WELCOME FROM THE ORGANIZING COMMITEEasais.pnj.ac.id/attachment/files/d1b80-proceeding-asais... ·...

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WELCOME FROM THE ORGANIZING COMMITEE

Assalamualaikum Wr Wb

First of all, lets pray to Allah SWT for all His grace and gift He has given to all of us that We are able to attend the International seminar on November 12th, 2015. This International seminar is aimed to provide opportunities for researchers to disseminate and exchange scientific information and also community sevices. This is hopefully becoming the right forum to discuss the development of technology, in order to be able to compete with other countries and also able to face the Asian Economic Community. In this international seminar, the Center for Reseach and Community Services (P3M) of State Politechnic of Jakarta invites scholars, reseachers, practitioners, and goverment to present the papers for the field of technology, commerce, and humanities

This 4rd ASAIS Seminar , attended by 15 universities, 60 paper presenters and 70 participants who come from Indonesia and other countries. As the Head of specifically are P3M, I would like to say “Welcome to all presenters and participants of this Seminar” and I would like to thank the Director of State Polytechnic of Jakarta and all the management, colleagues from colleges, universities, polytechnics; researchers, and all invitees. And I also thank to all members of commitees who have worked hard and are full of spirit to make the seminar happen. Last but not least, I look forward to any suggestions in order to improve this event better. Please Enjoy This Seminar Wassalamualaikum Wr Wb

ASAIS 2015 Organizing Commitee

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WELCOME FROM DIRECTOR OF STATE POLYTECHNIC OF JAKARTA

Assalamu’alaikum Wr Wb,

Firt of all, We pray to Allah SWT for all His grace and gift He has given to us all so that today we can attend the International Seminar on the Results of Researches and community Services under the theme of ” “Developing and Innovating the scince based on Tecnoprenuer for Competitive Researches and society Service”” as a basis of knowledge and research development in higher education, both national and international which is conducted by The Center of Research and Community Services of State Polytechnic of Jakarta. The purpose of conducting this seminar is to provide knowledge and concepts exchange opportunity for multidiciplinary scientists to put forward their perspectives in national and state problems under the 3 defined catagorical sciences. Besides that, this forum can also be used to strengthen relationship of researchers from both national and international institutions. In this opportunity we would like to thank to:

1. Dr. Ir. Mesdin Kornelis Simarmata, MSc as Director for Industry, Science and Technology, Tourism and Creative Economy, Bappenas

2. Jeremy David Herbert as Marketing Manager of Peninsula Beach Resort 3. Prof. Dr. Ir M.Nasikin. MEng from University of Indonesia 4. Ebsco (directur) 5. All Presenters 6. All Boards of committee who have made this happens

I hope that this academic activity can be conducted yearly and the spirit of the research will always sustain and give valuable contribution to the welfare and the development of the nation. Thank youfor your attention and for participating on this Seminar, and hope all of us can gain valuable benefits from the seminar.

Wassalamu’alaikum Wr Wb,

Jakarta, 12 November 2015

Director of state Polytechnic of Jakarta

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ASAIS 2015 COMMITTEE

Executive Board Director of PNJ Head of P3M PNJ General Chairs Iis Mariam Vice Chairs Budi Damianto

Managing Commitee Agus Edi Pamono Putera Agung Maha Agung Belyamin Dianta Anis Rosyidah Nining Latianingsih Dessy Israhyanti Nurul Vellayeti Dennis W Putro Ade Sukma Mulya Gun Gun Ramdlan Gunadi Sri Danaryani

Publication Yogi Widiawati Bayu Pratama Putra MaharAzhari Administration Staf Nurmalisna Sugianto

Contact Address Pusat Penelitian dan Pengabdian kepada Masyarakat (P3M) Gedung Q, Lantai 2, Politeknik Negeri Jakarta, Kampus Baru UI Depok, Tlp. 021 7270036 ext 236, www.asais-pnj.org; [email protected]

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PREFACE

This proceedings contain sorted papers from Annual South East Asian International Seminar (ASAIS) 2015. ASAIS 2015 is the fourth annual international event organized by Pusat Penelitian dan Pengabdian (P3M) Politeknik Negeri Jakarta Indonesia. This event is a forum for researchers for discussing and exchanging the information and knowledge in their areas of interest. It aims to promote activities in research, development and application on technology, commerce, and humanities.

We would like to express our gratiture to all technical commite members who have given their efforts to support this seminar. We also would like to express our sincere gratitude to Higher Education Republic of Indonesia.

Finally we also would to like to thank to all of the keynote speakers, the authors, the participant and all parties for the success of ASAIS 2015.

Editorial Team.

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TABLE OF CONTENTS

WELCOME FROM THE ORGANIZING COMMITEE ...................................................................... i

WELCOME FROM DIRECTOR OF STATE POLYTECHNIC OF JAKARTA ................................ ii

ASAIS 2015 COMMITTEE ............................................................................................................... iii

PREFACE ........................................................................................................................................... iv

TABLE OF CONTENTS ..................................................................................................................... v

TITLES OF COMMERCE AND HUMANITIES PAPER ................................................................. vi

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TITLES OF COMMERCE AND HUMANITIES PAPER

Kode Titels Researcher Page

CSH-01 Design Strategy and its Interface with Manufacturing and Marketing: A Conceptual Framework

Ali Masjono 1

CSH-02 The Empowerment of People’s Priority Economy by Clustering Economic Sectors in East Kalimantan Province (The Case of 6 Regencies/Districts in East Kalimantan)

Arkas Viddy, Andi Syarifuddin, and Zuhriah

11

CSH-03 The Influence of Underpricing to IPO Aftermarket Performance: Comparison between Fixed Price and Bookbuilding System on the Indonesia Stock Exchange

Arni Utamaningsih 21

CSH-04 Indicator of Financial Distress Prediction on Banks That Listed in Indonesia Stock Exchange

Endang Afriyeni, Jumyetti 27

CSH-05 The Development of Creativity, Innovation and Invention of Indonesian Higher Education Students’ Technopreneurship in KMI-EXPO 2015

Lenny Brida 37

CSH-06 The Application of Entrepreneurship Learning Model Based on Learning Management System to Increase Objective Learning Achievement in Politeknik Negeri Malang

Mohammad Maskan, Ahmad Fauzi, Ludfi Djajanto

49

CSH-07 Analysis of The Influence of Professional Ethics and Independence on The Performance of Auditors (Empirical Studies on The Accountan Public Firms in Surabaya)

Novi Damayanti 57

CSH-08 Development of Indonesian Learning Model Based On Stengthening of Rasionality and Soft Skill for Slow Learner

Nur Hasyim, Ade Sukma Mulya, Sri Wahyono

71

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Students

CSH-09 Family Background and Social Capital in The Entrepreneurial Process in Minang Ethnic

Primadona, Emrizal 77

CSH-10 The Analysis of Mice (Meeting, Incentive, Conference and Exhibition ) Potency: Case Study in Padang City West Sumatera Indonesia

Rini Ekasari, Sarmiadi, Yudhytia Wimeina

83

CSH-11 Identification of Special Interest Tourism in South Solok Regency West Sumatera

Sarmiadi 93

CSH-12 Employment Growth of Micro, Small and Middle Business Sector (UMKM) In Reducing the Open Unemployment Rate in Indonesia

Sri Wahyuni 99

CSH-13 The Significance of Marketing Business Award on Corporate Reputation and Marketing Performance of Brand Holder Company in Indonesia

Sylvia Rozza 111

CSH-14 Islamic Work Ethics is Needed for Developing Core Competence of The Firm An Attempt to Integrate Work Ethic With Strategic Human Resources Management

Willson Gustiawan, Shang-Ping Lin

127

CSH-15 Analyze of Economic Sectors Priority in Port Area of Bungus Padang

Yosi Suryani, Rudy Rinaldy 141

CSH-16 Analyze of Economic Sectors Priority in Port Area of Bungus Padang

Yosi Suryani, Rudy Rinaldy 153

CSH-17 Reaffirming Cultural Understanding: The PNJ Partnership with Kaimana District of West Papua

Zaenal Abidin Eko Putro, Nurul Intan Pratiwi

159

CSH-18 The Study of Soft Skills to Develop Learning Model of Soft Skills That Integrated With Accounting Subjects

Titi Suhartati, Yenni Nuraeni, Nedsal Sixpria

169

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CSH-19 Implementation of The Principle of Know Your Employee as Fraud Prevention Measures

on Indonesia Banking

Ida Nurhayati, Indianik Aminah 179

CSH-20 The Use of Digital Tool ‘Write to Learn’ in Indonesian EFL Classroom: Working With Essays

Yogi Widiawati 185

CSH-21 The Language Unit and The Development of Theme Rheme in The Feature Articles in English and in Bahasa Indonesia

Ninggarwati, Ina Sukaesih 189

CSH-22 Role of The Institution of Zakat and National Zakat Agency in Efforts to Alleviate Poverty in Indonesia

Darna, Bachrul Muhtasib 197

CSH-23 Analysis of Performance Measurement System Using Competency-Based Balances Scorecard (A Study in Banjarmasin State Polytechnics)

Agus Pebrianto, M. Wahyu Wardhana, Rika novyanti

211

CSH-24 Destination Development Strategy Based on Core Competence of Mice

Etty Kongrat and Tuty Herawati 219

CSH-25 Characteristics, Perception and Preference of Female Consumers Towards UKM Fashion Products

Fatimah and Aminah 227

CSH-26 Opportunity and Threat of Bandung Fashion SMEs Facing The Era of Asean Economic Community (AEC)

Tuty Herawati and Etty Kongrat 237

CSH-27 Triple Helix Concept in Research Collaboration Between Industry, Government and Polytechnic Through Collaborative Knowledge Creation Approach

Iis Mariam, Nining Latianingsih, Eva Zulfa Nailufar

243

CSH-28 Demograpic Profile of E-Commerce Customers in Jakarta

Petrus Hari Kuncoro Seno, Rodiana Listiawati

253

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CSH-29 Comparing The Effectiveness of Writing Assessment and Practical Effectiveness for Hearing Impaired Students

Rene Muhammad, Tshin Lip Vui 261

CSH-30 Scientific Articles Science and Technology for Entrepreneurship (IbK) At State Polytechnic Kupang

Hapsa Usman, Alfred Tandirura, Ramzy G.G.L. Sayonara

285

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Proceeding of Annual South East Asian International Seminar (ASAIS) 2015 1

Design Strategy and its Interface with Manufacturing and Marketing: A Conceptual Framework

Ali Masjono1

Accounting Department Jln Prof Dr. GA. Siwabessy. Komplek Kampus UI 16425

email : [email protected].

Abstract

This article discusses a concept interfacing between marketing and manufacture using a literature study, in this study there was no hypothesis proven, but the result prepares an alternative hypothesis for another researcher to develop further, and this article produces a Conceptual Framework. The problem focuses on the study of the interface between marketing with manufacturing associated with the performance of both. The aim of this study is to identify what types of interfaces that exist and whether the interfaces can improve the performance of both. The result identify six interfaces which are used as the main interface between the manufacturing and marketing, the interfaces are contract, interpersonal communication, promotion, ERP (Enterprise Resource Planning) and conflict. It is strongly recommended to explore ERP as the main interface of marketing and manufacture to improve their performance. Key Words: Interface, Manufacture, Marketing, Contract, Interpersonal Communication, promotion ERP and conflict. 1. INTRODUCTION Manufacturing and marketing are two opposite entities, these entities have their own vision and mission operations, however in an enterprise these entities can not be separated from one another. Implementation of these entities have the same target; customers. Manufacture wants goods produced bought by customer, while marketing wants to sell products of manufacturing to the customer. A good combination between the two will have an impact on customer satisfaction.

In some cases, the enteprise strictly separates manufacturing with marketing, but there is a bond

between these two entities, the bound is ownership issues. The owner owns both manufacture and marketing, so these two different business entities operate by one possession. This situation is very favorable for the owner of a business entity.

Referring to the paragraph above, it appears that the ownership of enterprises is a key element of a successful marketing strategy, the owner acts as main controller of both entities and this situation positioning customers as a target that does not have much choice in selecting products.

Figure 1 Manufacture dan marketing without Interface

Sometimes, when marketing entities outside the ownership of manufacturing and both entities

associated with long-term engagement. Here, the role of marketing rather freely because

Owner

Manufacture Marketing

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marketing can market similar products from different manufacturers and consumers are in a strategic position due to benefit from the many

choices, and increase customer satisfaction due to many options available.

Based on the explanation above, this paper focuses on discussion of the strategic design and interfaces between manufacturing and marketing; a conceptual framework.

2. THEORY A concept that focuses on manufacturing performance was introduced by Bozarth (1993) and described three types of focuses in manufacture relationship and competitive factors that affect manufacturing companies’ performance. The first focus is on manufacturing characteristics, second focusing on the requirements (demand) market and the third focus on conformance and manufacturing markets. This concept is illustrated how the three-dimensional focus can affect the performance of the manufacturing. From the model, there are three hypotheses; the first high internal consistency between manufacturing characteristics will have an impact on the performance of individual posistip in manufacturing companies. Both internal consistency requirements (demand) marketing tends to increase manufacturing characteristics, thirdly, the high suitability of marketing-manufacturing will positively influence to the overall manufacturing performance.

The company's performance has also been investigated by the New, CC; Szwejczewski, M (1995), which produces first draft (initial research)

focus on manufacturing to make for a stock or to make-to-order. A concept (Early Supplier Involvement (ESI) to involve suppliers early raised by Dowlatshahi, S (1998). This concept ekplores ESI-based product development practices. ESI concept consists of four building blocks that are design, procurement, supplier and manufacturing, where each block has a unique role in the ESI.

The above ideas appear that each has a concept to achieve manufacturing performance, the concept Bozarth (1993) focuses on the three main focus in achieving manufacturing performance, while the New, CC; Szwejczewski, M (1995) focus on the manufacture and the last two Dowlatshahi, S (1998) involving the suppliers. The Last concept involved a supplier in performance measurement, where one of the hypotheses was that the high suitability of marketing-manufacturing will be a positive influence to the overall manufacturing performance.

Studies conducted by Norburn, Dunn, Birley and Box (1995) on the quality of inter-functional relationships between marketing and production function (manufacture) produces a company with a clear focus on marketing and have a customers orientation approach clearly shows the level of small conflict and the level of cooperation marketing and manufacturing are high.

Owner

Manufactur Marketing Interface

Owner

Figure 2: Manufacture and Marketing with Interface

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From the paragraph above, a phenomenon that appears that there is no distinct line between marketing as with manufacturing as a form of ownership. The phenomenon that occurs today is strict separation between manufacturing and marketing. This phenomenon is seen that many emerging new model of retailer, such as Indomart, Seven Eleven, Alfamart which acts as marketing and theya are clearly separated with manufacturing. This phenomenon has brought many changes in the concept of direct selling.

Gaps identified from the literatures review above that there are no clearly seperation of the two entities, manufacture anda marketing is under one ownership control, but the fenomenon shows that marketing and manufakatur are two different entities and they are seperated by the the ownership status.

3. BUSINESS FENOMENON Business phenomenon that occurs is the emerging minimarket. On one hand, the proliferation of minimarket indicates modernization, but on the other hand there has been a destruction of the existing retail business (traditional grocery shop). It causes include minimarket have legal certainty and the good performance

between marketing and manufacturing, while on the other hand traditional grocery shop has no legal certainty and weak to compete and do not have a direct relation to the manufacture.

Another phenomenon is a business unit in producing products much dependent on an order from manufature, if manufacture stops ordering, the business unit will die, because it is so dependent.

So there are two powerful phenomenas identified, the first phenomenon mutual business dependent and mutually independent. Both are in a different position, very dependent but also very independent.

4. RESEARCH PROBLEMS Focuses on this study examines interfaces between marketing and manufacturing associated with the performance of both. Gap were identified from the literatures (researh gap) is there is no a concept (a research) yet that identifies an interface between marketing and manufacturing where both are different entities (ownership), both in terms of legal status and ownership status. So the focus of this study is to identify what types of interfaces that exist and what the interface can improve the performance of both.

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I= interface 1-n

Figure 3: the problem concept

5. RESEARCH QUESTIONS Questions that arise are how many types of interfaces that exist between marketing and manufacturing, whether the interface can improve marketing performance and manufacturing performance. All interfaces will be identified and correlated to the level of the concept, which will offer an optinal research. 6. RESEARCH OBJECTIVES The purpose of this review is to identify types of interfaces that exist between marketing and manufacturing, to identify whether the interface can improve performance of marketing and manufacturing by providing alternatives hypotheses to be proven, and identify correlation between the manufacture anda marketing. 7. RESEARCH BENEFITS The benefits of this study are to provide a clear concept of the interface between marketing and manufacturing, and to provide a variety of advanced research

alternatives that can be implemented by various parties. 8. RESEARCH

METHODOLOGY Library research focused on various researches that have been done by other researchers. This method will examine various interfaces that are never investigated well as the models their produced. This Methos also reviewing experienced from the perspective of those involved; human interaction in manufacture, human interaction in marketing. Efforts to understand whether human interaction can enhance the performance of marketing and manufkatur. Method for analysing are contrasting, equalizing, and exploring a gap from various studies. Pros and cons of the various studies will be compared to determine that there is a gap between the researches. (Bogdan, Biklen, 1998). 9. ANALYSIS AND DISCUSSION Of the various interfaces which are identified in the literature review,

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there are five interfaces which used as the main interface between the manufacturing and marketing; the identified interfaces are Strategic Policy, contract, interpersonal-communication, promotion, ERP (Enterprise Resource Planning) and conflict. It was identified that most researchers used their interfaces where manufacture and marketing in one ownership, this study identifies that chosen interfaces have never been used for measuring the marketing performance in term of separate ownership of marketing and manufacture.

The strategic policy of each company can be used as a foundation for strategic decisions related to performance marketing and manufacture. Each company has a strategic policy of each, so that the necessary interfaces contract, promotion, interpersonal communication, conflict and ERP so that each company's policy can be synergy

The contract is the most widely used interface to closer-to two different entities under different legal status and its vision and mission. In practice most contracts are easy to implement and has a definite legal force. When the contract is implemented, sometimes necessary revisions to adjust both parties are desired. Even the other interface will be used if the interface contract has been passed or signed.

Interpersonal communication becomes an interface between manufacturing and marketing. This interface is the core of human resource involvement of both entities to encourage achievement of the performance of each.

Both; marketing and manufacture need promotion to improve their performance. For certain situations, promotion spearhead to remind customers to keep customer aware of products. Entities manufacturing require promotion to marketing entities to keep reminding the entities marketing. Keep in mind, these research entities manufacturing and marketing entities are two different legal status and ownership.

ERP becomes interface due to the situation today's technological advances, the technology can replace the role of interpersonal communication. The role of computer networking system has shortened the distance between entities manufacturing and marketing and has expanded its marketing network.

Conflicts used as an interface because conflict holds potential problem that can rise unexpectedly, so it should be anticipated by both entities. Sometimes conflict can improve performance if anticipated due to a conflict in dealing with good and look for a solution that could benefit both entities.

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CONCEPTUAL FRAMEWORK

Figure 4: Manufacture-marketing interface; conceptual Framework

Figure 4 illustrates the concept of framework interfaces between manufacturing and marketing, Six entities associated with the interface Strategic Policy, contract, interpersonal communication, promotion, Conflict and ERP.

Strategic Policy

Strategic policy becames a determinant of the success of the two parties so that the specified interface can not be separated from the strategic policy. The performance of each entity are closely linked to the role of each interface has been determined. Strategic policy influence is illustrated in figure 5 below.

Figure 5: Strategic Policy Manufacture-Marketing Interface; Conceptual Framework,

From figure 5 shows that a hypothesis can be drawn is a strategic policy of each influaces performance marketing and manufacturing. This research has not yet to prove this hypothesis, so needs further research.

Contract The concept of a contract interface spawned a hypothesis which can be verified by further studies. The hypothesis is "Contract will affect the performance of manufacturing and marketing"

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Figure 6: Contrac Manufacture-Marketing Interface;Conceptual Framework

Interpersonal Communication

The interaction between marketing and manufacturing can occur due to human intervention occurred between them and interpersonal communication to enhance the performance of each. At the interface

of strategic policy and contract occurs interpersonal communication. Then the hypothesis can be drawn with this interface is interpersonal communication will affect the performance of manufacturing and marketing.

Figure 7: Interpersonal Communication Manufacture-Marketing Interface;Conceptual

Framework

Promotion

Directly or indirectly, the promotion will be the backbone of both activities. Marketing and manufacturing will highly depend on the customer, and then this interface is important to know whether this

interface can represent the complexity between manufkatur and marketing. The hypothesis that can be drawn from this interface is the promotion will affect the performance marketing and manufacturing.

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The question that arises in this context is the extent to which each promotion will improve performance, the extent to which performance together will enhance the performance of each. Here the role of strategic policy will be very strong in

improving the performance of both. The hypothesis that cans be drwan by linking policy and promotion strategy is "the promotion of a strategic policy of both parties will improve the performance of each."

Figure 8: Promosi Manufacture-Marketing Interface;Conceptual Framework

Conflict Conflict management is needed to overcome the problems that arise after the interaction between marketing and manufacturing. In many cases, conflicts occur due to inequality interpretation of both. Strategic policy

role will be crucial in mediating the conflict. The hypothesis that can be drawn from this interface is the interface conflict will affect the performance of manufacturing and marketing.

Figure 9:Konflik Manufacture-Marketing Interface; Conceptual Framework

ERP (Enterprise Resource Planning) for the current situation over the

various interfaces can be integrated with ERP. By using ERP, all entities

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in an organization integrates together in a single ERP interface. If two different organizations have ERP, respectively, the technology can be integrated with an interface in which the two are closely linked and highly dependent on achieving the performance of each.

Manufacturing and marketing of two different organizations will be integrated with ERP interface easily; links will both support each other and connected to each other in realtime. The hypothesis that can be drawn from this interface is the ERP will improve the performance marketing and manufacturing

Figure 10 ERP Manufacture-Marketing Interface: Conceptual Framework

10. CONCLUSION From the various analyzes in previous paragraphs there are several interfaces and each interface has a hypothesis, respectively. The interfaces are the Strategic Policy, Contract, Interpesonal Communications, Promotion, ERP and Conflict, which is the strategic policy, became the main interface to another interface.

Some proposed hypotheses are

a. Strategic policy influences marketing and manufacture performance

b. Contract incluences marketing and manufacture performance

c. Interpersonal communication influences marketing and manufacture performance

d. Promotion incluences marketing and manufacture performance

e. Conflict influences marketing and manufacture performance

f. ERP Influencess marketing and manufacture performance

11. FURTHER RESEARCH It is strongly recommended for researcher to study further the relationship between manufacturing and marketing with ERP interface. Current situation and the support of excellent technology, then this interface will be the primary interface because of the ease and high accuracy as well as the automation of various functions in marketing and manufacturing. 12. BIBLIOGRAPHY [1] Anderson, James P. (1979), “The

Marketing/Finance Interface,” in

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Educators Conference Proceedings, Neil Beckwith e t a l . , eds. Chicago; American marketing Association, 325-29.

[2] Baljit K. Sidhu & John H. Roberts (2008).” The marketing accounting interface – lessons and limitations”. Journal of Marketing Management. Volume 24, Issue 7-8, pages 669-686.

[3] Bogdan, Robert C. Dan Biklen, Knopp S. 1998. Qualitative Research In Education: An Introduction To Theory And Methods. Boston: Allyn And Bacon, Inc.

[4] Bozarth, Cecil C (1993), “A conceptual model of manufacturing focus”, International Journal of Operations & Production Management. Bardford, UK: Emerald Group Publishing, Limited. Volume: 13, Issue: 1, Pages: 81

[5] Dowlatshahi, S (1998).” Implementing early supplier involvement: a conceptual framework” International Journal of Operations & Production Management. Bardford, UK: Emerald Group Publishing, Limited. Volume: 18, Issue: 2, Pages: 143-167.

[6] Donald D. Hoffman (2009). “Object Categorization”; “Human Vison Perspektive, The Interface Theory of Perception: Calofornia: University of California Press. Page 148-265.\

[7] Griffin, Abbie and John R. Hauser (1996), "Integrating R&D and Marketing: A Review and Analysis o f the Literature," Journal o f Product Innovation Management, 13:1, 191-215.

[8] New, C C; Szwejczewski, M (1995).” Performance measurement and the focused factory: Empirical evidence” International Journal of Operations & Production Management. Bradford, UK: :

Emerald Group Publishing, Limited. Volume: 15. Issue: 4. Pages: 63

[9] Norbum, David, MarkG. Dunn, Sue Birley and W. Randy Boxx (1995), “Corporate Values and the Marketing Concept: Examining Inter-functional Relationships,” Journal of Strategic Marketing,3:4, 215-232

[10] T. F. Gattiker (2007).’ Enterprise resource planning (ERP) systems and the manufacturing–marketing interface: an information-processing theory view: Journal: International Journal of Production Research. Volume 45, Issue 13, July 2007, pages 2895-2917

[11] Investopedia. (2015). “Just In Time. JIT” http://www.investopedia.com/terms/j/jit.asp

[12] Lusch, Robert F. (1979), “Th e Marketing/Accounting Interface,” in Educators Conference Proceedings, Neil Beckwith e t a l . , eds. Chicago; American marketing Association,320-24.

[13] Rho, Boo-Ho, Yong-Seok Hahm and Yung-Mok Yu (1994), “ Improving Interface Congruence Between Manufacturing and Marketing in Industrial-Product Manufacturers,” International Journal of Production Economics, 37:1, 27-40.

[14] Respicio, Ana Respício & Captivo,Maria E (2012) “Marketing-production Interface through an Integrated DSS”. Journal of Decision SystemsVolume 17, Issue 1, January 2008, pages 119-132

[15] Zou, Shaoming, Myers, Matthew B. (1999) “The R & D, Manufacturing, and Marketing Competencies and the Firm's Global Competitive Position. Journal of Global Marketing Vol. 12, Iss. 3, 1999 http://www.investopedia.com/terms/c/contract-theory.asp#ixzz3WFZT7pjI

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The Empowerment of People’s Priority Economy by Clustering Economic Sectors in East Kalimantan Province

(The Case of 6 Regencies/Districts in East Kalimantan)

Arkas Viddy, Andi Syarifuddin, and Zuhriah

The State Polytechnic of Samarinda Jl. Ciptomangunkusumo Samarinda Seberang, Samarinda

[email protected] Business Administration, The State Polytechnic of Samarinda

Abstract

Balikpapan, West of Kutai, East of Kutai, Paser, Bontang and Berau are the regencies/districts where located in East Kalimantan Province. Most of local communities in these regions can survive because of this resources by utilizing them. Unfortunately they still using a traditional method and lead their level of income is still low. For these reasons it needs to be designed the model of priorities clustering sectors which can improve the local communities income in East of Kalimantan. The main objective of this research is to build the economy cluster which can increase the local communities income in Tarakan City using diamond porter, Marketing analysis for creating the empowerment of local communities income in East Kalimantar. Others objectives are reflected as to analyze the factors to impact the Allocated Regional Budget (APBD) and the economic sector priorities in East Kalimantan and to analyze the economic sectors priorities using diamond model. The most economic sector priorities which local communities can involve to work in it are Fishery and Agriculture which can be identified by involving of almost all family members and the amount of production. There are some obstacles in this business such as input e.g capital for Fishery and Agriculture fields. Lack of capital these businesses because in all of a loan proposal need to be followed by a certificate as a collateral, while they haven’t any certificate (land or house certificate). On the other hand, it is no significant influencese between regional economic indicators to the Allocated Regional Budget and the economic sector priorities except productive labor forces and the domestic investments. It means that the local government should be evaluated. The solution can be proposed are the local government should concern and focused on the local community obstacles such as to implement the apropriated aid or loan models for who involving in Fishery and Agriculture fields. The small business association system need to be established which all of the productions need to be collected by association and distribute it to the potential market with the good price. The association must provide a certainty amount of fund to be lent to the farmers and avoiding high rate cost of capital. Key Words: eonomic, priority, sectors, clustering, allocated regional budget, labor forces and domestic investments. 1. INTRODUCTION Local community economy is the strategic issue because it is proved powerful facing the economy crisis. It is noted when Indonesia experienced some crisis era such as a multy dimension crisis in 1998, a global financial crisis in 2008 until now. The recent condition is the value of Rupiah is falling down at about Rp 14.700 per US dollar in this September of 2015. The solution from Central Government of Indonesia is launching the Economic Policy Packed which are expected increased

the purchased power people. The packed such as pushing the Indonesian industries competencies by launching some deregulations, reducing business barriers and increasing investment in property sector.

Since 1998, Agriculture fields and local raw resources are usually used for increasing Indonesian economy, because they could be utilized as the strenght points for avoiding the negative impact of global crisis which are because of importing some inputs

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of production from abroad. This economy must dominated by local people for improving their income with generating small, middle and micro scale of businesses. The businesses should be labour intensive and not capital intensive, so it is called a people priority economy.

The local community economy can be identified by the structure of Gross Domestic Product (GDP). Since the increasing of sub sector in GDP dominated by labour intensive, so that country economy policy can be called as a people’s priority economy policy. It needs to be identified and analized that the country implements this kind of policy or a capitalism economy policy, or mixed economy policy between a people’s priority economy and a capitalism economy by comparing the number of labour and the number of capital.

In fact, the model of people’s priority economy does not exist both at city/district or village level and it creates the main cause of innequally of income and social-economy unfair from local to national level. The local economy structure is dominated by a group of broker as a capital owner, government officers at all levels, and big companies. This parties are the main barriers of local communities which could lead inequally and unfair in managing economy resources. On the other hand, all of economy resources are behalf of people. It is noted that at about 70 percent farmers have only a few of land with a very narrow agriculture field, while other haven’t any land and they work as an agriculture labour.

It is indicated that land productivity is declining because of changing function the farms into local communities houses. In 2001 to 2003, on at about 610.596 ha farms be built local communities houses and other

local communities activities. On the other hand, even Indonesia experienced decreasing of agriculture fields, but the number of farmers increase and it is noted that in 1993 only 20.8 milion farmers to be 25.4 milion farmers in 2003 (Agriculture Census, 2003). In average, each farmer has only at about 0.25 ha farm (Ismawan, 2005).

As a policy decision maker, the government should attempt to fullfil all of basic human right their people especially economy walfare. In this case the government should implement more suitable the national economic system with the real Indonesian internal conditions for creating economy oppurtunities. In fact, the natural and human resources, or the economy institution are not homogeneous, hence the economy development strategies should focus on people’s needs based on family or democratisation economy and implementing the sustainable development.

For strenghtening the people’s priority economy, the agricultural industry is the cumpulsary requirement for supporting macro economy condition in developing the people’s priority economy which most of them are focus on agricultural basis. In term of this kind strenghtening, it needs to be fullfiled sufficient condition infrastructures for developing the farmer business organization for creating the added value for agricultural industry including putting farmer business organization on the right function as a marketing institution of agricultural products. (Arkas Viddy, 2013)

The East Kalimantan is one of the wealthiest province in Indonesia which has the highest GDP in Indonesia with the structure of GDP consist of Mining Sector (42.52

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percent), Trade, Hotel and Restaurant Sector (14,39 percent), Agriculture Sector (10.72 percent), Industry and Manufacture Sector (8.96 percent), and Transportation and Communication Sector (6.96 percent), economic growth at about 6.32 percent and unemployment rate at about 7.66 percent or 243 thousand people in 2012 (Bappeda Kaltim, 2011). It is resulted based on implementation of various economy development policy such as labor forces,

Nowaday, there are some policy being implemented by the district or city government in East Kalimantan such as the soft loan called People Business Finance (Kredit Usaha Rakyat/KUR) with 9 percent interest rate per year and the target costumers are the small and middle businesses at about Rp 500 milion per unit business using all of banks in East Kalimantan which Trading and Industry Department to be a department in charge. The fund being lent called rolling fund. The rolling fund is the fund with the certainty amount be provided for local community who has a good prospect small business. After the payback this soft loan, other small business can propose this amount of soft loan. The complete planning for increasing local community has been designed by central government followed by the standard supervisory and standard evaluation. It is expected the growth of local community income would better in future.

Ironically, the income of each small and medium business in East Kalimantan are still low and it is indicated an unexpected number of income. Moreover, the rate of poor people East Kalimantan reaches 6.77 percent or at about 247 thousand people in 2011, while in year 2010, it

is indicated 7.66 percent or at about 243 thousand people. It lead the contribution of the small and medium business into GDP are low which pushed the number of poor people in East Kalimantan. It can be conluded that there are some serious matters in implementing the people’s priority economy in East Kalimantan.

Based on these reasons, the research with title The Empowerment of People’s Priority Economy by economic clustering model in East Kalimantan the case of Balikpapan City, East Kutai Regency, West Kutai Regency, Paser Regency, Bontang City and Berau Regency need to be done for generating an useful model and leads people income higher.

The problem needs to be formulated are:

a. Is there any influenced significantly between unemployment, 2nd priority GRDP, labor forces, domestic investment, and small business soft loan to the allocated regional budget in East Kalimantan ?

b. Is there any influenced significantly between unemployment, 2nd priority GRDP, labor forces, domestic investment, and small business soft loan to 1st priority GRDP Growth in East Kalimantan ?

c. Is there any influenced significantly between the allocated regional budget to 1st priority GRDP Growth in East Kalimantan?

The objectives of this research are:

a. To analyze and to prove the influences between unemployment, 2nd priority GRDP, labor forces, domestic investment, and small business

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soft loan to the allocated regional budget in East Kalimantan.

b. To analyze and to prove the influences between unemployment, 2nd priority GRDP, labor forces, domestic investment, and small business soft loan to 1st priority GRDP Growth in East Kalimantan.

c. To analyze and to prove the influences between the allocated regional budget to 1st priority GRDP Growth in East Kalimantan.

The contribution of this research to the government and local communities are:

a. As a consideration thing in deciding some economy development policies in East Kalimantan scope or national scope.

b. As a guidline for empowerment the people’s priority economy in East Kalimantan.

c. As a selected the empowerment the people’s priority economy sample in Indonesia

2. THEORY 2.1 People’s Priority Economy

The economists have different views of economic development, some of them stated that an economy development needs to be done based on inter action with a global economy, in case of competetion and capital factors which are the main matter needs to be focused on, so the developing of economy policy tends to the neo-liberalism direction. On the other hand, some economists state that economy development policy should focus on local communities and to empower the local communities’ economy is the unconditional requirement. (Mubyarto, Ekonomi Pancasila, 2003)

Osborne and Gaebler (1993) stated that the empowerment people’s priority economy is an independent development local community paradigm concept which has some principals such as a community oriented.

2.2 The Empowerment of People’s Priority Economy

For increasing the local community income, it need to be optimalized all of the resources which have involved in people’s priority economy. The resources consist of natural resources, human resources and technology which could be empowered for achieving the increasing people’s welfare as a main goal of the country.

The empowerment contains the main target such as creating the fair competetion which could be a trigger for creating survival opportunities for the small and midle size businesses, and then to develope it, in order to contributing the beneficial economy (Prawirokusumo, 2008)

3. METHODOLOGY 3.1 Research Scope

The scope of research is only six cities and district in East Kalimantan. In this case the research would to be done in Balikpapan City, Bontang City, Berau, Paser, East and West of Kutai Distric as the samples in this research.

3.2 Data Type

Most of data used on this research are primary data combining with secondary data.

3.3 Collecting Data Method

Data collection method done by the method of Rapid Rural and Urban Appraisal (RRUA). The questions will be distributed for getting primary data while library study will be done for getting secondary data.

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3.4 Model Analysis The conceptual model of East Kalimantan Economic Priority 2015

3.5 Instrument Analysis

Porter Five Industry Analysis This instrument will identify five key structural features that determine the strength points of the five competitive forces within an industry and hence industry profitability such as : Buyer Power, Supplier Power, Threat of Entrants, Threat of Substitutes, and Competitive Rivalry. Michael E. Porter (1980).

Multiple Regression Analysis

Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + …

βnXn + E

In this research it can be implemented by following formulation:

Y1 = α0 + α1X1 + α2X2 + α3X3 + α4X4 + €1

Y2 = ∂0 + ∂1X1 + ∂2X2 + ∂3X3 + ∂4X4 + µ1

Y2 = ∂0 + ∂1Y1 + µ2

Y1 = 1st priority Gross Regional Domestic Product

X1 = unemployment

X2 = 2nd Priority GRDP Growth

X3 = labor forces

X4 = domestic investment

X5 = small business soft loan

Y2 = allocated regional budget

€1, µ1, µ2 = error level

The multiple regression will be analyzed using SPSS software

4. ANALYSIS AND DISCUSSION 4.1 Analysis

Porter Five Industry Analysis

The strength points of the five competitive forces within an industry

Unemployment (X1)

2nd Priority GRDP Growth

(X2)

Labor Forces (X3)

Domestic Investment (X4)

Small Bussines Soft Loan (X5)

Allocated Regional

Budget(Y1)

1st Priority GRDP Growth

(Y2)

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and hence industry profitability such as : Buyer Power, Supplier Power, Threat of Entrants, Threat of Substitutes, and Competitive Rivalry.

Using this kind of analysis the sector of each city/district should has been identified and decided. In this research there are some the most priority sectors need to be analized such as:

a. Balikpapan City for Fishery sub sector

Buyer Power : dominant, Supplier Power : weak, Threat of Entrants : weak, Threat of Substitutes: Hard, Competetive Rivalry : weak/low competency

b. West of Kutai Regency for Agriculture sector

Buyer Power : dominant, Supplier Power : weak, Threat of Entrants : Hard, Threat of Substitutes: Hard, Competetive Rivalry : high competency

c. East Kutai for Agriculture sector

Buyer Power : dominant, Supplier Power : weak, Threat of Entrants : weak, Threat of Substitutes: weak, Competetive Rivalry : weak competency

d. Paser Regency for Agriculture sector

Buyer Power : dominant, Supplier Power : weak, Threat of Entrants : Hard, Threat of Substitutes: Hard, Competetive Rivalry : weak

e. Bontang City for Fishery sub sector

Buyer Power : dominant, Supplier Power : weak, Threat of Entrants : weak, Threat of Substitutes: weak, Competetive Rivalry : high competency

f. Berau Regency for Fishery sub sector

Buyer Power : dominant, Supplier Power : weak, Threat of Entrants : weak, Threat of Substitutes: weak, Competetive Rivalry : high competency

Multiple Regression Analysis

a. Balikpapan City for Fishery sub sector as 1st priority GRDP Growth

X1, X2, and X4 have positive influenced but not significant to Allocated Regional Budget, X3 has positive influenced and significant to Allocated Regional Budget, while X5 has negative influenced and not significant to Allocated Regional Budget.

X1, X2, and X4 have positive influenced but not significant to 1st priority GRDP Growth, X3 and X5 have negative influenced and not significant to 1st priority GRDP Growth.

On the other hand, Allocated Regional Budget has negative impacted and not significant to 1st priority GRDP Growth in Balikpapan.9

b. West of Kutai Regency for Agriculture sector 1st priority GRDP Growth

X1, X2 and X5 have negative influenced but and not significant to Allocated Regional Budget, X3 and X4 have positive influenced and significant to Allocated Regional Budget, while X5 has negative influenced and not significant to Allocated Regional Budget.

X1 and X5 have positive influenced but not significant to

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1st priority GRDP Growth, X2, X3 and X4 have negative influenced and not significant to 1st priority GRDP Growth.

On the other hand, Allocated Regional Budget has a negative impacted and not significant to 1st priority GRDP Growth in West of Kutai Regency with the regression formulation as.

c. East Kutai Regency for Agriculture sector 1st priority GRDP Growth

X1 has a positive influenced and not significant to Allocated Regional Budget, X2 and X5 have negative influenced and not significant to Allocated Regional Budget, X3 has a positive influenced and significant to Allocated Regional Budget, while X4 has a negative influenced and significant to Allocated Regional Budget. The regression formulation is

Y1 = 0,027X1 – 0,003X2 + 1,725X3 -0,633X4 – 0,228X5

X1 and X3 have positive influenced but not significant to 1st priority GRDP Growth, X2 has a positive influenced and significant to 1st priority GRDP Growth, while X4 and X5 have negative influenced but not significant to 1st priority GRDP and the regression formulation is

Y2 = 0,160X1+0,919X2 – 0,0576X3 – 0,576X4 – 0,284X5

On the other hand, Allocated Regional Budget has a positive impacted and significant to 1st priority GRDP Growth in East of Kutai Regency with the regression formulation as Y2 = 0,631Y1

d. Paser Regency for Agriculture sector 1st priority GRDP Growth

X1, X2, and X4 have negative influenced but not significant to Allocated Regional Budget, X2 has a positive influenced and not significant to Allocated Regional Budget, X3 has a positive influenced and significant to Allocated Regional Budget.The regression formulation is

Y1 = -0,060X1 +0,050X2 + 1,185X3 - 0,062X4 – 0,0387X5

X1, X2 and X3 have negative influenced but not significant to 1st priority GRDP Growth, while X4 and X5 have a positive influenced but not significant to 1st priority GRDP Growth, the regression formulation is

Y2 = -0,528X1 – 0,547X2 – 0,375X3 + 0,037X4 + 0,042X5

On the other hand, Allocated Regional Budget has a negative impacted and not significant to 1st priority GRDP Growth in Paser Regency with the regression formulation as Y2 = -0,041Y1

e. Bontang City for Fishery sub sector 1st priority GRDP Growth

X1, X3 and X5 have positive influenced but not significant to Allocated Regional Budget, X2 and X4 have negative influenced and not significant to Allocated Regional Budget, The regression formulation is

Y1 = 0,549X1 - 0,485X2 + 0,288X3 - 0,234X4 + 0,084X5

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X1, X2, X3 and X5 have positive influenced but not significant to 1st priority GRDP Growth, while X4 have a negative influenced and not significant to 1st priority GRDP Growth, the regression formulation is

Y2 = 0,328X1 + 0,355X2 + 0,3101X3 - 0,042X4 + 0,337X5

On the other hand, Allocated Regional Budget has a positive impacted and not significant to 1st priority GRDP Grwoth in Bontang City with the regression formulation as Y2 = 0,494Y1

f. Berau Regency for Fishery sub sector 1st priority GRDP Grwoth

X1, X2 and X4 have negative influenced but not significant to Allocated Regional Budget, X3 and X5 have a positive influenced but not significant to Allocated Regional Budget, The regression formulation is

Y1 = -0,087X1 - 0,17 X2 + 0,554X3 - 0,550X4 – 0,797X5

X1, X2 and X4 have negative influenced but not significant to 1st priority GRDP Growth, while X3 has a positive influenced but not significant to 1st priority GRDP Growth, while X4 and X5 have negative influenced but not significant to 1st priority GRDP Growth, while X5 has a positive influenced and significant to 1st

priority GRDP Growth, the regression formulation is

Y1 = -0,081X1 - 0,278X2 +0,048X3 - 0,259X4 + 1,347X5

On the other hand, Allocated Regional Budget has a negative impacted and not significant to 1st priority GRDP Growth in Berau Regency with the regression formulation as Y2 = - 0,07Y1

4.2 Discussion

Based on all of analized it needs to be discussed what need to be proposed. All of cities and regencies in East Kalimantan have a high potential priority sector of gross regional domestic product because most of cities/regencies have weak competitive rivalry, weak of substitutes, and weak threat of entrants (except West of Kutai, Bontang City and Berau Regency). It supported by the of respondents answering that they thinks their main job as a farmer or fisherman is the most they like because the problems they when they are working are not very complicated or easy to be solved. Their experienced that they have a good level of production and it easy to sell. They think that the competitive price is the advantage value of their main product. Most of them assumed that they have no barrier in producing their main business. The contribution of government institution is very useful in increasing their profit of business. The strength of their business is adequately of resources lead the sustainable regional economic development. The weakness point in producing is the technology they used because the usually use is very level of technology because limited of capital.

Based on multiple regression analysis some of independent variables have significant impact to dependent variables.

Only X3 (labor forces) has a positive influenced significantly to Allocated

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Regional Budget. It means Balikpapan government’s policy regards to unemployment, 2nd priority GRDP Growth, and small business soft loan are not running effectively. The government should consider those variables when they are decide the allocation of regional budget every year. It leads hard to reduce unemployment rate, labor forces are not distributed effectively, GRDP growth is still low, moreover small business soft loan tends decrease regularly. It needs to be concerned that X5 contributed negative influenced even not significant to Allocated Regional Budget and it leads X3 (labor forces) and X5 (small business soft loan) contributed negative not significant to 1st priority GRDP Growth. To conclude Balikpapan government needs to be evaluated its policies especially conducted to unemployment, GRDP, domestic investment, and small business soft loan.

West of Kutai Regency has agriculture sector (oil palm tree) as 1st priority GRDP Growth and it supported by appropriate allocated regional budget. On the one hand, there are some variables such as unemployment, 2nd priority GRDP Growth, and domestic investment contributed a negative influenced even not significant to Allocated Regional Budget. At least this condition reflected West of Kutai Regency’s government policies regarded to those factors need to be evaluated. To reduce unemployment rate such as in stimulating the labor intensive business. To allocate regional budget in supporting agriculture fields. On the other hand, labor forces and domestic investment contributed positive influenced significantly to Allocate Regional

Budget. It means that the local government should keep maintain what they’ve implemented regarded to both factors. Unfortunately, there isn’t factor influenced significantly to 1st priority GRDP Growth and it leads less impact of Allocated Regional Budget to 1st priority GRDP Growth, so all of local government policies related to these factors need to be evaluated.

For East Kutai Regency, only X3 (labor forces) factor contributed positive influenced significantly and the policy’s needs to be maintained or to be pushed. Unfortunately, a domestic investment contributed a negative significantly to Allocated Regional Budget and it reflected that the domestic investment policy in East of Kutai Regency needs to be evaluated. For this case, domestic investment policy needs to be followed by some appropriate deregulations. In funding all projects from Allocated Regional Budget, the local government spent it wisely and led to the positive impacted to 1st priority GRDP Growth of East Kutai Regency.

Labor forces is the most important factor for Paser Regency government and it has been proved by regression analysis that labor forces contributed a positive significantly to the Allocated Regional Budget. It means that from 5 factors to be observed only labor forces policy run effectively and it needs to be supported by another factors. Regarded to 1st priority GRDP Growth. Surprisingly, domestic investment and small business soft loan contributed a positive influenced, unfortunately it is not significant and led the allocated regional budget contributed negative influenced to 1st GRDP Growth. It indicated that the

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local government has to evaluate the way they spent their fund.

Bontang city has a specific condition among 6 cities/regencies in East Kalimantan, because no factor has significant to The Allocated Regional Budget or to 1st priority GRDP Growth, so the local government needs to evaluate their policy regarded to its factors. Luckily, unemployment, labor forces, 2nd GRDP Growth and Small Business Soft Loan contributed a positive influenced, but still not significant. It means that the local government still has to launch some deregulation in pushing the positive effects of those factors. Regarded to relationship between The Allocated Regional Budget and 1st priority GRDP Growth, it needs to be arranged the composition of sub budget. The amount of budget to fishery fields needs to be increased.

Berau regency has the worst condition among 6 cities/regencies because almost all variables contributed negative influenced to The Allocated Regional Budget and 1st GRDP Growth except small business soft loans. It indicated that government policies regarded those factors need to be evaluated and it necessary followed deregulation especially in domestic investment deregulations, soft loan policies, and unemployment policies. Local government has to implement the right policies and focus on how to solve the barriers. Soft loan or funding packed under an expert

supervisory need to be launched. Infrastructures for supporting fishery fields needs to be revitalized and utilized. Training for special purposes must be done regularly related to fishery fields.

5. CONCLUSION Based on the analysis and discussion, to conclude that:

a. Labor forces the only one variable contributed a positive influenced to The Allocated Regional Budget in East Kalimantan.

b. Labor forces the only one variable contributed a positive influenced to 1st priority GRDP Growth in East Kalimantan.

c. There is positive and negative influenced but not significant between The Allocated Regional Budget to 1st priority GRDP Growth in East Kalimantan.

6. BIBLIOGRAPHY [1] https://faculty.fuqua.duke.edu/~mo

orman/GeneralMills/Section2/Section2.htm

[2] McDonald, Malcolm and Adrian Payne (1996), Marketing Planning for Services, Oxford: Butterworth-Heinemann, pp 77-117 (reference from Journal)

[3] Michael E. Porter (1980), Industry Structure and Competitive Strategy: Keys to Profitability, Financial Analysis Journal, July-August, 30-41. (reference from journal)

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The Influence of Underpricing to IPO Aftermarket Performance: Comparison between Fixed Price and Bookbuilding System on the

Indonesia Stock Exchange

Arni Utamaningsih

Business Administration Department State Polytechnic of Padang Email : [email protected]

Abstract

This study discusses the IPO stock trading in Indonesia Stock Exchange in asymmetry information conditions between heterogen investors. Underpricing is a central issue in the IPO trading, where the price conditions were considered too low to below the market price. This condition is very detrimental to the company's prime, but also a signal that the company has a good reputation. IPO with strong conditions indicated has well performance in the aftermarket period. This condition is referred to as the contradictions and an anomali in Financial Management. This study aimed to assess the effect of underpricing on the stock performance in the aftermarket period. Indonesia Stock Exchange in its history ever implement the fixed price and bookbuilding IPO trading systems. This study intends to compare the IPO aftermarket performance between the bookbuilding and fixed price period. This study intends to provide answers the question that the bookbuilding can reduce the uncertainty of new stock trading and to reduce the impact of asymmetry information in the aftermarket period. Key Words: Underpricing, Fixed Price System, Bookbuilding System, Aftermarket Period.

1. INTRODUCTION Fixed price and bookbuilding methods are indicated have different impact to underpricing in the trading of the new stocks. In the long run underpricing of each method is also have difference price performance. Underpricing has a different impact on the prospects of IPO shares in the future, after several years of stock traded in the secondary market. In pricing process, particularly the involvement of potential investors in the process of pricing in premarket periods affect the quality of underpricing. Past research has stated that underpricing in IPO stock offerings related to the quality of the company issuing IPO (Rock, 1986, Allen and Faulhaber, 1989, Welch, 1989, Grinblatt and Hwang, 1989). The higher the amount of underpricing, then it should be the better growth of the financial performance of the company issuing the shares post-IPO.

Differences in the amount of underpricing in cycles IPO stock trading also depends on the time period of a company chooses to go public (Ritter, 1984). Market conditions "cold" can make underpricing control purposes becomes an increasingly difficult task for the underwriters. The paper considers the market conditions "hot" versus "cold" in the selection of the study period in order to avoid biased analysis. The selected study period was January 1990 to December 1994, followed by the period January 1999 to two-thirds in 2000. The period 1990 to 2000 two-thirds of the Indonesian capital market era implement fixed price method. The next period was called as the first observation period. The second observation period is January 2001 to December 2008 in the era of capital market Indonesia has implemented a bookbuilding method in managing the IPO stock trading.

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In 1977-1987 stock trading in the Indonesian capital market is very sluggish and the number of issuers until 1987 only 24 companies. In the period 1977 to 1989 there has been no trade records and complete the company's financial statements. 1998 was a period of crisis, in this case the market conditions very "cool". In this case the study did not include the years such as the observation research, in order to avoid bias due to the condition of the thin market trading transactions. This research is interesting because it uses a different research settings, namely the Indonesian capital market in the era before the crisis to implement fixed price method and after the crisis that apply bookbuilding method. Furthermore, this study refer to it as the era of fixed price and bookbuilding era. The implications of this study is the acquisition of a new understanding of methods which are more beneficial and in accordance with the characteristics of capital markets in developing countries such as Indonesia.

2. THEORY Literature study will explain the fundamental difference of two different marketing strategies in the IPO stock trading, the fixed price versus bookbuilding method.

2.1 Fixed Price Method Benveniste and Busaba (1997) explains that the IPO marketing strategy with fixed price method sets the initial price without first studying the assessment of potential investors in the shares that will be offered. Characteristics fixed price did not take into consideration the need to study the factors which may be obtained underwriters through informal discussions with prospective investors and a survey of the market. In this case there is no any

information into consideration and then included as a factor ex-ante expectations. Approach Welch (1992) claimed the model of analysis in accordance with the fixed price method, and Welch (1992) also does not distinguish investors in the group of informed investors and uninformed investors. Approach Welch (1992) is a behavioral-based approach that relied on the information cascade. In this case the private information is assumed illustrated through learning to sentiment investor.

2.2 Bookbuilding Method In the bookbuilding method, the underwriter acts as a marketer before the shares offered in the primary market by collecting indications of interest of potential investors. Collection of a number of indications is the basis of an assessment of the demand for stocks and underwriters arrange setting directly the offer price are the reflection of the aggregate market valuation. The company issuing the shares receive a variety of information that has been collected before making the final price. Elimination of information that does not provide benefits conducted through face to face to potential investors. Aggregate information is also likely to refer to potential investors, in this case the power of individual investors neutralized. Nevertheless, the benefits derived from the information gathering costs. Investors are appropriately obtain reimbursement (reward) for his willingness to express an indication of their interest in stocks that will be offered. Potential investors want indication of their interest in the terrefleksi into the initial offering price.

2.3 Underpricing Some literature suggests that the IPO is generally underpriced (Ibbotson,

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1975; Ritter, 1984; Hanley, 1993). Bookbuilding and fixed price method, they both asked for some money left on the table in the form of underpricing. Rock (1986) states that underpricing is needed in order to compensate investors who are generally uninformed retail investors, so avoid the domination of informed investors as "the winner's curse". The information gap between the two groups of investors that make underwriters set the price that is quite underpriced as the best decision. Simply put, underpricing in the IPO are used to allocate the problem of retail investors are generally classified as uninformed in order to obtain better outcomes on average. The explanation is relevant as explanatory IPO trading that apply fixed price method, although Welch (1992) describes the fixed price method through behavioral approach. In this case the underpricing is formed not because of the information asymmetry between investors, but because of the information cascade. On the other hand, "the winner's curse" is not the focus of consideration in the bookbuilding method, as underwriters would ask the informed investor to honestly share information in order to establish the price. Informed investor willingness to share information to underwriters rewarded with a discount as a reward which is reflected in the price of IPO (Benveniste and Spindt, 1989). Regardless of disagreements about the price-setting process and share trading method is used, the real value of the IPO was formed immediately and instantaneously when the shares publicly traded on the secondary market.

3. METHODOLOGY 3.1 Fixed Price versus Bookbuilding

Methods The best way in the establishment and placement of IPO stock price has been

a matter of debate in the international arena. This debate focuses on the fixed price method is a method which is historically dominated by the British application and the countries of the colony as well as most countries in Europe (Benveniste and Busaba, 1997). The debate was triggered by the IPO stock offering and the acceleration of the privatization movements carried out by some of the capital markets and generate incredible offers. Trend shows that the bookbuilding which is applied in the US capital markets evolve into a method of choice in many capital markets.

Spatt and Srivastava (1991) and Benveniste and Wilhelm (1990) showed that in different environments, bookbuilding generate the expected proceeds are greater than the fixed price method. The fundamental difference between the two methods is in the process of pricing the IPO. In the fixed price method, the initial price set without involving the role of investor demand. Instead, the investor bookbuilding method involved in road shows and meetings one by one with potential investors which allows the underwriters to consider the various appraisal investors in initial pricing decisions.

Underpricing in IPO stock offerings are generally explained by asymmetric information and risk (Ellul and Pagano, 2006). But the real investors are also worried about the liquidity of the shares in the IPO aftermarket period associated with the uncertainty that occurs after the IPO. Ellul and Pagano (2006) using various measurement periods IPO aftermarket liquidity, and found that the expected liquidity in the aftermarket and liquidity risk is an important determinant for the underpricing.

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Information asymmetry in trade-related IPO value of the securities and the fundamental risk. The company issuing the shares must be willing to risk "money on the table" as compensation for investors in connection with the uncertainty about the actual value of the securities. Investors never know for sure as to what liquidity of shares traded in the period after the IPO aftermarket. Investors are not only concerned about the stock liquidity aftermarket is expected as a manifestation of uncertainty, but also concerned about the fundamental risks.

Busaba dan Chang (2010) states that the bookbuilding process can dig up more information from informed traders in premarket period and therefore will reduce the problem of adverse selection in aftermarket trading. In this case the liquidity of shares in the aftermarket period will be more certain. Ljunggqvist, Jekinson, and Wilhelm (2003) says that underpricing should be greater at the time of the IPO traded with bookbuilding method than the fixed price method. Based on these studies, the hypothesis structured as follows:

H1: Underpricing in the era of bookbuilding higher than the stock's IPO underpricing in the era of fixed price.

H2: The volatility of stock returns over the period of 3 (three) years post IPO bookbuilding era higher than the fixed price era.

3.2 Hypothesis Testing This study divides the observations into two test groups, groups of samples fixed price era and the era of bookbuilding. The first hypothesis testing is performed on each sample group based on the following procedures:

Underpricing the value obtained from the calculation of initial returns on the first day of IPO trading, with the following equation:

a

am

P

PPUNDPRI

Notation:

mP = Closing price on the first trading

day

aP = The initial offering price

The second hypothesis (H2) was tested by calculating the value of returns during the period of 3 (three) years post IPO on each sample group, namely fixed price and bookbuilding era. Returns volatility differences can be observed from the description of trends in each era of observation. Differences volatility returns in more detail can also be compared between the era of observations using a standard deviation calculation based on return on average during the 3 (three) years post IPO. The formula used is as follows:

Description: DSi = standard deviation of shares of i-th Rij = return to the actual stock-I for the day-to-j in the observation period.

= average arithmetic return to the stock-I during the period of observation T-n-2 = number of days or interval of time during the observation period was reduced 2

4. ANALYSIS AND DISCUSSION The test results describe statistical sample size, minimum, maximum, average, standard deviation, and

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variance of stock returns based on fixed price and bookbuilding method. Table 1 contains the results of the descriptive statistics. Statistical test results stated that the initial returns (underpricing) in the era of fixed price of 0.127 or 12.70%, while the bookbuilding era of 0.399 or 39.90%. These results illustrate that the underpricing in the Indonesian capital market in the era of bookbuilding

greater than the fixed price era. The standard deviation and variance underpricing in the era of fixed price worth 0.308 and 0.095. The test results was smaller than the underpricing in the era of bookbuilding worth of 0.495 and 0.245. Here is a Table 1 which reports the test results of the descriptive statistics:

Table 1 Statistics Descriptive of IPO Returns at 1st Year, 2nd, and 3rd in the Bookbuilding and Fixed price Methods

Description N Minimum* maximum * Mean* Standard Deviation

Variance

Fixed price Method:

Initial Returns (Underpricing)

139 -0,667 2,100 0,127 0,308 0,095

IPO Returns 1st Year 139 -0,957 3,167 -0,126 0,623 0,388 IPO Returns 2nd Year 139 -0,926 6,658 -0,115 0,902 0,814 IPO Returns 3rd Year 139 -0,888 1,821 -0,111 0,495 0,245

Bookbuilding Method:

Initial Returns (Underpricing)

126 -0,326 2,708 0,399 0,495 0,245

IPO Returns 1st Year 126 -0,921 13,632 0,146 1,720 2,959 IPO Returns 2nd Year 126 -0,951 4,818 0,114 0,838 0,703 IPO Returns 3rd Year 126 -0,903 4,943 0,206 0,826 0,682

The result of standard deviation and variance illustrates that underpricing in the Indonesian capital market in the bookbuilding era more varied than fixed price era. These results provide evidence for the hypothesis 1, that the underpricing of IPO in the bookbuilding era higher than fixed price era.

Based on the test results of the standard deviation and variance of stock returns in the 1st, 2nd, and 3rd in the fixed price era, respectively: 0.623; 0.902; 0.495, and 0.388; 0.814, 0.245. The test results and the standard deviation of stock returns variance in the 1st, 2nd, and 3rd in the bookbuilding era, respectively: 1,720; 0.838; 0.826, and 2.959; 0,703; 0.682. The test results showed that the standard deviation and variance in the era of bookbuilding greater than the fixed price era. These results provide evidence that stock returns during the 1st, 2nd and 3rd year in the

bookbuilding era more volatile than during the fixed price era. In this case hipitesa 2 is proven, that the volatility of stock returns over the period of 3 (three) years post IPO bookbuilding era higher than the fixed price era.

5. CONCLUSION The difference of Fixed price versus bookbuilding method, especially regarding the best way in setting the initial share price has been debated in the international region (Busaba and Chang, 2010). This study aimed to give an explanation of the difference between the two methods. Indonesian capital market is a unique research area to test for differences in fixed price versus bookbuilding method. Since the Indonesian capital market was established in 1977 until the end of the financial crisis in the first two trimesters of 2000, IPO stock offerings embrace fixed price method. Bookbuilding method applies since Bapepam No. IX.A.2. dated October

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27, 2000 regarding the procedure for an IPO stock offering.

This study provides empirical evidence that the initial returns (underpricing) in the era of fixed price of 0.127 or 12,70%, whereas in the era of bookbuilding by 0.399 or 39.90%. These results illustrate that the underpricing in the Indonesian capital market in the era of bookbuilding greater than the fixed price era. The results support the Utamaningsih (2012), which examined a sample-based bookbuilding IPO stock, that initial returns are higher as a measure of underpricing will have an impact on post-IPO stock price performance is better, with a value of positive returns. Results of this study are also in line with the opinion of Busaba and Chang (2010) states that the bookbuilding process can explore more information from informed traders in premarket period and therefore will reduce the problem of adverse selection in aftermarket trading. In this case the liquidity of shares in the aftermarket period will be more certain.

6. BIBLIOGRAPHY [1] Allen, F., dan G.R. Faulhaber (1989)

Signaling by underpricing in the IPO Market, Journal of Financial Economics 23, pp. 303-323.

[2] Benveniste, L., dan W. Y. Busaba (1997) Bookbuilding vs. Fixed Price: An analysis for marketing IPOs, Journal of Financial and Quantitative Analysis 32, pp. 383-403.

[3] Benveniste, L. M., dan P. A. Spindt (1989) How investment bankers determine the offer price and allocation of new issues, Journal of Financial Economics 24, pp. 343–362.

[4] Benveniste, L. M., dan W. J. Wilhelm (1990) A comparative analysis of IPO proceeds under alternative regulatory environments,

Journal of Financial Economics 28, pp. 173–208.

[5] Busaba, W.Y., dan C. Chang (2010) Bookbuilding vs. fixed price revisited: The effect of aftermarket trading, Journal of Corporate Finance 16, pp. 370–381.

[6] Ellul, A., dan M. Pagano (2006) IPO underpricing and after-market liquidity, Review of Financial Studies 19, pp. 381–421.

[7] Grinblatt, M. dan C.Y. Hwang (1989) Signalling and the pricing of new issues, Journal of Finance 44, pp. 393-420.

[8] Hanley, K.W (1993) The underpricing of initial public offerings and the partial adjustment phenomenon, Journal of Financial Economics 34, pp. 231-250.

[9] Ibbotson, R. G., dan J. J. Jaffe (1975) “Hot issue” markets, Journal of Finance 30, pp. 1027–1042.

[10] Ljungqvist, A. P., dan W. J. Wilhelm (2003) IPO pricing in the dot-com bubble, Journal of Finance 58, pp. 723–752.

[11] Ritter, J. (1984) The Hot Issue Market of 1980, Journal of Business 57, pp. 215-240.

[12] Rock, K. (1986) Why new issues are underpriced, Journal of Financial Economics 15, pp. 187–212.

[13] Spatt, C. S., dan S. Srivastava (1991) Preplay communication, participation restrictions, and efficiency in initial public offerings, Review of Financial Studies 4, pp. 709–726.

[14] Utamaningsih, A (2012) Informasi Asimetri dalam Proses Penjaminan Saham IPO di Pasar Modal Indonesia: Penetapan Harga, Alokasi Saham Perdana, Underpricing, dan Stabilisasi Harga. Disertasi Program Doktor Manajemen FEB UGM, Yogyakarta, Unpublised.

[15] Welch, I. (1989) Seasoned offerings, imitation costs, and the underpricing of initial public offerings, Journal of Finance 44, 421–450.

[16] Welch, I. (1992) Sequential sales, learning, and cascades, Journal of Finance 47, pp. 695–732.

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Indicator of Financial Distress Prediction on Banks That Listed in Indonesia Stock Exchange

Endang Afriyeni1, Jumyetti2 1,2 State Polytechnic of Padang

[email protected] , [email protected]

Abstract

The purpose of this study was to identification the influence of CAR, NPL, BOPO, ROA and LDR to prediction financial distress of banks, using logit model. The condition of financial distress happens before bancruptcy. The sample used in this research are bank companies that listed in Indonesia Stock Exchange (ISE) period 2010-2014. Using purposive sampling approach to selected sample. Hypotheses were tested using logistic regression. The results showed that simultaneously CAR, NPL, BOPO, ROA and LDR were significant influence to prediction financial distress of bank that listed in Indonesia Stock Exchange (ISE). Keywords : financial distress, bankruptcy, logistic regression

1. INTRODUCTION 1.1 Background Bank is a business entity that collects funds from society in the form of savings and give it back through the credit and / or other forms in order to improve the living standards of the people. In the last decade, especially after the banking crisis the attention of governments in various countries including Indonesia on policy regulation and supervision of banks getting bigger. This is due that bank as one of the financial institutions in the economy, as supporting the smooth functioning of payment systems, implementing monetary policy, and the means to achieve the stability of the financial system runs its business based on the principle of trust. Government has a role in regulating the activities of banking operations by setting various regulatory policies. This regulatory policy serves as a protective banks in facing of risk. However, banks still have the possibility to go bankrupt.

The financial distress condition happened before the company facing bankruptcy or failure. Plat and Plat (2002) defines that financial distress as a stage of decline the financial

condition endured by a company, which happened before the bankruptcy or liquidation.

Financial statements published by the company can provide information about the financial position and performance of the company. Financial ratio analysis is a main tool to analyze the financial statements of the company and it is also a fundamental technique to evaluation of the performance, so that the performance measures that can be observed whether there is any potential financial difficulties (financial distress). Dun & Bradstress (Brigham and Ehrhardt, 2005: 814) also argued that usually the sign of the potential financial distress can clearly be seen from the analysis of the ratio long before the company become insolvent. Indicators that can represent the soundness of the bank is located in the financial ratio (Qurriyani).

The financial ratios are not simply measuring the health of banks, but also used as an indicator to predict financial distress of banks before it leads to bankruptcy. Ratios often used are the Capital Adequacy Ratio (CAR), Non Performing Loan (NPL),

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Return on Assets (ROA), Return On Equity (ROE), Operating Expenses to Operating Income (ROA), net interest margin (NIM), and Loans to Deposits Ratio (LDR).

The study using financial ratios to predict financial distress of banks have been done but the results are not consistent. This study will reuse some of the financial ratios to predict financial distress in the banking companies that listed in the Indonesia Stock Exchange. These ratios are CAR, NPL, BOPO, ROA, LDR. Using a period and study sample from 2010 up to 2014

1.2 Identification Problem Based on the above problems, the question in this study is whether the financial ratios CAR, NPL, BOPO, ROA and LDR can be used to build of prediction model of financial distress of banking companies that listed in the Indonesia Stock Exchange.

2. THEORY 2.1 Financial Distress Financial distress is a condition where the financial company is not in a good condition or crisis (Afriyeni, 2013). Hofer (1980) and Whitaker (1999) defined financial distress as a condition of the company in negative net operational income for several years. Financial distress that can not be resolved will most likely lead to the company's bankruptcy.

According Rodoni and Ali (2010: 176) if we look at the financial condition, there are three circumstances that cause financial distress factor is capital inadequacy or lack of capital, the amount of the debt burden and interest and suffer losses.

2.2 Bank Bank is any business offering deposits subject to withdrawal on demand (such as by writing a check or making an electronic transfer funds) and

making loans of a commercial or bussiness nature (such as granting creadit to private business seeking to expand the inventory of goods on their shelves or purchase new equipment), Rose dan Hudgins (2010;5).

The financial performance of the bank is a picture of the financial condition of the bank in a given period of time either in relation to aspects of fund raising and distribution of funds. Financial Statements issued by the banking company is one source of information about the company's financial performance. Information in the company's financial position is used to support management decision making appropriately by conducting financial statement analysis.

One of important aspect in the analysis of financial statements is predicting the continuity or survival of the company itself in the face of competition. Prediction of survival of the company is very important for the management and owners of the company to anticipate the financial distress that leads to bankruptcy as measured through the analysis of financial statements in the form of financial ratios.

It is important for a bank to maintain depositors’ confidence and preventing the bank from going bankrupt. It reflects the overall financial condition of banks and also the ability of management to meet the need of additional capital. Capital Adequacy Ratio (CAR) is one of ratio that developed to ensure that banks can absorb a reasonable level of losses occurred due to operational losses and determine the capacity of the bank in meeting the losses. CAR is a measure of how much capital is used to support the banks' risk assets. While this ratio has positive relation with the financial soundness of the bank, it is

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negatively related to a possible failure (Dincera, Gencerb, Orhanc, Sahinbasd, 2011; Almilia dan Winny Herdinigtyas).

Asset quality , the quality of assets is an important parameter to gauge the strength of bank. The prime motto behind measuring the assets quality is to ascertain the component of non-performing assets as a percentage of the total assets. (Reddy dan Prasad, 2011; Prasad dan Ravinder, 2012). NPL ratio is the most standard measure of assets quality measuring the net non-performing Loan as a percentage to total credits. If the value of the non-performing loans is higher, asset quality will be lower. Thus, it becomes a threat to the bank’s profitability and future viability (Dincera, Gencerb, Orhanc, Sahinbasd, 2011).

Management quality, the ratio in this segment involves subjective analysis to measure the efficiency and effectiveness of management (Reddy dan Prasad, 2011; Prasad dan Ravinder, 2012). total income as a share of total expense and deposit interest expenses as a share of total expense can be used to predict the management quality. While these measures are both negatively related to the management quality, they are positively related to a possible failure as a result of mismanagement of the bank (Dincera, Gencerb, Orhanc, Sahinbasd, 2011).

Earning quality, the quality of earnings is a very important criterion that determines the ability of a bank to earn consistently. It basically determines the profitability of bank and explains its sustainability and

growth in earnings in future (Reddy dan Prasad, 2011; Prasad dan Ravinder, 2012). Return on Assets, Return on Equity are ratios that can explain the quality of income generation. The first ratio is the net profit as a share of total assets. As for the second measure, it is the net profit as a share of total shareholders’ Equity. Both measures are positively related to the financial performance of the bank and negatively related to the failure of possibility (Dincera, Gencerb, Orhanc, Sahinbasd, 2011)

Liquidity Risk of liquidity is curse to the image of bank. Bank has to take a proper care to hedge the liquidity risk; at the same time ensuring good percentage of funds are invested in high return generating securities, so that it is in a position to generate profit with provision liquidity to the depositors (Reddy dan Prasad, 2011; Prasad dan Ravinder, 2012) . LDR is one of ratio to measures the ability of bank to meet the demand from depositors in a particular year. To offer higher liquidity for them, bank has to invest these funds in highly liquid form. LDR is positively related to the liquidity level of the bank, but can be both negatively and positively related to the performance or the risk of failure (Dincera, Gencerb, Orhanc, Sahinbasd, 2011).

3. RESEARCH METHODS 1. Dependent variable

The dependent variable is the condition of bank distress or non-distress

2. Independent variable

CAR, NPLs, ROA, ROA, LDR

Table 3.1 Operasionalization of Variable

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Variable

Size

Scale

Financial Distress (Y)

CAR

NPL

BOPO

ROA

ROE

LDR

• Net Operating Income • Dividen

• Return Earning

Nominal

Ratio

Ratio

Ratio

Ratio

Ratio

Ratio

Using nonprobability sampling with purposive sampling method. The model used for testing hypotheses were:

Pi = 1/[1 + exp – (β0 + β1CAR + β2NPL + β3BOPO + β4ROA + β5LDR)]

Keterangan:

Pi = Probability companies on distress or non-distress

β0 = Constant

β1 + β5= Regression Coefficients

CAR = Capita Adequacy Ratio

NPL = Non Performing Loan

BOPO = Operational Expence to Operational Income

ROA = Return on Assets

ROE = Return on Equity

LDR = Loan to Deposit Ratio

This model is used to test that the CAR, NPL, BOPO, ROA and LDR can predict financial distress banks. The Backward Stepwise (Conditional) method has been used. Using

quantitative analysis (scale numbers) through a logistic regression analysis (logistic regression analysis). Logistic regression was part of the regression analysis is used when a the dependent variable (response) is a dichotomous variable.

According Ghozali (2006) to test the hypothesis of the study by using logistic regression models performed with the following steps:

a. Assessing the regression model (Goodness of Fit)

b. Assessing Overall Model (Overall Model Fit)

c. Test the Overall Percentage Correct

d. Testing the Coefficient of Determination (Negelkerke R Square)

e. Testing Regression Coefficients

4. RESULT AND DISCUSSION 4.1 Result Samples taken from the population conducted by purposive sampling based on several criteria in order to obtain 30 samples from 38

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populations banking companies listed in the Indonesia Stock Exchange. This study uses data time series and cross section (pooling data), using this data pooling research data obtained by 5 x 30 = 150 observation data. Furthermore, to determine whether the company is classified in distress or non-distress condition is if you

have a net operating profit (net operating income) and negative (Hofer; 1980, Whitaker; 1999 and Almilia; 2004), do not pay dividends, earnings suffered a negative return. Based on these criteria result in a state of distress grouping of banks and non-banks in distress conditions as shown in Table 4.1

Tabel 4.1 Recapitulation Company in Financial Distress and Non Financial Distress

Year Financial Distress Non Financial Distress amount 2010 2011 2012 2013 2014

3 3 3 3 3

27 27 27 27 27

30 30 30 30 30

Amount 15 135 150 Tests using logistic regression. The results can be seen briefly in Table 4.2, is the result of the feasibility test model, the overall model test, test the overall percentage correct, test the coefficient of determination (R Negelkerke Square) and the regression coefficient test. Based on case processing summary is known that the number of cases of regression that is included in the regression analysis is 150 samples. And when viewed from the percentage is 100 percent the case deserves to be treated with logit model. Hypothesis test results are:

1. Goodness of Fit Test (Hosmer and Lemeshow)

SPSS output results show that the value of Hosmer and Lemeshow of the model is equal to 1.166 and significant at 0.997. Therefore this value above 0.05 then the model to be fit and model can be accepted.

2. Overall Test Model (-2 Log Likelihood)

The test results omnibus test of the model coefficient obtained that the chi-square value (impairment -2LL) amounted to 71 160 by the significant

value of 0.000. With the value of -2LL Value block number = 0 is greater than the value -2LL Value block number = 1 then the regression model, the better and significantly smaller value of 0.05, meaning that the addition of independent variables into the model can improve the predictive ability of the logistic regression model.

