA) and the gross domestic production of the agriculture sector (p < 0.01). However, no statistical evidence supports a significant relationship between the Ministry of Agriculture's (MoA) capital expenditure and DoA and the performance of the agriculture sector. These results underscore the pivotal role of public recurrent agricultural expenditure in bolstering the agriculture sector's performance. Particularly noteworthy is the significant impact of DoA's recurrent expenditure on sectoral performance. The study advocates for increased budget allocation towards recurrent expenditure within the agriculture sector, especially emphasizing the importance of augmenting the DoA's recurrent expenditure to ensure enhanced performance and sustainability. Ultimately, the study underscores the critical importance of effective and efficient management of public funds in driving the agriculture sector's performance.
Copyright (c) 2024 Anojan Vickneswaran https://creativecommons.org/licenses/by/4.0
Human resource development: enhancing entrepreneurial potential in MSMEs
This study aims to explore the role of micro, small, and medium enterprises (MSMEs) in human resource development by enhancing entrepreneurial potential. Qualitative data were obtained using a descriptive exploratory approach from in-depth interviews with 41 MSME actors assisted by the Jambi City Manpower, Cooperatives, and Small and Medium Enterprises Office during managerial and technical guidance in 2023. The data were analyzed thematically and narratively to capture respondents' views and reasons. The study identifies various aspects of MSMEs, including business types, ideals, vision, mission, goals, sources of ideas, creativity and innovation, threats, strengths, weaknesses, and opportunities. It also examines the impact of education and training on human resource development and entrepreneurial potential. The findings indicate that MSMEs leverage diverse sources of ideas and exhibit significant creativity and innovation to adapt to business trends. However, further studies are needed to measure the long-term impact of human resource development. Additionally, the study calls for examining external factors such as government policies, market conditions, and technological advancements that influence human resource development and entrepreneurial potential in MSMEs.
Copyright (c) 2024 Sry Rosita, Husni Hasbullah, Syahmardi Yacob https://creativecommons.org/licenses/by/4.0
Predicting future inflation in Indonesia using Dynamic Model Averaging (DMA)
The features of Indonesia's inflation data, which make it extremely susceptible to shocks like those felt in 2005 and 2008, as well as extensive potential influencing factors, lead to problems in forecasting inflation. These problems include time variation in coefficients, models that can change over time, and many predictors to consider. Dynamic Model Averaging (DMA) solves these problems since it has evolved coefficients and models that change over time. This study uses DMA to predict future inflation by involving eight macroeconomic indicators as exogenous variables. The results of the in-sample analysis show that six predictors are significant in forecasting inflation, with posterior inclusion probability (PIP) being above 40%. Although the remaining predictors have PIP means below 40%, they can still be considered important. The out-of-sample results suggest that DMA performs better than dynamic model selection and models that don’t include exogenous variables, such as autoregressive models. The forecast results indicate a consistent pattern over the 12 months studied. The attempt to control inflation can be achieved by prioritizing the money supply factor, which has the highest PIP value, indicating that it is the most important factor.
Copyright (c) 2024 Shania Puspita Sari, Irlandia Ginanjar, Lienda Noviyanti https://creativecommons.org/licenses/by/4.0
Competitiveness and Logistics Performance Index: How does the infrastructure pillar perform in ASEAN countries?
This paper examines the impact of strategic sub-components of the Global Competitiveness Index (GCI) on the Logistics Performance Index (LPI), positing a correlation between the LPI and selected GCI factors, specifically within the infrastructure domain—namely, the indicators of Road Quality, Rail Service Efficiency, Port Efficiency, Air Transport Efficiency, and Electrification. The objective is to identify which indicators within the infrastructure sector most significantly affect the Logistics Performance Index. In this study, the LPI is the dependent variable, while the five previously mentioned competitiveness indicators act as independent variables. Top of Form A panel data regression analysis was employed to evaluate how these independent variables influence the dependent variable. The data for this study were derived from the World Bank, specifically the LPI of the World Bank and the World Economic Forum, covering countries in the ASEAN region from 2012 to 2020. The findings indicate that, among the five indicators, Port Efficiency significantly impacts the Logistics Performance Index in the ASEAN region. Furthermore, both Air Transportation Efficiency and Electrification significantly influence the Logistics Performance Index. Conversely, Road Quality and Rail Service Efficiency do not significantly affect the Logistics Performance Index in the ASEAN region.
Copyright (c) 2024 Azwardi Azwardi, Luk Luk Fuadah, Ahmad Syathiri https://creativecommons.org/licenses/by/4.0
Unveiling external debt dynamics: Interdependencies of macroeconomic variables in ASEAN-7
This study explores the interplay between external debt, infrastructure investment, epidemic response funding, net exports, and the consumer price index (CPI) in seven ASEAN countries—Indonesia, Myanmar, Thailand, Cambodia, Laos, the Philippines, and Vietnam—during the period from 2000 to 2020. Data were derived from the World Bank, OECD, and IMF. This research uses the autoregressive distributed lag model (ARDL) panel data approach to estimate the short-term and long-term relationships among the variables. Short-term results reveal that infrastructure investment, epidemic response funding, net exports, and the CPI do not significantly impact external debt. However, in the long-term analysis, epidemic response funding, net exports, and the CPI positively affect external debt. These findings have significant implications for policymakers in developing countries, especially within the ASEAN region.
Copyright (c) 2024 Sukanto Sukanto, Azwardi Azwardi, Mukhlis Mukhlis, Dirta Pratama Atiyatna, Hamira Hamira https://creativecommons.org/licenses/by/4.0
Epistemological criticism of the concept of individualism in conventional economies
This research critically examines the epistemology surrounding the concept of individualism within conventional economics, focusing on elucidating the influence of non-economic factors—namely culture, social norms, and collective psychology—on economic decision-making processes. This study endeavors to uncover the role of these factors in individual economic decisions by employing a methodology rooted in analyzing economic and sociological literature. The findings shed light on the discordance between the traditional notion of individualism and the multifaceted realities of contemporary society, where culture, social norms, and collective psychology significantly shape economic behaviors and preferences. By providing nuanced insights into how these non-economic factors impact individuals' economic choices and actions, this research underscores the imperative for a broader, more inclusive perspective within economic paradigms. This study contributes to a richer comprehension of the complexities inherent in individual economic decisions when viewed against non-economic influences.
Copyright (c) 2024 Frederic Nalle, Munawar Ismail https://creativecommons.org/licenses/by/4.0
Navigating workplace conflict in diverse academic settings: The roles of core self-evaluation and emotional intelligence in strengthening regional higher education
This study examines the direct effects of core self-evaluation (CSE) and emotional intelligence (EI) on workplace conflict while exploring the mediating role of perceived workplace diversity. Grounded in organizational psychology and contextualized within a regional Indonesian university, the research adopts a quantitative design, utilizing structured questionnaires administered to 94 academic staff members at Universitas Jambi. The findings indicate that neither CSE nor EI has a statistically significant direct effect on workplace conflict. However, EI is positively associated with diversity perception, which in turn significantly increases relational, task, and process conflict—demonstrating a mediated effect. In contrast, diversity does not mediate the relationship between CSE and conflict. These results reveal the complex interplay between individual psychological resources and organizational diversity in shaping interpersonal dynamics within higher education. The study highlights the importance of context-sensitive institutional strategies, including the integration of emotional intelligence training and inclusive workplace policies, in effectively managing diversity and mitigating conflict. It contributes to the broader discourse on academic workplace behavior by highlighting how personal dispositions and structural diversity jointly influence conflict outcomes, particularly within regional universities engaged in local development.
