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Preface
Global competitiveness is a phenomenon that gripped all developing countries.
Competitiveness is defined as a set of institutions, policies, and factors that determine the
level of productivity of a country. The level of productivity, in turn, sets the level of
prosperity. There are a number of components determinant of a country's competitiveness
include both public and private institutions, infrastructure, macroeconomy, health and
primary education, higher education and training, market efficiency, technological readiness,
business sophistication, and innovation.
Indonesia as a developing country faced with a number of problems in improving
competitiveness determinant components. Indonesian government led by President Joko
Widodo and Vice President Yusuf Kalla is working hard to increase the prosperity of the
Indonesian people through a national program named Nawa Cita as the embodiment of the
component parts of the above. The Government would urgently need the contribution of ideas
and innovations from researchers and practitioners in each field to realize the efforts.
This situation opens the opportunities for all parties, especially academicians to
explore the preparations and the level of competitiveness of developing countries in fulfilling
global competitions. Therefore, Universitas Sebelas Maret through its four Center Studies of
Center for Islamic Economic Studies, Center for Local and Institutional Policy Studies,
Magister of Economic and Development Studies and Department of Economic Development
will hold an international seminar in September 8th, 2015. This international seminar is aimed
to produce new insights of developing countries readiness towards global competition. The
objectives of the conference are: gathering researchers and practitioners from various
countries to share knowledges and experiences about developing countries in regard to global
competition, exploring the problems and the latest findings in the field of developing
countries in regard to global competition, dissemination of research results and publish
selected papers in the form of proceedings, publication of selected papers in several
international journals of social and economics disciplines.
Chairman of ICOSEC Commitee,
Arifuddin
Table of Contents Preface
i
Table of Contents ii
SubConference: AICIE
Paper No. ICOSEC-1-061804 - The Implication of Tabarru’ and Wakalah Bil Ujrah Contracts in Financial Management of Islamic General Insurance Institution: Case Study in Indonesia - Novi Puspitasari
1
Paper No. ICOSEC-1-062414 - The Workable Model of Trade and Finance in Makkah as a Basic Role of Islamic Economics in Indonesia Towards Global Competition - Muhammad Yunus Anis and Afnan Arummi
2
Paper No. ICOSEC-1-062415 - Maslahah of Ummah vis a vis Align of Islamic Bankin Indonesia - Lucky Nugroho and Tengku Chandra Husnadi
3
Paper No. ICOSEC-1-062416 - Islamics Principle Versus Green Microfinance - Lucky Nugroho 4
Paper No. ICOSEC-1-062527 - Decentralization, Islamic Finance, and Economic Development: an Empirical Evidence from Indonesia - Bambang Saputra
5
Paper No. ICOSEC-1-062641 - Socio-Economic Value of Halal Issues on Food Product from Small Medium Enterprise Segment for Muslim Consumers In Banyumas Regency - Kikin Windhani, Fajar Hardoyono, Herman Sambodo, and Hary Pudjianto
6
Paper No. ICOSEC-1-062746 - The Contribution of the Baitul Maal Wat Tamwil (BMT) for the Informal Sector of the Economy - Wenny Djuarni and Djoko Pitoyo
7
Paper No. ICOSEC-1-062947 - The Effect of Corporate Governance on Earnings Management at Islamic Banking in Indonesia - Meitia Faridha Hartini and Putri Permatasari Husa
8
Paper No. ICOSEC-1-062948 - Computer Application Design for Sharia Financial Services Cooperative in Srengseng Sawah, South Jakarta - Kiayati Yusriyah, Budiman, and Dharmayanti
9
Paper No. ICOSEC-1-071058 - Hahslm Islamic Economics Methodology - Roikhan Mochamad Aziz 10
Paper No. ICOSEC-1-071059 - Comparing Efficiency of Conventional Insuranceand Takaful in Indonesia - Lely Ratwianingsih and Vita Kartika Sari
11
Paper No. ICOSEC-1-071060 - Tax Implementation in Indonesia According to Syariah - Laili Faiza Ulfa 12
Paper No. ICOSEC-1-07106 The Contribution of Islamic Banking Financingto Micro, Small and Medium Enterprises: Case Study in Aceh Province Indonesia - Riswandi and Nahrul Hayah Ariga
13
Paper No. ICOSEC-1-071065 - Is There Income Equalization Conceptin Islamic Economics Perspective? - Wahyu Hadi Wibowo and Anniza Citra Prajasari
14
Paper No. ICOSEC-1-081171 - Organizational Effectiveness Assessment of ZIS Institute Based on the Perception of HR/Staff of the ZIS Instituteand Mustahik: ZIS Institute Case Study In DKI Jaya - Yuswar ZB, Hermien Triyowati, and Yolanda Masnita
15
Paper No. ICOSEC-1-081675 - Legislate of Syirkah Legal Entity in The Legal Systemin Indonesia - Burhanudin Harahap Luthfiyah Trini Hastuti, and Solikhah
16
Paper No. ICOSEC-1-081677 - Interpretative Phenomenological Analysis for Implementation of Qardhul Hasan on Islamic Banking Indonesia - Falikhatun, Yasmin Umar Assegaff, Hasim
17
Paper No. ICOSEC-1-082485 - Corporate Governance and Islamic Social Reporting: a Comparison in Indonesia, Malaysia, and Gulf Cooperation CouncilMaftuhatul Barokah and Ibrahim Fatwa Wijaya
18
Paper No. ICOSEC-1-082886 - The Growth of Islamic Banking: Efficiency of Islamic Banking Compared to Conventional Banking in Indonesia From 2005-2014 and Relation to Its Market Share - Imas Siti Fatimah Nursyiam and Taufik Faturahman
19
Paper No. ICOSEC-1-090100 - Religiosity Level and Saving Decision in Baitul Maal wat Tamwil: a Case Study in Karanganyar - Yudis Cipta and Ibrahim Fatwa Wijaya
20
SubConference: AICSP Paper No. ICOSEC-2-062418 - Individual Factors, Social and Cultural Rights to Purchase Decision Motif Batik
Clothing - Diah Nenik Hartanti 21
Paper No. ICOSEC-2-062524 - Analysis of Adversity Quotient (AQ) in Human Resource Development Through Outbound Training - Aris Munandar and Adella Hotnyda Siregar
22
Paper No. ICOSEC-2-062528 - Myanmar Public Policy Toward Rohingya Ethnic After Internationalization of Rohingya Ethnic Refugee Issue - Randhi Satria and Andrian Saputra
23
Paper No. ICOSEC-2-062530 - Predictors of Behavioral Intention to Use Public Railway Services: a Comparative Study Between Two Age-Segmentations - Savira Miranti and Anya Safira
24
Paper No. ICOSEC-2-06253 - The Impact of Perceived Corporate Reputation,Pride, Affective Commitment, and Job SatisfactionTowards Employee’s Awareness of Their Impacton Corporate Reputation - Dindha Vitri Primadini and Muhammad Irfan Syaebani
25
Paper No. ICOSEC-2-062537 - Impact of Declining in Fertility on Female Labor Supply - Achmad Sjafii, Nyigit Wudi Amini, and F. Apriyanti
26
Paper No. ICOSEC-2-062643 - The ASEAN Economic Community (AEC), Forest Fire and Deep Ecology: An Analysis of Interrelationship Between Natural and Human Resources - Muhammad Rustamaji and Bambang Santoso
27
Paper No. ICOSEC-2-070149 - Phenomenon Selfie in Students Faculty of Economics, Semarang State University, Indonesia - Nanik Setyorini, Fian Mulyaga, and Erik Adi Ponco N
28
Paper No. ICOSEC-2-070150 - The Effect of Financial Information System Implementation to Performance Officer: Psychological Empowerment as an Intervening Variabel (Empirical Study on the Device of Regional Coordinating Agency for Development of Cross County/City Region III Central Java Province, Indonesia) - Dona Primasari
29
Paper No. ICOSEC-2-070955 - Cost Benefit Assessment of Water Use of Mine Void (Study at Postmining Void PT.Multi Harapan Utama, Margahayu Village, Kutai Kertanegara Regency, East Kalimantan Province) - Putu Diyan Diwyastra, Setyo Sarwanto Moersidik, Soemarno Witoro Soelarno
30
Paper No. ICOSEC-2-071064 - Factors Affecting Infant Mortality Rates in the Asean-5 - Vita Kartika Sari and Dewi Ismoyowati
31
Paper No. ICOSEC-2-072866 - Online Internal Communication Design in Support of E-administration in Karanganyar Regency - Cicilia Dyah Sulistyaningrum Indrawati, Andre Noevi Rahmanto,Anton Subarno, and Rosihan Ari Yuana
32
Paper No. ICOSEC-2-080768 - Grand Design of Investment Cooperationin West Java Province - Helin Garlinia Y and Okky Rizkia Y
33
Paper No. ICOSEC-2-08127 The Influence of Corporate Social Responsibility Disclosure to Financial Performance in Indonesian Mining Companies - Anisa Wulandari, Elva Nuraina, and Purweni Widhianningrum
34
Paper No. ICOSEC-2-081373 - The Influence of Return on Assets (ROA) on Stock Return with Dividend Pay out Ratio (DPR) as Moderating(Empirical Study on Manufacturing Company Listed in Indonesia Stock Exchange Period 2011 -2013) - Bagus Dwi Satyaningprang, Isharijadi, Nik Amah
35
Paper No. ICOSEC-2-082078 - The Influence of Corporate Resources and Value Creationon Business Performance: a Research on Rural Bank Owned City District Government of West Java and Banten - Iwa Karniwa, Sucherly, and Ernie Tisnawati Sule
36
Paper No. ICOSEC-2-082080 - Qualitative and Quantitative Analysis of ASEAN Free Trade Agreement: An Approach of Global Trade Analysis Project (GTAP) Model - Ana Shohibul Manshur Al Ahmad and Mulyadi
37
Paper No. ICOSEC-2-082083 - Creative Accounting Model for Increasing Banking Industries’ Competitive Advantage In Indonesia - Supriyati and Erida Herlina
38
Paper No. ICOSEC-2-082900 - Root Cause Analysis of Suka Mulya Cooperative Closedown by Using Current Reality Tree - Itsnaini Fathu Rahmah and Santi Novani
39
Paper No. ICOSEC-2-072865 - Development of Office Administration Education Bachelor Program Lecturers’ IQF-based Competencies - Ign. Wagimin, Wiedy Murtini, Hery Sawiji, and Anton Subarno42
40
SubConference: AICEDC Paper No. ICOSEC-3-061603 – Malay43sian Tourism Product Marketing to Middle East Countries - Azhar Harun,
Abd. 44Rahim Anuar, Rohana Yusof, and Suria Saniwa 41
Paper No. ICOSEC-3-06170 The Model of Economic Growth and Shift Share Analysisin East Java Province, Indonesia - Wiwin Priana Primandhana, Dewi Khrisna Sawitri, and Ira Wikartika
42
Paper No. ICOSEC-3-062208 - Food Commodities Trading Phenomenonin Central Java Province - Harini, Yunastiti Purwaningsih, Malik Cahyadin, and Emi Widiyanti
43
Paper No. ICOSEC-3-062209 - Manufacturing Industry Development and Phenomenonin Indonesia and Singapore: Lessons for Policy Makers - Siti Aisyah Tri Rahayu Lukman Hakim Malik Cahyadin
44
Paper No. ICOSEC-3-062417 - Explanatory Factors of Commercial Banks Efficiencyin Indonesia - Jaelani, Suparno, and Djoko Pitoyo
45
Paper No. ICOSEC-3-0625 Indonesia’s Opportunity to Develop Maritime Potency: - Utilizing Chairmanship in IORA 2015 - Septyanto Galan Prakoso and Aditya Very Cleverina
46
Paper No. ICOSEC-3-062523 - Impact of Foreign Debt and Per Capita Income on Corruption: Case Study in Asia - Agustinus Suryantoro, A.M. Soesilo, and Supriyono
47
Paper No. ICOSEC-3-062526 - Spatial Analysis of Disparities in Banyumas RegencyBased on Socio-Economic and Infrastructure Indicators - Kikin Windhani, Fajar Hardoyono, Sudjarwanto, and Hary Pudjianto
48
Paper No. ICOSEC-3-062534 - Sustainability in the Mining Town:Does the Ghost Town is Real? - Sulistiyohadi, Moersidik, Suparmoko
49
Paper No. ICOSEC-3-06264 The Effect of the Entrepreneurial Competence Towards Small Business Performance: Case Study of Small Business of the Crafts Products in Tasikmalaya West Java - Harun Heri Trismiyanto, Djoko Pitoyo, Tuti Sulastri
50
Paper No. ICOSEC-3-070651 - Inflation and Economic Growth in IndonesianDuring 1970-2013 - Sugeng Setyadi and Tetuko Rawidyo Putro
51
Paper No. ICOSEC-3-070853 - The Relationship Between the Socio-Economic Profile and Perception of Smallholders Towards Empowerment Program in Tanjung Jabung Barat, Jambi, Indonesia - Novyandra Ilham Bahtera and Fatimah Mohamed Arshad
52
Paper No. ICOSEC-3-070854 - The Poverty Alleviation for Sustainable Economic Development in Nigeria: Issues and Challenges - Rayyanu Abdulkarim Kaita
53
Paper No. ICOSEC-3-071161 - Model Mapping the Potential to Independence Fiscalin East Java - Niniek Imaningsih and Ning Siti Farida
54
Paper No. ICOSEC-3-07146 The Effects of BI Rate, Inflation, and Exchange Rate to Government Bond Price 2011.01-2014.12: Error Correction Model Approach - Miranti Rizki Amalia and Siti Aisyah Tri Rahayu
55
Paper No. ICOSEC-3-072864 - Gold Standard: The History and Impact on Economy (Historical Study Implementation Gold Standard Other than the Monetary Standards and Implementation Challenges and Opportunities in the Global Economy) - Ajeng Faizah Nima Ilma, Vita Kartika Sari, Bhimo Rizky Samudro,and Siti Aisyah Tri Rahayu
56
Paper No. ICOSEC-3-073067 - Simultaneous Analysis of Financial Sector Development and Economic Growth in Indonesia and Malaysia (1995-2013) - Febrianto Endy Pratama and Siti Aisyah Tri Rahayu
57
Paper No. ICOSEC-3-081169 - Customer Response Toward Out-of-Stock in Supermarket - Rina Arum Setyawati 58 Paper No. ICOSEC-3-081170 - Consumer Purchase Intention Towards Counterfeit Sporting Goods - Novi
Septiana 59
Paper No. ICOSEC-3-081676 - The Impact of National Health Insurance Programby Social Security Agency (BPJS) on Demand and Public Awareness of Health Insurance in Surakarta 2015 - Nurul Istiqomah
60
Paper No. ICOSEC-3-083000 - Accelerate Creative Economic in Surakarta Through Enhancing Incomes of SMEs Based Economic Creative - Dwi Prasetyani and Atmasari Listuhayu
61
Paper No. ICOSEC-3-083001 - The Effect of Financial and Non-Financial Informationon Underpricing Level - Adi Mohammad Zainuddin and Muh Juan Suam Toro
62
Paper No. ICOSEC-3-083100 - Analysis of Carrying Capacity of the Environmenton the Integration of Livestock Farmingon Dry Land of District Sragen, Central Java - Mugi Raharjo, Yunastiti, and Nurul Istiqomah
63
Paper No. ICOSEC-3-083101 - The Influence of Website Quality Towards Purchase Intention - Haryanto 64
AICIE Page 1
Paper No. ICOSEC-1-061804
The Implication of Tabarru’ and Wakalah Bil Ujrah Contracts
in Financial Management of Islamic General Insurance Institution: Case Study in Indonesia
Novi Puspitasari1
1Faculty of Economic, University of Jember, Jember, Indonesia
Abstract There are two purposes of this study. First is to explore the implication of the using of
tabarru’ and wakalah bil ujrah contract in financial management of Islamic general insurance
institution (IGII). Second is to build a financial management concept based on Islamic values.