3. Overall Percentage Correct Test Test overall correct percentage complete can be found in the appendix (Classification Table). Classification power for the companies identified are not experiencing financial distress is at 99.3%, or in other words classification power concluded that 134 companies out of 135 companies that did not experience financial distress predicted correctly classified. As for the company experiencing financial distress was identified by 80%, or 12 companies out of 15 companies that are predicted to experience financial distress are classified correctly. Overall estimation of the model correctly predicts 97.3% of observations.

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4. Coefficient of Determination Test

The value of the coefficient of determination in the logistic regression model indicated by the value Nagelkerke R Square. Nagelkerke value R Square is equal to 0573, which means that the prediction of financial distress can be influenced by independent variables by 57.3% while siasanya can be explained by other variables outside the model.

5. Coefficient in Partial Test

Testing the significance of each variable partially done by using the Wald test and the chi-square approach. Based on the significance test of each coefficient visible Wald statistic values with a significance value (p-value) for each variable. Chi-square value for α = 0.05 is the NPLs, ROA and ROA (Table Variables in the equation)

Table 4.3 Results Test of Logistic Regression Model

Keterangan N % Selected Cases Included in Analysis

Missing Cases Total

150 0

150

100 0

100 Keterangan Koefisien Sig

Constant NPL BOPO ROA

-14,365 0,596 0,134 -2,114

0.005 0.038 0,018 0,003

-2LL (Block = 0) -2LL (Block = 1)

103.170 26.365

Model Chi-Square Hosmer and Lemeshow

71.160 1.166

0.000 0.997

Nagelkerke R Square 0.790 Daya Klasifikasi Non Finnancial Distress Daya Klasifikasi Financila Distress Total Daya Klasifikasi

134 12 146

99.3% 80.0% 97.3%

Sumber: Output SPSS dari data penelitian ini

Based on the results of logistic regression analysis as a whole shows the value of Cox and Snell R Square of 0.378. Cox and Snell R Square is a measure that seeks to imitate the size of R2 at multiple regression based on likelihood estimation techniques with a maximum value of less than one, so it is difficult to interpret.

Negelkerke value R Square is a modification of the coefficient Cox and Snell R Square. R Square Negelkerke value can be interpreted as the value of R2 in the multiple regression. Judging from the data

processing output value Negelkerke R Square is at 0.790 which means that the variability of the dependent variable that can be explained by the independent variable is equal to 79.0 %% remaining 21% is explained by other variables outside the model. Based on the overall predictive power calculations estimate the model correctly predicts 97.3% of observations. Based on the test results of the regression coefficients (Table 4.4), the logistic regression model is obtained as follows:

Variables in the Equation

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B S.E. Wald df Sig. Exp(B)

95% C.I.for

EXP(B)

Lower Upper

Step 1a CAR -,097 ,145 ,450 1 ,502 ,907 ,683 1,206

NPL ,638 ,325 3,859 1 ,049 1,892 1,001 3,575

BOPO ,132 ,057 5,258 1 ,022 1,141 1,019 1,276

ROA -2,248 ,727 9,564 1 ,002 ,106 ,025 ,439

LDR ,046 ,052 ,770 1 ,380 1,047 ,945 1,160

Constant -16,541 6,316 6,859 1 ,009 ,000

Step 2a NPL ,667 ,322 4,286 1 ,038 1,949 1,036 3,665

BOPO ,121 ,054 5,043 1 ,025 1,128 1,015 1,253

ROA -2,127 ,673 9,987 1 ,002 ,119 ,032 ,446

LDR ,043 ,049 ,763 1 ,382 1,044 ,948 1,148

Constant -16,910 6,009 7,919 1 ,005 ,000

Step 3a NPL ,596 ,288 4,298 1 ,038 1,815 1,033 3,190

BOPO ,134 ,057 5,641 1 ,018 1,144 1,024 1,278

ROA -2,114 ,704 9,014 1 ,003 ,121 ,030 ,480

Constant -14,365 5,128 7,847 1 ,005 ,000 Variable(s) entered on step 1: CAR, NPL, BOPO, ROA, LDR.

4.2 Discussion The value of the coefficient (β) in the CAR, NPLs, ROA, ROA, LDR turns ratio of NPLs, ROA, ROA significantly affect the prediction of financial distress. Significance influence of each of these variables are as follows:

a. Significance testing by measuring the ratio of NPLs to the prediction of financial distress based on the Wald value, obtained a value of 4,286 with a P-value of 0.038 which is smaller than α = 0.05 so that it can be concluded that the regression coefficient for NPL ratio significantly to the prediction of financial distress. Based on the sign of the coefficient, the NPL ratio is a positive influence on the prediction of financial distress. NPL ratio means that the higher the probability of financial distress prediction will be greater

b. Significance testing by measuring the ratio of BOPO against financial distress prediction is based on the value of Wald obtained for 5.641 with P-value of 0.018 which is smaller than α = 0.05 so that it can be concluded that the regression coefficient for BOPO ratio significantly to the prediction of financial distress. Based on the sign of the coefficient, the ratio BOPO positive effect on the prediction of financial distress. It means that the higher the ROA ratio of the probability of financial distress prediction will be even greater.

c. Significance testing by measuring the ratio of ROA on financial distress prediction is based on the value of Wald obtained for 5.641 with P-value of 0.018 which is smaller than α = 0.05 so that it can be concluded that the regression coefficient for ROA

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significantly to the prediction of financial distress. Based on the sign of the coefficient, the ROA ratio adversely affect the prediction of financial distress. It means that the higher the ROA, the probability of financial distress prediction will be smaller.

5. CONCLUSION Overall estimation of the model correctly predicts 97.3% of observation, testing the significance of each variable partially done by using the Wald test and the chi-square approach to α = 0.05 is the NPL, BOPO and ROA. NPL ratio has a significant influence on the prediction of financial distress and positive influence means that the higher this ratio, the possibility of banks in distress condition is getting smaller. BOPO ratio positive effect on the prediction of financial distress. It means that the higher the BOPO ratio of the probability of financial distress prediction will be even greater. ROA ratio adversely affect the prediction of financial distress. It means that the higher the ROA, the probability of financial distress prediction will be smaller.

6. BIBLIOGRAPHY [1] Afriyeni, Endang. 2008. Penilaian

Kinerja Keuangan dengan Menggunakan Analisis Rasio, Poli Bisnis Jurnal Ekonomi dan Bisnis, Volume 3 Nomor 2

[2] ________________, 2012. Pengaruh Kinerja Keuangan dan Sensitivitas Perusahaan terhadap Faktor-faktor Ekonomi Makro dalam Memprediksi Kondisi Financial Distress pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia, Prosiding Seminar Nasional Manajemen, Fakultas Ekonomi, Universitas Negeri Padang

[3] ________________, 2013. Rasio Keuangan, Financial Distress Perusahaan: Suatu Tinjauan, Jurnal Ekonomi Arthavidya, Tahun 14, Nomor 1, Maret 2013, Universitas Wisnuwardhana, Malang

[4] ________________, 2014. Identifikasi Pengaruh Rasio CAMEL Terhadap Stock Return Perusahaan Perbankan Yang Terdaftar Di Bursa Efek Indonesia Pasca Krisis Keuangan Global, Prosiding, Seminar Nasional & Call Paper Akuntansi, Ekonomi, dan Bisnis, SiNAU 3 Universitas Pembangunan Nasional “Veteran”, Yokyakarta

[5] Altman, Edward I. 1968. Financial ratios, discriminant analysis and the prediction of corporate bankrupcy, Journal of Finance, Vol. 23, September, pp. 589-609.

[6] _____________, 1992. Corporate Financial Distress and Bankruptcy : A Complete Guide to Prediction and Avoiding Distress and Profiting from Bankruptcy, Second Edition, John Wiley & Sons, Inc.

[7] Apostolik, Richard., Donohue C., Went, Peter. 2009, Foundation of Banking Risk: An overview of Banking, Banking Risks, and Risk based Banking Regulation, John Wiley & Son, Inc

[8] Dincer, Hasan. Gencer, Gulsah. Orhan, Nazife. Sahinbas, Kevser. 2011. A Performance Evaluation of the Turkish Banking Sector after the Global Crisis via CAMELS Ratios, Published by Elsevier Ltd. Selection and/or peer-review under responsibility of 7th International Strategic Management Conference, pp.1530-1545

[9] Imam Ghozali. 2009, Ekonometrika : Teori, Konsep dan Aplikasi dengan SPSS 17, Badan Penerbit Universitas Diponegoro, Semarang

[10] _____________ 2009, Analisis Multivariate Lanjutan dengan Program SPSS, Badan Penerbit Universitas Diponegoro, Semarang

[11] K.V.N. Prasada, G. Ravinder. 2012. A Camel Model Analysis of

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Nationalized Banks in India. International Journal of Trade and Commerce-IIARTC, January-June 2012, Volume 1, No. 1, pp. 23-33

[12] Luciana Spica Almilia, Winny Herdiningtyas, 2005. Analisis Rasio CAMEL Terhadap Prediksi Kondisi Bermasalah pada lembaga

perbankan periode 2000-2002, Jurnal Akuntansi dan Keuangan Vol.7 No.2, hlm 131-147

[13] Wilopo. 2001, Prediksi Kebangkrutan Bank. Jurnal Riset Akuntansi Indonesia, Vol 4, No. 2, pp. 184-198.

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The Development of Creativity, Innovation and Invention of Indonesian Higher Education Students’ Technopreneurship in

KMI-EXPO 2015

Lenny Brida The Lecturer of Business Administration Department and the Deputy Director of Students

Affairs, Politeknik Negeri Jakarta

Abstract

The purposes of these research are: (a) to identify the characteristics of technopreneur of the Indonesia Students from different higher education, (b) to analyse the relevance of the study program and the types of business which are developed by the students, (c) to analyse the creativity, inovation and invention done by the students which were exhibited in Indonesian Students Enterpreneurship EXPO ( EXPO-Kewirausahaan Mahasiswa Indonesia KMI 2015, (d) to analyze the strength of the winners. This research applied a descriptive qualitative method. The location of the research was done in Ambon as the venue of the competition and expo of technopreneurship, which was held from 9-13 September 2015. The data collection was taken from the competition participants of technopreneur and the products were exhibited in the competition. They were 184 groups from 83 higher educations that can be classified into 5 categories; 41 Universities, 28 polytechnics, 7 Higher School, 4 institutes and 2 academy. All the participants become the informen of this research since the students’s group were available in the KMI expo 2015 on their own stands and boothes. In this research, the writer assessed the students innovation products based on the innovation indicators. The anlysis was developped through 4 steps of Spradley Methods in sequence : domain analysis, taxonomy analysis, componential analysis and finding fact/cultural value. The final result of this research consists of four findings. First, that is not all the products and services can be classified to technopreneurship, It is only a small number of products, services and ideas which belong to technopreneurship. From 175 products and services only 49 (28%) can fulfill the requirement of technopreneur, while 126 products (72%) only rutin and classic entrepreneurship. Second, From the relevancy of the study program and the characteristic of business, it can be seen that the university students have the highest relevance between the business they build and the study program (61%), followed by Polytechnic (55%) and institutes is the lowest, only 41%. Third, the category of business consists of products (85%), Ideas (3%) like consultancy works, services (12%) and the place of travel (1 only). These types of products could be the result of the innovation of the students as the result of their creative thinking and some of the products, ideas, services and places are new and unique. Some of the uniqueness will be on the arts productions. Fourth, The strengths of all the winners, they can fulfill the criteria of technopreneur products and services and also the impact and the contribution of the products to solve the problem of the society Key Words: Technopreneur, Creativity, Innovation and Invention

1. INTRODUCTION 1.1 The Background Of Problem The Entrepreneurship Program in Indonesia has been developed since 1998 by the Directorate General of Higher Education (HE) and in 2009 it was strengthened through the launching of Students’ Enterpreneurship Program (Program Mahasiswa Wirausaha). This program was designed for higher education’s students in order to develop sense of entrepreneurship and change mindset

of the students. The strategic targets of this program , the students will not only be able to be good quality employees (job seekers), but also they will be able to create their own job/business (Job creators). The implementation of this program in the learning process is that the higher education should build and develop their spirit, attitude/behavior and capacity to find out business opportunities trough entrepreneurship activities which are directed to create

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an innovation to implement working sistem, technology and to produce new products (Pedoman PMW 2013:3).

As it is explained in PMW guidebook (2013:5) the aims of the entrepreneurship program in higher education are 1) to develop new young well educated entrepreneurs that have mindset to create jobs, 2) to motivate a model of entrepreneur education and training in Higher Education, and 3) to motivate the growth and development of entrepreneur units that manage entrepreneur program in Higher Education. Through the years, the government has been disseminating the policy of combining technology and entrepreneur that is called “Technopreneur”. It means entrepreneurship in a technology, that is the Process of merging technology process and entrepreneurial talent and skills (Cuevas 2013 :1). As the follow up of this policy, Higher Education has to develop business unit for the students to train and to develop their entrepreneurial competencies, under the responsibility of deputy directors/ deputy rectors of students’ affairs.

In order to elivate the entrepreneurship program, every year the Directorate General of Higher Education holds an Expo and seminar (KMI Expo) to assess and discuss the development of the entrepreneurship program. Although it was discussed and assessed in the Expo and seminar but there is no detail investigation done to this program. That is why, the writer is anxious to study the development of the entrepreneurship program, especially related to the creativity, innovation and invention of the students.

The discussions about innovation and invention are sometimes difficult

because people are unclear about the requirement of what is called “innovation”, and how this innovation brings impact to the new invention of a certain product. The KMI expo is not only an enterpreneur contest but it is also an exhibition of new inventions of students learning process. At least for the students, the invention is the "creation of product or introduction of a process for the first time," while the “innovation” happens when the students "improve on or make a significant contribution" to something that has already been invented.

For this reason, It is worth to investigate how the students merge technology and entrepreneur competencies, especially when they develop their products and services. Beside that this study also would like to find out whether there are any relevance between the study program and the types of business and products/services they develop and produces. Since higher education consists of different types, such as universities, Polytechnics, Institutes and Academy, is there any specific differences among those institutions.

Finally, this research is an afford to study the KMI-Expo 2015 as a significant contest of students innovation and invention of products and services they develop and sell.

1.2 The Research Questions Based on the background of this research, this study is an investigation to find out the following questions :

a. What are the characteristics of products and services created by the students, entrepreneurship or technopreneur ?

b. How are the products and services relevant of the study program and the types of

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business which are developed by the students ?

c. Do all the products and services fulfill the requirements of innovation and invention?

1.3 What is Technopreneurship The definition of technopreneur.

In analyzing the products and services of the students, the writer refers to the theory of some experts and practitioners in the area of technopreneurship. The definition given by Vowels (2015: 1). Technopreneurs simply have a different perspective and set of tools for each step in this path and greater potential for success. Technopreneurship is a subset of entrepreneurship. All technopreneurs are entrepreneurs, but not all entrepreneurs are technopreneurs.

According to Cuevas (2013:2), a technopreneur is a person who destroy the existing economic order (creative destruction) by introducing new products and services, by creating new forms of organizations and by exploiting new raw materials. Therefore, the characteristics of Technopreneurship is "Creating the NEW and destroying the OLD", they could be new knowledge, new products, new processes, new services, new market or new business.

The characteristic of Enterpreneurships vs Technopreneurship

The differenciation of enterpreneurship and technopreneurship can be identified through the characteristics of each process as follow :

a. Hightech ventures in ICT, electronis, internet, life sciences and BIOTECH. Example: CISCO, Nano Technology.

b. Service firm where technology is critical to their mission, business that provides services.

c. Delivery or design of hightech products like computer hardware or devices.

d. Use of technology in the delivery or conduct of normal business activities.

The characteristics of Technopreneruship

Fulfills the following requirements :

What differentiates a technopreneur from any other businessman is the way a technopreneur operates the business. His business is generally marked with a high growth potential and high leverage of knowledge and intellectual property. What is more, he always has a viable exit mechanism. Then we can have a classic entrepreneur. He is the one who starts his own business. Or you can have a multipreneur who starts a number of companies as per his potential. But the maximum number of entrepreneurs falls in the category of

intrapreneur. These are the ones who use their creativity, their knowledge, and their drive in a large corporation. And yes, how can we leave aside a minipreneur. Yes, he is the one who doesn’t possess huge capital base to start a large business but is the one who starts a new venture with this limited capital and with the help of that small capital base expands his business to great height

1.4 Creativity, Innovation and Invention

These three terminologies are often difficult to differenciate because many people are not clear about the exact meanings, particularly there is confusion about the difference between creativity, innovation and

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invention. Sloane (2012) provides some definitions of the three terms:

Creativity is the capability or act of conceiving something original or unusual.

Innovation is the implementation of something new.

Invention is the creation of something that has never been made before and is recognized as the product of some unique insight.

If you have a brainstorm meeting and dream up dozens of new ideas then you have displayed creativity but there is no innovation until something gets implemented. Somebody has to take a risk and deliver something for a creative idea to be turned into an innovation. An invention might be a product or device or method that has never existed before. So every invention is an innovation. But every innovation is not an invention. When your company first published its website that was a major innovation for the company even though many other websites already existed. (Sloan 2012)

We tend to think of an innovation as a new product but you can innovate with a new process, method, business model, partnership, route to market or marketing method. Indeed every aspect of your business operation is a candidate for innovation. Peter Drucker said, ‘Every organisation must prepare for the abandonment of everything it does.’ So do not restrict your vision of innovation to products. Some of the most powerful innovations you can make are in business methods and customer services. If we look at companies like Dell, eBay and Amazon we see that their great innovations were with their business models rather than in new products.

Innovations can be incremental or radical. Every improvement that you make in products or services can be seen as an incremental innovation. Most businesses and most managers are good at incremental innovation. They see problems in the current set-up and they fix them. Radical innovations involve finding an entirely new way to do things. As such they are often risky and difficult to implement. Most larger organisations and most managers are poor at radical innovation. If you had been making LP records then you could have introduced incremental innovations in your design and marketing. However if this was your strategy then a radical innovation, the CD, would eventually kill you. The CD manufacturer could similarly introduce various incremental improvements. Once again a radical innovation, music downloads over the internet, would make your offering obsolete. So we need to constantly look for incremental innovations and radical innovations. We need to develop creativity and turn it quickly into innovation.

2. RESEARCH METHODOLOGY

2.1 Types of Research

Types of this research is descriptive qualitative, the reality of the objects investigated is based on simple case that is the Expo-KMI Event 2015. This approach is used to analyse the products and services available in the KMI Expo Event.

This research was done by collecting data from the exhibitors as the informan, the Juries to get the information about the criteria of the assessment. The study of the characteristics of the products and services was done through content analysis , while assessment of the products (things, idea, service and

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places) will be compared and refered to the qualitative parameters and indicators, from the theory.

2.2 Location of the research

The location of the research was done in Ambon as the venue of the competition and expo of technopreneurship, which was held from 9-13 September 2015. The data collection was taken from the competition participants of technopreneur and the products were exhibited in the exhibition

2.3 Data and Data Resources

The data collection was taken from the competetion participants of technopreneurship and the products were exhibited in the competition. They were 179 groups from 83 higher educations ( 41 Universities, 28 Polytechnics, 7 Higher Schools and 4 Institues and 2 Academy).

The Data of this research consists of primary data and secondary data, they are :

a. Primary data

The primary data was obtained from direct interview and observation to the KMI Participants in their booth expo.

b. Secondary Data

The data resources are the Commetee of Ambon Polytechnic, the students from different higher education institutions, the lecturers.

2.4 Data Validation

To validate the data, the triangulation was done by checking the data from different resources, different ways and different times, as stated by William Wiersma quoted by Sugiyono (2006:306) as follow :

“Triangulation is qualitative cross-validation. It assess the sufficiency of

the data according to the convergence of multiple data sources or multiple data collection procedures”.

a. Triangulation to the data resources

Triangulation to the data resources was done directly in the area of Expo in Polytechnic Ambon during the expo from 9-13 September 2015 and by observing all the stands/booths, including the announcement results of assessment done by the jury/adjudicator.

b. Triangulation methode

Triangulation methode was done in order to strengthen the validity and the credibility of the data through the combination of data checking through observation and indepth Interview, to the informan as the reinforcement to the primary data.

2.5 Data Collecting Technique

The collecting of the data consists of some instruments, they are observation, depth interview and documentation. The checklist of observation was designed to investigate the characteristics of products and services in the stands/boothes. The observation is followed by indepth interview untuk to investigate the information related to their innovation of products and services. The were 184 groups from 83 higher educations (41 Universities, 28 Polytechnics, 7 Higher Schools and 5 Institutes and 2 Academy. All the expo participant became the informan of this research since the students’s team were available in the KMI expo 2015 on their own stands and boothes. In this research, the writer assessed the students innovation products based on products Innovation parameter and indicators.

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2.6 Data Analysis Technique

The data analysis technique was done by adopting analisis model spradley’ analysis model (1980) like what is quoted by Sugiyono (2006:284). The anlysis was developped through 4 steps of Spradley Method in sequence : domain analysis, taxonomy analysis, componential analysis and finding fact/cultural value. The sequence of

the analysis was developed since at the beginning of the process and on-going process until the writing of the report. The sequence research was done in circulation and Repetition while the value/cultural theme was “grounded” from the the componential analysis. The sequence of Spradley model can be seen in the following diagram.

Figure 1. The sequence of reseach analysis (Spradley model)

3. RESEARCH RESULT AND

DISCUSSION In order to provide systematic description, the results of this research will be explained in the following sequences :

3.1 The characteristics of products and services (entrepreneurship or technopreneur )

As explain in the previous chapter that the characteristic of entrepreneur and technopreneur is different. In anlysing the product and services, the writer referred to the indicators as follow :

Tabel 1. The indicators of Enterpreneurship and Technopreneurship

NO Indicators of Enterpreneurship NO Indicators of Technopreneurship 1 Incremental - routine business,

modest industry. Example: new coffee shop.

1 Hightech ventures in ICT, electronis, internet, life sciences and BIOTECH. Example: CISCO, Nano Technology.

2 Immitating - limitation of a

venture, same business model and template. Example: new regional branch and franchise operation.

2 Service firm where technology is critical to their mission, business that provides services.

3 Rent seeking - business that utilizes standards, regulation and laws to show on value of an enterprise. Example: licensing of patented ideas, products or trade secrets.

3 Delivery or design of hightech products like computer hardware or devices.

4 Innovating - business type based on innovation. Example: new cure for infectious disease, new DVD format, new memory chip, new ICT enhance home appliance

4 Use of technology in the delivery or conduct of normal business activities.

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Based on the indicators above, the result of the analysis can be seen on the following tables. There are 97 of products and services from universities, but the technopreneur is only 21 (22%) products which consists of high-tech products and the entrepreneur is 76 products (78%). Polytechnics are having more

technological approach to the products, they have 25 products (45%) which use high technology and Institutes,Schools and academy has only 3 products (14%) which fulfill the technopreneur requirement, while the entrepreneur has bigger percentage, that is 86%.

Tabel 2. The comparison of Technopreneur and Enterpreneur

NO Types of Higher Education

Technopreneurship Enterpreneurship Total

1 Universities 21 (22%) 76 (78%) 97 2 Polytechnics 25 (45%) 31 (55%) 56 3 Institues/Higher

Schools/ Academy 3 (14%) 19 (86%) 22

Total 49 (28%) 126 (72%) 175 Resources : KMI-Expo Participants 2015.

From the result of the above analysis, it can be interpreted that eventhough the KMI-Expo was a technopreneur exhibition of products or services, but in the reality, it is only 49 products and services (28%) that can meet the requirements and indicators as technopreneur products.

Polytechnics are the highest contributor for the technopreneur products and services. The comparison of the three categories of the higher institution can be seen in the following figure.

3.2 The relevance of the study program and the types of business

From the products and services exhibited in KMI-Expo 2015, not all the students’ products and services are relevant to their study program. Some groups develop their own business which are not relevant to their study

program, but when the writer interviewed them, they said that the decision of the business they made, concentrated to the trend of the market in the city, such as culinary and fashion. Some of the groups develop the business based on this trend.

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Tabel 3. The Relevance of study program and the types of business

NO Types of Higher Education Relevant Irrelevant Total 1 Universities 59 (61%) 38 (39%) 97 2 Polytechnics 31(55%) 25 (45%) 56 3 Institues/Higher Schools/

Academy 9 (41%) 13 (59%) 22

Total 99 (57%) 76 (43%) 175 Resources : KMI-Expo Participants 2015

From the table above, it can be seen clearly that only 99 groups (57%) of the students develop their business based on their study program that they learn in their institution, but 45% of the groups develop the business

which are different from their study program but actually they have talent and learn the business from their parents. In order to make it clear, the comparison can be seen in the following figure

From the above figure, it can be seen that the universities students is the highest relevant between the business they build and the study program (61%), followed by Polytechnic (55%) and institutes is the lowest, only 41%.

3.3 The products of innovation and invention

As it is mentioned before, it is not easy to decide whether a certain products or services are something new or not. It is quite relatives, it might not new to other people but it is something new for the students. Anyhow, as a researcher, the writer has to decide the characteristics of Creativity, Innovation and Invention.

If new ideas are produced then we have displayed creativity, like what Sloan (2012) show some indicators that there is no innovation until something gets implemented. Somebody has to take a risk and deliver something for a creative idea to be turned into an innovation. An invention could be a product or device or method that has never existed before, and also they are recognized as the product of some unique insight. So every invention is an innovation. But every innovation is not an invention. From the products and services developed by the students, most of the characteristics of creativity is in the form of concrete products as it is seen in the following table

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Tabel 4. The characteristics of the business

NO Types of Higher Education

Products Ideas Services Places Total

1 Universities 82 4 10 1 97 2 Polytechnics 47 1 8 - 56 3 Institues/Higher

Schools/ Academy 19 - 3 - 22

Total 148 (85%)

5 (3%)

21 (12%) 1 175

Resources : KMI-Expo Participants 2015

The scientific justification that can be made from the data above that that products (85%), Ideas (3%) like consultancy works, services (12%) could be the result of the innovation of the students as the result of their creative thinking but it doesn’t mean that the products, ideas, services and places are something new or unique.

3.4 The strengths of the winners’ products and services

The criteria of KMI Awards consists of 7 categories. The criteria is also having some value and score. The following aspects are assessed by the Jury :

a. The Products (Creativity and Innovation) : 15

b. Business Description (Raw material, technological and production process) : 20

c. Marketting (Marketting technology, Target market and marketing strategy) : 25

d. Finance (Cash flow, development and average profit/month) : 10

e. Business Development Potentiality : 10

f. The impact towards the environment and society : 10

g. The presentation (Attitude and performance, presentation material : 10

Based on that above criteria, the adjudicators did the assessment in 2

sequence, preliminary assessment and final assessments. The adjudicators consists of three people and the decision are as follow :

a. The first winner is University Of North Sumatera (USU). The products is diabetic medicine which are sold and ordered from different countries, such as Saudi Arabia, Egipt, Piliphine, Africa, France,Malysia, Brunai, Taiwan, Hongkong, Korea, China, California, Canada, England and Holland. The omzet is Rp 135.000.000,-/month. The business started in 2010 and the students is from the Faculty of Pharmacy, and her faunding is called Kolagit. Now he has 15 employees. The products and the study program are relevant. Since the production using laboratory equipment, it can be classified as technopreneurship. Most of all, the strength of the first winner is the contribution of this products to those who have diabetic problem and the price are not very expensive.

b. The Second Winner Is Politeknik Negeri Sriwijaya (POLSRI). The products are cartoon and illustration design. The business is developing cartoon design. Eventhough it is still new business (March 2015) The everage omzet is Rp. 1.000.000/month but it is a creative work. The study program

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and the business is relevant. It is also can be classified to technopreneurship because it uses computer equipment and online-game.

c. The third winner is Media Creative Polytechnic (POLIMEDIA).

The business is developing mountain adventure. The business is selling place and services Eventhough it is still new business (one year) but the omzet is increasing month by month, and now the everage omzet is Rp. 15.000.000/month. The study program and the business is relevant. It is also can be classified to technopreneurship because it uses computer equipment in producing the advertisement.

d. The fourt winner is State University of jakarta (UNJ)

The business is developing advertising talent agency. Eventhough it is still new business (June 2014) but the omzet is increasing, and now the everage omzet is Rp. 5.000.000 – Rp 15.000.000/month. The study program and the business is not relevant. It is also can be classified to technopreneurship because it uses on line system of marketing the products.

4. CONCLUSION Based on the analysis on the previous descrption, some findings can be concluded as follows :

a. Not all the products and services can be classified to technopreneurship, It is only a small number of products, services and ideas which belong to technopreneurship. From 175 products and services only 49

(28%) can fulfill the requirement of technopreneur, while 126 products (72%) only rutin and classic entrepreneurship.

b. From the relevancy of the study program and the characteristic of business, it can be seen that the universities students is the highest relevant between the business they build and the study program (61%), followed by Polytechnic (55%) and institutes is the lowest, only 41%.

c. The category of business consists of products (85%), Ideas (3%) like consultancy works, services (12%) and the place of travel (1 only). These types of products could be the result of the innovation of the students as the result of their creative thinking and some of the products, ideas, services and places are new and unique. Some of the uniqueness will be on the arts productions.

d. The strengths of all the winners is that they can fulfill the criteria of technopreneur products and services and also the contribution of the products to solve the problem of the society

5. RECOMMENDATIONS a. From the analysis and conclusion

above, it can be recommended to all the higher educations that the next KMI-EXPO 2016, the selections of products should fulfill the requirements and indicators of technopreneur.

b. The business developed should be based on their knowledge, skills that is relevant to their field of study

6. BIBLIOGRAPHY [1] Alma Buchori, 2000

Kewirausahaan, Bandung : CV Alpabeta

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[2] ------------------, 2013 Pedoman Program Mahasiswa Wirausaha (PMW), Jakarta : Direktorat Pembelajaran dan Kemahasiswaan, Dirjen Pendidikan Tinggi.

[3] Hisrich Robert D, et all, 2008. Enterpreneurship, Boston : Mc Graw Hill Internasional.

[4] Susanto Sahid, 1999. Pengembangan Budaya Enterpreneurship melalui proses Pengabdian pada masyarakat, Jakarta : Dirjen Pendidikan Tinggi

[5] Sloane, Paul. 2012. What’s the Difference between Creativity and Innovation. Accessed 4 August 2012

[6] Grasty, Tom. 2012. The Difference Between "Invention" and "Innovation" . http://www.huffingtonpost.com/tom-grasty/technological-inventions-and-innovation_b_1397085.htmlApr 3,2012

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The Application of Entrepreneurship Learning Model Based on Learning Management System to Increase Objective Learning

Achievement in Politeknik Negeri Malang

Mohammad Maskan1, Ahmad Fauzi2, Ludfi Djajanto3 1,2 Lecturer of Business Administration Department of Malang State Polytechnic

3 Lecturer of Accounting Department of Malang State Polytechnic

Abstract

The development of information technology during the learning process in Politeknik Negeri Malang is getting increased. This fact creates the changes of learning pattern from the point of view that lecturer as the only source of learning source becomes a facilitator and motivator with all of various learning media. One of the learning media that popular nowadays is the internet. This study has a purpose to apply the entrepreneurship learning model with LMS and intranet or internet basic in Politeknik Negeri Malang. The study itself held based on the result of learning model development on Entrepreneurship based on LMS that already succeed to apply in the first year and resulting the application validation that more applicable and correct. The type of study itself is a developmental study. The data collection method itself is using several ways including interview, documentation and observation. The population amount is about 600 college students in VI grade and 240 lecturers of the whole major. The sampling is a purposive sampling that taken from 15%. In the technique, it used qualitative descriptive analysis for the data analysis method. The study result on second year is already showing that the developmental study of entrepreneurship based on Learning Management System or LMS is proper to use. It is even suggested by the study expert, learning designer expert, technological expert and college student. Besides that, the application of entrepreneurship developmental model based on LMS can increase the learning purpose achievement. It can be seen from various aspects consist of cognitive, affective and psychomotor in Politeknik Negeri Malang. Key Words: Entrepreneurship, LMS, Internet/Intranet, E-learning

1. INTRODUCTION 1.1 Background of The Study The application of Entrepreneurship learning or E-ship that based on Learning Management System or LMS in Politeknik Negeri malang is the complement of the learning process. It is important to do since Entrepeneurship course has so many material with limited course hour. That is the reason why the Entrepreneurship learning application with LMS basis can make student widened their knowledge, insight and their competency by directly accessing the www.kuliahusaha.com site by themselves. This site can be accessed anytime anywhere. This type of learning approach takes college student as the subject because it can increase student actively response. It is simply because student build their

own knowledge during their learning process. That is the reason why the Student Learning Center approach more proper with the recent situation and condition. On this learning approach, lecturer act as the facilitator, mediator and motivator of student learning process. Besides that, the lecturer also possible to give a whole score on 3 main aspects including student cognitive, affective and psychomotoric.

The application of Entrepreneurship teaching learning methods based ICT and LMS application with internet or intranet device for Politeknik Negeri Malang student can increase the objective learning in Politeknik Negeri Malang.

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1.2 Identification of the Problem How is the application of Entrepreneurship learning model based on Learning Management System or LMS to increase learning objective achievement in Politeknik Negeri Malang?

2. THEORY 2.1 The Development of

Entrepreneurship Learning Model Based on LMS with Internet/Intranet Device

LMS is the application that electrically virtualized and atomized the teaching and learning process. The development of various teaching models up to the involvement and chance given to the student to explore their knowledge according to Jerry Aldridge and Renitta Goldman is caused by the worldviews changes in student that automatically affecting the learning process.

In the educational world, there are 3 worldviews. Those worldviews are:

a. Organic thought : emphasis on the theory that learning means give the chance for student to be active while environment stay passive.

b. Mechanical thought : emphasis to the theory that environment should be active while students get passive.

c. Contextual thought : emphasis on the theory that the interaction between the student and their learning environment, the student with the lecturer held in a balance qualitative and quantitative. This theory is suggests to keep developments in teaching theory because of its relevance. (Aldridge,2002:68). Interactive learning gives stimulate to the lecturer to reflect the entire of their experience with student to increase the future

learning process quality. It is only being possible with various planning. Learning is about behavior changing. The behavioral changing itself consist of various modification process to a permanent shape that held an action, way of thinking, behavior and feeling.

That is why (Kochhar, 1967:27) think that learning means getting new experiences. Learning itself can be successful as long as fulfill two types of requirements.Those requirements are as follows:

a. Learning is an activity that is needed by the student. It means that students will feel that they need to learn. Stronger willing to learn will result higher success level.

b. There is a readiness to learn. The readiness including student readiness to get new experience including knowlegde and skill. The student needs to be ready in any course including sport, academic course and other skilled course.

3. METHODOLOGY 3.1 Research Type This is developmental research type.

3.2 Research Plan First stage is developing the Entrepreneurship topic into internet/intranet learning view basis. Second stage is the test period. This is when the test of learning plan based on internet/intranet that consists of expert overview and field test.

3.3 Research Implementation Personal test, small group and student class will be done during this research to provide validation of learning developmental on Entrepreneurship learning model based on LMS with a ready internet. After revised, there will be disseminates of this learning

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model to the lecturer of entrepreneurship in Politeknik Negeri Malang.

3.4 Data and Data Source Data that collected through a series of test can be categorized into two types based on its function. The function itself consist of 1) data from the first stage of evaluation that functioned as the base to revise the development product, and 2) data from the second stage of evaluation that functioned to rate the development product quality. 3) The result of the learning on application of Entrepreneurship learning based on LMS.

3.5 Instrument and Data Collection Technique

Dealing with the data collection effort such as the learning value documentation (cognitive, affective and psychometric), needs of analysis questionnaire and using interviews as the data collection technique.

3.6 Population and Sample The amount of population itself is 600 college students that already get Entrepreneurship course and 20 Entrepreneurship lecturers in 6 major of Politeknik Negeri Malang. The big sample is around 15% of the whole population that taken with purposive sampling.

3.7 Data Analysis Technique Content Analysis

Qualitative data that gained from the course major expert examination and developmental expert through a series of test tried to be analyzed with content analysis technique in the form

of suggestion, response, critics and suggestion for improvement will be classified. The analysis result of this research used as the base to revise the developmental product.

Descriptive Statistic Analysis

Data that collected through questionnaire, pre test and post test will be descriptive analytic in percentage. A formula that used to count the percentage of each element is as follows:

The effectiveness rate:

81 – 100% = very good/interesting/proper

66 – 80% = good/interesting/proper

56-65% = not too good/interesting/proper

0 – 55% = bad/interesting/proper

4. ANALYSIS AND DISCUSSION 4.1 College Student Result Score When the product of the developmental result such as GBPP and SAP, entrepreneurship module, each chapter. Subject, manual and LMS software finish. After that the three experts held research then college student in this second year will do some scoring toward product developmental result Entrepreneurship model based on LMS that consist of personal, group and class test. The scoring result can be seen on the first table as follow:

answer x score of each choice

score of each choice

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Tabel 1: Personal, Group and Class Recapitulation

No Component

Personal Test

Stage Group Test

Stage Class Test

Stage

Average Score

1 The attention catcher

material 83,34 85 96,8

88,38

2 Prerequisite test 75,56 75 80,8 77,12

3 Prates 75,56 70 77,34 74,3

4 Learning Purpose 76,67 77,5 86,8 80,32

5 Discussion Content

Description 80 76,67 85,87 80,85

6 Exercises 72 67 84,8 74,6

7 Feedback 76,25 75 86,8 79,35

8 Description 80 80 85,6 81,87

9 Summary 76,67 80 85,2 80,62

10 Post test 66,67 65 77,28 69,65

11 Supporting 76,19 80 87,31 81,17

The source: Treated primary data (2014)

The result gained according personal test recapitulation data, group and class on the Table 1 are as follows:

a. The clarity level of instruction to do the pre requirement test with allocated time (77,12%), the clearliness level of instruction to do pratest, easiness of each point of the exercise to be understood and suitability of exercise number with allocated time (74,3%), clarity level of post test instruction, easiness of exercise material to be understood, suitability of each exercise material difficulties level with college students ability, suitability of exercise material with TKP, suitability of exercise material amount with TKP, suitability of exercise amount with allocated to me to do the test (80,32%), advantage of software for student (93,36%), clarity level of information about time allocation, score and feedback (76,96%), whole of the element to get a good score. It means that

the whole element get good score in the expert test stage especially for the clarity level, easy instruction of the requirement test, exercises, postest and the adavantages of this learning software.

b. Interesting material (86,47%), pratest component instruction clarity level, easiness to understand exercise material, suitability of exercise amount (77,12%), subject that should be learn (80,32%), subject matter description claritylevel about concept series, the clarity level of understand understanding concept about problem solving concept, role of image to make the business plan description get clearer and the clarity of example sentence (80,85%), feedback description understanding level, feedback role to make college student get easier learning, feedback role to support college student to find the correct answer and advantage to find student

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learning motivation (79,35%), summary clarity and understandable level, summary role to make easier in understanding of the subject material (80,62), understanding level of the description (81,87%),practical level of LMS software to operate (71,09%),language used clarity level (78,54%), the size of the letter (78,45%), interest level of software toward the college student (88,73%), the role of software to decrease lecturer domination in class and increasing self learning level (81,07%), the whole point get a good score. It means that each of the component gaining good

score on personal test especially for the point of interest seeking, learning purpose clarity level, Software operation practical level and learning product role to decrease lecturer domination in class while increasing self learning process. Based on test material recapitulation on college student, each of developmental product components of Entrepreneurship learning model based on Learning management System or LMS is good and worth to be used.

Application of Entrepreneurship based on LMS objective learning achievement can be seen from table 2 as follow:

Table 2: Average result of objective learning on Entrepreneurship application based on Learning Management System (LMS)

No Learning Objective Type Classical Learning

Model LMS

Learning Model 1 Cognitive 70 85 2 Affective 3,50 3,62 3 Psycometric 3,00 3,10

Source: Processed primary data (2014)

Based on the table 2 above, it can be seen that the result of objective achievement on Entrepreneurship base on LMS course showing higher score compared with conventional learning model . Objective cognitive learning gained 85 which is higher than 75, affective score gained 3,62 which is higher than 3.50 and psycometry get 3,10 that is higher than 3.00. This result can be explained with the application of LMS learning model application. College students can learn the Entrepreneurship learning material in a lot more frequency out of the formal lecture hour. Besides that, e-learning can attract college student interest to learn about the Entrepreneurship material that automatically makes them being more able to mastery

more material. This result is matched with the learning curve that stated when we are commonly doing the same thing with repetition in a long period of time then we will mastery in that.

5. CONCLUSION 5.1 Conclusion a. The component on

Entrepreneurship learning method develoment that is based on LMS already tested through 3 stages and revision. The test is held on personal, group and class where average result is good.

b. The result of Entrepreneurship based on LMS learning application showing higher cognitive achievement, affective entrepreneurship behavior and

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psycometri entrepreneurship competency of college students.

5.2 Implication and Further Action Theoretical Implication

Research result shows that learning based on LMS can create entrepreneurship behavior and entrepreneurship competency. Besides that, this type of learning method can motivate college students to be proactive toward learning process. It means that they become the learning subject where more or less learning material that achieved by college student highly depend on student active action to learn course with several learning media and scoring that contextual and multi dimension. This learning model involves college students to be active, cooperative, participative, reactive and enjoyable. Based on all of the reasons above, learning model with LMS can strengthen the previous research that internet basis of learning model can increase learning purpose achievement.

Practical Implication

The result of Entrepreneurship based on LMS learning research provides empirical data that the application of learning application through internet basis can increase college student involvement in the learning process. Automatically, it can increase the objective learning achievement. That is the reason why learning the method through internet base can be developed in Politeknik Negeri Malang.

Recommendation

Further Product Development

Learning model with LMS based can be applied in another course to develop the result. Automatically, it can increase all of the course in 3

important aspects that consist of cognitive, affective and psycometry.

6. BIBLIOGRAPHY [1] Adri, Muhammad, 2008,

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[13] Hadi, Soetrisno, 2001, Statistik, Jilid 2, Andi Ofset, Yogyakarta

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[14] Harmanto, 2002, Pengembangan Pembelajaran Mata Kuliah Metodologi penelitian dengan Word Wide WEB di STIKOM Surabaya, Tesis, Program Pascasarjana Universitas Negeri Malang.

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[19] Oetomo, Budi S. Dharma, 2002, e-Education: Konsep, Teknologi dan Aplikasi Internet Pendidikan, Andi Ofse, Yogyakarta

[20] Patmanthara, Syaad, 2004, Pembelajaran Berbantuan Komputer Sebagai Manfaat Media Pembelajaran, Jurnal Teknologi Elektro dan Kejuruan, Oktober, 2004

[21] Pancariana, Firman, 2005, Pengembangan Bahan Ajar Tekstual dan Digital pada Pembelajaran Aplikasi Komputer di Perguruan Tinggi, Tesis, Program Pascasarjana Universitas Negeri Malang.

[22] Pavlik, John V., 1996, New Media Technology: Culture and Commercial Perspectives, Singapore: Ally and Bacon

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Bahasa Inggris FKIP Katolik Widya Mandala Surabaya, Tesis, Program Pascasarjana Universitas Negeri Malang.

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[25] Raharjo, Budi, 2001, Pergolakan Informasi di Indonesia akan Siaran?, Artikel Majalah Tempo, Jakarta: November 2001.

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[27] Soekartawi, 2003, Prinsip Dasar E-Learning: Teori dan Aplikasinya di Indonesia, Jurnal Teknodik, Oktober 2003

[28] Siswandari, 2006, Peningkatan Transferable Skills Mahamahamahasiswa Pendidikan Ekonomi Melalui Pengembangan Model Pembelajaran Statistika Berbantuan Komputer, Disertasi, Program Pascasarjana Universitas Negeri Malang.

[29] Soekartawi, Soehardjono, Hartono dan Ansyarullah, 1999, Meningkatkan Instructional Design untuk Meningkatkan Kualitas Belajar-Mengajar, Grafindo Persada, Jakarta

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Analysis of The Influence of Professional Ethics and Independence on The Performance of Auditors

(Empirical Studies on The Accountan Public Firms in Surabaya)

Novi Damayanti Student of Doctoral Program in Accounting of Airlangga University

Lecturer at Islamic University of Darul Ulum Lamongan Email: [email protected]

Abstract

The research of the study purpose about the impact of professional ethics and independence to the auditor performance at Public Accounting Firms in Surabaya. The sample taken in this research is using purposive sampling method. Data is collected using survey method with questionnaire technique. The target of respondent in this research is 100 respondents, but respondent’s data that can be processed is only 74 respondent’s. To test the quality of data from the instruments being used is conducted with validity and reliability test. And multiple linier regression test there are 2 (F test and T test). Hypothesis testing using multiple linier regression analysis with SPSS Ver. 22. The test result showed that, in the simultant partially variable professional ethics and independence has a significant impact on auditor performance. The suggestion of research is for the next research can be done with additional variable which have strong impact on auditor performance and sample of research was limited to the auditor in public accounting firms in Surabaya, the result might be difference if the research sample more expanded Key Words: professional ethics, independence, auditor performance.

1. PRELIMINARY Profession as a public accountant plays a very important social role related to the duties and responsibilities carried by the auditor. The task of a public accountant is to examine and give opinion on the fairness of the financial statements of a business entity based on the standard that has been set by the Indonesian Institute of Accountants (IAI).public Accountant on maintain the quality of professional quality work should be guided by the Code of Professional Ethics of Certified Public Accountants and Public Accountants Professional Standards (SPAP). A professional public accountant can be seen from the accountant's performance in carrying out its duties and functions.

Pratama (2014) Ethics profession is very important for public accountants in performing their duties because of professional ethics is a critical and

fundamental thinking about something related to the field of public accounting and is influenced by education and expertise. With the expertise gained from education is not enough to say a job as a profession, but need a systematic mastery of the theory underlying the practice and mastery of intellectual technique which is the relationship between theory and application in practice. So it can be expected that moral behavior is limited to the validity of the pattern of ethics of the profession. If someone CPAs to understand and apply the ethics of the profession as a guide in their duties then the resulting performance will be better. It is marked if the ethics of the profession is able to be applied by a public accountant would lead to trust and be able to maintain a good relationship between public accountant with clients as well as also with co profession.

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Putri and suputra (2013) Independence is an attitude that is free from the influence of other parties (not controlled and not rely on others), are intellectually honest, and objective (it’s not take sides) in considering the facts and stating its opinion. Independent attitude is needed by an external auditor to provide audit services provided to users of financial statements. In addition, the independence of the external auditor is also one very important factor for assessing the performance of auditors.

The auditing standards include the auditor's professional quality, independence, judgment is used in the audit and the preparation of audit reports. So it can improve the performance of an auditor if the auditor is carrying out the work in a professional manner.

Futri, Juliarsa (2014) professional ethics, independence becomes important in the implementation of inspection functions for consideration in the preparation in addition to finalizing the examination results, as well as to achieve the expectations of quality performance. So we can conclude that if an auditor has no professional ethics and independence, then it is believed that the auditor will not be able to produce results satisfactory performance. So with so trust of the community will disappear against the auditor. Therefore it is very requires the attitude of professionalism in completing tasks in a timely manner.

Based on the above, see the importance of ethical values and independence for an auditor whose duties can improve the results of its performance, the authors are interested to discuss more in depth the professional ethics and independence with the title: "Analysis of

Professional Ethics and Independence Performance Against Auditor (Empirical Study of Public Accounting Firm Surabaya) ".

Based on the background described above, the identification of problems in this study was formulated as follows:

1. Is the professional ethics significantly affect the performance of the auditors?

2. Does independence significantly affect the performance of the auditors?

2. VARIABLE AND THEORETICAL HYPOTHESES FORMULATION

Understanding Professional Ethics

According to Odia (2014) Professional Ethics is a behavior or act that is set to maintain professionalism in the job.

According Agoes (2012) the principles of professional ethics, which is the cornerstone of ethical professional behavior, consisting of eight principles:

a. Responsibility Profession

Each member must use moral and professional judgment in all the activities he does.

b. Public interest

Each member is obliged to always act within the framework of service to the public, respect the public trust and show commitment to the professionalism.

c. Integrity

Each member must fulfill their professional responsibilities with the highest possible integrity.

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d. Objectivity

Each member should maintain objectivity and free from conflicts of interest in fulfilling his professional obligations.

e. Competence and Prudential Professionals

Each member must carry out his professional services with care, competence and diligence and has a duty to maintain professional knowledge and skills.

f. Secrecy

Each member shall respect the confidentiality of information obtained during professional services and should not be put on or disclose such information without consent.

g. Professional Conduct

Each member should behave consistent with the good reputation of the profession and avoid actions that may discredit the profession.

h. Technical Standards

Each member must carry out his professional services with technical standards and the relevant professional standards. So that the indicators used to measure the variables of professional ethics are:

The responsibility of the auditor profession

Integrity Objectivity Personality Implementation of the code of

ethics

Definition of Independence

According Justiana (2010) Independent, meaning not easily influenced, not justified favor of the importance of anyone, recognize the obligation to be honest not only to the management and company’s owners, but also to creditors and other parties who put trust (at least partially) on the independent auditor's report ,

So that the indicators used to measure the independent variables are:

- Length of client audit relationship

- Replacement of auditor

- The amount of audit fees

- Provision of client

Understanding Performance Auditor

According to Fattah (2014) performance is about behavior or what is done by employees, instead of what is produced or generated from their work.

So that the indicators used to measure the performance of the auditor are:

- Quality of results

- Quantity of results

- On time

- Cooperative with other work

Conceptual framework

Each of the research process require awake design or design research and future strategic plans so that research can be operationalized in a systematic. As a concrete step in this research, it will be presented in the form of a framework as follows:

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Conceptual framework Independent Variable

Research Hypothesis

The hypothesis is an allegation that needs to be known to be true, which means that allegation may be true may be wrong (Aini, 2009)

Based on the conceptual, it can be concluded that the higher the professional ethics and auditor independence possessed the higher the level of performance of auditors produces. Based on these explanations can be formulated hypothesis is as follows:

H1: Suspected professional ethics simultaneous variables affect the performance of auditors.

H2: Suspected simultaneous independent variables affect the performance of Auditors. Research Approach

In the approach to this study, researchers used a quantitative approach, which means building research in the process of implementation using statistical procedures or other means of quantification for measuring variables of research (Neuman, 2011). The type of research is explanatory research, including research that tries to explain the relationship between variables influence the research, in this case the

relationship between the variables of professional ethics and independence of the auditor performance variables.

Subject Research

Population

Population is the generalization region consisting of a subject or object that has certain qualities and characteristics defined by the researchers to be learned and then drawn the conclusion (Sugiyono, 2013) .The The population of this research is Public Accounting Firm (KAP) in Surabaya.

Sample

The sample is part of the number and characteristics possessed by this population (Sugiyono, 2013). The sample in this study KAP area of Surabaya.

As for the sample of the auditors who worked as an examiner at 7 Public Accounting Firm Surabaya namely:

a. Public Accounting Firm Made Sudarma, Thomas dan Rekan Business License Number: KEP-078/KM.5/2006 Kayon street No. 20 J Surabaya

b. Public Accounting Firm Catim, Atjeng, Sugeng, dan Rekan Business License Number: 1259/KM.1/2011

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Progo street No. 10 Surabaya (60241)

c. Public Accounting Firm Handori Sugiarto Adi dan Rekan Business License Number: 444/KM.1/2009 Manyar Rejo street IV No. 4 Surabaya (60118)

d. Public Accounting Firm Sutjipto Ngumar dan Rekan Business License Number:KEP-065/KM.6/2001 Kertajaya street No.136Surabaya (60282)

e. Public Accounting Firm Drs. Chandra Dwiyanto Business License Number: KEP-655/KM.17/1998 Musi street No. 41 Dokter sutomo, Tegalsari, Surabaya (60275)

f. Public Accounting Firm Johan Molanda Mustika dan Rekan Business License Number: 1016/KM.1/2010 Manyar Kertoarjo street V No. 20, Surabaya (60285)

g. Public Accounting Firm Paul Hadiwinata, Hidajat, Arsono dan Rekan Business License Number:KEP-347/KM.6/2004 Ngagel Jaya steet No.90 Surabaya 60283

3. SAMPLING TECHNIQUES Sampling techniques in this research using random sampling theory. According Sugiyono (2013) Random sampling is the selection of samples that all elements of the population has the same chance of being selected as a member of the next sample to be studied

Sources and Types of Data.

a. Types of Data

The data used in this research is primary data. Primary data is data obtained directly from the original

source (not through intermediaries media) (Sugiyono, 2013). The primary data used in this study is the result of questionnaires distributed by the researchers.

b. Data Sources

In this study, using primary data obtained from the questionnaire or list of statements that were distributed to the respondents by sending questionnaires to public accounting firm that became the Surabaya area sampling in this study.

4. RESEARCH INSTRUMENTS According Sugiyono (2013) is a research instrument as a tool to obtain data that aims to measure the variables previous research that has been formulated based on the problems and theory research. The research instrument used in this study are:

Questionnaire

Namely data collection techniques by giving written questions on any staff in the firm include: (junior auditors, senior auditors, supervisors, managers, partner). At this data collection technique using a Likert scale technique, performed using a Likert scale of 5 (five) rating score, namely:

• To answer strongly agree (SS) rated 5

• To answer agree (S) rated 4

• To answer the neutral (N) rated 3

• To answer disagree (TS) rated 2

• To answer strongly disagree (STS) rated 1

The variables in this study consisted of two types of variables, as follows:

a. Independent variables, is all variables that are not tied to any other variable is often called the

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independent variable. Independent variables in this study are: professional ethics (X1), independence (X2).

b. The dependent variable, the variable is bound to other variables. The dependent variable in this study are: auditor performance (Y).

5. DATA ANALYSIS METHODS In this research, data analysis techniques that will be used by the author are:

Regression Analysis

Yamin and Sofyan (2013) In this analysis using 1 (one) dependent variable (y) and two (2) independent variables (x1, x2), with a model of the following equation:

y = a + b1 b2 x1 + x2 + e

Where :

a = constant

y = Performance auditors

x1 = Ethics profession

x2 = Independence

e = Variable uncontrolled

b1, b2, b3 = coefficient of variables

Test F

Yamin and Sofyan (2013) to test the truth of the hypothesis, then used the F test, by comparing F test with F table.

The formula used is:

)1/()1(

/2

0

knR

KRF

R = coefficient of determination

K = The number of independent variables

n = number of samples

Fo = F test were then compared with F table. With the testing criteria as follows:

Ho = b1, b2 = 0 (Overall there is no significant impact of the variable professional ethics and

independence on the performance of auditors).

Ho ≠ b1, b2 ≠ 0 (collectively, no significant impact of the variable professional ethics and

independence on the performance of auditors).

If Fo > F table then Ho is rejected, which means that the independent variables together both have a significant impact on the performance of auditors and vice versa.

1. T test Yamin and Sofyan (2013) To test the partial regression coefficients used T test Diguakan formula is:

b = regression coefficient

sb = Standard error of regression coefficient

With the testing criteria as follows:

• If t test < t table then Ho accepted and Ha rejected

• If t test > t table then Ha accepted and Ho rejected.

6. RESEARCH RESULT To find out how much the level of professional ethics and independence on the performance of auditors in public accounting in Surabaya, researchers used a calculation of the results for each variable as follows:

Description of variable research results

This description explains the respondents or the questionnaire distributed to any research, where the overall result can be seen below:

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a. Details Answer Respondents Variable Professional Ethics

No. Questions STS TS N S SS

1 The audit report can be justified by the auditor to improve audit performance.

1 56 17

Percentage 1,4% 75,7% 23% 2 Auditors have a sense of

responsibility when the results of the tests still require repairs and improvements.

6 57 11

Percentage 8,1% 77% 14,9% 3 Auditors can not be

intimidated by other people and not subject because of pressure exerted by others in order to influence the attitudes and opinions.

50 24

Percentage 67,6% 32,4% 4 Auditor always consider the

following issues its consequences carefully.

7 50 17

Percentage 9,5% 67,6% 23% 5 Auditors shall not show

partiality to anyone who has an interest in his work.

3 46 25

Percentage 4,1% 62,2% 33,8% 6 Each member should maintain

objectivity and free from conflicts of interest in fulfilling his professional obligations.

1 56 17

Percentage 1,4% 75,7% 23% 7 Each an accountant, you

should be responsible for the profession you choose.

5 51 18

Percentage 6,8% 68,9% 24,3% 8 In the work, you will be

concerned with the public interest, rather than personal interests.

34 29 11

Percentage 45,9% 39,2% 14,9% 9 While receiving the financial

report, you work within a code of conduct that has been established.

10 48 16

Percentage 13,5% 64,9% 21,6% 10 You will uphold the

professional code of ethics, 48 26

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even though you get a small compensation.

Percentage 64,9% 35,1%

b. Respondents answer the details of variable Independence


1 If there is a weakness in the external auditor's independence will harm the public.

1 43 30

Percentage 1,4% 58,1% 40,5% 2 Provisions in determining the

level of materiality is determined by the auditor's ability to make their own decisions without the pressure of the other party.

5 45 24

Percentage 6,8% 60,8% 32,4% 3 Preparation of auditing reports

free of interference to determine, eliminate, or modify certain parts were examined.

3 39 32

Percentage 4,1% 52,7% 43,2% 4 In verifying, auditors have the

freedom to access all information related to the audit.

5 36 33

Percentage 6,8 48,6% 44,6% 5 During verification the auditor

to obtain support and good cooperation with the client.

7 39 28

Percentage 9,5% 52,7% 37,8% 6 Client management gives

freedom to the auditors in determining the evidence required and the object to be examined.

5 45 24

Percentage 6,8% 60,8% 32,4% 7 Auditor verification activities

should be free from personal interests auditor.

2 33 39

Percentage 2,7 44,6% 52,7% 8 Auditors must be free of

personal desire nor the authorization to modify the material evidence for audit activity.

10 36 28

Percentage 13,5% 48,6% 37,8% 9 Auditors must be free from

pressure of any party to report the findings of the material.

3 37 34

Percentage 4,1% 50% 45,9%

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10 Auditors should be free to use judgment regarding the facts and opinions in the audit report.

5 38 31

Percentage 6,8% 51,4% 41,9%

c. Respondents answer the details of variable Independence


1 The higher the education level of the auditor, the performance is more professional.

1 51 22

Percentage 1,4% 68,9% 29,7% 2 Auditors who have a long

experience in the field, the better its performance.

6 50 18

Percentage 8,1% 67,6% 24,3% 3 When I was motivated, I

will improve the quality of performance.

50 24

Percentage 67,6% 32,4% 4 When I was motivated, I

will increase the productivity of work.

10 43 21

Percentage 13,5% 58,1% 28,4% 5 The work that I do

motivates me to do my best as an auditor.

9 40 25

Percentage 12,2% 54,1% 33,8% 6 I rate my highest

performance compared to the performance of other auditors my level.

9 44 21

Percentage 12,2% 59,5% 28,4% 7 Maintain improving

relations with clients is an important part of my job.

5 49 20

Percentage 6,8 66,2% 27% 8 I was able to finish my

work on time 34 29 11

Percentage 45,9% 39,2% 14,9% In processing the data, this study used the following methods:

Quality Test Data

There are two concepts to measure the quality of the data is by using validity and reliability test:

Test Validity

Test the validity of the tests on items of questions in the questionnaire.

Testing was conducted to test whether the proper research instrument used in this study. An item is said to be valid if it has a strong support for the R total score count is greater than the R table.

Validity of Test Results

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Test Reliability

Reliability test was conducted to assess the consistency of the research instrument, the instrument is stated realibel if Cronbach alpha values above 0.6.

The reliability test results

Viewed from a reliability test recapitulation table above can be seen that the Cronbach's Alpha value

0,719diatas 0.6 then the variable reliable.

Multiple Linear Regression Analysis

Linear regression was performed to analyze the influence of professional ethics and independence on the performance of auditors. In this study the multiple linear correlation calculation is 95% or with a significant level of 5% (a = 0.05). In summary the results of multiple linear regression analysis are shown in the following table:

Test Multiple Linear Regression

Coefficientsa

Model Unstandardized Coefficients

Standardized Coefficients

T Sig. B Std. Error Beta 1 (Constant) 15.864 2.655 5.974 .000

Etikaprofesi .329 .048 .624 6.889 .000 Independensi .108 .043 .230 2.533 .014

Dependent Variable: kinerja auditor

From the above table obtained results of the analysis that has been done, the regression equation is as follows: Y = 15 864 + 0,329X1 + 0,108X2 + e

Description: Y: Performance Auditor

X1: Professional Ethics

X2: Independence

From the above equation it can be seen that the coefficients of the equation the regression for professional ethics variable (X1) is positive, while the regression equation for the independence of variables (X2) is negative. This can be explained as follows:

Professional ethics variable (X1) positive effect on the performance of auditors (Y), with a coefficient of 0.624

Independent variable (X2) no positive effect on the performance of auditors (Y), with a coefficient of 0.230

hypothesis testing

Testing the hypothesis in this panelitian done twice, namely simultaneous test (F test) and a significant test of individual parameters (T test).

test F

To test the first hypothesis F test was used to test the influence of independent variables on the dependent variable simultaneously. This testing is done by comparing the value of F test with F table

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From the calculation above table can be seen that F count showed a value of 25.753 with a significance level of 0.000 where F count> F table (25.753> 3.13) or Sig F = 5% (0.000 = 0.05). Meaning that simultaneous professional ethics variable (X1), and independence (X2),

a. significant effect on the performance of auditors variable (Y).

Thus the first hypothesis assumed that simultaneous professional ethics variable (X1), and independence

(X2), a significant effect on the performance of auditors variable (Y) can be concluded Ho accepted or rejected.

b. T test (testing the hypothesis partially)

To test the hypothesis that both T is then tested to determine the significance of the independent variables partially to teriakat variable. From the calculation above table can be seen that t of each independent variable with a value of p = 0.05

Test Results T

Variabel t hitung t table Sig-t Keterangan Etika Profesi (X1)

Independensi (X2)

6,889

2,533

1,666

1,666

0.000

0.014

Signifikan

Signifikan

Based on the above table shows that the t value of professional ethics variable (X1) of 6.889 and t of variables independence (X2) amounted to 2,533 while t table of both variables at 1.666. It can be stated that:

1. Variable professional ethics (X1) a significant effect on the performance of auditors (t > t table) then accepted Ha Ho is rejected.

2. Variable independence (X2) significantly affects the performance of auditors (t > t table) then accepted Ha Ho is rejected.

7. INTERPRETATION OF RESULTS

From the results of calculations performed by the authors using multiple linear regression analysis were assisted using SPSS version 22 system obtained the regression equation Y = 15.864 + 0,329X1 + 0,108X2 this means for professional ethics variable (X1) and the independent variable (X2) are the relation to variable auditor performance (Y).

a = 15.864 is the intercept which means that if the independent variables that influence = 0, then the results obtained from the performance of the auditor is 15.864. So as to auditors play an important role in improving performance.

ANOVAa Model Sum of Squares Df Mean Square F Sig.

1 Regression 173.790 2 86.895 25.753 .000b

Residual 239.562 71 3.374 Total 413.351 73

a. Dependent Variable: kinerja auditor

b. Predictors: (Constant), independensi, etika profesi

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b1= 0.329 means professional ethics variable has a positive effect on the performance variables auditor or in other words when the professional ethics factor increased by one unit. it will be followed by an increase in the performance of 0,329dengan auditor considers other variables constant.

It means that if an auditor enhance the professional ethics of the auditor's performance will increase.

b2=0.108 means that the independence factor does not have a positive influence on the performance of auditors, or in other words, if independence is increased by one unit, it will be followed by an increase in the performance of auditors of 0.108 to consider other variables constant.

Meaning that if the auditor increases the independence of the auditor's performance will increase.

Calculation analysis along with the use of the F test obtained by value F test 25.753, this means that the variable profession ethics (X1) is lacking simultaneously have a positive effect on the variable performance of auditors (Y) while the variable independence (X2) is also simultaneously have a positive effect on the variable auditor's performance (Y). Therefore KAP (Public Accounting Firm) may consider these two variables in order to increase the performance of auditors.

Partially through t test were done the authors obtained a yield of 6.889 (t1) with a significance level of 0.000 means that the variable professional ethics (X1) has a significant influence on the performance of auditors (Y), while the variable independence (X2) obtained yield was 2.533 (t¬2) with a significance level of 0,0,14 This means that the independent variable

(X2) does not have a significant influence on the variable performance of auditors. In this study the T table we can see in the attachment of 1.666. T test we can say is significant if T count is greater than or equal to T table.

8. CONCLUSION Based on the analysis conducted by the authors in the previous section, it can be deduced as follows:

1. Based on the test multiple linear regesi namely the F test results, professional ethics and independence simultaneously significant effect on the performance of auditors that F count is greater than or equal to F table, and therefore if the professional ethics and independence of an auditor, the better the performance auditor also the better.

2. Based on the test results of T in this study can be concluded that professional ethics variable (X1) and the independent variable (X2) significantly affects the performance of the auditor's variable (Y), in this study professional ethics variable (X1) which have more influence on the performance of auditors.

9. SUGGESTION From the analysis and the conclusions that have been obtained in the above researchers suggest as the following :

1. It is expected that further research provides more questionnaires to senior auditor, auditor who has experience of more than 3 years

2. It is expected that further research in order to increase the number of samples of public accounting firms in Surabaya.

3. Further research is also expected to collecting data not only from

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the questionnaire but also adds to the observation and interviews.

4. For auditors, need to improve the ethics of his profession in the work, because it can improve its performance in the work.

10. BIBLIOGRAPHY [1] Abdullah, et al, 2012. Pengaruh

Stres Kerja terhadap Kinerja Auditor melalui Motivasi kerja sebagai Variabel Intervening studi pada Auditor Intern di Pemerintah Provinsi Aceh. Jurnal Akuntansi.Volume 2 No. 1, November 2012. Pascasarjana Universitas Syiah Kuala: Banda Aceh

[2] Agbo, Aruomoaghe. 2014. Peformance Audit: A Tool for Fighting Corruption in the Nigeria’s Public Sector Administration. International Journal of Management and Sustainability, 2014, 3(6): 374-383. Igbinedion University: Nigeria

[3] Agoes. 2012. “Auditing:. Edisi ke empat. Buku 1. Salemba Empat: Jakarta

[4] Agoes. 2012. “Auditing:. Edisi ke empat. Buku 2. Salemba Empat: Jakarta

[5] Aini. 2009. Pengaruh independensi auditor, pengalaman auditor dan etika auditor terhadap kualitas audit. Skripsi yang di publikasikan. Universitas Negeri Syarif Hidayatullah: Jakarta

[6] Al-Matari, et al. 2014. The Effect of the Internal Audit and Firm Peformance: A Proposed Research Framework. Jurnal International Review of Management and Marketing. Vol. 4, No. 1, pp 34-31 ISSN: 2146-4405. Universiti Utara: Malaysia

[7] Arumsari. 2014. Pengaruh Profesionalisme Auditor, Independensi, dan Gaya Kepemimpinan terhadap Kinerja Auditor pada Kantor Akuntan Publik di Bali. Tesis yang di publikasikan. Universitas Udayana, Denpasar : Bali

[8] Awaluddin. 2013. Pengaruh Independensi dan Kompetensi Auditor Terhadap Kepuasan Kerja dan Kinerja Auditor Inspektorat Kota Makassar. Assets. Volume 3 Nomor 2 : Makassar

[9] Bavec. 2010. Social Responbility and Professional Etihics in Management: Does it matter?. Mic. University of Primorska. Ankara, Turkey 24 – 27 November 2010

[10] Elder, et al. 2011.Jassa Audit Dan Assurance. Salemba Empat: Jakarta

[11] Fakultas Ekonomi Unisda, 2013, “Pedoman Penyusunan Skripsi”, Unisda Press: Lamongan

[12] Fakultas Ekonomi Unisda. 2015. “Modul Mudah Analisis Data dengan SPSS” UnisdaPress: Lamongan

[13] Farouk, Hassan. 2014. Impact of Audit Quality and Financial Performance of Quoted Cement Firms in Nigeria. International Journal of Accounting and Taxation June 2014, Vol. 2, No. 2, pp. 01-22 ISSN: 2372-4978 (Print), 2372-4986 (Online). Nigeria

[14] Futri, Juliarsa. 2014. Pengaruh Independensi, Profesionalisme, Tingkat Pendidikan, Etika Profesi, Pengalaman dan Kepuasan Auditor pada Kualitas Audit Kantor Akuntan Publik di Bali. E-Jurnal Akuntansi. Universitas Undayana: Bali

[15] Gomez, Padia. 2014. Public Performance Audit Reports: Extent of Format Compliance South Africa versus Australia. Global Review of Accounting and Finance Vol. 5. No. 1. March 2014. Pp. 13 – 26 University of Witwatersrand.: Afrika Selatan

[16] Justiana. 2010. Pengaruh etika, independensi, pengalaman dan keahlian auditor terhadap opini audit. Skripsi yang di publikasikan. Universitas Islam Negeri Syarif Hidayatullah: Jakarta

[17] Kurnia. .et al, 2014. Pengaruh Kompetensi, Independensi, Tekanan waktu dan Etika Auditor terhadap Kualitas Audit. E-Jurnal Akuntansi Fakultas Ekonomi. Universitas

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Trisaksi. Volume ,1 Nomor 2, September 2014: Jakarta

[18] Kurniawanda. 2013. Pengaruh profesionalisme Auditor dan Etika Profesi terhadap Pertimbangan tingkat materialitas. e-Jurnal Binar Akuntansi. Universitas Jambi Vol. 2 No. 1 Januari 2013

[19] Lawalata, et al. 2012. Pengaruh Independensi Auditor, Komitmen Organisasi, Gaya Kepemimpinan dan Budaya Organisasi terhadap Kinerja Auditor. Jurnal

[20] Mulyadi, 2011.Auditing. Edisi 6. Salemba Empat (a): Jakarta

[21] Mulyadi, 2011.Auditing. Edisi 6.SalembaEmpat (b): Jakarta

[22] Neuman. 2011. “Social Research Methods Qualitatif and Quantitative Approches”. Seventh Edition. Pearson: USA

[23] Nini, Trisnawati. (2009). Pengaruh Independensi Auditor pada KAP Big Four terhadap Manajemen laba pada Industri bahan dasar, kimia dan industry barang konsumsi. Jurnal bisnis dan akuntansi Vol. 12 No. 3, Desember 2009. Universitas Tarumanagara: Jakarta

[24] Odia. 2014. Performance Auditing and Public Sector Accountability in Nigeria: The Roles of Supreme Audit Institutions (SAIs). Asian Journal of Management Sciences & Education. Vol. 3(2) April 2014. Department of Accounting. University of Benin, Benin City: Nigeria

[25] Pratama. 2014. Pengaruh Kecerdasan Emosional dan Etika profesi terhadap Kinerja Auditor ( Studi empiris KAP Palembang). Skripsi yang dipublikasikan. Fakultas Ekonomi Universitas IBA: Palembang

[26] Putra, Ariyanto. 2012. Pengaruh Independensi, Profesionalisme, Struktur Audit dan Role Stress Terhadap Kinerja Auditor. Jurnal. Universitas Undayana: Bali

[27] Putri, Suputra. 2013. Pengaruh Independensi, Profesionalisme, dan

Etika Profesi Terhadap Kinerja Auditor pada Kantor Akuntan Publik di Bali. E-jurnal Akuntansi. ISSN: 2302-8556. Universitas Udayana, Denpasar : Bali

[28] Ramadhanty. 2013. Pengaruh Pengalaman, Otonomi, Profesionalisme dan Ambiguitas peran terhadap Kinerja Auditor. Jurnal Nominal. Volome 2 Nomor 2. Universitas Negeri Yogyakarta

[29] Shamsudin, Rahman. 2014. The Relationship Between Emotional Intellingent and Job Peformance of Call Centre Agents. International Conference on Innovation, management and technology Research, 22-23 september 2013 Universiti Teknologi MARA Kampus Kelaten: Malaysia

[30] Sugiyono. 2013. “Metode penelitian kuantitatif, kualitatif, dan R&D”. Alfabeta: Bandung

[31] Tandirerung. 2012. Independensi Auditor KAP dari aspek system pembayaran fee audit. Jurnal Eksis Vol. 8 No. 1 maret. Jurusan Akuntansi Politenik Negeri: Samarinda

[32] Tjun, et al. 2012. Pengaruh Kompetensi dan Independensi Auditor Terhadap Kualitas Audit. Jurnal Akuntansi. Vol. 4 No. 1 mei 2012: 33-56. Universitas Kristen Maranatha: Bandung

[33] Wati..et.al. 2010. Pengaruh Independensi, Gaya Kepemimpinan, Komitmen Organisasi dan Pemahaman Good Governance Terhadap Kinerja Auditor Pemerintah (Studi di Kantor Pemerintah di BPKP Perwakilan Bengkulu). Simposium Nasional Akuntansi XII : Purwokerto

[34] Widodo, Joko. 2008. Membangun Birokrasi Berbasis Kinerja. Cetakan ke Empat, Bayu Media: Malang

[35] Yamin, Sofyan, 2009 “Teknik analisis Statistik terlengkap dengan software SPSS”. Salemba Empat: Jakarta

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Development of Indonesian Learning Model Based On Stengthening of Rasionality and Soft Skill for Slow Learner

Students

Nur Hasyim1, Ade Sukma Mulya2, Sri Wahyono3

Email: [email protected] Politeknik Negeri Jakarta

Abstract

Indonesia has a human resources that criterion of slow learner’s. Slow learner’s is our student that have intellectual quotion 65—79 according to weschler scale. The axperience from giving Indonesian learning since 2011 informs that slow learners find problem on understanding material lecture. They will confuse when that is given complex command. Meanwhile slow learner on Politeknik Negeri Jakarta is diploma 3 student that according KKNI standard that they must accompolish 5 level. Therefore, development of Indonesian learning model based on stengthening of rasionality and soft skill for slow learner students is needed for giving problem solution. That model idea is based on SCREAM by Mangunsong (2009) and Greenlee Psychological and Support serivice (2014) about slow learner’s learning theory. The research conducted by development research. Then with conducting interviews with physiologist, linguist, education expert, slow learner parent and reading text book and article about slow learner learning knew that strengthening of rasionality can done emphasizes structure, examples, repetition, and based goal learning, meanwhile soft skill development can be done by more engaging them on learning. 1. INTRODUCTION Regulation of the Minister of National Education Republic of Indonesia Number. 70, 2009 provides the opportunity for all learners who have the disorder or special talents to take part in education or learning in an educational environment jointly with learners in general. The opportunity to be able to provide education to citizens with special needs are taken by Politeknik Negeri Jakarta to manage slow learner a student, study marketing management, diploma level 3, with special class, and according KKNI that qualified graduates must meet the qualification competence level 5 KKNI.

The axperience from giving Indonesian learning since 2011 Informs that the problem of slow learners find understanding on lecture material, specially in connection two ideas. This problem needs to look for solutions so that they are successful because Indonesian study is the basic courses that determine the success of students learning a variety of

disciplines. The solution in question is necessary to develop Indonesian learning model based on ratonality and soft skill strengthening as an effort to study the success of students so that this question research is what is Indonesian learning model based on rationality and soft skill for success of slow learner? The rationality in this study is defined as the ability to think logically and systematically, while soft skills interpreted as confident.