Copyright (c) 2024 Sry Rosita, Musnaini Musnaini, Dian Mala Fithriani Aira, Feny Tialonawarmi https://creativecommons.org/licenses/by/4.0
The dynamics of Long-Acting Reversible Contraception (LARC) choices in rural Jambi: Socio-economic perspectives
High population growth without concurrent improvements in human quality poses significant challenges in promoting equitable welfare across various life aspects. Thus, population control is crucial for achieving sustainable development goals. This study emphasizes the role of Long-Acting Reversible Contraception (LARC) in managing fertility rates and investigates three main components of population growth: fertility, mortality, and migration. The objectives are threefold: 1) Analyze the profile of fertile-age couples using LARC in rural Jambi; 2) Investigate the socio-economic factors influencing the choice between LARC and non-LARC methods among these couples; 3) Explore the relationship between the couples' characteristics and their choice of LARC. Data were collected from a survey of 200 fertile-age couples participating in a family planning program across four villages in Jambi. The analysis utilized descriptive statistics, binary logistic regression, and multinomial logistic regression. Findings indicate that LARC usage among fertile-age couples in rural Jambi is low, at approximately 28% of total contraceptive users, with implants being the most common LARC type. In contrast, non-LARC methods are more prevalent, accounting for 72% of usage, dominated by three-month injectables, followed by pills and male condoms. Significant factors influencing the choice between LARC and non-LARC include the husband's education, the woman's employment status, the number of living children, the disparity between actual and ideal family size, desire for more children, knowledge about contraceptive options, and family income. Furthermore, characteristics significantly related to the choice of LARC methods such as tubal ligation, implants, and IUDs include the woman's age, number of living children, the gap between the ideal and actual number of children, desire for more children, woman's employment status, knowledge about contraceptive devices, and family income.
Copyright (c) 2024 Hardiani Hardiani, Junaidi Junaidi https://creativecommons.org/licenses/by/4.0
Comparative analysis of entrepreneurial intentions among generations in Jambi Province: A study of Gen Bust, Millennials, and iGeneration
In the face of intense global competition, such as the introduction of the ASEAN Economic Community (AEC), the Indonesian workforce must transition from merely seeking employment to creating job opportunities. In this regard, cultivating an entrepreneurial spirit is a strategic alternative to bolster employment prospects and stimulate innovation. This study was carried out in the province of Jambi with the primary objectives of: 1) analyzing the characteristics and entrepreneurial intentions across different generations in Jambi; 2) examining the factors that influence these entrepreneurial intentions. The research compares three generations—Generation Bust (Gen Bust), Millennials, and the iGeneration—all within the productive age bracket and possesses substantial potential to drive development. The research methodology entailed collecting data through surveys administered to individuals from Gen Bust, Millennials, and the iGeneration in Jambi. The data was analyzed using descriptive statistical tools and the Structural Equation Modeling (SEM) technique. The findings reveal notable differences in entrepreneurial intentions among the generations, with Gen Bust and Millennials exhibiting stronger entrepreneurial intentions than iGeneration. Influential factors for these entrepreneurial intentions include attitudinal and contextual elements such as academic, social, and environmental support. Although individual characteristics vary among the generations, they do not consistently exert a direct and significant impact on entrepreneurial intentions, particularly for iGeneration. This research offers crucial insights into how specific factors affect entrepreneurial intentions across different generations, which can assist in developing strategies and policies to foster entrepreneurship in Jambi, especially in light of global and regional economic challenges.
Copyright (c) 2024 Junaidi Junaidi, Hardiani Hardiani, Dwi Hastuti https://creativecommons.org/licenses/by/4.0
Towards inclusive green growth: a holistic analysis of sustainable development goals in the agritourism sector of Jambi Province
This research aims to measure the extent of inclusive green growth in Jambi Province by considering the components of the Inclusive Green Growth Index that contribute to the potential of agrotourism and sustainable growth. It seeks to identify and analyze tourism potentials that can be leveraged to support inclusive green growth in various districts of Jambi Province. Additionally, the study aims to formulate strategies applicable to tourism villages in Jambi Province to realize agrotourism areas focused on improving the well-being of communities and the environment. This research employs both quantitative and descriptive qualitative methodologies. Data sources include primary and secondary data collected through interviews, observations, literature studies, and documentation. Informants were selected using purposive sampling, covering three regencies in Jambi Province: mountainous areas in Merangin Regency, non-mountainous and non-marine areas in Muaro Jambi Regency, and marine areas in Tanjung Jabung Timur Regency. The results indicate that Jambi Province has not yet achieved green inclusivity, with an Inclusive Green Growth Index value of 3.191. The study identifies several sample areas with green development potential, including Rantau Kermas Village in Merangin Regency, Tangkit Baru Village in Muaro Jambi Regency, and Kuala Simbur Village in Tanjung Jabung Timur Regency. Key findings include the green potential of tourism and plantations, dance arts, micro-hydropower plants (PLTMH), electricity, awards, funding, fishermen, locations, culinary, mangrove forests, customary forests, and marine products. Strategies to realize agrotourism areas based on improving community well-being and the environment include strengthening organizations, enhancing the quality of human resources, developing infrastructure, funding programs, applying customary law sustainability, offering tour packages, forming customary forest management groups, conducting research and development, implementing disaster mitigation measures, promoting tourism, and initiating the adopt-a-tree program.
Copyright (c) 2024 Junaidi Junaidi, Zulgani Zulgani, Ilham Wahyudi, Faradina Zevaya https://creativecommons.org/licenses/by/4.0
Women's entrepreneurial competence within a patriarchal social system
Women in patriarchal social systems face various challenges that affect their economic access and hinder their empowerment. This research aims to identify the competencies required by women to thrive within a patriarchal social system, reduce gender disparities, and promote empowerment in various aspects of life. This research utilized secondary data from the Scopus database and applied a document study method. Keywords used for the search included "women competence," "women skills," "women entrepreneur skills," "entrepreneurial competencies," and "entrepreneur competence." After filtering, 31 articles were selected for analysis. The analysis used the Miles and Huberman model, including reduction, data analysis, and conclusion. The findings indicate that to address the challenges of patriarchy and achieve empowerment, women need to develop multidimensional competencies involving entrepreneurial skills, commitment, high-level conceptual abilities, recognition of opportunities, organization, relationships, strategic thinking, and marketing. The challenges of norms and gender expectations in patriarchal societies become obstacles that need to be overcome by educating the community about the vital role of women and the competencies required in SMEs (Small and Medium Enterprises). Innovation, creativity, and innovative marketing strategies are key to success, while support and networks from stakeholders can provide valuable boosts.
Copyright (c) 2023 Hilmiana Hilmiana, Devi Alviani https://creativecommons.org/licenses/by/4.0
Designing a sustainability program pathway for the Grinsing weaving industry: a prospective MULTIPOL approach
Grinsing weaving, a traditional art form unique to Bali, represents a significant aspect of the island's cultural heritage. This study aims to analyze the sustainability of the Grinsing weaving industry program by developing scenarios and formulating recommendations. Primary data were collected through surveys and Focus Group Discussions (FGDs) with 19 craftsmen and stakeholders. The MULTIPOL approach was employed for the analysis. The results indicate that the sustainability of the Grinsing weaving industry can be enhanced through policy scenarios focused on strengthening institutions and regulations to protect nature, customs, and culture, as well as developing the skills of craftsmen. This research provides valuable insights for stakeholders in shaping the development policies for the Grinsing weaving industry at the research site.
Copyright (c) 2024 Lilian Avita Sakrianti, Ida Ayu Nyoman Saskara https://creativecommons.org/licenses/by/4.0
How accurate is the CAPM approach compared to the Reward Beta for shares of manufacturing and mining companies in Indonesia's LQ45 Index?