The two purposes based on the assume that implementation of tabarru’ and wakalah bil ujrah
contracts will make differences in managing the fund. The integration of Islamic values will
affect the building of financial theories and conditions of the Islamic general insurance
institution. This study used a qualitative positivistic paradigm approach. Techniques research
conducted by interview and literature studies. The results showed that the application of the
tabarru’ and wakalah bil ujrah contracts have implications for changing in financial
management of Islamic general insurance institution (IGII). The change is the
implementation of splitted fund practice between the participants funds and company funds.
Integration of the results in the field and financial theory underlying create a new concept
called Islamic Split Fund Theory (ISFUT). Islamic Split Fund Theory (ISFUT) is the concept
of financial management system with splitted fund based on Islamic values, namely
transparency, honesty, and justice.
Keywords – tabarru’,wakalah bil ujrah, splitted fund , Islamic Split Fund
AICIE Page 2
Paper No. ICOSEC-1-062414
The Workable Model of Trade and Finance in Makkah as
a Basic Role of Islamic Economics in Indonesia Towards Global Competition
Muhammad Yunus Anis1 and Afnan Arummi2
12Department of Arabic Literature, Sebelas Maret University, Surakarta, Indonesia [email protected], [email protected]
Abstract
In Islamic economics, historical examination can tell us that the Islamic system perse has the
capability of providing an operational norm and the workable model, as long as the
surrounding environment was helpful. One of the workable model of trade and finance is
Makkah. Makkah or Mecca is the holiest city in Islam. Located in Northwest Arabia, it is the
site of Ka’bah and the holy well of Zamzam, both objects of veneration in the Hajj.
Financially, the development of trade had created three distinctive financial situations: the
demand for, and supply of, finance, the appearance of money changers and the necessity of
insurance. By doing the qualitative research, the data of this research is constructed by the
social conditions, such as (1) place, (2) actors, and (3) activity. This paper try to find out the
workable model of trade and finance in the holiest city in Islam, Makkah. Workable mode is
a capable mode of being done in the present conditions, especially in Indonesia Islamic
Economic, such as the partnership concept, or mudharabah as it was known then, was
approved of after the coming of Islam and continued to serve as a legitimate mode of
business finance under Islamic law until the present day, thus we can conclude the result
about the connection line between a trade and finance prototype in Makkah and Indonesia
toward global competition.
Keywords: Trade and Finance, Makkah, Global Competition, Islamic Economics.
AICIE Page 3
Paper No. ICOSEC-1-062415
Maslahah of Ummah vis a vis Align of Islamic Bank
in Indonesia
Lucky Nugroho1 and Tengku Chandra Husnadi2
12Islamic Economics & Finance, Trisakti University, Jakarta, Indonesia [email protected], [email protected]
Abstract
Indonesia as the biggest Moslem countries in the world has special histories of the Islamic
banking development as well. In Indonesia the development of the Islamic Banking was
starting by the society driven or in the other words its the bottom up development. In current
condition the impact of the Islamic Bank is not optimum yet, because one of indicator such as
market share of Islamic bank in Indonesia at 2014 is reduce become 4,6% than previous year
2013 which has market share 4,8%. According these condition, this literature review will find
out the challanges of the Islamic banking development included the opportunity to the
allignment of Islamic banking under the government policy. The methodology in this
literature review is qualitative and limited by the four questions research (i) How the
development of Islamic Banks from 2009-2014?, (ii) How many the clients that has served by
Islamic Banks? (iii) What is the link between maslahah and the Islamic Bank development?
(iv) Is there opportunity to align the Islamic Bank in Indonesia? The conclude is we need
interaction, integration and evolution process from all elements to improve of Islamic
Banking not only in the economics side but also we need role of government in the political
will to legitmate and enforce the allign of Islamic Banks for the entire objective is maslahah
based on the maqhasid sharia mainframe.
Keywords: Islamic banking in Indonesia, society driven, challenges of Islamic bank, alignment of Islamic bank, government policy, maslahah
AICIE Page 4
Paper No. ICOSEC-1-062416
Islamics Principle Versus Green Microfinance
Lucky Nugroho
12Islamic Economics & Finance, Trisakti University, Jakarta, Indonesia
[email protected], [email protected]
Abstract The purpose of this literature review is to find out the link Islamic principles based on the
Qur’an, and hadith that in line with the green microfinance activities. The scope of this
literature review is divided into four main sections: (1) Is Islamic perspective on economic
activities has concern with the environmental issues? (2) Why microfinance has an important
role to implementing green microfinance activities? (3) What's the link between Islamic
principles and green microfinance activities, (4) Who has responsibilities on the
implementation of green microfinance activities? Based on Islamic perspective, the people
can run their business as long as they didn’t destroy environmental. The conservation of
environmental very important to support the sustainability of human life, it's reflected in The
Qur’an and Hadith as the supreme sources of Islamic law. Furthermore, Islamic finance has a
strong engagement with the microfinance activities, because the main clients of microfinance
are poor people, and the one of microfinance objectives is related to poverty alleviation.
Furthermore, the majority clients of microfinance are poor people that also as the contributor
of environmental destruction. Related to this condition, appropriate law enforcement from the
government who has the legitimation to force microfinance for implementing environmental
conservation activities.
Keywords: Islamic Principle, Environmental Concern, Microfinance, Poor People, Legitimation
AICIE Page 5
Paper No. ICOSEC-1-062527
Decentralization, Islamic Finance, and Economic
Development: an Empirical Evidence from Indonesia
Bambang Saputra1
1Departement of Accounting, STIE MADANI, Balikpapan, Indonesia [email protected]
Abstract
This study examines the relationship between decentralization, Islamic finance and economic
development (economic growth and social welfare) in the region, as a reference in making
the strategy development of regional Islamic finance. Samples were provinces in Indonesia,
using secondary data from Dirjen Perimbangan Keuangan, Bank Indonesia and Baand Pusat
Statistik in the period of 2010 to 2013. The data were then analyzed by Structural Equation
Modeling (SEM). Results indicate that, first, decentralization (fiscal) has negative and
significant effect on regional Islamic finance. Second, decentralization (fiscal) has positive
and significant effect on regional economic growth. Third, decentralization (fiscal) has
positive and significant impact on regional social welfare. Fourth, regional Islamic finance
has not significant effect on regional economic growth. Fifth, regional Islamic finance has
positive and significant effect on regional social welfare. Sixth, regional economic growth
has negative and significant effect on regional social welfare. Strategic implication of these
results is the importance of the development strategy of regional Islamic finance focusing on
economy-political and economic-sociology in the region four main gatra, named: structure
and system resources; structures and social relationships; political system and the legal
system; and ideologies and value systems (Islam-Indonesia-Local).
Keywords: decentralization, Islamic finance, economic growth, social welfare
AICIE Page 6
Paper No. ICOSEC-1-062641
Socio-Economic Value of Halal Issues on Food Product from
Small Medium Enterprise Segment for Muslim Consumers in Banyumas Regency
Kikin Windhani1, Fajar Hardoyono2, Herman Sambodo1, and Hary Pudjianto1
1Department of Economics Development, Faculty of Economics and Business, Jenderal Soedirman University, Purwokerto, Indonesia
2Department of Madrasah Education, Faculty of Tarbiya and Teaching Science, State Institute on Islamic Studies-IAIN Purwokerto, Indonesia
Abstract
Demand of halal food products which use beef, chicken, duck and mutton as a raw material
from small-medium enterprise (SME) segment always increases due to hygienic, affordable,
and tasteful. To increase market share of these products for Muslim consumer, fulfilment
requirement of halal based on Islamic sharia law is a must. This paper investigates halal
issues on these products produced by SME segment in Banyumas Regency, Central Java. The
main goal of this study was to measure the socio-economic of a halal issue on food product
of small medium enterprise segment for Muslim consumers in Banyumas Regency. The
depth-interviewed of 80 food producers was used to measure the standard of halal food
processing and the perception on the economic value of halal issue towards their product.
The questionnaire of 300 Muslim consumers was used to measure the awareness, perception,
and behaviour towards food produced by SME segment. Data analyses showed that there
were only 85% of producers who applied a strict procedure for the fulfilment of the halal
standard in food processing. The presence of halal logo and or halal certificate in food
products has not affected significantly the preference of Muslim consumer. The main factor
affected the preference on these products was controlled by taste, price, and hygienic factor.
Keywords: halal issues, Muslim preference, foods, small medium enterprise.
AICIE Page 7
Paper No. ICOSEC-1-062746
The Contribution of the Baitul Maal Wat Tamwil (BMT)
for the Informal Sector of the Economy
Wenny Djuarni1 and Djoko Pitoyo2
1Doctoral Study Program of Economics Economics and Business Faculty of Padjadjaran University. Bandung, Indonesia
2Sangga Buana Univerity, Bandung, Indonesia [email protected]
Abstract
Baitul Maal Wat Tamwil (BMT) is an Islamic financial institutions as a means of providing
financial services in which the activity is focused on the development of the informal sector
who do not have access to banking. BMT its role as an institution that is formed on the
initiative from below, its function as a community mobilizer economic potential to be
developed in order to improve the welfare of members of BMT in this case serves as a
business organization. Another function that also acts as a social organization, which
mediates between agniya as shahibul maal (people who have treasure excessive) with dua'fa
(people who lack possessions) as mudharib (user funds) primarily for the development of
productive enterprises. Through increasing the capability and professionalism of the
managers of BMT, as well as sensitivity analysis of financing so as to provide appropriate
financing and optimizing the role in the real economy can be implemented properly, thus
BMT play an optimal role to contribute to national development, so expect the welfare of the
business sector informal can be realized in a fair and equitable.
Keywords: Contributions BMT, Informal Economic Sector
AICIE Page 8
Paper No. ICOSEC-1-062947
The Effect of Corporate Governance on Earnings
Management at Islamic Banking in Indonesia
Meitia Faridha Hartini1 and Putri Permatasari Husa2
12Accounting Department, Universitas Sebelas Maret, Surakarta, Indonesia [email protected], [email protected]
Abstract
In the past few years, Indonesian Islamic Banking has developed rapidly. This trend has made
Indonesian society tend to put their trust over their money into Islamic Banks. Society as
principal and manager as agent tend to have different interest, thus could cause earnings
management. The purpose of this research is to examine whether the application of Corporate
Governance influence earnings management practice at Islamic Banking in Indonesia. The
independent variables of this research are auditor quality, Commissioner Board’s size, Board
of Director’s size, Sharia Supervisory Board’s size, and bank’s size, while the dependent
variable is earnings management. Sampling procedure in this research is purposive sampling.
Sample of this research consists of Islamic Common Bank listed in the Bank of Indonesia for
the period of 2011-2013. This research uses Beaver and Engel model to calculate earnings
management which represented by discretional accrual. This research uses software SPSS
16.0 in order to analyze the data. The method of data analysis of this research is multiple
linear regressions. The results of this research indicate that auditor quality and bank’s size are
significantly associated with earnings management. In contrast, other variables such as
Commissioner Board’s size, Board of Director’s size, and Sharia Supervisory Board’s size
have insignificant association with earnings management at Islamic Banking in Indonesia.
Keywords: Corporate Governance, earnings management, Islamic Banking.