The model development will the idea of modeling on the basis of rationality motivated by the slow learner learning theory by Simangungsong with SCREAM theory, while Greenlee Psychological and Support Servive (2014) stated that involves slow learning in a variety of activities can be used to improve learning sluggish and the research implemented by development research.

2. THEORY Mangunsong (2009: 15-27) stated concept of slow learner managing that

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the model of education for slow learner can be done with integration model; it is a special class, while on some purposes, the students are integrated with the normal class. She suggested that on slow learner education is used the concept of SCREAM to use: (1) Structure (emphasis on structure / pattern), (2) Clarity (explain in xylophone), (3) Redundancy, (4) Anthusiasm (delivered with gusto), (4) appropriate pace (give appropriate tempo), (5) Maximized engagement (to maximize engagement).

Concept of education for slow learner stated also Greenlee Psychological and Support Servive (2014). The concept is (i) expose the student regularly and systematically to rich and varied vocabulary, syntax, and discourse patterns, (ii) involve the student in structured and unstructured individual and group play interactions and conversations, (iii) for tasks that the child typically finds difficult, use a system of modeling to teach the child new skills, (iv) provide access to and a curriculum based on print and literacy-rich materials, (v) find ways to expose the student to more print, in the environment, through reading with the child, and through teaching concepts of print. In dramatic play center, (vi) encourage the child to share his plans for play and then review what he did after play, (vii) ask the student to paraphrase instructions or to repeat the directions to you before beginning on a task, (viii) repeat directions as many times as necessary and check frequently to ensure that the student understands the task, (ix) provide practice for the student through retelling events or stories. For example, read the student a short story and ask the student to repeat the events in sequential order or to identify the major story

components, (x) provide specific instruction in vocabulary, (xi) teach the student what various words mean, (xii) while reading to the child, pause to define any unfamiliar words, (xiii) read the same book more than once to the child. Encourage the child to actively participate while you read. Allow him or her to ask and answer questions and relate the new words to his or her own experiences. After reading a story, have a conversation with the child about the book, (xiv) use new or interesting words many times with the child. Repeated exposure in many different contexts will help the child learn the new word, (xv) to help increase phonological awareness, play games that focus on the sounds of words, such as rhyming games and songs, thinking of words that start with a particular sound, and counting the “beats” or syllables of words, (xvi) use a variety of classroom activities for promoting phonological awareness, (xvii) these activities should be interactive and game-like, involving singing, rhyming, clapping and movement, (xviii) to promote phonological awareness, use literature that plays with language sounds, (xix) read texts that emphasize rhyming patterns, illiteration, and the manipulation of phonemes, (xx) teach the student the difference between letter sounds and letter names.

Hasyim and Ade (2013) found model of slow learner based on potential student. They said that potential student that could used as student’s competency. Hasyim and Ade model suggested that slow learner managing should used psychotest, teacher has slow learner and learning of slow learner knowledge; slow learner with IQ 65-79 that could managed.

About of slow learner was explained Khan (2012) that Slow learners are

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those pupils who have limited ability due to different reason in the education process. Slow learner is advance word for “backward” or “mentally retarded” and “Educationally subnormal” (E.S.N.). Chauhan (2011). He stated that the slow learner is a learner or anyone who has the intelligence, between 76 to 89. The relatively low value of intelligence. As a result, among others, they become sluggish and less able to mingle with his friends. They are also not optimal in the material captures basic lessons. Achievement of the performance is to be low (not the same as the performance of peers). Children are slow to learn the difficulty in understanding the things that are abstract and symbolic, such as language, numbers, and concepts. On the other hand, they are generally patient and cooperative. They need help, among other special classes or special treatment.

Based on the literature study was not found research that have done the development of reinforcement learning model based on rational and soft skills for slow learner, but found studies that have investigated the slow learner. The first is research Ririn Yustika et al. (2013) entitled " Meningkatkan Kemampuan Mengenal Kemampuan Mengenal Huruf Vokal Melalui Media Puzzle bagi Anak Slow Learner ". The results of research that through puzzle model can improve its ability to recognize vocal up 80%. The second is study conducted by Nelfitri Susanti et all (2014) entitled "Meningkatkan Kemampuan Membaca Permulaan Melalui Metode Abacaga bagi anak Lambat Belajar". The results showed that through abacaga methodcan be improved slow learner child's reading ability. The third is a study conducted by Fatma Herlinda (2014) entitled "

Meningkatkan Kemampuan Membaca Kata Melalui Media Audio Visual bagi anak slow learner". The results showed that through audio-visual media can be improved slow learner child's reading ability. The study of another language learning presented by Tri Wiratno (2013). He revealed that language learning should be implemented based on text and types of text because goal of language learning is producing of text.

3. METHODOLOGY This research was conducted using research development, the study intends to develop a learning model based on strengthening Indonesian rationality and soft skills. Data were collected by conducting interviews with a focus group discussion, with psychologists, linguists, and experts in education. In addition, data was also collected by reading books and articles about Indonesian language learning for slow learner.

4. DATA DESCRIPTION AND DISCUSSION

4.1 Data Description After conducting focus group discussions with psychologists, linguists, education experts, read books and articles on teaching methods for slow learner, and observe classroom teaching experience slow learner formulated as follows. First, the strengthening of rationality in Indonesian language learning for slow learner can be done by (i) based on the structure of the language so that language learning issues are not forgotten or remain a focus of learning; students need to be introduced to the pattern or structure of words, phrases, clauses, and sentences, and paragraphs. Second, the strengthening of rationality can also be done by providing learning by taking into account the difficulty level of the exercise; should be given the

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easiest material then the material is more difficult; for example, we introduced a single sentence then compound sentences. Third, the strengthening of rationality can be carried out with due respect to proximity, in particular the proximity of the student study program, for example, marketing management students need to be introduced vocabulary related to marketing management; Do not introduced vocabulary that is not related to the management of marketing because it is not effective. Fourth, keep in mind the level of interest or pleasure lecture material. More interesting material can be given early. Fourth, keep in mind the level of interest or pleasure lecture material. More interesting material can be given early. Fifth, for all materials provided must be given an example in accordance with the purpose of learning Indonesian. Sixth, repetition is an important factor that must be done in an effort to improve the intelligence and skills of students. Let us not forget that learning needs to be based on learning objectives Indonesian, the student must be able to write and speak using correct language. As in order to strengthen soft skills, language learning must be done by involving students in learning more so that they have confidence and be able to think logically.

4.2 Discussion Learning a language is not easy. It is known that some people can not write a scientific paper correctly. Similarly, some people can not speak well. Therefore, various ways of learning a language developed so that language learners can understand the language well. Wiratno has developed languge learning model based on text. The model is better and more appropriate for advanced learners. Meanwhile, the model applied puzzle, abacaga, and

audiovisual suitable for beginner learners.

We do not yet know whether the model of language learning that support the strengthening of rationality and soft skills is effective or less effective because the model is not yet implemented. However, researchers believe that this model is effective. This model will soon be implemented; expected to be implemented in 2016, with a provision based on the textbook. The book is now being prepared by the researcher.

5. CONCLUSION Indonesian learning model based on the rationality and soft skills reinforcement is intended to improve the competence and confidence slow learner so that they can participate in the study successfully. Models compiled with the involvement of psychologists, linguists, and experts in education. In addition, the model also prepared by taking into account the views of experts that have been written in books and articles in journals. The Model 2016 is designed to be applied in Politeknik Negeri Jakarta. The model will be implemented with the support of the textbook and is believed to be able to increase the ability of Indonesian students.

6. BIBLIOGRAPHY [1] Greenlee Psychological and Support

System. (2014). “Preschool Classroom Interventions Series: Slow Learner of Difficulty with Information Processing”. USA.

[2] Hasyim, Nur and Ade Sukma. (2013). “Model Pendidikan Inklusi Berbasis potensi”

[3] Hasyim, Nur and Darul Nurjanah. ”Pelaksanaan Pendidikan Inklusi pada Politeknik Negeri Jakarta”. In Epigram, vol. 8, No. 2, Oktober 2011. Depok.

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[4] Keputusan Direktur Jenderal Pendidikan Tinggi, Depdiknas RI, Nomor 43/DIKTI/Kep/2006 tentang “Rambu-Rambu Pelaksanaan Mata Kuliah Pengembangan Kepribadian di Perguruan Ting

[5] Herlinda, Fatma. 2014. “Meningkatkan Kemampuan Membaca Kata Melalui Media Audio Visual bagi Anak Slow Learner”. Dalam E-Jupekhu, Volume 3, Nomor 3, September 2014, Halaman 53—63.

[6] Susanti, Nelfitri dkk. 2013. “Meningkatkan Kemampuan Membaca Permulaan Melalui Metode Abacaga bagi anak Lambat Belajar”. Dalam E-Jupekhu, Volume 2, Nomor 3, September 2013, Halaman 328—339.

[7] Yustika, Ririn dkk. 2013. “Meningkatkan Kemampuan Mengenal Kemampuan Mengenal Huruf Vokal Melalui Media Puzzle bagi Anak Slow Learner”. Dalam E-Jupekhu, Volume 2, Nomor 3, September 2013, Halaman 212—221.

[8] Mangunsong, Frieda (2009). Psikologi dan Pendidikan Anak Berkebutuhan Khusus. UI Depok: Lembaga Pengembangan Sarana Pengukuran dan Pendidikan Psikologi.

[9] Wiratno. 2013. “Pembelajaran Bahasa Berbasis Teks dan Jenis Teks”. Jakarta. Badan Pengembangan dan Pembinaan Bahasa.

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Family Background and Social Capital in The Entrepreneurial Process in Minang Ethnic

Primadona1, Emrizal2

Department of Business Administration, Padang State Polytechnic Unand Limau Manis Campus, Padang, West Sumatra, Indonesia

email: [email protected], [email protected]

Abstract

This article discusses the impact of entrepreneur family background toward business development of Minang ethnic society. The business development was observed from the increasing in turnover, increasing of worker and increasing in businesses number. This research is qualitative research. The researchers found that the entrepreneurs who are from entrepreneur family background have faster business development capabilities by having access or broader business network than entrepreneurs who do not come from entrepreneur family. This research was conducted in 2015 in Jakarta with 25 respondents of Minang ethnic entrepreneur. In this research is able to prove that in general Minang entrepreneurs become an entrepreneur is strongly influenced by family background who is also an entrepreneur. Key Words: entrepreneur, business network, qualitative, Minang ethnic 1. INTRODUCTION The research on entrepreneurship continues to evolve and not a few of the researchers try to conduct a research in the development of entrepreneurship on individual aspects especially on entrepreneur. The purpose of this paper is to explore the impact of entrepreneur family background toward business development that was observed from three aspects: increasing in turnover, increasing in labor and increasing in businesses number. It can be seen from a quick business network, quickly reach business opportunities and other factors. According to (Anderson and Miller, 2003), human in entrepreneurship and social capital that can be seen from the network formed by a relationship of entrepreneurs in the family, plays an important role in creating business because entrepreneurship is socio-economic process that refers to the social context in two different ways. First, entrepreneurs as individuals tend to be the product of the social environment because in social environment where the entrepreneurs

live, they are able to be an example for the surrounding areas and they influence the other family and so on. In entrepreneurship, interaction between the seller and the buyer or between who needs with who provide so that in this case occur economic process that is able to be done quickly because the network and social capital between them. In addition, the literature shows that family factors and position in the social environment is a key indicator of human and social capital in exploring these resources so that from this perspective are able to develop and provide our appreciation toward entrepreneurship as a process (Abercrombie et al., 1984). In this article the researchers use the respondents’ parents position to determine their social origin and how this affects their development of human and social capital and influence the entrepreneurial process.

The influence of family background in creating business and accelerate the development of business is used as a preliminary research to see the effect of entrepreneur family background to the progress of business. The

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researchers explored 25 ethnic Minang entrepreneurs by looking the beginning process becoming entrepreneurs and how to start the business at first to lead to the role or influence of the family comes from entrepreneur. The family background factor had an impact on both entrepreneurs in creating new businesses and in helping the development of business. The entrepreneurial process is seen as contextual and dependent on many influences (Gartner, 1988) but it is an individual dynamics (Solymossy, 1997; Anderson, 2000). Granovetter’s point of view (1985) believes that such behavior is limited by social factors which interpret as an independent misleading in the entrepreneurial process. In this research will occur the effects of family background in a long or a short time. Even though in the previous research the researchers have already proved that social capital gives great contribution in developing the business of Minang ethnic entrepreneurs which is seen of the role of intra-ethnic Minang in West Sumatra. The role of fellow ethnic entrepreneurs has brought development to the creation of new businesses and brings changes to social life and social capital among ethnic (Primadona, 2014)

2. THE FAMILY AS PROVIDER OF SOCIAL CAPITAL

Many researches have already proved that the presence of social relationship and interaction between intra-ethnics or entrepreneur can create new business (Aldrich, 1999). The research about the effect of family background of entrepreneur has been explored by looking how the influence of parents who work as entrepreneur affects the interest of entrepreneurship in offspring (Cooper

and Dunkleburg, 1987; Duchesneau and Gartner, 1988; Scherer et al, 1991; Davidson, 1995; Aldrich et al, 1997; Delmar and Gunnarsson, 2000). By looking the social network that is built, there is a strong relationship among entrepreneurs, especially among ethnic. Entrepreneurs, with the social network, are able to give crucial resources in building a business (Johannisson,1988; Larson, 1991). By social network the entrepreneurs combine the information from various resources to start a business. They start with ideas to test, and the knowledge and competence to run the business. However, they also need resources that complement each other to produce and deliver goods and services (Teece, 1987). Thus, there is interaction and mutual need in a social network that is able to create entrepreneurial skills.

While it is generally acknowledged that there is no clear pattern of cognitive orientation that can predict the success of entrepreneurship (Hatch and Zweig, 2000). Because of social networking, the research has found that initial socialization in the family can help to establish the capital resources to start a business in an effort to increase entrepreneurship in the future (David, 2000). Research also has contributed that the influence of heredity or an entrepreneurial family also carries an obstacle to the development of entrepreneurship if it is unable to provide benefits to users or network access in the family.

Looking at the concept of entrepreneurship, social capital is one of the capitals such as the financial capital (Coleman; 1988). The main different between social capital and the other form of capital is social capital are embedded in the relationship between individuals or

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groups. According to (Coleman,1998) social capital is not as financial and physical capital, it is not real, it is not like human resources, it is not individual behavior or their capability to help them to collect the money, find the technology, search the material, and to get a training, hire labor, and the form of the product to fit the needs of their markets. The useful resources are from somebody social network (Gabby&Leenders, 1999). Entrepreneurs are also related to the people and organizations they interact. This contact expands access to resources that support new entrepreneurs (Hansen, 1995). Social networks make available social capital to help newcomers to start a business (Aldrich, 1999). With this with social capital, resources between people are able to help them achieve their goals (Coleman,1988). Many form of relationships cause social capital. Social networking will not be lost if they can be used because it can be activated in accordance with the different needs (Granovetter, 1985; Burt, 1992). In this case, social relationships including social capital can be used in some way and this also applies in the context of entrepreneurship in the family. Recent studies have contributed that the investigation of the influence of family background on entrepreneurship tendency is less noticeable effect on the development of personality characteristics and more on its role in providing access to social and material resources that may either facilitate or hamper entrepreneurial activity (Harth, 1997).

New entrepreneurs mostly have family who are in the business circle (Greve & Salaff, 2002; Min, 1988; Wong, 1988; Zimmer & Aldrich, 1986). When they think, plan, and finally establish a company,

entrepreneurs ask their family and others in their network for many kind of help and support (Rosenblatt, et al., 1985). This is because entrepreneurs feel save and comfort by using family as their confidant so that not to cause suspicion and desire to move forward will be higher (Light, et al, 1999; Putnam, 1993; Wellman & frank, 2001). Besides the family's ability to set up social networks for both information and other access, individual organizations is also able to generate business relationships that can help to transform people into entrepreneurs.

3. METHODOLOGY This research was conducted in Jakarta with qualitative method. The sample of the research was 25 respondents of Minang ethnic. The data collection was conducted by interview (in-depth interview), check list, observation, and documentation study with qualitative data analysis method. All of the data obtained in this study qualitatively analyzed to determine the role of family background on the development of entrepreneurial ventures. After the data is obtained, it is analyzed through data reduction, data display and conclusion and verification.

4. ANALYSIS AND DISCUSSION Minang ethnic has been very famous with entrepreneurship. There are many successful entrepreneurs who are from Minang ethnic. It is highly influenced by the Minang culture that requires every youth to migrate and independent if it was the age of puberty/ baligh. This makes a lot of Minang people migrated. Minang people who migrate are usually influenced also by the conditions or the influence of other Minang people who have first migrated. These cultural influences brought Minang communities in their descendants live

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in entrepreneurship are scattered almost all of the area Indonesia.

Jakarta is the economic center of Indonesia and consists of various ethnic striving to improve the entrepreneurial capabilities such as ethnic Minang, ethnic Thionghoa, Bugis Batak and others so as to improve their economy in general. The first time the researchers did in getting respondent is the personal approach in order to be able to explore the respondent in accordance with the purpose of research. Our respondents are entrepreneurs who are at least 25 years old. The reason is aged 25 years and above will be able to see how the development of the business and also journey of their life as an entrepreneurs.

Besides personal approach, researchers tried to make observations to see how their everyday life is done by the entrepreneurs in conducting its activities both in family life and in the offspring. First, the researchers interviewed to find out how the entrepreneur is able to become an entrepreneur and how their history in starting a business to become an entrepreneur. In general, the respondents graduated from senior high school and only one person graduated from bachelor degree.

Twenty two respondents who were interviewed are from entrepreneur families. It means most of their families are entrepreneurs, but the rest are from various professions and still some of them from entrepreneur families. In general, the history becoming an entrepreneur is because of encouragement of family and also because all this time the entrepreneur has mingled with entrepreneurial activity then this has become initial interest in and makes these entrepreneurs also become entrepreneurs.

The phenomena above do not make these entrepreneurs become difficult to relate in doing their business because in their everyday lives, they are able to build relationships and social contacts with suppliers and also with consumers. In carrying out this life, businessman originally thought that as long as not to be an entrepreneur, he was training to test the intuition of business they have already had. Another interesting thing to researchers is the Minang ethnic customs that stands out is a sense of mutual caring and high social networks are built by entrepreneurs. The entrepreneurs tend to hire employees from families, relatives or fellow neighborhood because it can help the economic life of fellow ethnic Minang. In many entrepreneurs family mostly discuss about business rather than other topics. The obstacle in running a business is a business management issue that has not been fully implemented.

Business growth in entrepreneurs who come from family entrepreneurs tend to rise faster than entrepreneurs who are not from an entrepreneurs family. This difference shows that the entrepreneurs who are from entrepreneurs background easy to engage and interact with consumers or other people who have been familiar with the family of entrepreneurs so that proved that the business grows faster. These Entrepreneurs are able to develop their businesses quickly by rapid growth of turnover and number of workers. The example from one of the respondents told that in running the business he mostly use the brand from his family who are also entrepreneurs, so that it makes the business grows fast. In contrast, the entrepreneurs who are not from entrepreneur families still need time to find

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customers and make a good relationship with the customers or suppliers or vice versa. This condition makes different time in gaining the business. Besides, the influence of social capital that is built among families with the other entrepreneurs can make them have many networks, so that they are able to communicate and other social relationships easily if they have entrepreneurs family background.

Minang societies who live in Jakarta tend to live in a group. From the interview that was done by the researchers with 25 Minang ethnic respondents told that when they first come to Jakarta, it’s because of family or relatives is a businessman who had previously migrated to Jakarta. When they arrived in Jakarta, most of them learn from family how to run a business without having their own capital.

5. CONCLUSION There are many Minang ethnic societies live as entrepreneurs who spread throughout Indonesia and they mostly live in groups. In general, being an entrepreneurs is strongly influenced by family background who are also entrepreneurs. In this research is able to prove that in general Minang entrepreneurs become an entrepreneur is strongly influenced by family background who is also an entrepreneur.

6. BIBLIOGRAPHY [1] Anderson and Miller, 2003., Class

matters”: human and social capital in the entrepreneurial process. Journal of Socio-Economics 32 (2003) 17–36

[2] Abercrombie, N., Hill, S., Turner, B., 1984. The Penguin Dictionary of Sociology. Penguin, Harmondsworth.

[3] Aldrich, H., Zimmer, C., 1986. Entrepreneurship through social networks. In: Sexton, D., Smilor, R. (Eds.), The Art and Science of

Entrepreneurship. Ballinger, Bosion, MA.

[4] Aldrich, H., Renzulli, L., Laughton, N., 1999. Passing on Privilege: Resources Provided by Self-Employed Parents to Their Self-Employed Children. Paper presented at the American Sociological Association.

[5] Anderson, A.R., 2000. Paradox in the periphery: an entrepreneurial reconception. Entrepreneurship & Regional Development 12, 91–110.

[6] Burt, R., 1992. Structural Holes: The Social Structure of Competition. Harvard University Press, Cambridge, MA.

[7] Coleman, J.S., 1988. Social capital in the creation of human capital. American Journal of Sociology 94, S95–S120. Coleman, J.S., 1990. Foundations of Social Theory. Harvard University Press, Cambridge, MA.

[8] Cooper, A.C., Dunkleburg, W.C., 1987. Entrepreneurial research: old questions, new answers, and methodological issues. American Journal of Small Business 11 (3), 11–23.

[9] David Ssonper and Honiy Benson, 2000. the role social and human capital amony nascent entrepreneurs. Journal of business venturiny 18(2003): 301-331.

[10] Davidson, P., 1995. Determinants of Entrepreneurial Intentions. Paper presented at the Rent IX Conference, Piacenza, Italy.

[11] Delmar, F., Gunnarsson, J, 2000. How do Self-Employed Parents of Nascent Entrepreneurs Contribute? Paper presented at Babson Entrepreneurial Research Conference, Wellesley, MA.

[12] Gabbay, S. M and Zuckerman, E.W. (1998), “Social Capital and Opportunity in Corporate R&D: The Contingent Effect of Contact density on mobility expectations”, Social Science Research, Vol. 27, No. 2, pp. 189-217.

[13] Gartner, W.B., 1988. Who is an entrepreneur? Is the wrong question.

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American Journal of Small Business 12 (4),11–32.

[14] Granovetter, M., 1985. Economic action and social structure: the problem of embeddedness. American Journal of Sociology 91, 481–510.

[15] Greve, A. & Salaff, J.W. (2002) ‘Social networks and enterpreneurship,’ to be published inEntrepreneurship: Theory & Practice, (in press).

[16] Hansen, E.L. (1995) ‘Entrepreneurial network and new organization growth,’ Entrepreneurship: Theory & Practice, 19(4): 7-19

[17] Hart, M., Greene, P., Brush, C., 1997. Leveraging Resources: Building an Organization on an Entrepreneurial Resource Base. Babson Conference Paper.

[18] Hatch, J., Zweig, J., 2000. What is the stuff of an entrepreneur? Ivey Business Journal 65 (2), 68–75.

[19] Larson, A., 1992. Network dyads in entrepreneurial settings: a study of the governance of exchange relationships. Administrative Science Quarterly 37 (1), 76–105.

[20] Light, I.H., Bernard, R.B. & Kim, R. (1999) ‘Immigrant incorporation in the garment industry of Los Angeles,’ International Migration Review, 33(1): 5-25.

[21] Putnam, R.D. (1993) ‘The prosperous community: Social capital and public life,’ The American Prospect, 4(13).

[22] Solymossy, E., 1997. Push/Pull Motivation: Does it Matter in Venture Performance? Paper presented at the Sev- enteenth Babson Entrepreneurship Research Conference, Wellesley, MA.

[23] Tesser, A., 1988. Toward a self-evaluation maintenance model of social behaviour. In: Berkowitz (Ed.), Advances in Experimental Social Psychology, vol. 21. Academic Press, San Diego, pp. 181–227.

[24] Wellman, B. & Frank, K. (2001) ‘Network capital in a multi-level world: Getting support from personal communities,’ in N. Lin, R.S. Burt, & K. Cook, Social Capital: Theory and Research, Chicago: Aldine De Gruyter, 233-273.

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The Analysis of Mice (Meeting, Incentive, Conference and Exhibition) Potency: Case Study in Padang City West Sumatera

Indonesia

Rini Ekasari1, Sarmiadi2, Yudhytia Wimeina3

Lecturer at Business Administration Department, Polytechnic State of Padang Email : [email protected] , [email protected], [email protected]

Abstract

This research aims to analyze MICE (Meeting, Incentive, Conference, and Exhibition) potency in Padang city West Sumatera Indonesia. MICE industry is one of the tourism business that has become the trend in world’s tourism nowadays. The rapid development of MICE indusrty has been counted as the major tourism product in local area and in Indonesia in general. Stated by the government that Padang is one of MICE destinations cities in Indonesia, it started to held various MICE events in the scale of local, natioanal event international. However, up until now, there is no research which discusses about MICE potency in Padang city. This research uses qualitative methods and the data collects throughout interview toward some stakeholders in Padang city such as Head of Padang Tourism Board, hotel managers, tour operators, Head of Travel Agent Association of West Sumatera and Head of Hotel and Restaurant Association of West Sumatera. The result shows that Padang city has MICE potency to develop. They are in the form of accessibility, tourism destination, the availability of accomodation and venue facilites, security and comfort, support from local government and stake holders, support from local people and the development of number of tourist. Key Words: MICE, potency, tourism business 1. INTRODUCTION MICE (Meeting, Incentive, Convention, Exhibition) industry which is also known as convention tourism, currently has become one of the most potential for tourism world. According to International Congress & Convention Association (ICCA) data, Every year there are as many as 400,000 conference and exhibition held in the world with total revenue of US$280 million. MICE industry is predicted would bring economic benefits doubled for the country and the city that become the host organiser of the events held.

As one of MICE destination in the world, for meeting, Indonesia was in the tenth ranking among Asia Pacific and Middle East countries with total meeting held of 106 in 2013 ( MICE center data, 2014). It was proven by MICE activities held in several big cities in Indonesia. The prospect of MICE in the globalisation era is increasingly important because it

gives hope to the business enterprises in Indonesia which requires foreign exchange, employment opportunities, as well as new businesses and providing great opportunity to industries in Indonesia. Since 1980s MICE activities in Indonesia showed an increase of the number of participants with the avarage spending per day as much as $210 to every member of the convention. Compared with the tourists who deliberately come to travel to Indonesia, their spending was only $400 for 7-12 days. Thus, the expenditure of convention tourism whose participants also bring their spouse, children and even their friend impact to the bigger expenditure of the participants. (Pendit, 1999)

Based on the decision of the Indonesian government, there are 10 main cities that become MICE destination and 3 potential cities. The main cities are Medan, Padang/Bukittinggi, Batam, Jakarta,

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Bandung, Jogjakarta, Surabaya, Bali, Makasar and Manado, while the potential cities namely Palembang, Lombok, and Balikpapan (Wartas Export, 2018). According to West Sumatera central bureau of statistics, in 2012 the number of tourist who visit Padang city is 2,299,945 people that consist of 2,252,336 domestic tourist and 47,609 international tourist. This tourists visit increased by 4.2 percent when compared to the year of 2011 which number was only 1.870.403 that consist of 1,823.401 domestic tourist and 47.002 international tourist.As one of MICE destination in Indonesia, Padang has already held MICE activity either in national or international scale. The event of “Tour de Singkarak” which is schedulled every year involves several countries in the world. Other annual agendas is “Padang Fair” exhibition which is held in tandem with Padang city anniversary. In 2012, there was West Sumatera Corporate and Travel Mart event which was also held in Padang that bring 26 corporate buyer in national level and 20 seller from West Sumatera. In 2013, it was conducted Indonesia Tourism Mart and Expo (TIME).

2. THEORY 2.1 Tourism Potency According to Oxford dictionary, potency is the power of something to affect the mind or body. Pendit (1999), states that tourism potency is various resources which are found in a certain areas that could be developed become tourist attraction.

2.2 Tourism and Tourism business According to Indonesian law, number 10, 2009 , tourism is a travel activity done by someone or group of people by visiting a particular place for the purpose of recreation, personal development, or study the uniqueness

of tourist attraction visited temporarily. Hence, to ensure that tourism activity requires the support of facilities as well as s service provided by the community. Enterpreneurs, the cental government and local government, which in turn will create a tourism business. In Indonesian law, number 10, 2009 it is specified that tourism business is a business that providing goods and services for / or meeting the needs of tourist and tourism event. Indonesian law about tourism article 14 explained that tourism business covering tourist attraction; tourism area; tourism transportation service, tour and travel service, food and bavarage service, provoding accomodation; organising activities of entertainment and recreation; organising meeting, incentive, conference, and exhibition; tourism information service, tourism consultant service; tour guide service; organising water tourism; and spa.

The organising of meeting, incentive travel, conference and exhibition known as MICE is four activities in tourism which is a business that provides meeting service for a group of people, particularly stakeholders, scholars, government and private executives, to discuss about various problems dealing with common interest, including exhibiting business products.

2.3 MICE (Meeting, Incentive, Conference, Exhibition)

According to Kesrul (2004), MICE is a tourism activity that combine between leisure and business and usually involves a group of people together, the series of its activities are on the form of meetings, incentive, conforence and exhibition. While according to Pendit (1999), MICE is a convention tourism by limitation to the convention service, incentive travel, and exhibition which is a

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business with to give service to a meeting of a group of people ( e.g. statesman, businessman, scholars) to discuss the problems that relates to the common interest. Yoeti (2000), states that MICE is a series of activities, where the businessman or professionals gather in a certain place conditioned by a problem, discussion or similar common interest.

Tourism industry is devided into leisure tourism and business tourism. However, both require similar infrastructure in terms of accomodation, transportation and communication, entertainment, information services, and so on (Rogers, 2003 cited in Cooper et al, 2008). The main differences between leisure and business tourist lie in the type of the service bought and the level of transport and accomodation (Lickorish and Jenkins, 1999). Business tourism needs special facilities and services such as conference center, and meeting rooms (Swarbrooke dan Horner, 2007). In addition, the chief activity of conventions and meetings is business (McCabe et al, 2000), but, after working day, a business tourist can become a leisure tourist by visiting tourism destination in that city (Davidson, cited in Rogers, 1998). Besides, business tourism is also linked to leisure tourism because in some conferences, social programs of leisure activities are including inside it and it is also the case when the business tourist’s wife accompanies him as a leisure tourist ( Swarbrooke and Horner, 2001).

The term of business tourism, MICE and convention tour are used interchangeably. Davidson (2001), describes business tourism as being composed of people travelling for purposes which are related to their work. While to Swarbrooke and

Horner (2001) business tourism is a board term which refers to all the experience of the business traveller and using the term “tourism” it refers to people who stay at least one night away from home, while business travel referes to day trips for business reasons. So, it can be concluded that MICE is a service in tourism business which activities cover meetings, incentive travel, conference and exhibition.

2.4 The Typology of MICE Tourism Below the definition of MICE based on its acronym :

Meeting

The International Meetings Industry Glossary as cited in Rogers (2003) defines meeting as follow : “Meeting is a general term indicating the coming together of a number of people in one place to confer or carry out a particular activitywhich means. Can be on an ad hoc basis or according to a set pattern”

According to Kesrul (2004:8) meeting is a trial organized by a group of people who are members of associations, societies or associations with the aim of developing professionalism, improvement of human resources, working together between members and administrators, disseminate the latest information, publications, public relations.

Incentive Travel

According to Pendit (1999) incentive travel is a trip activity organized by a company for its employees and business partners in exchange for recognition of their achievements in relation to the organization of the convention which discussed the development activities of the company. Meanwhile, The Society of Incentive Travel Executive (SITE) defines an incentive travel as :

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“[...] a global management tool that uses an exceptional travel experience to motivate and/or recognize participants for increased levels of performance in support of the organisational goals”(SITE, 1998 cited in Rogers, 2003:52).

During the trip, some additional elements can be includedsuch as an educational element, a conference-type session and team-building activities (Campiranon dan Arcodia, 2007). They visit places of interest, usually work-related, or attend prestigious sport events and so forth so as to make the trip memorable (Davidson, 1992).

Conference

The Convention Liaison Committe and the Joint Industry Council “International Meetings Industry Glossary” (1993) define a conference as an event used by any organisation to meet and exchange views, convey message, open debate or give publicity to some area of opinion on a specific issue” (International Meetings Industry Glossary, 1993, cited in Rogers, 2003:17). In addition, these participatory meetings are designed for discussion, fact finding, problem solving and consultation (ICCA, 2009 online).

Exhibition

According to Pendit, 1999, the exhibition is an information dissemination and promotional activity that has to do with the convention or which is related to tourism. Davidson dan Cope (2003), define exhibitions as : “Events to which businesses send sales staff in order to display their products to potential customers, who attend in order to buy and/or receive expert information about the goods being exhibited, usually straight from the manufacturers”. Thus, an exhibition is amied at informing visitors about products and services which are available within an industry. Fenich (2005) explained that usually exhibitions tend to be large events, focused on business to business relationship (B2B).

2.5 Site Selection Factors for MICE destination

Based on a review of various studies which have been carried out by Crouch and Ritchie (1998) in Crouch and Louviere (2004) there are several categories of factors of MICE site selection that are important in determining the readiness of facilities and infrastructure that can support the implementation of the MICE at a destination. These factors are described in the table below.

Table 1. Factors of MICE

Category Dimension 1. Accessibility - Cost : the monetary expense of transportation and access

- Time : the duration/distance of travel involved and the opportunity cost of that time

- Frequency : the frequency of connections to the site - Convenience : the schedulling convenience of the connections - Barriers : the extent of any travel formalities that inhibit travel

such as visas, customs, etc 2. Local Support - Local chapter : the extent of assisteance and backing offeres by

the local chapter of the association - Convention center : the extent of planning, logistical and

promotional support offered - Subsidies : the extent to which the destination offers to defray

costs through rebates and subsidies. 3.Extra–conference - Entertainment : restaurants, bars, theatres, nightclubs, etc

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opportunities - Shopping : malls, major department stores, low proce, etc. - Sightseeing : architecture, museums, monuments, attractions,

parks, historical sites, local tours, etc - Recreation : sports and activities, either as spectators or

participant - Professional opportunities : visiting local clients, negitiations,

business deals, selling, making contracts, etc 4. Accomodation

Facilities - Capacity : the number of rooms available and whether more

than a single hotel required. - Cost : the cost of suitable accomodation at the site - Service :the perception of the standards of service - Security : the extend to which the hotels provide a safe and

secure environment - Availability : are the facilities available?

5. Meeting facilities - Capacity : ability of site to provide suitable sized facilities - Layout : suitability of the facility layout and floor plan - Cost : the cost of meeting space required - Ambience : the ability of the facility to create an appropriate

athmosphere and environment - Service : the perception of the standards of service - Security : the extent to which the facility provides a safe and

secure meeting space - Availability : are the facilities available when required ?

6. Information - Experience : has the site performed satisfactorily in the past? - Reputation : what is the reputation of the destination among other meeting

planner? - Marketing : the effectiveness of the destination’s marketing activities

7. Site Environment - Climate : the desirability of the destination’s climate - Setting : the attractiveness of the destination’s surroundings - Infrasctructure : the suitability and standard of local infrastructure - Hospitality : the extent to which the host organisations and community excel in

welcoming visitors 8. Other Criteria - Risk : the possibility of strikes, natural disasters, botcotts, and other possible

adverse events - Profitability : the extent to which the site would produce a profit (loss) for the

convention - Association Promotion : would the site add credibility to the association and

build membership? - Novelty : the extent to which the destination represents a novel location for the

assocoiation’s next convention

Source: Crouch & Ritchie: 1998 cited in Crouch & Louviere: 2004

3. METHODOLOGY This reseach is conducted in Padang city West Sumatera, Indonesia. Type of the research is desriptive qualitative. To obtain the primary data, the population and sample used in this research are Tourism Board of Padang City, West Sumatera Travel Agent Association, West Sumatera Hotel and Restaurant Association, several owners of Tour Oparators in Padang city and some four star hotel managers. To support the primary data, secondary data gained from the center of Statistics Beureu of West Sumatera and some books and documents that related to the topic of the research.

To collect the data needed in this research, the methods used are through observation, interview and also literature study. Then, the data obtained is analyzed by using descriptive qualitative technic based on the qualified description in the form of description.

4. ANALYSIS AND DISCUSSION This research revealed that Padang at present has potency to develop MICE industry. According to some respondents in this research, there are some potencies to be developed by Padang as one of MICE destinations in Indonesia. The forms of potencies are as follows :

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Accessibility

Domestic flight services in Padang up to now a day could be categorized within good level. This is proven by domestic flight frequencies, which in 2013 reached 1.260.850 arrival in Minangkabau International Airport, with the highest number of 139.216 domestic arrivals were in August 2013,

Compared to domestic flight frequencies, international flight frequency in Padang is still limited. It is occurred to only Air Asia as the sole airline that provides international flight services to and from Padang. Meanwhile, Garuda Indonesia, state owned airline company, only serves pilgrimage flight from Padang. To use services offers by other airline companies, it has to be transited in Soekarno – Hatta International Airport in Banten. This condition becomes a challenge for Padang to host an International scale of MICE events.

Tourism Destination

Padang has numerous variation of destination for tourism, natural tourism, historical and archeological tourism, also marine tourism. According to statistical data in 2012, there are 169 tourism destinations within Padang City, 25 natural destinations, 36 marine destinations, 73 historical destinations, 2 cultural destinations, 24 shopping destinations, and 9 culinary destinations. Recently, marine tourism destinations are the favorite attraction among all others, with 17 small islands as such Pasumpahan, Pamutusan, Sikuai, and Kasiak island. Most of tourism destination in Padang were managed by Padang Tourism Board, though there are also numbers of destinations that managed by local people.

From above data description it is obvious that natural tourism destinations are dominant in Padang. This natural tourism destination domination may be a very great bargaining point for Padang to those who will hold a MICE event. All respondents in this research also support this by stating that tourism destinations in Padang are the major factors to be developed as the form of potency to held MICE activity in Padang.

The availability of Accomodation facilities and Venue

The availability of accomodation facilities such as hotels and venues become an important potency as well. According to statistics in 2013, there were 65 hotels in Padang with the classification of a five star hotel, 6 four- star hotels, 9 three-star hotels and the remaining consist of two star hotels, one star hotels and non star hotels. The growth of hotel in Padang increased rapidly after the earthquake in 2009. Statistical data in 2013 mentioned that the number of star hotel rooms in Padang are 1,369 rooms with the total number of foreign guests as many as 15, 609 and as many as 207,032 of domestic guests. In common MICE event, hotels in Padang that suitable for hosting a MICE event, based on criteria, term and condition of MICE, are those with 3, 4, and 5 stars classification. Room facilities in Padang able to accommodate 2500 people per event, although Padang up till today only have one convention centre to accommodate a MICE event in Padang. Despite of current situation, Padang is ready to host a MICE event. The variation of accommodations and venues in Padang, makes Padang able to offer competitive price.

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Security and Convenience

Security, and convenience also play important role in a MICE event. For these aspects, Padang has a very strong potency as a MICE event host in Indonesia. Padang is a capital of a province in western coast of Indonesia. Padang is a very safe and sound destination for tourists, proven by low number of criminality compare to other cities in Sumatera, homogeneousness citizenship, and almost never endured chaotic situation. Based on explanation from head of Indonesian Travel Agent Association (ASITA) West Sumatra Region, MICE tourist in Padang will easily experience conveniences while they were in Padang due to several factors as environment, local culture and norm, safety and security, low traffic jam rate, best culinary, and variation of tourism destinations which easily reach post MICE activities.

As mentioned earlier, that post 2009 earthquake, the hotel industry in Padang was rapidly developed, also proved although Padang was severely damaged by the earthquake did not decrease investor enthusiasm in establishing hotel and other tourism facilities. After earthquake in 2009 building constructions, especially hotel, in Padang were constructed better and stronger, accustoming geographic condition.

Local Government and stakeholder support

Besides potencies describing earlier, support from stakeholder of Padang, especially government and tourism executants plays a significant contribution for Padang to develop other potencies as MICE tourism destination. Somehow, it is an unfortunate that Padang still not has a special division to manage MICE

until today, though it is not a barrier for Padang government to support the development of MICE potencies in Padang. The real form of government supports are as the following;

a. Out of 10 government superior programs is to revitalize Padang tourism attraction toward better attraction for family and convention.

b. Directing several events to be hosted in Padang

c. Serves all events in Padang maximally.

d. Special budgeting from local government of Padang trough Department of Culture and Tourism to actively involve in MICE events.

Community support

Majority of Padang citizens are Muslim and they have motto “Adat basandi syara’, sayara’ basandi kitabullah”. This motto means Padang citizens as part of native Minang ethnic lives their daily life based on culture norms. Culture norm itself based on Islamic religion which referring on Al Qur’an. Therefore, Padang citizens are very strict to religious teaches and norms.

Along with local government encouragement of tourism sector in Padang, community support contributes significant values for Padang tourism development especially MICE tourism. Therefore, to ensure Padang citizen willingness in supporting the tourism development, trough department of cultural and tourism, local government of Padang enroll a socialization program “Sadar Wisata”. This program expected to prepare Padang citizens to be ready for tourists visit and actively participating on the development of tourism sector of Padang. Tourism development in Padang will also bring lots of

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opportunities in economic sectors that will lead to increment of community welfares.

Number of visitors development

Based on statistic data, in 2012 there were 3.104.926 tourist visited Padang, 2.965.807 were domestic, while the other 139.119 were international tourists. This number were increased compare to the previous year with only 2.299.945 tourists visit, composed of 2.252.336 domestic and 47.609 international tourists. The data showed that there were significant increment of international tourists visit to Padang in 2013, this increment due to international events which annually held in Padang, those events are Tour de Singkarak and Dragon Boat Festival, and others international events.

Referring to statistics data provides by Central Bureau of Statistic (BPS), number of tourists visit to Padang were increased since 2009 to 2013. According to Department of Cultural and Tourism of Padang, tourism is a leading sector in Padang so that every years Padang government promotes tourism potencies of Padang both nationwide and internationally trough expos and exhibitions.

Based on the data from several respondents, Padang faces some barries to develop MICE potency. They are :

a. Licenced human resources to organize MICE activity

Currently the city of Padang actually ready with competent human resources to organize MICE activities. However, until now, there has not been specifically licensed human resources of competence MICE

b. The absence of a special organization to manage activities

in a professional MICE. MICE activities that have been held in the city of Padang to date only managed by a travel agent or event organizer centers located in other cities. Padang city has not had an organization that manages a professional MICE activities such as Professional Convention Organizer (PCO) or Event Organizer (EO).

5. CONCLUSION 5.1 CONCLUSIONS After analyzing all data that has been collected, it can be concluded that Padang has good potencies to be developed as one of MICE destinations in Indonesia. From 4 activities of MICE, exhibition is the least activity that is held in Padang. Forms of potencies that can be developed in Padang based MICE destination selection criteria are:

a. Accessibility b. Sightseeing c. c.The availability of

accommodation facilities and venues

d. Security and convenience e. Support local government and

stakeholders f. Community support g. The number of visitors

5.2 SUGGESTIONS By recognizing the potencies of Padang and the barriers that exist, it is important for Padang government to promote the awareness of Padang city tourism stakeholders, especially Padang city tourism practitioners through the department of culture and tourism to maximize the potential and to minimize the barriers. Forms of cooperation among Indonesian Travel Agent Association (ASITA) and Indonesian Hotel and Restaurant Association (PHRI), department of culture and tourism city of Padang may establish the initial PCO or EO

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as a stimulus to generate interest in other tourism practitioners to form EO or PCO. Besides, Tourism Board of Padang can also invite the scholars in tourism field, such as tour and travel business program scholars to conduct certification activities in the field of MICE.

6. BIBLIOGRAPHY [1] Crouch, G and Louviere, J. 2004.

Convention Site Selection: Determinants of Destinations Choice in the Australian Domestic Conventions Sector. Australia. CRC for Sustainable Tourism www.crctourism.com.au/wms/upload/resources/bookshop/crouch330111_conventionsites.pdf

[2] Davidson, R., 2001. Distribution channel analysis for business travel. In: Buhalis, D. and Laws, E., eds. Tourism distribution channels: practices, issues and transformations. London

[3] Ekasari, Rini. 2014 Kajian Potensi Kota Padang sebagai salah satu Destinasi Wisata MICE (Meeting, Incentive, Convention, Exhibition) di Indonesia. Polibisnis Jurnal Ekonomi dan Bisnis Vol 6 No. 2 Oktober 2014, Padang

[4] Fenich, G.G. (1992), Convention Centre Development: Pros, Cons and Unanswered Questions, International Journal of Hospitality Management, vol 11, pp. 183-196.

[5] Kesrul, M. 2004. Meeting, Incentive Trip, Conference, Exhibition. Graha Ilmu

[6] McCabe, V., Poole, B., Weeks, P. and Leiper, N., 2000. The Business and Management of Conventions. Brisbane: Wiley Australia

[7] Muljadi. AJ. 2009. Kepariwisataan dan Perjalanan. Jakarta: Raja Grafindo Persada

[8] Pendit, Nyoman.S. 1999. Wisata Konvensi. Gramedia Pustaka Utama. Jakarta

[9] Peraturan Menteri Kebudayan dan pariwisata No.PM.85/HK.501/MKP/2010 Bab 1 Pasal 1

[10] Pitana, I Gede and I Ketut Surya Diarta. 2009. Pengantar Ilmu Pariwisata. Yogyakarta: Andi

[11] Rogers, T., 2003. Conferences and Conventions – a Global Industry. Oxford: Butterworth-Heinemann.

[12] Swarbrooke, J. and Horner, S., 2001. Business Travel and Tourism. Oxford: Butterworth Heinemann.

[13] Undang – undang Kepariwisataan: UU RI. No. 10/ 2009.

[14] Wardiyanto. 2006. Metode Penelitian Pariwisata. Yogyakarta: Andi

[15] Yoeti,Oka. 2000. Manajemen Wisata Konvensi. PT Perca. Jakarta

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Identification of Special Interest Tourism in South Solok Regency West Sumatera

Sarmiadi

Lecturer of Bussinee Administration Departement, Padang State Polytechnic Email : [email protected], www.polinpdg.ac.id

Abstract

South Solok, is a regency located about 158 km from Padang, has the beauty and uniqueness that,s still not fully polished as wealth and natural beauty in Minang. South Solok residing on cluster of hills this sequence has a nature that is still very cool, beautiful stretch of the hillsides with variegated plants tropical forests and the rivers in between hills that will be the origin of the river rod days boils down to Jambi starting from Upper Lake in Solok Regency. Under these conditions South Solok regency has the potential to be expanded special interest tourism. Special Interest Tourism is a form of activity with individual travelers, groups or small groups that aim to learn and seeks to gain experience on a matter in the areas visited (Fandeli, 2002: 107) . This research uses primary data in the form of interviews with the stakeholders and observations to the attractions, the secondary data derived from literatur support and data processing using descriptive methods. Based on the data collected and use 4 key variables namely tourist attraction, accessibility, means of support and supplementary facilities, attractions hotwaterboom have a greater potential to be developed in South Solok beside another potential object. Keyword: tourism, special interest, hot water boom, tower house 1. INTRODUCTION South Solok regency is a region resulted from West Sumatra province expansion. South solok has natural beauties since it located by the truss of hills commonly called Bukit Barisan. This geographic location benefited South Solok with cool breeze, variety of tropical plants, the magnificence hill slope, and rivers among the hills. Besides the natural beauties, South Solok also owned cultural richness proven with two cultural areas which are Alam Surambi Sungai Pagu, and Rantau Duo Baleh Koto. Alam Surambi Sungai Pagu is a cultural area which is not part of Minangkabau nature shoreline (Rantau Alam Minangkabau), centered in Pasir Talang, meanwhile Rantau Duo Baleh Koto is part of Minangkabau nature shoreline (Rantau Alam Minangkabau) centered in Lubuak Gadang.

With both of those potencies, natural beauties and cultural heritages, it is then being expected that tourism

sector will be a superior sector in bolstering South Solok economics. Tourism is a phenomenon occurred due to human activities of travelling. The travelling that categorized as tourism activities are those travelling in purpose of fulfilling curiosity, recreation, and education (Kodhyat, 1996: 1). Tourist visits, both domestic and international, will shares an enormous multiplier effect for the region and community within the tourism destinations. The tourists’ visits will trigger the establishment of hotels, restaurants, transportation modes, and also souvenirs industry which helped in opening new employment opportunity, and led to national income.

As a product, tourism development corresponds to the needs of consumers, so that varieties of tourism were developed. Those varieties as such, mass tourism like picnic which focusing on pleasure and special interest tourism which focusing on specific activities. Special

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Interest Tourism is a tourism activity for an individual, group or small contingent whom travels in purpose to gain knowledge and experiences pertaining the area that being visited (Fandeli, 2002:107). Special interest tourism also known as an active travelling which resulted on knew experiences, social tourism, education tourism, etcetera.

According to Fandeli, 2002, the focus of special interest tourism may form as the following;

1. Cultural aspect, such dance, music, traditional art, handicrafts, architecture, community tradition norm and pattern, specific economical activities, archaeology and history.

2. Natural aspect, such flora and fauna diversity, geological phenomenon, national park exotics, forestry, rivers, waterfall, beach, ocean, and other ecosystems object.

There are criteria that can be use as guidance in forming special interest tourism; those are as the following;

1. Learning, tourism activities which leads on educational purposes.

2. Rewarding, tourism activities that inserted the element of recognition or admiring beauty or uniqueness of an attraction which then resulting on appreciation.

3. Enriching, tourism activities which shares opportunities for community to increase their knowledge.

4. Adventuring, tourism activities that being designed for wandering (Fandeli, 1992:110).

5. Rewarding, special interest tourism also comprising experience enrichment for tourist

since this kind of tourism providing new experiences for tourists.

South Solok regency has various potencies for special interest tourism development, since there is numbers of attractions as such, Nagari 1000 Rumah Gadang, rivers along the hills which suite for natural tourism activities, tea plantation of Mitra Kerinci, located right on the base of Kerinci Mountain, Mount Kerinci itself which is the highest mount in Sumatera, and also Timbulun and Air Malanca waterfalls.

South Solok regency also owned cultural and historical tourism attractions which are the site of Emergency Government of Republic Indonesia (PDRI) at Bidar Alam, 1000 traditional houses in Sungai Pagu and Koto parik Gadang district, and long traditional house in Nagari Abai by Sangir Batang Hari district. Moreover, there are cultural sites that have not yet being listed but have potencies to be developed in near future. Especially for the natural attractions, South Solok has lots of destinations that need to be managed and maintain like Bontak Lake near Kerinci Mountain, hot water sources such as Air Panas Sapan in Sungai Pangkuo, Sapan Maluluang in Pinang Awan Muaro Labuah. In addition there are also caves or natives called it as Ngalau in some places, rivers for rafting sport like Sungai Batang Sangir, Sungai Batang Bangko, and sceneries by the waterfalls. (http://wisatasolsel.wordpress.com/2012/01/15/mutiara-terpendam-di-solok-selatan/).

With those potencies of natural resources, South Solok regency is very suitable to be developed to become a special interest tourism destination. Somehow, those natural resources also need to be clustered

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into specific group within special interest tourism, so there will be an icon from those attractions as Sout Solok icon.

2. METHODOLOGY This research is conducted in several tourism destinations in South Solok regency from May 12 to September 15, 2015. The data used in this research are primary and secondary data, in which, the primary data were collected from interviews with South Solok regency tourism stakeholders, like community and community leader by the tourism attraction, local government, and tourist that visited the attraction. Meanwhile, secondary data were collected from literatures of tourism in South Solok regency.

The data then being analyzed by using interactive model that consist of three stages which linearly processed, data reduction, data presentment, and conclusion making or verification (Miles, 1992;16). The data presentment was conducted trough scoring analysis with four variables, tourism attraction attractiveness, accessibility, main tourism attraction facilities, and supporting facilities in tourism attraction. The score grading is used to differentiate the impact each valuation criteria of a research variables, while the weight of grades was used for differ each variable impacts (Dewi, 2004:24-25). The highest score shows that each criterion is potential supporting factor to be developed within the tourism destinations, while the lowest grade criteria is the obstruction factor.

3. ANALYSIS AND DISCUSSION 3.1 South Solok Tourism Potencies According to South Solok regency development department (BAPPEDA) in 2014, South Solok as regency has a very big potencies in special interest tourism in the following areas;

1. Cultular Tourism Attractions

Cultural tourism is linked to history and traditional values that a community had developed. Based on South Solok Department of Culture and Tourism, there are 120 cultural tourism objects lies within several districts and villages. Those cultural tourism objects consist of custom house of Minang ethnic called Rumah Gadang, art activities, and cultural ceremonials or other activities. The main difference lies in custom house of Minang, Rumah Gadang, in South Solok Regency, the famous destinations in South Solok for its Rumah Gadang is 1000 Rumah Gadang area in Sungai Pagu district, Rumah Gadang Durian Taruang, Rumah Gadang in Sangir Jujuan, Rumah Gadang with 21 rooms in Abai villages of Sangir batang Hari district. Besides 1000 Rumah gadang attraction, South Solok regency also have other Rumah Gadang attraction like Ustano. Ustano is a palace of ancient kings and there are some ustano in South Solok, such as, Ustano Rajo in Balun, Muaro Labuah, Ustano Daulat, Ustano Rajo batuah in Panai. For cultural and historical, South Solok also owned historical building in Bidar Alam village of Sangir Jujuan district. The building used to be cabinet assembly during the emergency government (PDRI) era in 1949.

2. Objek Wisata Alam

Base on its geographical topography, South Solok is the passage of 18 river streams, 5 rivers in Sangir district, Batang Timbulun, Batang Pelangai, Batang Sangir, Batang Kapur, and Batang Liki, 3 rivers in Sungai Pagu district, and 1o Rivers in other districts. Batang Hari in Lubuak Ulang Aling, Sangir Batang Hari district, and Batang Suliti, Batang Pagu, and Batang Bangke, which all

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located in Koto Parik Gadang Diateh district.

With these natural resources, the following special interest tourisms is very possible to be developed in South Solok regency;

a. Rafting

There are areas for rafting in several rivers with hard streams like Batang Sangir, and Batang Bangko. Rafting activities is also doable in Batang Liki with its suitable topography for rafting, hard stream and big rocks. Moreover, Batang Sangir is well known for its challenging stream.

b. Waterfalls

The other natural tourism attraction of South Solok is waterfalls as follow;

Timbulun Koto Birah Waterfall

Located in Koto Baru village Sungai Pagu district, the height of this waterfall is 20 meters with 7 layers. The beauty of this waterfall is ofcourse non-stop fallen water that creates rumbling sounds and the tinge of dew. This waterfall is still needs alot of development.

Timbulun South Solok Waterfall

As part of batang Liki river stream, this waterfall is heighted for 15 meters. Located in Muara Labuah highway to Padang Aro. From Padang, the capital of West Sumatra, this waterfall located 161 kilometers away, with 3 to 4 hours drive.

Uli Suliti Waterfall

With 40 meters of height, this waterfall is located at the border of South Solok and Solok Regencies. Uli Suliti is the highest waterfall in South Solok regency. To reach this waterfall it takes 5 kilometers walks from the

border of South Solok and Solok regencies.

Tangsi Ampek Waterfall

This waterfall offers its own uniqueness among other waterfalls. Besides the beauty of the surrounding scenery, Tangsi Ampek waterfall also has a pond with appropriate depth for visitors to swim. In addition, apart from it steady stream, to reach this waterfall which located 8 kilometres away from the capital of South Solok regency, Padang Aro, visitors will pass 3 kilometres long tea plantation owned by PT Mitra Kerinci with Kerinci Mountain as its background. The cool breeze and green scenery of tea plantation will give relaxation for tourists and calm sensation during the trip.

c. Ngalau Lubuak Malako

Ngalau Lubuak Malako is a natural attraction in form of a cave. Its located 25 kilometers from Padang Aro, the capital of South Solok regency.

d. Hot Waterboom Sapan Maluluang

This tourism attraction is the largest hot water source in South Solok. It has 65°C temperature, and located in Jorong Ampalu Nagari Alam Pauah Duo, Sungai Pagu district.

This research is focusing on 3 tourism objects in South Solok based on tourism object attractiveness criteria, accessibility, main and supporting facilities of the tourism object. From the data processed, it is resulted into the following of comparison of special interest tourism in South Solok regency;

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Table 1 Observation Recapitulation

No Criteria 1000 Rumah GadangHot Water

Boom Tansi Ampek

Waterfall 1 Attractiveness 154 156 92 2 Accessibility 54 63 45 3 Main Facilities 26 26 8

4 Supporting Facilities

5 3 3

Total 239 248 148 Potensial Middle Middle Low

Source: Data processed 2015 Based on the data shown on the table, it is known that hot water boom and 1000 Rumah Gadang are having potencies to be developed in the future.

4. CONCLUSION South Solok regency has a very great potencies to be developed as special interest tourism that correlated with nature and cultural. Therefore, to attract tourist to visit South Solok, the access and facilities in those tourism attractions have to be improved.

6. BIBLIOGRAPHY [1] Bappeda Solok Selatan, 2014, Profil

Kabupaten Solok Selatan [2] Dewi, Ira,2004, Analisis Potensi

Objek Wisata di Kabupaten Boyolali, Surakarta, FKIP,UNS

[3] Fandeli, C. dan Mukhlison. 2000. Pengusahaan Ekowisata. UGM. Yogyakarta

[4] Kodhyat H, 1996. Sejarah Pariwisata dan Perkembangannya di Indonesia . Grasindo. Jakarta.

[5] Pendit, Nyoman S, 1999. Ilmu Pariwisata Sebuah Pengantar Perdana . PT. Pradnya Paramita. Jakarta.

[6] Risman, 2013, Pariwisata Kabupatn Solok Selatan, Tugas Kuliah Sistem Informasi, Jurusan Ilmu Sosial Politik, Universitas Negeri Padang

[7] Spillane, James, J, 1994. Pariwisata Indonesia : Siasat Ekonomi dan Rekayasa Kebudayaan . Kanisius. Yogyakarta.

[8] Sutopo, HB, 2002. Metode Penelitian Kualitatif : Dasar Teori

dan Penerapannya dalam Penelitian . UNS Press. Surakarta.

[9] Yoeti, Oka A, 1990. Pengantar Ilmu Pariwisata . Angkasa. Bandung.

[10] ----------, 1996. Pemasaran Pariwisata . Angkasa. Bandung.

[11] ------------, 1997. Perencanaan dan Pengembangan Pariwisata . PT. Pradnya Paramita. Jakarta.

[12] Yufrizal, 2012, Mengembangkan Objek Wisata Solok Selatan Dengan Pengelolaan Public-Private Partnership, Artikel

Journal/ Website/Internet

[13] http://wisatasolsel.wordpress.com/2012/01/15/mutiara-terpendam-di-solok- selatan/) diakses pada tanggal 27 April 2014

[14] http://endah-parwis-fisip.web.unair.ac.id diakses pada tanggal 25 April 2014 http://tourismnews.co.id diakses pada tanggal 25 April 2014

[15] Adams B, Alden J, and Harris N (2006) Regional development and spatial planning in an enlarged European Union. Aldershot: Ashgate.

[16] Ang L, and Taylor B (2005) Managing customer profitability using portfolio matrices. Journal of Database Marketing and Customer Strategy Management 12: 298-304.

[17] allinger A, and Clark M (2001) Nutrition, appetite control and disease. In: Payne-James, J et al. [eds.] Artificial nutrition support in clinical practice. 2nd ed. London: Greenwich Medical, pp. 225-239.

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Employment Growth of Micro, Small and Middle Business Sector (UMKM) In Reducing the Open Unemployment Rate in Indonesia

Sri Wahyuni

Economic Development Department, Economics faculty, Almuslim University Jl. Almuslim, Matangglumpangdua, Bireuen-Aceh

[email protected]

Abstract

One of the important issues in macroeconomics is unemployment. The government's policy in dealing with unemployment is to create and improve micro, small and middle business sector (UMKM). This study aims to explain the role of the UMKM program through the growth of UMKM employment rate in reducing the open unemployment rate. To determine the influence of the growth of UMKM employment rate in reducing the open unemployment rate then use ordinary least square analysis. Data used in the period 1998-2013. Statistical analysis showed that Ho is accepted and Ha rejected. It is only 0.5% contribution growth of UMKM employment rate variable on open unemployment rate variable. It shows that during the period of 16 years UMKM program have not successes to reduce the open unemployment rate. Hence need of effective government policy. Key Words: the growth of UMKM employment rate, the open unemployment rate, government policy. 1. INTRODUCTION One of the most important issues in the macro economy is unemployment. Indonesia as a developing country is always faced with the problem of unemployment. Open unemployment can be stated is the inability of the labor force to obtain appropriate job that they need and want. Rising unemployment rate does not escape from the increasing population and a variety of complex problems faced by Indonesia. Working population amount is limited compared with population that is not working. Based on Bank Indonesia data (2013), there are 118.19 million labor force, working 110 million and 7:39 million unemployed. This coupled with population instead of the labor force and that are no longer productive. The monetary crisis and political issues is also one of the causes of the growing opportunities open unemployment rate.

In 1997-1998 the monetary history of bitter experienced by Indonesia, Indonesia experienced a monetary crisis so as to bring impact to economic growth in a recession. The

crisis that started from currency crises of bath and like a snowball effect bringing the impact of the monetary crisis so as to bring impact to the business world. Many companies make loans in dollars. Many companies took the decision for job separation, so that the open unemployment rate increased sharply.

In 2008, the global financial crisis due to the financial difficulties experienced by financial institutions in the US, Europe and Japan that triggered the collapse of US investment bank Lehman brothers. The financial crisis affected the Indonesian economy as reflected in the volatility in the capital market and money market. This condition is in line with the performance of the balance of payments showed a decline since the third quarter of 2008, as reflected in the increase in the current account deficit and continued with a deficit balance of capital and financial transactions. An increase in the current account deficit was driven mainly by the drop in export performance in line with the global economic contraction is accompanied

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by declining prices of various commodities. Meanwhile, the global financial liquidity problems and increased risk aversion of foreign investors triggered the reallocation to more secure assets (flight to quality) also decrease the capital and financial performance. Following depressed export performance significantly, the business began to get swept and waves of layoffs taking place, particularly in export-oriented industries such as the timber industry, the textile and canning fish.

Based on data from the Ministry of Manpower and Transmigration (Ministry) to the end of December 2008, the number of job separation workers who have reached approximately 10 306 people. The number of unemployed is expected to continue to increase in line with the absence of signs of improvement in the world economy. (Outlook Ekonomi Indonesia, 2009-2014)

Facing the problem of unemployment and poverty, the government has introduced various programs policies that lead to the empowerment of communities. In 1968-1984, the government's concern for community empowerment program that is community guidance (bulk guidance) involving BRI and village cooperatives (KUD). BRI give credit for micro, small and middle business sector (UMKM) moving in agriculture and trade (special agricultural trade). In 1980-1988, the government issued a policy through the Small Investment Loan Program and working capital (KIK and KMKP). In 1990-1995, there was the small business loan program (KUK). In 1994, the government requires the State Owned Enterprises (enterprises) to set aside 1-5% of corporate profits for the Advisory Small Business and Cooperative (PUKK) through the

Ministry of Finance Decree Number 316 / KMK.016 / 1994. The government issued Law Number 9 of 1995 on small businesses. Government Regulation Number 44 of 1997 on the partnership. Government Regulation Number 32 of 1998 on the promotion and development of small businesses. Instructions President of Republic of Indonesia Number 10 of 1999 on empowerment medium enterprises. A presidential degree of the Republic of Indonesia Number 127 of 2001 on the field/type of business reserved for small businesses and areas/types of businesses that are open to the medium or large businesses with terms of partnership. A Presidential Decree of the Republic of Indonesia Number 56 of 2002 on the restructuring of small and medium business loans. Regulation of the State Minister of State-owned enterprises by Number-05 / MBU / 2007 concerning the partnership program with the state-owned small business and community development programs. The law of the Republic of Indonesia Number 20 of 2008 on micro, small and medium enterprises business.

In 2007, the Indonesian government launched the National Program for Community Empowerment (PNPM). PNPM Mandiri is essentially a national program run by all people to overcome poverty and the expansion of employment opportunities through community empowerment efforts to improve empowerment and independence in the purpose of improving the quality of life and social welfare. The program consists of PNPM Rural, PNPM Urban, and PNPM Mandiri special areas and villages. PNPM Rural is a program to accelerate poverty reduction in an integrated and sustainable

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(www.PNPM Mandiri.go.id). The many changes in policies and regulations on UMKM are the government's efforts in promoting and developing UMKM. The development of UMKM is expected to grow entrepreneurs who were able to reduce unemployment.

The main role of the existence and growth of UMKM are generally intended to provide a positive contribution to efforts to reduce poverty, unemployment and the equitable distribution of income. Hence, it is not surprising that the presence of SMEs UMKM have always been associated with the problems of economic and social (Sukidjo, 2004). Meanwhile, according to Sudarno (2011) that UMKM have a significant role in the manufacturing industry in terms of the number of business units and absorption of labor, but weak in contributing to the value of output. In 2002, total manufacturing business unit in Indonesia as many as 2.732 million, was 99.2 is a business unit of UMKM, with a labor force of less than 20 persons are able to provide employment for 59.3% of total employment. Nevertheless, the contribution of UMKM to the output value of the manufacturing industry only by 17,8 %. These patterns tend to be similar from year to year (1997-2002). The number of people working to UMKM shows how important the role of UMKM in helping would solve the problem of unemployment and the equitable distribution of income.

In the economic development of UMKM in Indonesia is always portrayed as a sector which plays an important role, because most of the population is poorly educated and live in small business activities in both the traditional and modern, and is able to

absorb a lot of labor. The role of small businesses has become the preferred part in the planning stages of development that are managed by the two departments of Industry and Trade, and the Ministry of Cooperatives and UMKM. (Hapsari, dkk, 2014)

Based on the above problems, the researcher was interested to examine whether employment growth of UMKM has been able to reduce open unemployment rate in Indonesia? And what the problems faced by the government in applying the policy of empowering the UMKM of the year 1998-2013?

2. THEORY 2.1 Micro, Small and Middle

Business Sector (UMKM) According to Law Number 20 of 2008, Article 6 of the micro small and medium business to classify the type of business as follows:

1. Criteria for micro business are as follows:

a. Having the net worth of at most Rp. 50,000,000.00 (fifty million rupiah) not including land and buildings; or

b. Having result annual profit of at most Rp. 300,000,000.00 (three hundred million rupiah).

2. Criteria for small businesses are as follows:

a. Having the net worth of more than Rp. 50,000,000.00 (fifty million) up to a maximum of Rp. 500,000,000.00 (five hundred million rupiah) not including land and buildings; or

b. Having annual profit of more than Rp. 300,000,000.00 (three hundred million rupiah) up to a maximum of Rp. 2,500,000,000.00 (two

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billion five hundred million rupiah).

3. Criteria for middle businesses are as follows:

a. Having the net worth of more than Rp. 500,000,000.00 (five hundred million rupiah) up to a maximum of Rp. 10,000,000,000.00 (ten billion rupiah) not including land and buildings; or

b. Having annual profit of more than Rp. 2,500,000,000.00 (two billion five hundred million rupiah) up to a maximum of Rp. 50,000,000,000.00 (fifty billion rupiahs).

The category of micro, small and medium sized enterprises (SMEs) is made up of enterprises which employ turnover not exceeding 50 million euro, and/or an annual balance shee total not exceeding 43 million euro. (Extract of Article 2 of the Annex of Recommendation 2003/361/EC (European Commission: Enterprise and Industry, Small Medium Sized, Enterprises, 2005) on Hoivik and Shankar, 2011).

Mogontha (2013) explained that Taking risks is related with how to create a new business especially in this research, a micro and small enterprise that really need persistence of the entrepreneur and a serious big willingness to start from the very first years with its complicated concept-designing, choosing appropriate material, hiring new staff and others. As time goes by, a micro and small enterprise will face many problems and challenges related to characteristic of micro and small enterprise itself. The next step is in the existence of the business in terms of capital resources and productivity.

2.2 Unemployment According to the BPS population including labor force is the working age population (15 years and over) who work, or have a job but temporarily absent from work and unemployment. While the work is economic activity performed by a person with the intent to obtain or help earn revenue or profits, at least an hour (uninterrupted) during the past week. Such activities include unpaid workers patterns of activity that helps a business/economic activity.

Open unemployment is as follows:

1. Those who did not have a job and looking for work.

Looking for work is the activity of a person who at the time of the survey people were looking for jobs, as they are:

a. Who has never worked and is trying to get a job;

b. Who has ever worked, because something stopped or terminated and is trying to get a job;

c. Who work or have a job, but for some reason still trying to get another job.

Job search effort is not limited to a week before census, so they're trying to get a job and that his petition had been sent more than a week ago still regarded as seeking employment as long as a week ago still expect job search. Those who are working and trying to get another job that cannot be identified as open unemployment.

2. Those who did not have a job and preparing a business

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Preparing a business is an activity that is carried out by someone in order to prepare a business/work that is "new", which aims to generate income/profit at their peril, either with or without hired labor/worker is paid or unpaid. Preparing question is when "real actions", such as: raising capital or equipment/tools, search for a location/place, taking care of business license and so on, have been/are being carried out.

Preparing a business excluding new business plan, intend, and just follow the course/training in order to open a business.

3. Those who did not have a job and not looking for work, because it was impossible to get a job.

4. Those who already have a job, but have not yet started work.

The open unemployment rate is the percentages the number unemployment rate on the number of labor force. (www.bps.go.id).

According Sukirno (2004: 330) classification of the type of unemployment is based on its characteristics is as follows:

1. Open unemployment that unemployment is created as a result in the vacancy lower is lower than the increase of labor.

2. This hidden unemployment is unemployment created as a result the number of workers in an economic activity more than is actually necessary.

3. Seasonal unemployment is unemployment created by the existing season, there are usually unemployed in the agricultural and fisheries sectors.

4. Half of employment is unemployment created by work is

not full and their working hours are much lower than normal.

According ILO the unemployed comprise all persons above a specified age who during the reference period were:

1. Without work, that is, were not in paid employment or self employment during the reference period;

2. Currently available for work, that is, were available for paid employment or self –employment during the reference period; and

3. Seeking work, that is, had taken specific steps in a specified recent period to seek paid employment or self employment.

The specific steps may include registration at a public or private employment exchange; application to employers; checking at worksites, farms, factory gates, market or other assembly places, placing or answering newspaper advertisements; seeking assistance of friends or relatives; looking for land, building, machinery or equipment to establish own enterprise; arranging for financial resources; applying for permits and licences, atc.

2.3 Previous Research Supriyanto (2006) alleviation of poverty by developing SMEs have good potential. SME sector has a major contribution to employment, which absorbs more than 99.45% of the workforce. Nonetheless contribution to the PDN still around 30%. Efforts to promote the SME sector will certainly be able to improve the welfare of the workers involved. Development of SMEs would be able to absorb more of the existing workforce so as to reduce the unemployment rate.

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Hidayat and Akhmad (2012) explained that Government’s development efforts through assistance for LED-SMEs were able to provide great benefits so as to increase growth of business units and business performance. LED-SMEs that have received assistance would have a new production factor in management, engineering and financial that could facilitate business activities. The assistance programs were expected to overcome obstacles faced by LED-SME entrepreneurs in terms of low levels of technical skills, managerial capabilities, unfavorable business climate, capital distress, difficulties in promotion and marketing. Meanwhile, government’s development efforts through training were not able to directly affect growth of LEDSME business units and performance. Trainings were not only seen as a momentary learning, but as a process of continuous learning and productivity that would ultimately enhance growth of business units. Programs of SME development through training for LED-SME should not be linked to political issues or jargons of the ruling parties, such as community economic issues or other political issues.

Murdiansyah (2014) empowerment of local industries by utilizing funds Gerdu Taskin program to absorb a lot of labor is generally the local industry in the use of energy in the surrounding area. This could potentially reduce unemployment in the region, ultimately able to reduce poverty in the village.

Hasan and Jamil (2014) explained that Bangladesh is have proven capacity in overcoming many business challenges and winning the market if they are properly supported by the government and a conducive atmosphere required for it. Today's

entrepreneurs are highly capable and have good exposure to the world. What they cannot do is solving problems that are beyond their capacity. The problem of arranging adequate finance and making it easily available to the entrepreneurs are the most important of those ones. Government should come forward to solve these problems with the highest priority. And, if the government can do so, the entrepreneurs will surely give their highest return for the nation.

Francisca and Lantu (2014) explained that Overall, the PESTEL analysis of Singapore provides a pleasant result of doing business in Singapore since it is not too far from Indonesia, has stable government with low corruption rate and easy entry for foreign companies, strong economy that create high buying power, open to diversity of culture, familiar with Indonesian culture, high education level to appreciate creative products, has good internet connectivity and social media usage, safe and supporting environment for business, and proper, reasonable regulations for international business purpose. There is no big hurdle apparent from the country current state itself, moreover Bandung Store already has support from Singaporean government that ensure the store to be welcomed in doing business in Singapore. Porter’s five forces also show a pretty decent result. The Singapore fashion industry shows quite high competitiveness, but it also proves that this industry has great demand and there is still a chance organ for Bandung Store to enter.

3. METHODOLOGY This research uses quantitative approach. We analyzed employment growth of UMKM and open unemployment data in the period

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1998-2013. To determine the influence of the growth of UMKM employment rate in reducing the open unemployment rate then use ordinary least square analysis. Further, the researcher used descriptive-study case to present effective government policy in reducing the open unemployment rate through development UMKM.

4. ANALYSIS AND DISCUSSION The development of UMKM in Indonesia is increasing due to the government's role in the economic empowerment of the people. Evidence of government support which has issued several policies related to UMKM. Of the regulations issued from 1998 -2013 year 2013 can be determined the direction of policy or rules defined as follows:

1. Funding Government funding of various policies is to give credit to UMKM through KIK and KMKP, KUK, and PNPM Mandiri (Savings and Loans women) to work together both financial institutions and non primarily to financial institutions, both conventional or shari’ah. Funding is offered in the form of loans with an interest rate that is considered low by the government, so that the public is able to expand its business. In addition the government increased export guarantee agency functions, facilitating debt restructuring/UMKM loans are problematic.

2. Competition Government seeks to improve cooperation among the business units to prevent the formation of the structure of the market so the market is dominated by individuals or groups that harm small business units.

3. Infrastructure The Government provides a common infrastructure that can help UMKM to grow and provide relief for certain infrastructure for UMKM, help conduct research and marketing development, popularization of E-commerce and home improvement trade functions (trading house).