This study evaluates the efficacy of the Capital Asset Pricing Model (CAPM) and Beta Reward Model in forecasting stock returns of companies within the manufacturing and mining sectors listed on Indonesia's LQ45 index. Utilizing monthly closing stock prices from January 2010 to December 2019, the research focuses on ten companies—five from each sector—that consistently appeared in the index throughout the study period. The analysis involves a classic assumption test followed by regression analysis for each company. Key performance indicators, including R-squared, Root Mean Square Error (RMSE), and Mean Absolute Error (MAE), are employed to compare the predictive capabilities of the CAPM and Beta Reward Model. The findings indicate a systematic and superior performance of the Beta Reward Model over the CAPM in predicting stock returns in the Indonesian context. This study contributes to the existing literature on stock return prediction models and provides practical insights for investors and financial analysts in Indonesia.
Copyright (c) 2023 Handri https://creativecommons.org/licenses/by/4.0
Empowering housewives through green marketing: Fostering eco-friendly household products for sustainable consumption
The escalating concern over the green gap phenomenon, which underscores a discord between consumers' environmental concerns and purchasing behaviours, has accentuated the importance of exploring eco-friendly consumption patterns. This study delves into the multifaceted factors influencing the purchasing behaviour of eco-friendly household products, focusing on the dynamic interplay among consumer knowledge, values, subjective norms, and perceived behavioural control. Specifically, it aims to elucidate how these variables collectively inform housewives' attitudes towards eco-friendly products and purchasing behaviours. The research gathered data from 300 respondents across Jambi City and Sungai Penuh City within Jambi Province, employing principal component analysis and structural equation modelling to scrutinize the hypothesized relationships between the constructs. The findings underscore consumer values, subjective norms, and perceived behavioural control significantly and positively influence consumer attitudes towards eco-friendly household products. Moreover, a pronounced positive correlation between consumer attitudes and eco-friendly purchasing behaviour was identified, whereas the impact of consumer knowledge on consumer attitudes emerged as negligible. This research enriches the theoretical discourse on eco-friendly purchasing behaviour, particularly concerning household products. It offers critical insights for marketers, policymakers, and environmental advocates aiming to foster sustainable consumption practices by pinpointing the pivotal factors that shape consumer attitudes and behaviours. Additionally, the study lays a robust groundwork for subsequent research endeavours to bridge the green gap and advance environmental sustainability through enlightened consumer decisions.
Copyright (c) 2024 Yayuk Sriayudha, Ade Octavia, Johannes Simatupang, Tona Aurora Lubis https://creativecommons.org/licenses/by/4.0
Can fiscal transfers effectively reduce poverty in the Gorontalo Province?
The central government has increasingly diversified and expanded fiscal transfers to local authorities to enhance community welfare rapidly. However, in Gorontalo, although poverty rates have declined, the pace of reduction has slowed despite an increase in the value of transfers. This study aims to identify the fiscal transfer mechanisms most effective in reducing Gorontalo's poverty rate. It focuses on several types of fiscal transfers, including the Special Allocation Fund (DAK), Village Fund Allocation (ADD), Family Hope Program (Program Keluarga Harapan, PKH), Smart Indonesia Program (Program Indonesis Pintar, PIP), and Social Assistance. Utilizing panel data regression analysis covering all six districts/cities in Gorontalo Province over the last five years (2018-2022) and employing the Fixed Effects Model (FEM), the findings suggest that PIP assistance has the most significant impact on poverty reduction, although its effects are more long-term. Moreover, the study finds that while ADD transfers notably enhance community welfare, the two-decade-long DAK transfers have inadvertently worsened poverty levels in Gorontalo. This issue stems from the DAK's allocation formula, which does not directly target the income improvement of low-income populations. Both PKH and Social Assistance have shown little positive effect on poverty alleviation in the region. Consequently, the study recommends that the government prioritize expanding and funding enhancement of PIP assistance, considering many underprivileged individuals remain unreached by this support. Additionally, it suggests increasing the ADD to accelerate development in poverty-stricken rural areas.
Copyright (c) 2024 Muhammad Amir Arham, Wahyudin Humalinggi, Rezkiawan Tantawi, Citra Aditya Kusuma https://creativecommons.org/licenses/by/4.0
Impact of trade facilitation on intra-manufacturing export among ECOWAS member states
This study investigates the effects of trade facilitation policies on intra-manufacturing exports among ECOWAS member states. Utilizing the Generalized Method of Moments (GMM) linear model, this research analyzes data from 2015–2020 for the ECOWAS member states. The findings reveal that trade facilitation policies in the ECOWAS region fall below the global average. This discrepancy is primarily due to the extensive bureaucratic processes in the region, leading to increased costs for exporting and importing goods. Consequently, there is a significant need for trade facilitation to enhance intra-manufacturing exports within ECOWAS. Based on these insights, the study recommends several policy interventions to improve trade flow and bolster intra-manufacturing exports in the ECOWAS region. These include a stronger commitment to trade agreements among ECOWAS member states, the adoption of information and communication technology (ICT) to streamline trade processes and reduce bureaucratic delays associated with document processing for exports and imports, the strengthening of institutional frameworks within the member states, and the formulation of policies aimed at increasing industrialization levels to enhance manufacturing exports throughout the ECOWAS region.
Copyright (c) 2024 Olure-Bank Adeyinka, Mustapha Muktar, Saheed , Alexander Abraham, Alfa Yakubu https://creativecommons.org/licenses/by/4.0
Infrastructure and economic growth in ECOWAS member states: The Westerlund co-integration approach
This research explores the impact of infrastructure on member states' economic growth in the Economic Community of West African States (ECOWAS). Utilizing panel secondary data sourced from the World Bank Development Indicators (WDI) and the African Infrastructure Development Index (AIDI) across all fifteen ECOWAS Member States over eighteen years, the study employs the panel Non-linear Autoregressive Distributed Lag (NARDL) model and the Westerlund co-integration test for analysis. The findings reveal that investments in infrastructure, improvements in the African Development Index, and enhancements in the Electricity Composite Index significantly contribute to the economic growth of ECOWAS countries. Specifically, infrastructure investment is associated with a 0.01 per cent increase in the Gross Domestic Product (GDP) of the ECOWAS countries studied. In comparison, the African Development Index and the Electricity Composite Index are linked to increases in GDP by 0.292 per cent and 0.987 per cent, respectively, in the long term. Based on these outcomes, the study recommends that ECOWAS country authorities enhance policies to optimize government spending on infrastructure quality. Furthermore, adopting quality-enhancing and efficiency-driven financing policies in infrastructure is advocated to complement ECOWAS's ongoing infrastructural development efforts. The realization of these recommendations hinges on the availability of accurate data for informing decisions and guiding policymakers. Hence, the study underscores the need for the ECOWAS Commission to bolster its capacity for collecting reliable data on infrastructure variables and other indicators. It also proposes that future research should focus on promoting sub-regional peer-review mechanisms for infrastructure indicators among member states and establishing structures to fortify infrastructure in West Africa.
Copyright (c) 2024 Fadila Kabir Usman, Saheed Zakaree, Mustapha Muktar, Alfa Yakubu, Adeyinka Olure-Bank https://creativecommons.org/licenses/by/4.0
Development strategies for creative small and medium enterprises (SMEs): A Quintuple Helix Model approach to support smart city initiatives
This study explores the development of Creative Small and Medium-Sized Enterprises (SMEs) in the food, textile, and handicraft sectors in Jambi City, employing the quintuple helix model to align with the Smart City concept. The research gathered primary data through surveys, interviews, and focused group discussions (FGDs). The study encompassed a diverse range of stakeholders from the specified sectors, with a sample size of 100 individuals. A mixed-method research approach was adopted, integrating both qualitative and quantitative methods. Analytical tools such as the Likert scale, SWOT analysis, and the quintuple helix model were employed for data analysis and interpretation. The findings reveal that many participants in these sectors were women, predominantly with high school-level education. The age group of 46-55 years was most represented among the respondents. Notably, the food sector emerged as the dominant industry among the studied SMEs, attributed to its relative ease of establishment and cost-effectiveness compared to the textile and handicraft sectors. The study also examined the perceptions of the roles of quintuple helix actors (government, academia, industry, society, and social environment) in the development of these SMEs. The findings indicate a generally positive perception, suggesting effective fulfillment of roles by these actors. This collaborative effort within the quintuple helix framework has positively impacted the development of creative SMEs in Jambi City, contributing significantly to the Smart City initiative. The study underscores the importance of such collaboration in fostering the growth and sustainability of creative SMEs in the context of urban development.