AICIE Page 9
Paper No. ICOSEC-1-062948
Computer Application Design for Sharia Financial Services
Cooperative in Srengseng Sawah, South Jakarta
Kiayati Yusriyah1, Budiman2, and Dharmayanti3
1Communication Department, Universitas Gunadarma, Depok, Indonesia [email protected]
2Management Department, Universitas Gunadarma, Depok, Indonesia
3Informatics Engineering Department, Universitas Gunadarma, Depok, Indonesia [email protected]
Abstract
Economic empowerment through cooperative and small and medium enterprises remains a
top priority in the long-term national economic development. Financial Services Cooperative
in Srengseng Sawah, South Jakarta, implements sharia system that emphasizes the concept of
profit sharing. Members of cooperative are scattered in 13 consultation meetings, that we call
“rembug”. The availability of better information will support the development and operation
of this cooperative. Computerized transactions and related reports will facilitate officers in
making decisions according to the financial condition of the cooperative. This research aims
at designing of a computer application for Sharia Cooperative Financial Services in
Srengseng Sawah. The system development life cycle approach is used with the special
reference to the application of object-oriented programming using Unified Modeling
Language (UML). The application is designed based on the user requirements and in
accordance with the existing business processes. The application provides capability to ease
the systematic documentation, faster administration services, increase the effectiveness by
reducing erroneous in data transactions and recording. By implementing the application, it is
expected that the cooperative has more capability in increasing its performances and thus
provide better services and profits that will lead to higher contribution in alleviating poverty
of the community under its operations.
Key words: computer application design, financial services cooperative, sharia.
AICIE Page 10
Paper No. ICOSEC-1-071058
Hahslm Islamic Economics Methodology
Roikhan Mochamad Aziz1
1Islamic Economics Department, State Islamic University (UIN) Jakarta, Jakarta, Indonesia
Abstract
The philosophy espoused in Islamic Economics Methodology Hahslm based on ontology
Islam, with epistemology of kaffah, and its axiology in the form of dual harmonized. The
philosophy of economic will be benchmarked between the supply demand curve to a tree as
an universal compliance. There is the source of the Quran that interpret the economic
philosophy that every definite theory approach should be put god in it. To study the origin of
the formula Hahslm, this research will refer specifically to the Quran Surat Al-Baqarah [2]:
208 and Al-Hijr [15]: 87 then compare with the curve of the PQR due to a tree as landmark.
With the equation: H = a. h (s, l, m) where the slm = root trunk leaves or PQR. SD Curve
economics theory that fits the universal compliance of the tree, it gives to the variable R or
worship that became the new variable in accordance with the philosophy of the leaves in a
tree, as part of a tree to symbolize the value of worship. It needs a non-linear way of thinking
to improve the existing methodology, from conventional thinking that displays only the price
changes, without weights. The methodology of the Islamic Economics polarized the meaning
of worship that would be a single answer in general terms of the genuine of the methodology
in the future of Islamic economics.
Keywords: quran, kaffah, methodology, hahslm, worship
AICIE Page 11
Paper No. ICOSEC-1-071059
Comparing Efficiency of Conventional Insurance
and Takaful in Indonesia
Lely Ratwianingsih1 and Vita Kartika Sari2
12Faculty of Economic and Bussines,Universitas Sebelas Maret, Surakarta, Indonesia
[email protected], [email protected]
Abstract
The insurance industry plays an important role in the development of social and economic
sectors in Indonesia. Insurances are similar to banks, serve the needs of business units and
private households in financial intermediation by reducing the risk and uncertainty. Nowdays,
there are two system of insurance in Indonesia, the convensional and takaful. Takaful,
insurance with sharia base grows well in Indonesia. This argument is interesting to be studied
deeply. This study aims at comparing the Indonesia’s Takaful and conventional insurance
companies in terms of efficiency for a four years period, 2011 to 2014. Data which is used in
this research is secondary data and will apply Data Envelopment Analysis (DEA) approach to
estimate the efficiencies. The results from this research is conventional insurance firms are
more efficient as compared to Takaful firms.
Keywords: insurance, takaful, data envelopment analysis
AICIE Page 12
Paper No. ICOSEC-1-071060
Tax Implementation in Indonesia According to Syariah
Laili Faiza Ulfa
Center for Islamic Economic Studies Universitas Sebelas Maret, Surakarta, Indonesia
Abstract Tax is source of Indonesian income that contributes to APBN (State Budget /Anggaran
Pendapatan Belanja Negara) about 80%. Tax are includes central tax,regional tax, and
regional retribution. The majority of tax payers are moslems (88% of total Indonesian’s
population approximately 189.014 million people). According to the Tax Regulation,there are
two collections tax in Indonesia. They are tax and double tax. This ia a problem for
Indonesian moslems because double tax can be a burden for them. However, if we look in the
Islamic Economic System, Mufti permits tax for people’s advantage. Therefore, tax is for
moslems and non moslems. Meanwhile, double tax is only for the moslems. In the tax
regulation, double tax is credit for nett income.
Keywords: Tax, Income Tax, Double Tax, Islamic Economic System.
AICIE Page 13
Paper No. ICOSEC-1-071062
The Contribution of Islamic Banking Financing
to Micro, Small and Medium Enterprises: Case Study in Aceh Province Indonesia
Riswandi1 and Nahrul Hayah Ariga 2
1Department of Economics, Syiah Kuala University, Banda Aceh, Indonesia
2Pusat Informasi dan Kajian Ekonomi Aceh, Banda Aceh, Indonesia [email protected]
Abstract
Rapid development in Islamic Banking in Aceh may have a positive contribution to micro,
small and medium enterprises (MSMEs). In essence, the study is trying to test statistically
key factors that contribute to Islamic banking financing for the enterprises. Based on that, the
study examines the relation of depositor funds, non performing financing and inflation rate to
Islamic banking financing for MSMEs in Aceh. Monthly data reported in Islamic Indonesia
Banking Statistic spanning from January 2010 to December 2013 and published by Bank
Indonesia were used. To prove statistically the relation among variables of interest, the study
utilized a multiple linear regression model by taking into account MSMEs financing of
Islamic banking as dependent variable and depositor funds, non performing financing and
inflation rate as independent variables. The results of the study revealed that the depositor
funds has statistically a positive contribution to MSMEs financing. This result indicates that
the higher saving rate in Aceh, the more financing would be available for MSMEs. Even
though the non performing financing has also significant impact, the direction of relation is
not consistent with the theory where the variable should have a negative relation to the
MSMEs financing. However, the inflation rate were not statistically significant to Islamic
banking financing for MSMEs. Based on the results, the government of Aceh should
encourage Islamic banking to expand and capitalize their financing to boost the performance
of MSMEs.
Keywords: micro, small and medium enterprises, Islamic banking, non-performing finance.
AICIE Page 14
Paper No. ICOSEC-1-071065
Is There Income Equalization Concept
in Islamic Economics Perspective?
Wahyu Hadi Wibowo1 and Anniza Citra Prajasari2
12Islamic Economics Studies, Post-graduate School, Gadjah Mada University, Yogyakarta, Indonesia
[email protected], [email protected]
Abstract
Economic gap has become an issue that is often discussed in various Islamic economics
studies. This paper will provide new insight in addressing economic disparities and equitable
distributions of income. This paper will show that that there are no strong views on efforts to
reduce economic disparities. So the main goal of distribution in Islamic economics is to
reduce poverty instead of creating income distribution equalization. Even if income
distribution is realized, what more important is how to improve the living standards of the
poor to be better. So the main focus is not on equitable distribution of income, but increasing
the living standards of the poor. The method used in this paper is library research that focuses
on the concept of equity in Islamic rules according to some Islamic economists, as well as the
priorities between equity and poverty alleviation. This paper concludes that economic
inequality is not regarded as a problem that must be addressed in Islamic economy.
Difference in income (post-production) is something that is seen as fair, as long as the initial
resources (pre-production) are allocated equitably. However, there are issues that are much
more important to address than preventing or reducing economic gap, i.e. every rich person,
with support and help from the state, each is responsible for helping, ensuring, and improving
the living standards of the poor.
Keywords: income distribution, equalization, poverty, economics gap
AICIE Page 15
Paper No. ICOSEC-1-081171
Organizational Effectiveness Assessment of ZIS Institute Based on the Perception of HR/Staff of the ZIS Institute and Mustahik: ZIS Institute Case Study - in DKI Jaya
Yuswar ZB1, Hermien Triyowati2, and Yolanda Masnita3
123Trisakti University, Economic Faculty, Jakarta [email protected], [email protected], [email protected]
Abstract
This study is the second year of a three-year series of studies of ZIS, beginning in 2014. By
using Input - Output analysis, and based on the secondary data only from BAZIS DKI, the
results of the study showing the distribution of ZIS for health and education addressed to
Mustahik, potentially increasing output of DKI, by sector, about 2x distribution of ZIS
(approximately 43.8 M); while channeling ZIS, proved positive influence and significance to
the improvement of social welfare of Mustahik. Based on this study, in 2015 we conducted a
study to analyze the Effectiveness Organization of ZIS Institutions - in DKI Jaya, using the
perception of HR / Staff of ZIS institutions. By using Path Analysis, the results showed that
Employee Satisfaction and Employee Loyalty of HR / Staff Institute of ZIS, positive and
significance influenced the Organizational Citizenship Behavior with immediate effect
respectively by 52.6% and 45.4%, and further OCB proved not mediating variable, but have a
positive and significance influenced to Organizational Effectiveness (46,4%), accompanied
by Employee Loyalty with immediate effect at 66.9%. While on the other hand,
Organizational Effectiveness also proved a positive and significance influenced the Mustahik
satisfactions (78.9%). The results provide information for future improvements of ZIS
Institute, became more professional.
Keywords: Employee Satisfaction (ES); Employee Loyalty (EL); Organizational Behavior (OB), Organizational Citizenship Behavior (OCB); Organizational Effectiveness (OE; Mustahik satisfactions (MS)
AICIE Page 16
Paper No. ICOSEC-1-081675
Legislate of Syirkah Legal Entity in The Legal System
in Indonesia
Burhanudin Harahap1 Luthfiyah Trini Hastuti2, and Solikhah3
123Faculty of Law, Sebelas Maret University, Surakarta, Indonesia [email protected], [email protected], [email protected]
Abstract
This study sought to unravel the problems of incompatibility of legal entities for the BMT
due to differing philosophies between BMT with the cooperative. Legal entities which have
proximity philosophy with BMT is syirkah concept in the form of legal entity Baitut Tamwil.
But formal legally Baitut Tamwil legal entity has not been recognized under the provisions of
applicable law. So the attempt to legalize the legal entity Baitut Tamwil is one way to restore
employment patterns in accordance with the philosophy of the establishment BMT. This study
aims to identify strategic steps that must be done so that the legal entity Baitut Tamwil
understood, recognized and accepted by the government and identify factors that can hinder
or can encourage acceptance Tamwil Baitut legal entities in the legal system in Indonesia.
The results showed there were several strategic steps that must be done so that the legal entity
Baitut Tamwil acceptable in the legal system in Indonesia is at several stages of the first
phase pralegislasi among others, the planning, preparation, and drafting legal entities Baitut
Tamwil. The second stage is the legislation, among others; discussion, approval and
promulgation. The third stage, among others; documentation, dissemination, education, and
implementation. Factors that may encourage acceptance of legal entities Baitut Tamwil
among other things because of the need for legal entities in accordance with the work patterns
BMT whose numbers are increasing in Indonesia. Keywords: legal entities, syirkah, baitut tamwil, BMT
AICIE Page 17
Paper No. ICOSEC-1-081677
Interpretative Phenomenological Analysis for Implementation
of Qardhul Hasan on Islamic Banking Indonesia
Falikhatun1, Yasmin Umar Assegaff2, Hasim3
123Faculty of Business and Economic and Center for Islamic Economic Studies, Universitas Sebelas Maret, Surakarta, Indonesia
Abstract Interpretative Phenomenological Analysis (IPA) aims to explore in detail how one
understands them self and their surroundings, about the meaning of their experience of
something. Therefore, this study aimed to analyze about Qardhul Hasan implementation on
Islamic Banking Indonesia based on Islamic Econonomic Theory. The approach used in this
research is phenomenology. The methods of data collection are in-depth interviews,
observation, and documentation, while the analysis taken is Interpretative Phenomenological
Analysis (IPA) and Syar'i Analysis. Interpretative Phenomenological Analysis (IPA) results
show that according to the experience of Muqridh implementations object of Qardhul Hasan
on Islamic Banking Indonesia include Productive Loan Fund Distribution and Social Fund
Distribution. while the results of the study concluded that based on Syar'i Analysis, most of
Qardhul Hasan objects are accordance with the Islamis Economic Theory. Suggestion of this
research is primarily proposed for next researcher can develop institutional research related to
Islamic Banking, Islamic banking products, supervision of Islamic banking, and Accounting
for Islamic Banking.
Key Words: Islamic Economic Theory, Muqridh, Qardhul Hasan
AICIE Page 18
Paper No. ICOSEC-1-082485
Corporate Governance and Islamic Social Reporting:
a Comparison in Indonesia, Malaysia, and Gulf Cooperation Council
Maftuhatul Barokah1 and Ibrahim Fatwa Wijaya2
1Accounting Department, STIE Swastamandiri, Surakarta, Indonesia [email protected]
2Accounting Department, Universitas Sebelas Maret, Surakarta, Indonesia
Abstract This paper discusses how corporate governance influences the disclosure level of Islamic
Social Reporting (ISR) in Islamic banks. The authors observed 26 Islamic banks in Indonesia,
Malaysia and Gulf Cooperation Council (GCC) countries from 2011 to 2014. The research
consists of corporate governance variables namely board size, board meeting, CEO duality,
female shariah board size, shariah board size, board independence size, board independence
meeting, return on assets, and leverage as independent variables and level of ISR disclosure
as dependent variable. Indexing is used to know the level of ISR disclosure taken from annual
report of Islamic banks. Multiple regression analysis was used to examine variable of
corporate governance towards ISR disclosure. The result shows that only board size has
positive significant on ISR disclosure and board independence size has negative significant
on ISR disclosure. Other variables have no significant on ISR disclosure of Islamic banks.