4. Information Forming a container of data or information required by UMKM

5. Partnership Regional Owned Enterprises Realize partnerships with larger businesses such as Regional Owned Enterprises (BUMD) or State-Owned Enterprises (BUMN). The government is also seeking to provide and prepare the land, provide production facilities, providing technical guidance and production business management, acquisition, control and improvement of the necessary technology. Government seeking partnerships between big businesses and medium to small businesses

6. Business licensing The Government seeks to simplify business permits for SMEs

7. Protection Promotion and development of small businesses include the production and processing, marketing, human resources and technology

8. Advisory and development of small business Promotion and development of small businesses include the production and processing, marketing, human resources and technology.

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9. Technology Encourage the implementation of technology transfer for development and improvement of the quality of design, product, production processes and services that meet international quality standards.

Based on the effort of government policies that have been made in empower of UMKM. UMKM development is rapidly increasing, as shown in Table 1. Developments 2012-2013 explained that the development of the business units in more UMKM compared to large business, namely 2.41% 1.97% UMKM and large business. There is 2.41%, the development of medium businesses more than the micro and small businesses. Development of medium businesses is caused by several things:

1. Reducing the small business because rising level to medium businesses.

2. Reducing the big business because decreasing level to medium businesses.

3. increasing new medium businesses

If the cause is points 1 and 3 it is good for the economy and could have an impact reducing unemployment. However, if the cause is the 2 points then bad for the economy and could have an impact increase unemployment, government intervention is indispensable. In 2013, the order of the number of workers from the largest to the smallest is as follows: the highest number of business units that are still in the types of micro business amounted to 6,486,573 million people, small businesses amounted to 4,764,949 million people, medium business amounted to 1,034,262 million people and big business amounted to 687 363 million people. Although UMKM are able to absorb more labor, it cannot be said UMKM have succeeded in reducing unemployment. This is due to the amount of employment in proportion to the large number of business units. Government policy will succeed when with the additional the number of business unit micro and small entrepreneurs who a little capable of absorbing labor highly elastic. While data on employment development of SMEs is still lower half of big businesses.

Table 1. Development of Micro, Small and Medium and Big Business, 2012-2013

Indicator Unit 2012 Tahun 2013 Development 2012-

2013

Total Development Total Development Total %

I. Business Unit (A+B) 56.539.560 57.900.787 1.361.227 2,41

A. UMKM 56.534.592 99,99 57.895.721 99,99 1.361.129 2,41 - Micro Business (UMi) Unit 55.856.176 98,79 57.189.393 98,77 1.333.217 2,39 - Small Business (UK) Unit 629.418 1,11 654.222 1,13 24.803 3,94 - Middle Business (UM) Unit

48.997 0,09 52.106 0,09

3.11 6,35

B. Big Business (UB) Unit 4.968 0,01 5.066 0,01

98 1,97

II. Employment (A+B) 110.808.154 117.681.244 6.873.090 6,20 A. UMKM 107.657.509 97,16 114.144.082 96,99 6.486.573 6,03 - Micro Business (UMi) Person 99.859.517 90,12 104.624.466 88,90 4.764.949 4,77 - Small Business (UK) Person 4.535.970 4,09 5.570.231 4,73 1.034.262 22,80 - Middle Business (UM)

Person 3.262.023 2,94 3.949.385 3,36

687.363 21,07

B. Big Business (UB) Person 3.150.645 2,84 3.537.162 3,01 386.517 12,27 Data Source: Ministry of Cooperatives and UMKM (processed)

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In line with the development of UMKM business units and development of UMKM, the number of workers from the labor force growth in 1998-2013 is very fluctuating. There are some years

where when employment growth of UMKM increased while open unemployment rate also increased or decreased. Employment growth is expected to reduce the rate of open unemployment in Indonesia.

Tabel 2. Employment Growth of UMKM and Open Unemployment Rate, 1998-2013

Tahun Employment

Growth of UMKM

Open Unemployment

Rate 1998 -1.96 5.46 1999 4.44 6.36 2000 8.24 6.08 2001 2.73 8.10 2002 4.18 9.06 2003 5.31 9.67 2004 -1.83 9.86 2005 3.90 11.24 2006 5.17 10.28 2007 2.94 9.11 2008 3.90 8.39 2009 2.33 7.87 2010 3.32 7.14 2011 2.33 6.56 2012 5.83 6.14 2013 6.03 6.25

Data Source: www.bi.go.id

This is in line with the results of a statistical test where employment growth of UMKM is a independent

variable and open unemployment rate is the dependent variable, as shown in Table 3.

Table 3. Coefficientsa

Model Unstandardized

Coefficients Standardized Coefficients t Sig.

B Std. Error Beta

1 (Constant) 8.149 .781 10.435 .000

pertumbuhan jumlah tenaga kerja umkm -.049 .179 -.074 -.277 .786

R = .074 R2 = .005 t table = 2.145

Sumber: hasil data olahan penelitian

Simple linear equations obtained are as follows:

Y = 8,149 – 0,049 X + ε

Statistical analysis Showed that Value 8.149 explained that if the variable employment growth of SMEs did not grow or equal to zero, then the open unemployment rate was at 8.149. If the variable employment growth of UMKM grew by 1%, the open unemployment rate will fall by 0,049. The variable determinant coefficient describes the employment growth of UMKM determine the open

unemployment rate is only 0.5%, while 95.5% is determined by other variables. Result of t test showed that Ho is accepted and Ha rejected. Variable of employment growth of UMKM do not affect the open unemployment rate. It shows that during the period of 16 years UMKM program have not successes to reduce the open unemployment rate.

Why this happened? We must go back again with some superbly policies defined and implemented by the government. Here are the obstacles that impede the success of the

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government's efforts to reduce unemployment through employment in UMKM:

1. Funding Funding is offered to UMKM are generally still relatively high for UMKM. Based on Table 1, the type of business unit is the largest micro and small business. Micro and small business have a net worth in the bottom of Rp. 500,000,000.00 (Based on Law No. 20 of 2008, Article 6). Complex bureaucracy and the collateral is an obstacle faced by UMKM. UMKM in particular to micro and small businesses do not have the financial report. Generally, Capital UMKM owned is equity or loans from colleagues, borrowing from suppliers of raw materials or of a larger business. Resulting in the use of loan capital or operating results are often used for family finances.

2. Competition Government efforts to improve collaboration among business units had not been realized properly. Generally, big and medium businesses are often deadly micro and small business. One example is the existence of the modern market often deadly business in the traditional trade.

3. Infrastructure Procurement of public infrastructure has started quite effective but still needs to be improved further amount of public infrastructure. Such as the existence of a trading house still very small compared to the number of UMKM units.

4. Information Currently the container information for UMKM only one

is the Department of Trade Industry and cooperatives (Disperindakop UMKM).

5. Partnership Regional Owned Enterprises The process of partnering with effort greater is very weak. To promote UMKM are indispensable contribution of small businesses to embrace big businesses as partners. Lack of confidence in the UMKM because the resulting product is below standard and UMKM have employee whose qualifications are generally below the high school graduates.

6. Business licensing Bureaucracy business license is very convoluted and take a long time.

7. Protection A form of protection through various regulations issued by the government for UMKM is good enough.

8. Advisory and development of small business For the promotion and development of small businesses in the field of production is very weak. The production equipment used by UMKM is still very traditional. Marketing is confined in a local only. And low skills possessed human resources.

9. Technology From the quality of the products of UMKM showed the use of technology that is still traditional and the lack of research and business development for UMKM.

Under these constraints, government regulations must be executed in accordance with a predetermined. Regulations set to be partial to

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UMKM, because UMKM is one solution to reduce unemployment. With the increasing number of UMKM business unit, the amount of labor that is absorbed will increase so that unemployment will decrease. Incompatibility with the theoretical results of this research proves there is failure of governments to empower SMEs.

5. CONCLUSION Statistical analysis showed that Ho is accepted and Ha rejected. It is only 0.5% contribution growth of UMKM employment rate variable on open unemployment rate variable. It shows that during the period of 16 years (1998-2013) UMKM program have not successes to reduce the open unemployment rate. Hence need of effective government policy.

From the year 1998-2013, there were nine components that sought government in empowering UMKM. Nine of these components are funding, competition, infrastructures, information, partnership regional owned enterprises, business licensing, protection, advisory and development of small business, and technology. Regulations set not according to the needs of UMKM and the ineffectiveness of some regulations. The high interest rate is set, weak human resources owned by UMKM, not the partnership process goes from big companies to UMKM, the use of technology that is both traditional and marketing are still localized.

Based on the research results, the researcher recommends to the government in implementing the regulations must be in accordance with the conditions of UMKM in Indonesia. The Government needs to supervise directly in developing a partnership that is the role of large companies such as enterprises, state-owned and private companies, in

develop the UMKM. Increasing UMKM will absorb a larger labor force that will reduce the open unemployment rate.

6. BIBLIOGRAPHY [1] A presidential Degree of the

Republic of Indonesia Number 127 of 2001 on the field/type of business reserved for small businesses and areas/types of businesses that are open to the medium or large businesses with terms of partnership.

[2] A Presidential Decree of the Republic of Indonesia Number 56 of 2002 on the restructuring of small and medium business loans.

[3] Francisca C, and Lantu D (2014) Developing Bandung Store in Singapore: A Preliminary Study. Journal of Business and Management. Vol. 3, No. 4.

[4] Government Regulation Number 44 of 1997 on the partnership.

[5] Government Regulation Number 32 of 1998 on the promotion and development of small businesses.

[6] Hapsari P, Hakim A, Soeaidy S (2014) Pengaruh Pertumbuhan Usaha Kecil Menengah (UKM) terhadap Pertumbuhan Ekonomi Daerah (Studi di Pemerintahan Kota Batu). Wacana. Vol. 17, No. 2.

[7] Hasan F, and Jamil G (2014) Financing Small and Medium Enterprises in Bangladesh – Issues and Challenges. The Asian Journal of Technology Management. Vol. 7, No. 1.

[8] Hidayat R, and Akhmad S (2012) Development of Local Economic Development Small and Medium Industries (LED-SME) in East Java. Makara, Teknologi. Vol. 16, No. 2.

[9] Hoivik H, and Shankar D (2011) How can SMEs in a cluster respond to global demands for corporate responsibility. Journal of Business Ethics, 101.175-195.

[10] Instructions President of Republic of Indonesia Number 10 of 1999 on empowerment medium enterprises.

[11] Murdiansyah I (2014) Evaluasi Program Pengentasan Kemiskinan

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Berbasis Pemberdayaan Masyarakat. Jurnal WIGA. Vol. 4, No. 1.

[12] Mogontha D (2013) A Study of Micro and Small Enterprises in Manado. Jurnal EMBA. Vol. 1, No. 4.

[13] Outlook Ekonomi Indonesia 2009-2014 Krisis Ekonomi Global dan Dampaknya terhadap Perekonomian Indonesia. 3th ch. January, 2009. P. 48.

[14] Regulation of the State Minister of State-owned enterprises by Number-05 / MBU / 2007 concerning the partnership program with the state-owned small business and community development programs.

[15] Sudarno (2011) Kontribusi Usaha Mikro, Kecil dan Menengah (UMKM) Dalam Penyerapan Tenaga Kerja di Depok. Jurnal Ekonomi dan Bisnis, Vol. 10, No. 2.

[16] Sukidjo (2004) Strategi Pemberdayaan Usaha Kecil dan Menengah. Jurnal Ekonomi dan Pendidikan. Vol. 2, No. 1.

[17] Sukirno S (2004) Makro Ekonomi Pengantar. 3th. Ed. Jakarta, PT. Raja Grafindo, Persada.

[18] Supriyanto (2006) Pemberdayaan Usaha Mikro, Kecil dan Menengah (UMKM) Sebagai Salah Satu Upaya Penanggulangan Kemiskinan. Jurnal Ekonomi dan Pendidikan. Vol. 3, No. 1.

[19] The laws of the republic of Indonesia Number 20 of 2008 on micro, small and medium enterprises business.

[20] The Ministry of Finance Decree Number 316 / KMK.016 / 1994.

[21] www.bi.go.id. [22] www.bps.go.id [23] www.PNPM.org.

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The Significance of Marketing Business Award on Corporate Reputation and Marketing Performance of Brand Holder Company

in Indonesia

Sylvia Rozza

Politeknik Negeri Jakarta Jl. DR. G Siwabessy, Kampus UI Depok

Abstract

This paper investigates the significance of marketing business award on corporate reputation and marketing performance. Since the award is conferred upon a brand, this study also measures the moderating effect of brand equity of a brand that receives the award on corporate reputation. Furthermore, it also measures its direct effect on corporate reputation. The unit of analysis of this research covers 200 customers of a brand that receives the award. Structural Equation Modeling (SEM) is used which generates the following findings. Marketing business award influences corporate reputation of brand holder’s company and in turn it enhances marketing performance in term of customer attitudinal and behavioral loyalty. As a moderator, brand equity enhances the effect of the award on corporate reputation while the brand equity itself does not influence corporate reputation. These findings confirm the theory application on this research as underpinning of the research model. The managerial implications on brand holder and award conferrer companies are also elaborated. Key Words: marketing business award, relational market-based asset, intellectual market-based

asset, brand equity, corporate reputation, marketing performance, attitudinal and behavioral loyalty.

1. INTRODUCTION Business awards have been bestowed for almost two decades in Indonesia. Award program has been conducted since 1998 by SWA business magazine-the initiator of business award conferment. However, a research that measures the significance of the awards specifically marketing business award on firm performance in term of marketing performance, was not adequately covered.

In the meantime, numerous researches on the significance of business award in the form of quality award have been conducted in The United State of America and The United Kingdom (e. g. Davis & Stading 2005; Jacob, Madu, & Tang, 2004; Balasubramanian, Mathur, & Thakur 2005; Dror 2008; Leonard 2006; Levine & Toffel, 2010). Most of the researches were measured in terms of financial performance (e.g. Jacob, et

al., 2004; Davis & Stading 2005; Balasubramanian et al., 2005). Many researchers of the awards have found that the awards generate corporate reputation (e.g. Miles & Covin 2000; McDonald, et al., 2002; Daniels, 2002; Balasubramanian, et al. 2005; Dror 2008). Despite those considerable numbers of researches to date, a research that measures the influence of the award on corporate reputation to the best knowledge of the researcher is still missing. Therefore, the purpose of this study is to cover the current inconclusiveness related to measuring specifically the influence of marketing business award on corporate reputation and ultimately on marketing performance. Furthermore, this research attempts to investigate the moderating effect of brand equity on the impact of the award and its direct effect on corporate reputation since the award is conferred upon a superior brand.

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2. THEORETICAL BACKGROUND

This research is based on three basic theories. The first two is Market-Based Asset (MBA) and its linkage with Resource-Based Theory (RBT). In addition, the Signalling Theory is used to delineate the role of the award as a communication medium between a company and stakeholders which can equalize information asymmetry between the two. These theories will be further highlighted.

2.1 Linking Market-Based Asset (MBA) and Resource-Based Theory (RBT)

This research is in the realm of Market-Based Asset (MBA) and its linkage with Resource-Based Theory (RBT). Kozlenkova, Sumaha, & Palmatier, (2014); Almarri & Gardiner, (2014); Wernerfelt, (2013) argue that RBT contributes in many aspects of marketing. Its main application is in the field of MBA. Leading RBT proponents state that marketing specific resources (MBA) can generate competitive advantage for acompany (Barney, 1991; Grand, 1991; Wernerfelt, 1984). In the context of RBT, resources that are valuable, rare, inimitable and non-substitutable (Barney, 1991) enable businesses to develop and maintain competitive advantages. Additionally, the businesses utilize these resources to attain competitive advantages for superior performance (Collis & Montgomery, 1995; Grant, 1991; Wernerfelt, 1984).

Principally, there are two types of market-based assets (MBA): relational and intellectual (Srivastava, Fahey, & Christensen, 2001). Relational MBA is the establishment of relationship with channels, customers, networks & ecosystem based on factors such as trust and reputation as a result of intimate

relationship. Intimate relationship between a company and its stakeholders indicate the existence of a relationship quality or strong relationship between them (Palmatier, Dant, Grewal, & Kenneth, 2006; Aurier & N’Goala, 2010). Meanwhile, intellectual MBA is the type of knowledge a firm possesses about its competitive environment (Srivastava, et al., 2001). This asset is a result of a company interaction with customers where company understands and delivers customers’ oriented products as needed.

Business awards generate corporate reputation (e,g. Balasubramanian et al., 2005). The researcher posits that marketing business award which comprises of relational and intellectual MBA are intangible marketing resources that create competitive advantage and ultimately superior marketing performance for the brand holder company. Corporate reputation is also one of intangible marketing resources (MBA) that can generate sustainable competitive advantage and can create value for long term marketing and financial firm performance (Caves & Porter 1977; Miles & Covin 2000; Boyd, Bergh & Ketchen Jr., 2010). Corporate reputation is an important intangible asset of a company (Hall, 1992; Flamagan & Shaughnessy, 2005). Barney, 1991; Dowling, 2001 Dierickx & Cool, 1989; Rindova, Williamson, Petkova & Sever, (2005) state that corporate reputation is an external and internal organizational attribute as intangible marketing resource in RBT perspective.

Marketing business award is conferred upon a brand. Then, brand equity of a brand that receives the award would interact with the award, and affects the effect of award on corporate reputation. Brand equity

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itself affects corporate reputation (Ying Fan, 2005; Smith, Smith & Wang, 2010). Brand equity is also an intangible marketing resource or an MBA in the context of RBT (Barney, 1991; Grant, 1991; Wernerfelt, 1984; Srivastava et al., 2001).

Award as an MBA is measured by marketing performance in the form of attitudinal and behavioral loyalty. To see the benefit of the award for the brand holder company, the significance of the award on marketing performance has to be initially measured by corporate reputation. Therefore, corporate reputation will be a mediating variable which influences customer loyalty (Alsop, 2004; Gotsi & Wilson, 2001; Walsh, Mitchell, Jackson & Beatty, 2009). The concepts of corporate reputation, brand equity, customer attitudinal and behavioral loyalty will be the basis of the research model.

2.2 Signaling Theory and Marketing Communication

Signaling is about delivering information in order to equalize information asymmetry between two parties done by an agent (Spence, 1973, 1974). Marketing division can be a medium or so called agent that also signals important aspects of a company (Homburg, Bornemann, &Totzek, 2009) so that the company can inform and equalize information with customers as the most important stakeholder (Hult, 2011).

Marketing business award as an agent or marketing communication medium

can signal good corporate reputation of a company as a superior brand holder. From this perspective an agent is a communication medium between company and customers that informs company’s good corporate reputation (Kiousis, Popescu & Mitrook, 2007). Corporate reputation is also a signal of company ability in satisfying its customers (Boyd, et al., 2010; Fombrun & Shanley, 1990; Spence, 1973). Signalling Theory is used to clarify the role of marketing business award and corporate reputation as MBAs and agents which will equalize information asymmetry between a brand holder company and customers.

3. RESEARCH MODEL AND HYPOTHESIS

3.1 Research Model The research model depicts the relationship of six variables. Marketing business award as reflection of relational and intellectual assets (AR and AI) are the first two variables which influence corporate reputation. Brand equity (BE) and corporate reputation (CR) are the next two variables where brand equity moderates the effect of award and directly affects corporate reputation. The last two variables are nonfinancial measures of marketing performance in terms of customer attitudinal and behavioral loyalty (AL and BL). The influence of award on marketing performance is mediated by corporate reputation. Interrelationships of the variables are described below. The research model can be depicted as follow (exhibit 1).

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Marketing Business Award as a Reflection of Relational Asset

The award is bestowed upon a superior brand of a company. This award is a result of a company intimate relation with customers based on trust and reputation where the company is capable of providing trusted and satisfying brand for customers. The brand is the best for the customers and suits their need, so they trust and are committed to the brand. Company interaction with stakeholders as a result of their intimate relation based on trust and reputation, is a relational market-based asset (Srivastava et al., 2001). The award meets the criteria of relational asset in the context of MBA. In the intimate relation or strong relationship, there is relationship quality which reflects trust and commitment (Palmatier, et al., 2006; Aurier & N’Goala, 2010). Customer satisfaction and trust are antecedents of corporate reputation (Walsh, et al., 2009). Hence, this award that received by a brand where customers have satisfaction and trust toward the brand influences corporate reputation as stated by e.g. Balasubramanian et al., (2005).

Marketing Business Award as a Reflection of Intellectual Asset

The award is a proof of company’s knowledge on its competitive

environment. A brand which receives this award understands customers need more than competitors do and provides all information needed by customers. Company’s knowledge on competitive environment as a result of its interaction with stakeholders is an intellectual market-based asset (Srivastava et al., 2001). This award reflects intellectual asset since the company understands and provides more customer oriented product than competitors do, treats customers as valuable asset responsively. It indicates that the company has market-based capabilities as stated by Ramaswami, Srivastava, & Bhargava, (2009). Likewise, this award also influences corporate reputation (e.g.Balasubramanian et al., 2005).

Corporate Reputation as Mediating Variable

Walsh & Beatty (2007: p. 129) defines firm’s reputation from customer perspective, as: “The customer’s overall evaluation of a firm based on his or her reactions to the firm’s goods, services, communication activities, interaction with the firm and/or its representatives and/or known corporate activities”. Trust and customer satisfaction are the antecedents of corporate reputation (Walsh, et al., 2009; Walsh & Beatty, 2007). Marketing business award as

Research Model

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relational and intellectual MBA meets criteria of corporate reputation antecedents due to award is a proof of customer trust and satisfaction to a superior brand of a brand holder.

Brand Equity as Moderating Variable and Variable that Directly Influences Corporate Reputation

Keller, (2003, p. 60) defines customer-based brand equity as: “differential effect that brand knowledge has on consumer response to the marketing of that brand”. Brand equity is vital and a core component of corporate reputation (Ying Fan, 2005; Smith, et al., 2010). The brand equity of the brand that receives the award would interact with the award and moderate the effect of award on corporate reputation. Strong brand will enhance customer trust and satisfaction where these two components are antecedents of corporate reputation (Walsh et al., 2009). Basdeo, Smith, Grimm, Rindova, & Derfus, (2006) state that company’s strong brand influences corporate reputation. Therefore, brand equity of a brand that receives an award will be an antecedent that influences corporate reputation.

The Measure of Marketing Performance

Marketing activity is considered successful when it can enhance customer loyalty (Dick &Basu, 1994; Li & Robert, 2011). Customer loyalty is a result of a successful marketing strategy and will improve competitive advantage (Li & Robert, 2011). Customer loyalty has been the center of scholars’ attention as the most attractive nonfinancial measure of marketing performance in marketing literature (Rust, Ambler, Carpenter, Kumar & Srivastava, 2004; O’Sullivan & Abela 2007).

Customer loyalty is the main objective of strategic marketing plan and an important basis in building sustainable competitive advantage. It will be achieved through marketing activities (Kotler, 1994). Loyal customer tends to express two types of changing behaviors i.e. repeat buying behavior and saying positive things to others because of product quality and prior satisfaction received (Pollack, 2009). Therefore, customer loyalty is greatly related with company’s successful and profitability (Eakuru & Mat, 2008). Corporate reputation enhances customer loyalty (Alsop, 2004; Gotsi & Wilson, 2001; Walsh et al., 2009). There are two types of customer loyalty: attitudinal and behavioral (Jacoby & Chestnut, 1978). Corporate reputation as an MBA enhances customer attitudinal and behavioral loyalty.

Attitudinal loyalty is a level of customer psychological ties toward a product or a brand (Chaudhori, & Holbrook, 2001). Meanwhile, behavioral loyalty can be seen through repeat buying of the same brand overtime, a brand is the first choice in purchase sequence, increased brand purchase proportion, and lower brand switching in a product category among customers (Palmer, McMahon-Bettie & Beggs, 2000; Shukla, 2004).

3.2 Hypothesis Influence of Marketing Business Award as Relational and Intellectual MBA on Corporate Reputation and Moderation of Brand Equity on the Effect of the Award on Corporate Reputation

The researchers of quality award significance state that the award generates corporate reputation (e.g. Balasubramanian, et al. 2005). Marketing business award which

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received by a superior brand is a result ofcompany intimate relation with customers where the company is capable of providing satisfying brand for the customers. According to Sivastava et al., (2001) relational MBA is an asset as a result of intimate relation between a company and stakeholders based on trust and reputation. Therefore, marketing business award is a reflection of relational MBA.

A brand holder company receives a marketing business award because of its understanding of customer need for a superior brand better than competitors. Srivastava, et al., (2001) states that an intellectual MBA is an asset derives from company’s knowledge on its competitive environment. Therefore, marketing business award is a reflection of intellectual market-based asset due to company’s knowledge of its competitive environment. Therefore, it can provide customer oriented product better than competitors do.

Customer satisfaction and trust are antecedents of corporate reputation (Walsh et al., 2009). Hence, this award which received by a brand where customers have satisfaction and trust toward the brand, influences corporate reputation (e.g. Balasubramanian et al., 2005).

Signaling is about delivering information in order to equalize information asymmetry between two parties done by an agent (Spence, 1973, 1974). An agent is a communication medium between company and customers which informs company’s good corporate reputation (Kiousis et al., 2007). Corporate reputation is a signal of company ability in satisfying its customers (Boyd et al., 2010; Fombrun & Shanley, 1990). This award in Signaling Theory

perspective is an agent or communication medium that can inform the customers about the brand superiority owned by a company.

Brand equity is a vital and core component of corporate reputation (Ying Fan, 2005; Smith, et al., 2010). Brand equity of a brand that receives the award will interact with the award in affecting corporate reputation. Hence, the next four hypotheses will be as follows:

H1. Marketing business award as relational market-based asset positively influences corporate reputation.

H2. Marketing business award asintellectual market-based asset positively influences corporate reputation.

H3. Strong brand equity moderates the effect of award as relational market-based asset on corporate reputation.

H4. Strong brand equity moderates the effect of award as intellectual market-based asset on corporate reputation.

Influence of Brand Equity of a Brand Receives Marketing Business Award on Corporate Reputation.

Strong brand will increase customer satisfaction and trust. These two factors are the antecedents of corporate reputation on customer perspective (Walsh & Beatty, 2007; Walsh, et al., 2009). Basdeo, et al., (2006) stated that corporate reputation is greatly influenced by the activity of a company such as building superior brand. Therefore, brand equity of a brand that receives an award will be an antecedent of corporate reputation. Hence, the researcher argues the next hypothesis:

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H5. Brand equity of a brand receives marketing business award influences corporate reputation.

Influence of Corporate Reputation of a Company which Receives Marketing Business Award on Customer Attitudinal and Behavioral Loyalty

A good corporate reputation is a company rare resource, because it is scarcely owned and is difficult to imitate, can generate competitive advantage and superior firm performance as stated in the context of RBT (Diericks & Cool, 1989; Hall, 1992; Robert & Dowling, 2002; Rindova et al., 2005). Corporate reputation signals the quality of a company to stakeholders, and at the end constructs the perception of company ability in satisfying and fulfilling customers’ need (Boyd et al., 2010). Positive attitude toward a company and sustainable repeat purchase are keys to customer loyalty (Dick &Basu, 1994). Customer buying intention for more products is higher from a company with a good corporate reputation although with a more expensive price (Graham & Bansal, 2007).

Customer loyalty is an impact of a good corporate reputation and it will be stronger when the corporate reputation becomes more positive (Alsop, 2004; Gotsi& Wilson, 2001). There are two types of customer loyalty: attitudinal and behavioral (Jacoby & Chestnut, 1978). Attitudinal loyalty is a level of customer psychological ties toward a product or a brand (Chaudhori, & Holbrook). Customers who perceive the company to have a good reputation would be expected to be more willing to engage in positive word of mouth than those customers who do not perceive the company has a good reputation where saying

positive things (e.g. about the brand) to others or positive word of mouth is the strongest dimension of customer attitudinal loyalty (Chaudhori, & Holbrook, 2001;Sundaran, Mitra&Webster, 1988; Walsh et al., 2009).

Behavioral loyalty can be seen through repeat buying of the same brand overtime, a brand is the first choice in purchase sequence, increased brand purchase proportion, and lower brand switching in a product category among customers (Palmer, et al., 2000; Shukla, 2004). Wernerfelt (1988) showed that customers exposed to a product with familiar brand name intensively, extended characteristics of the brand to the product and thus a good company reputation would suggest customers to judge the product more favorably. .Buying the same brand in the future overtime and increasing buying proportion are the kinds of favorable attitude towards a brand and the strongest dimensions of behavioral loyalty Thus, the next two hypotheses are as follows.

H6. Corporate reputation positively influences customer attitudinal loyalty.

H7. Corporate reputation positively influences customer behavioral loyalty.

4. RESEARCH METHODHOLOGY

This research is a descriptive research and a cross sectional study. This research uses survey as data collection method. The sampling method is purposive. To test the hypothesis, Structural Equation Modelling (SEM) is used because the constructs are perceptual basis, whereas those constructs can only be observed indirectly through its effects on observed variables. Interaction of

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all variables set in the research model and hypothesis can also be seen simultaneously with this tool (Wijanto, 2008). Furthermore, the moderating variable will be analyzed by interaction model approach with single indicator (Ping, 1995, 1998; Wijanto, 2008; Hair Black, Babin, & Anderson,2010).

4.1 Data Collection This research is started by interviewing an executive director of SWA magazine. From more than 20 business awards conferred by SWA, ICSA (Indonesia Customer Satisfaction Award) is the earliest marketing business award bestowed. This award is annually conferred to a local or global superior brand with high score in quality satisfaction, perceived best, value satisfaction, and expectation.

The purpose of the interview was getting insight why this magazine is interested in awarding business award as its core product. How is the stakeholder perception about the program? Do the companies that receive the awards get benefit from the award they win? Are their competitive advantages higher after winning the awards? Are they encouraged to do their best in order to win it more? How many kinds of awards have been bestowed? What is the earliest award conferred?

ICSA is bestowed upon a superior brand of a broad range of product categories (consumer products and services) owned by local and global brand holder companies. Rinso is a brand of detergent product category which consecutively receives this award since the last 7 years. This is a brand selected as the object of the award receiver. The reason of selecting Rinso is also because from preliminary study of brand awareness, most of the aspirant respondents are

familiar with the company that owns the brand. Since the brand holder’s company is well known to them, they could easily answer the questions pertaining to its corporate reputation, one of six variables to be investigated in this research.

The respondents are deciders which represent one of five consumer buying roles in a product purchase, i.e. initiator, influencer, decider, buyer, and user (Kotler & Amstrong, 1996). The role of deciders are the ones who make the ultimate purchase decision.

The steps of selecting respondents are as follow. Firstly, the aspirant respondents read the research explanation. Secondly, they answer the screening questions to ascertain whether or not they are the customers of Rinso detergent at least in the last one year, also, to assure whether they are aware of the award received by the brand. Thirdly, they are asked whether they are familiar with the brand holder company of the brand that received the award. Lastly, they are asked whether they are deciders in buying the brand.When the answers are“yes”, they are eligible as respondents to answer main questions. Finally, 200 customers of Rinso detergent produced by Indonesian Unilever Company- ICSA award receiver are the selected subject of the research.

4.2 Measurement item In order to test the hypothesis empirically, a questionnaire based on previous studies is arranged. This questionnaire represents the six research variables. 5 Likert-scale, ranging from 1 (“strongly disagree”) to 5 (“strongly agree”) is applied.

Research instrument is a questionnaire composed and adapted from questions that have been used in

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previous researches. 7 question items of AR variable which are related with relationship quality is adapted from the research conducted by Aurier & N’Goala, (2010). 5 questions items of AI which are related with market-based capabilities is adapted from the research conducted by Ramaswami, et al., (2009). 11 questions items of CR variable is from the research conducted by Walsh et al., (2009) whereas 7 questions items of BE variable is from the research conducted by Atilgan, Aksoy, and Akinci (2005). 5 and 4 questions items used in the research conducted by Kaur and Soch (2012) are for AL and BL variable.

To ensure validity and reliability of the questionnaire, the researcher did a pre-test with 30 aspirant respondents. Initially, there were 40 questions in the questionnaire. The result showed that there were four invalid question items. Loading factor of these items is less than 0.5. The researcher suspects that the aspirant respondents are not clearly comprehend the questions. Hence, the questionnaire was revised and the second pre-tent was done with another 30 aspirant respondents. Finally, there were 39 valid and reliable questions to be used in this research (attachment 1).

4.3 Data Analysis The research analysis applies two-step approach (Anderson & Gerbing, 1988). The first step uses Confirmatory Factor Analysis (CFA) to assure that the measurement model has good validity and reliability. On the second step, a structural path is added into the measurement model to compose a hybrid model as an initial structural model.

The validity of measurement model analysis shows that all standardized loading factors of each indicator are higher than 0.5. Likewise, reliability as evidenced by CR and AVE are accepted to be used for further analysis (attachment 2). Mean scores of each variable can be seen in attachment 3.

The hybrid model (attachment4) shows that standardized coefficient of AR and AI variables have negative scores with all four parameters in goodness of fit except p-value are in good fit. Before interpreting the result, model re-specification has to be done. Result of model re-specification is standardized coefficient of these two variables become positive (Attachment 5) with the same position of goodness of fit. It can be seen in table 1 as follow.

Table1. Goodness of Fit of Structural Model after Model Re-specification

Goodness-of-Fit Cut-off-Value Result Conclusion

Significance Probability (P-value) 0.05 0.0000 Poor Fit

RMR (Root Mean Square Residual) 0.05 or 0.1 0.087 Good Fit RMSEA (Root Mean square Error of

Approximation) 0.08 0.057 Good Fit

GFI (Goodness of Fit) 0.90 0.96 Good Fit AGFI (Adjusted Goodness of Fit Index) 0.90 0.95 Good Fit

Source: Analyzed from LISREL 8.70 Output

The result of hypothesis testing can be summarized in table 2. From 7 hypotheses proposed, only one is not supported. T-value of the effect of

brand equity on corporate reputation is not significant. LISREL 8.7 output shows the result in the next table below.

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Table2. Hypothesis Test of Marketing Business Award ICSA

HYPOTHESIS Coefficient T‐value Conclusion

H1 ARCR 0.15 2.54 Hypothesis Supported

H2 AICR 0.15 2.85 Hypothesis Supported H3 AR*BECR 0.21 4.95 Hypothesis Supported H4 AI*BE CR 0.25 5.75 Hypothesis Supported H5 BE CR 0.18 1.45 Hypothesis Not Supported H6 CR AL 0.92 17.02 Hypothesis Supported H7 CR BL 0.83 14.70 Hypothesis Supported

Source: Analyzed from LISREL 8.70 Output

5. RESULT AND DISCUSSION Result of previous analysis states that ICSA award as relational MBA influences corporate reputation. An asset generated from company intimate relation with customers based on trust and reputation is a relational MBA (Srivastava et al., 2001). Therefore, ICSA award which received by Rinso confirms as a reflection of relational MBA. It confirms the statements of quality award researchers that the awards generate corporate reputation (e.g. Balasubramanian et al., 2005).

ICSA award as intellectual MBA also influences corporate reputation. It is a result of company interaction with its customers because the company has knowledge on its competitive environment. Knowledge, a firm possesses about its competitive environment is an intellectual MBA (Srivastava, et al., 2001). Therefore, ICSA award reflects the criteria of an intellectual asset (AI) in the context of MBA. This award signals company’s ability in fulfilling and satisfying customers need with a superior brand. It also confirms the statement of quality award researchers that awards generate corporate reputation (e.g. Balasubramanian et al., 2005).

A company signals its activities to stakeholders done by an agent (Karasek, III & Bryant, 2011). The award as a communication medium or agent signals the creation of a good corporate reputation of a superior

brand holder company.ICSA award expands the types of agent in the context of Signaling Theory and award is a kind of positive promotion of company good corporate reputation.

Brand equity of Rinso interacts with ICSA award and strengthens the effect of the award as relational and intellectual MBA on Unilever corporate reputation. The influence of ICSA award on corporate reputation is enhanced by brand equity. High brand equity of Rinso is concerned with customer favorable perception on brand awareness and image. The high brand equity and ICSA award synergize to enhance corporate reputation. It indicates that ICSA award and brand equity signal the superior brand of the brand holder’s company.

On the other hand, brand equity of Rinso does not influence corporate reputation of the company.This is in-line with the concept of brand strategic management which explains that each brand equities have different ability in influencing brand holder company reputation (e.g. Keller, 2003). Unilever has 40 brands in its brand portfolio.With this wide range of brand portfolio, brand equity of Rinso does not occupy a strong position in the portfolio to be able to enhance company reputation.

Corporate reputation of brand holder’s company of Rinso

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significantly enhances customer attitudinal and behavioral loyalty. Corporate reputation strengthens customer’s trust toward a product/brand, increases satisfaction and enhances repeat purchase and customer loyalty (Davis & Young 1977; Nha Nguyen & Gaston Leblanc, 2001). Result of the research confirms the previous researches that a good corporate reputation strengthens customer loyalty (e.g. Alsop, 2004; Gotsi& Wilson, 2001; Walsh et al., 2009). It enhances level of customer psychological ties to the brand as well as repeat purchase of the brand. Loyal customer tends to express two types of changing behaviors i.e. repeat buying behavior and saying positive things to others because of product quality and prior satisfaction received (Pollack, 2009). Corporate reputation signals the brand superiority of the brand holder company.

Mean score of customer attitudinal loyalty which is generated from the corporate reputation of Unilever is higher than behavioral loyalty (attachment 3). Customers who perceive the company to have a good reputation would be expected to be more willing to engage in positive word of mouth than those who do not perceive the company has a good reputation (Sundaran et al., 1988; Walsh et al., 2009). Saying positive things (e.g. about the brand) or positive word of mouth is the strongest dimension of customer attitudinal loyalty (Chaudhori, & Holbrook, 2001). It confirms the result of previous researches that a good corporate reputation stimulates positive word of mouth in shaping customer loyalty (Sundaran et al., 1988; Walsh et al., 2009).

6. CONCLUSION Findings of this research show that marketing business award ICSA as relational and intellectual MBA generates corporate reputation. It reveals that this award is a precursor of corporate reputation.The award confirms as an MBA and an asset which can generate competitive advantage in the context of RBT. It also signals the good corporate reputation of a brand holder’s company.

Brand equity of Rinso that receives the award interacts with the award and significantly moderates the effect of the award on corporate reputation. However, the brand equity of Rinso does not influence corporate reputation of the brand holder company.

Corporate reputation of Unilever-the brand holder company that receives the award enhances customer loyalty, whereas the effect of corporate reputation on customer attitudinal loyalty is greater than its effect on behavioral loyalty.

Findings of this research have proven that an award received by a brand enhances firm performance in terms of corporate reputation and marketing performance. This award signals the good corporate reputation of the brand holder’s company, and in turn good corporate reputation signals higher marketing performance which is indicated by stronger customer loyalty.

This result will encourage the company to always produce and deliver products which suit and satisfy customers need. Consequently, many more brands in many product categories will receive the award.

The brand holder company should also evaluate their product promotion strategy to empower brand equity in

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order to enhance corporate reputation. The company should do a more aggressive product promotion of the brand. The more effective they promote the product the higher the brand equity, the stronger its moderation on the effect of the award and its direct effect on corporate reputation. Higher corporate reputation will strengthen customer loyalty. Consequently, number of product purchased will be higher and financial performance will be better.

The business magazine which has been doing the award program can also get benefit. The research findings have proven to the reader that the magazine has been doing a valuable program with a great meaning. The corporate reputation and marketing performance of the company which receives the award has been enhanced because of the award it receives. For the readers who need information of superior brands that receive the award, the magazine is the convincing source. Consequently, number of readers will increase and magazine sales volume will be higher.

7. LIMITATION AND FUTURE RESEARCH

This research has limitations that can be recommended as an advance research material. It only investigates the significance of one marketing business award namely ICSA. Moreover, focus of this research is only on one brand of detergent product category. Generalization would be difficult to make from this limitation. In future research, investigating the significance of the award received by many brands from various product categories would provide opportunity for generalization. So, it can be seen whether the significance of the award on corporate reputation and customer loyalty would be different.

Generally, consumer’s products attach a logo of the award they have received next to the brand name of the product or on the product package. It looks that the brand name of product to be aligned with the name of the award. If the name of the award received becomes a co-brand of award receiver brand, in the future research it will be interesting to examine the significance of the award in a position of a co-brand on the corporate reputation and customer loyalty.

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Islamic Work Ethics is Needed for Developing Core Competence of The Firm an Attempt to Integrate Work Ethic With Strategic

Human Resources Management

Willson Gustiawan1, Shang-Ping Lin2 1Department of Business Administration, State Polytechnic of Padang

Unand Limau Manis Campus, Padang, West Sumatra, Indonesia email: [email protected]

2Department of Business Administration, National Yunlin University of Science and Technology,

123University Road Section 3, Douliou, Yunlin 64002, Taiwan (ROC)

Abstract

In strategic human resource management, the resource-based view of the firm is traditionally used in predicting predictable future. But, more even recently, the future is increasingly unpredictable. The scholars shifted their perspective to core competencies as a new approach. Schuler’s 5-P SHRM Model could be used to explain this transformation through three of five Ps: HR policies, HR programs, and HR practices. Another two Ps HR philosophy and HR processes seems left behind that provide a space for work ethic available to be discussed. Work ethic will strengthen HR philosophy form the top of HR activities strategically, and HR processes from the bottom of HR activities practically in order for organization take to sue core competences to win the competition. It has been widely accepted that ethical values are intimately associated with religious values. In this paper we used Islamic Work Ethic (IWE), compared to traditional western work ethic used to cited as Protestant Work Ethic (PWE), to develop new approach in integrating work ethic with SHRM. This paper qualitatively elaborate the transformation from resource-based view of the firm to the core competencies through 5-P SHRM Model with Islamic Work Ethic as a new perspective. We discuss and propose the integrating work ethic with strategic human resource management. Key Words: Islamic Work Ethic, strategic human resources management, core competence

1. INTRODUCTION Currently, many companies recognize the growing importance of their human resource (Schuler & MacMillan, 1984). Although firms may pursue many ways to do, one thing that is frequently not recognized is capitalizing on superior human resource. The most significant reason this reality exists is because overall industry continues to see HR as a compliance issue. Talking about strategy without Human Resources core skills represented at the table is like trying to plan for next year’s budget without this year’s numbers (Peterson, 2005).

However, one of the most important aspects of your business is what is known as your HR strategy. This human resource-based advantage is difficult for a competitor to imitate

because the source of the advantage may not be very apparent to an outsider (Waggoner, 2015).

One of perspective to approach strategic human resource management is resource-based view of the firm. However, the last ten years development has not been easily predicted to emerge because: the popularity of RBV within SHRM literature as foundation for both theoretical and empirical examination has probably far surpassed what anyone expected (McMahan, Virick & Wright 1999); even though the application and implication of the RBV within the strategy literature has led to an increasing convergence between the fields of strategic management and SHRM (Snell,

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Shadur & Wright 2001). RBV could use in predicting predictable future.

To face the unpredictable future, strategic human resource management scholars look into core competencies as a new perspective to win the tight competition. According to Prahalad & Hamel (1990), core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies, and that involve many level of people and all functions.

Schuler et al. (1992) 5-P SHRM Model could be used to explain this transformation from RBV to core competencies through three of five Ps: HR policies, HR programs, and HR practices. Another two Ps HR philosophy and HR processes seems left behind. Here is the space for work ethic available to be discussed.

The purpose of this paper is to elaborate qualitatively the concept transformation from the resource-based view of the firm (RBV) to the core competencies through 5-P strategic human resources management model with a new perspective of work ethic. We use Islamic Work Ethic (IWE) to strengthen the discussion rather than traditional western work ethic called Protestant Work Ethic (PWE). To do this, we begin with elucidating strategic human resource, the 5-P SHRM Model, the RBV concept, the core competence, and the IWE conceptual framework. Finally, we discuss the integrating work ethic and SHRM.

2. THEORY 2.1 Strategic Human Resource

Management In the Strategic Human Resources Management (SHRM) issues, the primary task of manager of human

resources is to improve the match between individuals and jobs. Consider this issues: increasing use of teams, union relations and temporary/part-time workers, quality of work life, and human diversity (Gustiawan, 2011). Simply, Horace Parker director of strategic education at the Forest Product Company Seattle said that SHRM is about getting the strategy of the business implement effectively, and Bill Reffett, senior vice president of personnel at the Grand Union East Coast, SHRM means getting everybody from the top of the human organization to the bottom doing things that make the business successful. A composite definition from this source might include the following: SHRM is largerly about integration and adaptation. Its concern is to ensure that: (1) human resources management is fully integrated with the strategy and the strategy needs of the firm; (2) HR policies cohere both across policy area and across hierarchies; and (3) HR practices are adjusted, accepted, and used by line managers and employees as part of their everyday work (Schuler, 1992).

Wright & McMahan (1992) defined strategic human resources management as the pattern of planned human resource deployment and activities intended to enable an organization to achieve its goals. Some scholar such as Schuler & Jackson (1987), Snell (1992), and Wright & Snell (1991) stated that the field of strategic human resources management has traditionally focused on how firms develop and align human resource management practice in a way that support a firm’s chosen strategy. However, strategic human resource management entails more than simply examining human resource management practice.

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Kamoche (1993) and Wright (1994) added that strategic human resource management emphasizes the role of an organization’s human resources in developing a competitive advantage (Wright, et al., 1995).

2.2 The 5-P SHRM Model One of model that linking strategic business needs and strategic HR management activities is 5-P Model. According to Schuler et al., (1992), there five activities in the field of SHRM, namely the 5-P Model of SHRM, those are:

HR philosophy, expressed in statement defining business values and culture, expresses how to treat and value people

HR Policies, expressed as shared values (guidelines), establishes guidelines for action on people-related business issues and HR programs

HR Programs, articulated as HR strategies, coordinates efforts to facilitate change to address major people-related business issues

HR Practices, for leadership, managerial and operational roles, motivates needed role behavior

HR Processes, for the formulation and implementation of other activities, defines how these activities are carries out

They explained that HR philosophy: this is a statement of how the organization regards its human resources, what role the resources play in the overall success of the business, and how they are to be treated and managed. The firm’s HR philosophy can be found in its statement of business values/business (corporate) culture. HR policies; all of these statements provide guidelines for action on people-related business issues and the development of HR

program and practices based on strategic needs. People-related business issues are those that affect the immediate and future success of the business and involve people. HR programs, shaped by HR policies, HR programs represent coordinated HR effort specially intended to initiate, disseminate, and sustain strategic organizational change efforts necessitated by the strategic needs. HR practices: leadership roles include establishing direction, aligning people, motivating, and inspiring individuals and causing dramatic and useful change; managerial roles, traditional roles of planning, directing, delegating, organizing and coordinating; operational roles that needed to deliver services or make products. Roles can move. Matching practices and roles. HR processes, deals with how all the other HR activities are identified, formulated, and implemented.

2.3 The RBV Concept

The resource-based view of the firm is one of the theoretical background used in developing human resource architecture that important strategically for employee whose knowledge and skill (Lepak & Snell, 1989). Theoretical perspective of the RBV of the firm (Barney, 1991) suggests that firms developing human capital internally should be in a better position to develop resources and organizational competencies that are valuable, firm specific, appropriable and difficult to imitate because of path dependence and causal ambiguity (Neirotti, 2013/14). According to resources-based perspective, firms attempt to develop and exploit distinctive competencies based on physical, organizational and human capital resources under their control. The emphasis on human capital resources leads to understand

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the role of strategic human resources management in gaining competitive advantage (Wright, et al., 1995). In resource-based terms, HR process and practice may be valuable because they are socially complex and historical sensitive, that competitor may not able to replicate the diversity and depth of linked processes that sustain them, and it takes time to build high levels of workforce trust. (Boxall, 1996)

Central to understanding of RBV are the definitions of resources, competitive advantage, and sustained competitive advantage. (Wright, et al., 1994). According to Wernerfelt (1984), a resources is anything which could be thought of as a strength or weakness of a given firm, whose tangible assets which are tied semi permanently to the firm. According to Barney (1991), resources include all assets, capabilities, organizational process, firm attributes, information, knowledge, controlled by a firm that enable the firm to conceive of and implement strategies that improve its efficiency and effectiveness.

According to Lippman & Rumelt (1982), within RBV, a sustained competitive advantage exists only when other firms are incapable of duplicating the benefits of competitive advantage. Therefore, Barney (1991) stated four criteria must be attributable to the resource in order for it to provide a sustained capital advantage: the resource must add positive value to the firm, the resource must be unique or rare among current and potential competitors, the resource must be imperfectly imitable, and the resource cannot be substituted with another resource by competing firms.

Barney’s (1991) work on RBV was particularly influential for SHRM research in identifying the concept of

value, rareness, inimitability, and non-substitutability (VRIN). The resource-based perspective (Barney, 1991; Wernerfelt, 1984) focuses on the value, rareness, non-substitutability, and inimitability of organizational resources, including people. Human resources can be viewed as potentially valuable, rare, and non-substitutable resources because they are scare, specialized and hold tacit knowledge (Shaw, et al., 2013). Previously, Prahalad & Hamel theories about competence-oriented led to strengthen competitive approach of resource-based theory and competence-oriented based on valuable resources, rare, inevitable imitation and non-alternative were considered experts (Gilaninia, et al., 2013).

According to the RBV, performance differences across firms can be attributed to the variance in the firms’ resources and capabilities. Resources that are valuable, unique, and difficult to imitate can provide the basis for firms’ competitive advantage. In turn, these competitive advantage produce positive returns (Hitt, et al., 2001). From RBV approach, we can consider that the human resource, or human capital, in which the firm invest has the potential to create superior performance. The RBV points out that firms can develop sustained competitive advantage only by creating value in a way that is rare and difficult for competitors to imitate. RBV argument is that bundles of resources lies at the heart of a firm’s competitive advantages (De Saa-Perez & Garcia-Falcon, 2002).

2.3 Core competence

Strategy is a specific pattern of decision and action that managers take to sue core competences to achieve a competitive advantage and outperform competitors (Jones, 2004). He added one another level of

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strategy that is global expansion strategy. Global expansion strategy refers to a plan which involves choosing the best strategy to expand into overseas markets to obtain scarce resources and develop core competences.

In year 1991, the resource-based theory was considered as a basis to achieve organizations to sustainable competitive advantage (Gilaninia, et al., 2013). It since Barney’s

(1991) article outlining the basic theoretical model and criteria for sources of sustainable competitive advantage, the RBV has become by far, the theory most often used within SHRM, both in development of theory and rationale for empirical research (Wright, et al., 2001). Coincides with this theory, Prahalad & Hamel (1990) theories about competence-oriented led to strengthen competitive approach of resource-based theory and competence-oriented based on valuable resources, rare, inevitable imitation and non-alternative were considered experts (Gilaninia, et al., 2013). They argued that competitive advantage stems, over the long run, from building core competencies in a firm which are superior to those of rivals. (Boxall, 1996). The work of Prahalad and Hamel was considered as an expression of the RBV.

The convergent of RBV and SHRM: potential mutual contribution. Snell stated RBV has also effectively put people on strategy radar screen. Strategy researchers increasingly acknowledge human capital, intellectual capital and knowledge as critical components. There is sufficient evidence to converge that components and SHRM. There is an opportunity for interdisciplinary studies that provide significant leaps

forward in the knowledge base with the concept such as core competencies, dynamic capabilities, and knowledge-based views of the firm as potential bridges between HR and strategy literatures.

3. DISCUSSION 3.1 Integrating Strategy and SHRM

within RBV Based on literature review from some research in SHRM and RBV, and discussing the concept such as core competencies, dynamic capabilities, and knowledge-based views of the firm as potential bridges between HR and strategy, Wright et al., (2001) proposed a model for integrating strategy and SHRM. The model is depicted in Figure 1 A Model for Integrating Strategy and Strategic HRM (Wright, et al., 2001).

According to Prahalad & Hamel (1990), core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies, and that involve many level of people and all functions. Eisenhardt & Martin (2000) defined dynamic capabilities as the firm’s processes that use resources – specially the process to integrate, reconfigure, gain, and release resources – to match and even create market change. Dynamic capabilities thus are the organizational and strategic routines by which firms achieve new resource reconfiguration as market emerge, collide, split, evolve, and die. Grant (1996) argued for a knowledge-based theory of the firm, positing that firms exist because they better integrate and apply specialized knowledge, moreover Liebeskind (1996) believed that if they better protect knowledge from expropriation and imitation.

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Figure 1 A Model for Integrating Strategy and Strategic HRM (Wright, et al., 2001)

3.2 Conceptual Framework of IWE According to Beekun (1997) Islamic Work Ethic (IWE) may be define as the set of moral principles that distinguish what is right from what is wrong in Islamic context. While Rizk (2008) stated that IWE is an orientation towards work (Ali, 1992) which is rooted in Islamic sharia principles (Rizk, 2008) and approaches work as a virtue or a valuable asset (Abdi, et al., 2014) in human’s life. Ali (2005) add that IWE is originally based on the Quran and teachings (saying and practice) of the Prophet (Abdi, et al., 2014), who denoted that hard work caused sins to be absolved and the legacy of the four Caliphs of Islam, who led the Islamic nation after the prophet’s death (Rizk, 2008); (Rokhman, 2010) and (Marri, et al., 2013). The IWE is an orientation that shapes and influences the involvement and participation of believers in the workplace (Ali & Al-Owaihan, 2008). According to Ahmad (2011) the Islamic work ethics includes economic, social, and moral elements (Abdi, et al., 2014). Islamic

work ethic advocates the importance of performing one’s work to the best of ability for the pleasure of God (Mohamed, et al., 2010).

According to Ahmad (1976), IWE does not stand for life denial but rather for life fulfillment that holds business motives in the highest regard (Sarwar & Abugre, 2013); (Hayati & Caniago, 2012); (Rizk, 2008) and (Ali & Al-Owaihan, 2008). IWE competencies is ability to demonstrate the nature and grounds of morality, including moral judgments, standards, and rules of conduct for organizational commitment (Sa'ari, et al., 2013).

The concept of Islamic work ethics (IWE) is a body of literature that deals with work related values, attitudes and job commitment. The IWE traces its origin to the Quran and the teachings of the Prophet Muhammad (PBUH).

For all there will be degrees (or ranks) according to what they did. And your Lord is not unaware of what they do.

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Al Quran Surah Al An’am (6) verse 132 (Dar-us Salam Publications, n.d.).

This means all true believers should engage and be committed to their work faithfully (Sarwar & Abugre, 2013).

The emersion of Islamic Work Ethic (IWE) is a response to the issue of religious values relation to economic, management and business that has become popular since decades. Work ethic so far much carried out in western countries especially in America and Europe, that indeed focus on Protestant Work Ethic (PWE) as proposed by German sociologist Max Weber (1864-1920) and then tens of research conducted with this concept (Ahmad, 2011). Although Weber emphasizes hard work as one of Protestant Work Ethic’s distinctive characteristics, Islam’s view on work ethic is not much different that Protestant and Catholic views (Zulfikar, 2012). Nevertheless, different religion and beliefs have their own work ethics that shape the behavior of their believers (Kamaluddin & Abdul Manan, 2010). Abbas Ali (1988) has tried to scale another religious values work ethic namely Islamic Work Ethic. After he searched literatures and screened the Islamic expert statement, he used 46 items to scale IWE (Ali, 1988). Based on this scale he then did research in some Arab countries (most in Saudi Arabia). He adopted a short version (17 items) IWE questionnaire (Ali, 1992).

Islamic Work Ethic conceptual framework is based on four primary concept of IWE as described by Ali (2005), Ali & Al Owaihan (2008) that has summarized by Kamaluddin & Abdul Manan (2010). The four elements are effort, teamwork, transparency and morally responsible conduct.

Effort is the necessary ingredient for serving self and society (Ali & Al-Owaihan, 2008) and (Sa'ari, et al., 2013). People must do their best to achieve their living standard for themselves and their family, as well as to solve social and economic problems. Significantly, work in Islam is held in the highest regard (Ali & Al-Owaihan, 2008) and (Kamaluddin & Abdul Manan, 2010). Islam emphasizes that exerted effort of individual should be linked to itqan, istiqamah and tawakal (Kamaluddin & Abdul Manan, 2010). Itqan refers to knowledgeable and consciousness in effort based on ilm (knowledge) and tadabbur (discover God’s bounties). Istiqamah refers to consistency and passion for excellence that must be accompanied by sabr (patient). Tawakal refers to surrendering oneself to Allah the Almighty solely, after doing itqan and istiqamah, as a final step of effort.

The differences in all Allah’s creatures make people dependent each other that will lead to team work among individuals. Team work can cause competition. Individuals must compete fairly and honestly and trade with good intentions (Ali & Al-Owaihan, 2008) and (Sa'ari, et al., 2013). Competition in team work must be execute fairly, justly and honestly. In Islam, the competition can be realized through the concept of mu’awamah, ‘adl and syura (Kamaluddin & Abdul Manan, 2010). Mu’awamah means to cooperation among individuals to encourage the goodness and discourage badness. ‘Adl (justice) refers to trusty action wherever and whenever that will lead to honesty, moderation and generosity. Syura means collective mutual consultation and empowerment with the spirit of oneness that will strengthen the effort

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and relationship among team members. Islam encourages effective and efficient competition through the spirit of brotherhood (ukhuwah). That the reason why competition and team work can be separate each other.

Transparency is prescribed as a moral responsibility, based on mutual understanding that faulty conduct and act of deception construct justice and limit freedom of action in the market place (Ali & Al-Owaihan, 2008). Transparency could be interpret in many ways, one important attribute of it is honesty (Kamaluddin & Abdul Manan, 2010). Transparency and honesty have close hidden meaning, when someone must tell the truth although it is hard and always disclose anything. Transparency where trade and transaction should be conducted in an environment of trust and openness (Sa'ari, et al., 2013).

When Allah would have created a man, and declared He would appoint man as His vicegerent (khalifah) in the earth. Man has to manage the earth for well-being, so that he must has mental and physical capabilities and commanded to be trustworthy person. As trustee, one should render the trust back to the owner. He always tries to do his best to complete task. He will emphasize on excellence and good quality of work as he realized that such attitude is promoted (Kamaluddin & Abdul Manan, 2010). A trustworthy person will keep the trust responsibly and faithfully and also a self-reliant individual that will constantly work hard to fulfill responsibility. That the reason why Kamaluddin & Ab.Manan add trustworthy terminology to morally responsible conduct as the fourth concept in IWE. Morally based conduct is an essential precondition for sustaining prosperous economy and a vital business community

(Sa'ari, et al., 2013). Nasr (1984) state that in Islam the ethical is not separated from the economic (Ali & Al-Owaihan, 2008).

Based on the four pillars of IWE, there are some implication for the strong commitment to the IWE among Muslim managers. First, there is an emphasis on hard work, meeting deadlines and persistence. Second, work is viewed not as end in itself, but as a means to foster personal growth and social relation (Hayati & Caniago, 2012). Third, dedication to work and work creativity are seen as virtuous. Forth, justice and generosity in the workplace are necessary conditions for society’s welfare. Fifth, business transparency is not only the good practice, but also virtue. Finally, the IWE place more emphasis on intention than on result (Ali & Al-Owaihan, 2008).

Thus, relying on the IWE literature and considering Islamic teaching, regardless of different branches in Islam, we provided a theoretical construct for the IWE consisting of 7 dimensions of work intention, trusteeship, work type, work result for Islamic Ummah, justice and fairness, cooperation and collaboration, and work as the only source of ownership (Chanzanagh & Akbarnejad, 2011). Meanwhile Sa’ari stated four dimension of IWE: deeds and work intentions, justice and fairness (generosity), cooperation and collaboration, trusteeship (Sa'ari, et al., 2013)

IWE scale focus is on the view that (1) work enables man to be independent and is a source of self-respect, satisfaction and fulfillment; (2) success and progress in the job depend on hard work and commitment to one’s job; (3) commitment to work also involve a desire to improve the community and

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societal welfare (Ali, 1992). The IWE construct captures the essence of work ethic in Islam. It highlights that work is an obligatory activity and a virtue in light of the needs of human being and the necessity to establish equilibrium in one’s individual and social life. Work enables a person to be independent and is a source of self-respect, satisfaction and fulfillment. Success and progress on the job depends on hard work and commitment to one’s job. Commitment to work also involves a desire to improve the community and societal welfare. Society would have fewer problems if individuals were committed to their work and avoided unethical methods of wealth accumulation. Creative work and cooperation are not only a source of happiness, but are considered noble deeds as well (Ali & Al-Owaihan, 2008).

It can be inferred that IWE has some basic aspects such as:

Hard work/effort, creativity for success

Team work

Good manner: honesty, dedication, commitment, justice, generosity

Good Moral

Work to personal and social life

Intention

3.3 Comparing IWE and PWE According to Ali (1992), the Islamic ideology for workplace has many similarities with the ideology that was propagated by Weberian Protestantism (Ahmad, 2011). Yousaf (2000) noted that IWE and PWE have many similarities. For example, both focus on working hard, commitment to the organization, creativity in work

and cooperation amongst employees during working hours.

Nevertheless, in terms of work, Islam differs from both religions. In Judaism, for example, there is an emphasis on the specific and relevant and on the role of man on earth. In contrast, Christianity places greater emphasis on general and unspecific guidelines in life and mostly on spiritual aspects (Ali and Gibbs, 1998). Islam, on the other hand, provides detailed regulations of human life and at the same time maintains the spiritual perspectives implied in Christianity (Ali & Al-Owaihan, 2008).

The core of IWE is profoundly different from the Protestant Work Ethic. Even though both of them place an emphasis on work involvement and work as a divine calling, IWE encompasses dimensions that are not explicitly addressed in PWE. The value of work in Islam work ethics is derived from accompanying intentions rather than from the result of work (Kamaluddin & Abdul Manan, 2010) In particular, there is an emphasis in IWE on intention, rather than outcome, as a measurement of morality (Ali & Al-Owaihan, 2008).

The IWE, unlike the PWE, stresses social aspects in the workplace and duties toward society (Ali, 1992). Unlike PWE, the fundamental principles of IWE are based on the concepts of tawhid, khilafah, and ‘adl. (Kamaluddin & Abdul Manan, 2010).

However, the western concept of work ethic (PWE) is a case of doctrines that follow the behavior, IWE on the other hand is a case of behavior that follows doctrines in the Quran and Sunnah. In other words, the teaching of Islam emphasizes that it is the Islamic value that dominates

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behavior and no other way around (Kamaluddin & Abdul Manan, 2010).

Weber (1904:1976) in investigating on religious culture and economic status of Protestant attributed hard working, contentment, gratification delay, and wealth compilation of Protestant to their religious background, these item can be classified as PWE concepts (Chanzanagh & Akbarnejad, 2011).

Based on discussion of some scholars such as Arslan (2000 & 2001), Jones (1997), R. Banks (1998), it can be inferred that PWE stress on:

hard work for success work as an end itself money and time saving internal locus of control good behavior (honesty, loyalty,

commitment) Based on that analysis, it can be summarized the communalities between IWE and PWE are in term of hard work and good behavior. And, the differences between them in term of work meaning, use of money and time and internal locus of control, team work, social life, good moral, and intention.

Table 1 the Differences between IWE and PWE, shows the differences.

According to PWE, work means the work and an end in itself, and achieve the success through the work, therefore time and money must be used as well as possible, and one should have a good internal locus of control. This is in accordance with the Jesus teaching. So, work seem like only have a material or worldly

meaning. While in IWE, work is a means for personal and social achievement, depend on one’s intention, and for that one should always apply good moral. In IWE work is not only have a material or worldly aspect, but the most important thing is the hereafter perspective. Because, that is an Islamic teaching that based on Quran and Sunnah.

Table 1 the Differences between IWE and PWE

3.4 Integrating Work Ethic and SHRM There is a lack of discussion that integrate work ethic with SHRM. Human resource management as it is practiced is concerned with distancing, depersonalizing, and dissembling, and acts in support of the ‘moral’ requirements of business, not of people (de Gama, et al., 2012). Strategically, moral issues should be included in human resource management. Therefore ethics become important. Ethics is the study of standard of conduct and moral judgment, the standard of right

conduct (Dessler, 2009). Ethics deals with the distinction between what is right and wrong (Sa'ari, et al., 2013). It is accordance that ethics is a set of rules or principles that defines right and wrong conduct (DeCenzo & Robbins, 2010),

In the other side, in SHRM, RBV approach can be used to attain sustained competitive advantage whether the future is predictable. More even recently, the future is increasingly unpredictable. SHRM scholars then used core competence

Islamic Work Ethic Protestant Work Ethic

Work for personal and social

Work as an end itself

Intention Use of time and money

Good moral Internal locus of control

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approach to deal with the unpredictable future. According to Hamel & Prahalad (1994) core competence is a bundle of skills and technologies that enables a company to provide a particular benefit to customer, it represent the sum of learning across these resources. Wright et al., proposed that this core competence arises from the combination of the firms stock of knowledge, and the flow of this knowledge in a way that is valuable, rare, inimitable and organized. This provides a framework for more specifically exploring the human component to core competencies and provided a basis for exploring the linkage between people management system and core competencies (Wright, et al., 2001).

Transformation flow between traditional RBV to core competencies approach in term of 5-P Model can be through: policies that expressed as shared values, programs that articulated as HR strategies, and practices for leadership, managerial and operational role in organization. These three Ps guarantee the use of certain skill and ability of human resource. Presumably, this flow should also through philosophy that expressed in statement defining business values and culture, and processes for the formulation and implementation of other HR activities. These two Ps would support the 5-P Model from attitude side.

In our opinion, to the field of SHRM, a new proposition should be considered to be in; that is work ethic. Work ethic will strengthen HR philosophy form the top of HR activities strategically, and HR processes from the bottom of HR activities practically. So that, if traditional flow from RBV to core

competencies is only through three of five of 5-P Model, work ethic make it complete with another two Ps. Work ethic will bind the 5-P Model strategically and operationally, in order for organization take to sue core competences to achieve a competitive advantage and outperform competitors.

It has been widely accepted that ethical values are intimately associated with religious values. The individual's perception of work ethics is produced by their religious faith as well as cultural values. Porter (2010) stated that every nation and culture around the world has its own history and conditions that influence the meanings given to the work in people's life. Culture along with religious background has an impact on the people's ethical thought and behaviors. (Abdi, et al., 2014). The emersion of Islamic Work Ethic (IWE) is a response to the issue of religious values relation to economic, management and business that has become popular since decades. In this paper we used IWE to develop new approach in integrating work ethic with SHRM, rather than the traditional western work ethic called Protestant Work Ethic (PWE). IWE stresses work for personal and social achievement, depend on one’s intention, and apply a good moral. While PWE assumes work as an end itself, use of time and money, and internal locus of control. It seems like IWE has better explanation in understanding good attitude of human resource. Therefore IWE is more appropriate to use as philosophy and process of human resource.

In this point, based on above theoretical frameworks, using the 5-P SHRM, we propose a new approach in integrating IWE to SHRM.

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Figure 2 Integrating Islamic Work Ethic with Strategic Human Resource Management

4. CONCLUSION As a closing remark, we hope this new proposed model will attract more scholars and practitioners in human resource management field of study to discuss further. We propose the proposition that IWE could strengthen 5-P SHRM Model in developing of core competence of the firm to face unpredictable future challenges.

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ISSN 2302-786X


Factor Analysis Supporting Implementation SIMDA and Its Effect

on Quality of Financial Statements in SKPD (Research on SKPD

Local Governments Tegal)

Yeni Priatna Sari1, Mohammad Alfian2, Bahri Kamal3

Lecturers in 3rd Diploma of Accounting Study Program

of Polytechnic Harapan Bersama Tegal

Jl. Mataram No. 9 Tegal

Telp (0283) 352000, Fax (0283) 353355, Hp. 081932251090

[email protected] ; [email protected]

Abstract

This study aims to identify the factors supporting the implementation SIMDA SKPD and the

influence on the quality of implementation SIMDA financial statements at Tegal district

governments.This study was conducted based on the condition on SIMDA implementation, it is

evidenced by the low quality of accounting information. The low quality of accounting information

can be found on the Local Government Finance Report (LKPD) that received an unqualified opinion

(WTP) of the results of an audit conducted by the BPK. The population in this study is the Local

Government sectors in Tegal regency. The sample in this study were taken by purposive sampling

method. The questionnaire can be further processed by 54 pieces. The hypothesis was analyzed using

Structural Equation Model (SEM) with SmartPLS 2.0M3. The results of this research is the support

of top management, data quality and knowledge level of human resources SIMDA has positive effect

on the implementation of the SKPD in Tegal regency. Based on the research conducted is also

known that the implementation SIMDA at SKPD in kabupaten Tegal has positive effect on the quality

of financial reporting

Key Words: implementation SIMDA, SKPD, quality of financial statements

1. INTRODUCTION

Generally the Public sector

organizations in Indonesia have lack

of the quality of accounting

information. Poor information can not

be relied upon as consideration to

make a decision after the reporting

period (Bastian, 2010). The low

quality of accounting information

generated by local governments

proved by the local government

obtain unqualified opinion (WTP) of

the results of the audit of the Local

Government Finance Report (LKPD)

conducted by BPK. This can be seen

from the summary of the results of the

first half of 2012 issued by the BPK

in September 2012 the release

information that is only 12% and 25%

kabupaten city or as many as 36

counties and 21 cities of 313 counties

and 85 cities in LKPD audited by

BPK obtain WTP opinion. According

BPKP not obtaining the WTP opinion

beberpa caused by factors, such factor

is the weakness of the internal control

system, un organized asset in

countries / regions, financial

statements disclosure are not in

accordance with Government

Accounting Standards (SAP), the

weaknesses in the system of

preparation of financial statements,

and inadequate competence of human

resources in the financial management

of local governments. LPKD is a

combination of the financial

statements produced by SKPD -

SKPD that exist in the region, in other

words if LKPD less good quality it is

a reflection of the lack of good quality

SKPD lapororan kuangan produced in

the area. The government and its

related parties are trying to improve

the quality of the resulting financial

statements, it is reflected by the

issuance of PP 71 in 2010 to replace

PP 24 in 2005 to transform the base

mailto:[email protected]

mailto:[email protected]

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into the accrual basis of accounting in

order to improve the quality of

accounting information contained in

the financial statements.

Accounting information system is a

tool used by management in the

organization to provide the added

value that generate competitive

advantage and as a control device that

generates internal

information. Rostami and Mongadam

(2010) states that information

technology can be used as an

excellent support for the organization

in carrying out the strategy that has

been set. At the moment SIA

integrated with TI used by

organizations in the existing data

processing is not going well can

produce output which can weaken the

performance of the organization. Devi

(2013) states that the success of an

enterprise information system

depends on how the system is run, the

system convenience for the wearer,

and the utilization of the technology

used.

The application of accounting

information system at the local

government stipulated in the

Regulation of the Minister of Internal

Affairs No. 13 of 2006 on Regional

Financial Management

Guidelines. Regulation of the

Minister of Internal Affairs No. 13 of

2006 has the objective which is to

improve the information

generated. BPKP in this case give a

positive response by developing a

computer application program named

SIMDA (Local Financial

Management Information System),

which was introduced on 29 August

2006. This application was developed

by BPKP to assist financial

management both at SKPKD (as

entities reporting) as well as at the

level of SKPD (accounting

entities). This application program is

expected to provide more benefits to

the local government in implementing

the financial management

area. However, based upon initial

observations conducted by

researchers in the environment SKPD

in Tegal district government found

that:

a. SIMDA not fully used optimally,

which led to the adoption SIMDA

by SKPD can not help maximal

to achieve the goals organization

governments.

b. The lack of preparation of SKPD

on applicating the integrated

financial software such as

SIMDA to do accounting

procedures.

c. There is no certainty about

the software that is used as the

standard (default software) in

accounting procedures, which led

to still diverse forms of financial

statements produced by SKPD, it

is obviously difficult for users of

the financial statements in

decision making.

d. The ability to master the

operation of SIMDA uneven in

each SKPD,

this software requires users not

only well versed in accounting

but also in the use of computers.

e. There are still many SKPD

employees who prefer to use the

manual paper work or with

Ms.Excell to complete its work

which is considered easier than

using SIMDA.

Based on this background, researchers

interested in conducting research with

the title “Factors Analysis Supporting

Implementation SIMDA and The

Effect on Quality of Financial

Statements in SKPD (Research on

SKPD in Local Governments Tegal)”

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2. PROBLEM FORMULATION

SIMDA implementation of the local

government as a public sector

organization is expected to improve

the quality of the accounting

information contained in the financial

statements in the local government

environment. With the increasing

quality of financial reporting is

expected that the accounting

information can be used as decision

making and as a form of management

accountability for the use of the

resources available in the

organization. Based on the

background of the problem, we

propose the following research

problem:

a. How significant is the quality of

human resources effecting on the

SIMDA implementation?

b. How significant is the data

quality effecting on the

implementation SIMDA?

c. How significant is the

management support effecting on

the implementation SIMDA?

d. How significant is the

implementation SIMDA effecting

on the quality of financial

reporting at SKPD?

3. BENEFITS OF RESEARCH Researchers conducted this study with

the aim to provide the benefits: To

determine the factors supporting the

implementation SIMDA SKPD and

examine their effect on the

implementation SIMDA Tegal

regency administration to the quality

of the resulting financial statement on

the local government Tegal.

4. LITERATURE AND

DEVELOPMENT

HYPOTHESIS 4.1 The Effect of Human Resources

Toward Quality Implementation

SIMDA. According to Devi (2013) based on its

findings stated that the successful use

of software depends on the

technology itself and the individual

skill levels operate. In addition to the

training activities could build the

confidence of the user so as to

anticipate the onset of anxiety and

rejection from the user to the new

system.

User understanding of information

technology determines the success of

an information system, otherwise

ignorance or anxiety new user to the

system that could lead to failures in

the use of information

technology. Improved understanding

of the users of information systems

also affect success in utilizing

information technology (Sunarti and

Nur, 1998). Hargo research results

(2001) states that the level of

understanding of information

technology to significantly affect the

implementation of information

technology. Devi (2013) states that

the level of user understanding affect

the successful implementation of

accounting information systems. Thus

the proposed hypothesis is:

H 1: Human Resources has the

Positive Impact Against

Implementation SIMDA.

4.2 The Effect of Data Quality Toward

Implementation influence SIMDA.

The whole process of generating data

(collection, storage, and use of data)

should be done fine so that the quality

of the data used can be properly

processed. Lee and Strong in Al-

Hiyari, et al (2013) states that the data

production process must run properly

in order to achieve quality results, in

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line with that Rahayu (2012) states

that quality data can affect the

output of the SIA. Xu (2009) stated

that the quality of the output SIA

relies on the existing input. Thus the

proposed hypothesis is:

H 2: The Quality of Data has the

Positive Impact Of Implementation

SIMDA.