Copyright (c) 2023 Dahmiri Dahmiri, Idham Khalik, Rizky Azika Ramadhan https://creativecommons.org/licenses/by/4.0
The influence of financial development on total fertility rate in Indonesia
This study investigated the impact of financial development on the total fertility rate in Indonesia, hypothesizing that financial development significantly influences fertility rates. The objective was to ascertain the effects of financial development on Indonesia's total fertility rate, utilizing annual time series data from 1980 to 2021 obtained from the official websites of Bank Indonesia, the Central Bureau of Statistics, and the World Bank. The analysis employed the Autoregressive Distributed Lag (ARDL) method to examine the influence of the money supply in circulation (M2), Gross Domestic Product, and household consumption on the total fertility rate, with these variables serving as proxies for financial development. The study utilized a comprehensive data analysis approach, including stationary tests, cointegration bound tests, ARDL Model analysis for long-term and short-term effects, and classical assumption tests. The findings revealed that the money supply (M2) has a negative and significant impact on the total fertility rate, the Gross Domestic Product also negatively and significantly affects the total fertility rate, while household consumption positively and significantly influences the total fertility rate. These results underscore the multifaceted relationship between financial development and fertility trends in Indonesia.
Copyright (c) 2024 Rosa Afriska, Ris Yuwono Yudo Nugroho https://creativecommons.org/licenses/by/4.0
How liquidity, profitability, and leverage ratios influence financial distress: A study on Indonesian mining firms
This study investigates the impact of liquidity, profitability, and leverage ratios on financial distress in mining companies listed on the Indonesia Stock Exchange. It posits that higher liquidity in a company correlates with reduced financial distress. The research encompasses eight mining companies observed from 2016 to 2020. Purposive sampling was employed to select a sample of eight companies meeting specific criteria. The study utilizes multiple linear regression analysis as its analytical approach. The findings, significant at the 5% level, reveal that liquidity, profitability, and leverage ratios collectively exert a substantial influence on financial distress, accounting for 85.3% of the variance in the dependent variable. Specifically, the study concludes that: 1) Liquidity has a significant negative effect on financial distress, 2) Profitability also demonstrates a significant negative impact on financial distress, and 3) Leverage exhibits a significant positive effect on financial distress.
Copyright (c) 2023 Arifuddin Arifuddin, Erwin Hadisantoso, Ika Maya Sari, Annisa Fitrah Yulianti https://creativecommons.org/licenses/by/4.0
Building a financial inclusion index and analyzing its impact on unemployment
Financial inclusion has garnered attention from policymakers globally due to its potential to spur economic growth, alleviate poverty, and decrease unemployment. This study focuses on estimating the financial inclusion index across ten Southeast Asian countries utilizing principal component analysis. The objective is to identify the most representative index capable of accurately reflecting the financial inclusion indicators specific to each country. Additionally, the research seeks to explore the impact of financial inclusion on the unemployment rate. Data spanning from 2011 to 2021 were sourced from the World Bank. By employing panel regression estimation, the study reveals that digital financial inclusion does not significantly influence the unemployment rate, as indicated by a significance value of 0.118. Furthermore, a similar lack of impact was observed concerning GDP. Conversely, the inflation rate and education level variables affected the unemployment rate significantly, with significance values of 0.028 and 0.021, respectively. These empirical results suggest that policymakers should implement strategies to enhance financial inclusion, such as reducing the costs associated with financial services, offering incentives to the informal sector, and promoting education on the significance of financial instruments and institutions.
Copyright (c) 2023 Yollit Pertama Sari, Isra Yeni, Dewi Pebriyani, Urmatul Uska Akbar, Hari Setia Putra, Dwi Rani Puspa Artha https://creativecommons.org/licenses/by/4.0
Analyzing poverty levels and welfare: Does cigarette consumption and spending on regional functions have an impact?
In numerous developing nations, the impact of cigarette consumption on poverty often goes unnoticed by policymakers. This study endeavours to explore the correlation between household expenditure on cigarettes and levels of poverty and welfare. Beyond household spending, it also investigates the influence of regional functional expenditures and the prevalence of open unemployment on poverty and welfare. The examination encompasses 100 regencies and cities across three provinces: East Java (38 regencies and cities), West Java (27 regencies and cities), and Central Java (35 regencies and cities). Utilizing secondary data from the Central Statistics Agency (BPS) and the Ministry of Finance of the Republic of Indonesia, collected in 2021, employing a cross-sectional approach, this study employs multiple linear regression analysis via the Stata 17 program to discern the impact of various factors, including household spending, regional functional spending, and control variables, on poverty and welfare. The findings reveal that household cigarette consumption significantly exacerbates poverty, indicating that an increase in such consumption escalates poverty rates. Conversely, the second estimation model demonstrates that increased household expenditure on cigarettes significantly diminishes welfare levels, underscoring the adverse impact of heightened smoking consumption on overall welfare.
Copyright (c) 2023 Jamhul Haer, Sarjiyanto Sarjiyanto https://creativecommons.org/licenses/by/4.0
The effect of economic growth and poverty on stunting in Indonesia
Stunting is a critical issue affecting children under five years old, characterized by inadequate growth due to chronic malnutrition and recurrent infections, especially during the crucial first 1,000 days of life (from age 0 to 23 months). Stunting impacts not only height but also vital functions such as brain development and the immune system, potentially leading to decreased intelligence levels and increased susceptibility to diseases later in life. This study examines the impact of the growth of the Gross Regional Domestic Product (GRDP) in the primary, secondary, and tertiary sectors and the level of rural poverty on stunting in Indonesia. This research, which covers time series data from 2015-2020 across 32 provinces in Indonesia, employs a panel data regression model analysis method. The findings indicate that primary sector GRDP growth has a positive effect, whereas secondary sector GRDP negatively impacts stunting. However, the tertiary sector GRDP and rural poverty do not significantly affect stunting rates in Indonesia.
Copyright (c) 2024 Jumhur Jumhur https://creativecommons.org/licenses/by/4.0
The impact of credit risk on market discipline: Exploring the moderating role of corporate governance through Generalized Method of Moments (GMM) analysis in banking companies
High credit risk poses a significant threat to banks, underscoring the necessity to examine the effectiveness of good corporate governance in mitigating such risks. This study aims to assess the impact of credit risk, represented by non-performing loans (NPLs), on market discipline, reflected through deposit growth, and the moderating role of good corporate governance, focusing on board size and institutional ownership, in this dynamic. Data for the study were sourced from the financial reports of banking companies on their official websites, IDN Financial, and the Indonesia Stock Exchange. The study used a purposive sampling method to analyze a sample comprising 30 banking companies and yielded 300 observations. The research methodology involved dynamic panel regression analysis using the Generalized Method of Moments (GMM) technique. The findings reveal that non-performing loans negatively impact deposit growth. However, it was also found that board size and institutional ownership could positively moderate the adverse effects of non-performing loans on deposit growth. This suggests that market discipline, manifesting as a reduction in deposits and an escalation in credit risk within the Indonesian banking sector, can be effectively managed and mitigated through the strategic implementation of good corporate governance practices, particularly by optimizing board size and enhancing institutional ownership. These mechanisms enable more robust market discipline, contributing to better credit risk management and promoting healthier deposit growth.
Copyright (c) 2024 Ahmad Juliana, Najmuddin Najmuddin, Muhammad Tharmizi Junaid https://creativecommons.org/licenses/by/4.0
How do macroeconomic variables and financial inclusion affect financial stability in Indonesia?