Keywords: corporate governance, annual report, Islamic social reporting, Islamic banks
AICIE Page 19
Paper No. ICOSEC-1-082886
The Growth of Islamic Banking: Efficiency of Islamic
Banking Compared to Conventional Banking in Indonesia From 2005-2014 and Relation to Its Market Share
Imas Siti Fatimah Nursyiam1 and Taufik Faturahman2
1School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia
[email protected], [email protected]
Abstract Islamic banking has good reputation in core of global banking market, the growth rate of
Islamic banking has been 1.9 times higher than conventional banking over 2009-2013. In
Indonesia, Islamic banking has rapidly growth over the year 2001 to 2010; It captured by the
average total asset growth of Islamic banking industry in Indonesia exceeded 50% per
annum. As the biggest Muslim population country in the world, Islamic banking in Indonesia
couldn’t attain the target of market share that Bank Indonesia given. Even they have rapidly
growth, the condition of its market share is the core of problem for this research, how
efficiency of Islamic banking in Indonesia over 10 years from 2005-2014 compared with
conventional banking. How the correlation between efficiency and its market share. DEA
method with intermediation approach applied to determine the yearly efficiency of Islamic
banks compared with conventional banks, and spearman’s correlation applied to determine
the correlation between efficiency of islamic banks towards its market share. In year 2009
and 2013, the average of efficiency Islamic banks is statistically significant higher than the
average of efficiency conventional banks. While, for the other years, there is no statistically
significant different. The spearman’s correlation found, overall, there is statistically
significant correlation between efficiency of banks with their market shares. For the
correlation results, based on type of banks, there is statistically significant relationship
between efficiency of Islamic banks with their market share, with “moderate” correlation, it
means that efficiency of Islamic banks has an influence to their market share, but there are
other elements that influence the market share of Islamic banks condition in Indonesia.
Keywords: Islamic banks, Data Envelopment Analysis (DEA), Efficiency, Intermediation approach, market share.
AICIE Page 20
Paper No. ICOSEC-1-090100
Religiosity Level and Saving Decision in Baitul Maal wat
Tamwil: a Case Study in Karanganyar
Yudis Cipta1 and Ibrahim Fatwa Wijaya2
1Accounting Department, STIE Swastamandiri, Surakarta, Indonesia 2Accounting Department, Universitas Sebelas Maret, Surakarta, Indonesia
Abstract
This study examines the impact of religiosity level of the customer in shaping consumer`s
choice of Baitul Maal wat Tamwil (BMT). Respondent’s self administered interview was
conducted using questionnaires. This research used a purposive sample of 100 customers of
BMT in Karanganyar district. The finding of this study shows that customers who have
devout religiosity level prefer shariah as the first reason for saving money in BMT. In
addition customers who have moderate religiosity level prefer convenience and customers
who have cassually religiosity level prefer service for selecting BMT.
Keywords: BMT Selection Criteria, Religiosity Level, Karanganyar
AICSP Page 21
Paper No. ICOSEC-2-062418
Individual Factors, Social and Cultural Rights to Purchase
Decision Motif Batik Clothing
Diah Nenik Hartanti1
1Department of Management, Faculty of Economics, University Gunadarma, Depok, Indonesia
Abstract Scientific writing is intended to determine whether the individual factors, social and cultural
influence consumers in making purchasing decisions batik clothing, and to know what is the
most dominant factor among the three factors mentioned above. To analyze the behavior of
the election, then conducted by validity, reliability and multiple linear regression. Validity of
test results across the variable is declared invalid and of variable reliability test for the entire
perfaktor are reliable. Samples were taken from Tanah Abang Market visitors who ever buy
and use batik as many as 250 respondents. The survey results revealed that the individual
factors, social and cultural influence purchasing decisions batik fashion simultaneously and
partially. It can be seen through the results of multiple linear regression test, for Simultaneous
test (test f) f obtained 54,700 count is greater than f table is 2,631 means that the individual
factors, social and cultural influence simultaneously (simultaneously) on consumers in
making purchasing decisions fashion batik. Based on the partial test (t test), obtained t count
each factor is greater than t table (1,970), so the individual factors, social and cultural
influence on their own (partial) on consumers in making purchasing decisions batik clothing.
While most dominant factor among the three factors are the individual factors because it has
the highest t is 5,080.
Keywords: purchase decision, individual factors, social factors, cultural factors
AICSP Page 22
Paper No. ICOSEC-2-062524
Analysis of Adversity Quotient (AQ) in Human Resource
Development Through Outbound Training
Aris Munandar1 and Adella Hotnyda Siregar2
12Post Graduate UPN ”Veteran“ Jakarta, Jakarta, Indonesia pascaupnvj@gmail,com
Abstract
This research aims to analyze the Human Resource Development through outdoors training.
The Object research is to analyze the development of the Adversity Quotient of human
resources through outbound training. The development of human resources depends on the
level of Adversity Quotient and can be seen and developed in the outbound training.
Research method used a qualitative method approach with examined the descriptive aspect
of the object and the subject of research, interpretive aspect, phenomenology, and case study.
Base on the aspects examined in this study can be expected over the firm presents a
framework of analysis used in this research. Subjects in this study consisted of 8 employees
PT. Adiprana Catur Sentosa Tbk. They had an age between 23-30 years old and university
degree in Strata 1 (S1). Methods of data collection in this study using Focus Group
Discussion (FGD), observation, and interviews, as well as complementary post test data. The
results show that there is a large influence on the Adversity Quotient (AQ) participants after
training outdoors. This caused a great influence because it deals with the touching aspects of
Adversity Quotient (AQ), in particular aspects of the control (control), owners and origin,
reach, and aspects of endurance (durability). In conjunction with the Human Resource
Planning, Adversity Quotient (AQ) can be implemented in the individual planning talent.
management as a very appropriate step, as it can provide naturally profiling of individual
training for suggestions will be developed means of development and Human Resource
Planning.
Key words: Adversity Quotient, Human Resource Planning, Human Resource Development, outdoors training.
AICSP Page 23
Paper No. ICOSEC-2-062528
Myanmar Public Policy Toward Rohingya Ethnic After Internationalization of Rohingya Ethnic Refugee Issue
Randhi Satria1 and Andrian Saputra2
12International Relation Department, Universitas Sebelas Maret, Surakarta, Indonesia
[email protected], [email protected]
Abstract Rohingya ethnic refugee from Myanmar to several ASEAN countries has become both
regional and international issue. This issue put Myanmar governance in solving by
formulating and implementing a new policy either for their domestic politics or for their
international politics to prevent international ban for the country. This paper will try to take
analyze deeper about how Myanmar policy toward Rohingya ethnic after the
internationalization of Rohingya ethnic refugee issue? This paper also will discuss about
potential ban from international community either by state or non-state actor toward
Myanmar, and also the rule of ASEAN as a regional organization in solving this issue. As we
also knew that ASEAN countries will soon face the ASEAN community and this issue can
never be a good sign as a starting point. This paper purposed to contribute to give
constructivist thought on Myanmar governance to take responsibility toward Rohingya
ethnic. This paper will also explore on the terminology of state responsibility to protect,
human security, and regional organization. This paper will use descriptive-causative method
in analyzing the issue. This paper also gives hypothesis which explain Myanmar
responsibility to protect the people instead of luring them outside the country. The ignorance
and arrogance of Myanmar governance could cause several consequences such as
international ban, and also disintegration of ASEAN.
Keywords: Myanmar, Rohingya, Public policy, ASEAN
AICSP Page 24
Paper No. ICOSEC-2-062530
Predictors of Behavioral Intention to Use Public Railway
Services: a Comparative Study Between Two Age-Segmentations
Savira Miranti1 and Anya Safira2
1Department of Management, Universitas Indonesia, Depok, Indonesia
[email protected], [email protected]
Abstract Jakarta, the capital city of Indonesia, is facing a serious traffic congestion problem that
remains unsolved. This is mainly caused by the annual private vehicle growth that has
outrageously outnumbered the growth of roads in Jakarta, which in turn makes roads not have
enough space (Transportation Services of Jakarta City Government, 2011). The Governor has
stated that as long as Jakarta does not have a decent rail-based mass transportation system,
the city traffic will always be congested. This study aims to examine the predictors of
passengers’ behavioral intentions in using railway services. The respondents were divided
into two age-segmentations, and the data are analyzed separately. A conceptual model of
behavioral intention’s predictors, which consists of service quality, perceived value,
corporate image and customer satisfaction, are tested quantitatively by using multiple
regression and independent sample t-test. A questionnaire was used to collect data from the
passengers of KRL Commuter Jabodetabek (the railway service operating in Jakarta and its
satellite cities). The results show that the different age groups have different evaluations and
determinants for using the railway services. The older group value assurance as an indication
of service quality. For the younger group (<29 years old) perceived value is an important
determinant of customer satisfaction, whereas for the older group (29 years old and older) it
is service quality which influences customer satisfaction. Both groups consider corporate
image and customer satisfaction as determinants of behavioral intentions. Implications, both
theoretical and managerial are discussed to provide suggestions for strategic policy making.
Keywords: behavioral-intention; railway-services; age-segmentations; KRL-Commuter; Jakarta.
AICSP Page 25
Paper No. ICOSEC-2-062532
The Impact of Perceived Corporate Reputation,
Pride, Affective Commitment, and Job Satisfaction Towards Employee’s Awareness of Their Impact
on Corporate Reputation
Dindha Vitri Primadini1 and Muhammad Irfan Syaebani2
1Management Department, University of Indonesia, Depok, Indonesia [email protected], [email protected]
Abstract
Corporate reputation is a critical factor for company to achieve its goals. For employees,
corporate reputation is something they perceived but on the other hand it is something which
is shaped through the interaction with stakeholders. This study suggests that employee’s
awareness of their impact on corporate reputation (AICR) is positively affected by
employee’s perception of corporate reputation, pride, affective organizational commitment,
and job satisfaction. Hypotheses are tested using 161 data from employees of a stated-owned
company in Indonesia. Six-point likert scale is used for questionnaire format to reduce central
tendency of respondent’s response. The sampling technique is non-probability sampling due
to its nature of work which is most employees are having activity outside of office. Structural
Equation Modelling (SEM) is performed to test the hypotheses. Result suggested that
employee’s awareness of their impact on corporate reputation (AICR) is positively affected
by perceived corporate reputation and affective commitment but it is not affected by pride
and job satisfaction. Perceived corporate reputation (PCR) gives the strongest impact on
employee’s awareness of their impact on corporate reputation (AICR). It is concluded that the
most effective way to increase employee’s AICR is by shaping a good corporate reputation.
Keywords: affective commitment, AICR, job satisfaction, perceived corporate reputation, pride
AICSP Page 26
Paper No. ICOSEC-2-062537
Impact of Declining in Fertility on Female Labor Supply
Achmad Sjafii1, Nyigit Wudi Amini2, and F. Apriyanti3
1Airlangga University, Surabaya, Indonesia
2National Family Planning Coordinating Board, Surabaya, Indonesia [email protected]
3RiFi Ilmi, Education Institute, Surabaya Indonesia
Abstract
The Indonesian demographic changes during 1970-2012 have changed the age structure of the population significantly. One of the phenomenon which appear is a decline both in the fertility and mortality rate. Indonesia, likewise in most of the countries experienced declining of fertility and mortality rate. This will be followed by some positive impact on acceleration of economic. The decline in fertility rates has become one of the causes of the increased economy performance in several countries especially the case in the developing countries. The decline in fertility rate will lead to the increase of the percentage of the working-age population. The experience of developed countries and newly industrialized countries such as ’the tigers of Asia’, small ratio of young people to the working-age population are could prove positive implication to economic development. Demographic changes influenced economic development through the following channels: (1) as a result of an age-structure transition; (2) as a result of lower mortality rate and increasing longevity. An age structural transition causes decreasing in the portion of young population, while the portion of working-age population is increasing. This means the young age group dependency decreases relative to the total dependency burden. It has impact toward increasing supply of labor in economy, for example increasing female in labor market in developing countries. Studies show stated that falling youth-age dependency ratio contributed to the economic growth. This objective of paper is to examine relationship causality between the declining TFR (due to of demographic changes) and female labor participation (FLP) in Indonesia from 1990 to 2012 by Granger causality test. Keywords: fertility rate, female labor participation
AICSP Page 27
Paper No. ICOSEC-2-062643
The ASEAN Economic Community (AEC), Forest Fire and
Deep Ecology: An Analysis of Interrelationship Between Natural and Human Resources
Muhammad Rustamaji1 and Bambang Santoso2
12Faculty of Law, Sebelas Maret University, Surakarta, Indonesia
[email protected], [email protected]
Abstract
Indonesian forest territory reaching 99.6 million hectare is promising a great resource in facing of the ASEAN single market. However, a single market of such the ASEAN Economic Community (AEC) style gives a complex homework in ecological sector. Purpose of the writing is actually to show challenges that should be addressed when MEA establishes a single ASEAN market. Based on categorization of legal study’s analysis methods, the study is a dogmatic one developing jurisprudence as dogmatic of law (Rechtsdogmatiek). Results of the study showed that forest fire and the single ASEAN market has, consciously or not, created a new myth called rationality of commodity efficiency. Horkheimer and Adorno in their ' enlightenment dialectic' explained that efficiency, in economic, is a principle of market surpassing all kinds of feudal and religious restrictions. Thus, rationality is equated with efficiency. When efficiency is applied in dynamics of capitalist economy, then the entire field of human life is considered a commodity. Consequently, reification is in effect, namely when everything is a commodity so people is no longer enjoying but consuming and consuming without building any social relationships in a real sense. At such nadir, ecological damage is inevitable or it is even considered a reasonable price worth paying. The Law which is essentially an ethical conversation of human beings to produce justice is easily forgotten because of greed. In-depth perspective on ecology (deep ecology) that is essentially the interests of civilization begins to exclude. However, all such excesses of reification can be avoided when the law is still pursued progressively, so the law must arrive at radicalism in order to demolish assumptions of law. The Law is not only there to check on fairness, but it should produce justice and even a new kind of one, namely justice for the sake of future generation (intergeneration justice). Thus, it can be concluded that forest should not only be explored for its resources solely according to the reification trap of ASEAN single market, but it must be preserved for future human posterity because of considering the deep ecology. Keywords: AEC, deep ecology, forest fire
AICSP Page 28
Paper No. ICOSEC-2-070149
Phenomenon Selfie in Students Faculty of Economics,
Semarang State University, Indonesia
Nanik Setyorini1, Fian Mulyaga2, and Erik Adi Ponco N2
Economic Faculty, Semarang State University, Semarang, Indonesia [email protected], [email protected], [email protected]
Abstract
The development of communication technology today resulted in significant changes in
human life. Progress and development of communication technology, especially smartphones
could eventually alter the functions of a smartphone itself for the photography, one of which
is a selfie. The emergence developments of social media such as Instagram, BBM, Facebook,
Twitter, which provide profile photos and a feature to share photos resulted in students trying
to follow the developments and take advantage of it. This research titled “Phenomenon Selfie
in Students Faculty of Economics, Semarang State University, Indonesia”. The research
process is done by examining the custom when selfie, perceptions of selfie, motivation do
selfie, and media used to selfie. The method used in this research is qualitative research
methods. Data collection techniques is with a survey questionnaire with closed questions.