4.3 The Effect of Top Management

Support Toward The


According to Cooper (2006) a

management commitment is the

involved and maintain behavioral

management in the achievement of

organizational goals. Improved

management commitment to the

development of accounting systems

will have a direct impact on the

quality of the implementation of the

SIA, Thong, et al. (1996) states that if

the level is low, top management

support top management may not be

involved in aspects of the

implementation of the SIA as (in

response to the recommendation of

consultants, or SIA monitor the

development project), they found that

increasing the effectiveness of

management's commitment

information system because they

provide the resources needed for

development projects SIA. Rahayu

(2012) examined the effect of

management's commitment to quality

data and SIA, he found that

management commitment and quality

data together have a sufficient effect

on Accounting Information Systems,

although the contribution of

management commitment to quality

data that needs to be improved, he

also found a lack of top management

support for training and funding for

the development of the resource. Thus

the proposed hypothesis is:

H 3: Top Management Support has

the Positive Impact Of


4.4 The Effect of Implementation

SIMDA Toward the Quality of

Financial Statements

According to Grande, et al. (2011)

SIA is defined as a tool when put in

the field of information technology

and systems (IT) designed to assist in

the management and control topics

related to economics-finance

companies. In line with this, Salehi et

al. (2010) stated accounting

information systems improve

individual performance in producing

quality financial statements. Xu

(2003) stated that the quality of the


statements that bad can have adverse

effects on decision-making, such as

errors in the information on the

inventory may lead to wrong decision

making by managers so that excess

inventory or supplies that have a

severe impact on the company

profitability and customer

satisfaction. Quality of the


statements can be evaluated by four

attributes accuracy, timeliness,

completeness and consistency, in line

with Mc Leodet al. (2007) stated that

the quality of the information

measured by the four dimensions of

relevance, accuracy, timeliness and

completeness. Thus the proposed

hypothesis is:

H 4: Implementation SIMDA has the

Positive Impact on the Quality of

Financial Statements.

5. RESEARCH METHODS 5.1 Data Types Source of data in this study are

primary data and secondary data

sources. According to Hartono (2013)

states the primary data source is a

data source that directly provide data

to data collectors, and secondary data

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are data sources that do not directly

provide the data to the data

collector. Primary data in this study in

the form of opinions and information

obtained from the respondents by

providing questionnaires that had

been developed to the

respondent. Questionnaires will be

given directly to the respondent so

that researchers can explain the

research to be done and how to fill out

the questionnaire. The bustle of the

respondents caused the respondents

require a short time to do filling the

questionnaire.

5.2 Population Research Population studied in this research is

the Local Government SKPD in Tegal

Regency that uses SIMDA in the

preparation of financial

statements. The determination of this

population is expected to represent a

larger population, so the results of this

study can be generalized

well. Another factor affecting the

determination of the population in this

study is limited time owned by the

researcher.

5.3 Sempel Research Samples taken by the Judgment

purposive sampling method. Criteria -

criteria in selecting sample namely:

a. SKPD in the local government

Tegal.

b. SKPD in the local government

Tegal who have financial or

accounting section.

c. SKPD in the local government

Tegal which implementing

SIMDA in the preparation of

financial statements.

5.4 Data Collection Technique Data collection techniques used in

this research is the survey method, the

method of data collection and analysis

in the form of opinions from the

studied subjects (respondents)

through a question-and-answer

(Hartono, 2013).

5.5 Data Analysis Latan and Ghozali (2012) stated that

the analysis of research data is a part

of the testing process the data after

the selection phase and data collection

study. Analysis of the data in this

study using Partial Least

Square (PLS). PLS can be used on

any kind of scale of data (nominal,

ordinal, interval, ratio) and the

assumption that a more flexible

terms. PLS is also used to measure

the relationship of each indicator with

konstruknya. Additionally, the PLS

can test the structural model

of bootstrapping against

nature outer and inner models

models. Because in this study using

indicators to measure each

konstruknya, and also measurement

model is structural, it was decided to

use PLS.

6. CONCLUSION RESULTS AND

DISCUSSION 6.1 Return Questionnaire Questionnaires were returned is as

much as 54 questionnaires from 54

questionnaires distributed. From

questionnaires that have been

returned, the entire questionnaire can

be used as the questionnaire

completed by the

respondent. Questionnaires which can

be further processed around 54 pieces.

6.2 Data Analyst

Designing Model Measurements

(Outer Model)

This stage is used to determine the

validity and reliability of connecting

indicators with latent

variables. Indicators in this study was

reflective as indicators of latent

variables affecting the indicator for

that use 3-phase measurement

according to Latan and Ghozali

(2012), namely:

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a. Discriminant Validity

Evaluation in this research was to see

at the square root of average variance

extracted (AVE). Model

measurements assessed by

measurement of cross loading the

constructs. If the correlation

constructs with each indicator is

larger than the size of the other

constructs, then the latent constructs

predict better indicator than the other

constructs.

If the value is higher than the value of

correlation between constructs, then

good discriminant validity

TERC apai. According to the 2012

Latan and Ghozali highly

recommended if AVE greater than

0.5.

Here is the formula for calculating the

AVE:

Where is the loading factor

(convergent validity), and var

( = 1- . Fornnel and Larcker in

Latan and Ghozali (2012) states that

these measurements can be used to

measure the reliability and the results

are more conservative than

the composite value reliabity (pc).

Based on the results of data

processing is done with the help of

software SmartPLS 2.0 M3 which can

be seen in Table 1 shows that the

value of AVE for all constructs of>

0.50. So as to meet the requirements

of convergent validity.

b. Composite Reliability

To determine composite reliability, if

the value of composite reliability pc

> 0.8 can be said that the construct

has a high reliability or reliable and>

0.6 be quite reliable (Chin in

southern and Ghozali 2012). Here's

the formula for calculating

the composite reliability ():

Insert Table 2

Based on the results of data

processing is done with the help of

software SmartPLS 2.0 M3 which can

be seen in Table 2 shows that the

value of Composite Reliability for all

constructs of > 0.70. It can be

concluded that all indicators of the

construct is reliable or in other words

meet the reliability test.

c. Cronbach Alpha

In PLS, reliability testing is

reinforced by the Cronbach

alpha where every answer tested

consistency, Cronbach's alpha in said

well if the 0.5 and 0.3 if said enough.

Insert Table 3

Cronbach alpha values generated all

very well construct such > 0.7 So that

it can be concluded that all indicators

reflective construct is reliable or meet

the reliability test. However,

according to the southern and Ghozali

(2012) Cronbach alpha generated by

the PLS bit of an underestimate so it

is advisable to use the Composite

Reliability or Dillion-Goldstein's.

Designing a Structural Model (Iner

Model)

Structural models were evaluated

using the R-square (R²) to construct

the dependent, Stone-Geisser Q-

square test for predictive relevane and

t test and the significance of the

coefficient parameters of structural

lines. R² can be used to assess the

effect of latent variables independent

of the dependent latent variable does

have a substantive effect.

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Insert Table 4

From Table 4 it can be seen the value

of R-Square for SIMDA variables

show results 0.786115 This means

support of top management, data

quality, and the level of human

knowledge SIMDA affect the

implementation of 78.61 percent, it

shows that 21.39 percent factor or

other variables that support the

implementation of SIMPDA at SKPD

in TEGAL district government. While

the R-square value for the variable

quality of the Financial Statements of

.679233 it shows that SIMDA affect

the financial statements amounted to

67.92 percent, so that there are 32.08

percent of the variables or other

factors that affect quality of financial

statements.

Construction Line Diagram

Insert Figure 1

Conversion Chart Path to Equation

System

a. Iner Model

Inner Model specification specifies

the relationship between latent

constructs with other latent

constructs.

Inner Equation Model:

η 1 = γ 1 + γ 2 ξ 1 ξ 2 + 3 + γ 3 ξ ς 1

η 2 = β 1 η 1 + ς 2

Description:

η: endogenous latent variables.

γ: Coefficient of influence of

exogenous variables on endogenous

variables.

ξ: latent exogenous variables.

β: Coefficient influence endogenous

variables on endogenous variables.

ς: Error models.

b. Outer Model

Outer Model specification specifies

the relationship between latent

constructs and indicators.

Outer Equation Model:

Where:

x and y = matrix of manifest variables

associated with the latent exogenous

and endogenous.

and = coefficient matrix.

and = matrix of outer models residue.

Hypothesis Testing (Resampling

bootstrapping)

Based on the goals of the research, the

design hypothesis test that can be

made is the design hypothesis testing

in this study are presented based on

the research objectives. Confidence

level used is 95 percent, so that the

level of precision or inaccuracies limit

of () = 5 per cent = 0.05. And produce

t-table value at 1.98 (southern and

Ghozali, 2012).

So according to (Latan and Ghozali

2012):

If the value of t-statistic is smaller

than t-table [t-statistic <1.98],

so Ho accepted and Ha rejected.

If the value of t-statistic greater than

or equal to the t-table [t-statistic>

1.98], then Ho is rejected

and Ha accepted.

Insert Table 5

Based on the above path

coefficients can be seen that only the

top management support no

significant effect on SIMDA, while

the quality of input data and the level

of knowledge menegenai SIMDA

positive effect on the implementation

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SIMDA. T-statistics from the

influence of top management support

to the implementation of SIMDA

4.043497> 1.98 , it means that the

management support positive effect

on the implementation of the SKPD

in lingkunagan SIMDA Tegal district

government. The results are

consistent with Cooper

(2006);Rahayu (2012); Al-Hiyari

(2013). T-statistics from the influence

of the quality of data on the

implementation of SIMDA 4.530046>

1.98, it means that the quality of data

input positive effect on the

implementation SIMDA. The results

are consistent with Xu

(2009); Rahayu (2012); Al-Hiyari

(2013). T-statistics of the effect of the

level of knowledge of the

implementation SIMDA users

2.822337> 1.98, it means that the

level of knowledge about the users

SIMDA positive effect on the

implementation SIMDA. The results

are consistent with Hargo

(2001); Devi (2013). T-statistics of

influence SIMDA Implementation of

the Quality of Financial Statements

20.731692> 1.98, it means that the

implementation SIMDA positive

effect on the quality of financial

statements or LKPD generated by

SKPD. The results are consistent with

Rahayu (2012); Al-Hiyari (2013).

7. CONCLUSION,

LIMITATIONS OF

RESEARCH, AND

SUGGESTIONS 7.1 Conclusion Good top management support to the

implementation of SIMDA is needed

in order to improve the quality of

implementation SIMDA due. This

study proves that top management

support affect the implementation

SIMDA.

Data quality affected to the quality of

implementation SIMDA because if

the quality of the data used as input

data is less good, it will affect the

quality of implementation

SIMDA. This study also proved that

data quality has positive influence on

implementation SIMDA.

The quality of human resources

greatly affect the implementation

SIMDA because if the quality of

human resources that operate SIMDA

not qualified then it will be bad for

the implementation SIMDA vice

versa. This study proves that the

positive effect on the quality of

human resources SIMDA

implementation.

Implementation of good SIMDA will

produce better quality financial

statements, but if the implementation

is not good done SIMDA will produce

quality financial reports that are less

well too. This study proves that the

implementation SIMDA affect the

quality of financial reporting.

Based on the research results it can be

concluded that in order to obtain good

quality reports required keangan good

SIMDA dikarenaka implementation

process of preparing financial

statements using SIMDA and that the

implementation SIMDA can work

well it needs the support of top

management, data quality and good

quality of human resources.

7.2 Limitations Research Researchers realized that this study

has some limitations, which include:

The research sample taken by the

researcher as a research object only

on the civil servants (PNS), which

works on SKPD in Tegal Local

Government, so that the results

obtained are less able to represent

civil servants (PNS), which works on

environmental SKPD other Regional

Government , Researchers restricted

sampling areas because of the limited

time and energy.

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Samples taken by the researchers is a

public sector organization, so that the

conclusions of this study are not

necessarily the same if the research

conducted at organizations in other

sectors.

Measurement of all variables of this

research is based on the perception of

respondents, which can cause

problems if the perception of the

respondents did not correspond to the

real situation. This can lead

to response bias.

7.3 Suggestion Suggestions given researchers

expected to be used for the

development of further

research. Future studies are expected

to not limit the sampling areas only

on one area only, so as to represent

the wider population. In addition, the

sample should not be confined to the

public sector organizations alone, but

expanded so as to include

organizations in other sectors.

Many factors in the implementation

of other information systems that can

affect the quality of the financial

statements, but is not used and

researched in this study. Future

studies are expected to incorporate

these factors to be studied, such as

age, sex, pegaruh working

environment, the benefits of

information systems, as well as other

factors.

Researchers also suggest not only

based on the research variables

measuring perceptions of

respondents. Collecting data in future

studies are expected not only limited

to the questionnaire alone, but can

also be done through interviews. The

presence of investigators at the time

of filling the questionnaire

respondents should also be done. This

will avoidresponse bias, since

respondents can directly ask questions

about the item that is poorly

understood.

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Attachment

Table 1 Table AVE

Results Olah data by SmartPLS 2.0

Table 2Table Composite Reliability


Table 3 Table Cronbachs Alpha


Table 4 Table R Square

Sumber: Results Olah data by SmartPLS

2.0

Table 5 Table Path Coefficients (Mean, STDEV, T-Values

Sumber: Results Olah data by SmartPLS 2.0

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Figure 1 Construction Diagram Research Line

Source: Smart PLS 2.0

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Analyze of Economic Sectors Priority in Port Area of Bungus Padang

Yosi Suryani1, Rudy Rinaldy2

1Business Administration, Polytechnic State of Padang Komplek Griya Elok Blok G1/18 Arai Pinang, Lubuk Begalung Padang

e-mail : [email protected] 2Economic Faculty, Andalas University and Department of Transportation Padang

Mata Air Street Padang

Abstract

To implement development with limited resources as a consequence have to be focused on the development of some sectors that have an effect multiplier significantly to other sectors or the economy as a whole. This article describes the area of Port Bungus Padang, not only as a pioneer transport locations, but can also be developed on priority economic sectors in accordance with the character of the area and the region, so as to support the main sectors, namely transport in Port area of Bungus. The goal of article writing is to determine the priority sectors of the economy that can be developed in the Port Area of Bungus. The analysis used is quantitative method of AHP (Analytical Hierarchy Process). The results illustrate that the sector of the economy that can be developed in this area on a priority basis is the transport and communications sector, manufacturing, services, trade, services and restaurants, electricity, gas and water supply, construction and agriculture, livestock. With these results we can conclude that in addition to the development of the Port Area of Bungus of the freight transport pioneer, there are some sectors of the economy that can be developed as a source of revenue for Padang City. Key Words: Economic sector, AHP, Port Bungus

1. INTRODUCTION Development of a region is defined as the efforts made to create growth in a region characterized by equitable development in all sectors and in all parts of the region. Economic growth can not occur simultaneously in all places and all sectors of the economy, but only at certain points and in certain sectors as well. Prioritized investments in key sectors that can increase revenue potential and the region in a relatively short period of time. An area that has the potential to grow bigger will grow more rapidly, then the area will stimulate the development of surrounding areas. For those sectors that have the potential to grow bigger tends to develop early and later by the development of other sectors with less potential.

Economic development of a region to build an economic activity that is able to grow rapidly and has a high

exposure to other sectors so as to form forward and backward linkarge. The rapid growth of the sector will encourage the polarization potential of other economic units, which in turn indirectly other sectors of the economy experienced growth.

Under these conditions, the Port Area of Bungus Padang has economic potential that can be developed and have the opportunity to serve as a sector that can provide opportunities for other sectors to flourish. The purpose of this study was to analyze the priority economic sectors that could be developed in the Port area Bungus Padang. While the contribution of the research is the development of science to the economics of the sectors that provide opportunities to be developed on an area as well as well as recommendations for the Padang Local Government on economic

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sectors that can provide local revenue source for the city of Padang.

2. THEORY 2.1 DEVELOPMENT AND

REGIONAL EXPANSION Development is based on a regional approach is intended as a planning and development activities associated between one region to the other so that the direction of development across the country in a region that needs the higher reservoir. There should be inter-regional cooperation in carrying out development activities in the area, basically have the potential economic and social characteristics are almost the same even mutually reinforcing. This cooperation is intended for regional development can be optimized through the creation of synergies on the use of the economic potential that exists. For the current development in the region based on natural resources and human resources in the area. Utilization of both these potentials that need cooperation so as to create an outcome or a greater benefit when compared to working alone (Miraza, 2005).

According to Tarigan (2005), the potential of the region in the form of gifts of nature and man's work in the past are assets that should be used for the greatest prosperity of the people in the long term and lasting. To achieve this, the utilization of the asset must be thoroughly planned carefully. There needs to be planning to give overall direction of land use that as a guide for other planning (sectoral) are partial. There are some ideas very important point, namely: (a) that the development is an ongoing process carried out in order to improve the welfare of the community, (b) that the development is an important endeavor undertaken, (c) that the development implemented plans to growth and

change, (d) that lead to the development of modernity, (e) that modernity is achieved through the development covers all aspects of society, the nation and the state, including aspects of political, economic, social, cultural, defense and security and administration.

Widodo (1999) asserted that the purpose of development of the region will only be achieved if the components concerning the activities or the utilization of regional resources, spatial planning, social change and economic growth, active, dynamic growth and development. This can be measured using benchmarks as follows: (a) the growth of Gross Domestic Product, (b) income per capita and income distribution, (c) poverty level, (d) consumption of public service facilities, and (e) the quality of the environment. To assess the success of the division of a country's economy is based on four criteria, namely: (a) the utilization of labor, (b) poverty reduction, (c) policy for distribution of income, and (d) an increase in labor productivity.

2.2 ECONOMIC GROWTH AREAS Economic growth in the region is people's income overall increase occurring in the region, which is the entire value added that occurs (Sjafrizal, 2009). Revenues region illustrates the remuneration for the factors of production are operating in the area, which roughly describe the prosperity of the area. The same sources say that economic growth is the increase in output per capita preformance long term. That growth must be sourced from the internal processes of the economy.

This provision is of particular interest in the economic territory, because it could be an area of growth, but the growth was created because of the

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many aid / injection of funds from the central government and the growth was halted when the cash injection is stopped. Thus, to support the growth of a necessary consequence of the high region between communities as actors in the economy by the government as a policy stakeholders in development.

3. METHODOLOGY The research was conducted at the Port Area of Bungus with an area of 2.2 ha. The location lies in the area of the District Bungus sackcloth Padang. This study is a combination of the use of secondary data and primary data. The use of secondary data is more focused on statistical data from the Central Bureau of Statistics and Bappeda Padang. While the primary data derived from interviews are structured in the form of a questionnaire to the public (which consists of the general public, stakeholders and community leaders) are located on the object of research with economic potential, namely trade and services and industry (large industry, medium and small), hotels and restaurants, tourism, fisheries, and so on. The assumption of the sector as a labor-intensive process of developing local resources and optimization of the economic potential of the region. Observations or observation conducted to obtain preliminary data that can support the study, so the complete information to deliver answers to the problems of research can be obtained.

Total population in this study is derived from the number of residents in the sackcloth of District Bungus Bay object of study chosen place. Based on data from the District In Figures sackcloth of District Bungus Bay of the Year 2013, the location of Bungus are at KelurahanWest Bungus. The total population in this

district is 6,274 inhabitants. While sampling study conducted by random sampling on the people residing in the area around the object. Sampling is determined by quotas which are considered to represent the answer to each question in the form of a questionnaire that will be given to the respondent.

According to the Central Limit Theorem in Cooper and Schinder (2006), said that in order to determine the sample size, the sampling distribution will be normal if sufficient number of samples. The number of samples in question is a minimum of 30 (n = 30), where the greater number of samples, sampling food distribution approaches a normal distribution. In other words, if the population is not normally distributed, the mean of samples would be normal if the sample size is greater than or equal to 30 (n ≥ 30). Thus, the number of samples in this study were 30 respondents.

To answer the research objectives of the priority sectors of the economy that can be developed in Bungus Port area of Padang, the analysis method Analytical Hierarchy Process. This method is used to test the hypothesis priority economic potential by sector are assumed to be able to thrive in the Port area of Bungus Padang based on an initial survey that has been done.

The steps in the method of AHP analysis are: (1) Define the problem and specify the desired problem-solving, (2) Creating a hierarchical structure and overall management perspective, (3) Prepare comparative matrix pairs. This matrix starts from the top, (4) Consistency Logical, (5) Formula Mathematically, (6) Perform the synthesis of a priority to do the weighting vectors priority, (7) Processing matrix opinion consists of two stages, namely processing

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horizontal and vertical, and (8) Evaluate inconsistency for the entire hierarchy.

4. ANALYSIS Determine of Benefits economic sector priority, which is able to provide an indication of the national and regional economy. Economic sector priority certainly have a greater potential for more rapid growth than other sectors of the region, especially their role in contributing factor to these priority economic sectors, namely the accumulation of capital, the growth of labor absorption and technological advances. The creation of investment opportunities can also be done by empowering potential leading sectors are owned by their respective regions.

From the initial survey has been conducted and the results of observation of the region, the economic potential that can be recommended to thrive is Trade, hotels and restaurants, manufacturing industry (Sub Sector Non Oil), Transportation and Communications (Sub sectors of Transportation) in this case is transport River Lake Crossing), Sector Offices (Included in Sub Private Sector), the Entertainment Services and Recreation) or Tourism, Agriculture, Livestock, Forestry and Fisheries, in this case Sub Fisheries Sector, Electricity Sector, Gas and Water, in this case Sub Sector Electricity and Water, and Construction Sector.

The emergence on the economic sectors of potential that can be developed in the area of the Port Crossing Gulf Bungus Padang city is based on several indicators of assessment, namely: (1) Of Project (amount of labor that can be absorbed and reduce unemployment, (2) Competitiveness (Output produced the same quality with the output

sector of the economy but at a low cost, rate of economic growth in each sector, the productivity level of each sector), (3) technology (type of technology used, the level of efficiency that can be generated), (4) Investment Opportunities (Power drag each business sector, investment opportunities from the local community, opportunities of investment from outside investors (domestic and foreign), (5) Availability of Land (area of vacant land, use of existing land, intensity of building), (6) Physical land (topography of the land, the type and characteristics of the soil), (7) accessibility (distance location to arterial roads, Total access to sites, Barriers to the location).

The process of the Analytical Hierarchy Process (AHP) provides a framework that makes it possible to make an effective decision or complex issues by simplifying and accelerating the decision support process, which in this case the decision of the selection of priority sectors of the economy that can be developed in the Port area of the Gulf Crossing Bungus Padang. Based on the analysis by using AHP, then in Table 1 can be seen in detail the priority sectors of the economy that can be developed in the area of the Port Bungus Padang.

Tabel 1. Economic Sector Priority in Port Area of Bungus Padang

Economic Sectors Total Value Transport & Communications

354,72

Manufacturing sector (non-oil sub-sector)

352,78

Services (entertainment, recreation and Tourism)

326,78

Trade, services and restaurants

317,61

Electricity, gas and water supply

256,68

Construction Sector 245,00 Agriculture, Animal 187,75

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Husbandry (fisheries sub-sector)

Sources : Processed (2015)

Transport and communications sector is an economic sector that is most likely to be developed in Port Area of Bungus, with a total value of 354.72. This is because the transport and communications sector in particular sub-sector is the main sector that has been running until the present time and have good prospects for development for the people and government of Padang. This sector can be a trigger for the growth of other sectors in the region, such as the Manufacturing sector, which is an economic sector that has the total value of which is under the Transport and Communications sector. This is because the raw materials processing industry can be found around the port area and in an easy way as well as the facilities already available in advance to obtain the raw material.

While the services sector, in this case of tourism, is a prospect that has economic potential that can be developed after the Processing Industry sector (Fish). Tourism, which includes entertainment and recreation being targeted economic potential that can be developed in the Port area of Bungus, because in principle there is a major supporting factor that can be sold, such as the view of the sea and the beach is clean. This situation is a factor that can attract local and foreign investors (domestic and foreign) to invest in this sector in order to provide a significant impact to the surrounding community and the government of Padang.

Likewise, trade, services and restaurants. This sector has good prospects to be developed because of trade, services and restaurants can provide a positive impact on improving the welfare of people

around the region and for investors who are interested to invest in this sector. With these impacts will indirectly benefit the City Government of Padang to obtain sources of revenue through fees paid from activities in the sectors of trade, services and the restaurant. While the three sectors that have a value of the bottom three is an economic sector that can be considered more to be developed because it takes a long time and have a big enough challenge to be developed in Port Area of Bungus Padang, such as accessibility, physical condition of the land is less support and social impact can be caused by the development of the sector.

5. CONCLUSION Based on the analysis that has been done, it can be concluded that the priority economic sectors in an area can be obtained by using AHP. The economic sector priorities are obtained using such methods and generating the highest total value in the Port area of Bugus in order are: transport and communications, manufacturing industry (sub-sectors of the non-oil), Offices (Leisure, Recreation and Tourism, Trade, Services and Restaurant, Sector Electricity, Gas and Water, Construction Sector and Agriculture, Animal Husbandry (Sub Sector Fisheries).

Recommendations can be given are: the three sectors that have a score value is the smallest sector of electricity, gas and water supply, construction and agriculture, livestock (fisheries sub-sector), because each sector is considered as not meeting criteria based on selected indicators. However, these sectors are likely to be developed for the future (long-term), but not a top priority for the short term.

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6. BIBLIOGRAPHY [1] Adisasmita, R (2008)

Pengambangan Wilayah : Konsep dan Teori. Yogyakarta: Graha Ilmu.

[2] Bappeda Kota Padang (2013) Padang Dalam Angka. Biro Pusat Statistik.

[3] Cooper, D and Scinder P (2006) Business Research Method, 9 th Edition. McGraw-Hill International Edition.

[4] Kuncoro, Mudrajad (2004) Otonomi Daerah dan Pembangunan Daerah : Reformasi, Perencanaan, Strategi dan Peluang. Jakarta. Erlangga

[5] Mangun, Nadiatulhuda (2007) Analisis Potensi Ekonomi Kabupaten dan Kota di Provinsi Sulawesi Tengah. Tesis. Universitas Diponegoro. Semarang.

[6] Putri, I Dewa Ayu Ngurah Alit (2011) Penentuan Skala Prioritas Penanganan Jalan Kabupaten di Kabupaten Bangli. Tesis. Denpasar : Program Magister Teknik Sipil Universitas Udayana.

[7] Saaty, TL (2003) Decision Making With The AHP: Why is The Principle Eigenvector Necessary. European Journal of Operational Research.

[8] Sjafrizal (2008) Ekonomi Regional : Teori dan Aplikasi. Padang: Baduose Media

[9] Sjafrizal (2009) Teknik Praktis Penyusunan Rencana Pembangunan Daerah. Padang : Baduose Media

[10] Tarigan, Robinson (2005) Perencanaan Pembangunan Wilayah. Jakarta : Bumi Aksara

[11] Widodo, Tri (1999) Perencanaan Pembangunan : Aplikasi Komputer. Yogyakarta : UPP STIM YKPN

[12] Taslicali and Ercan (2006) The Analitical Hierarchy & The Analytic Network Procsses in Multicriteria Decision Making: A Comarative Study. Journal of Aeronantics and Space Technologies 2(4), 55-65

[13] Tuban, E and Aronson, J.E (2005) Decision Support Systems and Intelligent Systems. 5 th Edition, Canada : Prentice Hall International, Inc.

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Reaffirming Cultural Understanding: The PNJ Partnership with Kaimana District of West Papua

Zaenal Abidin Eko Putro1, Nurul Intan Pratiwi2

Journalism Study Program, State Polytechnic of Jakarta GA. Siwabessy Street, UI Campus, Depok, West Java

[email protected]

Abstract

Being established by the Indonesian government, the Politeknik Negeri Jakarta (PNJ, or State Polytechnic of Jakarta) should has been receiving students from various ethnic and religious backgrounds. It is to implement the Indonesian Law Number 12/2012 about the higher education which states that higher education lays on Pancasila, Basic Law 1945, Unity of Indonesia Republics, and Unity in Diversity. Based on these foundations, in 2012 PNJ has signed a partnership program with the government of District Kaimana, West Papua to provide education service for young student from Kaimana. However, during the early years of implementing program its progress has not been satisfied some PNJ teachers as well as some leaders of PNJ. In fact, Kaimanan student who studies at Graphic and Journalism Department had not been energetic to attend the class for instance. Grades they achieve were also not high. Moreover, some Kaimana students were expelled (drop out) by some department in PNJ. Some teachers and their fellow students have never been built close relationship with them. Consequently, these features attract criticism by those who think that the diversity of Indonesia works. For that reason, there are at least two aspects that need to be discussed here. Firstly, scientific aspect which is to explore the element of study for diversity of Indonesia as well as united of Indonesia. This spirit brings the partnership between PNJ and district government of Kaimana into reality. Secondly, practical or operational aspect where we would like to seek and elaborate to what extent the success of the educational progress for Kaimanan student studying in PNJ campus. This paper will also describe the opinion of any stakeholder who takes a role in preparing and executing the program including PNJ leader, representative of department, and representative of teaching staff and representative of student as well. Key words: cultural understanding, diversity, educational service, affirmative action program, and marginal minority. 1. INTRODUCTION Indonesia is a plural society. It is an appropriate word of diversity in Indonesia’ motto, bhinneka tunggal ika or unity in diversity, since the diversity is embedded to the nation. The diversities are varied ranging from ethnic, economy, social status to religious background. Based on the sort of diversity related to the nation building, Benedict Anderson (1983) mentions that nationalism building in a state is formed by the imagined community of the people. It means that although having a similar nationality, people are not to get to know each other except merely on their imagination.

PNJ as one of the state university should have been receiving student from various ethnic and religious background. It is to implement the Indonesian Law Number 12/2012 about the higher education which states that higher education lays on Pancasila, Basic Law 1945, Unity of Indonesia Republics, and Unity in Diversity. Based on these foundations, in 2012 PNJ has signed a partnership program with the government of District Kaimana, West Papua to provide education service for young student from Kaimana. Henceforth, a number student from Kaimana have been studying in some department of PNJ.

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It is not uncommon for the PNJ civitas academia to perceive any student from various backgrounds. Even, this kind of openness receiving student from multietnic and multireligious backroung has proven the ability of PNJ to sustain nation state of Indonesia as far as formulated in state philosophy of Pancasila. However, several young people from Kaimana study in PNJ resulting from the partnership program between PNJ and Kaimana District Government. They get scholarship from the Kaimana District government.

However, during their learning process in PNJ the interim result has not satisfied. In some departments of PNJ, their participation in class is lower than non-Kaimanan. Their grades are also not very high. Even, some of them were expelled or drop out because their achievement can no longer be tolerated. In early months, they seem that they fail to get adaptation with their fellow students as well as their teachers. Understandably, this will attract criticism regarding with the implementing the partnership program.

This paper tries to explore the question about diversity and nationality issue beyond the partnership program as well as the learning progress of Kaimanan student in PNJ. This paper is resulted from the qualitative research that combines literature study with interview. The authors interview some resource person within the context of partnership program including vice director of PNJ, Head of Public Communication of PNJ, lectures, Head of Education Body of Kaimana Government as well as student from Kaimana.

2. PAPUAN STUDY IN JAVA There have been several studies about the motivation and behavior of Papuan studying in Java. One of them is Boveington study on Papuan student in Malang, East Java. He shows that the main reason of Papuan studying in Malang is because of the lack of education system and facility in their home town. However, they want to return to their hometown in Papua when they have finished their study. They shall fix up any other scarcity of current globalization ranging from education to human resource capability.1

It is another research done by Novirianto on student from Fakfak, Papua who studies in the Muhammadiyah University of Surakarta says that student from Fakfak encountering a sort of cultural shock. The indications are, among others, they have difficulties on building communication with other Papuan, lack of self-confidence, homesick feeling, being afraid to do something new, and the different learning method with that of hometown as well. There are some factors influencing cultural shock such as being not yet experienced living in Surakarta as well as not familiar with Javanese language that is used as daily conversation.2

Those problems experienced by Papuan in Malang and Surakarta are

1 Boveington, Tristram Frederick. Sebuah

Survei Tentang Para Pelajar Papua yang Kuliah di JawaTimur; Latar Belakang, Unsur-Unsur dan Cita-Cita, Malang: Unversitas Muhammadiyah Malang. 2007. p. iv

2 Novirianto, Eko Wahyu. Keterkejutan Budaya Pada Mahasiswa Asal Papua Kabupaten Fakfak. Skripsi. Fakultas Psikologi, Universitas Muhammadiyah Surakarta, 2013. P. 17

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also probably occurred in Depok, especially on PNJ’ student from Kaimana West Papua. They might feel the different atmosphere with that of their hometown, such as education facilities, student life style, and the way to communicate with other student and lecture, and learning standard alike.

Undoubtedly, student from Kaimana in PNJ is now become a new phenomenon specifically within PNJ circle. There has been an assumption so far that as the position of polytechnic as the second grade of university, meaning that it position under the top ten universities in Indonesia. However, PNJ has been able to preserve and empower the diversity as well as the unity of Indonesia by serving good education to the student from Kaimana District of West Papua.

3. DIVERSITY, UNITY AND AFFIRMATIVE ACTION FOR MINORITY

Since its independent in 19945, Indonesian people has been continue to try to defend nation state of Indonesia. In the first inception, nationality of Indonesia was built by having the similar experience about the past. It is like of what Ernest Renan (1882) said that nationalism is formed with the basis on the similar fate and solidarity among people resulting from the past experience as well as the preparation for the future.3

Solidarity and past history has broken the boundaries both ethnic and religious differences. This concept is similar with multiculturalism since multiculturalism is as the theory as

3 Facing History and Ourselves. Stories of

Identity. Religion, Migration, and Belonging in a Changing World. Brooklyn: Facing History and Ourselves Foundation, Inc. 2008. P. 20

well as policy that recognizes the differences and gives an equal opportunities for every group without discrimination. Recognition to those who has different culture, ethnic and religion requires a certain government institution which recognize and not ignore the uniquiness of a certain culture, especially for those group with their essential culture. Demanding on the political recognition for culture on specific group is compatible with the idea to respect on the culture that belong to the specific group.4

Recognition on collective rights that belong to specific groups is very basic to support the fulfillment of social meaning for minority group. Sociologist Manuel Castell says that….in a world of global flows of wealth, power and images, the search for identity –collective or individual, ascribed or constructed –becomes the fundamental source of social meaning.5

Morover, in her research on Chinese and Vietname descendants in the United State, Kim shows that they never been truly emerged in melting pot formation in the US. Although the descendants of Chinese and Vietnamese immigrant are now enjoying American culture and studying in some reputable universities in the US such as Standford University, Barkeley University, Massachusetts Institute of Technology and other similar top universities, their entity remains solid. Even, it is not impossible when there is a certain momentum happened,

4 Gutmann, Amy. Multiculturalism.

Examining The Politics Of Recognition. New Jersey: Pricenton University Press. 1994. P. 5.

5 Facing History and Ourselves. Ibid. P. 2.

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their identity will reemerge on the sense of ethnic sentiment in the future.6

Multiculturalism in Canada is one of the best examples regarding with the realization of the concept. Reitz et al (2009: 5-6) states that Canadia government started to operate the multicultural policy in 1971 even though only in a limited aspect. Prime Minister Pierre Trudeu proposed the idea of multiculturalism into parliament assembly. In his opinion, Canadian state would have a strong positive power to boost social cohesion if they includes minority group in daily activity of Canadian people. Trudeu’ proposal was supported by the majority of political party and in 1982 multiculturalim has become the constitution of Canada. At the end, Multiculturalism Act was stipulated in 1988.7

To the Indonesian context, the Canadian experience will not be appropriate if it totally replicated. We know that there is a different political and social context between Indonesia and Canada. It is possible that majority and minority will never be engaged as long as there is a problem both at majority and at minority group. Specifically to those Kaimanan who studies in PNJ, the probem that they have is dealt with culture shock as shown by Novirianto research (2013) on Papuan student in Surakarta.

Bochner (1982) explains that culture shock will be possible happening whenever the old habit no longer valid. As a result, at the first step there

6 Ekoputro, Zaenal Abidin (Ed.). Berpeluh

Berselaras. Buddhis-Muslim Meniti Harmoni. Jakarta Centre Of Asian Studies, Kepik Ungu & Hivos. P. 21

7 Ekoputro, Zaenal Abidin (Ed.). Ibid.

will be a feeling of difficulty, doubtly as well as threated feeling resulting from the sudden change on sign meaning, language, and relationship with other as well. Finally, individual who passes culture shock must suit his or her behavior in order to conform to other expectation.8

4. DIVERSITY IN REALITY AND EARLY PERIOD OF REALIZING OF PARTNERSHIP PROGRAM

Regarding with the partnership program between PNJ and Kaimana District, one can assume that the concept of valuing diversity comes into reality. Vice Director of PNJ, Fachruddin said that as long as PNJ is as a state university, the policy on serving education lays on state policy. Consequently, PNJ should have been available for any student from all over the ethinic and religious background of Indonesian citizen including the student from Kaimana. The program is part of implementation of affirmative action program established since President SBY era. PNJ is ready to support state policy on receiving student from area of 3T (tertinggal, derdepan, dan terluar, or underdeveloped area, areas around state border with other country, and island areas in the ocean).9

It means that the concept of diversity and Indonesian unity from PNJ leader is clear and distinct. It is because the campus has been rooted on state policy, especially the Ministry of Research, Technology and Higher Education. The concept of diversity

8 Kaplan, Gisela & Eckermann, Anne-Katrin.

Identity And Culture Shock: Aboriginal Children And Schooling In Australla. Mcciill Journal Of Education • Vol 31 No 1winter 1996. P. 16

9 Interview with Fachruddin, Vice Director I PNJ, 17 September 2015.

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and Indonesian unity remains tough for the head of ministrial departments regarding with the issueing some policies.

It should be noted that this year PNJ has received student from 3T areas as mentioned above. Technically, the Directorate of Higher Education tests student candidates from 3T areas. After that, selected student choose the campus they desire base on their own choice. PNJ is one of the campus destinations of the selected 3T area student. It is about ten students have enrolled to study in this campus.10

Luther Rumpumbo, the head of Education department of Kaimana District said that the partnership program with PNJ is not other than the manifestation of valuing diversity. If there are, he continues, Papuans need to separate from Indonesia; the problem is resulted from the feeling of dissatisfaction. He admitted that human resource of Papuan is far left behind the other fellow of Indonesian citizen. To respond the condition, Indonesian government launched of what so-called the affirmative action program. The institution to execute the program was named Unit Percepatan Pembangunan Papua dan Papua Barat (UP4B11 or, Unit for Development Acceleration of Papua and Wet Papua). One of the main

10 Fachruddin, Ibid.

11 UP4B is formed base on the Presiden Regulation or Perpres Number 66/2011. The regulation mandates UP4B to work for three years (2012 – 2014) and focuses on five priority program, i.e. basic infrastructure development, improvement educational service, improvement health service, empowering people economi as well as affirming to genuine people of Papua (Orang Asli Papua, OAP). See. http://zonadamai.com/2014/03/04/pembentukan-up4b-dinilai-tepat/, accessed 5 Oktober 2015.

tasks of the unit is to empower Papuan people by sending them study outside Papua Island including abroad. He himself once joined a meeting with the Direcorate of Higher Education of the Ministry of National Education to consider the PNJ as the one of targeted institutions.12

According to Ade Sukma, the Head of Public Relation of PNJ, this campus accepted circular letter from the Directorate of Higher Education of the Ministry of National Educatio in 2012 containing the mandate of this campus to accept Kaimanan student. Sukma himself admitted that the Director of PNJ had asked him to go to Kaimana to carry out academic test for some student candidates. Admission test is not only to measure intelligent aspect, but also to consider the accommodation of ethnic and religious background of student candidate. It should be noted that there are at least seven major ethnic groups in Kaimana including people from Maluku. Muslim and Christian shares an equal number of each follower. Those students who succeed in admission test originating from various ethnic backgrounds. The total number of enroller was 40 young people. Then, PNJ and Kaimana District decided that only 19 students were succesfull to study in PNJ.13

In 2012, they came to Depok and started to join the class. However, during the last three years study in PNJ, only three students who take Diploma 3 have completed their study. The rest two or three joins

12 Interview with Luther Rumpumbo, the

head of Education department of Kaimana District, 26 September 2015.

13 Interview with Ade Sukma, the Head of Public Relation of PNJ, 23 September 2015

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Diploma 4, so that they might be finished next year. The total Kaimanan students that still perceive their study are 10 students. The rest students were failed due to the lack of capability and ability to follow the study process in PNJ. They study in some departments or faculty in PNJ that compatible with the ongoing development process in Kaimana District area.14

For Kaimana district government, the partnership program with PNJ purposes to support Kaimana government in preparing young Kaimanan to be able to work for local government such as accounting, machinery technique as well as mass media. They aware that as a new district, formed during Reformasi era, they require many more expert in those realms. Furthermore, they give scholarship Kaimanan student to study in some universities in Java and Sulawesi such as PNJ, UNJ Jakarta, UGM Yogyakarta, UPI Bandung, Yohannes Surya Institute as well as Poltekkes Manado.15

5. THE PROCEED OF KAIMANA STUDENT STUDYING IN PNJ

As cited above, the partnership program has begun in 2012 and the student who had succeeded in admission test in Kaimana went to PNJ campus in Depok. Some departments or faculties that they study are Civil Construction Technique, Otomotif, Informatics Technique, Accounting, Business Administration, Graphic Desaign and Journalism as well. According to a Kaimanan student, this campus is the only one where student can select the study program they desire. Kaimanan

14 Ade Sukma, Ibid.

15 Luther, Ibid.

student in UNJ for instance, they study for the purpose to be a teacher in Kaimana. Those who study in UPI Bandung is also purposed to be a sport teacher.

The former head of the Graphic and Jurnalism Department, Ade Haryani told the story on how they study in PNJ. She said that they had not been energetic to attend the class. Grades they achieve were also not high. Moreover, some Kaimana students were expelled (drop out) by some department in PNJ. Some teachers and their fellow students have never been built close relationship with them. They have also never participated in some student activity unit in PNJ. It seems that they only build communication with their fellow Kaimanan.16

What are the reasons why Kaimanan students did not energetic to study in PNJ? One of the Kaimanan students whose her status is still active said that the most serious obstacle studying in PNJ is dealing with the problem of money. The monthly living cost they received is very limited. She mentioned that money is not the only aspect they seek. But, the living cost they receive from the Kaimanan government has not been regurlarly sent. In the beginning, money was sent to them periodically per semester. Nevertheless, in the second year the money was transferred to them once in a year. Tragically, the amount they receive in second year was decreased.17

16 Interview with Ade Haryani, The former

head of the Graphic and Jurnalism Department, 2 September 2015.

17 Interview with Meysin Claudie Leatemia, one of the Kaimanan student in PNJ, 30 September 2015.

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She told to the author that in early time coming to Depok, each student received amount IDR 16 million for one semester. However, the amount was decreased into IDR 12 million per semester for the second semester. Some cost cut to disburse boarding house. Drastically, in the second year each student has only received IDR 21 million for one year including dirsburse boarding house. she felt that the amount is not enough to cover her living cost including cost for clothing, books and printing as well. However, there is still a hope for her in the future eventhough the subsidy from Kaimana government has decreased.18

There is another problem regarding with the absent of monitoring from the Kaimana government as well as from PNJ. Kaimana government has never been asked any Kaimanan student about the progress they achieve. They feel that there is no attention from the Kaimana government regarding with the student problem. They only send the money, but never asked some reports from the student.

Laziness is also the main factor that is admitted by her. There are some students from Kaimana that very rare joining the lecture. It is merely her opinion probably that they have problem with the way to communicate with other student and teacher alike. The way they speake is different with most other student do. They need more adaptation with Depok style of conversation, then. As a result, they have unconfident when they asked by other non Kaimana student to chat. In addition, there is also a student broken for the cause of illness resulting from joining a small party in Bandung with other Kaimana

18 Meysin, Ibid.

students. This student suddenly stopped his study in PNJ.19 According to another resource person, the student was extremely drunk caused by consuming the illegal shaked drink (oplosan). The student once had looked after in hospital facilitated by PNJ before he returned to Kaimana.20

6. SOME NOTES FOR IMPROVING PARTNERSHIP PROGRAM IN THE FUTURE

Some PNJ leaders have admitted that the partnership program to implementing affirmative action program issued by governmet is not satisfied. They have also known that some Kaimanan student resign from their study as well as expelled by the department. The failure is not only from the academic result, but also from the adaptation of culture.21

The lack of supervision is because of the normal mechanism for student studying in PNJ. Student fee receiving from Kaimana student is similar with other student not Kaimana. Henceforth, student form Kaimana is regarded as normal student just like other student. Exemption is on the admission test that distinguishes with other student. Eventhough there is no special supervision from PNJ and Kaimana government, the supervion should have been handling by the deputy II of each department.

Kaimana student is treated differently in other campus such as in Surya Institute in Tangerang and UNJ as well. In Surya Institute of Tangerang for instance, they are under coordination of the campus. The campus also manages the money from Kaimana government giving to the

19 Meysin, Ibid.

20 Ade Sukma, Ibid.


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student. They stay in campus dormitory and the campus provides meals.22

Learning from the Kaimana student progress in this campus, a PNJ leader think that the affirmative action for the new student from 3T areas this year should be well managed. It means that the supervision is an urgently needed especially in the time when they are not join to the class. However, PNJ leader disagree to accommodate them in a specific boarding house. Student must live with common people in order to adopt new culture and value from common people. Accordingly, PNJ will supervise the progress. According to Fachruddin, learning how to learn is more important for student. This will be gained from learning the culture of local people.23

7. CONCLUSION Being established by the Indonesian government, the Politeknik Negeri Jakarta (PNJ, or State Polytechnic of Jakarta) should has been receiving students from various ethnic and religious backgrounds. It is to implement the Indonesian Law Number 12/2012 about the higher education which states that higher education lays on Pancasila, Basic Law 1945, Unity of Indonesia Republics, and Unity in Diversity. Based on these foundations, in 2012 PNJ has signed a partnership program with the government of District Kaimana, West Papua to provide education service for young student from Kaimana.

However, during the early years of implementing program its progress has not been satisfied some PNJ teachers as well as some leaders of

22 Sukma, Ibid. & Luther, Ibid.


PNJ. In fact, Kaimanan student t had not been energetic to attend the class for instance. Grades they achieve were also not satisfied. Moreover, some Kaimana students were expelled (drop out) by some department in PNJ. Some teachers and their fellow students have never been built close relationship with them. Consequently, these features attract criticism by those who think that the diversity of Indonesia works.

There area at least two basic problem they experience. Firsly, there is no supervision mechanism for Kaimanan student specifically supervision on culture that should be understood by them. They should be given knowledge about valuing diversity that will be useful for them to proceed their study in PNJ. Secondly, the amount of living cost is not yet appropriate for student who live separately far from their hometown. Otherwise, the student from Kaimana should have been treated specifically by locate them in a dormitory. Supervisors will be easy to monitor and to facilitate the student when they need a help for instance. Mechanism from other campus in treating Kaimanan student should be replicated to PNJ for the improvement of partnership program in the future.

8. BIBLIOGRAPHY [1] Baxter, Pamela & Jack, Susan

(2008) Qualitative Case Study Methodology: Study Design and Implementation for Novice Researchers. The Qualitative Report Volume 13 Number 4 December.

[2] Boveington, Tristram Frederick (2007) Sebuah Survei Tentang Para Pelajar Papua yang Kuliah di JawaTimur; Latar Belakang, Unsur-Unsur dan Cita-Cita, Malang: Unversitas Muhammadiyah Malang.

[3] Creswell, J. W (2003) Research Design; Qualitative, Quantitative,

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and Mixed Methods Aproaches. (2nd ed.). London: Sage Publication.

[4] Ekoputro, Zaenal Abidin (Ed.) (2012) Berpeluh Berselaras. Buddhis-Muslim Meniti Harmoni. Jakarta: Centre Of Asian Studies, Kepik Ungu & Hivos.

[5] Facing History and Ourselves (2008) Stories of Identity. Religion, Migration, and Belonging in a Changing World. Brooklyn: Facing History and Ourselves Foundation, Inc.

[6] Gutmann, Amy (1994) Multiculturalism. Examining The

Politics Of Recognition. New Jersey: Pricenton University Press.

[7] Kaplan, Gisela & Eckermann, Anne-Katrin. Identity And Culture Shock: Aboriginal Children And Schooling In Australla. Mcciill Journal Of Education • Vol 31 No 1 Winter 1996.

[8] Novirianto, Eko Wahyu (2013) Keterkejutan Budaya Pada Mahasiswa Asal Papua Kabupaten Fakfak. Skripsi. Fakultas Psikologi, Universitas Muhammadiyah Surakarta.

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The Study of Soft Skills to Develop Learning Model of Soft Skills That Integrated With Accounting Subjects

Titi Suhartati1, Yenni Nuraeni2, Nedsal Sixpria3

Accounting Department-Politeknik Negeri Jakarta, UI Campus-Depok, 16425 [email protected], [email protected], [email protected]

Abstract

This study aims to explore aspects of the soft skills needed by the user of accounting graduated student. The results are expected to be the material in preparing of soft skills assessment guide that integrates with accounting subjects. Since the lecturers shall submit an assessment of soft skills and hard skills in student assessment report, so the problem rise in assessIng the student sotf skill. This study use descriptive qualitative research approach in order to find complete and in-depth information. The samples are the company at Jakarta, Bogor, Depok, Tangerang and Bekasi area. Jakarta State Polytechnic also used as a sample of a vocational institution related to the learning methods. Data collection techniques use survey method through a questionnaire and interviews. The results showed that the aspects of soft skills are very important in the recruitment process. Respondents stated that priority should possess soft skills of employees among others, ethical, creative and the honesty/integrity in carrying out the work. Some quality of soft skills are still inadequate from the graduated of accounting program, related interdisciplinary thinking, spirit of leadership and communication in a foreign language. Previous study stated that cooperative and problem-based learning model will enhance the student soft skills. Key Words: soft skills, integrated, accounting

1. INTRODUCTION Development of a person's behavior is a process of education, both formal and non formal education in the community. Related behaviors and skills, someone in accounting was formally established as an education in accounting. Education in the field of accounting is part of a global education which essentially contained in the course curriculum.

Higher Education through Kepmendiknas No. 045 / U / 2002 requires changes in the direction of higher education for: (a) produce graduates who can compete in the global world; (b) a change in the orientation of higher education is no longer just produce intelligent human knowledge, but also be able to apply their knowledge of life in society (competent and relevant), the more cultured; and (c) a change in the working world needs manifested in changes in receiving labor requirements, namely the requirement

that the dominant soft skills in addition to his hard skills. So the curriculum drafted based more on the formulation of competency to be achieved / possessed by college graduates who meet or come near the competencies required by the stakeholder community/ stakeholders (Director General of Higher Education, 2008).

Requirements soft skills are also mandated in the draft National Competence Indonesia referring to Presidential Decree No.08 of 2012 on the Indonesian National Qualifications Framework (KKNI) that an important aspect assessed that includes knowledge (knowledge), skills (skills) and attitude (attitude work) is a reference for education and training institutions in formulating curricula and training programs, for professional certification agency in carrying out certification of competency (competency test) and formulate the scope (certification

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scheme), and for the industrial world in the process of recruitment primarily related to the recognition of the level of qualification labor needed.

Results of a survey conducted mone Curriculum Center in 2010 also revealed that the key to success is 80% mindset and 20% technical skills (www.its.ac.id). From the research it appears that the development of soft skills of learners or students in learning in universities becomes indispensable so that after graduation can berkehidupan well in society and be able to face the challenges of a dynamic global working world. To that end, the integration of the development of soft skills into the curriculum and the learning process in universities should get priority.

The problem of this research study related to the accounting subjects as one part of the overall learning of students in colleges especially departments/study programs accounting is the dominant material and requires the development of soft skills into the curriculum. This is due to accounting subjects tend to be associated with the numbers (financial information) so that the learning process (PBM) more emphasis on how the students' ability to absorb the learning material shown through test results (hard skills). Until now there is no model that provide guidance on how the integration of developing soft skills into learning accounting subjects. Though based on previous studies of the graduates users more attention to soft skills components of its employees but it is unclear the specific priorities of soft skills needed by the users graduates in accounting.

This study aimed to describe the soft skills which are needed by the program graduate accounting studies. The results are expected to contribute,

among other things: a reference to the Polytechnic and vocational education providers in the development of learning and evaluation of soft skills in the environment.

2. THEORY 2.1 Soft Skills The term soft skills by Simpson (2006 ) arises from two sources, first, on the part of employers who feel the need to identify the factors of non-technical and non-traditional as well as the skills needed by workers to relate to others . Awareness of the importance of skills to relate to others is based on changes in the world of business and industry which originally focused on manufacturing industry into a service industry where soft skills play an important role in it. Second, the term soft skills arose from a project undertaken by the European Social Fund ( in Simpson , 2006) which is obtained term soft skills are the skills needed to achieve a soft outcomes. Where soft outcomes described as something that is difficult or impossible to measure.

Then Klaus (2007) stated that“ soft skills encompass personal, social, communication, and self management behaviours, they cover a wide spectrum: self awareness, trustworthiness, conscientiousness, adaptability, critical thinking, organizational”.

Agree with the opinion of Tripathy (2006), which states that soft skills are abilities that are affective owned by a person, other than the ability on technical mastery of formal intellectual one field that allows a person to be accepted in the environment and working environment include: awareness, attitude , Initiative, emphathy, confidence, integrity, self-control, leadership, problem solving, risk taking and time management.

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Sailah (2008) divides soft skills into two parts, namely intrapersonal skills and interpersonal skills. Intrapersonal skills are the skills of a person in the "set" themselves. Intrapersonal skills should be addressed first before one starts dealing with others. The Interpersonal skills are the skills of a person required in dealing with others. In the 2006's are being developed other attributes that belong to the extra personal concern (Tarmidi and Ginting, 2010), which implies wisdom / compassion or wisdom. This attribute is important because it has a policy oriented on win-win solution.

Sharma (2009), states that soft skills are all aspects of generic skills that also include elements of cognitive associated with non-academic skills. It adds that, based on the results of the study, seven soft skills were identified and developed on the importance of learners in higher education institutions, covering; communication skills, thinking and problem solving skills, team work force, life long learning and information management, entrepreneurial skills, ethics, morale and professionalism, and leadership skills.

A study of 50 of the most successful people in America (Sailah, 2008) showed that most determine their success is not the technical skills (hard skills), but the qualities that are included in the category of soft skills.

2.2 Soft Skills Learning Method The learning process in college is experiencing a shift from the content-based learning to competency-based. If the curriculum is run, it is not too difficult for the students to transform themselves from less competent become competent graduates. The changes referred to in the minister SK 045 / U / 2002, not merely replace the list of courses, or arrangement of

subjects, but more essential is the change in the learning process, delivery and evaluation.

The learning process that uses student centered learning approach (SCL) became one of the options in the curicullum based competencies (CBC). Soft skills are not supposed to be developed through the course, but tuck in each course. If the attributes of soft skills that will be developed are oral communication, then the learning process using the presentations, discussions, group discussions become necessary. However, if the cooperation is focused, it is necessary to group assignment. In principle, if the soft skills development will be done through the implementation of the curriculum, then it will not be the subject of its own, but be hidden curriculum. The hidden curriculum is more powerful because it can make the learning process more attractive and fun (Prijosaksono, 2005; Hamid, 2009).

3. METHODOLOGY 3.1 Data and Sample The research is descriptive research with qualitative research approach, in accordance with Sunyoto (2011) that qualitative research can be used to understand the symptoms of a thorough, in-depth, as it is, and in accordance with the thinking of those who are in it. Data collected by sending a questionnaire to the graduates (the user). Samples for the graduates are some of the companies that represent services, trading and manufacturing companes, both private and government in the Jakarta-Bogor-Depok-Tangerang-Bekasi (Jabodetabek). Questionnaires conducted over 2 months (15 February to 15 April 2015) to 50 companies by sending via e-mail and obtained answers while 22 companies (as attached) or as much as 44% of

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respondents fill out the questionnaire completely. Furthermore, to obtain data on institutional learning Polytechnic/vocational conducted observations and interviews with leaders of the Accounting Department State Polytechnic of Jakarta (PNJ).

3.2 Research Steps In developing a model of learning soft skills are integrated with accounting subjects in vocational education, the implementation of the research carried out by the following steps:

a. Conducting research on aspects of soft skills required by user of graduated accounting. Data was collected by questionnaire and interview .

b. Conducting research on learning model accounting courses at the polytechnic/ vocational education ( PNJ ). Data collected by interview and observation .

4. RESULT AND ANALYSIS 4.1 Result Based on a questionnaire that was distributed to 50 respondents obtained the return of questionnaires that had been filled completely by 22 of respondents consisting of different types of companies are presented in Table 4.1.

Table 4.1. Respondents Type of company Total

respondentsService 6 Trading 4

Manufacturing 7 Government

institution/company 5

Total 22

Source: data collection

Overall respondents stated that in recruiting employees held periodically. In a questionnaire submitted questions related aspects that need to be considered in recruitment. The statements are using 1-5 Likert scale (not at all important,

less important, quite important, important and very important). Overall respondents stated that there are some important and very important aspect to consider when considered in recruitment are summarized in Table 4.2 .

Table 4.2. Aspects on Employees Recruitment

Aspects Respondents (%)

Field of Study 91% Specialization/Certificate 23% Academic Achievement 41%

Practical skills acquired in college 23%

Practical skills acquired outside college 36% Reputation of

university/college 32% Foreign Languange skills 64%

Soft skills and performance during the interview 82% Computer skills/IT 82%


Overall of respondents have priorities of soft skills that required from employees, which are summarized in Table 4.3

Table 4.3. Soft Skills Priorities No Soft skills Priorities (%) 1 Ethical 95% 2 Creativity 91% 3 Honesty/integrity 86% 4 Ability to

cooperate 86% 5 Adaptability 86% 6 Communication

skills 82% 7 Ability to

organize 82% 8 Entrepreneurship 77% 9 Confidence 77%

10 Interpersonal skills 73%

11 Analytical skills 73% 12 Leadership 68%


Research results related to the quality of the soft skills of accounting graduated students who are working

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in the agency/company respondents are presented with a Likert scale (scale 1 is not very good to excellent 5 scale) for several aspects of quality, generating the information presented in Table 4.4 .

Table 4.4. Quality of Accounting Graduated

Quality Aspects Result Total

1 2 3 4 5 Knowledge of

science and industry

6

16

22

Working skills

4 12

8 22

Communication skills

8 10

4

22 Profesional

ethics 5

14

3 22

Honesty and integrity

16

6

22 Thinking across

discipline 5 10 7

22 Leadership 7 12 3 22 Ability to

communicate in foreign

languages

4 8 10

22

Understanding of Information

technology

8 14

22 Source: data collection

These results show that there are some aspects of the quality of the soft skills that are lacking of accounting graduated students, among other related interdisciplinary thinking, spirited leader and communication in a foreign language. For other aspects

of information obtained is quite good, and excellent.

Results of interviews with leaders of the Accounting Department obtained information that since 2012 the Jakarta State Polytechnic lecturers are required to provide an assessment of related soft skills of students based on the Guidelines for Character Education for Students (PNJ, 2011) and partially implemented. Soft skills assessment component / characters for accounting courses that have been executed generally include integrity, discipline, initiative and cooperation. In the process of implementation issues arise where the lecturers difficult to determine the assessment of soft skills of students because the assessment is not integrated with the soft skills courses. So that the subjective assessment of soft skills more relevant everyday personality, only emphasizes the personal relationship between students and professors.

Examples of soft skill assessment format which has been the subject of soft skills assessment in the PNJ is presented in Table 4.5. Based on the example of the format, the lecturers give an assessment related aspects of soft skills that will add value to the hard skills of students, such as the results of the test, quiz or other test.

Table 4.5. Soft Skills Evaluation Format

Activity Attributes Statements SCORE Explanation

4 3 2 1

Group Presentation

Initiative Giving expresion and perform

bravely

Effective Easy to understand

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Communication Opinion delivered appropriately

Team work/cooperative

Doing task according to their

resposibilities

Working tolerance

Unselfish in using of tools and

materials

Helping each other

Source: State Polytechnic of Jakarta, 2011

The learning model that is implemented in the accounting departement programme is a model of cooperative learning. This approach focuses on the use of small groups of students to work together to maximize the learning conditions for achieving learning goals. This can be done by giving lessons to students in the form of group presentations. Under this method several attributes of soft skills can be assessed, for example the initiative, effective communication and cooperation.

4.2 ANALYSYS Results of the study are presented in Table 4.2 shows that a very important aspect in the process of recruitment is soft skills and appearance. This is shown with a percentage of 82% of respondents choosing these aspects. Followed by computer skills and suitability aspects of the study. These results are consistent with previous studies (Sailah 2008; McGahern, 2009; Sharma, 2009) that soft skills are very important and needed in the field of work.

Table 4.3 presents the priority order soft skills that must be owned by an employee based on respondents. The sequence shows that the top three priorities employee must have soft skills (ethical, creative and honesty / integrity) in carrying out its work.

This study shows that in the implementation of the delivery of material to the students it is expected coverage of ethics, creativity and honesty should be emphasized. Soft skills so that aspect of the company's priorities in determining and assessing employee / potential employee can be fulfilled.

Based on Table 4.4. soft skills related quality of accounting graduated student of Polytechnic that are working in agencies / companies shows that there are several aspects of the quality of the soft skills that are lacking both graduate accounting courses Polytechnic. These results become input for the preparation of accounting Polytechnic course curriculum primarily related soft skills learning model that integrates in accounting subjects.

The materials of lecturing process in Accounting Department State Polytechnic of Jakarta has been related with soft skills assessment based on the Guidelines for Character Education for Students (PNJ, 2011) and partially implemented. Soft skills assessment component / characters for accounting courses that have been executed generally include integrity, discipline, initiative and cooperation. In accordance with the format in Table 4.5. When compared with the

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results of the research, there are still some soft skills that must be added to the assessment component, for example related to ethics, creativity, adaptability and ability to organize. Some aspects are still needed by accounting graduated in the field of work.

The learning model implemented in the accounting programme is a cooperative learning model according to the learning model Junaidi (2009). While Sugiyanto (2008) describes the types of learning models include (1) contextual learning model; (2) The cooperative learning model; (3) The quantum learning model; (4) integrated learning model; (5) model of problem-based learning (problem-based learning / PBL). Other studies related to soft skills learning model made by Amarullah and Sari (2014), which states that the model of problem-based learning (PBL) is influential in improving some of the soft skills of students. PBL is an approach to learning where the problem is presented prior knowledge/knowlegde given. Problems should be presented in a comprehensive manner and students must choose the necessary knowledge, learn it, and connect it with the given problem. It is expected to develop higher level thinking skills, develop independence and confidence. PBL learning method can be an alternative to the cooperative learning methods in improving the soft skills of students.

5. CONCLUSION The results shows that soft skill aspects are very important in the recruitment process, especially aspects of soft skills and appearance, followed by computer skills and suitability aspects of the study. Priority must possess soft skills of employees, among others, ethical,

creative and honesty / integrity in carrying out his job.

Users of graduated students stated that some aspects of quality soft skills possessed is still not good, among others related to interdisciplinary thinking, spirited leader and communication in a foreign language. This becomes a problem for accountancy courses in soft skills to improve the quality of graduates according to user needs.

In general the lecturers of accounting programme in PNJ has implemented learning model of soft skills using cooperative learning model that focuses on the use of small groups of students to work together to form a task group to work on a matter that is followed by a presentation of the group. This method is used to assess some of the attributes of soft skills, such as initiative, effective communication and cooperation. According to the research there are still some soft skills components that must be added to the assessment component, namely ethics, creativity, adaptability and organizational skills because those aspects are needed by graduated students in industry.

In improving the soft skills of students, using of PBL learning model is expected to develop higher level thinking skills, develop independence and confidence. PBL learning method may be alternative methods of cooperative learning.

This study has some limitations, including a limited number of graduates of the respondents and the absence of other respondents polytechnic institutions or other vocational programs that can be compared with the Jakarta State Polytechnic. Future research is that the research period could be extended so as to obtain an adequate

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respondent. Further observations to polytechnics or vocational education institution other so as to formulate a learning model that integrates soft skills in accounting subjects. This model can be the basis of an adequate assessment of soft skills for students. So accounting graduated students are expected to have soft skills that match with industrial.

6. AKNOWLEDGEMENT This research can be carried out with the support of various parties. Many thanks P3M Unit of State Polytechnic of Jakarta and the Director General of Higher Education which has given the opportunity and support to researchers to carry out research that is part of the Hibah Bersaing Research Grant for the first year (2015). Thanks also to the management of State Polytechnic of Jakarta, the users of the Polytechnic graduated students of accounting programme and other parties who have provided information and data for completing this research.

7. BIBLIOGRAPHY [1] Amarullah, F and Sari, D. (2014)

The study of the implementation of PBL Method and Its Relationship with Soft Skills and Learning Achievement of Students, National Symposium Accounting 16, University of Mataram, Lombok.

[2] Coates, D.E. (2006). People Traning Skill: Are You Getting a Return on Your Investment. Accessed 12 April 2015 from http://www.2020insight.net/Docs4/PeopleSkills.pdf

[3] Directorate General of Higher Education. (2008). Handbook of competence Based Curriculum Development of Higher Education. Jakarta. (online), http://www.unud.ac.id/ind/wp-content/uploads/buku-panduan-kurikulum- kbk.pdf. accessed 15 April 2015.

[4] Endang Soelistiyowati. (2009). Soft Skills: its role in a person's success. Papers presented in the AMT training at UNY.

[5] Fauzi, Nurul, (2010). Implementation of values Softskill in the Framework of Implementation of Competency-Based Curriculum and Student Center Learning in the Accounting Department State Polytechnic Padang, Journal of Accounting & Management, Vol.5, No.2, December, hal.31-37.

[6] Fidiyani, Rini. (2010). Paradigm Shift in Higher Education Law (From Institutional to the Core Curriculum and Competency-Based Curriculum), Dynamics Law Journal, Vol. 10, September 3.

[7] ITS, ITS Graduates need Soft Skills in the workplace. http://ww.its.ac.id/berita.php?nomer=117. Accessed on 3 April 2015

[8] Junaidi. (2009). Cooperative Learning in Accounting Course Introduction: A Field Experiment, Journal of Accounting and Finance, Vol. 11, No. 2 November: 53-64

[9] Klaus, P. (2007). The Hard Truth about Soft Skills. New York: Harper Collins Publishers.

[10] McGahern, R. (2009). Post graduates use soft skills to succeed at work. http://www.trainingjournal.com/news/2009-02-20-post-graduates-use-soft-skills-to-succeed-at- work /. Accessed on 3 April 2015

[11] Nasution, Judge. (2007). Seminars Soft skills 'Key to success'. Surabaya. ITS Online. Accessed on 16 April 2015.

[12] Presidential Decree No. 08 of 2012, on the National Qualifications Framework Indonesia (KKNI).

[13] Jakarta State Polytechnic. (2011). Guidelines on Character Education for Students. Depok

[14] Puliam, M.G. (2008). Employer Skill Seek. Career Corner, Excelsior College. https://www.excelsior.edu/Excelsior_College/Publications/Skills_

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Employers_ Seek_16 pdf, Accessed dated 10 April 2015

[15] Riyanto, Orphans, (2009). New Paradigm Learning: As Reference For Educators in Implementation of Effective Learning and Quality. Kencana. Jakarta.

[16] Sailah, I. (2008). Soft skills development in Higher Education. Soft skills Working Team Development Directorate General of Higher Education: Jakarta

[17] Sharma, A. (2009) Professional Development for Teachers. http://schoolofeducators.com/2009/02/ importance-of-soft-skills-Development- in-education. Accessed on 10 April 2015.

[18] Simpson, Simon J.A. (2006). The Measurement and Recognition of Soft Skills: Developing a Common Standard ?. http: //

www.surrey.ac.uk/politics/cse/M-and-R of Soft Skills. pdf. Accessed on 10 April 2015.

[19] Sucipta, I Nyoman. (2009). Holistic Soft Skills. Udayana University Press. Bali.

[20] Tarmidi and Ginting. Eka, DJ. (2010). Effect of Implementation of Competency Based Curriculum (CBC) The Soft Skills of Students, Journal of Education. Volume 2, Number 1.

[21] Tripathy. (2006). When the Going Gets tought, The Soft Get Going. http://www.selfgrowth.com/articles/Tripathy1.html Accessed on March 3, 2015

[22] Wilopo and Iramani. (2008). Managerial & Soft Skills: The Perception of Perbanas Surabaya Student. SEAAIR. It 392-400.

8. ATTACHMENT: RESPONDENT No Company Type of company 1 KAP Hendrawinata, Eddy dan Sidharta Services 2 PT Bank Syariah Mandiri Services 3 Bank Muamalat Indonesia, Tbk Services 4 PT Jasa Power Indonesia Services 5 Bank BNI Syariah Services 6 Pertamina Trans Continental Services 7 PT. Duta Inti Daya (Watsons Indonesia) Trading 8 Visitec Indonesia Electric Trading 9 PT Arghalexindo Prima Trading

10 Mitra Distribusindo Trading 11 PT Indocement, Tbk. Maufacturing 12 PT So Good Maufacturing 13 PT Inti Ganda Perdana Maufacturing 14 PT Prima Citra Lazuardi Maufacturing 15 Jaya Stainless Steel Maufacturing 16 PT Union Brother Sejahtera Maufacturing 17 PT Universal Citra Pangan Maufacturing 18 Rumah Sakit Pusat Otak Nasional Government Institution

19 PT Wika Reality Properti Government Institution 20 Pusat Pengendalian Pembangunan Kehutanan Reg.II Government Institution 21 PT Perusahaan Gas Negara (Persero) Tbk Government Institution 22 PT PLN (Persero) Government Institution

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Implementation of The Principle of Know Your Employee as Fraud Prevention Measures

on Indonesia Banking

Ida Nurhayati1 and Indianik Aminah2

Accounting Department State Politeknik of Jakarta Jl. Prof Dr. G.A Siwabessy Kampus Baru UI Depok

E mail: [email protected] , [email protected]

Abstract

This research as part of research on fraud or fraud occurring in the banking industry. Fraud is a deliberate fraud committed by a person or group of people, causing losses unnoticed by the injured party and benefit fraud perpetrators. Fraud generally occurs due to three main points, namely: the pressure to perform fraud, the opportunities that can be utilized as well as the justification for such action. This study uses a qualitative method, by analyzing socio jurisdiction over some regulations implemented in the working procedures of the banking activities. The result as a draft recommendation or opinion that can be generated at this point, can then be carried out further in-depth research, especially on a deep study of the regulations governing fraud and a contributing factor. Keywords: Compliance, know Your Employee, fraud, banking 1. PRELIMINARY Fraud in the banking system if they are on a low integrity condition, weak controls, accountability is low, and the pressure is high, chances of a person being dishonest will be greater. Based on the theory of fraud triangle (triangle cheating), pressure, opportunity, and rationalization that come together will increase the chances of fraud. But, if any one of the triangular elements is missing, fraud will not happen (Meliala, 1993).

Fraud is a deliberate fraud committed by a person or group of people, causing losses unnoticed by the injured party and benefit fraud perpetrators. Fraud generally occurs due to three main points, namely: the pressure to perform fraud, the opportunities that can be utilized as well as the justification for such action. In principle Fraud has three elements, namely: the act that is against the law (illegal acts); carried out by people from inside and / or outside the organization as well as done for personal gain and / or groups while on the other harm others either

directly or indirectly. Application of the principle of Know Your Employee by the bank management is one way to control the risk of fraud from the aspect of human resources. On the other hand, people in the customer service aspects of the bank is one of the critical success factors of the service because people act as executor of the service and the first line of service. Synchronization anti-fraud strategy and customer satisfaction can be realized through the application of the principle of Know Your Employee by the bank management (Ferry, 2012). Therefore, how the principle of Know Your Employee imposed on the banking industry, so as at least to reduce / suppress fraud in the field of banking.

2. THEORETICAL BASIS The principle concept of Know Your Employee Application of the principle of Know Your Employee in banking practice, especially in Indonesia effectively and efficiently, it is expected the creation of banking risk management efforts are oriented to customer service. It will be up to the

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success lies in the application of the principles contained in the banking world and rely on the high commitment and seriousness of all workers and the management of banks, particularly because it involves the sensitive issue of human resource management in operational and banking services.

Another important thing to do is to create awareness and understanding of the importance of fraud prevention activities, by improving and increasing the quality of customer service. It was strongly related to better provide an understanding of the importance of introspection to know more about the resources in a bank as a professional banker. However this is not just a responsibility of the Bank's management, but also the responsibility of all employees of the Bank (Ferry, 2011).

3. ELEMENTS AND CLASSIFICATION FRAUD

From the definition or understanding of Fraud above, it is illustrated that the definition of fraud is very broad and can be seen in some of the categories of fraud. But in general, the elements of fraud (whole elements must exist, if there are none then it is considered cheating does not occur) are:

1. There should be one statement (misrepresentation); of a past (past) or current (present);

2. Fact is material; committed intentionally or without calculation (make-knowingly or recklessly);

3. With intent to lead a party to act; aggrieved party must act (ACTED) to any such statement (misrepresentation);

4. That adverse (detriment). Uniform Occupational Fraud Classification System,

The ACFE divides fraud within three (3) types or typologies of works, namely:

Irregularities on assets (Asset Misappropriation);

1. Asset misappropriation include abuse / theft of assets or property company or any other party. This is a form of fraud that is most easily detected because it is tangible or can be measured / calculated (defined value).

2. False statements or false statement (Fraudulent Statement);

3. Fraudulent statements include actions taken by an officer or executive of a company or government agency to cover the actual financial condition by performing financial engineering in the presentation of its financial statements to gain or perhaps analogous to the term window dressing.

4. Corruption

Type of fraud is the most difficult to detect because it involves cooperation with other parties such as bribery and corruption, where this is the most common type occurs in developing countries that law enforcement is weak and still lack awareness of good governance so that the factor of integrity still questionable. Fraud of this kind often could not be detected because the parties to work together to enjoy the advantage (symbiosis mutualism) Including abuse is abuse of authority / conflict of interest, bribery (bribery), receipt of unauthorized / illegal (illegal gratuities) and economic extortion. While Delf (2004) to add one more typology of fraud that cybercrime.

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This type of fraud most advanced and carried out by those who have special skills that are not always owned by other parties. Cybercrime will also become the most feared types of fraud in the future in which technology is developing rapidly and sophisticated.

4. DATA COLLECTION AND ANALYSIS TECHNIQUES

In obtaining the data required both qualitative preliminary observations will be conducted to determine the state of research areas for assessment and collection of secondary data from relevant institutions, ie commercial banks either state banks, private banks, and bank local governments.

Analysis technique used is qualitative method. Qualitative methods are used for descriptive analyzes of the results of interviews and questionnaires submitted by the respondents. The

result whether implementation has been in accordance with the rules / regulations that have been made or not. Therefore, it will be made a conclusion on the existence of the principle of Know Your Employee Fraud with the existing bank.