Financial stability is a crucial indicator of the financial sector's health, reflecting the system's resilience or vulnerability to crises. This study investigates the impact of macroeconomic variables and financial inclusion on financial stability in Indonesia, utilizing quarterly data from the first quarter of 2012 to the fourth quarter of 2021. Employing the Vector Error Correction Model (VECM), the research examines the influences of these factors in both the short and long term. The findings reveal that macroeconomic variables and financial inclusion significantly affect financial stability in Indonesia across both time frames. Specifically, inflation emerges as a critical factor influencing financial stability in the long term, while interest rates play a pivotal role in the short term. Moreover, financial inclusion, represented by the public's use of banking products and third-party funds relative to Gross Domestic Product (GDP), impacts financial stability both in the long and short term. Conversely, financial inclusion, measured by credit to GDP, exhibits only short-term effects on financial stability. The results underscore the importance of careful consideration by the central bank when formulating monetary policy, particularly regarding interest rate adjustments, due to their immediate impact on financial system stability. Over the long term, maintaining control over inflation rates is imperative to safeguard financial stability. Furthermore, financial institutions, in their role of fostering financial inclusion by distributing credit, must balance the quality of credit with its quantity to avoid negative impacts on the financial system's stability. This study contributes valuable insights for policymakers and financial institutions aiming to bolster Indonesia's financial stability through prudent macroeconomic management and the strategic implementation of financial inclusion initiatives.
Copyright (c) 2023 Firdha Aksari Anindyntha, Muhammad Khoirul Fuddin https://creativecommons.org/licenses/by/4.0
Shifting the paradigm for securing efficient management of exchange rate in Nigeria: A GARCH and BEKK-MGARCH analysis
The influence of foreign exchange on all spheres of any economy is germane to determining its extent of development. Most developing countries have been subjected to managing the integrity of the exchange rate arising from their disadvantageous position in world trade. Nigeria is not an exemption either; this is due to its constant interventions in the foreign exchange market from time to time and by the policy of the existing government in power. However, the interventionist policy framework has been more harmful to Naira as the currency depreciates unabatedly. The pertinent question is whether monetary policy should be the only approach to effective exchange rate management or be combined with fiscal and income policies. Irrespective of the policy choice, the aim, target, and instrument must be complementary without unnecessary disruptions midway, as usually experienced in Nigeria. These inconsistencies have come to bear enormously on the country's exchange rate management. Rather than focusing on the impact of exchange rate volatility on industrial development that could warrant foreign exchange inflows, this paper considers industrialization as an approach to effectively managing exchange rates in Nigeria. This analysis employs a univariate GARCH and BEKK-MGARCH model, using high-frequency monthly time series data from 2000 to 2019, to examine the volatility transmission between the foreign exchange market and the industrial sector. The model estimation uses the Conditional Maximum Likelihood Technique (CMLT). It was discovered that industrial development positively influenced the official market exchange rate compared to the parallel market exchange rate, reducing its volatility. The study thus suggests the vigorous pursuit of foreign exchange earnings and usage policy by earning entities, floating Diaspora bonds, enhancing and encouraging remittances and repatriation of illicit financial outflows to enhance industrialization. This will discourage arbitraging, increasing foreign exchange inflows and stabilizing the economy.
Copyright (c) 2023 Kolawole Subair https://creativecommons.org/licenses/by/4.0
A Sustainable model for community-based tourism in the Muaro Jambi Temple Area, Jambi Province
This study investigates community participation concerning the potential and benefits of the Muaro Jambi Temple tourism area, identifying key success factors in community-based tourism (CBT). Employing Structural Equation Modeling-Partial Least Square (SEM-PLS) analysis on primary data, this research combines descriptive and quantitative approaches. The findings reveal that variables related to interest, opportunity, and innovation significantly and directly impact economic conditions, while environmental factors notably influence social conditions. In contrast, cultural and political variables do not significantly affect social conditions. Both economic and social factors significantly influence CBT participation. Indirect effects analysis shows that interest, opportunity, innovation, and environmental factors significantly influence CBT participation, whereas cultural and political variables do not exhibit significant indirect effects. Moreover, over 95% of the communities in the villages surrounding Muaro Jambi Temple perceive the basic principles of CBT positively, with 85% recognizing the potential and benefits of supporting the CBT model. These results underscore the importance of fostering interest, opportunity, and innovation to enhance economic conditions and community participation in CBT initiatives.
Copyright (c) 2024 Zulfanetti Zulfanetti, Heriberta Heriberta, Etik Umiyati, Jurnia Minati https://creativecommons.org/licenses/by/4.0
Food security and economic coping strategies among fishing households: Insights from Tanjung Jabung Timur and Tanjung Jabung Barat, Jambi Province
This study aims to: 1) Analyze the socioeconomic characteristics and economic coping strategies of fishing households in Tanjung Jabung Timur and Tanjung Jabung Barat; 2) Assess the level of food security among fishing households in these districts; 3) Examine the influence of socioeconomic characteristics and economic coping strategies on the food security of fishing households in Tanjung Jabung Timur and Tanjung Jabung Barat. Data were collected through surveys in four sample villages across the two districts. Descriptive statistics, difference tests, and Structural Equation Modeling (SEM) were employed as analytical tools. The findings indicate that economic coping strategies among fishing families, in terms of active income-generating strategies, are categorized as low. In contrast, passive strategies related to cutting back expenses are considered moderate. Overall, the level of food security among fishing households is relatively good. Furthermore, the food security level of fishing households is significantly influenced by family characteristics and coping strategies. Coping strategies directly impact and act as intervening variables between family characteristics and food security.
Copyright (c) 2023 Junaidi Junaidi, Amril Amril, Hardiani Hardiani https://creativecommons.org/licenses/by/4.0
The impact of final demand on energy sectors' interregional output
This study investigates the influence of aggregate demand on the interregional energy sector in Indonesia, aiming to ascertain whether the proximity of regions impacts the demand within the energy sector. Utilizing data from the Input-Output Indonesia Interregional Table, this research encompasses six regions: Sumatra, Java, Bali & Nusa Tenggara, Kalimantan, Sulawesi, and Maluku & Papua. The energy sectors analyzed include oil, gas & geothermal mining, coal & lignite mining, coal industry & oil, gas refinery, and electricity and gas procurement & ice production. Findings indicate that the electricity sector exhibits relatively high sensitivity and dispersion power indices, whereas the gas procurement & ice production sectors display low sensitivity and dispersion power indices. Exports are identified as the primary contributors to the Oil, Gas, & Geothermal Mining and Coal & Lignite Mining sectors. Conversely, household consumption has the most significant impact on the other sectors. Crucially, the study reveals that the effect of a region's final demand on the output of another region is not directly correlated with geographical proximity. This insight leads to the recommendation that energy supply procurement policies should consider other regions' demands and economic developments, particularly those substantially influencing output enhancement.
Copyright (c) 2023 Ernawati Ernawati, Muhammad Natsir, Mansyur Asri https://creativecommons.org/licenses/by/4.0
Strategic enhancement of motor vehicle taxation in Jambi Province: A pathway to strengthened regional fiscal autonomy
This research aims to develop strategies for boosting motor vehicle tax revenue in Jambi Province. It employs a combination of secondary and primary data, including a time series analysis from 2007 to 2021. The data covers the number of vehicles, the average motor vehicle tax, and revenue realization in Jambi Province. Primary data were gathered from in-depth interviews with experts in local taxation. The study employs descriptive analysis and a SWOT approach for analytical depth. Findings reveal a consistent increase in two- and four-wheeled vehicles from 2017 to 2021 in Jambi Province, potentially signalling economic growth or shifts in mobility patterns. A critical insight from this study is the notable disparity between the rising number of vehicles and the corresponding realization of tax revenue. Specifically, the average tax revenue realization for two-wheeled vehicles during this period was just 25.03 per cent, and for four-wheeled vehicles, approximately 62.30 per cent. The study highlights the crucial role of enhancing Original Regional Revenue (PAD) through motor vehicle taxes as a key strategy to lessen dependence on central funding. It suggests implementing public education initiatives, enhancing public transportation service quality, and reinforcing taxpayer compliance as effective strategies to achieve this goal.