Population of this research were all students of the Faculty of Economics, Semarang State
University, by taking a sample of 18 male students and 20 female students. Methods of
sampling with purposive sampling technique. The purpose of this research was to determine
how the phenomenon in an environment selfie student at the faculty of economics, Semarang
State University seen from the current aspect selfie habit, perception in selfie, the media used,
and the motivation to do selfie.
Keyword: selfie, habits, perceptions, motivations, media.
AICSP Page 29
Paper No. ICOSEC-2-070150
The Effect of Financial Information System Implementation to Performance Officer: Psychological Empowerment as an
Intervening Variabel (Empirical Study on the Device of Regional Coordinating Agency for Development of Cross County/City Region III Central Java Province, Indonesia)
Dona Primasari1
1Doctoral Student of Diponegoro University, Semarang, Indonesia
Abstract
This study examines the influence of implementation Government Financial Information
System (SIKD) to the and performance officer, and using the Psychological Empowerment
as intervening variabel. This research represents the empirical test which used convienence
sampling technics in data collection. Data were collected from 167 officer of local
government in central Java provinces. Data analysis used Structural Equation Model
(SEM) with the program AMOS 18.0. Result of hypothesis examination indicates that two
hypothesis raised are accepted
Keywords: Implementation of Government Information Financial System, (SIKD), performance officer, Psychological Empowerment
AICSP Page 30
Paper No. ICOSEC-2-070955
Cost Benefit Assessment of Water Use of Mine Void (Study at Postmining Void PT.Multi Harapan Utama, Margahayu Village, Kutai Kertanegara Regency, East
Kalimantan Province)
Putu Diyan Diwyastra1, Setyo Sarwanto Moersidik2, Soemarno Witoro Soelarno3
123Environmental Science, University of Indonesia, Jakarta, Indonesia
[email protected], [email protected], [email protected]
Abstract Mine void is a problem that abandoned mines after mining ends. The loss of function of the
mine void water as raw water resources may lead to lower values of environmental services.
To restore the value of environmental services, void water management is required to recycle
void water as raw water. This study was conducted to determine the characteristics of
community that use mine void water resources as a raw water, estimate willingness to pay
(WTP) community against the use of raw water obtained from the mine void water,
determine factors that affecting WTP society, assessing the financial feasibility of utilization
of mine void water as a raw water and freshwater fish farming. The study was conducted by
gathering information through questionnaires in the Margahayu village involving 100
respondents. Results of the study are the characteristics of the mine void water users showed
69% of respondents aged 41-60 years old, dominated by the man as much as 87%, with most
education level is junior high school, income ranged less than Rp.1.500.000,00 per month
with a percentage of 51%, the number of water users by 3-5 persons per household, and the
amount of water needs is ranged 8-31 m3/month/household. The average value of WTP Rp.
5,620.00 per m3 which is influenced by education, income, and the amount of water needs.
Based on the financial analysis is obtained value of Net Present Value (NPV) of
Rp.1.528.812.844,21; Net Benefit-Cost Ratio (B/C) of 2.56; IRR of 17.3%. Mine void water
utilization feasible and provide benefits to the community.
Keywords: Mine Void Water
AICSP Page 31
Paper No. ICOSEC-2-071064
Factors Affecting Infant Mortality Rates in the Asean-5
Vita Kartika Sari1 and Dewi Ismoyowati2
12Faculty of Economic and Bussines,Universitas Sebelas Maret, Surakarta, Indonesia
[email protected], [email protected]
Abstract Human capital is the main asset for driving the economy. The purpose of this paper is to
examine the effect of GDP/capita, fertility rate, health expenditure, and the number of female
workers to the infant mortality rate in ASEAN-5. We use pooling regression to answer the
problem. The expected results from this research are GDP/capita will be negative, fertility
rate will be positive, health expenditure will be negative, and female workers will be positive.
Keywords: infant mortality rates, economic growth. socioeconomic status
AICSP Page 32
Paper No. ICOSEC-2-072866
Online Internal Communication Design in Support of
E-administration in Karanganyar Regency
Cicilia Dyah Sulistyaningrum Indrawati1, Andre Noevi Rahmanto2, Anton Subarno3, and Rosihan Ari Yuana4
1234Universitas Sebelas Maret, Surakarta, Indonesia
[email protected], [email protected], [email protected], [email protected]
Abstract
Fast administration communication is the newest trend in information technology era. Parties
involved in the communication no longer need to meet face to face to convey information.
Even, the information's follow up can be monitored through that information technology. The
objective of this to design on-line internal administration communication system in support of
e-administration in Karanganyar Regency. The research method used an inductive deductive
study. The deductive study was employed to analyze the regulations related to the governance
of the archive. The inductive study was also exercised to identify problems of administrative
service implementation, including to identify (a) the most dominant administrative services,
(b) the tools standardization, (c) the system that is being used, and (d) the data distribution.
The sampling used purposive random sampling. The data analysis technique used the factor
analysis, which function is to discover the strength of each item in each indicator, whether it
is feasible to maintain or not. The item testing was done using Confirmatory Factor Analysis.
The result of the research demonstrated that the system design involved six main entities,
namely: incoming mail, record staff, head, administration, archivist, and disposition executor.
The incoming mail will be received by record staff, who then enters it into the system. The
archivist's job is to mark the letter data that the original letter has been archived. The
administration department will forward the letter data to the head, who will then issue a
disposition. Based on the disposition note, the letter data will be forwarded to the letter/duty
executor. When the execution is completed, the letter data in the system will be marked.
Keywords: E-administration, internal communication, government.
AICSP Page 33
Paper No. ICOSEC-2-080768
Grand Design of Investment Cooperation
in West Java Province
Helin Garlinia Y1 and Okky Rizkia Y2
1Business and Manajemen Faculty, Widyatama University, Bandung, Indonesia [email protected], [email protected]
Abstract
Government of West Java Province, has many limitations to explore the existing potential.
While the demands of such rapid development, in order to realize a prosperous society in
West Java. To that end, the pattern of investment pattern of mutually beneficial cooperation
and can provide added value to regional development. The problem that occurs is the absence
of a standardized format of the grand design of investment, both in West Java or Indonesia.
Many double standards or policies applied between one region and another differently so
confusing even made into dissuade investors to invest in Indonesia. Preparation of investment
cooperation policy in West Java is certainly not out of the existing corridor signs. Some
references staples like; West Java Provincial Regulation No. 21 of 2011 on investment; or the
West Java Governor Regulation No. 80 of 2013 on the general plan of capital investment in
West Java province. Thus, policy making investment cooperation, has a clear technical guide
because it has no line of policy and legal law. The purpose of this study was to overcome the
problem of investment and investment in West Java because there are no specific guidelines
made by the region. So this led to the existence of a double standard on the part of investors
and local. grand format design investment cooperation can be used as a reference for the
Agency for Investment and Promotion Coordination West Java as well as the investors in the
country and abroad.
Keywords: Investment, Grand design, Jawa Barat
AICSP Page 34
Paper No. ICOSEC-2-081272
The Influence of Corporate Social Responsibility Disclosure to Financial Performance in Indonesian Mining Companies
Anisa Wulandari1, Elva Nuraina2, and Purweni Widhianningrum3
123Accounting Education Departement, IKIP PGRI Madiun, Madiun, Indonesia
[email protected], [email protected]
Abstract This study aims to examine the influence of corporate social responsibility disclosure to
financial performance in Indonesian mining companies. The population in this study are all
mining companies that member of Indonesia Stock Exchange during three years. The
samples are 11 companies that eliminated using purposive sampling. The analysis methods
are using multiple regression analysis. The results showed that coporate social responsibility
disclosure has no effect to return on investment. This can be caused by the majority of
Indonesian mining companies are still depend on foreign investment, and this could be one
reason why our social and environmental responsibility laws can not be enforced. Besides
that, the regulation of social and environmental responsibility did not clearly indicate the
amount of fines to be paid, sanctions and penalties for those who commit violations.
Keywords: Corporate social responsibility, return on investment financial performance, and mining companies.
AICSP Page 35
Paper No. ICOSEC-2-081373
The Influence of Return on Assets (ROA) on Stock Return
with Dividend Pay out Ratio (DPR) as Moderating (Empirical Study on Manufacturing Company Listed in
Indonesia Stock Exchange Period 2011 -2013)
Bagus Dwi Satyaningprang1, Isharijadi2, Nik Amah3
123Accounting Education Departement of IKIP PGRI Madiun, Madiun, Indonesia [email protected], [email protected]
Abstract
This study aimed to examine the influence of ROA on stock return with the Dividend pay out
ratio as a moderating variable on manufacturing companies listed in Indonesia Stock
Exchange period 2011-2013. This study population is manufacturing companies listed in
Indonesia Stock Exchange. The sample in this study amounted to 28 manufacturing
companies during the period 2011 - 2013. Sampling technique uses purposive sampling. The
analytical tool used in this study is simple linear regression analysis and Moderated
Regression Analysis (MRA). Based on the results of simple linear regression analysis
significance value of 0,010 which means that the variable (Return On Assets) ROA positive
and significant effect on stock return then H1 accepted. Based on the test Moderated
Regression Analysis (MRA) obtained significant value 1 which is the product of interaction
between the variables x and z variables for 0,182 it can be concluded that the interaction
between the ROA and the House has no effect on stock returns. This means that the Dividend
pay out ratio is not moderating variable and can’t strengthen the relationship with stock
returns ROA then H2 was rejected.
Keywords: Return On Assets (ROA) , Return, Dividend Pay out Ratio (DPR), moderating
AICSP Page 36
Paper No. ICOSEC-2-082078
The Influence of Corporate Resources and Value Creation
on Business Performance: a Research on Rural Bank Owned City District Government of West Java and Banten
Iwa Karniwa1, Sucherly2, and Ernie Tisnawati Sule3
123Faculty of Economics & Business,Padjadjaran University,Bandung-Indonesia [email protected], [email protected], [email protected]
Abstract
The Services Industries of Rural Bank in Banten and West Java are facing problems of poor
business performance due to the value creation which is not optimally running and a low
ownership of corporate resources. Research objectives are to obtain the results of a study of
the influence of corporate resources and the value creation on the business performance in
banking service industries of Rural Banks in Banten and West Java. The method used are
descriptive and explanatory survey. The unit of analysis is companies of Rural Banks in
Banten and West Java. Time horizon in is cross-sectional, where the study was conducted in
one time simultaneously.. Data were analyzed using descriptive and quantitative. Hypothesis
testing was utilized by PLS model (Partial Least Square). The research findings has revealed
that the management of Rural Banks in Banten and West Java, not yet have sufficient
resources and have not developed a good value creation for improving business performance.
There is a simultaneous influence of corporate resources and the value creation on the
business performance. The influence of value creation was more dominant than the corporate
resources in improving business performance.