5. RESULTS AND DISCUSSION The study on the principle of Know Your Employee is found in general to guide management in assessing after observe and pay attention to the bankers, especially about the behavior, attitude, and appearance and lifestyle as part of the consideration in the assessment of the performance of the bankers. Followed by identified files, and interviews as the primary data that exist on the ground in the form of some kind of fraud in the banking sector, which is done by the bankers.

Table 5.1 The informant Against Abuse and Banking Crime

The data above shows some of the perpetrators of crimes related to bank fraud in some banks that managed the author interviewed in the Penitentiary. The informant is serving a premises-related actions that have violated banking regulations has even entered

the realm of banking crimes. The author conducted interviews at the Women's Penitentiary in Bandung, Surabaya Medaeng Penitentiary. From some informants, one of them is not willing to live in the interview, so that the party represented by legal counsel.

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Table 5.2 Interview results Offenders of Banking Crime

Table 5.2 above shows there is still some information submitted by the informant, not the author to convey as a whole, because there are still some supporting data will be complete.

6. CONCLUSION Fraud as part of a crime, especially a crime in the banking sector has been widespread. The existence of a wide range of banking regulation and the like, yet also able to reduce the number and the level of crime in the banking sector in Indonesia. It was a preliminary conclusion, the more effective the principle of 'know your

employee in the execution of banking activities, then as a draft recommendation the need for regular monitoring and evaluation carried out continuously by constantly adapting the development of the banking community.

7. BIBLIOGRAPHY [1] Abrar, Rifqi, dkk. 2014. Fraud

Dalam Dunia Perbankan. Tugas Hukum Dagang. Jurusan Akuntansi Poilitenik Negeri Jakarta.

[2] Fauzi, Edi. 2012. Prospek Efektifitas Strategi Anti Fraud Bank Indonesia (2011) Sebagai Bentuk Pencegahan Kejahatan Perbankan (Suatu

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Penelitian Teknik Delphi Pendapat Para Pakar Perbankan). Tesis. Departemen Kriminologi Fakultas Ilmu Sosial Dan Ilmu Politik Universitas Indonesia.

[3] Meliala, A. 1993. Menyingkap Kejahatan Kerah Putih. Jakarta: Pustaka Sinar Harapan.

[4] Mustofa, M. 2013. Metode Penelitian Kriminologi. Edisi Ketiga. FISIP UI Press.

[5] Nitibaskara, T. R. 2001. Ketika Kejahatan Berdaulat. Jakarta: Peradaban. Priliasari, Ema. 2010. Mediasi Perbankan Sebagai Wujud Perlindungan Terhadap Nasabah Bank. Diakses di file:///E:/jurnal bisnis-bank.htm. Pada 24 Agustus 2010.

[6] SBM, Nugroho. 2011. "Mencegah Kejahatan Perbankan."Artikel. Diakses pada 1 Mei 2011 di http://nugroho-sbm.blogspot.com/2011/05/mencegah-kejahatan-perbankan.html.

[7] Setiawan, Wibowo, Nanto. 2010. ICW Dan Reaksi Sosial Terhadap Kejahatan Korupsi Di Indonesia.Diakses pada 1 Oktober 2012. Di http://takur21.wordpress.com/2010/08/30/icw-dan-reaksi-sosial-terhadap-kejahatan-korupsi-di-indonesia/

[8] Sie Infokum – Ditama Binbangkum. 2011.

[9] Singleton,Tommie;King Brett, et al. 2003.Pro-ethics activities: Do they really reduce fraud?.The Journal of Corporate Accounting & Finance14.6 (Sep/Oct ): 85-94.

[10] Sjahdeini, Remy Sutan. 2000. Tindak Pidan Perbankan; Course Material. Pada Pascasarjana Ilmu Hukum Universitas Indonesia.

[11] Soelistianingsih, L. 2011. Kejahatan Bank: Bagaimana Melindungi Nasabah. Jurnal Nasional. Diakses pada 7 Juni 2011 pada www.jurnas.com.

[12] Triana, Ferry. 2012. Know Your Employee In The Banking Practices. Blogdetik.com. Diakses pada 16 Maret 2013.

[13] Wiryosukarto, Darto. 2012."Agar BPD Aman Dari Fraud." No. 396 Vol.XXXIV. Diakses pada 7 Maret 2012 6667di http://www.bi.go.id/web/id/ Tentang + BI/Perpustakaan/Periodikal/default.aspx?iddl=71288.

[14] Undang-Undang Perbankan Nomor 10 Tahun 1998 dan Peraturan Bank Indonesia Nomor 8/4/PBI/2006 tentang Good Corporate Gocernance bagi Bank Umum.

[15] Yozami,Agus.M. http://www.hukumonline.com/berita/baca/lt4eea0f243acda/bi- keluarkan-surat-edaran-anti-fraud. Diakses tanggal 10 November 2014.

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The Use of Digital Tool ‘Write to Learn’ in Indonesian EFL Classroom: Working With Essays

Yogi Widiawati

English Lecturer, Electronics Engineering Department State Polytechnic of Jakarta [email protected]

Abstract

A myriad research has demonstrated the use of digital tool as an approach to teaching of English as an foreign language (EFL), but little research on this topic of interest has been undertaken in the Indonesian secondary school and higher education context. Particularly, the use of digital tool as practicing and examining students’ writing remains under-explored in this educational setting. With these in mind, this research presents an empirical study that looks into to what extent the deployment of a digital tool mediates multimodal learning tasks in the EAL classroom. The study specifically examines challenges and benefits of using the digital tool “write to learn” to develop students’ writing and reading competences. The study also looks at the roles of teacher and students in the entire learning process. A total of 80 polytechnic students volunteered to participate the study. Individually, they were assigned to perform a series of tasks, including (1) connecting to “write to learn” website, (2) reading articles and instruction in, and (3) writing essays. Empirical data were garnered from postings, students’ writing and students’ interviews. Drawing on these data, the present chapter reports on four major findings, that is: (1) drafting and negotiating strategies for writing essay creation, (2) framing the use of language in composing, (3) discussing the result essay creation and improvement, and (4) positioning roles of teachers and students in the entire learning process Keywords: writing competence, digital tool, EFL 1. INTRODUCTION The teaching of English at higher educational institutions have many significant changes and development. It means that the traditional teaching methods have been left recently. The development of technology has influenced the Learning-Teaching Process. One of the influences is that the teachers of EFL (English as Foreign Language)will decrease their burden in preparing the teaching aids by using the computer. The four areas of competences (Reading, Writing, Listening and Speaking) will be assisted by using multimedia.

For mastering good English, someone must have learn four (4) competencies, Those competencies are (1) Listening, (2) Speaking, (3) Reading, and (4) Writing. Those are obliged to be taught to students of

EFL. So they will be fluent and competent in English (Dudley-Evans, 1989). By mastering all competencies, learners of EFL are able to communicate in English well.

One of the competencies which is most difficult to master is writing. This happens because this competence needs some aspects, such as: structures, grammars, vocabularies, and writing styles. According to Dudely-Evans (1989), writing is considered the most difficult skills because the EFL learners need some knowledge and practices to be perfect. Besides structures and grammar, it also needs the proper choice of words or diction, cohesion and coherence. This will take time for learners of EFL to master the writing skill.

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In higher educational institution, like polytechnics, English subject is just allocated only 3 (three) or 4 (four) hours per week. The teacher of English must work very hard to achieve the goal of the subject every semester. This will not be very easy for them. So they must be tactful to teach 4 (four) competencies every semester. By using multimedia, teachers have been helped. It means that the teaching-learning process are going more smoothly and teachers will accomplish their duties faster, more easily and significantly.

2. PURPOSE OF STUDY The result of study are expected to:

a. Be able to assist students of polytechnics, especially in making essay writing well;

b. Be able to assist students to apply technical effective writing;

c. Increase the lecturers’ and students’ ability in IT so the IT implementation will be applied faster;

d. Produce the learning outcome, e.i:soft skill in writing essay which will be beneficial in their work.

3. URGENT OF STUDY To face the globalization era and AFTA which will be applied at the end of this year (2015), English will be becoming very important tool to communicate with other people from other countries to do business, education, promote and many things. So in this matter, educational goals must match with the needs what the world wants. In this case, teachers of English must prepare the graduates to be ready to work in industry whereas there are so many competitors from other ASEAN countries coming to Indonesia. In order to compete, Indonesian students should be able to

appear in both national and international level. In academic level, Indonesian students must be able to represent themselves in international articles or journals. By using this digital tool, students will be assisted to learn and increase writing skills in English.

4. THEORETICAL STUDY Writing skill is one of the skills which is sometimes ignored by teachers of EFL because it is considered to waste time. In fact, this skill represents the ability of EFL learners to combine all skills studied. Therefore, the teaching of this skill must be interesting. So the students will be encouraged to learn writing more often. The teaching of writing must be matched and appropriate with the students’ ability by considering some components, such as: the duration of learning this language, vocabularies, language styles (Hoch, 2002).

Besides those things above-mentioned, nowadays, students are encouraged to learn independently. They should learn something by themselves. Because studying time at campus is not enough to learn. They need additional time to enrich their knowledge. To overcome this problem, they must learn by themselves. By combining these aspects, there is a digital tool will help students to learn writing more effectively. This digital tool is kind of software which is accessible through internet. This will overcome students’ problems in writing. In this case teachers of English just act as the facilitators. But they are also acting as role model (Miarso, 2004;8). This study finds that the digital tool “Write-to-Learn” is able to overcome the students’ problem in writing in English.

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To develop and assist the teaching process of English in Politeknik Negeri Jakarta, this digital tool is one of the ways to overcome students’ problems in writing. By using this digital tool, students will learn to write essay in fun way. This software assists them to write better. It is hoped by using this software, students will increase their ability in writing. As an effect, their score of English will be improved too.

5. THE METHODOLOGY OF THE STUDY

This study was conducted in the study program of Industrial Electronics of Elecronic and Electrical Department. There is no specific reason in choosing the objects. This is because the researcher is teaching in this department. So it is easier for me to conduct the research.

This research was conducted in 3 (three) months with the procedures of (1) planning, (2) implementation of the study, and (3) Report. The planning was started by listing all the needs of students in learning writing skills. Then the researcher was

choosing the topics and let students choose one of them. During this stage, lecturer was teaching them how to write essay well and effective. After that, the following month the researcher was asking students to open the tool by using their own password. This password was taken from the provider, Pearson Company who owns this system. The research was also acting as the teacher. In doing this, teacher was conducting this research during class hour that was 3-learning-hour.

In practice, students made the essay after teacher had finished explaining the instruction, the prompts, and the procedures. They made the writing in a few hours and they were able to revise the writing if they make mistakes. Teacher will see the revision easily how many times the students make the revision. After teacher saw all the revision, teacher would make comments and score of the essay. Students would easily see it by opening again their writing. Teacher can set the menu as follows:

Teacher Menu

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6. CONCLUSION By setting the menu, teacher is able to do what he/she aks the students will do with the writing. This will ease both teachers and students to check their writing. The result also amazed and satisfied both teachers and students because both of them have benefits form the use of digital tool of “Write-to-Learn”. Both teacher and students can save time and students can practice more often and will improve their writing skill.

7. BIBLIOGRAPHY [1] Hutchinson, Tom, 1987. English for

Specific Purposes: A Learning Centred Approach, Cambridge: Cambridge University Press

[2] Miarso, Yusufhadi, 2004. Menyemai Benih Teknologi Pendidikan.Pustekom, Diknas. Jakarta

[3] Dudley-Evans, 1989. English Competencies. Cambridge. Cambridge University Press.

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The Language Unit and The Development of Theme Rheme in The Feature Articles in English and in Bahasa Indonesia

Ninggarwati, Ina Sukaesih

Politeknik Negeri Jakarta Jl. DR. G Siwabessy, Kampus UI Depok

Abstract

This research aims to find out common language units used as the theme of English and bahasa Indonesia feature articles found in English language and bahasa Indonesian newspapers and magazines and the pattern of theme rheme in each paragraph of the articles. The research employed descriptive-qualitative approach for multiple cases. The data gathered from the feature articles in Kompas and Jakarta Post newspapers, and Gadis and Swa magazines.The data gathered from the documents are obtained through content analysis. The findings of the research indicate that: the language units used as the theme both in the bahasa Indonesian feature articles and in the English feature articles are mostly nominal phrase, while the theme and rheme patterns in both language feature articles almost the same. Both in English articles and in Indonesian articles, multiple or combination patterns is dominating. Key words: language unit, theme and rheme patterns, feature articles in English and in bahasa Indonesia 1. INTRODUCTION Common industry’s demand for its workforce is the ability to communicate both in speaking and writing. Therefore as a vocational school, State Polytechnic of Jakarta considers communication ability as a competence which should be mastered by its graduates.

Writing as one skill of communication beside speaking is considered more complex (Endang et.al: 2010). This has led to the need for more serious attention and regular practices. More regular practices will strengthen the knowledge mastery of sentence structure and language units needed to write (Rustipa :2010).

English and Indonesian sentence structures have at least two elements, namely subject and predicate. Subject is the actor, while predicate consists of verb phrase and another elements. Those elements build a sentence; and sentences build a text.

The smallest language unit is phonology/graphology, going up to lexicogrammar, text structure and

discourse text. In physical form, language is always in the form of a text, a language unit conveying contextual meaning (Wiratno:2012).

Theme as a part of a sentence is in the form of language unit. In developing a theme, a writer needs to posess the knowledge of language units. The language units mentioned and used in this research are nominal group, adverbial group or prepositional phrase, and nominalization(Rustipa:2010)

A good paragraph, which has coherence, cohesion, unity dan completeness, can be developed from a topic sentence using theme rheme patterns. While the theme rheme patterns known are constant, simple linear and variation of both. Kecenderungan pengembangan pola tema dalam teks feature akan dianalisis berdasarkan ketiga pola dimaksud.

The purpose of this research is to find out the differences of language and theme rheme patterns used in writing feature articles in English and Bahasa

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Indonesia. The documents used in this research are feature article, both in English and in Bahasa Indonesia, found in newspapers and magazines

2. TINJAUAN PUSTAKA There are three levels of language units starting from the lowest: phonology/graphology, going up to lexicogrammar, text structure and discourse text (Wiratno: 2010). While text is a language unit which has meaning and can be in the forms of word, phrase, clause and a group of caluses(paragraph) and a group of paragraphs.

a. Language Unit

The language unit which may take the position of text theme can be nominal group, adverbial group or prepositional phrase, and nominalization.

Nominal group is a group of word which head word is a noun. This headword is modified by another words, may be before and or after(Wiratno, Borjars et al).

Adverbial group atau prepositional group is a group of words strated by a preposition., giving an explanation of time, place and manner. Nominalization is transforming any other wordclasses into noun.

b. Paragraph

A paragraph consists of several clauses which are related one to another, building a complete idea. A well-developed paragraph should have coherence, cohesion, unity dan completeness(Halliday and Hassan, Reid, Boardman).

Coherence means how ideas are related to one another in a paragraph. Cohesion means how supporting ideas relatedly and completely support the main idea

in the topic sentence. Unity means that all the ideas in the paragraph develops one idea,; they are supporting the main idea. Completeness means that the main ideis supported by all the supporting ideas to build a complete idea.

c. Theme Rheme

Theme is initial information indicating what what ideas will be developed; it is the initial indication of a text, whether it is written or oral,while rheme is the following information , which is considered as additional information and or less important than the one in the theme (Eggins:2004), Butt et al.:2001). Applying theme rheme patterns will lead to a writing coherence dan cohesion(Bloor & Bloor, 1992; Christie & Dreyfus, 2007; Wang, 2007). Theme is an information which has probably be known by readers or listeners which can directly involve them in the context, whereas rheme is something new accompanying the theme(Fries:2013).

The following is an example of a theme rheme in a sentence.

In the article, “”Choosing our genes”, Stock writes that technological advances will bring meaningful changes to our offspring and scientific revolutions that may make fundamental changes in the human species.

The underlined phrase is the theme of the clause, and the rest is the rheme. It can be seen, that there is no clear relation between the theme and rheme, in the case of the relation between “choosing our genes” and “technological advances which will change the

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offspring and scientific revolutions”. The “choosing our genes” is probably familiar to the readers or the listeners, while “technological advances which will change the offspring and scientific revolutions” is a new thing for them..

There are three theme development patterns mentioned by Martin dan Rother (Mulatsih:2006):

a. Theme reiteration / constant theme pattern

This pattern shows a constatnt movement of theme, from the first clause to the last clause in a paragraph.

b. A zig zag linear theme pattern

This shows that the rheme is taken as the theme in the second clause.

c. Multiple theme / split rheme pattern

In this pattern, rheme is occasionally taken as the themes in the following clauses.

3. METHODOLOGY This is a qualitative descriptive research. It is a case study which analyses feature articles in the English and Indonesia newspapers and magazine published in Jakarta as the source documents.

Data taken from the sources are analysed based on content, specifically the language units and the theme rheme patterns.

Purposive sampling is used in determining the feature articles from English and Indonesian newspapers and magazines published in Jakarta.

The analysis started with the domain step,in which the process of selecting

feature articles from the newspapers and magazines was carried out. Then in the taxonomy step, when the data are analysed to find out the language units used and the patterns of theme rheme. The results are displayed in tables.

4. THE RESULT AND DISCUSSION

4.1 Language Unit In English Feature Articles

The following table shows the language units used in the English feature articles

No Language Units Number of usage

1 Nominal Group 28 2 Adverbial Group 17 3 Nominalization 6

Total Number 51

Twenty-eight (54,90%) of 51 sentences using nominal groups to start the sentences, while 17(33,33%) use adverbial group, and six(11,86%) use nominalization. The three types of language units mentioned are in line with the research result of Katrina Ruspita stating that the language units used to start sentences are nominal group, adverbial group dan nominalization.

The following are examples of the usage of nominal group, adverbial group, and nominalization.

a. Nominal Group Harper’s Bazaar Singapore chief editor Kenneth Goh, who was one of the guest judges for the contest’s third season finale, found Gani’s strong and confident walk – which won her the coveted title, the first for an Indonesian model – similar to a tigress stalking her prey.

Nominal group or nominal phrase may consist of pre-modifiers, headword and post-modifiers. Pre-modifiers can consist of Article (Art),

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Demonstrative (Dem), Pronoun (N), and Adverb (Adv); the (Pron), Number (Num), Adjective (A), Genitive (G) (Kristanto, : 2007).

Harper’s Bazaar Singapore chief editor Kenneth Goh; Kenneth Goh is ”headword” modified by Harper’s Bazaar Singapore chief editor which is a “noun”. The pre-modifiers is a noun functioning as a modifier, modifying headword.

b. Adverbial Group In 2004, Alicia published a book of poems titled tears for Water-Songbook of Poems and Lyrics.

Adverbial group or prepositional phrase is a phrase started with a preposition. From the example, it begins with “in” showing time reference.

c. Nominalization The bullying started when she entered junior high school.

Nominalization is defined as : “a type of word formation in which a verb or an adjective (or other part of speech) is used as (or transformed into) a noun (Nordquist: 2013)”.

In the example, it can be seen that the “gerund” to bully is transformed into bullying to get the noun form..

In Indonesian Feature Articles

The following table shows the language units used in the feature articles in bahasa Indonesia.

No Language Units Number of usage

1 Nominal Group 29 2 Adverbial Group 16 3 Nominalization 6 4 Verbal Group 1

Total Number 52 Twenty-nine (59.6%) use nominal grouto begin the sentences; 16

(31.37%) use adverbial group; and six (5,76%) use nominalization and one (1,92%) uses verb satu dari 52, 1.92%.

The following are the examples of those language units.

a. Nominal Group Para ahli lukisan yang mengklasifikasikan lukisan Aelita ke dalam aliran abstract expressionism mengatakan bahwa hasil karya bocah lucu ini trelihat unik karena ada teknik automatism tapi dengan efek 3 dimensi.

The nominal group, which headword “ahli” is modified by “para” as a pre-modifier and “lukisan” as post-modifier.

b. Adverbial Group Di usia 24 tahun, pemilik nama lengkap Audrei Kiko Daniel ini menarik perhatian karena wajahnya yang cantik dan kepribadiannya yang bubbly dan hangat.

The sentence uses adverbial phrase showing time reference.

c. Nominalization Penampilan Jane di sitcom yang diproduseri Emily Kanek ini banyak diuji kritikus.

Nominalization is used by forming the word “tampil” into “penampilan”, from a verb into a noun.

d. Verbal Group Kenalan yuk, sama cewek yang sekarang sering disebut-sebut sebagai the hottest girl in Japan ini.

This is used not to modify the subject or the actor of the sentence, but it is an interaction made by the writer with his readers.

4.2 Theme rheme Patterns In English Feature Articles

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The theme rheme patterns used in the articles are simple linear pattern, constant dan combination patterns. Simple linear pattern shows the consistency of using the rheme from preceding clause as the theme of the following clause. While constant pattern takes the theme from the preceding clause as the theme in the following clause. The third pattern is the variation of using simple linear pattern dan constant pattern. Five paragraphs are developed using a variation patterns, four using constant patterns, and three applying simple linear patterns.

No. Number of Paragraphs

Theme Rheme Patterns

1 3 Simple linear 2 5 Variation 3 4 Constant

Here are some examples.

Amid the constant bullying, Gani developed a passion for fashion. Her parents, however, did not support her wish to study fashion and pushed her to study English Literature at Sanata Dharma University in Yogyakarta instead.

From the example, we can see that the theme is “amid the constant bullying”, while the rheme is “Gani”. In the second sentence, the theme comes from the rheme.

The following is an example of theme rheme variation pattern

Not only is she a multi-talented R&B singer-song writer, pianist and actress, Alicia Keys is also a poet. In 2004, Alicia published a book of poems titled tears for Water-Songbook of Poems and Lyrics. The book consists of a series of unpublished poems she has written as well as poems that have inspired her to create some of her biggest hits.

The theme in sentence one is “Not only is she a multi-talented R&B singer-song writer, pianist and actress”. In the second sentence, there is a different theme, i.e. in 2004, Alicia…”, and the following sentence takes the rheme from the second sentence as the theme.

In Indonesian Feature articles

from the 13 paragraphs, there are nine using variation patterns; two simple linear; and two constant.

No. Number of paragraph

Theme reheme pattern

1 2 Simple linear 2 9 Variation 3 2 Constant

The following is an example of simple linear pattern. It can be seen, how the rheme of previous sentences are used as the theme in the following sentences.

Para ahli lukisan yang mengklasifikasikan lukisan Aelita ke dalam aliran abstract expressionism mengatakan bahwa hasil karya bocah lucu ini trelihat unik karena ada teknik automatism tapi dengan efek 3 dimensi. Keunikan lukisannya ini yang membuat Aelita terkenal hingga ke luar Australia. Bahkan ketika dia mengadakan pameran di New York, Amerika serikat, tahun 2012 lalu, Aelita berhasil menjual lukisan termahalnya seharga $ 30,000 (sekitar Rp. 300 juta).

Here is an example where a constant theme rheme pattern is applied.

Jane Levy berasal dari keluarga seniman. Ibunya, Mary Levy adalah pelukis. Sedangkan ayahnya, Lester levy adalah musisi.

The following is the example using variation pattern.

Umur boleh masih kecil, tapi kemampuan melukisnya sudah setaraf

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pelukis kelas dunia. Berapakah usia pelukis asal Australia ini? Baru 6 tahun saja Yup! Karena kedua orangtuanya adalah pelukis, jadi Aelita sudah terbiasa bermain dengan cat dan kanvas sejak mulai belajar merangkak. Cewek mungil kelahiran 9 Januari ini sudah mulai melukis sejak usia sembilan bulan, lho.

The use of variation pattern can be seen from the example. The theme is not always taken from the rheme, but it also is taken from the previous theme, even from another, which is new or has not been mentioned before.

The usage of variation patterns in feature articles can be understood as the effort made by the writer to make the writing more alive. The monptony may come up when the constant pattern and simple linear pattern are used in an article.

4.3 Closing The followings are some conclusions drawn from the results of the analysis.

a. The language units used in the English feature articles are: nominal group, adverbial group dan nominalization. In Indonesian articles, it is also found a verbal group.

b. The mostly frequent usage of the language units are nominal group, adverbial group dan nominalization respectively.

c. The theme rheme patterns used in the articles are variation pattern, constant and simple linear.

d. There is no significant differences concerning the language units and the theme rheme patterns in the feature articles both in English and in Indonesian

4.4 Suggestion and Implication Below are some suggestions which can be considered.

a. The usage of nominal group, adverbial group, and nominalization can be used to begin a sentence.

b. To maintain the coherence, cohesion, unity, and completeness, the theme rheme patterns of variation, constant, and simple linear should be used.

c. Some similar research may be performed concerning the theme rheme patterns and language units in different different types of articles.

5. BIBLIOGRAPHY [1] Boardman, Cynthia A. Jia

Frydenberg. 2002. Writing to Communicate. Newyork: Longman

[2] Borjars et al.2001. Introducing English Grammar. New York : Arnold. Oxford University Press Inc.

[3] Brown, H. Douglas. 2001. Teaching by Principles: An Interactive Approach to

[4] Language Pedagogy (2nd edition). New York: Longman.

[5] Bloor, M., & Bloor, T. (1992). Given and new information in the thematic organization of text: An application to the teaching of academic writing. Occasional Papers in Systemic Linguistics, 6(1), 33-43.

[6] Butt, David et al. 2000. Using Functional Grammar. An Explorer’s Guide. Sydney: National Centre for English Language Teaching and Research.

[7] Dubois, B.L. 1987. A Reformulation of Thematic Progression Typology. Text 7 (2) (89-116).

[8] Cheng, F. W. (2008). Scaffolding language, scaffolding writing: A genre approach to teaching narrative writing. The Asian EFL Journal, 10(2), 167-191.

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[9] Christie, F., & Dreyfus, S. (2007). Letting the secret out: Successful writing in secondary

[10] English. Australian Journal of Language and Literacy, 30(3), 235-247.

[11] Eggins, S. (2004). An introduction to systemic functional linguistics. London, England: Continuum.

[12] Fries, P. H. (1995). Themes, methods of development, and texts. In R. Hasan & P. H. Fries (Eds.), On subject and theme: A discourse functional perspective (pp. 317-359). Amsterdam, Netherlands: John Benjamins.

[13] Halliday, M.A.K and Ruqaiya Hasan. 1976. Cohesion in English. London: Longman

[14] Halliday, M.A.K. 1994. a. Language as Social Semiotic. Newyork: Edward Arnold.

[15] Halliday,M.A.K.,2004, An Introduction to Functional Grammar, Third Edition, New York, Oxford University Press Inc.

[16] Martin, JR. et al. 1997. Working with Functional Grammar. London: Arnold.

[17] Mulatsih, Sri. 2006. Employing Thematic Development in Teaching Paragraph-based Writing. TEFLIN Conference.

[18] Rustipa Katarina,2010, theme rheme organization of learners’texts, Dinamika Bahasa dan Ilmu Budaya, Vo 4

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Role of The Institution of Zakat and National Zakat Agency in Efforts to Alleviate Poverty in Indonesia

Darna1, Bachrul Muhtasib2

D4 Studies Program of Financial and Syariah Banking Accounting Departement State Polytechnic of Jakarta (PNJ), Campus UI Depok 16425

Email: [email protected], [email protected]

Abstract

This study aims to review of the role of Lembaga Amil Zakat (LAZ) and Badan Amil Zakat Nasional (BAZNAS) in an effort for poverty alleviation programs and improve the welfare. The method used in this research is descriptive qualitative analysis through in-depth interview to the manager of LAZ, expert and supported by annual report data. The sample in this study is obtained using purposive sampling on three national LAZ (Dompet Dhuafa, Rumah Zakat, BMH) and BAZNAS. The data analysis shows that the three LAZ and BAZNAS have different portions and different ways in the utilization of funds for community development programs that can overcome poverty. The total funds disbursed for poverty alleviation programs is still relatively small compared to the total funds of zakah collected. Poverty alleviation programs observed in this study are as follows: educational programs and economic field empowerment, mainly in the form of trading business, farm or business agriculture. Overall, despite contributing positively towards poverty alleviation and showing annual increase, LAZ and BAZNAS contribution is still relatively low and insignificant when we consider the national poverty rate. This is due to the large number of poor people and the vast area of Indonesia. However, when viewing the huge potential of zakat funds available, the role of the Institute of Zakat and National Zakat Agency in efforts to alleviate poverty in Indonesia is still very likely to be increased. Key Words: poverty alleviation, utilization of zakat, the role LAZ and BAZNAS

1. INTRODUCTION One of the fundamental problems of economy in Indonesia is the high number of poor people. Referring to the data released by BPS in September 2013, the number of poor people in Indonesia was 28.6 million people or 11.47%. The criteria used by the poverty line is $ 308 286 BPS / capita / month. When using the criteria of the World Bank of $ 2 USD per day, the number of poor people in Indonesia reached 100 million people. While the unemployment rate in August 2013 according to the BPS is 6.25% of the total Indonesian population, or 7.39 million people. Although according to the BPS that the level of poverty and unemployment in the last five years continues to decline, but clearly we can still see the poverty that occurs among small communities, especially in urban areas.

A fact that irony, which is contrary to the condition of Indonesia which Allah blessed with enormous natural wealth. In many areas we are witnessing the phenomenon of exploitation of natural resources that are not controlled, forests are exploited indiscriminately, causing losses to the state trillions of rupiah annually. Similarly, natural resources such as minerals and other mineral goods also can not be optimized utilization for the welfare and prosperity of society. The fact indicates that most of the wealth is concentrated in the hands of a few people who have the capital, thus creating a huge gap between the poor and the rich. In the Quran Allah has reminded us that the concentration of wealth in a few people are in a state of very hated.

Related to the high number of poor and wide disparities of income

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distribution, zakat is one solution that can be used to redistribute wealth from the rich to the poor. Funds collected from zakat can be used to solve the problem of poverty. Based on data from the Islamic Development Bank in 2010 the potential of zakat in Indonesia reached 100 trillion rupiah, while infak (sedekah) reaches 3 trillion rupiah. A very high potential of this is something of necessity, because Indonesia is the country with the largest Muslim population in the world. If this potential can be realized in the form of funds that can be collected by amil zakat institutions, both LAZ (Lembaga Amil Zakat) managed by the private sector, as well as BAZNAS (Badan Amil Zakat), is not an impossible that poverty in Indonesia can be alleviated significantly. This is consistent with several studies conducted by Sauqi Beik (2009), Tsani (2010), Hartoyo and Purnamasari (2010), and Anriani (2010) which revealed that zakah shown to reduce the number and percentage of poor families, as well as reduce the depth and severity poverty.

Zakat fund management these days is actually the seed of strengthening the social system towards civil society. It is indicated through the number of heads Institution National Zakat (LAZNAS) which offers a wide range of humanitarian programs. They are present not just a trend over a euphoria, but there are noble ideals. The urge to give the best for the community through productive activities, proved able to overcome the burden of the people of the crush economic problems. It would not be possible without the kindness and awareness of the hearts of the tax payers (muzaki) supported by amyl professional, trustworthy and accountable. In modern zakat

management, Amil has a very important position in packaging programs or products that are empowering for mustahik.

One of which was considered a very big influence on the concept of zakat, is related to the concept of management. During this time, utilization of zakat still be shaped konsumtif- charity that does not cause significant social impact, and merely temporary relief. Indeed, this reality can not be blamed, because to obtain maximum efficiency, religion does not regulate how it should and should manage zakat. However, it does not mean we are justified silent and not doing creative breakthroughs , given the times has called us to be able to interpret the arguments ma'qul zakat al ma'na, with the aim that zakat can be managed professionally

Based on the data (Foz, 2011) LAZ number is 400 units, this should be an option for people to pay their zakat in addition to the Badan Amil Zakat (BAZ) formed by the government which number around 50 956 units (BAZNAS, 2009). In addition amil zakat institutions can be expected to be a medium for bridging the zakat potential is so large in Indonesia. It is estimated that there are around 600 OPZ (Zakat Collectors Organization) both Bazda and UPZ (Unit Gatherer Zakat) that has been established, both based mosque or companies that have not yet been registered in Foz (Forum Zakat). Nevertheless, the development of national zakat management institutions (LAZNAS / BAZNAS) has not been accompanied by the interest and awareness of the public to pay zakat to the agency. Thus, the management of zakat is not optimal and public confidence is still low on zakat management institutions. Such a situation is very unfortunate because Indonesia has a

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very large zakat potential beyond the neighboring countries such as Malaysia and Brunei, nevertheless can be realized only around three trillion per year (BAZNAS, 2013).

The existence of institutions nationwide zakat become a central issue that is very attractive in the process of poverty alleviation. The question in research on the management of zakat by LAZNAS and BAZNAS are:

How LAZNAS and BAZNAS utilize zakat funds, in an effort to reduce the number of poor people in Indonesia?

How utilization of Zakat funds by LAZNAZ and BAZNAS in education and economic empowerment were able to break the chain of poverty in Indonesia?

2. METHODOLOGY This study is a qualitative study with a descriptive approach. Data were obtained from the National LAZ, among others Dompet Dhuafa (DD), Rumah Zakat (RZ), Baitul Maal Hidayatullah (BMH) and BAZNAS. Data used in this study are primary data that is backed up with a secondary data. Types and ways of collecting data is as follows: a) Primary data, the data associated with low public confidence to the management of zakat fund and the low realization of fund raising of zakat by LAZ and BAZNAS obtained through in-depth interviews with various speakers comprising from; 1) experts of zakat; 2) the leader or manager of national amil zakat institutions and parties concerned; b) Secondary Data collected by the data collecting documentation, journals, books and research reports related to the mobilization and utilization and charity. In addition secondary data

relating to the distribution of funds, for instance; how much for managers (amil), how much is used for education, how much is used for health, how much is used for social development and how much to productive economic activity. All data obtained from the annual reports of LAZNAS and BAZNAS.

3. RESULT AND DISCUSSION In general, based on observations of data documentation and studies literature, that the utilization of Zakat funds by LAZ and BAZNAS can be classified into four categories. First is the category of traditional consumptive utilization of zakat. In this category alms distributed to those who deserve it to be used directly by the individual, such as the tithes given to the poor to meet their daily needs or zakat treasure given to victims of natural disasters. Second is category of consumer creative charity is charity which is manifested in the form of goods. For example embodied in the form of school supplies, scholarships and other educational assistance. Third is category of traditional productive zakat, utilization of zakat in the form of productive goods such as goats, cows, sewing machines, carpentry tools and so on. Charitable giving in this form will encourage people to create a business or provide new jobs for the poor. Fourth is a creative productive categories utilization of zakat are realized in the form of capital that can be used to construct a social project or to assist or increase the capital of a merchant or a small businessman. Utilization of Zakat funds in the third and fourth category should be developed by LAZ and BAZNAS, because a model like this is approaching the utilization of zakat nature, whether contained in its function as a worship and its position as a social fund.

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Dompet Dhuafa Program

Utilization of zakat programs currently undertaken by LAZ Dompet Dhuafa includes four categories as mentioned above, namely ranging from traditional consumptive to productive creative. This is done because it follows the provisions of the Qur'an (Surah al-Tawbah 9:60) that the community groups as mustahiq or are eligible to receive zakat, which in terms of fiqh called ashnaf tsamaniyah (group of eight). That is, people who are not able to meet the needs of daily life and begging (fakir), the needy are not begging so that people do not know (the poor), the governing body of zakat (amil), classes are expected to be sympathetic to Islam in order his Islam more robust (mu'allaf), the slave (Raqib), those who bear the burden of debt that can not be paid back (gharim), people who fight in Allah's way (sabilillah), and traveling (traveler) who ran out of stock (ibnu sabil ).

Of the four main programs undertaken by poor wallet, which has the potential to alleviate poverty are education, economic and social development. Education program of Smart Ekselensia Indonesia located in Parung-Bogor educate children from poor families to junior high school to senior high school and then they were directed to various State Universities in Indonesia. This program from 2003 to 2013 able to pass as many as 333 students from 26 provinces. It means that on average each year is only able to accommodate as many as 33 students. In this educational activity takes investment over 10 years to deliver a student is able to independently and out of poverty as their parents. Other educational programs are Bea Studi Indonesia that offer: First Beastudi ethos which is a

scholarship given to students for underprivileged category or categories fisabilillah. Since 2003 until 2013 has benefited 1,320 people, or an average of 132 people per year; Both Beastudi Activist given to student activists in various fields aimed at forming a statesman, leader of character, contributive and achievement. This program since 2011 to 2013 has benefited 111 people, or an average of 37 people per year; Third Scholarship Partnership is a form of cooperation between Beastudi Indonesia with various parties, educational institutions, governments, and companies. This program has over 2010 up to 2013 already provides benefits to 75 people or an average of 19 people per year. Usman Umar-campus in 2013 has benefited 82 students, where 51 people to the field of production management and 31 people in marketing.

For economic empowerment to alleviate poverty is to empower farmers through a program of healthy agricultural Indonesia, breeder sheep and cattle through the village livestock program archipelago, empowerment SMEs through public works independently and training expertise through Independence Institute. Those who have benefited from the healthy farm program Indonesia for five years (2008-2012) is as much as 8082 people (2,461 families), or an average of 492 households per year, with the funds disbursed for the program is Rp. 4,408,524,200, -. While farmers' groups to obtain benefits is as much as 198 farmer groups. Furthermore Independence Institute in 2005 to 2015 providing various forms of skills training to 4168 people or an average of 463 people per year with funds used amounted to Rp 721 million.

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Regular programs owned Independence Institute, among others, training of motorcycle skills, skills training technicians mobile, vocational training sewing/fashion classes, training, entrepreneurship and salesmanship, skills training salon Muslim, skills training IT (software and hardware), training driving skills, cultivation catfish, catering and culinary, electronics and refrigeration training to handicraft making training.

Program Rumah Zakat (RZ)

Utilization of Zakat funds by RZ is generally the same as those performed by the Dompet Dhuafa, where the emphasis the program are: 1) Health; 2) Education; 3) Community Development and Economic Empowerment. Healthy Smiles name of the product, comprising: a) Rumah Bersalin Gratis (RBG); b) Pemeriksaan Gigi; c) Siaga Sehat (Health Preparedness); d) Free Ambulance Service Delivery; e) Operasi-operasi; f) Hitanan Masal (Mass Circumcision); g) Siaga Gizi Balita (Standby Toddler Nutrition); f) Penyaluran Kesehatan Langsung (Distribution of Direct Health); g) Jaminan Keluarga Sehat (Guarantees Healthy Families) and h) Revitalisasi Pos Yandu. Education program Smile Champion (Senyum Juara), consisting of: a) Scholarship (Beasiswa); b) Development of Children Champion (Pembinaan anak juara); c) Potential Development of Children (Pengembangan Potensi Anak); d) Schools Champion (Sekolah Juara); e) Nutrition The Champion (Gizi Sang Juara); f) Lab Champion (Lab Juara); g) Car Champion (Mobil Juara); h) Champion Camp (Kemah Juara); i) Direct Distribution Education (Penyaluran Langsung Pendidikan); j) PAUD Taman Pos Yandu; k) Education Care non Program; and l) PAUD Juara. Economic program

name Smile Mandiri products, consisting of: a) Small Business Empowerment & Micro (KUKMI); b) Empowerment of Local Potential / Care House; c) Means of Independent Business; d) Business Assistance; e) E-Market; f) Independent Boutique; g) Degree Work Empowerment and others. Program Senyum Mandiri consists of: a) Water Well / Development of Water Supply and Sanitation for Public; b) Program distribution services of clean water for people in disaster areas or areas prone to drought. In addition there are other programs that Smile Ramadan and SuperQurban.

Program utilization of zakat by RZ which has great potential to alleviate poverty is through a scholarship program Cheers in the form of scholarships with regular coaching activities for elementary, junior high, and high school students from poor families and or achievement. Up to 2013, which had benefited from the scholarship program are as many as 490.658 people or an average of 49.066 people each year. Economic program that is capable of alleviating poverty is self-employment assistance program which is based economic empowerment of small and micro enterprises assisted RZ, in the form of capital procurement. The program's goal is to increase the capacity and competence of beneficiaries in business economic activity and improve the turnover of production and the quality of production of beneficiaries, such as: a). improvement of skills in managing the business; b). the increase in capital and assets used to carry on business; c). increased income beneficiaries of economic assistance program.

To participate in the Entrepreneurial Assistance program, beneficiaries

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must also be committed to following the guidance and mentoring. Mentoring Entrepreneurial Assistance Program conducted by a special companion. One person supervising companion 16 beneficiaries Entrepreneurial Assistance Program. Companion visits to beneficiaries under its assistance in every week to make the process of coaching and mentoring. In the process of coaching, beneficiaries received materials business entrepreneurship and motivation to develop. Mentoring provided: a) Motivation (activities such as motivational material for members to mental paradigm and they turn into muzzaki); b) Sales (product marketing activities of the members); c) The recording (recording production business activities of the members) and d) Assistance GMP (Good Manufacturing Practices). In addition to the above assistance, RZ also provide assistance strengthening member in the form of making the products: a) Labelling (reinforcement products through creation of a logo, brand / brand, color selection, design, product name, quality of packaging); b) Packaging (reinforcement products oriented to the good form of packaging on a small scale or a large scale); c) Ingredient (reinforcement products oriented to the belief that products and raw materials that are safe for health). The beneficiaries are the community category of business assistance recipients in the target area RZ, which has the potential of micro businesses to develop their business scale and / or productivity. In 2013, the Entrepreneurial Assistance Program is implemented in 28 cities in Indonesia with the number of beneficiaries as many as 595 people.

Program Baitul Maal Hidayatullah (BMH)

Baitul Maal Hidayatullah an amil zakat institutions engaged in fund raising Zakat, infaq, charity, humanity, and CSR and distributes through educational programs, propaganda, social and national economy. Through educational programs, propaganda, economic and social is an attempt to unravel the social problems and build a more dignified human being. Now its action in all 33 provinces, from urban to remote villages and inland. Empowerment activities developed through the majority of the 238 schools in remote areas, hundreds of schools and thousands of preachers who take part and the community is the energy to be a driver of change towards a more empowered, religious and noble.

BMH utilization of Zakat funds program consists of: a) Suci Hartaku dengan Zakat; b) Senyum anak Indonesia; c) Dai Tangguh; d) Mapan (Mandiri terdepan); e) Bina Muallaf; f) Pesantren Berdaya and g) Bahagiakan Yatim and Dhuafa, more directed to education and dakwah. Core program of BMH are 1). Program dakwah; 2) Program Pesantren and 3) community programs. This is what distinguishes BMH with LAZ other. Propagation Program consists of programs da’i tangguh, program armada for da’i, preachers and a scholarship program for Umrah program for preachers. Pesantren program consists of schools and school Tahfiz powerless. Scholarship program consists of scholarships Tahfiz, foster parents, school leaders and high school level scholarships Hidayatullah University.

Program utilization of Zakat funds by BMH great potential can break the chains of poverty is program da’i tangguh and program Mapan (Mandiri Terdepan), because that was recruited

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as program participants are from poor families and ibnussabil. Preachers formidable program are those who succumb and raganyaguna nurture and empower rural communities to change. Through the program ZAKAT & ALMS YOU TOUGH preacher, helped the sustainability of development and empowerment of rural communities. Over the past five years there were as many as 1339 people, or an average of 268 people annually distributed to all parts of Indonesia. In addition to tough BMH dai program also funds programs that boarding schools Tahfiz helpless, orphaned and poor. Surabaya Tahfiz program participants 40 people per class, for Makasar 30 people per class and to Balikpapan 50 people per class. Furthermore, there is a community program that provides scholarships Tahfiz, foster parents and school leaders of the high school level. School leaders provide scholarships to high school level learners and the amount per class of 50 people. After graduating from high school they are directed Hidayatullah choose Hidayatullah Universities namely: 1) STIE (School of Economics) in Depok, West Java; 2) STAI (Islamic University) in Surabaya; 3) STIS (College of Sharia) in London; 4) STIKOM (College of Computer Science) in Malang and 5) STIKIP (College of Education) in Batam.

For community empowerment in the economic field BMH has established community programs located in Soreang Bandung. Ideal Family program to provide guidance to 40 households actors micro business activities by providing interest-free loans or profit sharing (kordul hassan). Development activities carried out in an integrative manner by da’i tangguh assigned once to

preach. The field of economic activities are agriculture, fisheries, livestock and trade. The same program was conducted on 50 households in Lubuk Banggai region (Central Sulawesi) with a model Cluster Block where each group consists of five households are given interest-free loans of Rp 1 million per household.

Empowerment Program from National Zakat Agency ( BAZNAS )

Zakat Community Development (ZCD) is a long-term process by integrating programs to address health issues, education, economic and social issues, using funds Zakat Infak Shodaqoh, expected no significant changes to the program ZCD, with the participation of the community / society, with all the facilities and technology diinovasikan on a program.

Program ZCD, Srunggo jogjakarta; drought-prone region.

Program relocation of displaced victims of Mount Merapi in Kuwang; Merapi victims communities.

Program ZCD pesanggrahan village in Purwakarta; underdeveloped region/poor.

Program ZCD Cimande; Community breeder flocks.

Program ZCD Kebon Sirih; SME community.

Program Satu Keluarga Satu Sarjana (SKSS) is Beastudi outstanding students at campuses across the country Indonesia. As the name implies this program priority to students who come from poor families without a degree. Beastudi SKSS finance the first semester students to graduate. SKSS is a scholarship program bond to each

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recipient to become a pioneer scholar in his village community empowerment.

Program Rumah Dakwah Baznas is the zakat distribution program aimed to convert the regeneration of a thousand clerics and various missionary activities for poor people in remote areas and outer. There are three forms of the program, namely Kafalah Dai Remote Area, Development and Regeneration converts Thousand Ulama (KSU). KSU provides a scholarship program at the master and doctoral study programs specifically so was born the scholars who faqih in religion, morality, and productive in propaganda as well as reference books bore people.

This program has been implemented from the year 2007, and the number of beneficiaries : a) Level S3 as many as 40 people and 18 of them have graduated ; b ) Study S2 as many as 208 people and 129 of them graduated. The amount of program funds allocated during the period of education for each level are as follows : a). S3 level of Rp 45 million per person for three-years study period . b . S2 level of Rp 27 million per person for two-years study period .

Zakat fund distribution programs that can break the chain of poverty

In general, the distribution of zakat funds by institutions of zakat (LAZ) including a body formed by the government amil zakat (BAZ), is charitable or in the form of traditional consumptive and consumptive creative. From all forms of program utilization of Zakat funds which have great potential can break the chains of poverty and at the same time capable of alleviating poverty are as follows; 1). education scholarship program for poor people, from primary school

level up to the level of higher education (undergraduate program); 2). poor economic empowerment programs adapted to the environmental conditions that are empowered society. However, the data distribution of zakat funds for each program that is capable of reducing poverty has not been recorded properly by each LAZ or BAZNAS, therefore it is difficult for researchers to make an estimate of the contribution as appropriate. The data in Table 1 is the result of processing the data obtained from financial statements or annual reports prepared by each LAZ or BAZNAS.

Table 1: Percentage Distribution of Zakat Fund According Sector Activity

Amil Zakah Institutions

Percentage per type of Zakat Distribution

the poor, etc.

Education Program

Economy Program

Dompet Dhuafa (DD)

47% 22% 12%

Rumah Zakat (RZ)

77% 12% 10%

Baitul Maal Hidayatullah

(BMH) 39% 45% NA

Badan Amil Zakat

Nasional 67% 7% 5%

Sumber : Hasil Pengolahan Data

Distribution of zakat funds held by LAZ DD, RZ, BMH and BAZNAS still more in the form of consumptive charity, the reason are; The first follows the provisions of the Zakat jurisprudence that is prioritized to those who need help immediately; The second reason is the still relatively small number of charity fund raising, so LAZ and BAZ should give priority, which should take precedence. Indeed each amil zakat institutions realize that the disbursement of zakat most have the greatest chance can break the chains of poverty for the recipient charity is

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through a program of continuous education as practiced by LAZ Dompet Dhuafa through Smart Ekselensia Institutions or BMH through Preachers tough (Da’i Tangguh) or Leader School Scholarships (Sekolah Pemimpn) by BMH. In this case both LAZ DD and BMH have integrated their own educational institutions, so that learners can be developed in an integrated spiritual mental instituted until the high school level even in LAZ BMH to higher education.

Theoretically that the higher the level of education will be able to improve the well-being of a person. Edward F Denison study states that 23% of US national income increase from 1929 sd 1957 is contributed by the addition of quality employees is mainly attributable to the increase in education (Simanjuntak, 1985). Similarly, the same thing happened in Indonesia (Nurkolis, 2002), especially when viewed nature of investment in general that require a relatively long time to be gained result. Financing of the person's education is a human capital or human investment (private cost and social cost) and the effects will only be felt when someone (grantee) has entered the working world and can boost the family income. As the implications of the matter is, that education is a public good which deserves the attention of LAZ and BAZNAS greater and sustained.

According to the manager of LAZ statement that educational programs are able to alleviate or disconnect someone from the chains of poverty is a long-term investment and requires a large investment funds. Because of the high cost of human investment through education programs, and coupled with the still small zakat funds can be collected, then this is

what causes LAZ or BAZNAS not yet able to provide massive benefits to the poor. But so does not mean that LAZ and BAZNAS not have a role in improving the quality of human resources through education programs. Almost all national LAZ have this program, but because the zakat funds can be collected is still relatively small, the priority use of funds more directed to social issues more pressing. In this case LAZ - DD annually can only provide scholarship system of boarding in Smart Ekselensia average of only 33 people per year, Study Scholarship Ethos 132 people per year, the Institute of Independence which gave education such skills courses can only provide benefits to 463 people per year. While LAZ - RZ despite zakat funds by 24% for education, yet have a boarding school like Smart excellence. Cheers and Champion Scholarships Scholarships are awarded LAZ - RZ to learners respectively 490 658 people and 3,371 people are spread throughout the work area. While LAZ - BMH that is focused on educational programs, also only able to provide scholarships for preachers tough only 50 people per class or per year. Furthermore, to the Higher Education Foundation held a new Hidayatullah can educate an average of 427 students per year.

In addition to programs in the field of education, almost all LAZIS and BAZNAS each have an economic program in the utilization and zakat. LAZ - DD for five years (2008-2012) has been given the benefit of Agriculture Healthy Indonesia program is as much as 8082 people (2,461 families), or an average of 492 households per year. Independence Institute LAZ - DD 2005 s.d. 2015 provide various forms of skills training to 4168 people or an average

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of 463 people per year. Migrants LAZ-DD Institute has given the economy and entrepreneurship training to migrant workers as many as 370 people for seven regions provider of migrant workers. Furthermore LAZ - RZ with some independent Smile program is able to provide benefits to 7,681 people in the form of productive skills training, 1,863 people for Independent Business program and 1,232 people for a program providing venture capital (KUKMI). LAZ BMH also conducts an economic program to 40 families in the area Soreang Bandung District and 50 families in Lubuk Banggai - Central Sulawesi with the cluster system provides the block where BMH penjaman without remuneration through similar institutions Baitul Maal Wa Tamwil (BMT). Overall because of the vast territory of Indonesia and the large number of poor people are scattered throughout the region are there, then the economic aid given LAZ BAZNAS funds as if the results are not yet visible.

Theoretically the help of venture capital and empowerment of the poor and micro entrepreneurs should positively correlated to their welfare. Samuelson, 1985 and Manan in Nastangin, 1993 menatakan that capital is productive, meaning that workers who aided capital will produce more than that without additional capital. The role of capital is also evidenced by the Gratitude (2002) in his dissertation that lending institutions Usaha Karya Mandiri (KUM) to increase business capital make a positive contribution household income. In line with these studies, Alissuddin (2002) in Nangro Darrussalam Aceh (NAD) with the data from 1983 to 2000, concluded that the charity funds of the interest

savings are used to help the poor venture capital also can improve their lives. In contrast to previous studies, Multifiah (2009) in his research states that venture capital assistance not significantly affect household welfare recipients. Which cause no significant possibility of such capital assistance could be due to the small value of the assistance and limited manpower agency which is owned by amil zakat to gave intensive coaching in the management of venture capital.

In factual programs that alleviate poverty through economic empowerment undertaken by nearly every LAZ and BAZNAS still to be evaluated degree of success and effectiveness. Economic empowerment to communities fosters the value of self-reliance means to get out of the problems that arise in daily life. Community development undertaken BAZNAS LAZ or may not be temporary, but should be sustainable, accompanied by active participation by the community itself through programs that are developing or empower (Alfitri, 2011). So as to get people empowered, independent, creative free from poor and marginal status, the development community has to go through some long process. It means that in order for the economic program conducted in addition to LAZ or BAZNAS require workers noticed that reliably fields, also had to set aside more capital support over the long term. Evaluation or monitoring the success of the economic program by LAZ and BAZNAS should be done in a sustainable manner. Constraints faced by many organizations today zakat is power limited human resources, both in terms of number and kualilitasnya. For example, LAZ - BMH whose organization is large enough and the amount of office exist in various

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areas, but the number of personnel is only 37 people. Not to mention the problem of scientific quality, to be honest, the human resources owned by LAZ BAZNAS or more charge of religious knowledge compared to their ability of social sciences and about community empowerment.

4. CONCLUSION Programs of education, health, economic development and the alleviation of social problems is a program that is generally carried out by almost all LAZNAS and BAZNAS, but the core program for each LAZNAS and also BAZNAS are different from one another. So that the role of each LAZNAS and BAZNAS for each field of activity is also different.

The field of education is the development of human resources (human capital) is a program adopted by all the LAZ and BAZNAS, only the form of program implementation, which distinguish from each other. This program essentially has the greatest potential to alleviate poverty. But education is a long-term program, requires substantial investment, it takes a long time and operating costs are greater. By Karennya not all the LAZ able to provide educational facilities with boarding systems such as Smart Ekselensia belonged to LAZ DD affecting the long term and able to raise their students out of poverty. This is why LAZ DD, RZ LAZ, LAZ BMH and BAZNAS not been able to provide a sustainable education programs in more massive reach all parts of Indonesia. So the role of LAZ and BAZNAS in education carried out so far is still relatively small and not significant when viewed nationally. In addition to those already mentioned above, the large number of poor people, the breadth of distribution of the population, the low

adherence to the Muslim community in paying zakat, and the lack of coordination program between the Institute of Zakat (LAZ) and BAZNAS is the other problem that caused the role of LAZ and BAZNAS in the field This despite there and visible, but nationally is still clearly visible.

In addition to educational programs, other poverty alleviation programs is economic empowerment program. Based on data from the annual reports of each LAZ and BAZNAS in general are still not able to deliver benefits to the people who need them laus. Adapaun economic empowerment program for the low contribution of LAZ and BAZNAS this field is that the community empowerment process requires three main things: first of human resources, both funds are large, and the three ingredients. For the first condition is seen that in the majority of Amil in LAZ DD, LAZ RZ and LAZ BMH specific educational backgrounds, social welfare or experience as a social worker can be sure a little and even no, but more is their educational background in religious or sharia sciences. The second condition that the source of funds used in the program depends on funding economic empowerment charity and CSR and the rest coming from individual or community, so that the availability of funds for financing the economic program is very limited. The third condition, that the facilities owned by LAZ and BAZNAS in conducting economic empowerment inadequate. As a result of it all, then when measured nationally and BAZNAS LAZ role in the field of economic empowerment of the poor is still relatively small or not significant.

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5. RECOMMENDATION The amount of financing for the alleviation of poverty through education and empowerment programs in economics by amil zakat institutions and bodies amil zakat, requiring all parties, especially the government, Muslims in general and institutions of zakat to work together to find a better way and more strategic to realize potential zakat. If public confidence in the LAZNAS and BAZNAS still low, it must continue to look for the cause why people do not believe. Meanwhile, if the people do not yet know about what activities need to be carried out by LAZ and also BAZNAS then that should be done is not the only activity through media campaigns but far more important are the efforts of real action, so that more people know Muslims. Furthermore, as a public institution should LAZNAS and BAZNAS more transparent, accountable and professional both in raising funds and in pendayagunaannya. To obtain a more optimal result in the utilization of Zakat funds will require good planning. For example, a pilot project of economic empowerment should be planned in detail, well targeted to the poor, further evaluation and continual monitoring. It required specialized personnel that monitor pemonev the course of the pilot project in order to plan and avoids fraud. Furthermore, the results of the monitoring and evaluation needs in publications, mainly about the activities that have been carried out even more about its success

6. BIBLIOGRAPHY [1] Ashshidiqi dkk, 1982. Al-Qur’an

dan Terjemahnya. Departemen Agama RI, Pelita III/Tahun IV/1982

[2] Alfitri, 2011. Community Development Teori dan Aplikasi. Pustaka Pelajar, Yogyakarta.

[3] Amir Syarifuddin, 2003. Garis-Garis Besar Fiqh, Jakarta : Prenada Media, Jakarta hal : 37

[4] Alissuddin, 2002. Zakat Atas Tabungan. Jurnal Ilmu-Ilmu Sosial Bidang Ekonomi, Volume 4 Nomor 2, Lembaga Penelitian Universitas Syiah Kuala Darrussalam. Banda Aceh, Indonesia.

[5] BAZNAZ, 2013. Potensi Zakat Indonesia, di akses pada tanggal 20 Februari 2014 http://www.Baznas.or.id/ind/

[6] Beik, Syauki dan Hafiduddin, Didin, 2005. Zakat dan Pembangunan Perekonomian Umat, Makalah pada Seminar Ekonomi Islam, Medan 2005

[7] Multifiah, 2009. Pengaruh Zakat, Infak, Shadaqoh (ZIS) Terhadap Kesejahteraan Rumah Tangga Miskin. Jurnal Ilmu-Ilmu Sosial (Social Sciences), Volume 21 Nomor 21, Februari 2009.

[8] Mannan, Muhamad Abdul. 1970. Islamic Economics: Theory and Practice, Houder and Stoughton Ltd. Nastangin (Penterjemah). 1993. Ekonomi Islam: Teori dan Praktek, PT Dana Bhakti Wakaf. Yogyakarta.

[9] Mubyarto, 1986, Zakat dalam Perspektif Sosial Ekonomi, dalam Jurnal Pesantren No. 2 Volume III/1986

[10] Samuelson, PA & William D Nordhaus. 1985, Economics. Mc. Graw Hill, Inc. New York.

[11] Syukur, Mat. 2002. Analisis Keberlanjutan dan Perilaku Ekonomi Peserta Skim Kredit Rumah Tangga Miskin. Desertasi Doktor. Program Pascasarjana. Institut Pertanian Bogor.

[12] Qardlawi, Yusuf, 1997, ”Kiat Sukses Mengelola Zakat”, Media Dakwah, Jakarta

[13] Qardlawi, Yusuf, 1988, ”Fiqh Al-Zakat”, Dar al-Fiqr, Beirut

[14] Republik Indonesia, Undang-undang Nomor 23 Tahun 2011 tentang pengelolaan zakat, Lembaran Negara Republik

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Indonesia Nomor 115, Sekretariat Negara, Jakarta, 2011

[15] Sadili, Muhtar, 2006. Benang Merah Zakat dan Civil Society, PKPU @online .com

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Analysis of Performance Measurement System Using Competency-Based Balances Scorecard

(A Study in Banjarmasin State Polytechnics)

Agus Pebrianto1, M. Wahyu Wardhana2, Rika novyanti3

Administration Science, Faculty of Business Administration, Banjarmasin state Polytechnics , Banjarmasin, South Kalimantan. Indonesia

Abstract

The purpose of this study is to analyze performance based on competency using Balance Scorecard which is measured by four perspectives : College Financial perspective, customer perspective (which divided into three parts : students, stakeholders and graduates), college internal perspective, and learning and growth process perspective. It is expected that this research would lead into development process of the college, and find out the weaknesses or strengths of college organization which would give impact to the increase of college’s performance. This is a quantitative descriptive research. Total amount of population in this research is 208 people, which consists of students from grade 5 of business administrative. The population is chosen in consideration that they have experienced the longest term of learning process. Samples are taken from 4 classes which includes 106 students. Graduates are chosen from those who have been graduates and have at least 3 years working experience, that make 102 people, meanwhile employers are represented by 33 lecturers in Banjarmasin State Polytechnic, and stakeholders are chosen from both government institution and non government institution that makes 27 institutions. Those institutions are chosen by graduates recommendation. The result of reliability test of college financial perspective, customer perspective, university internal perspective and innovation and learning process perspective shows the value more than 0.6 alpha cronbach and it makes all of variables reliable. The average score of financial perspective is 3.514 and it shows that financial condition of the college is in good state, The average score of customer perspective is 2.947 which gives fair condition, the average score of stakeholders perspective is 3.418 that is in good state, and the average score of graduates is showing good state as shown in 3.119 point. College internal process perspective has the average score of 2.753 point and shows fair condition. Learning and growth perspectives average score is 2.929, shows fair condition. Keywords: Balanced Scorecard, Financial Perspective, Customer Perspective, Internal

Process Perspective, Learning and Growth Perspective, College Performance

1. INTRODUCTION This study is mainly discuss the using of the idea of the four Balanced Scorecard perspectives which is taken to be applied in making evaluation and measuring college performance. Although this application is originally used in the profit sector, this application is also can be used to improve government management or non profit organization (Kaplan & Norton 1996:175). The measurement of performance is also used to asses the achievement of goals and objectives. (Vanany, 2009)

It is expected that this idea will aid manajemet revolution especially state

college management to contemporer performance measurement which is equal to businesss organization. Performance measurement is not only important to business institution, but also in education. Since it is considered as an important thing, Directorate general in Higher Education put Balanced Scorecard in new management format which is designed to increase the quality of higher education. Increasing education quality will be done by giving assessment, accreditation and institution self evaluation toward both public and private college (Soehendro, 1996). Performance assessment is an essential thing for an

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organization. To win the global competition, organization performance has to reflecting assessment from one period to another.

College as a non profit organization is different from profit organization. The difference will also make different management pattern. Business organization has objective to maximize company profit, meanwhile non profit organization will give services without expecting rewards in return.

2. MATERIAL AND METHOD Balanced Scorecard Perspective in Public Organization

Customer Perspectives

Public sector organization will give more attention to customers and fulfill customer needs to reach organization objectives. Organization management in of public sector has to be able to identify customer needs and expectation. Niven (2008:167) stated that customer is a group of people which directly having benefits from service given by the organization. There are many parties whom will get benefits from the service given by the organization. In customer perspectives, organization has duties to choose customer and have direct service from the organization.

Financial Perspective

Public sector organization and non profit organization need to manage their financial in effective ways. Public sector organization has limited financial source to give public service to the people. Niven (2008:34) stated that though public sector organization is an non profit oriented organization, the exixtence of financial perspective in Balanced Scorecard for non profit organization is still important. Without financial resources,

organization can not operate successfully to fulfill customer demands.

Internal process Perspective

Internal process perspective is an important transitional aspect in Balanced Scorecard . within this perspective, organization focuses itself in giving customer needs and giving proposition value effectively. Internal process perspective answer those questions by giving ways to fulfill consumer needs. Each organization has its own unique and combination process. There are some main processes which can be considered when developing objectives of internal process perspective. Niven (2008:173) stated that those main process are:

a. understanding customer

b. constant innovation

c. operation process

d. offering service quality

e. partnerships to success.

Learning and growth perspective

The measurement of learning and growth perspective represents factors of efficiency which lead to the improvement ofservice quality toward customer. Employees skill is an important aspect which can force organization to develop employees training program in continuous way. Aspect which could bring organization achieving organization objective is the result of employees training, not only based on the employees attendance during the training. Oleh karena itu, diperlukan adanya keseimbangan antara partisipasi pelatihan dengan hasil pelatihan. Thus, accurate evaluation and measurement toward employees training program is needed (Niven, 2008:181). Moreover , psychological

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aspect is intangible asset of organization beside motivation, empowerment and direction. Good personnel capability will create good performance for organization. Measurement of those aspects is done by measuring employees’ input toward organization, improvement and increase of performance within individual limitation in the organization (Niven, 2008:184)

3. METHOD Type of Research

This study is using survey method. To implement research planning proposed, activities are divided into 2 stages, the first stage is to analyze the result of distribution frequency from the questionnaire given to find out 4 Balanced Scorecard perspectives toward college performance. The next stage is designing balanced scorecard to create performance assessment system to ease evaluation in the future. The research is conducted for 1 year. Type of the research is descriptive research where the result will be given in qualitative and quantitative description. The purpose of this research is to analyze present situation in order to make self evaluation and improvement in the future using Balanced Scorecard design with Integrated Performance Measurement System (IPMS).

Scope of Resarch

This research analyzes performance measurement system using balance scorecard with 4 perspectives, based on Department’s objectives. Determining performance measurements which called KPI (Key Performance Indicator). Obtaining KPI validation. Specifying KPI. Appraising KPI. Deploying questionnaires according each indicators perspectives,statistical analysis, KPI measurement and each

balance scorecard perspectives improvement recommendation.

Research Site

Place of research conducted is Banjarmasin State Polytechnics, especially in Business administration department. Reasons for the selection object is that business administration department have the biggest number of students, besides that researcher understand the condition in that place very well. Some of research objects also conducted in Banjarmasin state polytechnics scope, since some aspects of the research is in Banjarmasin state polytechnics scope.

Population and Sample

Total amount of population in this research is 208 people, which consists of students from grade 5 of business administrative. The population is chosen in consideration that they have experienced the longest term of learning process. Samples are taken from 4 classes which includes 106 students. Alumni/ graduates are chosen from those who have been graduates and have at least 3 years working experience, that make 102 people, meanwhile employers are represented by 33 lecturers in Banjarmasin State Polytechnic, and stakeholders are chosen from both government institution and non government institution that makes 27 institutions. Those institutions are chosen by alumni/graduates recommendation.

4. RESEARCH VARIABLE AND MEASUREMENT

There are 4 variables in this Balanced scorecard research:

a. Financial perspective variable

Financial perspective variable is financial condition of the organization, it is including organization income, both from

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government or from other sources, operational cost, and how the organization give funds to its operational activities, also management ability to manage its finance effectively

b. Customer Perspective variable Customer perspective is a condition where college user or stakeolders are those whom have direct benefits from the college. There are three kinds of customers; students, stakeholders and graduates.

Students are recent user of the college, where they are having experience and can measure learning process, methods, systems, academic activities and extra curriculum activities whivh are given by lecturers beside service satisfaction level of academic and financial section of the college.

Stakeholders perspective is a condition where companies as recruiter of graduates can have benefits based on employees ability, company will give employee assessment based on their adaptive ability, teamwork, communication, IT development, applicaton of knowledge, and contribution toward organization development.

Alumni perspective is a condition where alumni having direct experience after they graduate from college. It is measured by waiting time in having their first job, conformity between theories and practice, ease of getting a job and conformity between salary and expected career.

c. Internal process perspective variable

Variable of Internal process perspective is performance assessment which is conducted in 3 sections; those are academic and students,administration and finance, and student activities, it is to find out whether this sections is supported by competent employees , starting from recruitment process, lecturer competencies, literature, library, facilities and infrastructure, supporting technology, laboratories, educational level, academic activities and other activities which supporting organization activities and development.

d. Learning and growth perspective variable

Learning and growth Perspective is a conition where employees are supported by organization to learn in order to make organization grow. Organization is not only demanded to keep forward,but also to support employees needs. It will create satisfaction atmosphere within the organization, and include employees to reach organization objectives.

5. RESULT AND DISCUSSION 5.1 College’s financial perspective

variable The average answer of questionnaire given that describes financial perspective can be seen in table 1 and table 2 where of all the answers given, financial perspective has average score at 3.514 and we can say that it is in a good state, which means that in this perspective Banjarmasin state polytechnics is not having financial problem yet, since Banjarmasin state polytechnic is funded by government based on budget proposed by management plan, although there are some obstacles, this condition is

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fortunately still in line with college activities. Below is priority level results which is used to repair the whole balanced scorecard perspectives in order to increase performance within the assumption as follow:

Tabel 1 Priority level Improvements Based on Average Value

Average score

Priority level Improvement

Colour

1 s/d 2.99 top priority Red 3 s/d 3.99 middle

priority Orange

4 s/d 5 lower priority Green

Tabel 2 Priority Level Improvement Financial Persfektive Variable

Item Mean Priority Level Improvement

PF1 2.5714 Top priority PF2 3.7143 Middle priority PF3 3.0000 Middle priority PF4 3.5714 Middle priority PF5 3.7143 Middle priority PF6 3.7143 Middle priority PF7 3.8571 Middle priority PF8 3.5714 Middle priority PF9 4.0000 Lower priority

PF10 3.4286 Middle priority 5.2 College’s customer perspective

variable The average score of customer perspective is 2.947 or is in fair condition, it means that overall this variable becomes top priority and must be considered to be improved by management of Banjarmasin state polytechnics.

Tabel 3 Priority Level Improvement Customer Persfektive Variable (students)

Item Mean Priority Level Improvement

PPM1 2.96 Top priority PPM2 3.09 Middle priority PPM3 3.02 Middle priority PPM4 3.75 Middle priority PPM5 3.28 Middle priority PPM6 3.13 Middle priority PPM7 2.42 Top priority PPM8 2.34 Top priority PPM9 2.72 Top priority

PPM10 3.53 Middle priority PPM11 3.21 Middle priority PPM12 3.25 Middle priority PPM13 3.25 Middle priority PPM14 2.58 Top priority PPM15 2.60 Top priority PPM16 2.85 Top priority PPM17 2.49 Top priority PPM18 2.96 Top priority PPM19 2.57 Top priority PPM20 2.58 Top priority PPM21 3.28 Middle priority

Total answers in the questionaire toward customer perspective give average score as seen in table 4. It scores at 3.418 point or in a good state. In other words, although customer perspective in Banjarmasin state polytechnic is not a top priority, the performance however is still have to be improved.

Tabel 4 Recommendation improvement level of customer perspective variable

(stakeholders)

Item Mean Recommendation improvement level

PPEP1 3.74 Middle priority PPEP2 3.33 Middle priority PPEP3 3.44 Middle priority PPEP4 3.74 Middle priority PPEP5 3.78 Middle priority PPEP6 3.15 Middle priority PPEP7 2.74 Top priority Total answers in the questionaire toward graduates perspective give average score at 3.119 point as seen in table 5. It is categorized in good condition, which means graduates perspective of Banjarmasin state polytechnics is not a top priority to be repaired, but still needs improvement. Therefore Banjarmasin state polytechnics has to keep its competency toward its graduates.

Tabel 5 Recommendation improvement level of customer perspective variable

(graduates)


PPEA1 2.38 Top priority PPEA2 3.87 Middle priority

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PPEA3 3.52 Middle priority PPEA4 3.23 Middle priority PPEA5 3.16 Middle priority PPEA6 3.37 Middle priority PPEA7 2.30 Top priority

5.3 College’s internal process perspective variable

The average score of questionnaire in total describing internal process of the college can be seen in table 6 where the resulst shows that average score is 2.753 in other words it is in fair condition, it means that there are many improvements to be considered by managements in this perspective. Management has to understand that internal process in Banjarmasin state polytechnics is far less than expected if they want to create professional workers. This item has to be considered seriously by management. Below is table of field real condition, and it becomes top priority to be repaired:

Tabel 6 Recommendation level of college’s internal process perspective

variable


PPIPT1 2.91 Top priority PPIPT2 2.45 Top priority PPIPT3 2.39 Top priority PPIPT4 3.12 Middle priority PPIPT5 2.30 Top priority PPIPT6 2.67 Top priority PPIPT7 3.06 Middle priority PPIPT8 2.94 Top priority PPIPT9 2.42 Top priority

PPIPT10 2.03 Top priority PPIPT11 2.18 Top priority PPIPT12 1.91 Top priority PPIPT13 2.85 Top priority PPIPT14 3.33 Middle priority PPIPT15 3.03 Middle priority PPIPT16 4.09 Lower priority PPIPT17 3.36 Middle priority PPIPT18 3.06 Middle priority PPIPT19 3.45 Middle priority PPIPT20 2.82 Top priority PPIPT21 3.27 Middle priority PPIPT22 3.79 Middle priority PPIPT23 2.21 Top priority PPIPT24 1.88 Top priority

PPIPT25 1.76 Top priority PPIPT26 1.91 Top priority PPIPT27 1.85 Top priority PPIPT28 3.27 Middle priority PPIPT29 3.52 Middle priority 5.4 College’s learning and growth

perspective variable Total answers in the questionaire toward graduates perspective learning and growth perspective can be seen in table 7 where the average score is at 2.929 point as we can say that it is in fair condition, which means that this condition has to be given good attention and become top priority to be repaired. The total result is shown below:

Tabel 7 Recommendation level of learning and growth perspective variable

Item Mean Tingkat Rekomendasi Pembenahan

PIPT1 3.70 Middle priority PIPT2 2.94 Top priority PIPT3 2.76 Top priority PIPT4 2.76 Top priority PIPT5 3.64 Middle priority PIPT6 3.36 Middle priority PIPT7 3.12 Middle priority PIPT8 3.39 Middle priority PIPT9 2.82 Top priority

PIPT10 2.15 Top priority PIPT11 2.48 Top priority PIPT12 2.94 Top priority PIPT13 1.79 Top priority PIPT14 3.15 Middle priority

6. CONCLUTION, IMPLICATION, SUMMARY

a. Financial perspective.

Based on the data processing using statistical instrument, shows that this perspective has 10 items as the benchmarks, and those items questioned are valid and reliable. Moreover, the aspects gives average score and description of financial aspects of 3.514 points or showing college financial condition of Banjarmasin state Polytechnics is in good condition. of 10 aspects

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developed, showed 1 item is supposed to be in top priority or in negative result, meanwhile there are 8 items in middle priority and 1 item as lower priority to be recommended to have improvement , which means that in this perspective Banjarmasin state polytechnics is not having financial problem yet, since Banjarmasin state polytechnic is funded by government based on management planning budget, although there are some obstacles, this condition has priorities, especially in operational cost realization item which is lower than the budget proposed (PF1), hence the result is fair enough, one thing that should be considered most is organization finance planning system, so that planning between organization income and outcome balanced.

b. Customer Perspective.

Data processing shows that this point is developed into 21 items, and those items are passed validity and reliability tests. The result show that 11 items are recommended as top priority or give negative results, 10 items as middle priority to be repaired or give positive results, whereas average score in total describes that customer perspective of students are at 2.947 point. It means that in this perspective students of Banjarmasin state polytechnics are not having good service as expected. Thus make this perspective is in top priority.

In customer perspective, there are 7 items as the benchmarks and those items show that 1 item in negative result, or recommended as top priority, 6 items show a

better result as they are in positive conditions and become middle priority. Whereas the average score of answers of items in the questionnaire which describes customer perspective is at 3.418 point. It can be concluded that the score shows good condition, which means stakeholder perspective is not a top priority to be considered.