Copyright (c) 2023 Zamzami Zamzami, Dahmiri Dahmiri, Helen Parkhurst https://creativecommons.org/licenses/by/4.0
Unraveling the impact of public debt on economic dynamics in Southeast Asia: A vector analysis perspective
This research employs a panel vector model to analyze panel data, examining the relationship between public debt, economic growth, interest rates, consumption, and net exports in Southeast Asia from 1990 to 2020. This quantitative study focuses on vector analysis using secondary data from the World Bank for the specified period. The findings reveal that public or state debt significantly inhibits most economic variables, suggesting a detrimental impact on Southeast Asia. A notable observation is the effect of rising interest rates on net exports, highlighting how increased rates hinder the exports of ASEAN member countries. Contrary to expectations, the analysis indicates that government spending escalates public debt. Furthermore, Southeast Asian consumption appears to bolster exports through international trade agreements. Interestingly, exports are found to increase government spending, implying a contribution to state revenues. A key finding is that economic growth, marked by GDP increases, positively influences all variables in this study, signifying that GDP growth spurs both the monetary and real sectors of the Southeast Asian economy.
Copyright (c) 2023 Sebastiana Viphindrartin, Eny Lestari Widarni, Regina Niken Wilantari, Markus Apriono, Suryaning Bawono https://creativecommons.org/licenses/by/4.0
Examining growth centers and agricultural base commodities to enhance regional development in Tanjung Jabung Barat Regency, Jambi Province
Determining growth centers and agricultural base commodities is essential for optimizing economic development and achieving economic equality in the Tanjung Jabung Barat Regency area. This study aimed to identify sub-districts that could become growth centers, establish agricultural commodities based in each Tanjung Jabung Barat Regency sub-district, and examine interactions between growth centers and surrounding areas. Three methods employed in this research include Scalogram analysis, Centrality Index, Location Quotient, and Dynamic Location Quotient. Based on the Scalogram analysis and Centrality Index results for the 13 Tanjung Jabung Barat Regency sub-districts, four sub-districts were identified as potential growth centers: Tungkal Ilir, Tebing Tinggi, and Merlung. The Tanjung Jabung Barat Regency Government is recommended to establish basic commodity specialization in each sub-district and strengthen inter-regional linkages to accelerate regional economic equity.
Copyright (c) 2023 Erni Achmad, Zamzami Zamzami, Nurul Hariza, I Wayan Suparta, Sony Tian Dhora https://creativecommons.org/licenses/by/4.0
Strategies for economic empowerment via BUMDes: A path to sustainable development in Renah Alai Village
The BUMDes, a village business entity managed by local communities, bolsters local economies and is established based on village-specific needs and potential. While the BUMDes in Renah Alai remains nascent, its contributions to the village's development and local community welfare have been limited. For the enduring success of the community, an empowerment strategy for BUMDes involving the government, village officials, and local stakeholders should accentuate rural local wisdom, encompassing socio-demographic constructs, agricultural enterprises, and village institutional frameworks. This research sought to conceptualize and dissect the paradigm of village economic enhancement via BUMDes in Renah Alai, targeting sustainable village growth. The SWOT-AHP analytical tool was employed, with the AHP approach yielding strategic recommendations through the SWOT matrix. Data was amassed via surveys and comprehensive interviews and processed through Focus Group Discussions (FGD) with pertinent village agencies and officials. The SWOT matrix's cumulative weights revealed that the Weakness-Opportunity strategy matrix was paramount, marking it as a cornerstone for the Renah Alai BUMDes Empowerment roadmap. The SWOT-AHP analysis delineated four pivotal empowerment areas for BUMDes in Renah Alai: 1) Institutional fortification of BUMDes, 2) Human resource quality enhancement, 3) Infrastructure, and 4) Capital acquisition.
Copyright (c) 2023 Etik Umiyati https://creativecommons.org/licenses/by/4.0
The role of bank and startup fintech P2P lending in supporting financial credit for Indonesian farmers
One of the challenges faced by farmers is securing capital for the development of their agricultural businesses. Banks and peer-to-peer (P2P) lending fintech startups employ various business models to assist farmers in obtaining the necessary capital. This study investigates the credit financing schemes available to farmers through banks and P2P lending fintech startups. The research, which utilized a qualitative approach, involved collecting both primary and secondary data. Primary data were gathered through comprehensive interviews with two academic experts in the agricultural business sector and five leaders of agri-tech startup companies. Secondary data included: (1) annual financial reports from BRI, Mandiri, and BNI; (2) statistical reports on P2P lending providers from the Financial Services Authority (OJK); and (3) models of financing schemes for farmers derived from a range of empirical sources. A descriptive analysis was subsequently conducted to explore the various financing schemes available to farmers through banks and P2P lending fintech startups, as well as to assess the performance of these financing programs via data on the rate of non-performing loans (NPLs). The findings indicate that the financing schemes implemented by banks predominantly focus on economic factors to facilitate loan repayment. In contrast, P2P lending fintech startup schemes emphasize both economic and social aspects, including enhancing farmers' knowledge in implementing Good Agricultural Practices (GAP) and improving financial literacy, aiming to ensure smooth loan repayments. Furthermore, the study observed an increase in the value of Non-Performing Loans (NPL) among both banks and P2P lending fintech startups during the Covid-19 pandemic.
Copyright (c) 2024 Subkhi Abdul Aziz, Ria Jayanti, Anggini Dinaseviani https://creativecommons.org/licenses/by/4.0
Determinants of performance improvement of Micro, Small, and Medium Enterprises (MSME) in the border market of North Timor Central District – Timor Leste
This study examines the impact of financial literacy, technological innovation, government support, and subjective norms on the performance of Micro, Small, and Medium Enterprises (MSMEs) in the North Central Timor District (TTU)-Timor Leste Border Market. Furthermore, it seeks to identify appropriate strategies for enhancing MSME performance in this region. Both multiple linear regression analysis and descriptive analysis were employed as research methods. The study population included all MSMEs in the TTU District, totaling 693 entities. The researchers employed a purposive sampling technique based on the Slovin formula, selecting 80 respondents as research samples. The findings indicated that technological innovation, government support, and subjective norms significantly affect MSME performance in the TTU-Timor Leste Border Market. To improve the performance of MSMEs, various strategies can be implemented. These encompass the enhancement of financial literacy through training and mentoring programs, adopting e-commerce within the digital economy, and improving human resource quality and product standards. Other strategies include fostering partnerships among institutions, cultivating an investment-friendly bureaucracy, implementing product labeling, establishing legal business associations, and promoting motivation and self-confidence.
Copyright (c) 2023 Margareta Diana Pangastuti, Frederic Nalle, Bernadus Gawa Rado, Adriana Kolo https://creativecommons.org/licenses/by/4.0
Becoming a viewer again? Optimizing educational tour at IKN Nusantara to encourage community enthusiasm
The scenario of moving the national capital aims to equalize economic growth. In reality, the president of the Republic of Indonesia has chosen Penajam Paser Utara in East Kalimantan as the new national capital (known as IKN Nusantara). Substantively, this program is predicted to have an impact on community empowerment. To stimulate the success of capital city relocation, stakeholder participation is needed, especially local communities using a comprehensive alternative. The primary target of this paper is to channel and expose the culture of East Kalimantan via IKN Nusantara educational tourism. The mixed method approach combines quantitative techniques based on surveys and qualitative techniques through in-depth interviews. As a result, most local people in East Kalimantan are interested in taking part in the IKN Nusantara educational tour with relatively low prices and unique packaging of activities. In particular, the informants desired to be part of IKN Nusantara, including maintaining cleanliness, caring for the environment, promoting educational tours on their social accounts, and actualizing this activity as content creators. The main polemic is that even though they obtain information regarding the IKN Nusantara from various media, they are still confused about the role taken in developing the IKN Nusantara. Therefore, the government's commitment can guarantee local community access as IKN Nusantara partners. Optimism for the future agenda needs to be supported by popular and mutually-adhering policies toward holistic engagement of all stakeholders.