Key Word: Corporate Resources, Value Creation, Business Performance
AICSP Page 37
Paper No. ICOSEC-2-082080
Qualitative and Quantitative Analysis of ASEAN Free Trade Agreement: An Approach of Global Trade Analysis Project
(GTAP) Model
Ana Shohibul Manshur Al Ahmad1 and Mulyadi2
Department of Economics Development, University Sebelas Maret Indonesia [email protected], [email protected]
Abstract
The wave of regionalism (Regional Trade Agreement-RTA) in the form of free trade and preferential trading agreement (PTA) has been growing rapidly after 1990. ASEAN as a form of regionalism in South East Asia area has established a Free Trade Agreement (FTA), both internally and externally. The purpose of this study is to analyze both qualitatively and quantitatively of the effect of free trade cooperation in the ASEAN formation + 5 FTA (AJFTA, AIFTA, ACFTA, AKFTA, and AANZFTA). Quantitative analysis in this study used Computable General Equilibrium (CGE) model with Global Trade Analysis Project (GTAP) approach. The simulation in this study covers partial and full liberalization. Free trade cooperation among ASEAN members with Japan, India, China, Korea, Australia, and New Zealand in the schema ASEAN + 5 FTA, provides bigger benefits in full liberalization scenario for all regions, except Cambodia and Australia-New Zealand. The formation of ASEAN + 5 FTA has formed a trade creation in the form of less efficient domestic production transfer, which is replaced by more effective import among FTA member countries. Welfare, real Gross Domestic Product (GDP), international trade, and the investment of all countries joined in ASEAN + five FTA has increased. India is a country which experiences the highest increase in welfare, while Vietnam experiences the highest increase in real GDP, international trade, and direct investment. In the sectoral analysis, partner countries’ balance of trade (Japan, India, China, Korea, Australia, and New Zealand) compared to ASEAN member countries balance of trade, the condition is better than the vice versa. The effect of resources usage allocation (land, labor, and capital) for ASEAN countries is more focused on the sector of agriculture product, food, textile, and some extractive industries and technologies, while for the partner countries is more focused on heavy industry, technology, equipment, construction, and services. Keywords: Regionalism, FTA, ASEAN + 5 FTA, GTAP,
AICSP Page 38
Paper No. ICOSEC-2-082083
Creative Accounting Model for Increasing Banking
Industries’ Competitive Advantage In Indonesia
Supriyati1 and Erida Herlina2
STIE Perbanas Surabaya, Surabaya, Indonesia [email protected]; [email protected]
Abstract
Bank Indonesia demands that the national banks should improve their transparency of
financial condition and performance for public in line with the development of their products
and activities. Furthermore, the banks’ financial statements for Bank Indonesia has become
the basis for determining the status of their soundness. In fact, they tend to practice earning
management in order that they can meet the criteria required by Bank Indonesia. For internal
purposes, the initiative of earning management has a positive impact on the performance of
management. However, for the users of financial statements, it may differ, for example for
the value of company, length of time the financial audit, and other aspects of tax evasion by
the banks. This study tries to find out 1) the effect of GCG on Earnings Management, 2) the
effect of earning management on Company value, the Audit Report Lag, and Taxation, and 3)
the effect of Audit Report Lag on Corporate Value and Taxation. This is a quantitative
research with the data collected from the bank financial statements, GCG implementation
report, and the banks’ annual reports of 2003-2013. There were 41 banks taken using
purposive sampling, as listed on the Indonesia Stock Exchange. The results showed that the
implementation of GCG affects the occurrence of earning management. Accounting policy
flexibility through earning management is expected to affect the length of the audit process
and the accuracy of the financial statement presentation on public side. In the long term,
earning management is expected to improve the banks’ competitiveness through an increase
in the value of the company. Explicitly, earning management also affects the tax avoidance;
therefore, the banks intend to pay lower taxes without breaking the existing legislation
Taxation Provisions.
Keywords: Good Corporate Governance (GCG), earning management, Audit Report lag, Company value, and tax avoidance.
AICSP Page 39
Paper No. ICOSEC-2-082900
Root Cause Analysis of Suka Mulya Cooperative Closedown
by Using Current Reality Tree
Itsnaini Fathu Rahmah1 and Santi Novani2
1School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia [email protected], [email protected]
Abstract
Cooperative serves to develop SMEs, while SMEs contribute in national economy and labor
absorption. In 2003, there were 42.4 SME units able to absorb 79.03 million workers, but the
irony is many Cooperatives were closed and could not develop SMEs, including Suka Mulya
Cooperative which has 57 SMEs in 2002 and the remaining 33 units SMEs in 2003. The
cooperative was not able to help the craftsmen who at that time go to bankrupt. Seeing this
problem researchers intend to examine the root causes that lead Suka Mulya Cooperative to
be closed down, moreover Suka Mulya is the second larger doll producer in Bandung after
Sayati, but it was the first Cooperative of doll craftsmen was built there. Primary data were
obtained from in-depth interviews with the stakeholders. Situational Appraisal at Kepner
Tregoe theory used to describe the problem at that time, Current Reality Tree theory is used
to find the root causes, and Conflict Resolution Diagram is used to find solutions to the core
problems that are found.
Keywords: Cooperatives, Root Cause Analysis, the Current Reality Tree, Conflict Resolution Diagram.
AICSP Page 40
Paper No. ICOSEC-2-072865
Development of Office Administration Education Bachelor
Program Lecturers’ IQF-based Competencies
Ign. Wagimin1, Wiedy Murtini2, Hery Sawiji3, and Anton Subarno4
1234Universitas Sebelas Maret, Surakarta Indonesia
[email protected], [email protected], [email protected], [email protected]
Abstract
The objective of this research is to investigate the opportunity and need in developing the
Office Administration Education Bachelor Program lecturers’ competencies in accordance
with educational backgrounds and expertises owned by each lecturer. This research used the
quantitative descriptive research design. The data of research consisted of primary and
secondary ones. They were collected through questionnaire, interview, and literature review.
To improve the Office Administration Education Bachelor Program lecturers’ competencies
associated with the Indonesian Qualification Framework (IQF), it is necessary to specify the
lecturers with certain competencies which are mastered through education and training. With
the existence of the lecturers’ specifications, it is expected that the Office Administration
Education Bachelor Program lecturers will be more competent in their field. The
specifications that have been met include Office Administration, Business Administration,
Management, Educational Research and Evaluation, Learning Technology, Information and
Computer Technology, Technological and Vocational Education, and Communication.
Meanwhile, the unmet ones include mastery of foreign language, learning media, learning
strategy, accounting, office administration, and entrepreneurship.
Keywords: Competencies, lecturers’ specifications, IQF
AICEDC Page 41
Paper No. ICOSEC-3-061603
Malaysian Tourism Product Marketing
to Middle East countries
Azhar Harun1, Abd. Rahim Anuar2, Rohana Yusof3, and Suria Saniwa4
1234School of Government, COLGIS, Universiti Utara Malaysia, Kedah, Malaysia
Abstract This study was aimed to identify the strategies and marketing effectiveness of Malaysian tourism products to Middle East countries. The general objectives of this study are to identify the strategies of tourism products in Malaysia and its marketing to Middle East countries. They are as the following: (i) to identify the strategies in attracting tourists from the Middle East countries to Malaysia and (ii) to study how the tourists in Malaysia are effective for the Malaysian economy. It was conducted within a quantitative method using questionnaires and observation techniques for collecting some data related to the hypotheses of this study. These data then were processed into the form of descriptive output that together with T-test and correlation outputs. This study has found that a lot of tourism products affecting the influx of tourists from Middle East countries to Malaysia. These products include agro-based tourism and homestays, tourism eco-tourism, Islamic cultural tourism and Malay heritage. Furthermore, Malaysian natural environments are also some important factors for the tourists from the Middle East countries attraction to Malaysia. These factors are such as beautiful scenery, beaches, blue and comfortable atmosphere. In addition, we also found in Malaysia that many interesting places which can attract tourists from the Middle East countries to visit Malaysia, those places include Penang, Malacca, Sabah and Sarawak. And, through tourism products, Malaysia may increase its national income from foreign exchanges. Moreover, this study has also found that the promotion of Malaysia Tourism Ministry in the Middle East countries is playing a very important role in influencing the tourists to Malaysia. It’s clearly seen that the tourism products which marketing to the Middle East countries can increase the number of tourists to Malaysia. However, other than the brand of beautiful natural surroundings and a peaceful country that tourists from the Middle East countries come to Malaysia, there are also some impacts of those tourists who are targeting to Malaysia, some of the impacts include business dealings and personal matters as the examples. Keywords: tourism products, Middle East countries, Islamic cultural tourism.
AICEDC Page 42
Paper No. ICOSEC-3-061702
The Model of Economic Growth and Shift Share Analysis
in East Java Province, Indonesia
Wiwin Priana Primandhana1, Dewi Khrisna Sawitri2, and Ira Wikartika3
123Faculty of Economics and Business, UPN Veteran Jawa Timur, Indonesia
Abstract
Regional development is the motor of national development because without the support of
the areas the national development will be difficult to achieve. As well as the motto of
national development, the regional development has a motto “The regional development is
not only for the region, but it is also from the region itself”. So regional development is the
extractof innovation and combination of the area itself for the achievement of togetherness
progress and prosperity.One indicator of the achievedregional development is the economic
growth which continues to increase significantly. This means that economic growth can
continue to increase along with improvements that exist in the driving sectors of the
economy. The success of regional development are also assessed from the ability of the area
to meet the community needs and to develop all the existing potential. Each region has a
different potential, it can be seen from the advantages of each sector of the economy. Of
course,as there is the diversity of the existing character of the area then there are alsosome
advantages of different economic sectors. For instance,in Bangkalan, the visible dominant
sector is agricultural sector, but it will be different to compare with the agricultural sector in
Surabaya which tends to grow slowly. This proves that the potential of each region is indeed
different. Thisresearch showedin general details regarding with the potential areas of East
Java. It examinedthe economic growth sectors using the Shift Share analysis and the typology
of each region in East Java which consists of 38 regencies and cities.
Keywords: economic growth, regional development, shift share
AICEDC Page 43
Paper No. ICOSEC-3-062208
Food Commodities Trading Phenomenon
in Central Java Province
Harini1, Yunastiti Purwaningsih2, Malik Cahyadin3, and Emi Widiyanti4
1234PSP LPPM, Universitas Sebelas Maret, Surakarta, Indonesia [email protected], [email protected], [email protected],
Abstract
This study aims to analyse food commodities trading and pattern in Central Java Province.
Data uses primary data. It was obtained from survey to 350 sellers in traditional markets of
Central Java Region. Research methods involve descriptive qualitative and statistics, and
SWOT analyse. Food commodities in this research are rice, fruits, chicken, beef, fish, corn,
soybean, vegetable, egg, and tuber. Research results show that food commodities trading
were employed through three types. Respondents inform that they face problems both buying
and selling of food commodities. The problem on buying of food commodities involves
supply of crops from farmers, climate change, and price fluctuation. The problem on selling
of food commodities involves number of buyer, and durable goods. And then, they inform
that selling prices decision was driven by several factors such as transportation cost, number
of buyer, and profit. The regions as suppliers of food commodities involve Central Java, East,
Java, West Java, and import. Meanwhile, all food commodities were demanded by all
consumers in Central Java region.
Keywords: food trading, distribution channel, SWOT
AICEDC Page 44
Paper No. ICOSEC-3-062209
Manufacturing Industry Development and Phenomenon in Indonesia and Singapore: Lessons for Policy Makers
Siti Aisyah Tri Rahayu1 Lukman Hakim2 Malik Cahyadin3
123Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia
[email protected], [email protected], [email protected]
Abstract This study aims to describe manufacturing development and relationship of industry
indicators in Indonesia and Singapore. It uses secondary data from statistics institutions in
Indonesia and Singapore. Research data involves number of manufacturing industry, number
of labour, and output. The period of research is year 2005 – 2012. It was taken in the
condition of stabilize economy in the two countries. Research methods involve descriptive
statistics and correlation test. The research result shows that the development of
manufacturing industry tends to increase, and there are a correlation and causal between
business indicators. This gives a positive signal for the business and government. The
government of Indonesia can take an insight from the development of manufacturing industry
in Singapore. And then, the government of Indonesia can support business cooperation with
the manufacturing industry in Singapore. The business cooperation involves main technology
and expert. Meanwhile, the manufacturing industry in Indonesia can be driven to increase
export of commodity.
Keywords: Manufacturing industry, GDP, worker, correlation
AICEDC Page 45
Paper No. ICOSEC-3-062417
Explanatory Factors of Commercial Banks Efficiency
in Indonesia
Jaelani1, Suparno2, and Djoko Pitoyo3
Sekolah Pascasarjana Universitas Pendidikan Indonesia, Bandung, Indonesia
Abstract
The purpose of the study is to analyze the explanatory factors that affect the efficiency of
commercial banks in Indonesia. Banking efficiency is very interesting because banks have a
strategic role in financing the economy. However, the objective conditions of banking
efficiency are still low. It is shown that the BOPO and NIM indicators tend to rise. The
research using full sampling, which covers the Commercial Bank in 2009-2013, used
financial statements data published by Bank of BI—GDP data from the BPS. The analysis
used two-stage procedures. First, it measured the efficiency of commercial banks using DEA.
Second, it used Tobit regression models to examine the explanatory factors of bank
efficiency. The input variables consist of DPK, Fixed Assets, and Labor. The output variables
consist of Productive Assets, Interest Income, and feebased income. The efficiency
explanatory factors used Loan to Deposit Ratio (LDR), Non Performing Loan (NPL), net
interest margin (NIM) and Gross Domestic Pruduct (GDP). The results of research show the
level of banking efficiency is still low. However, commercial banks have the potential to
increase their outputs. The findings of empirical testing explanatory factors to the efficiency
of Commercial Bank, for variable LDR, NIM and GDP significantly affect the efficiency of
commercial banks, but NPL did not significantly affect the bank efeciency. For the
implications in the management practice, it suggested that the level of efficiency can be
improved by optimizing the implementation of financial intermediation both by optimizing
the selective credit expansion and by creating a level of GDP which is conducive to business
bank by monetary authorities. Therefore, the banking has high competitiveness in ASEAN
regional.
Keywords: Efficiency of Commercial Banks, Explanatory Factors, Data Envelopment Analysis (DEA), and Tobit regression models
AICEDC Page 46
Paper No. ICOSEC-3-06252
Indonesia’s Opportunity to Develop Maritime Potency:
Utilizing Chairmanship in IORA 2015
Septyanto Galan Prakoso1 and Aditya Very Cleverina2
1 Department of International Relations, Faculty of Social and Political Sciences, Universitas Sebelas Maret, Surakarta, Indonesia
[email protected], [email protected]
Abstract
A promising momentum arrives in 2015 where Indonesia is set to chair IORA (Indian Ocean
Rim Association), an organization which united nations with direct access to Indian Ocean.