In customer perspective – graduates researchers have deloped 7 items, and the result show that 2 items are recommended as the top priority, since the give negative contribution, and 5 items are recommended as middle priority as they are in better or positive state. Whereas the average total score of the questionnaire as described in table 4 gives 3.119 point, in which the score shows that the graduates perspective is in a good state. Graduates have short waiting time to find a job. But this is a temporary situation since Banjarmasin state polytechnics is facing a strict competition among colleges in Banjarmasin.

c. College’s internal process perpective.

The benchmarks in this study are 29 items and among of them, 17 items are recommended to be in top priority. It means that Banjarmasin state polytechnics still have many things to improve. Meanwhile there are 11 items which recommended as middle priority and 1 item as lower priority. Overall, the average score gives 2.753 point for fair condition. Therefore this perspective is still need improvement from management, since the internal process in

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Banjarmasin state polytechnics is far less than expected it it wants to create professional workers.

d. Learning and growth perspective.

This perspective has 14 items of benchmarks, and data processing shows that there are 8 items that needs to be top priority or in negative condition. 6 items are recommended asmiddle priority since their condition ispositive or in a good state. The average score of this perspective is 2.929 point which is in negative condition. Thus this perspective is has to be considered to be a top priority for the organization to improve learning and growth perspective.

e. This study can be further developed by other researchers by using similar method, similar variables but with different objects, or in different research scope which will give different or unique results, thus completing the results of further research.

f. It is recommended for further researcher to develop balanced scorecard model in other punlic

organization, it can be in university scope, or elementary school thus the empiric consistencyof the knowledge and theories used can be compared.

g. This study can be used as evaluation of the performance improvement of Banjarmasin state polytechnics or in similar college oe polytechnics .

7. BIBLIOGRAPHY [1] Kaplan, S. Robert, dan David, P.

Norton, 1996. “The Balanced Scorecard: Translating Strategy into Action”, Edisi satu, Boston, United States of America: Harvard Business School Press.

[2] Niven, Paul N. 2008 . Balanced Scorecard Step –By -Step For Government and Nonprofit Agencies . New Jersey: John Wiley & Sons, Inc

[3] Soehendro, B., 1996, Kerangka Pengembangan Pendidikan Tinggi Jangka Panjang 1996-2005, Proyek Pengembangan Staf dan Sarana Perguruan Tinggi (PPS2PT), Jakarta.

[4] Vanany , I, 2009, “ Performance Measurement Model & Aplikasi”, ITS Press, Surabaya.

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Destination Development Strategy Based on Core Competence of Mice

Etty Kongrat and Tuty Herawati

MICE Studies Program Jakarta State Polytechnic Campus UI Depok 16425

Abstract

Destinations 16 destinations MICE Lombok entry, the mapping indicates that the destination Lombok enter category of potential destinations, core competence destination Opened opportunities to make chili as a MICE destination especially in the field of corporate meetings and incentive travel. The finding of the study is to identify and Determine destination development strategy seen as core competence as a MICE destination. Data and information are collected Several information: questionare, depth and focus group disccussion inteview with MICE industry players. This paper analysis performed Vrin identifying the internal resources. The result of this researcher indicate that the core competence of Lombok destination there are six resources which are: natural resources, nature reserves, heritage, cultural heritage, forests and has great to develop the strategy of corporate meeting and incetive travel is supporting by natural resources, strategy development pelu carried out is the need for incentive houses, nightlife, historical Attractions, tempt the shopping and gaming, given the incentive travel business emphasizes entertainment and rekresai the preferred and business activities therein. Next improvement of human resources and image dsetinasi. Key words: development strategy, core competence, incentive travel destinations. 1. INTRODUCTION MICE industry is an industry that contribute to the "knowledge-economy", MICE is associated with a thought of ideas, innovation, creativity, leadership, education, and of course, business. The most fundamental and important aspect of the tourism event is to attempt to bring both domestic and foreign tourists (Getz, 1991: 5). Getz also said, not all the events that are able to offer attractive for tourists. Tourists sometimes come along with the event activities, just to see what opportunities he can do during the event. In this case the tourists who come is for business. Event in relation to the planning of tourist destinations, Getz (1991: 5). The tourism ministry has set 16 MICE destinations in Indonesia, namely Jakarta, Bali, Bandung, Surabaya, Yogyakarta, Semarang, Solo, Makassar, Lombok, Palembang, Padang, Medan, Manado. Balikpapan, Batam, Bintan. The draw

of destinations that have been mentioned himself as a MICE destination is truly ready to become MICE destinations. It is interesting to further study one potential destination is Lombok with a variety of natural resources.

2. THEORY MICE stands as Meeting, Incentive, Conference and Exhibition have been widely recognized in the world and become a common term in the industry pariwisat. One of the association, namely (The International Association of Professional Congress organizers) IAPCO (2009: 4), MICE can be defined as follows: Meeting is the general term indicationg the coming together of a number of people in one place, to Confer or carry out a particular activity. Frequency: can be on an ad hoc basis or According to a set pattern, as for instance annual general meetings, Committee meetings. Etc. Incentive is meeting event as part of a program

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the which is offered to its of participants to reward a previous performance. Conference is participatory meeting designed for discussion, fact-finding, problem solving and consultation. As Compared with a congress, a growing niche roomates features to facilitate the exchange of information. The term "conference" carries no special connotation as to frequency. Though not inherently liitd in time, conferences are ussually of limited duration with specific objectives. Exhibition events is a roomates products and sevices are displayed.

Knowingly or not, the Indonesian state has entered into the era of liberalization of the global economy that already is the consequence logical to follow the "rule of the game"

international trade being rolled. For those reasons, the various destinations in Indonesia must prepare themselves so that the target of tourist arrivals can be achieved. Spillane (2005) states that in each object or location of the various elements of tourism there are actually interdependent. A tourist attraction or destination includes five important elements, namely: Attractions are things interesting, the attention of tourists, facilities, necessary, Infrastructure, Transportation (Services transporting), Hospitality, is hospitality or willingness to receive guests. Sedangkan destinations by Cooper is the center of all the facilities and services that have been prepared to meet the needs of tourists .. The area or areas that can be said to be qualified as a destination that is 4 "A" attractio n as an attractive natural charming local culture, performing arts. Accesibilities such as the availability of local transport and terminals Amenities such as the

availability of accommodation machines, restaurants and travel agents. According to Ritchie and Crouch (2000) considers that the competitiveness of the destination of a country's ability to create added value and increase of national prosperity and managing assets and processes, attractiveness, aggressivenes.

When a destination has that rare ability, can be maintained, or difficult to imitate this will form the basis for sustainable competitive advantage. Is a key to the company's competitive advantage (Bani-Hani and 'falah 2009). Destinations need to focus more on their intenal different strengths to provide added value to the tourists. The ability of differentiation and others. T he concept of core competency was first brought by Selznick (1957) who used distinctive competency to depict the advantage of corporate value through various activities. Competency is the most important actor to complete a specific task.

One source of competitive advantage According to Hill and Jones (1998) is a core competence, the which will delivery a differentiated product (unique and difficult, to imitate by competitors) to Compete in internationalmarkets. Hill and Jones further suggested that if an organization wants to have a core competence, then it musthave the resources (tangible and intangible resources) roomates are unique. In addition, the competence needs to create value as well as the capabilities (skills) to exploit there the source, and a unique capability in managing resources to productive uses. According to Williams (1992), core competences are the skills that enable companies to Achieve the basics of customer benefits through the

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establishment, improvement, renewal and use of resources leading to sustainable competitive advantage. While Prahalad and Hamel (1990) stated that there are at least three Prerequisites that can be applied to identify core competence within the company, the which are: (a) Provides potential access to a variety of markets, (b) to Contribute Significantly to the final product the customer benefits, and (c) difficult, to imitate by competitors. The same thing Expressed Also Barney (1995), and Barney et al. (2001) who argued that there sources and capabilities are important for the company when it is to have value, rare and difficult, to imitate. Reviews These four dimensions of competence are value added, rare, difficult, to imitate, ability to exploit, the which are important indicators in Determining Whether a competitive advantage can be sustained or not. Man, Lau and Chan (1998) and Kuncoro (2008) Also Noted that the resources and capabilities can be a core competence if it meets Certain conditions / criteria: These resources can add value to the product or service that offer by the organization. The point is that Reviews These resources can be used to exploit the external conditions that can provide income to the organization, or resources can be used to neutralize the external factors that are not profitable. Rare. Ideally, no competitor hasthe same resources. More and more companies who have the sameresources or capabilities, therefore the organization should use even the smaller capabilities can Affect the sustainable competitive advantage for the company. Resources should be difficult, to imitate. Imitation by competitors can be done in two ways items, namely duplication and substitution. Duplication Occurs when acompetitor

creates the same resources, while substitution Occurs when a competitor Replaces some of there sources with alternative resources to gain competitive advantage with the same result.

Resource companies should not only be valuable, rare and difficult, to imitate, but the companyalso must have the ability to Utilize or to exploit what it has. Hafeez et. al (2002) defines the core competencies as a source of business that consists of physical, intellectual, and cultural assets. In addition, the core competencies can be described as something yant "unique," special ". "Difficult to replicate" and "superior dakam competence. A core competency is appropriate, referred to as "the movement of resources" or skills "Shieh and Wang (2007) found a core competency of the company activities more successful than its competitors and that required by the market. In particular, the competence of a company is a combination of resources that excel in competition throughout the corporate strategy. Furthermore Prahalad and Hamel (1990) argued to be regarded as a core competence, must have the character: It offers tangible benefits for customers, is difficult for competitors to replicate and provide access to markets. All three are a valuable strategic asset or most relevant to future product markets and the decision of the company. Core competence is the knowledge possessed a group of companies that differentiate the company and creating a competitive advantage against its competitors. (Agha, Alrubaiee, and jamhour, 2012)

3. METHODOLOGY Data collection first through Focus Group Discussion (FGD) comprising stakeholders from local governments,

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event organizers and perpetrators bisnsis MICE, community leaders in destination Lombok. For mapping MICE destinations Lombok using nine criteria MICE destinations are: aksessibility, stakeholder support, places of interest, accommodation facilities, conference facilities, exhibition facilities, the image of the destination, the state of the environment and the professionalism of HR using SWOT analysis to assign weights to each criterion , Second.

Data core competencies destinations through a questionnaire using a Likert scale, then the results of the questionnaire determines the destination core competencies.

4. DATA ANALYSIS From the results of the mapping destination SWOT analysis states that Lombok MICE destinations in the category of potential as for the SWOT analysis as follows:

Table 1. SWOT Analysis Lombok

STRENGTH WEAKNESSES Natural resources Culture heritage Accommodation varies Airport International Support Associations Awards ever in getting NTB

Province in tourism is: "World Heritage and Biosphere Man 2010" for Mount Rinjani National Park.

Meeting facilities on a small scale

Meeting facilities

Human Resources There has been no incentive

house Most people have not tourism

awareness Shoping center There are still many thugs in

sights Exhibition facility is not yet

complete

OPPORTUNITIES THREAT Lombok is a business opportunity to sell travel incentive programs for associations - associations jewerlry the fashion industry and the world to come to Lombok and work between local governments and fashion designers from Indonesia and internationally to organize a spectacular event.

Yet have official airport taxi and dominated by local taxi

Layout the location is not neat Regulation of local government

SWOT analysis results for the 9 criteria MICE destinations shows that namely accessibility, stakeholder support, meeting facilities, accommodation facilities, exhibition facilities, destination image, the environment, and the professionalism of Human Resources. Power to meeting facilities, accommodation, destination image supportive

environment, so for corporate meetings and incentive travel destination Lombok can compete with other destinations. Although there are drawbacks such as human resources in the field of MICE, people are not conscious tourist, local government regulations. Opportunities for Lombok destination is to make the programs attractive to offer to

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companies in destination Lombok. Threat for capsicum destination public transport is still less then the arrangement. All resources (resources) of the above According to respondents is Considered valuable in the current destination. However, to be regarded as core competencies, Reviews These resources need to be tested first. Resources (resources) that has the potential to Become a core competency. In an effort to identify the resources (resources) owned by the local government Lombok, conducted a secondary collection of data Identification of Core Competence Lombok Destinations. There are Several methods that can digunaka to test Whether a resource (resources) is a core competency. One of the which will be used for testing was proposed by Barney (1991), the which says that to be Considered as a core competency, a resources must meet four criteria: value, Rareness, Inimitability and Non-substitutatility. For the resources that have dipperoleh of the results of the first questionnaire collection of data as shown in the table above .1.2 then tested wit four criteria above. Testing is done by distributing questionnaires to the same respondents to fill out a questionnaire roomates tops .. Repondesn asked to meilai Whether the selected resourece comply with specified criteria for Vrin like Barney. Answer only two options items, namely Yes and No. Based on the results of the tabulation above it was Decided that the value of a greater percentage is the respondents' answers to the test Vrin is artinay when presetasi respondents Reviews largest YES, meaning According to respondents of resources

(resources) that meet the specified criteria, billa percentage of respondents over banayak does NOT mean by respondent resources (resources) is not meeting the specified criteria. Analysis and interpretation of the answers respondensn using analytical tools that have been used by Paul Stonham in research Similar items, namely asseing core intangible resources (European Management Journal volumen 22, No. 1, 2004) After the above calculation results are interpreted using categories AOPA resources (resources) owned Lombok destinations core competencies Including the which have a competitive advantage? And Whether the competitive advantage is temporary or sustainable? All resources amounting to 67 above, and then included in the questionnaire distributed to respondents in their search for primary data. Respondents are stakeholders in West Nusa Tenggara yanitu destinations; Position stakeholders in this case no tourism agency NTB, Event organizer, tour and travel, hotels, public figures and of educational tourism in Lombok. The questionnaire was made by using a Likert scale, respondents were asked to give an opinion as to how much support the resources Mentioned in the questionnaire in support of the current destination. Data from the questionnaire count result is calculated based on the weight specified in Likert scale. Results of the questionnaire produced a number of resources (resources) are Considered to be potential to Become a core competency. Resources (resources) are Categorized as potential core competence is the resource based on the count Reaches the value of 55% and above. Resourc

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The test results using methods Vrin above shows that of the 45 resources (resources) are Considered to be supporting the destinations Become turns eligible Barney to be called core competence is 6 resources (resources) are: Panorama, cultural heritage, heritage, nature reserve, forest and culture. To make incentive travel into one of one of the components of the MICE industry is no doubt that Indonesia already has a diverse tourism potential with its uniqueness that is not owned by the state and other nations. Indonesia is rich in beragaman and unique culture, nature and fauna can the make Indonesia as a potential destination as the venue for incentive travel or incentive trip. By having 16 MICE destinations MainStay Indonesia from west to east Indonesia is rich with potential one of the which is the destination Lombok.

Incentive travel is a trip once in a life time for the winners to be an activity that is unforgettable and it means that a destination must be ready to equip all the Necessary requirements such as access from the airport to the venue the which takes about 20-30 minutes, a matter of convenience services Obtained from the airport until the completion of activities MICE business, the availability of places where interesting and unique that can be a selling point higher for incentive travel, accommodation and meeting places, as well as evening entertainment (restaurant world class, cafes and bars), a performing arts culture, the environment, the image of destinations, human resource handling, galleries and historical Attractions, and shopping, and all the activities that they can spend in remarkable destinations such as culinary tourism, nature tourism, cultural tourism, spa tourism and

wellness and tourism of sports especially water sports are very popular nowadays, destinations Lombok have the opportunity to use 6 core competencies Become destinations of corporate meetings and incentive travel. Obstacles encountered is the human resources that have not been conscious tourist, the layout in places rekresiasi still to be addressed, such as public port infrastructure in particular to Gili Trawangan. The shopping center is not centralized, there are still plenty of thugs in the recreation area.

5. CONCLUSION Based on the results of research on the core competencies of destination Lombok found that there are six resources into competitive advantage items, namely: the natural landscape, heritage, nature reserves, cultural heritage, forests and culture that can be used to be a destination of Corporate Meetings and Incentive Travel. Of the six core competencies are supported by accessibility as banda rudara international, the frequency of flights of scheduled flights, image destinations penah host both events nationally and internationally, was awarded as "World Heritage and Man Biosphere 2010", then strongly supported by local Governments proved in the presence of the governor's instruction No. 03 of 2010 on Government support for MICE activities and so is the support of the Association. Besides the variety of accommodation and meeting rooms a cozy atmosphere makes the destination Lombok feasible for MICE development towards corporate meetings and incentives tavel. Constraints faced is the human resources and local culture that is still less conscious tourist to be a record for the local government and local government policies because of

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the presence of regional autonomy there should be clear rules.

6. BIBLIOGRAPHY [1] Agha, S., Alrubaiee, L., & Jamhour,

M. (2012, January). Effect of core competence on competitive advantage and organizational performance. International Journal of Business and Management, 7 (1), 192-204

[2] Abah, Agha .et.al (2012) Effect of core competence on competitive advantage and organizational Performance, Journal of Business and Management vo. 7, No. 1 january 2012

[3] Barney, J. (1991 Mar). Firm resources and sustained competitive advantage. Journal of Management, V.17, N.1

[4] Hafeez, K., Zhang, Y., & Malak, N. (2002). Core competencies for sustainable competitice advantage: A structured methodology for identifying the core competence, IEEE Transactions onengineering Management, 49 (1), 28-35.

[5] Hamel and Prahalad (2004), Competing for the Future, Harvard Business Scholl Press, Boston, Masschuesetts

[6] Kuncoro, M., (2008), mendongrak Competitiveness, Conclusions and Recommendations, news.okezone.com.index. komendasi, news.okezone.com / index.php / ReadyStory / 2008/09/10/58/144531 / boost-competitiveness.

[7] Leonard-Barton, D. (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13 (Special issue), 111-125. http://dx.doi.org/10.1002/smj.4250131009

[8] Sanchez and Heene, A. (1997). Reinventing strategic management: New theory and practice for competence-based competition. Eur. Manage. J., vol. 15, no. 3, pp. 303-317. http: //dx.doi.org/10.1016/S0263-2373 (97) 00010-8S

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Characteristics, Perception and Preference of Female Consumers Towards UKM Fashion Products

Fatimah1 and Aminah2

1,2Accounting Departement State Politchnic of Jakarta Jalan Prof. Dr. G. Siwabessy, Campus University of Indonesia, Depok 16425

Email: [email protected] , [email protected]

Abstract

The goal of this work is to describe the characteristics of female consumers of fashion UKM (small business) and also to measure their perception towards the products. In order to measure the perception and the preference, we use two different methods: self-report and involuntary behavior. We use the sample of the consumers in Depok to study their characteristics that includes their occupation, age, level of income, frequency of the purchasing of fashion UKM products as well as the amount of their income spent on that particular expense. We learn that 51% of female consumers in our sample show high perception towards the fashion UKM products, while the rest show otherwise. Highest score of perception is as high as 69.5% and the lowest one is 21.55%. From the consumer preference aspect, we also learn that consumers see the cheap and high quality products from the trend-aware manufacturers to be more appealing. Key Words: consumer characteristics, perception, preference

1. INTRODUCTION Fashion industry is one of the top fast-growing and evolving industries. The designs alterations heavily depends on the ever-changing trends. According to Ardistia Dwi Asri, the founder of Ardistia New York, in designing a fashion product, a designer should consider the life styles from its consumer target as well as determine the consumer needs, age, occupation and their spending habbit. The majority of Indonesian are still doubting the ability of local UKM in following the recent lifestyle trends. The common perception is that fashion UKM still produce low quality, less varying, and outdated products. It is also a fact that the majority of upper class people regard foreign brands to be more prestigious. This kind of perception leads the consumers to prefer foreign brands regardless of the prices.

The people of Indonesia believe that high quality products equals to famous and expensive brands. Nielsen survey shows that the consumers tend to choose global brands over the local

ones, even when the local brands go premium (swa.co.id, January 2013). That less beneficial perception is added by consumers low faith, knowledge and impression towards fashion UKM products. This perception and preference of Indonesia consumers are not legitimate. Based on the our Community Service Program experience in helping and supervising UKM manufacturers, the quality most of the produced products are on par with the well-known brands or even imported products.

Based on the given background, our contribution in this work is to study the characteristics, perceptions, and the preference of female consumers toward the products of fashion UKM.


2.1 Data Collection Method Sources and Types of Data We use both primary and secondary data in this work. Primary data is acquired directly from female consumers through interview using well-structured questions list.

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Secondary data is acquired by collecting various available data from previous related researches, such as scientific journals, authorized institution, or other kind of literatures. We analyze both quantitative data and quantified qualitative data. Our main source of primary data is female workers in 5 districts in Depok. Primary data is consisted of several variables such as: consumers’ characteristics, perception, and preference towards fashion UKM products. We acquire the data through structured interview using survey questionnaires.

Research Instrument

The measurement of female consumer characteristics is performed with questionnaires instrument that consist of several answer options. The corresponding questions was created based on questions that stated by Ardistya, an international level fashion designer. Some critical variable we use to study the consumers characteristics are: a) age b) occupation c) monthly income d) fashion UKM products purchasing frequency e) percentage of monthly income spent for corresponding purchase f) degree of education.

To quantify the perception and preference of consumers, we use the theory proposed by Syaifuddin Azwar. According to Azwar (2013), perception and preference measurement is similar to behavior measurement. Although being abstract in nature, behavior could be measured and converted into numerical system. The measurement can be performed using two distinct methods: self-report and involuntary behavior. Self-report is a method where a given answers can be an indicator of how the perception or preference toward any arbitrary object. We use Likert scale in our questionnaires instrument

so the respondents could express their reaction toward a statement.

Using Likert scale, perception variable was distinguished between positive items (favorable) and negative items (unfavorable) in the scoring procedure. There are 20 questions in the questionnaires that consist of 12 favorable items and 8 unfavorable items. While preference variable is measured through 10 item of questions.

Scoring Scale

FAVORABLE UNFAVORABLE Highly Agree

SS 4 Sangat Setuju

SS 1

Agree S 3 Setuju S 2

Disagree TS 2 Tidak Setuju

TS 3

Highly Disagree

STS 1 Sangat Tidak Setuju

STS 4

We use the theory of perception in order to compose the questionnaires in this work. We measure the consumers’ perception towards fashion UKM products based on 5 criteria: products design, products quality, prices, products advertisement, and product distribution.

No.

Item Favorable Unfavorable Total

1 Produk UKM fesyen

1,2,4,5,6,7*,11*,20

10,13,15* 11

2 Promosi UKM fesyen

18 12,9,17 4

3 Harga UKM fesyen

3, 14* 2

4 Distribusi

UKM fesyen

16, 19 8 3

5 Total 13 7 20

*ignored due to invalidity

We interpret the summed rating scaled individual scores by comparing them with mean score of group in

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which they belong. This relative comparison can be used to determine whether an individual show favorable or unfavorable perception. We convert each score into standardize T score in order to make them more interpretable. The standardization T score is derived from the following equation:

Ket: x = Respondent’s original score (in behavioral scale

Group mean score s = Group standard deviation

Each individual T score t is used to determine their perception using this following condition:

Favorable (positive perception) IF t > 50

Unfavorable (negative perception) IF t < 50

3. RESULT AND ANALYSIS Proportion of Consumers from each Group: Occupation, Age, Eduation Level, or Consumer Income, Belonging to Fashion UKM Products Purchasing Behavior Classification

Table 1. Occupation Groups

Occupation

Purchasing Freq:

At least once a month

At least 10% of income spent on UKM products

PNS 44,4% 74,07%

Private Sector

57,69% 75%

Self-Employed

57,14% 52,38%

In this work, we classified the respondents’ occupation into three different classes: civil servant (PNS), private sector employee (Swasta), self-employed. The percentage of PNS group who at least purchasing UKM products is as high as 44.4%. Private sector and self-employed group have roughly similar percentage at 57.69% and 57.14%.

We see that there is no significant relation between different types of occupation to the frequency of UKM products purchasing.

The PNS income increment is commonly affecting the improvement of working disciplinary. Our work show that there is no significant difference of the purchasing frequency among different occupation group. This means that all female consumers, regardless of their current occupation, only do at least one spending in a month for UKM products purchasing. We see no correlation between the common views that PNS are often do work leave to visit shopping center, to the fact number of their fashion UKM products purchasing.

Consumers’ income percentage spent on fashion products has become one of the key factor in considering their effective marketing strategy. For producer point of view, the bigger percentage of consumer income used on this purpose means higher chance of getting higher profit. In this work, we see no significant difference of PNS and private sector employee in terms of their income percentage spent on UKM products. Interesting point we see is that 38.10% of consumers from private sector group are willing to spend at least 20% of their income to purchase fashion UKM products.

There is no consensus among financial expert regarding common percentage of people income spent on fashion needs. We regard that 10% to 20% percentage of spending on fashion needs as a normal behavior. In this case we don’t see any significant difference between respondent groups. It is known that one of woman biggest expense fall on fashion needs such as cloth, shoes, and purses. Weekend sales held

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weekly by most of shopping centers are helping to confirm this fact. That said, the simplicity of the usage of credit card as a payment tools is viewed as one of the factor that affecting the fashion products purchase.

Table 2. Age Group

Age

Purchasing Freq:


At least 10% of income spent on UKM products

20 – 30 yr

55,3% 65,96%

31 – 40 yr

57,89% 68,42%

41 – 50 yr 53,57% 75%

> 50 th 33,33% 83,33%

Age groups show varying characteristics of fashion products purchasing behavior. For age 20-30 group, the percentage of consumers who do the purchasing at least one time in a month is as high as 55.3%. For 31-40 age group, the number is 57.89%. A quite similar number showed by 41-50 age group at 53.57%. While in >50 age group, the number is only 33.33%. Most of consumers from >50 group do the purchasing at least 2 times in a month.

Age is a demographical variable that characterize the consumers. In this work, we learn that consumers whose age fall in 20 to 50 years interval show bigger tendency in purchasing fashion products at least once a month. Although Savitri (2008) stated that female consumers tend to show impulsive purchasing behavior where purchasing is performed spontaneously to appealing fashion products, our work show otherwise. We see that our sample of female consumers show more planned

purchase. In the age between 20 and 50, females tend to spend of their time and money for family purpose. Their primary expense in this age are commonly used for household and child education needs. It is reasonable that they only do the fashion purchasing once in a month.

Different situation happens to age >50 group. At that stage of age, this group commonly has a privilege to experience more stable life where their dependents are usually have reach financial independence. For that reason, the female consumers in this group tend to has greater purchasing ability. According to WIC research in 2011, female consumers relatively spend more time in purchasing process. Female consumers are more comprehensive, paying more attention to make a better purchasing decisions.

From career perspective, this group of age commonly have more strategic and stable position where they put high priority in their looks. A research conducted by Rubik Ekonomi Bisnis (2013) show that Indonesian consumers tend to buy products that suit their personality so fashion product purchase would highly depends on personal preference. Female workers would spend more time and money just to gain positive impression of their looks.

From age perspective, the groups within age 20 to 50 do not show significant difference in terms of their spending of fashion products. Within that span of age, most of the consumers only spend 10% of all their income to purchase fashion products. Meanwhile, for >50 age group, we can see that they have, by far, biggest percentage of consumers who spend at least 10% of their income for fashion products, at 83.3%.

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Table 3. Education Level Groups

Education Level

Purchasing Freq:


At least 10% of income spent on

UKM products

High School 62,5% 62,50%

Diploma 52,17% 69,57%

Bachelor 58,54% 73,17%

From the perspective of education, female consumers with one time in a month purchase don’t show any significant difference in terms of their education level. 62.5% of female consumers with High School education purchase fashion products once in month. The group of Diploma has 52.17% in percentage, while the group with at least Bachelor degree education has 58.54% in percentage. We understand that degree of education is highly correlated to occupation and amount of monthly income. Group with higher level of income tend to have better purchasing ability, particularly for fashion products.

Next, in this following table we show 4 groups of female consumers based on their level of income, with their corresponding percentage of purchasing frequency:

Table 4. Income Group

Pendapatan

Purchasing Freq:


At least 10% of income spent on

UKM products

Rp 1 – 2 Million

46,67% 66,67%

Rp 2 – 3 Million

57,14% 64,29%

Rp 3 – 4 Million

64% 72%

> 4 Million 46,88% 75%

64% of consumers whose income is within Rp 3 – 4 Million purchase

fashion UKM product at least once in a month. This number is quite high compared to other three groups. 32.14% of consumers in the group whose income is within Rp 2 – 3 Million purchase fashion products at least two times in a month. The group whose income is more than Rp 4 Million has quite similar number at 31.25%. We see that fashion UKM should take an advantage out of this purchasing frequency. Producer must do maximum marketing effort in order to convert consumers visit into sell. The chance of sell will gain significantly due to effective marketing. This is confirmed by WIC research (2011) that show that most consumers (57%) has low loyalty towards a particular products and therefore it is easy to lure them to buy another brand.

Female Consumers Perception towards Fashion UKM Products in Depok

It is been known that gender inequality has no longer around in career world. The proportion of female and male worker is quite balance. Due to this condition, it is reasonable that female needs towards fashion products are increasing in order to boost their looks.

Fashion industry is one of the creative sector of industry that recently having a rapid growth. Amidst current economical struggle in Indonesia, this industry could be used to help increasing economic growth. According to the statement of Ministry of Tourism and Creative Economy in recent Fashion Week 2015 opening, Indonesian fashion industry contribute up to 28.9% of national income. Fashion industry also provide Rp 76.780 Billion or as big as 9.51% of the total export revenue. Unfortunately, biggest proportion of those numbers is

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contributed by huge manufacturers while small fashion manufacturers still struggle to compete in the market.

About 10% of the total Indonesian UKM work in fashion sector. In recent time, the government collaborating with some other parties are performing a mapping in order to determine fashion cluster while keep performing training and development particularly in terms of product standardization, design, copyright, and marketing. So far, most of Indonesian have a negative perception towards fashion UKM products which clearly hold off the development of local small industries. Herlina (2012) stated that perception are highly correlated to human decision to purchase. Other works also support this claim, adding the fact that perception, behavior and hedonic shopping motivation simultaniously and partially lead to purchase decision (Arthur, 2014).

In this work, we see that consumers in our sample is evenly split in terms of their perception towards fashion UKM products. 51% consumers show high perception while the rest of them show otherwise. This perception criteria includes: products quality, marketing program, price level, and product distribution. Due to even percentage distribution between two perceptions that we measure, we are unable to make a clear conclusion. Nonetheless, we find that highest score in positive perception group is 69.5% while the lowest score in negative perception group is as low as 21.55%. Even though there is no clear reference, we understand that as the score getting closer to 100, the perception is better. We see that individual score at 21.55% means a poor perception, while 69.05% is still not good enough.

Most of our sample are young female whose age is within 20 to 30 years. High perception towards fashion UKM products that only showed by merely 51% of the sample is clearly not a good sign. A research conducted by Wahyu (2010) show that consumers of well-known and prestigious fashion brand have better self-confidence. Even though the correlation level is only at 43%, it clearly is still something that we need to pay attention about. According to BKKBN in 2010, 27% of Indonesian population belong to younger age group. This is clearly a sign that young consumers are huge market to penetrate. The marketing strategist should consider the fact that consumers’ low confidence due to their inability to obtain well-known fashion brand, is a positive marketing opportunity. This means the local small fashion industry can directly target this consumers’ niche using correct marketing approach that take into account of confidence issue previously mentioned.

Female Consumers Perception towards Fashion UKM Products based on Their Current Occupation, Age, Education and Income Level

Among several occupation group we have in our sample, we find PNS group as the group with lowest perception towards fashion UKM products. There are up to 59.2% of this group who regard those products with poor perspective. This does not simply imply that PNS are better financially than other groups. According to Tempo.com (22/4/15), the fact that 56% of PNS in Depok are female, means that they are a great potential market for fashion UKM products.

It is clear that we need to convert the negative perception of the UKM

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products reversely. In order to do that we need to study what this potential female consumer really desire to purchase. Fashion products are easily observed to determine their quality, design, model variation and its relevance to current trends. The number of big shopping center in big cities like Depok and Jakarta, or even an online stores, make it really convenience for female consumers to obtain these products with a reasonable prices. In contrary, it is difficult for UKM to penetrate this already established market. Nonetheless, we can tweak this condition by opening outlet or display of UKM products in shopping centers, though the rent cost would be huge disadvantages.

From age-based consumers groups, we see that the group of >50 age has the biggest percentage of consumers with low perception towards UKM products. The percentage is as high as 83.3%. Different groups of age commonly have different type of needs. The group of > 50 age is known to have spending priority that solely focus on personal needs. That said, it is normal that they highly prioritize the quality of products of their potential purchase. In this particular case, this group of age would desire highest quality fashion products. Small fashion manufacturers clearly need to focus their effort to improve their products quality in order to fulfill this group desire. Their products quality must be at least on par with well-known brand produced by big manufacturer that also well-distributed across the big cities.

Pendidikan dan pendapatan memiliki hubungan yang sangat erat. Seorang yang memiliki pendidikan tinggi akan memiliki pendapatan yang sebanding dengan pendidikan yang dimiliki.

Dalam penelitian ini, konsumen perempuan yang memiliki pendidikan setingkat SMP tidak signifikan untuk disimpulkan karena jumlah responden yang hanya 1 orang saja. Sementara tingkat pendidikan SMA, Diploma dan Sarjana, persentase konsumen perempuan yang memiliki persepsi tinggi maupun persepsi rendah seimbang. Persentase konsumen perempuan yang memiliki persepsi rendah terhadap produk UKM fesyen terlihat pada kelompok mereka yang memiliki pendapatan lebih dari 4 juta rupiah. Terdapat 65,6 persen konsumen perempuan yang memiliki pendapatan lebih dari 4 juta rupiah yang memiliki persepsi rendah terhadap produk UKM fesyen.

It is a known fact that education is highly correlated with level of income. As one’s degree of education gets higher, the chance is, his/her level of income gets higher as well. In this work, we cannot conclude anything from group of lower education group due to its inconsiderable number of sample. Meanwhile, each group of higher education degree consumers (Highschool, Diploma, or Bachelor) have equal measurement of positive and negative perspective towards fashion UKM products. The group with income level of Rp 4 Million or more has the lowest perception. 65.6% of them show poor perception while the rest show otherwise.

High income allows the consumers to purchase higher price products. Local manufacturer who are targeting this piece of market must not hesitate to produce high quality products in the expense of higher production cost. Steady economic growth of Indonesia lead this upper class consumers market to grow as well. Local manufacturer must focus their effort to produce higher quality products in

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order to seize this particular market from already existing big manufacturer.

Female Consumer Preference towards Fashion UKM Products

Our preference analysis involves interviewing process using 10 items questionnaires consist of following variables: product design, product prices, product distribution, and products marketing. For product design, we learn that 59% of respondents disagree to the statement that UKM products should be simple. 59% of the the sample desire the UKM products to be keeping up to date with current trend. However, up 70% of the respondents disagree that the products design should only based on Indonesian culture themes. Here we see that, imported products more or less influenced consumers preferences towards fashion products.

In terms of products price, 71% of the respondents prefer less varying prices. Surprisingly, 65% of the respondents disagree that UKM products should cost less than its major brand competitors. We also learn that 58% of respondents disagree to the fact that it is easy for consumers to find UKM fashion products. From this fact, we can learn that consumers still lack of information of where to find UKM products. This is supported by the fact that 48% of our total respondents disagree to the statement that information and promotion of local UKM fashion products is better than its big manufacturer competitors.

4. CONCLUSION In this work, we conclude that there is no significant difference between occupation-based groups of female consumers in terms of their frequency of purchasing of fashion UKM (small business and industries) products. Age-based group show quite similar

fashion whereas only a group of >50 age that at least purchase UKM products twice a month. Education-based groups does not seem to have significant differences as well. Most of them only do the purchasing once in a month, and for the group with low education degree, the frequency of purchasing is as low as twice a year.

We see that most of female consumers spend 10% of their income to purchase fashion UKM products. That numbers do not differs among the groups based on occupation, age, education and income level. We also learn that 51% of female consumers in our sample show positive perception towards fashion UKM products. The perception measurement is based on following criteria: products quality, marketing, distribution, and prices. Highest individual perception score is 69.05% while the lowest one is 21.55%.

Based on classification of consumers’ characteristics into several classification such as occupation, age, education and income, we see that consumers’ perception is evenly split. Nevertheless, 83.3% of a group of consumers with > 50 age has a poor perception towards fashion UKM products.

Female consumers desire well designed, trend-aware and varying fashion products from local small industries. Most of them are also expect the products of small manufacturers to be much cheaper than its big manufacturer competitors. They also expect the products to be well-distributed as well as well marketed.

5. SUGGESTION We suggest that it takes more effective marketing strategy in order to increase consumers’ perception

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towards UKM products particularly fashion products. The strategy should involve special positioning from consumers viewpoint who possess a tremendous market potential.

6. BIBLIOGRAPHY [1] Anggraini, Elvira, 2012,

Pengalaman komunikasi Konsumen wanita dengan Gaya Hidup “Btand Minded” Fakultas Ilmu Sosial dan Ilmu Politik Univ Diponogoro semarang.

[2] Arifah, Amalia,Dista & Indriastuti, Maya, 2012, Peningkatan Kinerja UKM Dengan Mengelola Intellelectual Capital dan Inovasi, Proceding of Conference In Business Accounting and Management (CBAM) Unissula Vol 1, 1 Desember 2012

[3] Deputi Bidang Kajian Sumber daya UMKM , 2006, Jurnal Pengkajian Koperasi dan UKM No 2 tahun 1, 2006

[4] Dessler, Gary, 1999, Manajemen Sumber Daya Manusia, Prenhallindo, Jakarta

[5] Frederica, Geofanny, Bunga dan Chairy, 2010, Pengaruh Psikologis Konsumen Terhadap Keputusan Pembelian Smartphone BlackBerry, jurnal Manajemen Teori dan Terapan th 3 No 2 agustus 2010 128 – 141

[6] Jonathan, Malaiholla, 2007, Perilaku konsumen Terhadap Keputusan Membeli produk air minum dalam kemasan, (studi pada konsumen di kota Ambon) Jurnal Ekskutif 4(2)

[7] Kotler, Philip, 2007, Manajemen Pemasaran: Analisis, Perencanaan, Implementasi dan Pengendalian, Edisi sembilan, Salemba Empat, Prentice Hall

[8] Lesar, Sjuultje, Anneke ,2010, Pengaruh Faktor Psikologis Tehadap Pembeliaan Berlian, Perpustakaan Digital Universitas Terbuka.

[9] Maleke, Liffie, Cindy, 2013, Faktor Sosial dan Psikologis Pengaruhnya TerhadapKeputusan Pembelian BlackBerry Gemini Pada PT

MegaMitra Makmur Sejahtera, Jurnal EMBA Vol 1 No 3 September 2013 551-561

[10] Mansyur, Agus,2008, Key Succes Faktor Perempuan Dalam Mengelola dan Mengembangkan UKM, Proceding Seminar Nasional Teknoin 2008, Bidang Teknik Industri

[11] Marhaini, 2008, Analisis Perilaku Konsumen Dalam Pembelian Komputer Merek Acer (Studi Kasus Fakultas Ekonomi Universitas Sumatra Utara), Jurnal Manajemen Bisnis, Vol 1 No 3, September 2008, 89 – 96

[12] Nafillah, ST, 2012, Persepsi Konsumen Terhadap Keputusan Pembelian Sepeda Motor, Fakultas Ekonomi, Unhas

[13] Prabu, Anwar & Mangkunegara, 2011, Management Sumber Daya Manusia Perusahaan, Bandung PT Remaja Resda Karya

[14] Pramono, Rachmadi, 2001, Organisasi Pembelajar Bagi Usaha Kecil dan Menengah: Permasalahan Dan Peluang, Jurnal Administrasi dan Bsnis Vol 1 No 1 Juli-September 2001 ,Universitas Katolik Atmajaya.

[15] Pristiana, Uli & Kusumaningtyas & Mujanah, Siti, 2009, Faktor-Faktor Yang Mempengaruhi Pengambilan Keputusan Wanita Berwirausaha Di Surabaya, Jurnal Riset Ekonomi dan Bisnis Vol 9 No 1 Maret 2000

[16] Raharja, Wida, Shaila Arifin, Zainul dan Wilopo , 2013, Pengaruh Psikologis Konsumen Terhadap Keputusan Pembelian Pada PT Winnertech Lintas Nusa, Skripsi Fakultas Ilmu Administrasi, Universitas Brawijaya.

[17] Rahayu, Sri, Ninik (2007), Profil Akses Dan Kontrol Perempuan Pelaku Usaha Mikro Di Bantul Terhadap Berbagai Sumber Daya Produktif, Thesis FE UII Oktober 2007

[18] Ridwan, 2002, Skala Pengukuran Variabel-Variabel Penelitian, Penerbit AlfaBeta, Bandung

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[19] Ridwan, 2007, Belajar Mudah Penelitian, Penerbit AlfaBeta, Bandung

[20] Rangkuti, Freddy, 2008, Analisisi SWOT Teknik Membedah Kasus Bisnis, Reorientasi, Konsep, Perencanaaan Strategis Untuk Menghadapi Abad 21: Pt Gramedia Pustaka Utama Jakarta

[21] Savitrie , Dian, 2008, Pola Perilaku Pembelian, Fakultas Ekonomi UI

[22] Setiadi, Nugroho J, 2008, Perilaku Konsumen Konsep dan Implikasi Untuk Strategi dan Penelitian Pemasaran, Kencana Prenada Media Group, Jakarta

[23] Supriyadi, Dedy , 2010, Meningkatkan Daya Saing Produk UKM Melalui Perbaikan Mutu Produk, Jurnal Tri Darma Febuari 2010

[24] Supriyanti, Heni dan Soedjono, 2013, Pengaruh Faktor Psikologis Terhadap Keputusan Konsumen Dalam Pembelian Honda Vario di Surabaya, jurnal Ilmu dan Riset Manajemen Vol 1 no 1, januari 2013, STIE Surabaya

[25] Saputra, Rico, 2013, Pengaruh Motivasi, Persepsi, Sikap Konsumen Terhadap Keputusan Pembelian Mobil Xenia, Jurnal Manajemen Pemasaran Vol 1 No 1 Hal 1 – 12

[26] Saktiawan, Johanes, 2012, Pengaruh Persepsi Nilai Konsumen Terhadap Minat Beli Produk Private Label Hypermarket Carrefour di Semarang,Fakultas Ekonomi Undip

[27] Tjiptono, Fandy, 2008, Strategi Pemasaran, Penerbit: Andi, Yogyakarta

[28] Yahya, 2011, Pengaruh Variabel Demografis Konsumen Terhadap Keputusan Pembelian Deterjen,

Jurnal Akuntansi Manajemen Bisnis dan Sektor Publik, (JAMBSP), Vol 8 no 1 Oktober 2011 hal 23 – 38

[29] Yuliati, Noor, Lilik, 2011, Persepsi Manfaat Dalam Perilaku Pembelian Konsumen Online Shop, Jurnal Ilu Keluarga dan Konsumen, Vol 4 No 2, 171 – 181, Agustus 2011

[30] Burhanuddin, Reisty, 2010, Hubungan Persepsi Terhadap Merk Aqua Dengan Keputusan Membeli Pada Mahasiswa Psikologi UIN Syahid, Jakarta

[31] Saputra, Rico, 2013, Pengaruh Motivasi, Persepsi dan Sikap Konsumen Terhadap Keputusan Membeli Mobil Daihatsu Xenia di Sidoarjo, Jurnal Manajemen Pemasaran Vol 1 No 1(2013) 1 – 12

[32] Novandari, Weni dkk, 2011, Analisa Kinerja UKM Batik Banyumas Dengan Menggunakan Metode Importance Performance Analysis (IPA) Dan Potensial Gain Of Customer Value’S Index , Jurnal Bisnis dan Ekonomi (JBE), September 2011, Vol 18 No 2,ISSN 1412-3126

[33] Azwar, Saifuddin, 2013, Sikap Manusia Teori dan Pengukurannya, Pustaka Pelajar, Yogyakarta

[34] Nurahaju, Rini, 2005, pengaruh resistensi perubahn dan kecerdasan emosi terhadap sikap dosen mengenai perubahan ITS dari PTN menuju PT BHMN ( tesis UNAIR surabaya 2005 hal 70).

[35] Black, James A & Champion Dean J, 1992, Metode dan Masalah penelitiansosial terjemahan oleh E Koeswara dkk ,Jakarta, PT Refika, hal 157:

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Opportunity and Threat of Bandung Fashion SMEs Facing The Era of Asean Economic Community (AEC)

Tuty Herawati1 and Etty Kongrat2

1,2Politeknik Negeri Jakarta Email: [email protected]

Abstract

The aim of this research is to identify existing condition of Bandung Fashion Small and Medium sized enterprises (SMEs) and analyse it characteristics and needs, how Fashion SMEs develop their management for increasing competitiveness in the era of the ASEAN Economic Community (AEC).. Methodology used in this research is qualitative method by conducting in-depth interview to fashion SMEs practicioners uses survey for collecting data by distributing questionnaires .The data were collected from primary and secondary sources, it generated and analysed using descriptive The conclusions of this research is the current condition a potential and competitive fashion SMEs were run by young and educated people , such as shoes and denim has a selling point by utilizing advances in technology and has a unique product that has competitiveness, but still weak in management and accounting. While SMEs are managed by micro entrepreneurs and un-educated, producing mass product , the quality is low , today mostly their staffed by individuals who has 2 or 3 function as the owner , manager , and worker as well as utilize the labor of family and close relatives, management is also low, limited capital pr, difficult to get loans from banks, face. the rapid development of technology, and some of them received training from the government is not specific material as required. There are 2 concept solutions to rise Bandung Fashion SMEs competitiveness , the first for the SMEs that already have unique products and ways of marketing are given specific training to the fields of management, accounting and strategy for export while for SMEs Fashion which is conventionally given training in how to make a good quality product and conducted assistance and support given by the Government both in terms of equipment or the ease of applying for the loan Key Words: SMEs, AEC, Fashion 1. RESEARCH BACKGROUND Small and Medium sized enterprises (SMEs) are the backbone of Indonesian economy is therefore to maintain the stability of the Indonesian economy should SMEs received significant attention and dealt with properly ,. Indonesia is a huge captive market, about 60% of ASEAN population are Indonesian citizen, therefore if Indonesian citizen buy and used its product, Indonesian SMEs will be develop and has a strong competitiveness in ASEAN. It will much better if Indonesian SMEs able to grab global market. The other hand if SMEs product not performed and low quality and didnt used by Indonesians it self, automatically Indonesian huge market will be taken by another country such as Thailand.

Bandung is metropolis , as capital city of West Java, in 1955 it was a venue of Asia Africa Conference, even India Prime Minister Jawaharlal Nehru called Bandung is capital city of Asia Africa. Now Bandung Famous as creative city, Fashion is one of the leading creative industries in Bandung. Therefore Bandung be a city af fashion

Based on description above, researcher interest to do study with title “Opportunity And Threat Of Bandung Fashion SMEs Facing The Era Of Asean Economic Community (AEC)

2. RESEARCH PURPOSES The aims of the need to be carried out in this research are as follows:

a. Identify existing condition of Bandung Fashion Small and

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Medium sized enterprises (SMEs) and analyse it characteristics and needs,

b. How Fashion SMEs develop their management for increasing competitiveness in the era of the ASEAN Economic Community (AEC)

3. THEORY Based on journal reference : “Alison Smith, John Whittaker, (1998) "Management development in SMEs: what needs to be done?", Journal of Small Business and Enterprise Development, Vol. 5 Iss: 2, pp.176 – 185 , This paper examines the state of play regarding management development in SMEs. Additionally, it discusses government initiatives which seek to develop SMEs competitiveness through encouraging increased take-up of management development. Helping SMEs to develop and grow is important to the national economy and a number of government initiatives are now in place to meet this need. Developing people in line with business objectives is a priority which the government is promoting through the Investors in People process and the acquisition of National Vocational Qualifications. However, the style of SMEs is focused upon short-term activist priorities of obtaining business while the longer term strategic view, of which people development is a significnant part, tends to be an overlooked area. The paper reviews the current literature regarding the contribution of SMEs to the UK economy and the relationship of management training to SME performance. The authors identify a need for research investigating the level of awareness amongst SMEs of the opportunities available to them for developing their staff, their attitudes toward the range of initiatives and

options, and the degree of take-up. A greater understanding of the adequacy and appropriateness of government approaches to SME development would allow agencies which can support SMEs, such as Training and Enterprise Councils, Regional Development Agencies and providers of training and development, to target their assistance more effectively.

Aylin Ates, Patrizia Garengo, Paola Cocca, Umit Bititci, (2013) "The development of SME managerial practice for effective performance management", Journal of Small Business and Enterprise Development, Vol. 20 Iss: 1, pp.28 – 54, The paper found that SMEs engage with a four-stage performance management process, although there are some gaps between their practice and the complete process as recommended in literature. SMEs seem to be more focussed on internal and short-term planning, whereas they pay less attention to long-term planning. The main challenge for making performance management practice more effective lies in an appropriate, balanced use of strategic and operational practices and relevant measures. Therefore, managerial activities such as vision, mission and values development, internal and external communication, change management and horizon scanning represent recommended areas for improvement.

“Strategy to develop Strong SMEs” Study found that government faced problems in developing SMEs , Formulating and Implementing Strategy or program should be set up for two different SMEs condition. The first one is how to develop existing strong SMEs and the second one how to develop a new strong SMEs. The Strategy (program) in developing two kind of SMEs competitiveness must

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be specific and properly. (Tejo Nurseto, 2004).

4. RESEARCH DESIGN Methodology use in this research is qualitative method by conducting in-depth interview to fashion SMEs practitioners

5. DATA COLLECTION a. Secondary Data collected from

the study of literature through various sources and the results of previous research, textbooks up to material obtained via internet network.

b. Primary Data, taken directly from the field either through in-depth interviews (in-dept interview) or through a questionnaire (questionnaire) . This research uses a semi-structured interview, intended to get as much information as the number, so that if required can be given another question which does not exist in the questionnaire

6. DATA ANALYSIS TECHNIQUE

Primary and secondary Data are collected, analyzed by descriptive to give a general overview of the data that has been retrieved. Data collected , classified and tabulated based on the classification specified. At this stage do comparisons of primary and secondary data. The results tabulate then repeated checking is done to ensure the accuracy and logic that they are presented

7. RESEARCH RESULT Bandung Fashion industry very potential. Even some business currently deliberately choose factory outlet ( fo ), clothing company ( cc ), and distro ( distribution store ). Area dago be central business development fashion. Now there are, more than 890 company, some of them are members kick ( kreative independent clothing

kompany ). Some brand has had built popularity likes c59 t -shirt, ouval research, invictus, , fourspeed nomad, sasharina, indri, the senses pot meets and system airplane clothing and still many other. Pot Meets is one of the fashion brand denim for jeans, jackets and apparel, which has been the best jeans in Indonesia. In addition, shoes are favored by consumers, there are some well known brands such as Fionn Baxter, MKS, Tegep Shoes Kulkith Shoes, Booth, Brodo, Portee Goods and much more. Many young entrepreneurs are using technology where the marketer focus on relationships with consumers so that it can create engagement, participation partnerships, co-creation with through internet technology.

In the Cibaduyut shoe industry centers, researchers found the different conditions in which the model and quality not quite good, they still produce mass product use conventional marketing, has not made electronically due to education and knowledge are limited. But when researchers visit there, its have good opportunities because cibaduyut is still much visited by tourists from out of town using the bus, different condition in sentra knit Binong Jati, does not have a parking space it caused many travelers feel uncomfort in visiting it

The study analyses 50 Fashion SMEs found that the owner 6% junior high school education, 44% senior high school, 18% Diploma and 32% Bachelor . The current are condition of Bandung Fashion SMEs are:

a. Potential Fashion SMEs are run by young and educated people , such as shoes and denim has a selling point by utilizing advances in technology Web based, Social Media (instagram, FB, Twitter), Order online,

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Custom Boots online , Chat live on website focus on relationships with consumers so that it can create engagement, participation partnerships, co-creation with through internet technology. The product that has competitiveness, but still weak in , human resource, accounting and management is focussed on internal and short term activities. Has opportunity growing upper middle market and has threat facing strong competition.

Product unique “crafted for” to whom order the shoes available at insole shoes Creative packaging (ex : free shoes bag) Guarantee. Price: Value based, cost based, value guarantee. Place, Store and Social Media. Promotion : Social media, Advocate, sales promotion

b. While those SMEs (micro entrepreneurs) managed by low-educated people ussualy produce mass product which the quality is low as the shoes in Cibaduyut, knit in Binong Jati and T-shirt screen printing, today mostly staffed by individuals who play 2 or 3 function as the owner, manager and worker of the company, as well as utilize the labor of family and close

relatives, management is also weak, limited capital provided by the owner, difficult to get loans from banks, face the rapid development of technology, and there are some who received training from the government is not specific material as required.

c. 68% respondent (Fashion micro entrepreneurs) do not have awareness even do not know what Asean Econmic Community is

d. 38% Young and educated fashion SMEs have unique product and unique selling, they are have awareness and ready to compete in AEC Era

8. CONCLUSION a. SMEs are the backbone of

Indonesian economy is therefore to maintain the stability of the Indonesian economy should SMEs received significant attention and dealt with properly ,. Because Indonesia is a huge captive market.

b. 68% of Fashion SMEs da not have awareness and do not what Asean Economic Community is

c. Training material provided by Government not specific and not as required

d. Young Fashion SMEs obtaining program independent without government assistance

e. Fashion SMEs need Accounting, and Managerial skill training

9. RECOMMENDATION a. There are 2 concept solutions to

rise SMEs Fashion Bandung competitiveness, the first for the SMEs that already have unique products and ways of marketing

that utilizes the technology are given specific training to the fields of management, accounting and strategy for export while for SMEs Fashion which is conventionally given training in how to make a good quality product and conducted assistance and support given by the Government both in terms of equipment or the ease of applying for the loan capital.

b. Proper strategies for Bandung Fashion SMEs can develop its

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competitivness in the era of the ASEAN Economic Community (AEC).

c. Government should give training how to make a good quality product and conducted assistance and support given both in terms of equipment or the ease of applying for the loan

10. BIBLIOGRAPHY [1] “Alison Smith, John Whittaker,

(1998) "Management development

in SMEs: what needs to be done?", Journal of Small Business and Enterprise Development, Vol. 5 Iss: 2, pp.176 – 185

[2] Aylin Ates, Patrizia "The development of SME managerial practice for effective performance management", Journal of Small Business and Enterprise Development, Vol. 20 Iss: 1, pp.28 – 54

[3] Tejo Nurseto, 2004 “Strategy to develop Strong SMEs”

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Triple Helix Concept in Research Collaboration Between Industry, Government and Polytechnic

Through Collaborative Knowledge Creation Approach

Iis Mariam1, Nining Latianingsih2, Eva Zulfa Nailufar3

Lecturer of Business Administration Department: State Polytechnic of Jakarta Jl.Prof. GA Siwabessy, New Campus UI, Depok -West Java, Indonesia

Phone / Fax: 62-21-7863538, 62-21-7863521 [email protected] , [email protected] , [email protected]

Abstract

In the era of globalization is currently repositioning of vocational education in Indonesia has an important role considering the needs of the industry in recruiting qualified and competent labor can be met by graduates of vocational. Graduates are qualified and competent because of polytechnics applied the principles of curriculum more emphasis on practice (60%) and theory (40%). Polytechnic collaborate with industry and government through the role of applied research to respond the needs of industry and government. The collaboration of industry, universities/polytechnic and government gave the concept of Triple Helix IUG (industry-universities-government) which characterize Triple Helix beginning of the industry's role as user needs, the university as a means of developing academic and government that have authority in the rules, so that the concept of the triple helix capable of building mutually beneficial relationship with one another (Etkowitz:2008, Thorp and Goldstein: 2010). The study was conducted in three polytechnics, such as: Bandung State of Polytechnic (POLBAN), State Polytechnic Manufacturing of Bandung (POLMAN) and Jakarta State of Polytechnic (PNJ). This study aims to identify and analyze the role of industry and government in the development of applied research partnership based in polytechnics. Method of data collection used observation, interviews with the Chairman of the Research Unit and Community Services and the Assistant Director of Cooperation and Industry. Fund of research have a different sources, namely: research conducted jointly with industry, research carried out on the proposed requirements of the government as well as research conducted independently without any kind of cooperation with industry and government but provide results recommendations to industry and government including that empowers people. Cooperation among government, industrial and polytechnic such innovations can extend into a new mode of production within a region, across a national innovation systems, and even more broadly. The optimum role of government in technology innovations make a policy and analysts sought a new conceptual framework for innovation to justify a role for government and helped inspire the triple helix models. Results of research published in the journal proposed knowledge management, economics and business journals. Keywords: triple helix, collaborative knowledge creation, Polytechnic, applied research 1. INTRODUCTION In the era of globalization and information technology, vocational education in Indonesia has an important and strategic role for education programs, more emphasis on theory and practice in addition to referring to the industrial needs. To improve its competitiveness within the effiiency–driven global economy, Indonesia currently needs to address higher order skills, knowledge and innovation. Higher education is critical to achieving economic growth

and national competitiveness. More government are developing explicit innovation strategies which include various programs that support universities in taking on greater economic roles. Emphasis on university-government partnership is a global trend not only in OECD Countries, but also in emerging economies, and increasingly in developing countries (ACDP Report: 2013).

In a knowledge-based society, university, industry and government

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have equal roles and form a triple helix in stimulating innovation. A stable regulatory framework is a necessary but not sufficient condition. The transformation of a university from a teaching to a research and thence to an entrepreneurial institution is vital. Government must help to support the new developments through changes in the regulatory environment, tax incentives and provision of public venture capital. Industry takes the role of the university in developing training and research, often at the same high level as universities. If knowledge-based industries are lacking, university-government interactions can help jump-start their creation (Etzkowitz, et.al.,: 2007).

2. LITERATURE REVIEW 2.1 Definition of Triple Hellix Concept Triple Helix concept in the world of higher education involving three parties, namely the government, industry and educational institutions (Universities-Industry-Government / UIG), which plays an important role in increasing competition and economic growth that have high competitiveness and give birth to new innovations. By karen The concept of Triple Hellix is a synergy between academia, business / industry and government with the involvement of resource factors, science and technology as well as its focus to deliver a wide range of innovations and new findings are applicable and generate business opportunities.

UIG concept adopted from Etzkowitz & Leydesdorff (2000). The role of higher education is still the focus of producing graduates but is not yet fully able to produce graduates who have the creativity and innovation of products and services oriented to business innovation. Therefore the role of educational institutions in

Indonesia should be in line with the concept of business and industry through the development potential technopark in several cities. To produce a qualified workforce, the role of higher education institutions must be supported with an overarching policy and encourage synergies with government education, qualified human resources, capital, raw materials, product quality standards, as well as network marketing

Based on ACDP Report (2013) graduate unemployment problem comes from college graduates become an important issue for education providers including polytechnic education. Processes and patterns of learning in university should always be adaptive in the face of change and competition to get a job in the industry. Referring to the problem of labor that is not absorbed in indusrti give effect to the university to evaluate patterns of provision of education, curriculum taught, partnerships with industry, corporations, governments and professional associations. Partnerships with external parties benefit university institutions, faculty and students in gaining knowledge and direct experience of practitioners so that there is a balance between the ownership of knowledge and experience in the field. Proces direct learning from practitioners provide experience for students and a provision when students do field work practice (on the job training) and the results are brought to campus as practical knowledge.

Vocational education can play in regional economic development depends not only on their current level of interaction with government and industry, but also on their capacity to play a proactive role with

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respect to other actors. Considering the capabilites required of universities, the extended triple helix model for regional development provides a helpful framework for our analysis (Etkowitz: 2002).

2.2 Innovation Innovation is a process by which organizations create and define the issues and activities that develop new knowledge to solve existing problems (Nonaka, 1994). The need for innovation in the organization to face the challenges of globalization and the rapid development of technology and information, Paavola and Hakkarainen (2005) considers that it is epistomologis learning is the process of creating knowledge, so knowledge acquisition is done by individuals, and social interaction, and collaboration process under the common object to be developed. Innovation according Hills (2008) is an idea, which is considered to be a new practice for individuals or other units.

According to Keeh, et al, (2007) in Asyhari and Wasitowati (2015) explains that the company's innovation is important, because: (a) the development of begit rapid technological change, so the company must adapt to the technological change, (b ) rapid environmental change caused by the creativity and innovation, (c) the intelligence of consumers to meet the needs, so that the necessary innovation to meet consumer expectations, (d) changes in market tastes and technologies that require products and services quickly, (e) innovations capable of creating development market segments, establish a good corporate position and increase the company's growth. La Paz and Seo (2009) in Iskandar (2014) found that there are four roles are played by actors of innovation,

namely: (a) detecting the needs and solutions which government, academia and industry, (b) the development, production and commercialization by government and industry, (c) the learning of ICT by industry and academia, and (d) the creation of markets and regulation of both government and the ICT industry.

2.3 Collaborative Knowledge Creation (CKC)

Collaborative knowledge creation (CKC) according to Du Chatenier et al (2009) in developing the organizational learning process is an important step that must be done to produce a product in the form of knowledge, services and technologies. The stages CKC includes four phases are: (1) externalizing and sharing: knowledge occurs at the level of the current group produces distributed knowledge, (2) interpreting and analyzing where knowledge happens at the individual level when produce decentralized knowledge; (3) negotiating and revising that explaining knowledge happens at the group level and (4) combining and creating explained knowledge happens at the individual level when generating knowledge that is concrete and supports innovation and new technologies.


Soft systems thinking seeks to explore the 'mesy'problematic situations that arise in human activity and this interpretive approach is strongly influenced by Checkland (1999). The seven principles and stages of SSM are: (1) problem situation considered, (2) Expressed problem situation, (3) definition of the relevant root systems of purposeful activity, (4) conceptual models of the systems (holons) named in the root definitian, (5) comparison

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of models and real worl, (6) changes systematically desirable, culturally feasible, and (7) action to improve the problem.

SSM as a methdology to perform observation of situations that occur daily in vocational education (polytechnic) located in Jakarta and Bandung and found the problem in the preparation stages of collaboration in learning and research development based on the concept of triple hellix and CKC, graduated become competent and professional, joint research and learning process within polytechnic and industry, and creating innovation and invention from the polytechnic to be intelectual right and creating business. The role of government is support for alocation research funding for academic (lecturer and student).

4. METHOD OF DATA ANALYSIS

Method of approach is used in this research methodolgy used Soft Systems Method (SSM) from (Checkland, 2006). Data collection methods used in this study were interviews, observation, and study of literature. The techniques implemented a collection of the data by: (1) in-depth interview with the person who incharge polytechnic in building relationship with the industry, and government (triple hellix concept), (2) observation, (3) study of literature / study documentation. The method of data

analysis used in this research is qualitative analysis of the data conducted in accordance with the type of the data. The data have been grouped to associate with one another and interpreted by using the Soft Systems Methodology (SSM) and CATWOE approach (Clients, Actors, Transformation, Weltanschauung or World View, Owners and Environment) in analyzing triple hellix through CKC within polytechnic, government and industry.

4.1 Data Collection Techniques This research refers to the stages that are standardized on the SSM, and the method of collection of data in the field done through observation, study documentation / literature study, informal discussions and interviews with the person in charge (Assistant of Director/Lecturer in polytechnic who has responsibility in building relationship between polytechnic, government and industry/UIG).

4.2 Results and Data Analysis Interviews and informal discussions with leaders, faculty, administrative staff and students at polytechnic as owner issues (issue owner) as well as direct observation of the condition of the problems researchers in polytechnic. The Triple Hellix process between polytechnic, industry and government (UIG) trhough Collaborative Knowledge Creation (CKC) described in the rich picture.

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Figure 1 Rich The Triple Hellix process between polytechnic, industry and government (UIG)

While the process of change that occurs in the process of learning in the work-oriented polytechnics, have

competence and in accordance with the needs of the industry and government.

Figure 2. Triple Hellix Proces

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Table 1. Root Definition (RD) for Implementation Triple Hellix Concept

Through CKC between Polytechnic, Industry and Government

No Name Root Definition Activity RD The Triple Hellix concept in

learning and research process based on industrial and government needs with

collaborative knowledge creation (CKC)

The Triple Hellix concept in learning and research (P) through collaborative knowledge

creation (CKC) polytechnic and industry (Q) to produce qualified graduated and have good research with intellectual capital right (R).

Source: Primary data processed, 2015

Table 2. CATWOE and 3E in the Root Definition

Customer Director of polytechnic, government, industry and company Actors Director, Head of Department, government, industry and

company Transformation Development of learning proces in polytechnic based on

teaching factory or teaching industry to produce curricullum, teaching materials and intellectual capital right

Weltanschauung Collaboratice in teaching and learning is important to improve the quality of graduates and quality of research lecturer

Owner (s) Assistant of Director for Academic, Assistant of Director for Industrial Relations, Head of Department, Head of Study Programme in Polytechnic

Environment Constraints within the limitations of time and budget available, polytechnic organizational culture, changes in the regulation of higher education and the needs of industry and company

E-Efficacy Implementation of competency-based curriculum and joint research in facing the needs of industry, company and government

E-Efficiency The limitation funding arrising for research, implementations resources for teaching factory and teaching industry limited of time

E-Effective Joint research and teaching factory with polytechnic, industry and government into curriculum development applied in each study programme

The results showed that the concept of a triple helix made between Polytechnic, industry and government resulted in cooperation in the field of education and research. State

Polytechnic of Jakarta (PNJ) collaborative teaching is done in a way that involves teaching factory industrial elements can be seen in the following table:

Table 3. Implementation of Triple Hellic Concept in PNJ, Polban and Polman

NO POLYTECHNIC TEACHING AND LEARNING RESEARCH 1 PNJ Curriculum and teaching materials

doing with lecturer from PNJ and person in charge come from industry and corporate.

a.The results of research in polytechnic should be utilized by the public;

b. The collaboration of government, business /

2 POLBAN Teaching and learning forms of cooperation have been carried out by the industry and the company.

3 POLMAN a.Forms of cooperation undertaken

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Bandung State Polytechnic Manufacturing (POLMAN) with companies and industries.

b. Polman first apply the learning method with the concept of problem-based education (PBE) and the students are directly involved in the development and manufacture of not only products but services.

c. Polman Bandung, has implemented a 3-2-1 cooperative approach based education for 3-year study program with the composition: trhee semesters basic education held in the campus POLMAN, two semesters internships in industry and one semester of college education was continued again at POLMAN also undertake partnership with small and medium enterprises as well as large industrial and corporate (http://www.polman-bandung.ac.id).

industry / business and polytechnic are able to create high-quality graduates and innovation of product knowledge.

Forms of government and industry support to education and the business world developed in Polytechnics is an

implementation of the concept of The Triple Helix.

Figure 3: Triple Hellix Concept using CKC

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Table 4. Implementations of Triple Hellix in Polytechnic, Industry and Government

POLYTECHNICWITHGOVERNMENT

POLYTECHNICWITHINDUSTRY

(1) Develop business potential regional / local in the field of education, infrastructure, economic empowerment and business areas;

(2) Supporting the submission process in the creation of patents and intellectual property rights of the results of research conducted by the Polytechnic;

(3) Special facilities such as science parks (techno parks) support by government;

(4) Giving the enterpreneurial programs for the students and have incubator program for the lecturer implementing the applied science.

(1) Provide guidance services through technology transfer through internships in companies;(2) Cooperate in education and research that gave birth to the economic potential product innovation and business with ‘support facilities’ to enable academics to keep in touch with the industrial world;

(3) Specialized expertise to offer experience and advise for services commercialization activities.

From that table Triple Hellix concept make polytechnic can offer powerful and unique inputs when partnering with industry and government. Polytechnic must become autonomous institutions capable of developing and undertaking strategic initiatives to work with industry, and make strategic decisions about which new fields of expertise to build and to take steps toward creating an interdisciplinary work environment. According to Etzkowitz, et.al., (2000) implementation in polytechnic insitution should be capable of creating high caliber support facilities for UIG partnerships and providing better incentives for individual academics to work with industry.

5. CONCLUSIONS AND SUGGESTIONS

5.1 5Conclusions In developing the concept of triple hellix learning (UIG) the conclussions, are following:

a. Lecturer and student had an internship experience in industry as part of the concept of collaboration of knowledge to produce innovative and competence of student;

b. Results of research and collaboration in the form of joint research between Polytechnic -Government and Industry to produce a product and work-oriented intellectual property.

5.2 Suggestions a. Polytechnic must develop

appropriate rewards and incentives for individual academics to engage in the desirable type of work for implementationsof triple hellix;

b. In research-oriented, polytechnic should be focus on internationally peer reviewed publications and make a commercialization to get a business;

c. Polytechnic should have an MOU with government and industry to support the education facilities and other contributions made to the society welfare.

6. BIBLIOGRAPHY Books, Journal and Disertation

[1] Asyhari dan Wasitowati, 2015. Hubungan Triple Hellix, Inovasi, Keunggulan Bersaing dan Kinerja, CBAM, ISSN 2302-9791.Vol.2 No.1 May 2015

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[2] Checkland, Peter. (1999). System Thinking, Systems Practice. John Wiley & Son. New York. USA.

[3] Checkland, Peter dan John Poulter. (2006). Learning for Action. John Wiley & Son. New York. USA.

[4] Du Chatenier, Elise, Jos.A.A.M. Verstegen, Harm J.A. Biemans, Martin Mulder dan Onno Omta, (2009). The Challenge of Collaborative Knowledge Creation in Open Innovation Teams, SAGE, October 2009

[5] Etzkowitz, (2002). The triple helix university – industry – government implications for policy and evaluation, working paper 2002-11, Science Policy Institute, Stockholm, ISSN 1650-3821

[6] ................(2003). Research groups as ‘quasi-firms’: The invention of the entrepreneurial university. Research Policy, 32 (1), 109-121

[7] ..................(2008). The Tripe Helix: University-Industry-Government. Innovation in Action, Routledge, New York

[8] Etzkowitz, Henry & Leydesdorff, L. (2000). The dynamic of innovation: From national systems and ‘mode 2’ to a triple helix of university –industry-government relations. Research Policy, 29 (2), 109-123

[9] Etzkowitz, H., Webster, A., Gebhardt, C., & Terra, B. R. C. (2000). The future of the university and the university of the future: evolution of ivory tower to entrepreneurial paradigm. Research Policy, 29(2), 313-330.

[10] Goolins, Michael A, (2008). Driving Innovation : Intellectual Proverty Strategies for a Dynamic World, Cambridge University Press, UK.

[11] Gourlay, Stephen, (2005). Conceptual Knowledge Creation: A Critique of Nonaka’s Theory, Kingston Business School.

[12] Jakubik, Maria, (2008). Experiencing Collaborative Knowledge Creation Process. The Learning Organization, Vol. 15. No. 1, pp: 5-25

[13] Hills,Gerald, 2008, Marketing and Enterpreneurship, Research Ideals and Opportunities, Journal of Small and Medium Entrepreneurship, page ; 27- 39

[14] Kalthop, Otto, Ikujiro Nonaka dan Pedro Nueono, (1997). The Light and Shadowm. How Breaktrough Innovation is Shaping European Business, Roland Berger Foundation, Capstone, UK. pp. 25

[15] [15] Keeh, Hean Tat, Mei Nguyen and Ping, 2007, The Effects of Entrepreneurial Oreintation and Marketing Information the Performance of SMEs, Journal of Business Venturing, page 592-611.

[16] La Paz, H & D. Seo. (2009). Configuring ofActors and Roles in Establishing ICT.

[17] Mariam, Iis, (2014). Disertation: Collaborative Knowledge Creation At State Polytechnic Of Jakarta to organization competitiveness (Action research based Soft Systems Methodology), University of Indonesia, Depok

[18] Nonaka, Ikujiro. (1994). A Dynamic Theory of Organizational Knowledge Creation. Organization Science, Vol. 5 . No.1. February 1994, pp : 14-37

[19] Nonaka, Ikujiro dan Takeuchi, (1995). The Knowledge – Creating Company: How Japanese Companies Create The Dynamics of Innovation, Oxford University Press, Boston.

[20] [20] Paavola, Saam dan Hakkarainen, (2005). The Knowledge Creation Methapor: An Emergent Epistemological Approach to Learning. Science and Education, Vol. 14, pp: 535-537, @ Springer 2005

[21] Salisbury, (2008). DA Framework for Collaborative Knowledge Creation, Knowledge Management Research and Practice. No. 6

[22] Schultze, Ulrike dan Dorothy E.Leidner: Studying Knowledge Management in Information Systems Research: Discources and Theoritical Assumptions, MIS

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Quarterly, Vol. 26. No. 3 (September 2002), pp. 221 Sohail dan Salina Daud, (2009). Knowledge Sharing Higehr Education Intitutions Perspectives from Malaysia, The Journal of Informational Knowledge Mangement Systems, Vol. 39. No.2, 2009, pp. 126

Document and Media online:

[23] ACDP (Education Sector Analytical and Capacity Development Partnership), 2013. Developing Strategies for University, Industry, and Government Partnership in Indonesia, Balitbang Kemendikbud, Jakarta

[24] Undang – Undang No.12 Tahun 2012 (Act No. 12: 2012 Higher Education)

[25] Adiana, Okky, (2013). INILAH.COM. MOU POLBAN with PT Telka Indonesia, http://www.polban.ac.id, accessible March 2015.

[26] Sejarah Politeknik Manufaktiur Negeri Bandung, (2013) , http://www.polman-bandung,ac,id, accessible March 2015

[27] Bakri,2015. Mewujudkan sinergi Triplle Hellix.

[28] http://www.republika.co.id/berita/koran/pendidikan-koran/15/04/17/nmy36e40 mewujudkan-sinergi-triple-helix, diakses Juli 2015

[29] Iskandar, 2014. Korelasi model inovasi Triple Hellix dengan kinerja dosen perguruan tinggi.http://dadangiskandar.staff.telkomuniversity.ac.id/wp-content/uploads/sites/203/2014/11/Korelasi-Model-Inovasi-Triple-Helix-Dengan-Kinerja-Dosen-Perguruan-Tinggi.pdf, diakses Agustus 2015

[30] http://www.acdp-indonesia.org/wp-content/uploads/2015/02/Policy-Brief-ACDP-UIG-Indonesia-FINAL1.pdf, diakses Agustus 2015

[31] http://www.ristek.go.id/index.php/module/News+News/id/11805, diakses Agustus 2015

[32] http://download.portalgaruda.org/article.php?article=321754&val=307&title=HubunganTriple%20%20elix,%20Inovasi,%20Keunggulan%20Bersaing%20dan%20Kinerja, diakses September 2015

[33] http://www.leydesdorff.net, Leydesdorff, 2000, The Triple Helix of University-Industry-Government Relations, diakses Agustus 2015.