Copyright (c) 2023 Rahmawati Rahmawati, Miftakhur Rohmah, Yana Ulfah, Rina Juwita, M. Fauzan Noor, Zainal Arifin https://creativecommons.org/licenses/by/4.0
Do foreign direct investment, trade and their interactions affect economic growth in Indonesia?
This study examines the direct and indirect impacts of foreign direct investment, exports, and imports on Indonesia's long-term and short-term economic growth. To this end, we used quarterly data for 2005.1–2021.4 sourced from Statistics Indonesia, the Bank of Indonesia, and the Bank of St. Louis. The analytical tools employed were the autoregressive model of the lag distribution (ARDL) and the error correction model (ECM-ARDL). Findings showed that foreign direct investment, exports, and imports directly affected Indonesia's economic growth. However, while the two formers had an impact only in the short run, the latter also did so in the long run. In addition, foreign direct investment also indirectly influenced economic growth through exports in the short and long run, whereas this was not the case with imports. Based on these findings, we argue for policy recommendations. To begin with, the government should encourage foreign direct investment, which may gradually replace imported raw materials with local raw resources, thereby creating an upstream connection while slowing the rate of imports. Furthermore, the government needs to adopt a policy of downstream processing of primary commodities into industrial commodities to increase export value and expand employment opportunities.
Copyright (c) 2023 Heppi Millia; Ernawati Ernawati, Heriberta Heriberta https://creativecommons.org/licenses/by/4.0
Resilience in crisis: economic coping strategies of informal sector households during the COVID-19 pandemic in Jambi City, Indonesia
This study aims to analyze: 1) the socio-economic characteristics of households of informal sector workers in Jambi City; 2) the coping strategies of these households in facing the impacts of the COVID-19 pandemic; 3) the influence of household socio-economic characteristics on the economic coping strategies of informal sector workers in Jambi City. The primary data used in this study were sourced from a survey of households of informal sector workers in Jambi City. The analysis utilized descriptive statistical tools and structural equation modeling (SEM). The findings of the study reveal that: 1) informal sector workers are generally of productive age, with relatively good education, and predominantly engaged in trading and daily wage labor; 2) the COVID-19 pandemic has negatively impacted the social conditions of these households, particularly in terms of income, savings, and non-food expenditures; 3) in the context of economic coping strategies, the strategy of generating additional income is more commonly employed by these households compared to cutting back expenses; 4) the characteristics of the wife and the family significantly influence the coping strategies adopted by households of informal sector workers. In contrast, the characteristics of the household head do not have a significant impact.
Copyright (c) 2023 Junaidi Junaidi, Nyimas Dian Maisyarah, Al Parok Al Parok, Hardiani Hardiani https://creativecommons.org/licenses/by/4.0
Exploring the determinants of NEET youth in Jambi Province: A socioeconomic perspective
This study aims to analyze: 1) the socioeconomic characteristics and NEET (Not in employment, education, or training) status of young individuals in Jambi Province; 2) the determinants influencing the NEET status of young people in Jambi Province. The data utilized in this study is derived from a survey conducted in four sample villages within Jambi Province, consisting of 200 young participants. Descriptive statistical tools, single-frequency and cross-frequency tables, and binary logit regression are employed for analysis. The findings of the study reveal that: 1) NEET youth, when compared to non-NEET youth, tend to be older, have a higher proportion of females, possess higher education levels, are more likely to be married, are predominantly non-migrants, and have fewer siblings or step-siblings; 2) The parents of NEET youth, in comparison to non-NEET youth, generally have higher incomes and predominantly belong to non-Malay ethnicities in Jambi. 3) Factors significantly impacting the categorization of youth as NEET include gender, education, marital status, and parental income.
Copyright (c) 2023 Hardiani Hardiani, Yulmardi Yulmardi, Nyimas Dian Maisyarah https://creativecommons.org/licenses/by/4.0
Assessing consumer empowerment and influencing factors in Central Bangka Regency: a multidimensional approach
The rapid development of trade technology in Indonesia exposes consumers to potential exploitation during purchasing. This study examines consumer empowerment in Central Bangka Regency using primary data from 88 respondents across four districts. The Consumer Empowerment Index (CEI) value of 38.53, classified as "understand," indicates a fundamental grasp of rights and obligations and reveals room for growth in consumer empowerment. The analysis shows higher empowerment during the purchase phase, with informed decision-making and support for local businesses. However, a weakness emerges in the post-purchase phase, as consumers are less likely to voice experiences or criticize unsatisfactory products, potentially impacting product quality and customer satisfaction. Regression analysis reveals that only years of schooling and age significantly influence the CEI, while the location of residence, gender, and income group do not have significant effects. The model's low R-squared value suggests potential refinement through additional variables or research. These findings provide valuable insights for the government and stakeholders to enhance Central Bangka Regency's consumer empowerment. Focusing on increasing consumer awareness and engagement in the post-purchase phase through targeted educational campaigns, consumer rights workshops, and accessible complaint channels is essential. However, it is crucial to recognize that observed associations do not imply causation and further research is required to establish causal relationships and explore other factors contributing to consumer empowerment.
Copyright (c) 2023 Muhammad Faisal Akbar, Devi Valeriani, Panggio Restu Wilujeng, Mustofa Tohari https://creativecommons.org/licenses/by/4.0
Nexus of energy efficiency, carbon emission and economic growth in Nigeria
Given rising temperatures, climate change, the alarming increase in energy demand, and the importance of energy efficiency, there is a need for an increasing review subject matter. In this sense, policymakers develop various measures, including renewable adoption and energy efficiency. This study examined the causal effect of oil production and carbon emission from gas flaring on the economic growth rate in Nigeria from 1980-2021. The findings revealed that economic growth and energy consumption significantly increases energy-related emissions. An increase in income level influences investors and industrialists to invest in the industrial sector, increasing production, diversification, and expansion. However, increased production and expansion of industries increase energy demand. Energy demand met by consuming fossil fuel increases energy-related emissions in Nigeria and negatively affects environmental quality. More importantly, carbon emission impedes environmental sustainability and sustainable economic growth in Nigeria. The study is relevant to the post-2015 Sustainable Development Goals agendas for two fundamental reasons: the world needs Sustainable Development Goal 7 – ensuring access to affordable, reliable, sustainable, and modern energy by 2030. (b) Large extractive industries primarily drive growth in Nigeria, and the country's population is expected to double in about 30 years. Energy efficiency for inclusive development is very welcome. This is essential because studies have shown that the increase in unemployment (resulting from the underlying demographic change) would be accommodated by only the private sector, not the public sector.
Copyright (c) 2023 Dansofo Adama Tijani, Olure-Bank Adeyinka, Dennis Michael https://creativecommons.org/licenses/by/4.0
Determinants of health expenditures: income level countries analysis
A global health phenomenon, in particular, there is a significant difference between health spending in developed and developing countries. This study focuses on modeling health expenditures in short-term and long-term schemes in three categories of countries: low-income countries, moderate-income, and high income from 2000 to 2019. The health expenditure scheme is analyzed using the panel data regression approach as a model of determinants of health expenditures. The results showed relatively significant differences between the determinants of health expenditure variables, including populations variable in low-middle-income countries. The positive and significant influences on middle-income countries, whereas high-income countries have a negative and significant influence. As for the overall GDP variable, low-income, lower-middle, and advanced countries negatively and significantly influence health care. For middle-income countries have a positive and significant influence on health spending.