This opportunity obviously aligns with a new focus of Indonesia to become a global maritime
fulcrum, declared by Joko Widodo as the new President. Therefore, Indonesia must optimize
its maritime potency and excavate its economy potentials. As a matter of fact, some
progressive development agenda to reconstruct the country’s maritime identity and excavate
its economy potentials have been done recently. Considering IORA's status as the only
regional forum which has the capability to manage Indian Ocean area, Indonesia as the
biggest archipelago country should never missed a chance on leading IORA in order to build
a strong partnership and cooperation between its members, and also to use the advantages for
the good. By actuating this condition, Indonesia has a chance to get two advantages: in the
domestic level, a significant progress in maritime sector of economic development can be
achieved; while in the international level, this condition can be taken as a shortcut to propose
the idea of Indonesia’s vision to international community in order to boost Indonesia's
bargaining position in the international maritime issues. This paper will use qualitative
descriptive method to analyze Indonesia's opportunity to become a global maritime fulcrum
by developing its maritime potency, the efforts which have and have not yet done to achieve
it, IORA's importance, and the utilization of IORA's chairmanship to achieve Indonesia's
objectives.
Keywords: Development, Maritime Potency, Indian Ocean Rim Association, Chairmanship, Indonesia
AICEDC Page 47
Paper No. ICOSEC-3-062523
Impact of Foreign Debt and Per Capita Income on Corruption:
Case Study in Asia
Agustinus Suryantoro1, A.M. Soesilo2, and Supriyono3
123Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia
[email protected], [email protected]
Abstract
At the international Confference in Brussel on March, 14th, 2007, President Director of
World Bank, Paul Wolfowitz said that the biggest obstacle of development in developing
countries is high rate of corruption (Gjelten,2012). By corruption, government couldn’t work
optimally. The aims of this research were to analyze impact of foreign debt and per capita
income on the rate of corruption in Asia countries. From this research, government could
make policy to reduce corruption so development in developing countries optimally done.
Model of analysis of this research is regression analysis. This model could estimate parameter
exactly (unbiased parameter) (Gujarati, 2010). Policy made on this research can be
responsibly. The results of this research are shown that corruption influenced per capita
income and not on foreign debt. Even foreign debt statistically insignificant on corruption,
but there was tending that higher debt of the country higher of corruption. To reduced
corruption, government can make policy to improve welfare and use foreign debt effectively
and efficiently.
Keyword: Corruption, Foreign Debt, Per Capita Income, Welfare.
AICEDC Page 48
Paper No. ICOSEC-3-062526
Spatial Analysis of Disparities in Banyumas Regency
Based on Socio-Economic and Infrastructure Indicators
Kikin Windhani1, Fajar Hardoyono2, Sudjarwanto1, and Hary Pudjianto1
1Department of Economics Development, Faculty of Economics and Business, Jenderal Soedirman University, Purwokerto, Indonesia
2Department of Madrasah Education, Faculty of Tarbiya and Teaching Science, State Institute on Islamic Studies-IAIN Purwokerto
Abstract
Since 1968, socio-economic and infrastructure development focused on the accessible region such as urban and suburban area. Rural, rim-land, coastal area, highland and isolated area were still ignored in national development priorities by the central and local government. This paper discusses the spatial analysis of disparities in Banyumas Regency, Central Java, based on indicators of socio-economic and infrastructure. We have collected data by doing a survey in 27 sub-districts in Banyumas Regency. Disparities in socio-economic development and infrastructure were measured using 14 variables, i.e. unemployment rate, consumer price index, wage index, poverty index, quality of life, quality of health, quality of education, criminal rate, quality of roadway, public transportation accessibility, quantity of traditional market, quantity of bridge, and the quantity of public school building. Multivariate statistical analyses based on principal component analysis (PCA) and hierarchical cluster analyses (HCA) were used to analyze the disparities. The analysis on 14 socio-economic parameter shows that unemployment rate, poverty index, quality of health, and quality of education are the main contributor for socio-economic and infrastructure disparity. Ajibarang, Gumelar, Cilongok and Rawalo had still a classic problem in economic development due to being the pockets of unemployment and poverty in Banyumas Regency. Based on social indicators, 6 sub-districts including Gumelar, Karanglewas, Lumbir, Pekuncen, Somagede, and Tambak should be more attention by local government due to a high percentage of poor people to access medical and health facilities. In addition, the ratio of people who are able to access higher education in Jatilawang, Purwojati and Wangon was still less than 10%. There were no significance disparities in infrastructure indicator because the infrastructure has been developed equally in all sub-districts in Banyumas Regency. Keywords: spatial disparities, socio-economic development, infrastructure, multivariate analyses
AICEDC Page 49
Paper No. ICOSEC-3-062534
Sustainability in the Mining Town:
Does the Ghost Town is Real?
Sulistiyohadi1, Moersidik2, Suparmoko3
1)Environmental Science, Postgraduate Program, Indonesia University, Jakarta, Indonesia [email protected], [email protected], [email protected]
Abstract
Coal booming in the last ten years, made the mining industry as the backbone of the mining
town. This study aims to assess sustainability at Berau and Paser District in East Kalimantan
Province as a mining town, where in 2024 the mining industry will enter the stage of post-
mining. Sustainability cities assessed by comparison of GDP sectors making up the structure
of the economy. The methodology is made by depth interviews with stakeholders such as
Regent, mining manager and community leaders. The results showed that Berau and Paser as
mining town did not sustain and failed to perform the transformation of non-renewable
natural resources to empower the human resources. In last five years the quality of Berau
people more than 60% graduated from junior high school. It is not enough to make the
growth sustainability. Human interaction from the outside as the miners had formed
multiplier economic effect, where it was fosters social and economic interaction higher than
socio-economic interaction between the local residents. Migrating miners will reduce
economic rents that have been built since 1993. The potential for a real ghost town will occur
after the end of mining activities, although that conditions ghost town in Paser and Berau's
not like in America and Europe. This condition would make the collapse of economics
interaction that has been built over the years.
Keywords: mining town, ghost town, sustainability, Berau, Paser.
AICEDC Page 50
Paper No. ICOSEC-3-062642
The Effect of the Entrepreneurial Competence Towards Small Business Performance: Case Study of Small Business of the
Crafts Products in Tasikmalaya West Java
Harun Heri Trismiyanto1, Djoko Pitoyo2, Tuti Sulastri3
1Doctoral Student of Management Sciences Program, Faculty of Economics and Business,
Padjadjaran University, Bandung, Indonesia [email protected],
2Sangga Buana University Bandung, Bandung, Indonesia
3Politeknik Komputer Niaga LPKIA Bandung, Bandung, Indonesia
Abstract This study aims to determine the effect on the small business performance of entrepreneurial
competencies is a case study of small business operators of craft products in Tasikmalaya,
West Java. The number of respondents sampled are 50 employers. Determination of the
sample is using simple random technique. Data were analyzed using correlation analysis
method and terminated. Data processing using SPSS 16:00. The results showed there is a
strong positive relationship between competence and significant entrepreneurial small
business performance. This study is expected to determine the appropriate strategy for local
government in an effort to improve the performance of small businesses in the craft products
in Tasikmalaya, West Java.
Keywords: Entrepreneur Competence, Small Business Performance
AICEDC Page 51
Paper No. ICOSEC-3-070651
Inflation and Economic Growth in Indonesian
During 1970 - 2013
Sugeng Setyadi1 and Tetuko Rawidyo Putro2
1Sultan Ageng Tirtayasa University, Serang, Indonesia [email protected]
2Universitas Sebelas Maret, Surakarta, Indonesia
Abstract A sustained high growth rate of output and low inflation are the two main goals of the majority of macroeconomic policies. Price stability is a key factor in determining the growth rate of an economy; hence, the central banks of many countries implement monetary policy to maintain inflation at a desirable rate. Very high inflation affects the economy drastically, but there is some evidence that moderate inflation also slows down growth (Temple, 2000 cited from Little et al., 1993). In addition, Aiyagari (1990), as well as Cooley and Hansen, 1991, suggest that the cost of lowering inflation toward zero is higher than the benefit. The question relating to the effects of inflation on economic growth is a subject of intense interest and debate in the literature (see e.g. Gillman and Kejak, 2005). The results of existing research have been mixed and studies can be categorized as making one of some possible predictions. The first of these is that inflation has no effect on economic growth (e.g., Cameron, Hum, & Simpson, 1996; Dorrance, 1963; Sidrauski, 1967). The second is that there is a positive relationship between inflation and economic growth (e.g., Mallik and Chowdhury, 2001; Shi, 1999; Tobin, 1965). The third is that inflation has a negative effect on growth (e.g., Andres and Hemando, 1997; Barro, 1996; De Gregorio, 1992; Friedman, 1956; Gylfason, 1991, 1998; Saeed, 2007; Stockman, 1981). The methodology used in this research is using granger causality test by inserting variable changes in the economic structure that is the economic crisis in 1997. Research suggests that there is no relationship of mutual influence between the rate of inflation on economic growth in Indonesia and as well as variable economic crisis does not have a direct impact on both variables. This shows that in Indonesia occurred classical dychotomy. Keywords: Inflation, growth, Indonesian, Granger causality
AICEDC Page 52
Paper No. ICOSEC-3-070853
The Relationship Between the Socio-Economic Profile and
Perception of Smallholders Towards Empowerment Program in Tanjung Jabung Barat, Jambi, Indonesia
Novyandra Ilham Bahtera1 and Fatimah Mohamed Arshad2
12Institute of Agriculture and Food Policy Studies, Universiti Putra Malaysia,
Putra Infoport, Selangor, Malaysia [email protected], [email protected]
Abstract
Empowerment is one of the means of improving farmers’ bargaining position and hence their
skills to improve their well-being. The study examines the association between socio-
economic profile of the farmers and their perception towards empowerment program
provided by one of the local NGOs named Yayasan Setara Jambi. Indeed, this study used the
relationship of respondents’ background such as age, education, monthly income, year
experience on oil palm plantation, and farming size on their perception towards
empowerment program. Structured questionnaire and face-to-face data collection methods
were employed to obtain the primary data from 194 oil palm smallholders in Tanjung Jabung
Barat, Jambi Province, Indonesia. The result of study showed that among the socio-economic
variables, only monthly income and farming size had the significant relationship on
perception of farmers towards empowerment program. In order to be empowered, farmers
should have higher productivity from day to day which later on it can affect their monthly
income from the selling of fresh fruit bunches. These results are useful input to the
government as well as institutions that are responsible in providing empowerment program to
the smallholders.
Keywords: Empowerment, perception, farmers, and NGO.
AICEDC Page 53
Paper No. ICOSEC-3-070854
The Poverty Alleviation for Sustainable Economic
Development in Nigeria: Issues and Challenges
Rayyanu Abdulkarim Kaita1
1Faculty of Administration and Management Studies, Hassan Usman Katsina Polytechnic Katsina State, Nigeria
Abstract Nigeria being the most populace black nation on earth is marred with issues of poverty
problems, ranging from political, Economical, social, and moral vices. It is the purpose of the
paper to address this burning issues of poverty that affect the general economic wellbeing of
Nigeria and indeed of most developing economies. Poverty alleviation is a very sensitive
national issue. So sensitive that those social, economic, political and moral vices that ruined
election in developing nations originate from it and those problems could only be eradicated
when poverty is cured. Poverty ridden nations more often do not withstand the challenge of
false implementation of survival skills(s). Eradication of poverty must be seen as a means of
sustaining enduring democracy and good governance as poverty must be seen as a means of
sustaining enduring democracy as poverty is the major bane to developing nations, inability
to forestall democracy and good governance. This paper discusses issues of why democracies
and good governance had failed in poverty ridden nations, sees poverty alleviation as a
challenge to constituted authorities and suggest strategies to be adopted to achieve poverty
alleviation in a democratic Nigerian society and the developing world. Therefore Nigeria
needs to develop sustainable long term plans that will reduce the impact of poverty. The
researcher adopted discursive approach in order to explain the write up of the paper.
Keywords: poverty, sustainability, democracy and good-governance.
AICEDC Page 54
Paper No. ICOSEC-3-071161
Model Mapping the Potential to Independence Fiscal
in East Java
Niniek Imaningsih1 and Ning Siti Farida2
12Faculty of Economics and Business, UPN Veteran Jawa Timur, Indonesia
Abstract
With the advent of Law No. 1999, which regulates 22 perlimpahan authority and
responsibility from central government to local government and UUNo.25 1999 that regulates
the financial pierimbangan between the center and regions, especially in the District cities in
East Java with menggembangkan local resources and reduce the dependence of the center.
This study aims to determine the independence of Regency City in East Java in the field of
local finance analysis used is qualitative analysis, which explains its analysis in the
description or in the form of sentences and quantitative analysis, namely analysis using
formulas and analyzes for sure. Quantitative analysis includes the analysis of the degree of
fiscal decentralization untu determine the level of independence of regional and sectoral
economic potential in regencies cities in East Java in order to determine the level of fiscal
independence and economic potential of the region. Results are expected to be used
mengethui pattern of relationship between the central government and the government at the
districtcity in East Java as well as the formula right policy for the future economic
development. From this research area adjacent to Surabaya As Sioiarjo District Lamongan
Gresik regency and municipality Kediri is an area with a large PAD so that it can be said that
the area with the industrial sector was the region with fiscal autonomy
Keywords: PAD, Region Income Original
AICEDC Page 55
Paper No. ICOSEC-3-071462
The Effects of BI Rate, Inflation, and Exchange Rate to
Government Bond Price 2011.01 – 2014.12: Error Correction Model Approach
Miranti Rizki Amalia1 and Siti Aisyah Tri Rahayu2
12Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia
[email protected], [email protected]
Abstract This study aims to analyze the effect of BI Rate, inflation, and exchange rate RupiahDollar to
the government bond price type FR0054. This research using time series data, these data are
monthly from January 2011 to December 2014. This research using Error Correction Model
Engle-Granger (ECM-EG) method. The results show that in the short-term and long-term BI
rate has negative and significant effect to government bond price. Inflation has no significant
effect to government bond price in the short-term, but has a significant negative effect to
government bond price in the long-term. There is no significant relationship between
exchange rate and government bond price in the short-term. In the long-term exchange rate
has positive and significant effect to government bond price. The implication of this research
is government together with Bank Indonesia is expected to always keep the stability of
interest rates and comodity prices inside the country because those things can affect people in
investing, including investments of government bonds. Government bonds could be an option
as a fixed-income investments, especially government bonds denominated in Rupiah.