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Demograpic Profile of E-Commerce Customers in Jakarta

Petrus Hari Kuncoro Seno1, Rodiana Listiawati 2 1, 2Accounting and Finance Department, Jakarta State Polytechnic

Professor Siwabesy ST, University of Indonesia Campus [email protected], [email protected]

Abstract

The success of e-commerce depends on how the customer receives the system. Therefore, it is important for the company to find out how customers appreciate the services of e-commerce in order to help find a strategic plan and increase market share . In other words , an important issue for the parties when implementing e commerce is to know what factors affect the decision of customers using the services of e -commerce. Technology revolution have allowed the developments of new and more efficient delivery and processing channels as well as more innovative products and services in retailing industry . Retailing industry are facing competition from each other but also from non-traditional intermediaries such as e commerce. Another strategic challenge facing e commerce institutions today is the growing and changing needs and expectations of consumers in tandem with increased education levels and growing wealth. Consumers are becoming increasingly discerning and have become more involved in their consuming decision. This paper investigates the demographic profile of e commerce customers in Indonesian context. Primary data was collected from 50 respondents through a structured questionnaire. Descriptive statistics was used to explain demographic profile of respondents. The finding depicts the demograpic profile of the e commerce customers in Indonesia. Key Words: Demographic profile, e commerce customers

1. INTRODUCTION Increased competition and efforts to reduce operating costs as efficiently as possible to encourage companies to utilize the internet in doing business. In addition the level of mobility in society is increasing from year to year caused the providers of public services such as retailing companies lot of innovation in their service to customers. One application that is now starting to become a concern is e-commerce.

The emergence of e-commerce activities should be anticipated with proper and good in order not to miss the opportunity to earn a chance in the era of globalization, especially in the field of small and medium-sized companies.Businessmen in Indonesia are the main targets that must be nurtured and encouraged to take advantage of e-commerce, this is due to the strategic position of SMEs, among others in the population reached 2, 1 million units scattered

throughout the archipelago and absorb 20 millions work forces.

The fierce competition among retailers and the trend towards reducing operational retailing cost has force companies to utilize internet in their business. Besides people’s mobility has grown from year to year has forced the service provider for the society such as retailing business to continuously innovate in serving their customers. One of the application which is getting more and more attention is e-commerce.

The rapid advancement in electronic distribution channels has produced tremendous changes in the financial industry in recent years, with an increasing rate of change in technology, competition among players and consumer needs (Hughes, 2001). The proliferation of, and rapid advances in, technology-based systems, especially those related to the internet, are leading to

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fundamental changes in how companies interact with customers (Ibrahim et al, 2006; Bauer et al., 2005; Parasuraman and Zinkhan, 2002). In general companies that use e- commerce will get benefits, namely (1) the opening of a new revenue stream (revenue streams) are more promising that can’t be found in the system of traditional transaction, (2) increase market exposure, (3) lower operating costs (operating costs), (4) to widen the range of (global reach), (5) improve customer loyalty (customer loyalty), (6) improving supplier management (supplier management), (7) shorten the production time, and (8) improving the value chain (value chain).

The purpose of this paper is to gain an understanding of the demographic profile of Indonesian market where the 70 percent population reside in rural areas and 30 percent population reside in urban area of the country. This study explore the demographic profile of the e commerce consumers in Indonesia.

2. THEORY Writer Zakariya Belkhamza and Syed Azizi Wafa in his article entitled "The Effect of Perceived Risk on the Intention to Use E-commerce: The Case of Algeria" published in the Journal of Internet Banking and Commerce edition April 2009, vol.14, no.1 stated that although lately a decline in economic activity on the Internet and ICT sector, concerns about privacy and trust(trust) remains an obstacle to growth and the important issues of both individuals and organizations.

Study of existing studies on the adoption of e-commerce business to consumer (B2C) yet simultaneously consider trust and risk as an important determinant of behavior adoption. The conceptual model of this study

lead us to believe that the risk of e-commerce system is a major determinant of behavior adoption. Based on the technology acceptance model (Technology Accenptance Model = TAM ), this study aimed to examine the effects of the perception (perceived) risk systems on the behavior of tourism organizations willingness to use e-commerce .

The researchers expect to be able to provide both theoretical and empirical validation explanation on the adoption of e-commerce, and offer explanations and recommendations for the business organizations and service providers of e-commerce system regarding the implementation of e-commerce and security issues and risks. The second article written by David Gefen, Elena Karahanna, Detmar W. Straub entitled "Trust and TAM in Online Shopping: An Integrated Model" in the journal MIS Quarterly, Vol. 27, No. 1 published in March 2003 and published by Management Information Systems Research Center, University of Minnesota wrote that an interaction that is separate and distinct from both the e-vendor or actual interface Web site of its IT is the most important thing in shopping on line. In the previous studies has been established, that the intention of purchasing online is the result of consumers' assessment of IT itself-especially the perceived benefits and ease of use (TAM) as well as trust in the e-vendor. So far this perspective has been examined separately by IS researchers. Integrating both perspectives and examines the factors that build trust online in an environment that does not have the typical human interaction that could lead to confidence in other situations, will improve the understanding of the construct (construct) and its relationship to

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behavior. Results of the study the researchers of online shoppers experienced and repeatedly showed that consumer confidence is just as important for online trading with the perceived benefits and perceived ease of use as it has been studied by TAM previous approach. Taken together, the set of these variables was able to explain a certain proportion of the variance in behavior mentioned above.

This study also provides evidence that online trust built through (1) the belief that the vendors have nothing to gain by cheating, (2) a belief that there is a secure mechanism that is built into the Web site, and (3) to have a certain interfaces, (4) easy to use. From the second article that has been discussed above it can be concluded that the role of trust in e-commerce is quite significant in the adoption of e-commerce which includes the factor of how payments online (e-payments) was conducted, which play a pivotal role in the process of e-commerce transactions .

3. METHODOLOGY This study employed the method of personal interview for data collection using a close-ended questionnaire as the research instrument. Respondents of this exploratory study consisted of customers of several e commerce in Jakarta, Depok, Tangerang and Bekasi. A total of 50 respondents were selected and interviewed for a period of two weeks. The questionnaire is divided into three sections. Section A is designed to solicit information regarding e-

commerce activities and category of adopters. Section B consisted of questions on perception of the e-commerce based on the products characteristics attributes. In this section, respondents were asked to indicate the degree to which they agreed with each statements on a 5 point Likert-scale, ranging from 1 (strongly disagree) to 5 (strongly agree). Section C is on demographic factors which seek to obtain responses based on factors such as gender, town, and education level. The data solicited were then analyzed for some statistical discriptive using SPSS.

Some operational definitions which are used in this article are: Self Eficacy :" judgments of how well one can execute courses of action required to deal with prospective siuations" (Bundora 1982). Perceived usefulness - "the degree to which a person believes that using a particular system would enhance his or her job performance"(Davis 1989). Perceived ease-of-use - Davis defined this as "the degree to which a person believes that using a particular system would be free from effort" (Davis 1989).

4. ANALYSIS AND DISCUSSION The Cutomers’ Occupation

Based on the data which have been collected it is revealed that majority of the respondents were university students (44.0%) and then company workers (20.0%), self employed (8.0%) . A complete accouts of the customers’ accopation can be found on table 1.

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Table 1 Cutomers’ Occupation

Frequ-ency Percent Cumulative

Percent Valid Teachers 2 4.0 4.0

Housewives 3 6.0 10.0 Company workers 10 20.0 30.0 Tax consultant 1 2.0 32.0 University Students 22 44.0 76.0 Public servants 2 4.0 80.0 High School Students

4 8.0 88.0

Seamen 1 2.0 90.0 Police 1 2.0 92.0 Self employed 4 8.0 100.0 Total 50 100.0

The Customers’ Gender , The Customers’ Education and The Age of the Customers

In this study there is a more female in the e commerce customers under study. The male customers are 38.0% and the female customers are 62.0%).The education level of the e commerce customers under study were mostly bachelor degree graduate (38.0%) followed by high school graduate (34.0%) and then three years diploma (16.0%) and other education level are less than 12 %. The median age of the e commerce customers in this study is 25.5 years old. The youngest was 12 years old and the oldest was 58 years old

The e commerce Services Chosen by the Customers

The e-commerce service providers which are chosen by the custumers were dominated the three big e-commerce companies in Indonesia

which are OLX (21.52%), Lazada (15,19 %) , Kaskus (12.66%).

Table 2. E-commerce Companies Chosen by Customers

E comerce Incidence Percent

Olx 17 21.52%

Lazada 12 15.19%

Kaskus 10 12.66%

Zalora.com 7 8.86%

Buka lapak 5 6.33%

Tokobagus 5 6.33%

Bibli 4 5.06%

Istagram 4 5.06%

Elevenia 3 3.80%

Berrybenka 2 2.53%

Lain lain 10 12.66%

79 100.00%

The Computer Self Efficacy

Based on the questions which are used to measure the computer self efficacy it is revealed that the median values were 3.84 (“agree”) for learning avability and 3.92 for help availability and 3.84 (“ agree”) for the manual availability.

Table 4 Computer Self Efficacy

Manual

Availibility Learning

AviaibilityHelp

avaibilityN Valid 50 50 50

Mean 3.84 3.84 3.92 Median 4.00 4.00 4.00

Std. Deviation

.766 .792 .877

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The Perceived Value

The median value for the customers perceived value for e commerce was 4 (“Agree”) for Speed of transaction, and easier transaction and usefulnes.

Table 4 Perceived Value

Speed up

transaction Easier

transaction Usefulness N Valid 50 50 50

Mean 3.90 3.98 4.08 Median 4.00 4.00 4.00

Std. Deviation .877 .845 .724

The Perceived Ease of use

The median value for the perceived ease of use for e commerce was 4

(“agree”) for user friendliness,easy to learn, fast learning and easy to use.

Table 5. Perceived Ease of use

User Friendly Easy to learn Fast learning Easy to use N Valid 50 50 50 50

Mean 3.56 3.62 3.66 3.66 Median 4.00 4.00 4.00 4.00

Std. Deviation .951 .942 .964 .982 The Perceived Credibility

The median value for perceived credibility for e commerce was 3.5

(“agree”) for privacy and secure transaction.

Table 6 Perceived Credibility Privacy Secure Transaction

N Valid 50 50 Mean 3.46 3.54

Median 3.50 3.50 Std. Deviation .947 .862

The Behavioral Intention

The median value for the behavioral intention was 4 (“agree”) for

willingness to use and use of e commerce in the future.

Table 7 Behavioral Intention

Willingness

to Use Use in the future N Valid 50 50

Mean 3.76 4.04 Median 4.00 4.00

Std. Deviation

.744 .755

5. CONCLUSION The demographic profile of the e commerce customer which has been written in this article revealed that the majority of the respondents were university students (44.0%) and then

company workers (20.0%), self employed (8.0%) The median age of the e commerce customers in this study is 25.5 years old, The e commerce service providers which

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are chosen by the custumers were dominated the three big e commerce companies in Indonesia which are OLX (21.52%), Lazada (15,19 %), Kaskus (12.66%). The education level of the e commerce customers were mosttly bachelor degree graduate (38.0%) followed by high school graduate (34.0%) and then three years diploma (16.0%) and other education level are less than 12 %.. Based on the questions which are used to measure the computer self efficacy it is revealed that the median values were 3.84 (“agree”) for learning avability and 3.92 for help availability and 3.84 (“ agree”) for the manual availability. The median value for the customers perceived value for e commerce was 4 (“agree”) for speed of transaction, and easier transaction and usefulness. The median value for the perceived ease of use for e commerce was 4 (“agree”) for user friendliness,easy to learn, fast learning and easy to use. The median value for perceived credibility for e commerce was 3.5 (“agree”) for privacy and secure transaction. The median value for the perceived ease of use for e commerce was 4 (“agree”) for user friendliness,easy to learn, fast learning and easy to use. The median value for the behavioral intention was 4 (“agree”) for willingness to use and use of e commerce in the future.

6. BIBLIOGRAPHY [1] Abrazhevich, D. Electronic Payment

Systems: A User-Centered Perspective and Interaction Design. Technische Universiteit Eindhoven, Eindhoven, 2004, 24–26.

[2] Belkhamza , Zakariya , Syed Azizi Wafa, The Effect of Perceived Risk on the Intention to Use E-commerce: The Case of Algeria , Journal of Internet Banking and Commerce, April 2009, vol. 14, no.1 , URL: http://www.arraydev.com/commerce/jibc/

[3] Dai, X., and Grundy, J. NetPay: an off-line, decentralized micro-payment system for thin-client applications. Electronic Commerce Research and Applications, 6, 2007, 91–101.

[4] Davis, F.D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MS Quarterly (online), Vol. 13 Iss. 3, pg. 318. (2005, 20 Juli).

[5] Gefen, David , Elena Karahanna, Detmar W. Straub, Trust and TAM in Online Shopping: An Integrated Model , MIS Quarterly, Vol. 27, No. 1 (Mar., 2003), pp. 51-90 P, Management Information Systems Research Center, University of Minnesota Stable

[6] Guan, S., and Hua, F. A multi-agent architecture for electronic payment. International Journal of Information Technology and Decision Making, 2, 3, 2003, 497–522.

[7] Kim, Changsu , Wang Tao , Namchul Shin , Ki-Soo Kim , ,An empirical study of customers’ perceptions of security and trust in e-payment systems, Electronic Commerce Research and Applications , Vol 9 (2010) pp. 84–95

[8] Kousaridas, A., Parissis, G., and Apostolopoulos, T. An open financial services architecture based on the use of intelligent mobile devices. Electronic Commerce Research and Applications, 7, 2008, 232–246

[9] Linck, K., Pousttchi, K., Wiedemann, D. G. Security issues in mobile payment from

the customer viewpoint. In Proceedings of the 14th European Conference on Information Systems (ECIS 2006), Goteborg, Schweden, 2006, 1–11.

[10] Mukherjee, A., and Nath, P. A model of trust in online relationship banking. International Journal of Bank Marketing, 21, 1, 2003, 5–15.

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[11] Theodosios, T., and George, S. Concept of security and trust in electronic payments. Computers and Security, 2005, 10–15.

[12] Lawrence, E., Newton, S., Corbitt, B., Braithwaite, R., and Parker, C. Technology of Internet Business. John Wiley and Sons Australia Publishing, 2002.

[13] Weir, C. S., Anderson, J. N., and Jack, M. A. On the role of metaphor and language in design of third party payments in eBanking: usability and quality. International Journal of Human-Computer Studies, 64, 8, 2006, 70–784.

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Comparing The Effectiveness of Writing Assessment and Practical Effectiveness for Hearing Impaired Students

Rene Muhammad1, Tshin Lip Vui2

Politeknik Kota Kinabalu [email protected]

Abstract

The purpose of this study is tocompare the effectiveness of hearing impaired students in answering writing testand practical test assessment. This study will focus on the students who enrolled in the program of Hotel and Catering Certificate in Polytechnic Kota Kinabalu. This program was offered to hearing impaired students since 2009 who just finished their SijilPelajaran Malaysia (SPM). A two years program offered to the hearing impaired students to further their study, and also preparing students in comprehensive techniques and skills in Hotel and Catering management. This program also preparing students in food and beverage services, culinary art, housekeeping and entrepreneur skills as their career in future. Most of the time, a lot of syllabus contained in this program focus more on writing test assessment rather than practical test assessment. Students can not performed well in their writing test assessment and sometimes even do not understand their meaning. According to Lip Vui (2009), hearing impaired students talented in practical or hands on work, but they are very weak in theory test. Jamal (2010) stated that hearing impaired students weak in answer writing test and this related to Dyslexic Dysgraphia, a disease resulted in spelling, writing and thinking barrier. A research problem in this study is which writing and practical assessment is more effective for hearing impaired students during their learning lessons. In this study, three hypothesis have been identified which are H1-hearing impaired students effective in answering writing test, H2-hearing impaired students effective in perform their practical work and H3-hearing impaired students effective in both writing and practical test assessments. Three of the hypothesis will be test in the following chapters for their reliability and their level of acceptancy. Questionnaire will be distribute to 30 lecturers from Department of Tourism and Hospitality department, Department of General Study and Department of Science, Mathematics and Computer. The outcomes of this study will contribute to academic institution, public and hearing impaired students themselves.

1. INTRODUCTION 1.1 Overview

It is difficult, if not impossible, to define the proper relationship of theory and practice without a preliminary discussion, respectively of the nature and aim of theory of practice. Theory is taught at the second course and it has a principally practical content. In the first subject, it is necessary to explain concepts and their relationships; while in the second subject, it is very important to know some concepts and solve practical exercises with them. In both cases, the requirements for learning are also different. In this work, the characteristics and used tools in the two types of knowledge pills are explained: one for developing theoretical contents and another for learning methods for solve practical

exercises. Since students have the main responsibility in their learning process, it would be appropriated to know their opinion about the use of these knowledge pills. These answers can be analysed and compared. For this reason, an inquiry is made to the students and the results will be discussed. The inquiry asked about the satisfaction rate using the knowledge pills in the both subjects, the pros and cons observed by the students and the aspects to improve (alvarez, 2014).

In theory the difference between practice and theory is due to practical considerations that theorists find it impractical to fit into their theories. In practice, theory uses the practice of theorising about practical matters, while not noticing that the theoretical

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method practically distorts the theory beyond application to practice (alvarez, 2014). Theoretically then the practical facts are that the theory is in practice good for predicting what happens in theory, but impractical as a theory with direct implications for practice, except where theory states that the practice is sufficiently close to the theory to make any difference for all practical purposes theoretically zero. In practice this does not happen very often(alvarez, 2014).

There is always a tension between Theory and Practice. These two separate realms are connected through a process of abstraction and application. To explain this relationship by way of theory, Theory deterritorializes Practice, and Practice reterritorializes Theory: a Theory which is a becoming-Practice and a Practice which is a becoming-Theory. To explain this relationship by way of practice, Theory is abstracted Practice, and Practice is applied Theory(Brog, 2003).

1.2 Problem Identification

Problem identification in this chapter is to identify the effectiveness of theory and practical in teaching and learning process. According to Brog (2003), If the gap between theory and practice is to be bridged it is essential to have an understanding of what situations of practice are actually like. There has been a growing body of research into the nature of practice over the past decade, done in two fields. One is research into teachers' knowledge, beliefs and cognitions (Borg 2003). The second is research into classroom interaction. This area of research is currently very much connected to conversation analysis methodology (Seedhouse 2004). The talk presented a conceptual framework bringing together these different strands of research into the

nature of language teaching practice. The framework was suggested by Hutchins (1996). Its unit of analysis is a so called moment of practice, i.e. a moment in time. In any such moment three developments come together. First there is the conduct of the activity. This is the performance of a task over a limited stretch of time usually involving a high density of interaction. In teaching terms this may be an exchange or a transaction. This was illustrated with data from a beginners' class starting with English as a second foreign language at the age of 13-14 (Hannell 2005). The data show a teacher who spends a relatively long time on one individual student focussing on accuracy. But although the teacher is engaged in a dyadic exchange, this exchange takes place in front of an audience that is simultaneously addressed. Secondly there is the development of the practitioner. At each moment of practice the practitioner has reached a certain state in his knowledge, abilities, and values. In our example the teacher had had plenty of experience in a 'natural' learning setting. This has, more than anything else, made him aware of the limitations of the classroom, which he considers as a rather impoverished environment for learning. What is feasible for him in such an environment is an introduction to the language system rather than full-scale communicative (Hannell, 2005)

1.3 Problem Statement

The common problem happened among the effectiveness of theory and practical is students’ achievement in their results. These can be measure when some of the subjects involved theory and practical assessment. According to Sean (2011), he stated that is very difficult to measure the effectiveness between theory and

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practical. This is because of the level of understanding for each students are different. We cannot measure all of the students by using the same measurement. Albert Einstein and Yogi Berra (2003) have both been credited with saying, "In theory there is no difference between theory and practice. In practice there is." If the question is serious, I might answer it this way: "Theory is the way you should do it, practice is the way you actually do it." In theory, I should give a useful answer. In practice, you get what you pay for. From the literature review of all of the researcher, we can clearly define that different researcher have their own perception and different findings. So, the problem statement for this research is which of the learning process (theory and practical) more effectiveness for hearing impaired students.

1.4 Research Hypothesis

H1: hearing impaired students more effective in answering writing test,

H2: hearing impaired students more effective in perform their practical assessment

H3: hearing impaired students effective in both writing and practical assessments

H4: the significance between teaching experience and effectiveness of theory and practical assessment towards hearing impaired students.

1.5 Research Objectives

The main research objectives are as follow:

1. To determine the effectiveness of theory learning process for hearing impaired students.

2. To determine the effectiveness of practical leaning process for hearing impaired students.

3. To determine the effectiveness of both theory and practical learning process for hearing impaired students.

1.6 Research Questions

The main research questions are as follow:

1. How effective of theory learning process for hearing impaired students

2. How effective of practical learning process for hearing impaired students

3. which of the theory and practical are more effective for hearing impaired students

1.7 Scope of Study

This study is a quantitative type of research which specifies a correlation study. It is mainly to identify the relationship between independent variables (theory and practical) and dependent variable (Effectiveness).

The study will focus on comparing the effectiveness of theory and practical learning process towards hearing impaired students. All of the respondents are from school of hearing impaired and colleges. 50 respondents have been chosen from the Sekolah Datuk peter Monjuntin, Sekolah Rendah Khas Tuaran dan Politeknik Kota Kinabalu. In addition, this study will focus on hearing imparted program in school and college.

1.8 Significance of study

This study would provide a basis for the effectiveness of teaching theory and practical for hearing impaired students. The significance of this study is to find out the effectiveness way in teaching hearing impaired students. The outcomes will increase studentss’ academic performance and

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marketable to the human resource market.

The input on teaching theory and practical are also significant to the lecturer and teachers. In terms of identifying the major reasons for differences. From the findings, the management could plan a different approach for each department according to their needs.

This study would provide ways to enhance the effectiveness to teaching theory and practical for hearing impaired students. In a long run, teaching staffs would be familiar to the changing of work behaviour and be prepared on what is to be expected from them.

Lastly, this study would be able to provide input for the literature review that can be explored and studied by future references studies, it also an exposure to increase skills in potential area that can improvise self-development on career. The study will benefits researchers to polish heir research skills as preparation for research and development in future.

1.9 Conclusion

As a conclusion on report organization for this chapter, this chapter gave an overview introduction for this research as the background of the study. This chapter identified the problem arisen in learning theory and practical for hearing impaired students and developed a problem statement for this research. Also mentioned in this chapter are the objectives and significance of study which could be beneficial to School and college, teaching staffs, students and researcher themselves.

2. LITERATURE REVIEW 2.1 Introduction

The literature review in this research will discuss on comparing the

effectiveness of teaching as a dependent variable while variables such as theory and practical are independent variables. Each variable would be conceptualised for its definition, based on the related literature reviews.

2.2 Conceptual Definition ofEffectiveness of Teaching

The terms “effectiveness of teaching’ had its heyday in 80s and early 90s during that period when so much work on student ratings was being done. Its connection to evaluation activities remains and even ends-of-course rating are often thought of as measures of teaching effectiveness. Given its continuing importance, it is a term we should regularly revisit (Weimer, 2013)

According to Weimer (2013), the definitions for teaching effectiveness abound, which makes it difficult to identify anyone as definitive. We’ve defined it by asking those concerned (teacher, students and administrator) what the term means to them and here are some examples of how we’ve asked and what’s been answered. When asked to list in order of importance the here most importance abilities students, students and administrators agreed on the same three which are cultive thinking skills, stimulate interest in the subject and motivate students to learn.

Robert (2010) stated teaching effectiveness is can be understood by studying the models of instruction that capture and define what it is that effective teachers know and do…a set of behaviours that effective teachers incorporate into their daily professional practice. These involve a deep understanding of subject matter, learning theory and student differences, planning, classroom instructional strategies, knowing

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individual students, and assessment of student understanding and proficiency with learning outcomes. They also include a teacher’s ability to reflect, collaborate with colleagues and continue ongoing professional development. More than twenty years

ago A Study of Fifty Effective Teachers in Each of Four School Types in Project Star was presented at the American Educational Research Association conference in San Francisco. The findings are applicable today.

A variety of instructional planning activities, teaching strategies,and materials were

found to be common in the repertoires ofeffective teachers:

They had high expectations for student learning.

They provided clear and focused instruction.

They closely monitored student learning progress.

They retaught using alternative strategies when childrendidn’t learn.

They used incentives and rewards to promote learning.

They were highly efficient in their classroom routines.

They set and enforced high standards for classroom behaviour.

They maintained excellent personal interactions with their

students

Charlotte Danielson’s book, Enhancing Professional Practice: A Framework for Teaching, outlines measures relating to effective teaching organized into four domains, each with several observable teacher behaviours: Planning and Preparation, The Classroom Environment, Instruction, and Professional Responsibilities.

Robert Marzano’s model of teaching effectiveness, The Art and Science of Teaching: A Comprehensive Framework for Effective Instruction, articulates his framework in the form of 10 questions that represent a logical planning sequence for successful instructional design including: establishing learning goals, students interaction with new knowledge, student practice to deepen

understanding, engaging students, effective classroom management, effective student teacher relationships, communicating high expectation for students, and effective, standards-based, formative and summative assessment practices which use multiple measures of students’ proficiency.

In addition, the National Board for Professional Teaching Standards (NBPTS) also offers direction for what an effective teacher should know and be able to do and has merit in guiding school districts to formulate their own model of teacher effectiveness.

According to Armour(2010), the challenge that Oregon and US schools have is not that we don’t know what teaching effectiveness is or that we do

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not have models and research to guide us. The challenge is how to ensure that these practices are in every classroom and in every teacher’s repertoire of professional practice. The answer is creating school and school district systems which align the practices of Teacher Hiring, Mentoring, Expanding Career Opportunities for Teachers, Professional Development and Performance Evaluation into a Continuum of Professional Practice that uses the principles and behaviours of Teaching Effectiveness as its foundation (Armour, 2010).

2.3 Conceptual Definition of Teaching Theory

The basic principle behind the theory of learning styles is that different people learn in different ways. There is much literature on learning styles and as with much educational theory, there are some differences of opinion particularly in classification of the different styles. It does not help us in the teaching that much of the literature is from the business world where several inventory questionnaires have been developed to help people discover their learning styles or preferences, and part with significant amount of money in the process (Diez, 1996).

A common approach to viewing learning styles is linked to a learning cycle of experience, observation and reflection, formation and then testing of concepts. Although commonly referred to as the “Kolb Learning Cycle” this cycle was proposed by Kurt Lewin who got the idea from control engineering. David Kolb (1984) popularised Lewin’s proposal (hence the common title). The four stages of the Experiential Learning Cycle are:

1. Concrete experience

2. Observation and Reflection

3. Abstract Conceptualisation

4. Testing concepts in new situations

The cycle is a continuous process with the current ‘concrete experience’ being the basis for observations and reflections, which allow the development of a ‘theory’Honey and Mumford (1986). The ‘theory’ is then tested in new situations to lead to more concrete experience. Kolb developed from the Lewin model the idea that students have a dominant phase of the cycle during which they prefer to learn and therefore will have preferred modes of learning. In order to identify the preferred study and learning styles, Kolb developed a Learning Style Inventory that identified student’s preference for the four modes corresponding to the stages in the learning cycleHoney and Mumford (1986).

Subsequently Honey and Mumford (1986) developed a Learning Style Questionnaire building upon Kolb’s work. They felt that the learning style inventory was not accessible to managers with whom they worked. They identified four styles of learning, which had much in common with Kolb’s work and had strong correlations with the learning cycle. Work in the United States has looked at learning styles and engineering and the impact of students’ approaches to the effectiveness of learning. Richard Felder and colleagues developed The Index of Learning Styles, a self-scoring instrument that assesses preferences for learning in four dimensions.

2.4 Conceptual Definition of Teachers’ education

At first read, one might ask whether a relationship can truly exist between a

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critical pedagogy and teaching standards. On one hand, we have a philosophical goal of a critical approach to education, social transformation, where the focus is to empower those whose voices are silenced or marginalized. On the other hand, we have a set of standards designed to guide the expectations and assessment of teachers. Though these two entities may appear to exist separately, we contend that not only is there an intersection between the two concepts, but this intersection is an imperative space for inquiry when looking at the purpose of schooling and the preparation of teachers for a democratic society. This paper is a theoretical position piece exploring the findings of two studies (B-Author, 2000; S-Author, 2000), which examine respectively critical pedagogy in teacher education through a required course in children’s literature and one example of teaching standards, the Core Principles of the Interstate New

Teacher Assessment and Support Consortium (INTASC), in the practice of a second-year teacher. We address the following question: Agreeing that a major goal of teacher education is to prepare individuals for informed citizenship in a democratic society, do the INTASC Core Principles lead toward social change promoting active citizenship of both teacher and student? One author approaches this question primarily as a critical theorist; the other author approaches question as a scholar who has worked extensively with standard

2.5 Conceptual Definition of teaching practical

Most academics appreciate the first three levels (not necessarily with any. Knowledge of Biggs or his theoryPearson (1994). However it is the contention that as teachers we

should strive to be engaging students, which is the level where the focus is on how the student manages his/her own learning. It can be argued that Level 4 is the ultimate of higher education, producing graduates who are autonomous individuals capable of advancing their own learning. A student cannot operate effectively at level 4 without having experienced level 3 teaching or constructive alignment (Pearson, 1994). Level 4 is a step above that which many of us practice and it is important for us to appreciate its significance. What we need to do is turn this around so that when we think about teaching, rather than concentrate on what we do, is to think about how we engage the student. It is possible for a student to be engaged in extremely effective learning activities, with aligned assessment, without being consciously aware of the learning process. For a student to take responsibility for managing learning and for choosing how to learn requires a step beyond the teaching to which we usually subscribe (Pearson, 1994).

This can probably be seen most clearly in primary education, but it will still happen in higher education if the teacher designs the learning activities without explaining why the learning activities are designed as they areClifford, 2004). Students can work very hard, actively and effectively, doing what they are told to do. This is not quite “spoon feeding” (Clifford, 2004).

The students are doing the work, but they aren’t taking responsibility fordeciding what to do. They can learn a great deal, but not be able to learn independently when they leave university and do not have a teacher to tell them what to do (Goodrich, 1999). Managing one’s own learning

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is therefore an important ability not necessarily covered by level 3. Students operating at Level 4 are taking responsibility for their own learning and making good choices. However, they cannot be expected to make good choices unless they have experienced good and effective learning strategies and been encouraged to see their value through properly aligned assessment (Goodrich, 1999).

In order to move students so they are operating at level 4 needs us to make changes to the engineering curriculum and the students approach to learning (Wiliam, 2004). What we are trying to do is the ultimate aim of teaching in higher education in that we want the student to take control (Wiliam,

2004). We need to enable the student to manage what they do as part of their learning processes and this is best achieved by creating a learning framework within which the students can learn. The ideal type of framework is that provided by constructive alignment. Paul Ramsden (1992) focused on improving teaching in higher education, and identified characteristics for improving the students’ experience of higher education. The Course Experience Questionnaire developed a series of items to question particular factor associated with students’ experience. Table 2 lists attributes of good teaching and good teachers.

Table 2 Attributes of good teachers (adapted from Ramsden 1992, p96)

Ramsden’s Principles of Effective teaching

Interest and Explanation;

Concern and respect for students and their

learning;

Appropriate assessment and feedback;

Clear goals and intellectual challenge;

Independence, Control and Active engagement;

Learning from students.

While this list is by no means exhaustive it is a useful focus for ourselves to reflect on our teaching practices. Although we will all recognise the characteristics of good teaching and look to attain them, often there are areas where we could look to enhance our performance in some areas. We can see also that these principles feed through to those we require for Constructive Alignment. Ramsden (1992, p175) also reports on the work of Peter Cawley (1989) who introduced problem based learning into a third year engineering

programme. The course aimed to develop students’ skills in vibration analysis, and improve the students’ abilities in applying diagnostic and problemsolving skills into the course.

2.6 Difference between Theory and practice

What is the difference between theory and practice? One often says: “I do not believe in theory, I believe in practice. “Theory is the doctrine, not the application. It is rather abstract. Practice is the application, the use or ‘doing’ of the doctrine in reality. Practice is more empirical. One often

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says: “I do not believe in theory, I believe in practice. “Sometimes reality is in line with the doctrine and sometimes it isn’t. One sometimes also says: “Theory and practice are two different worlds.” Why does one say this? If you want to concretize the theory, you notice that is doesn’t always correspond to reality, perhaps because of its abstract nature. So basically, the more concrete, the ‘more real’. If a theory doesn’t correspond to reality, then it’s either because it is not right enough, or because it’s too abstract. (sean, 2011).

If the gap between theory and practice is to be bridged it is essential to have an understanding of what situations of practice are actually like. There has been a growing body of research into the nature of practice over the past decade, done in two fields. One is research into teachers' knowledge, beliefs and cognitions (Borg 2003). The second is research into classroom interaction. This area of research is currently very much connected to conversation analysis methodology (Seedhouse 2004).

According to Jackson(2002), the only way you can get these two camps to talk to each other is to figure out what the theory says that provides value to those who practice. Practice-ers are ruthlessly focused on value, so to get through to them, you have to speak their language. On the flip side, theorists understand that practicers don’t care too much about the theory, but love seeing their thoughts to go good use, and can appreciate when practicers stumble across flaws in their thought. So demonstrating how practicers produce contradictions in the theory can be really useful to theorists (Jackson, 2002).

Albert Einstein and Yogi Berra have both been credited with saying, "In theory there is no difference between

theory and practice. In practice there is." If the question is serious, I might answer it this way: "Theory is the way you should do it, practice is the way you actually do it." In theory, I should give a useful answer. In practice, you get what you pay for.

2.7 Conceptual Definition of Disabilities

Like anyone else in the world, we need a complete and useful physical body in our life, so that we can do a lot of activities. But unfortunately, many people in the world are trouble by their disabilities; the disabilities may or may not affect their daily life, but for the people with disabilities, we never feel their pain till we adapt to their life. Many studies have found that disable persons participation in daily life is limited not only by their individual impairments, but equally by external barriers; namely environmental, social and attitudinal Barnes and Mercer (1997); Craddock and McCormack (2002).

Disabled been defined as the people which have a physical and mentally problem and the disability will effects their daily activities. According to Barnes.et.al. (1997), disability is often defined as any restriction or lack of ability, resulting from an impairment, to perform an activity in the manner or within the range considered normal for a human being. Impairment is known as any loss or abnormality of psychological or anatomical structure or function.

Explore into a tradition that would govern public policy for most of the twentieth century, the disability classification runs counter to the goals of activists who ignored any dichotomy between “able-bodied” and “disabled” for employment purposes. Different countries have indicated the difference classification

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of disability such as in United States, Malaysia, Germany and Sweden. The United States define the disability as a complete inability to engage in productive work grants the disabled a status that deems them deserving of public support while effectively stigmatizing them socially by excluding them from the job market by Longmore (2001). Germany has classified according to the scale that incrementally measures the “degree of disability.” Meanwhile, in Sweden, disability is defined according to the extent which it has represented as an impediment to work Sim (1999).

Gate wood and field (2001) defined an individual with disability is someone who has a physical or mental impairment that substantially limits one or more major life activities has a record of such an impairment’s disabled can be distinguishing in four groups of disabilities. They are defined on the basis of their medical diagnosis, and include the blind and visually disabled, the deaf and hard of hearing, the intellectually disabled, and the mobility disabled. Zulfikri Osman (2006) has defined disabilities as any restriction or lack of ability, resulting from an impairment to perform better in an activity in the manner or within the range considered normal for human being.

There are a few considerable discussions of models of disability in past three decades. Many of these have come from disabled people themselves, who have developed notions of a social model of disability as opposed to a medical model of disability Duff and Ferguson (2007). Bickenbach (1993) has developed a three- fold- model of disablement, namely the biomedical, economic and social political analysis. Bickenbach has provided a survey of the

philosophical basis for social policy in term of disability. The biomedical categories disabled people as a sick or injured person who needing medical assistance.

Disability is a “personal tragedy” for an isolated individualwho has “something wrong with them” Oliver (1996). The individual is then subject to the necessary treatment and as a consequence torehabilitate. Impairment becomes the defining feature of the individual. As a result, exclusion of disabled people in labor force means an inability of them to participate in regard to their impairment. By contrast, the social model of disability focuses on the barriers (physical, attitudinal) which exist within a society that acts to disabled people with impairment Duff.et.al. (2007).

2.8 Conclusion

This chapter reviewed literatures on the effectiveness of teaching and learning process. Based on the findings from literatures review, definition conception on effectiveness of teaching, theory assessment, and practical assessment and hearing impaired students variables are developed. Conceptualization on each variable is developed after synthesizing the conceptual definitions. In the last part of the chapter, relationship between independents variables and dependent variable are constructed. Conceptualizing the definition of variables is important to construct the research framework which would be discussed in chapter 3. Hence, from the previous literatures, it is supported that theory and practical assessment as a multidimensional variables.

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3. RESEARCH FRAMEWORK AND METHODOLOGY

3.1 Introduction

This chapter outlines the theoretical framework, research hypotheses, research design, sampling, instrument, data collection data and data analysis methods. This research is aimed to seek for the effectiveness of writing assessment and practical effectiveness for hearing impaired students.

3.2 Research Design

To operate the model, this study adapts the research methodology which is covering the sampling, data collection method, questionnaire development, measurement, and statistical analysis.

3.3 Research Framework

The independent variables of the framework consist of theory and practical assessment, while effectiveness of teaching and learning is the dependent variable. In this research, moderator also play important role in determine the relationship between independent variables (theory and practical) and dependent variable (effectiveness of teaching and learning). Teaching experience will be the moderator in the study.

Figure 3.1 demonstrate the research framework relating to the direct relationship between the independent variables and the dependent variable.

Figure 3.1 Research Framework

3.4 Research Hypotheses

Based from the research framework developed, there (3) hypotheses are developed for the purpose of this study. According to Alvarez (2014), he stated that theory could make any difference to influence any practical work. Based on the statement, first hypothesis

H1: hearing impaired students more effective in answering writing test

Biggs (2009) stated that student cannot operate effectively without any practical in doing any learning activities.

H2: hearing impaired students more effective in answering practical work

It is important to researcher to find out the relationship between theory and practical assessment for hearing impaired students (Borg, 2003).

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H3: hearing impaired students more effective in answering both writing testand practical assessment

SQA (2011) stated that hearing impaired students can perform well in theory and hands on test if teaching method is appropriate.

H4: the significance between teaching experience and effectiveness of theory and practical assessment towards hearing impaired students

Robert (2010) argue that teaching experience cannot determine the effectiveness of hearing impaired students in their learning process, but it is very important in influence their teaching attitude and teaching skills.

3.5 Sampling Design

The probability sampling is chosen as the sampling design in this study, because the elements in the population of study are known (Sekaran & Bougie, 2010). The sampling frame consists of respondents from Sekolah Rendah Pendidikan Khas Tuaran, Sekolah

Menengah Datuk Peter Mojuntin, Penampang and Politeknik Kota Kinabalu (PKK) who involved with teaching and learning with hearing impaired students.

The sampling process starts with the selecting sample randomly. The known population is 60 staffs and the required size is 50.

Location of Study and Population

The study will take place at three different location which are Sekolah Rendah Pendidikan Khas Tuaran, Sekolah Menengah Datuk Peter Mojuntin, Penampang and Politeknik Kota Kinabalu (PKK). The population of teaching staffs at PKK obtained from three different department, Tourism and Hospitality Department (JPH), General Studies Department (JPA) and Mathematics, Science and Computer Department (JMSK). Table 3.1 shows the exact number of teaching staff from each department obtained from PKK administration office.

Table 3.1: Teaching Staff Statistic

Bil Departments Total Staff

1.

Politeknik Kota Kinabalu

a) Tourism and Hospitality Department (JPH) - 17

b) General Studies Department (JPA) - 12

c) Mathematics, Science and Computer

Department (JMSK) - 3

32

2. Sekolah Rendah Pendidikan Khas Tuaran 14

3. Sekolah Menengah Datuk Peter Mojuntin 13

Teaching Staff Statistic 59

Sampling Size

Based on Sekaran and Bougie (2010), a rule of thumb which was proposed by Roscoe (1975) is used to determine an appropriate sample size for a study. One of the rules is that sample size should be between 30 and 500.

However, for this study, the decision on sampling size refer on Sekaran (2010) table simplified by Krejcie and Morgan (1970). The table is used to determine an appropriate sample size, given a known population, to ensure a

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good decision model for sampling size.

Table 3.2 gives a guide for determining a sample size from a given known population. From the table, a population of N=59, (between N=55 and N=60) the suggested

sample size is S=50 (between s=48 and s=52) respondents. The sampling design will use probability sampling, whereby all teaching staff have the chance to become a respondent.

Table 3.2: Table of determining sample size from a given population

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3.6 Instrument Design

A set of related questionnaire adopted from Borg (2003)&SQA (2011). Part A and B was adopted from Borg (2003) and part C and D adopted from SQA (2011).

Organization of Questionnaire

The structured questionnaire consists of three sections : Section A (Respondent Profile), Section B (Theory and Practical Assessment) and Section C (Comment and Recommendation).

Sections on Independent Variables

Independent variables for this study on the effectiveness of teaching and learning are theory and practical.

a. Section A (Respondent’s Profile)

In this research study, respondent’s profile all together would be six items, A1 – A6. Questions includes respondent’s personal life such as institution, gender, age, course, year in teaching experience and level of education.

For the purpose of this research, age and education level are measurable items for demographic profile since this study involves critical criteria which include knowledge skills and teaching ability through service experience. Item on age and year in teaching experience requires the respondents to thick appropriate response.

b. Section B (Theory and Practical)

In section B, there are 14 items together. B1 – B4 are items measured for theory, B5 – B8 are items measured for practical and B9 – B12 are items measured for theory and

practical. All items are using Likert Scale to rate responses, ranging from 1 as ‘Totally Disagree’ to 5 as ‘Totally Agree’ except for questions B4 and B8. Question B4 and B8 require respondents to select average marks for students in theory and practical assessment.

c. Section C (Comment and Recommendation)

Section C in research require respondents to give comment and recommendation based on their experience teaching hearing impaired students.

3.7 Data Collection Method

Data collection method are primary data by which questionnaires were distributed and collected through

3.8 Data Analysis Method

Data collected will be analysed by using Statistical Package of the Social Sciences (SPSS) version 23 to measure relationship or correlation between independent variables and dependent variable. A frequency test performed for each question in the questionnaire to ensure validity and reliability of the data entry.

The descriptive statistical analysis measured the means, standard deviations and variance for the independent and dependent variables. Cronbach alpha would determine the measured reliability. Hypothesis testing would be based on multiple regression and Pearson correlation.

Other analysis involved are Factor analysis and ANOVA analysis among other which are summarized on Table 3.3 below.

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Table 3.3: Type of Analysis Method

No. Section Type of Analysis

1 Respondent Profile Descriptive and Frequency Analysis

2 Hypotheses 1 Multiple Regression




3.9 Summary

Data collection for this study was obtained from Sekolah Rendah Pendidikan Khas Tuaran, Sekolah Menengah Datuk Peter Mojuntin, Penampang and Politeknik Kota Kinabalu (PKK). Questionnaires were distributed to a representative of PKK, through Head of Department, which will directly handed over to desired target respondents. Elaboration on each there section and the items for variable are explained in detail throughout this chapter.

Chapter 3 discusses mainly on the study framework, the construction of hypotheses, the unit analysis, sampling design and instrument design. This chapter also discussed the variables and items measurement and scale, finally using the SPSS software as a tool to analyse the collected data for descriptive statistics, reliability testing, correlation and multiple analyses.

4. RESEARCH FINDING 4.1 Introduction

The results of the statistical data analysis are discussed in this chapter. This chapter included respondent’s demography profile, Factor Analysis, Reliability Analysis, Correction Analysis, descriptive statistics, Multiple Regression Analysis and two-way ANOVA analysis on the data collected for the respondents. Finally, a summary of research finding is presented.

4.2 Respondent Profile

60 questionnaires were distributed and only 58 were returned. However, 2 questionnaires were invalid because of many missing information, and only the remaining 50 questionnaires were valid for data processing. 22 percent of total respondents from Sekolah Rendah Pendidikan Khas (primary school), 16 percent from Sekolah Peter Mojuntin (secondary school) and 62 percent from Politeknik Kota Kinabalu. 32 percent of total respondents are male while 68 percent are female. The respondent’s age are mostly from range 30-39 years old.

From the analysis, it is reported that the 54 percent of the total respondents’ course are technical and 46 percent are non-technical. Almost half which is 44 percent of total respondents have range of 6 - 10 years teaching experience, 26 percent have range of 1 - 5 years teaching experience and balance 30 percent have range more than 10 years of teaching experience. More than half which is 54 percent of total respondents own degree holder, 26 percent is Diploma holder and 20 percent have Master.

Table 4.1 summarized the respondent profile statistics obtained from the data collection, representing the information from distributed questionnaires.

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Table 4.1 : Frequency count & Percentage of Respondents Demographics

Demographics N=50 Percentage (%) Respondent SK (primary) SMK (secondary) PKK (Politeknik)

11 8 31

22 16 62

Gender Male Female

16 34

32 68

Age (years) 20 – 29 30 – 39 40 – 49 50 and above

8 35 6 1

16 70 12 2

Course Technical Non – technica

27 23

54 46

Teaching experience (years) Less than 1 year 1 – 5 6 -10 More than 1 year

0 13 22 15

0

26 44 30

Level of education Certificate Diploma Degree Master PhD

13 27 10 0

26 54 20 0

4.3 Descriptive Analysis

Table 4.1 shows the data analysis of standard deviation, standard mean, minimum and maximum of all the composite variable using the original value. A 5-likert scale was used to measure al of the variables. The scale ranged from 1-5, which is strongly disagree (1), disagree (2), accepted (3), agree (4) and strongly agree (5).

Theory variable

By refers to the table above, from the total sample of 50, the standard deviation ranged from 0.647 to 0.797, indicating that respondents answer in a wide variance for data input which is better if the value is near or above 1. Variable student can accept, student interested, student feedback and

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average marks has a minimum scale of 1 to 5.

Most respondent have opinions from strongly disagree to strongly agree,

but the mean of 3.14 to 3.80 are more towards accepted to agree. Average all of the variable has a minimum scale of 2 to 5.

Practical Variable

By refers to the practical variable data analysis, the standard deviation ranged from 0.600 to 0.777. Indicating that respondents answer in a wide variance for data input which is better if the value is near or above 1. Variable student can accept, student interested, student feedback and average marks has a minimum scale of 1 to 5.

Most respondent have opinions from strongly disagree to strongly agree, but the mean of 4.26 to 4.48 are more towards agree to strongly agree. Average all of the variable has a minimum scale of 3 to 5.

Theory and Practical

By refers to the practical variable data analysis, the standard deviation ranged from 0.545 to 0.733. Indicating that respondents answer in a wide variance for data input which is better if the value is near or above 1. Variable student can accept, student interested, student feedback and

average marks has a minimum scale of 1 to 5.

Most respondent have opinions from strongly disagree to strongly agree, but the mean of 2.54 to 3.78 are more towards agree to strongly agree. Average all of the variable has a minimum scale of 1 to 5.

Table 4.4 Descriptive Statistics

Student show interest more

on theory than practical

Student understand

more in theory than practical

Student memories' are

better in theory compare to

practical assessment

Student show interest during teaching and learning on

both theory & practical

N Valid 50 50 50 50Missing 0 0 0 0

Mean 2.78 2.54 2.56 3.78Std. Deviation .708 .646 .733 .545

Minimum 1 1 1 3Maximum 5 4 5 5

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4.4 Multiple Regression Analysis

The dependent of one variable(s) can be examined by Multiple Regression test. All independent variables are entered in the regression equation at one to examine the relationship between the whole set of predictors and the dependent variables.

There are four main hypothesis (H1, H2, H3 and H4) to be tested particularly concerning the significant relationship between the independent variables with effective of teaching and learning.

a. The influence of theory and practical on teaching and learning.

Table 4.7.1.1 shows the results of multiple regression tests on independent variables, theory and

practical to dependent teaching and learning, to determine the significance value of relationships.

The table also include the Beta value (β), R square (R²), adjusted R Square (Adj R²), the F value and the significant F change value. Overall, the R square (R²) indicate 29.1% variance in effective teaching and learning is explained by the independent variables of theory, practical and both theory and practical as indicated by the F value(F=11.835) Four hypotheses involved in these tests are hypotheses H1, H2, H3 and H4. It is found that variables of theory, practical and both theory and practical are significant with p value less than .05 (.108, .019, 0.72 and .028)

Table 4.5: Multiple Regression on Effectiveness of Teaching and learning

Dependent Variable Independent Variable Beta (β) Effective on teaching and learning

Theory .167 Practical .072 Theory and practical 0.348** Teaching experience .188* R² : .291 Adjust R² .267 F Value : 11.835 Sig F Change : .000

** significant at the 0.01 level

* significant at the 0.05 level

b. Multiple Regression findings

Multiple regression analysis used to test the first four hypothesis (H1 to H2), thus determining the significant relationship between variables.

Hypothesis 1 (H1)

H1: hearing impaired students more effective in answering writing test (theory)

Based from the multiple regression table above, the relationship is found to be insignificant when the P=0.108, β=.348** at significant level. The beta value, β=.068 indicate that when effectiveness on teaching theory and practical assessment one standard unit of theory will increased by .348 standard units.

It is clear that there is a negative relationship between theory

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assessment and effectiveness of teaching and learning process. Students show a unperformed result when answering the theory assessment. This hypothesis is unsupported and rejected the hypothesis H1 that there is no significant relationship between effectiveness of teaching and learning in theory assessment for hearing impaired students.

Hypothesis 2 (H2)

H2: hearing impaired students more effective in answering practical work (practical)

The relationship is found to be significant because p=0.019, β=.032. The positive beta also indicates that there is a positive relationship between effectiveness of teaching and learning and practical assessment. Hence, the hypothesis H2 is accepted that there is a significant relationship between effectiveness of teaching and learning process and practical assessment. The beta value β=.167 indicates that when doing the practical test or assessment, the students will more perform in their results compare with theory.

Hypothesis 3 (H3)

H3: hearing impaired students more effective in answering both writing test and practical assessment

The relationship is found to be insignificant because β=.072. Hence, hypothesis H3 rejected when there is no significant relationship between effectiveness on teaching and learning process and both theory and practical assessment for hearing impaired students. The β=0.72 shows that theory and practical do not have a significant relationship in influence the effectiveness on teaching and learning process. Student show unbalance assessment results between theory and practical.

Hypothesis 4 (H4)

H4: the significance between teaching experience and effectiveness of theory and practical assessment towards hearing impaired students

Based from the table above, the relationship is found to be significant when the p=.028, β=.023. Hence the hypothesis is accepted, that there is a significant relationship between teaching experience and the effectiveness on teaching and learning process towards hearing impaired students.

NO Hypothesis Results

(p-value) Findings

H1 hearing impaired students more effective in answering writing test (theory) .108 Rejected

H2 hearing impaired students more effective in answering practical work (practical)

.019 Accepted

H3 hearing impaired students more effective in answering both writing test and practical assessment

.072 Rejected

H4 the significance between teaching experience and effectiveness of theory and practical assessment towards hearing impaired students

.028 Accepted

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The beta value β=.023 indicate that when teaching staffs increased one standard unit of experience, the effectiveness on teaching and learning will increased .023 standard unit. This means the longer time of teaching years, the teaching in theory and practical will be more effectiveness compare with new teachers.

4.5 Summary

This chapter explained the findings result through various analyses namely the factor analysis, realibility test, descriptive analysis, correlation analysis and multiple analysis. In understanding the relationship between determinants factors such as theory, practical and teaching experience towards the effectiveness of teaching and learning process of hearing impaired students. This chapter also explained on the revised research framework, objectives and hypothesis. Due to a new findings from factor analysis and multiple regression.

The hypotheses H2 and H4 accepted and H1 and H3 rejected. H2 is related to practical assessment more effective in teaching hearing impaired students and H4 is related to the teaching experience in teaching hearing impaired students.

5. DISCUSSION AND CONCLUSION

5.1 Introduction

This final chapter discusses the results and findings based on analysis conducted throughout the entire study. This is followed by implications and limitations of the study. Suggestions are also presented in order to guide future researchers who intend to do the same study on job performance determinants. The chapter ends with conclusion about the present study.

5.2 Reiteration of the findings

Data analysis involves the reliability test, descriptive test, correlation and multiple regression. The whole process of analyzing data involves a revised research objectives, framework and hypotheses which are explained in chapter 4. Respondents profile involves the re-coding for ration-typed item such as age, level of education and teaching experience, before it can be computed to get frequency and percentage.

5.3 Implication of the study

The finding of this study raise several important implications for the management of JPP (Jabatan Pengajian Politeknik), lecturers and students to put into consideration of the main effective way in teaching and learning for hearing impaired student and also the development of curriculum. The results hinted that practical teaching and learning can be considered as the most effective way in teaching hearing impaired student compare with teaching theory.

This finding also will be a guidelines to the development of curriculum at Jabatan Pengajian Politeknik. Currently the syllabus of Certificate of Special Needs Skill (Hotel and Catering), Department of Tourism and Hospitality, Politeknik Kota Kinabalu are more focus on both theory and practical. More practical assessments should be included into the syllabus as it will help students to perform well.

5.4 Contribution.

This research study comprised of three independent variables, with a dependent variable an one modular. This study also can contribute in setting research and educational platform in assisting lecturers in teaching hearing impaired student in different ways and focusing more on

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practical work. In the real world situation, competition in job searching will give impact for hearing impaired graduates as they will compete with normal graduates to build up their career. With more practical skills learn, it will help to give them extra advantages especially in hospitality and tourism industry.

5.5 Limitation

There are number of limitations in this study. One of the limitation is lack of respondents in reaed field. In this study, the total population only 60 that comes from three different organizations which are Sekolah Rendah Pendidikan Khas (primary school), Sekolah Peter Mojuntin (secondary school) and Politeknik Kota Kinabalu. This will limit the total sample as we manage to collect only 50 questionnaires. Other than that, there also lacked of previous research on this field especially related with teaching and learning towards hearing impaired students. Due to the lack of previous research, it will limit the literature review as it will help to strengthen the research findings.

5.6 Suggestion for future research

It would be more useful if the data were collected from all schools and higher education institutes that related with hearing impaired students, which it would reflect the study more accurately with current response from different geographical states.

Future research on similar context is suggested to include the study on effectiveness of different method in teaching for hearing impaired students. The different teaching method can be apply in theory and practical assessment as it will help most of the educators.

5.7 Conclusion

This research aimed to identify what influential the effectiveness of teaching and learning hearing impaired students in Polytechnic Kota Kinabalu, Sabah. The findings suggested that practical factor more effective compare with theory and both theory and practical. Hence, this hypotheses is supported and accepted the hypotheses H2 that there is a significant relationship between hearing impaired students more effective in answering practical work.

Besides that, teaching experience also influence the effectiveness of teaching and learning process towards hearing impaired students. His is because the longer time in teaching hearing impaired students will determine their attitude and patient in teaching hearing impaired students. The ability of hearing impaired students in absorbing knowledge is differ from normal students. this is because their ability in accept and digest info and knowledge might be slower compare with normal students.

Data shows that practical assessment will be more effective compare with theory. This is because overall result for practical totally higher than theory assessment. This is because students more easy and interested in hands on work compare with just teaching in theory. So, for the conclusion, the practical in teaching hearing impaired students will be more effective compare with theory.

5.8 Summary

This chapters conclude all the research objectives, framework, hypothesis analyzing and findings of the research study. Each analysis is summarized in this chapter by highlighting the significant results. Discussion on the results are supported by the previous literatures

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to justify the findings. H1 and H3 are rejected and H2 and H4 accepted.

Included in this chapter is the implication of study, new contributions as addition to the previous study, existed limitation on research that could be improves for future study. Lastly, it includes the suggestions for future research and the conclusion for overall outcomes.

6. BIBLIOGRAPHY [1] Chavez-alvarez (2014). Teaching

and Learning Skills. International education Journal. 150-154.

[2] Abdullah Yusoff, Safani Bari & Mokhtar Taha, 2009. Pengenalan Pendidikan Khas. Kuala Lumpur: Open University Press.

[3] Abdullah Yusoff, Shukri Ismail, Azhari Muhamood & Nik Azhar Nik Ab Rahman, 2011. “Pengurusan Kurikulum Pendidikan Khas Masalah Pembelajaran: Satu Kajian Penerokaan Dan Keperluan Inovasi”. Kertas kerja dalam The International Conference on Early Childhood and Special Education (ICRCSE) USM Penang: 10-12 Jun 2011. Dewan Budaya, USM Penang, Malaysia.

[4] Hannell, G. (ed)., 2005. Identifying Children with Special Needs: Checklists and Action Plans for Teachers. California: Crown Press.

[5] Haynes, W. & Pindzola, R., 2008. Diagnosis and Evaluation in Speech Pathology. New York: Pearson.

[6] Heward, L., 2011. Exceptional Children: An Introduction to Special Education. New York: Prentice Hall.

[7] Taylor, Smiley & Richard, 2009. Execptional Students: Preparing Teachers for the 21 st Century. Boston: McGRAW HILL.

[8] Armour, B., & Tibadeau, J. (2010). Are adolesent girls with physical disabilities at increase risk for sexual violence. Journal of School Health, 80(7), 361-368.

[9] Bensy, M. L. (2011). Lending my voice out loud: The sexual abuse of students with disability in American

school setting. Doctoral dissertation, Hofstra University United States

[10] Jabatan Pendidikan Khas. (2006b). Huraian Sukatan Pendidikan Khas Bermasalah Pembelajaran Rendah dan Menengah. Bidang Pengurusan Kehidupan. Kementerian Pelajaran Malaysia.

[11] Griffiths, S., & Tann, S. (1992). Using reflection practice to link personal and public theories. Journal of Education for Teaching, 18(1), 69-84.

[12] Diez, M. E. (1996). Who will prepare the next generation of teachers? In L. Kaplan & R. A. Edelfelt (Eds.), Teachers for the new millennium: Aligning teacher development, national goals, and high standards for all students (pp. 20-35). Thousand Oaks, CA: Corwin.

[13] Ladson-Billings, G. (1996). The dreamkeepers: Successful teachers of African-American children. San Francisco: Jossey-Bass.

[14] Pearson, P. D. (1994). Standards and teacher education: A policy perspective. Setting Standards and Educating Teachers: A National Conversation (pp. 37-67). A report from the Wingspread Conference. Washington, DC: AACTE.

[15] Zeichner, K. M., (1983). Alternative paradigms on teacher education. Journal of Teacher Education, 34(3), 3-9.

[16] Clifford, P., Friesen, S. & Lock, J. (2004). Coming to teaching in the 21st century: A research study conducted by the Galileo Educational Network.

[17] Gilbert, J. (2005). Catching the knowledge wave? The knowledge society and the future of education. Wellington, NZ: NZCER Press.

[18] Goodrich, A. H. (1999). When assessment is instruction and instruction is assessment: Using rubrics to promote thinking and understanding. In L. Hetland & S. Veenema (Eds.) The Project Zero Classroom:

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[19] Views on Understanding. Cambridge, MA: Harvard Graduate School of Education

[20] Wiliam, D., Lee, C., Harrison, C. & Black, P. (2004). Teachers developing assessment for learning: Impact on student achievement. Assessment in Education, 11(1), 49-65.

[21] Chuah Kim Hwa. (2005). Positioning one-self in action research report: An insider’s perspective (Little voice of an action researcher: The journey of understanding 3). Kertas kerja yang dibentangkan dalam 3rd International Qualitative Research Convention 2005 anjuran bersama Universiti Teknologi Malaysia dan Qualitative Research Association of Malaysia, 21-23 Ogos 2005 di Sofitel Palm Resort, Senai, Johor.

[22] Chuah Kim Hwa. (2006). Looking for focus in educational action research (A revisit by the little voice of an action researcher in the journey of understanding). Bicara

[23] Pendidik 2006, 127-130 [24] Brooks, J. (1995). Training and

Development Competence: a practical guide, London: Kogan Page.

[25] Jackson, N. (2002) QAA: Champion for Constructive Alignment!

(Imaginative Curriculum Symposium, November 2002)

[26] Biggs, J. (2003): Aligning Teaching and Assessment to Curriculum Objectives, (Imaginative). Curriculum Project, LTSN Generic Centre).

[27] Biggs, J. (1999): Teaching for Quality Learning at University, (SRHE and Open University Press, Buckingham)

[28] Danielson, C. Enhancing Professional Practice: A Framework for Teaching. Alexandria: ASCD, 1996.

[29] Marzano, R. The Art and Science of Teaching: A Comprehensive Framework for Effective Instruction. Alexandria: ASCD, 2007.

[30] Danielson, C. Talk About Teaching: Leading Professional Conversations. Corwin: Thousand Oaks, 2009. p 5.

[31] Goe, L. Ph.D., Bell, C. Ph.D., Little, O., and ETS. “Approaches for Evaluating Teacher Effectiveness: A Research Synthesis.” National Comprehensive Center for Teacher Quality, 2008. p 9.

[32] Abbott, M. Conversations about teaching. Marylhurst University, 2009.

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Scientific Articles Science and Technology for Entrepreneurship (IbK) at State Polytechnic Kupang

Hapsa Usman1, Alfred Tandirura2, Ramzy G.G.L. Sayonara3

LPPM Politeknik Negeri Kupang

Abstract

This kind of community service is aim to develop science and technology for students in order to build up their entrepreneur soft skill and entrepreneur hard skill, thus they can be a job creator. This program also intend to establish business incubation unit at State Polytechnic Kupang as a practical learning media based on project learning of business. The real work project target is to create 20 new entrepreneur for micro and small class at State Polytechnic Kupang which will be a candidate tenant/ small businessman. The culture entrepreneurship development activity through science and technology entrepreneurship for entrepreneurs, tenant and alumni has purpose to generate tenant group at State Polytechnic Kupang in order to be an independent entrepreneurs, inovation creator, creative independent entrepreneur at State Polytechnic Kupang. Science and technology for entrepreneurship is conducted at State Polytechnic Kupang by using entrepreneurship public lecture method, business management workshop, industry visit and business consulting for entrepreneurs students at State Polytechnic Kupang. Based on socialization stages to a new comer students or being further students are about 70 students registered. This socialization delivered by public lecturing, entrepreneurship lecturing. Next stages are conducted by recruitment and disselection. Moreover, the participants who has been registered through recruitment and disselection by using interest, talents and interview test just leaves 20 students with highest score 81-89 from average score of interest and talents tests and they have a seriousnes and passion in doing business. This kind of test has been done to make a clearly interest and responses to entrepreneurship motivation. After that, the students will follow the workshop and training of business management, at the end of these activity, students will be accompanied and guided to be entrepreneur who will run business in 5 group from 20 tenant candidates. The business are credit business, culinary, bakery, soft drink/beverage business, souvenir and photo copy. Student who has been run a kind of the business above, in this program we will support them and give facilities such as place of business and equipments. The equipments are selling window display, refrigerator, freezer for soft drink business, walls ice cream, and also photo copy machine. Those equipments are given through a contract signing as a legality of business and also accompany students entrepreneur group in order to build their own business entity until they get their business license. Out-put of first year activity are 5 tenants with their business: canteen, soft drinks, bakery, credit business, stationary, souvenir ethnic of NTT and photo copy business. In order to run the next stage activity smoothly, it needs supports from other parties, controls, and intensive supervisions from executive team. In other words, it needs external supports to make this program as a continuous movement in a campus which promoting entrepreneurship culture. Keywords : science and technology for entrepreneurship/ibk , Workshop, Tenant 1. INTRODUCTION Prosperity a nation and State is assessed from State ability to produce goods and beneficent service and distributes it to all resident. In order to obtain goods and beneficent service and distributes it to all resident is not absolute prescribed by natural resources and geographical State but more essential be mark sense individual group that becomes

economic growth thruster. This individual group one results goods and that service. This individual ordinary group one to be called as entrepreneurs (wiratmo, 1996).

One of economic growth Indicator a region is the increase of entrepreneurs in that region because if there are more entrepreneur therefore unemployment will get less and society income increases.

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Entrepreneurship function and Role as inventor and planner ( innovator and planner ) in Finds / determine technology and way a new one, New ideas, New effort organization, Designing new effort, strategy planning, Plotting the oppurtunity ideas.

Unemployment phenomenon in Indonesia have become daily consumption of a variety party which fight to down unemployment numbers that the amount never getting less and less and even based on national data, several institutes survey its amount reach 42 million person. NTT is included one of region which the increase of resident developing so solid with level propertied society which incommensurate to its economic growth rates year 2010 under national average, the unemployment number reaches 30 % of total labor forces. Besides that, NTT also recognized as consumptive society type not as a productive society. NTT also being dubbed by the number of high unemployment and it will give negative impact to economics condition thoroughly whole NTT. Therefore, rit;s a badly needed to have an action program to decrease the numbers of unemployment. In accordance with it bachelors unemployment, Suryanto (2001) said that a lot of bachelor unemployment at our state more reverential since learning process at college (PT) Indonesia in a general way just centralize attention on left brain ability. On the contrary college student right brain ability less developed systematically. This condition also causes College just can afford dependent men, not creative, no self awarenes, not able to have a good communication with environment physically, socially and culturally in his life community.

Therefore, UMKM'S strategics position especially from educated young entrepreneurs has large role in national economics. In the meantime government attention was sizable, but needs improved. College also have utilised sizeable role to increase nation competitiveness so,strengthening program role is important to grow up new entrepreneurs and open a new job oppurtunity. Dealing with effort to create new independent entrepreneurs, therefore State Polytechnic Kupang have performed collaboration with various side as directorate of College Education via Programs entrepreneurs' College Student (PMW), via collaboration with Mandiri Bank in shaped entrepreneur's Program Independent (PWM) with official UMKM and Province NTT’s Union in Formation College Student union, NTT'S Region development bank and institutes concerning another as Collegiate As really have had effort and a variety party that have care to effort to develop entrepreneurs. By virtue of study to college's role in growing up the entrepreneurs and workfield therefore concluded that this program apparently can motivate and create college student to become new entrepreneur. entrepreneurs present at college have gotten action manifestly deep clops regional economics growth and national even global.

2. LITERATURE REVIEW FOR SOURCE OF INSPIRATIONS

The more Progressive Forward a State, the more educated Person, and a lot of unemployment Too Workless Person. Therefore, entrepreneurship is potentially for regional building in numbers and quality of entrepreneurship itself. Requirement for entrepreneurship is getting higher because of life demands and

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globalization demands. Understanding more entrepreneurial Full expressed by (Schumpeter in Alma, 2011) Entrepreneur as the person who destroys the existing economic order by introducing new products and services, by creating new forms of organizations, or by exploiting new raw material.

A statement letter From United Nations Declares That A State Would be able to Build up their country If they have entrepreneurs as much as 2% Of its Population. So If Our State Population Is 200 Millions, Therefore Amount entrepreneurs necessarily More Or Less 4 Millions. Let say that If We Account all entrepreneurs in Indonesian start from small traders until large traders are 3 Million, so, the big part of it must be small business group and micro business which have not guarantee to theirs life sustainability.

Development success That reached By Japan apparently being sponsored By entrepreneurs. The numbers is about 2% in intermediate range, small entrepreneurs as much 20% Of its Population. This is Development success key of Japan (Heidjrachman Ranu p, 2000:12).

The spirit of entrepreneurs can be built not simply through discourse slogans, or theory that gets chapter to chapter or Teaching System that using high technology but the spirit of entreprenenurship will alive and adrift if creativity and innovative and atitude are balance among Lecturer as Instructor, Inspirator and Motivator and college student as creator and Inovator and it also may not only be grown up through teaching only, but moreover has to be escorted by self-training and construction intensively pass through reality job (apprentice) entrepreneurship and visit goes to location or region that have top

entrepreneur product. Otherwise, chance and entrepreneurs capital will a lot easier be gotten if they have had practical experience to implement the knowledge, technology and art. Therefore college student as prospective as bachelor needs to be equipped with practical competence which covers skill in applying science and technology and art that he understood, and skill marketing management and technological-innovation adoption. In fiver years recently, State Polytechnic Kupang has performed various activity stage that aims to culturize entrepreneurship for college student through entrepreneurship programs College Student (PMW) but when they already finish their study, their ideas also gone by gone. But, through over IbK program, has Make an inspiration and Starts Up steadier Creativity for College Student and Tenant of State Polytechnic Kupang.

3. METHODOLOGY IbK for entrepreneurship of State Polytechnic Kupang were plan for finding new entrepreneurs Candidate that will be tenant through public entrepreneur lecturing, Management training Carries On Business and Product Various Makings Creative Effort and of that activity is expected successful college student to be motivated so 20 % of their each year available for doing business. Moreover, they also can get contract of firm in this case of job partner. In order to reach target already being established in IBK'S activity 5 tenant / per year for minimum, therefore it can be done by process as follows:

a. Socialization of entrepreneurship IBK programs for college student via Their department and entrepreneur lecture.

b. IbK's Participant Candidate recruitment through college

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student Registration Announcement who wants to follow IbK's Program

c. Sorting out College Student that registers through talent test and PEC of 70 College Student becomes 20 Tenant's Prospective College Students with average score of entrepreneur talent about 81to 89

d. Guiding 20 college student has already sorted out to do Business Day up as long as the running semester.

e. Giving Training for 20 cadidate Tenant student.

f. Performing Contract with agreement requirement by IbK's Team

g. 20 tenant is chosen 5 Tenant becomes Tenant Madya that ready for doing business start from small scale, then other 15 tenant’s left become tenant beginner for doing business on business day.

Campus potency digging up as to establish and empowers college student to be a new entrepreneurs therefore is done by using Participatory Rural Appraisal method (PRE), strategy that used by are as follows:

a. Doing socialization, coordination and in collaboration with other official such as UKM officials and Union official in order to give Socialization of College Student union start-up, industrial and commerce official to take part in giving business tenant license and other.

b. Doing selection as to establish new entrepreneurs by giving training and apprentice of entrepreneurship.

c. Doing On-line Marketing management skill training in shaped business day to college students that participated in the training.

d. Trainings and apprentices are done up to 1 month appropriate to college student talents.

e. Constructions and guidance to entrepreneur candidates and another tenant by providing mentors for the students.

In the effort to create new independent entrepreneurs therefore State Polytechnic Kupang perform collaboration with various side as directorate of College Education c / q Learning directorate and student passes through Entrepreneurship program for College Student (PMW), ( Co Op / Studies while work) via collaboration with Mandiri Bank in shaped Smalls Enterprise loan Program for college student, Collaboration with entrepreneurship Developmental institutes for provide training of trainer to entrepreneurship lecturer. Region and institutes concerning another as Collegiate who have had a business already and a variety private party that have care to business and its development for college student. In order to make succesful science and technology program and reach the target, thus students in semester V are priority given or 80 SKS for minimum standard from any other knowledge discipline. It mus have a relevance major of study with the needs in order to settle about industrial problem place apprentices, and has high motivation to follow entrepreneurship’s program. So do the counselor lecturer, they must have the same grade relevancy knowledge to overcome the problem in small intermediate entrepreneurs group micro. . Beside it, counsellor lecturer

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who has motivation and concerning to entrepreneurs development has given a priority. In the effort to create new independent entrepreneurs, IBK entrepreneurship’s program has several kinds of style or model to be done in terms of entrepreneurship training, placing college student to perform apprentice on corporate well-established one and facilitating them by giving them mentoring system.

4. THE MAIN WORK OF IBK PROGRAM STATE POLYTECHNIC KUPANG

4.1 Public entrepreneurship lecture This activity were done due to the cooperation with Telkomsel in order to raise up the students entrepreneurship spirit in doing business. The speaker of the public lecture in this occasion was the head of PT. Telkomsel.

4.2 Bussines Day

Students in entrepreneurs group are involved in business day by promoting and selling all kinds of products and services which had been designed and produced from

every side of marketing strategy, for example door to door and students location centered approach.

4.3 Worskhop/business management

training and making various business creative products. These workshop and training are conducted in three days by presenting several speakers from businessman, local government,

practisioner, banker and academics. All the participants are about 20 students who has been selected from interest and talents test.

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5. SUMMARY OF WORK

REVIEW Students entrepreneurship development program is good for new beginner tenant or madya tenant in vice versa. This program is a concrete action campus who wants to lift up the studentss potential in doing business and live up the entrepreneurship at campus.

Every year, unit IBK entrepreneurship program service are accompanied 20 entrepreneurs candidates, they are all students who wants to start up a new business. IBK entrepreneurship sinergized with State Polytechnic Kupang students unit which lead by Pudir III for students recruitment who will get the students entrepreneur creativity program. Thus, the out put of IBK entrepreneurship are: (1) new independent entrepreneurs per year who has been ready for competition in society from 20 entrepreneurs, only 5 tenant madya are choosed. The rest of it will get the training next year.

6. CONCLUSIONS Based on analysis of entrepreneurship IBK implementation for state Polytechnic Kupang students, it can be concluded that this program is able to motivate and create new entrepreneurs students. The existence

of new entrepreneurs will give a contribution to local government, regional and national economic development as well as for global also. There are 5 entrepreneurs are ready for running a business from 20 students become tenant madya, they will run a business in the term of credit business, rent, NTT culinary canteen, photo copy, NTT’s cake and bakery, various kind of beverages, Walls ice Cream selling in terms of business creative in NTT, especially in Kupang.

7. IMPACT AND BENEFIT OF ACTIVITY

IbK Entrepreneurship for students of State Polytechnic kupang gives a real impact in developing entrepreneurship culture at campus. All kinds of business activities are coming from new entrepreneurs who has been participated in IBK PNK program.

8. BIBLIOGRAPHY [1] Buchari Alma,H,Prof. Dr., (2009)

Kewirausahaan, Untuk Mahasiswa dan Umum, Penerbit Alfabeta Bandung.

[2] Dipta,W, (2014). Makalah, Peranan Perguruan Tinggi Dalam Penumbuhan Wirausaha dan Penciptaan Lapangan Kerja.

ISSN 2302-786X


[3] Ford, Brian R, dkk,2008, Business Plan, The Ernst & Young , Perusahaan Jasa Konsultan Bisnis Tersukses Di Dunia, Panduan Rencana Usaha Anda, Penerbit PT Cahaya Insan Suci, Jakarta.

[4] Joewono, Handito, (2002). Pedoman PPM Edisi IX DIkti The 5 off Arrows, New Business Creation & Entrepreneurship, Lima Langkah Memulai dan Mengembangkan Bisnis Baru,Penerbir Arrebey, Jakarta.

[5] Kasali Rhenald,Prof, PH.D,dkk, (2009). Modul Kewirausahaan

Untuk Program Strata 1, Penerbit Hikmah ( PT Mizan Publika), Jakarta.

[6] Kuratho Donald, Dr. (2009). Entrepreneurship, Theory, Process, Practice , Eighth Edition, South- Western Cengage Learning,USA.

[7] Sumodiningrat, Gunawan, (2001). Responsi Pemerintah Terhadap Kesenjangan Ekonomi, Studi Empiris Pada kebijaksanaan dan Program Pembangunan Dalam Rangka Pemberdayaan Masyarakat Di Indonesia, Penerbit Perpod , Jakarta.

ISSN 2302-786X


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