Copyright (c) 2023 Azwardi Azwardi, Sukanto Sukanto, Nazeli Adnan https://creativecommons.org/licenses/by/4.0
Assessing food security post-earthquake in Majene, Indonesia: An analysis of food availability, consumption patterns, and dietary quality
This study examines food security in Majene, West Sulawesi, following the 2021 earthquake, focusing on food availability, consumption, and dietary patterns. The research utilizes a descriptive qualitative approach and relies on secondary data from the Food Security Service Office of the Majene Regency. The data are supplemented by information from the Central Statistics Agency and interviews with informants. The findings reveal that the primary nutritional parameters—energy, protein, and fat—are adequately met. The availability of energy from vegetable sources exceeds the recommended 984 kcal/capita/day. Protein availability, mainly from animal sources, meets the 63 grams/capita/day guideline. Fat availability, primarily from vegetable fats, also aligns with the recommended 72.17 grams/capita/day. During the earthquake, food supplies, which included 11 staple types, were sufficient, evidenced by available quantities surpassing consumption levels. For instance, rice availability stood at 29,277 tons against a consumption level of 20,084.70 tons. The study also assesses dietary patterns, finding that grains, oils, fats, oily fruits/seeds, sugars, and vegetables meet desirable dietary scores, while tubers, animal products, and legumes fall short.
Copyright (c) 2023 Ikawati Karim, Kasmiati Kasmiati, Hendi Hendi, Sumarni Panikkai https://creativecommons.org/licenses/by/4.0
Determinants of economic growth regencies/cities in Jambi Province with dynamic panel data approach
This study aims to analyze the determinants of economic growth Regency/City in Jambi Province. The factors considered to be the determinants of economic growth are lagged economic growth, government expenditure, household consumption, labor, and infrastructure. This study used time series data from 2011-2020 and cross-section 11 regencies/cities in Jambi province. The analysis tool used in this study is dynamic panel data regression. The results of the dynamic panel data regression show the generalized system method of the moment model as the best model. Based on the analysis results, lagged economic growth had a significant positive effect. In the short term, labor had a significant negative effect, and infrastructure had a significant positive effect. In contrast, government expenditure and household consumption did not significantly affect economic growth. In the long run, infrastructure has a significant positive effect, while government expenditure, labor, and home consumption have no significant effect on economic growth.
Copyright (c) 2022 Hajri Puja Pratama, Syaparuddin Syaparuddin, Emilia Emilia https://creativecommons.org/licenses/by/4.0
Public expenditure on infrastructural development and economic growth: Evidence from Nigeria
This research investigated the nexus between public spending on infrastructural development and economic growth: evidence from Nigeria. As a matter of urgency, there is a need for the Nigerian government to invest in infrastructure for sustainable economic growth since infrastructural development touches all human fields of endeavors in one way or another. Notably, despite the country’s pole position in the economic ranking in Africa, Nigeria’s infrastructural state still falls short, which has led to negative economic growth in recent years. Therefore, it is pertinent in this study to unravel the causes and the missing gaps between increasing fiscal spending on infrastructure and slow economic growth in Nigeria. Interestingly, Autoregressive Distributed Lags and cointegration techniques were adopted to investigate whether there are long interactions between economic advancement and public funding of social amenities in the case of Nigeria. Furthermore, post-estimation tests were carried out to ascertain the validity of the models adopted in the study. The investigations from the study showed that short and long-run nexus subsists between government investment in infrastructure and economic growth in Nigeria. Hence, to address the problems underpinning this research, the study recommended that a proactive policy framework be used to promote economic growth via a redesigned fiscal framework in Nigeria. Also, protective laws and acts to safeguard the existing infrastructures should be well-pronounced and adopted by policymakers to expand the productive life span of social goods.
Copyright (c) 2023 Sunday Keji https://creativecommons.org/licenses/by/4.0
Evaluating the maturity level of public service agency at Jambi University: Analysis and recommendations for enhancing public services
This study evaluates the maturity level of the Public Service Agency (BLU) at Jambi University (UNJA). The research uses descriptive analysis based on the BLU Maturity Rating worksheet to assess various aspects, including financial management, service quality, internal capabilities, governance, innovation, and environmental impact. The findings reveal that UNJA's BLU has achieved an overall maturity level 3.71. Internal capabilities scored the highest at level 5, while environmental aspects lagged at level 3. Recommendations are provided to enhance business ethics, risk management, and resource usage, improving the institution's maturity level and overall performance. These improvements are crucial for achieving a higher maturity level, ensuring better service quality, and promoting sustainable development within the institution.
Copyright (c) 2023 Junaidi Junaidi, Yusrizal Yusrizal, Jefri Marzal, Salman Jumaili https://creativecommons.org/licenses/by/4.0
It takes two to Tango: The joint effect of democracy and fiscal capacity on economic growth in Indonesia
The literature continues to debate the effects of democracy and fiscal capacity on economic growth, both partially and jointly. To remedy the literature puzzle, this study examines the economic growth effects of democracy and fiscal capacity in 34 Indonesian provinces from 2016 to 2021. Using a fixed-effect model, this study documents no evidence of a partial effect; rather, it finds a joint effect of democracy and fiscal capacity on Indonesian economic growth. These findings remain relatively robust even when provincial heterogeneity, COVID-19 pandemic shocks, and sectoral composition are factored into the model. This finding indicates that regions with democracy and strong fiscal capacity possess relatively fast per capita GRDP growth. Based on these findings, the study concludes that democracy and fiscal capacity should exist side by side. Indonesia's sub-national economic growth strategy, like a tango game, requires reforming two types of decentralization: political decentralization to improve the quality of democracy that upholds the merit system and fiscal decentralization to expand local tax capacity to finance public goods productively.
Copyright (c) 2022 Hidsal Jamil, Candra Fajri Ananda, Ferry Prasetyia https://creativecommons.org/licenses/by/4.0
Who get paid higher? A study on wages decomposition between manufacturing and non-manufacturing workers in Indonesia
In 2008, Indonesia became a member of the G20, and it is estimated that in 2030 it will be in the top seventh economic countries if it can keep growing. Nevertheless, high economic growth was followed by an inequality problem. This study will analyze the wage gap between manufacturing and non-manufacturing workers. Using Sakernas 2020 and the Mincer wage model regression, the result showed that all independent variables: age, level of education, gender, region of residence, marital status, toddler, disability status, and certificate training influence wages for both manufacturing and non-manufacturing workers. Next, the Blinder-Oaxaca method decomposes the wage gap between both groups. It is shown that manufacturing workers get higher wages than non-manufacturing workers because of differences in the characteristic of workers and also industry attributes which, in this case, capital intensity.
Copyright (c) 2023 Arief Ibrahim, Nasri Bachtiar, Elvina Primayesa https://creativecommons.org/licenses/by/4.0
Effects of corporate governance disclosure on profitability of public listed firms in Tanzania
This study investigated the effect of corporate governance information (CGI) disclosure on firms' profitability in the Dar es Salaam Stock Exchange (DSE). Twenty-one listed companies were studied for a period ranging from 2006 to 2021 using a mixed research method with an explanatory sequential design. Return on equity (ROE) and Return on Assets (ROA) was employed as dependent variables in the panel data analysis. CGI disclosure was an independent variable. The control variables were geographical diversification, firm age, size, and sales growth. Secondary data was obtained from DSE. Qualitative data was gathered via semi-structured interviews. Thematic analysis and a random effect model with two estimates (1 and 2) were used to analyze qualitative and quantitative data. The findings suggested a positive and significant effect of CGI disclosure on firm profitability. The findings add to the body of knowledge by signifying stakeholder theory. The study concluded that Disclosure of CGI might undeniably result in increased profitability. We recommended that firm managers look closely at CGI disclosure, enhance their disclosure practices, and invest in disclosure strategies that benefit stakeholders.
Copyright (c) 2022 Magwana Ngollo, Beny Mwenda https://creativecommons.org/licenses/by/4.0