{"title":"The Contribution of Islamic Banks towards the Achievement of Sustainable Development Goals: The Case of Indonesia","authors":"Nunung Ghoniyah, S. Hartono","doi":"10.47291/EFI.V65I2.620","DOIUrl":"https://doi.org/10.47291/EFI.V65I2.620","url":null,"abstract":"This study aims to strengthen the opinion that the main goal of Islamic banks is not to obtain profit, but rather to improve the standards of living. In this study, the evidence is obtained by processing secondary data on Islamic banks in Indonesia during the period of 2011 to 2017 by using panel data regression model. The results of the data analysis support the hypothesis that banks whose goals are aimed at falah will demand lower payment obligations from customers, allowing the customers to manage funds in the real sector. The implication is also strengthened by good financial quality control, namely low non-performing financing value. Another form of support provided by Islamic banks, namely a more equitable cooperation contract, can also reflect Falah in every policy of Islamic banks.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"65 1","pages":"93-110"},"PeriodicalIF":0.0,"publicationDate":"2019-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48426916","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Effect of School Operational Assistance Program on Investment in Education by Households: Evidence from Indonesia","authors":"Nia Pramita Sari, Ryuichi Tanaka","doi":"10.47291/EFI.V65I2.637","DOIUrl":"https://doi.org/10.47291/EFI.V65I2.637","url":null,"abstract":"The School Operational Assistance Program, referred to as BOS, is a demand intervention program indirectly provided by the government of Indonesia to students through schools, started in July 2005. This paper examines the impact of BOS on educational investment by households and other expenditure such as food and non-food consumption. Using the observations of 1,161 households with at least one member studying in public school from the fourth wave of the Indonesian Family Life Survey (IFLS 4), we discover that BOS is effective in relaxing household’s budget constraint, thus increasing educational investment by households. We also discover that households with low income benefit significantly from BOS relative to those with high income. Additionally, we discover that BOS assists households, regardless of their income level, in increasing their spending on food and non-food items.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"65 1","pages":"149-168"},"PeriodicalIF":0.0,"publicationDate":"2019-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47878352","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Book Review: Indonesia’s Digital-Based Economic Transformation: The Emergence of New Technological, Business, Economic, and Policy Trends in Indonesia","authors":"A. Widiana","doi":"10.47291/efi.v65i2.695","DOIUrl":"https://doi.org/10.47291/efi.v65i2.695","url":null,"abstract":"In chapter 1, the authors explain about the history of the industrial revolution and the position of many countries in terms of their progress and speed toward digitalization, respectively, through plotting the digital evolution index from the Fletcher School and Mastercard. There are two determinants, namely, four drivers in the digital evolution index (mobile internet, cloud computing, internet of things, and big data) and rate of change in digital evolution. These two determinants are then used in order to map the speed of each countries in its respective digital transformation, the mapping of which are carried out through four quadrants, viz., a) stand-out, which consists of countries considered as the digital elites, who have evolved far into the digital era and advanced it rapidly, b) stall-out, i.e. countries which have attained a high level of digital evolution, but with risks of being left behind due to their slow pace, c) watch-out, which consists of countries with","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45546791","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Utilization of Free Trade Agreement in Indonesia: Firm-Level Data Analysis of the Yogyakarta Special Region","authors":"N. A. Nasution, Kiki Verico","doi":"10.47291/EFI.V65I2.665","DOIUrl":"https://doi.org/10.47291/EFI.V65I2.665","url":null,"abstract":"This study aims to observe the utilization of Free Trade Agreement (FTA) in the Special Region of Yogyakarta. The findings are obtained by processing primary data collected from in-depth interviews and a survey of firms by applying descriptive analysis. The findings show that FTA is utilized by merely 44% of the total population of 64 firms in Yogyakarta. The benefits of FTA obtained by firms include market access, ease of processing custom documents, and lower preferential tariffs. However, the disadvantages include onerous document requirements, limited information, and difficulties in understanding regulations. Another issue related to the utilization of FTA concerns the additional provisions, such as product certificates, timeliness in obtaining COO, guidelines on information access, and registration procedures. The policy implications of the findings are discussed in conclusion.