Keywords: Government Bond Price, BI Rate, Inflation, Exchange Rate, ECM-EG.
AICEDC Page 56
Paper No. ICOSEC-3-072864
Gold Standard: The History and Impact on Economy
(Historical Study Implementation Gold Standard Other than the Monetary Standards and Implementation Challenges and
Opportunities in the Global Economy)
Ajeng Faizah Nima Ilma1, Vita Kartika Sari2, Bhimo Rizky Samudro3, and Siti Aisyah Tri Rahayu4
1234Economic Faculty, Universitas Sebelas Maret, Surakarta, Indonesia
Abstract This study aims to prove the historical use of the currency to the gold standard for later compare with a floating exchange rate monetary standard, to explain clearly the advantages and disadvantages of the use of the gold standard and to know the opportunities and challenges of the implementation of the gold standard in the economy. This research is qualitative descriptive analysis. Researchers seek to express criticism of the system of floating exchange rates compared to the gold standard system more stable. Floating exchange rate or floating exchange rates always have inflation, the real sector will always lag behind the monetary sector. The existence of the OIC or the OIC indicates that many countries who want a stable economy through the gold standard. The existence of compulsory reserve system allows doubling the money and interest system makes money is supposed to be a medium of exchange, being commodity. Opportunity used the standard currency of gold in very great. However, with the dollar as the currency of the most widely requested throughout the world will not be easy because of the advantages of printing dollars provide many benefits to the Fed. Classical gold standard had the lowest inflation rate. At the time of Bretton Woods, the real GDP per capita grew most rapidly, rather than another monetary system. Long-term interest rates the most stable during the classical gold standard system and a system of floating exchange rate of the most unstable. Short-term interest rates are at the most stable period of Bretton Woods. From here it can be said that the monetary system of any kind will be stable when standardized on gold, as in the classical gold standard system and the Bretton Woods system. This study suggests to change the world currency into dinar or dirham currency or currencies leaned back on gold. Bottom line is that the determination of the value of the currency is done with gold. Currency in circulation should be backed up with gold and silver. Keywords –gold standard, floating exchange rate, inflation, interest rate, Bretton Woods
AICEDC Page 57
Paper No. ICOSEC-3-073067
Simultaneous Analysis of Financial Sector Development and Economic Growth in Indonesia and Malaysia (1995 - 2013)
Febrianto Endy Pratama1 and Siti Aisyah Tri Rahayu2
12Department of Economics, University of Sebelas Maret, Surakarta, Indonesia
[email protected], [email protected]
Abstract
Economic growth and financial sector development are two very precise indicator used to look at a country's level of development. Each country will always strive to achieve the highest possible rate of economic growth so that the financial sector development will be able to synergize with high economic growth rates and the results of the financial sector can sustain the economic growth of a country. This research to analyze the long-term relationship role of financial sector development to economic growth in the Organization of Islamic Cooperation (OIC). Samples taken in this study is are Indonesia and Malaysia because these two countries are the country in the top 10 owners volume of gross domestic product (GDP) in most OIC countries. So the overall economic performance remains dependent on these two countries. However, these two countries despite having good economic record, have been unable to get into the top 10 countries with the fastest growth rate of GDP and the fastest export volume growth in OIC countries. Study that analyze the financial sector development to economic growth in Indonesia and Malaysia state using the simultaneous analysis of the two stage least square method in Indonesia and Malaysia in 1995 until 2013. The variables used in this study consisted of GDP, credit to private sector, stock prices index, industrial production, consumer price index, and interest rates are all derived from the data of world bank. This study shows that the financial sector development does not have a positive influence on economic growth both in Indonesia and Malaysia, because credit of private sector has significant influence but a negative influence on the economic growth of the Indonesian state and also does not have a significant effect on the state of Malaysia. So with this result the state government of Indonesia and Malaysia should be able to pay attention to the development of the financial sector given its influence on economic growth in the long term so that it can control the financial sector development. As well as set the consumer price index to increase private sector credit, which in turn could boost economic growth in Indonesia and Malaysia. Keyword: Economic Growth, Financial Sector Development, Simultaneous Analysis, Two Stage Least Square, Credit to Private Sector.
AICEDC Page 58
Paper No. ICOSEC-3-081169
Customer Response Toward Out-of-Stock in Supermarket
Rina Arum Setyawati1
1School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia
Abstract Retail industries starts to grow rapidly in Indonesia since 1999, but out-of-stock (OOS)
problem in retail store keeps unsolved. OOS describe the situation where customer cannot
find their desired product because it is stocked out. In marketing field, OOS situation has
been substantial interest to understand customer response when OOS situation occurred and
underlying factors that affect it. To improve quality retail stores in Indonesia, OOS situation
need to be reduced. This paper gives insight about how Indonesian market in Bandung City
respond to OOS situation, so retail stores and manufacturers be more aware that OOS
situation can cause them significant financial loss or not. Research model is adapted from
previous OOS studies with its influential factors. This study use hypothetical OOS to
Indonesian, after they finished shopping in Bandung City’s supermarket to fill in the
questionnaire. In this study revealed that product switch is the most common response while
store switch response has the lowest percentage. As product switch is the most common
response, OOS situation can be said that it not give high impact to brand manufacturer or the
retailer. It is also concluded that brand loyalty, alternative product within a brand, store
loyalty, buying urgency, shopping attitude, shopping time and product category are
significant factors that affect customer response toward OOS situation in supermarket.
Keywords: out-of-stock, customer behavior, retail
AICEDC Page 59
Paper No. ICOSEC-3-081170
Consumer Purchase Intention Towards
Counterfeit Sporting Goods
Novi Septiana1
1Bandung Institute of Technology, Bandung, Indonesia [email protected]
Abstract
The purpose of this paper is to examine the factors that influence consumer purchase
intention towards counterfeit sporting goods in Bandung City. This paper using multi linear
regression to examine the consumer purchase intention. Purchase intention is dependent
variable, while the independent variables include three items which are attitude, subjective
norm and perceived behavioral control. These three independent variables reseacher adopt
from theory of planned behavioral variable by Ajzen in 1991 that used to predict intention.
Consumers (N=100) in Bandung City completed surveys and the results showed that attitude,
subjective norm and perceived behavioral control had a positive influence on purchase
intention. In term of correlation test, it is indicated that attitude and subjective norm
positively related to the intention to purchase, while perceived behavioral control negatively
related to intention to purchase. As the regression result, it shown that attitude, subjective
norm and perceived behavioral control collectively influences consumer purchase intention.
The most influence variable in order is attitude, subjective norm and perceived behavioral
control. The limitation of this findings is the value of adjusted R square that only 0,223 which
means the theory of planned behavior can explain only 22,3% of purchase intention and the
rest 77,7% can be explained by other variables.
Keywords: theory of planned behavior, purchase intention, counterfeit, multi linear regression.
AICEDC Page 60
Paper No. ICOSEC-3-081676
The Impact of National Health Insurance Program
by Social Security Agency (BPJS) on Demand and Public Awareness of Health Insurance in Surakarta 2015
Nurul Istiqomah1
1Universitas Sebelas Maret, Surakarta, Indonesia
Abstract
This study aims to determine the impact of national health insurance program that is issued
by the Health Security Agency (BPJS) and to know the impact of national health insurance
program of the public awareness of Surakarta; and to determine the factors that influence
people's decision to make WTP of health insurance in Surakarta. Samples from this study
were community Surakarta. This research uses descriptive quantitative methods, a research
that combines information based on interviews, observations and using quantitative data for
analysis. This research using Simple Random Sampling, is a method to take sampling from
the populations without regard to strata and every members of populations have an equal
opportunity to be sampled. Logit regression to determine the factors that influence the WTP
for health insurance, and independent variables are incoem, age, education, marital status and
gender. Almost 82.5 % respondent awareness that have health insurance is important, but
only 20 % that have commercial health insurance, and nearly 62.5 % have health insurance
because it is obtained automatically based their job. 17.5 % people that don’t have health
insurance at all, wants to be as a participant in that program at the year of 2018 and 2019.
Only income and age that influential to the decision to purchase health insurance.
Keywords: Insurance, Health, Logit, Awareness
AICEDC Page 61
Paper No. ICOSEC-3-083000
Accelerate Creative Economic in Surakarta Through
Enhancing Incomes of SMEs Based Economic Creative
Dwi Prasetyani1 and Atmasari Listuhayu 2
12Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia [email protected], [email protected]
Abstract
Creative Economy in Surakarta in the last decade tend to have very rapid development. This
is because the potential of the city of Surakarta in terms of location, community and noble
culture. The number of actors in it are also increasing as the market niche created.. This study
aimed to analyze the influence of variable capital, working hours, number of workers, and
business experience to the income of Micro, Small and Medium Enterprises (SMEs) in
Surakarta. Furthermore, this study also aimed to see if the online promotion variables and
variable business experience related to the amount of revenue Micro, Small and Medium
Enterprises (SMEs). By using linear regression can be found that all variables simultaneously
influence on the income of SMEs, but partially only variable amount of capital and labor
variables that influence incomes. Furthermore, both online promotion and business
experience has interaction in strengthening SMEs rising incomes..
Keywords: Capital, Working hours, Promotion Online , Creative Economy.
AICEDC Page 62
Paper No. ICOSEC-3-083001
The Effect of Financial and Non-Financial Information
on Underpricing Level
Adi Mohammad Zainuddin1 and Muh Juan Suam Toro2
1 2Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia
Abstract
The purpose of this study was to examine the effects of financial information; return on
equity, debt to equity ratio and earning per share, and non-financial information; the age of
the company, underwriter reputation, the percentage of shares offered, the offer price, and the
crisis on the level of underpricing shares in the Indonesia Stock Exchange in 2009-2013.
Population of this research is the company doing an IPO and listed on the Indonesia Stock
Exchange from 2009 to 2013. The results showed that the financial information of return on
equity, debt to equity ratio and earning per share proved to have a significant effect on the
level of underpricing shares. As for non-financial information, only the life of the company
and the offer price significantly influence the level of underpricing shares.
Keyword: underpricing, IPO, financial information, non-financial information
AICEDC Page 63
Paper No. ICOSEC-3-083100
Analysis of Carrying Capacity of the Environment
on the Integration of Livestock Farming on Dry Land of District Sragen, Central Java
Mugi Raharjo1, Yunastiti2, and Nurul Istiqomah3
123Universitas Sebelas Maret, Surakarta, Indonesia
[email protected], [email protected]
Abstract
The objectives of this research are: examine the factors that define and locate patterns of
increasing environmental capacity in farm cropping in dryland livestock integration, examine
the factors that determine and find patterns in the productivity improvement intercropping
farming in dryland livestock integration, examine the factors that determine the efficiency
improvement and finding patterns in intercropped integration of livestock farming in dry
land. The research design used in this study is a Randomized Complete consisting of 2
factors: factor 1: integration of cattle and factor 2: cropping systems. Factor 1: integration of
cattle (I) which consists of 5 levels, namely: I0=no cattle integration (0 years), I1=1-year
integration of cattle, beef cattle I2=2 years of integration, the integration of cattle I3=3 year,
I4=4 years of cattle integration, integration cattle I5=5 years. Factor 2: cropping system (T)
consisting of three levels, namely: T1=monoculture cropping system with peanut plants,
T2=monoculture cropping systems with corn crops, T3=Cropping systems with groundnut
crop corn. The results showed increased soil fertility dignity of very low becomes high,
increase farm productivity, increase farm efficiency, increased farming efficiency,
environmental carrying capacity of the environment increases, the effectiveness of the farm
increases. The increase occurred in the level of income per capita land holdings on average 1
family (4 persons) 2,000 m2 4 tail Cattle Total income (per household per month): I0 Rp 724
574, - I5 Rp 3,393,552, - so that the farmers prosperous and sustainable agriculture
Keywords: carrying capacity of the environment, farming, intercropping, livestock integration, dry land
AICEDC Page 64
Paper No. ICOSEC-3-083101
The Influence of Website Quality Towards Purchase Intention
Haryanto1
1Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia
Abstract
The objective of this research was to examine the effect of website quality on purchase
intention. There was 5 dimensions constructed to measure the website quality that was
examined to attitude and purchase intention. Respondents of this research were citizens of
Surakarta that ever accessed the Lazada.co.id but did not buy in it yet. Furthermore, the
convenience sampling method was used to collect data. There were 160 participants
completing the questionnaire that was distributed by online and also offline. To examine the
hypotheses that have been formulated, SEM-GeSCA was implemented. The results showed
that firstly, website quality positively effects on purchase intention; secondly, website quality
positively effects on attitude; and finally, attitude positively influences purchase intention.
Moreover, website quality is a good predictor for attitude variable in online shopping.
Overall, the hypotheses that were examined in this research were not rejected. However, this
research faced the limitation that was discussed at the end of this paper.
Keywords: site quality, purchase intention, online shopping