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"65 1","pages":"169-186"},"PeriodicalIF":0.0,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44015661","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"An Empirical Analysis of Household Debt Behavior Determinants","authors":"Herispon Herispon","doi":"10.47291/EFI.V65I2.627","DOIUrl":"https://doi.org/10.47291/EFI.V65I2.627","url":null,"abstract":"This study identifies the determinants of debt behaviors and their effects on household consumption. We surveyed households in Riau, particularly in Pekanbaru and its neighboring areas, using purposive sampling and collected 390 useable responses. Our findings show that of the ten determinants considered, debt behavior can be explained by five determinants: (i) imitated lifestyle and consumerism, (ii) ability to manage money from debt, (iii) effects of promotion on the internet and visual media, (iv) monthly income, and (v) increasing household expenses and dependants. Implications of the findings are discussed.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"65 1","pages":"132-148"},"PeriodicalIF":0.0,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70818561","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Corruption and Economic Growth in ASEAN Member Countries","authors":"Anisah Alfada","doi":"10.47291/EFI.V65I2.628","DOIUrl":"https://doi.org/10.47291/EFI.V65I2.628","url":null,"abstract":"This study examines the effect of corruption on economic growth and determines the corruption threshold in nine ASEAN member countries in 1999–2016. This study assesses whether the effect of corruption is growth-enhancing or growth-deteriorating in different corruption threhsolds using a sample-splitting and threshold model. In contrast to the existing literature, this study does not group countries based on income level and therefore can reveal the corruption level of a country relative to a corruption threshold. The estimation results show that the adverse effect of corruption on economic growth is stronger for countries with corruption levels above the second threshold of 80.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"65 1","pages":"111-131"},"PeriodicalIF":0.0,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48992253","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Promoting the Indonesian Special Economic Zones for Tourism: Lessons from Mandalika and Tanjung Kelayang","authors":"Latif Adam","doi":"10.47291/EFI.V65I1.609","DOIUrl":"https://doi.org/10.47291/EFI.V65I1.609","url":null,"abstract":"This paper aims to analyze the design and implementation of the policy to develop tourism special economic zones (TSEZs) in Indonesia with special reference to Mandalika and Tanjung Kelayang. Using descriptive analysis, it is revealed that these TSEZs have not attracted many investors yet. The policy design to promote the two TSEZs is unattractive, unclear, and at odds with the characteristics of the tourism sector. Furthermore, the implementing institutions have insufficient capacity and professionalism to implement the policy. Various critical actions are necessary to take. First, accelerating the provision of infrastructure. Second, clarifying several regulations to be in compliance with the characteristics of the tourism sector. Third, improving the capacity of the implementing institutions to manage the TSEZs. Fourth, encouraging both TSEZ Managements to collaborate.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-08-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49402141","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Microcredit Accessibility in Rural Households: Evidence from Indonesia","authors":"Danang Budi Santoso, C. Gan","doi":"10.47291/EFI.V65I1.635","DOIUrl":"https://doi.org/10.47291/EFI.V65I1.635","url":null,"abstract":"Extant literature suggests that microcredit may improve borrowers’ social and economic welfare. This study aimed to investigate the microcredit accessibility of rural households in Indonesia. Binary Logistic regression was used to distinguish the characteristics of microcredit borrowers and non-borrowers, and the factors affecting the approval of microcredit application. Primary data was collected through a survey on 488 rural households in Bantul, Yogyakarta. The empirical results suggested that age, marital status and education attainment significantly affect the characteristics of clients and non-clients of microcredit. The results also revealed that age of borrowers, household income, interest rates, and loan duration are key determinants affecting microcredit accessibility. The implications of the findings were provided.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41331305","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Effect of Hedging with Financial Derivatives on Firm Value at Indonesia Stock Exchange","authors":"Budi Frensidy, Tasya Indah Mardhaniaty","doi":"10.47291/EFI.V65I1.614","DOIUrl":"https://doi.org/10.47291/EFI.V65I1.614","url":null,"abstract":"This study aims to analyze the effect of hedging for the risks of foreign currency, interest rate, and commodity price on firm value as measured by Tobin’s Q. The findings reveal that hedging with derivative instruments is insignificantly related to firm value but significantly varied in financial risks. Hedging for foreign currency risk has a significantly positive relation to firm value, while hedging for interest rate and commodity price risk has no relation. Furthermore, this study provides a novelty compared to previous studies in the utilization of the extent of hedging as the variable to measure the implementation of hedging.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48332673","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Economic Change in Modern Indonesia: Colonial and Post-colonial Comparisons by Anne Booth","authors":"A. Patunru","doi":"10.7454/EFI.V65I1.639","DOIUrl":"https://doi.org/10.7454/EFI.V65I1.639","url":null,"abstract":"","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41475900","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}