The 2007 Indonesian investment law granted national treatment for foreign investors, establishing a transparent 'negative list' for out-of-bonds investment sectors, and has been considired as a reformative regulation in Indonesia's economic strategy. However, decentralized systems give autonomy to local governments to manage their projects and infrastructure themselves. This leads into increasiig investment burdens through their opaque measures that are creating perceptions of risk for foreign investors. As a result, lack of legal certainty, inconsistent regulations and judiciary system would hamter investments. This article argues that law 25/2007 should be supported by a comprehensive investment policy to attract more foreign investors into Indonesia. A key element in establishing a competitive region is a free and open investment regime, This article addresses policy impediment to private investment in Indonesia as well as in the ASEAN region. Indonesia and ASEAN should have non-discriminatory treatment extended to foreign investors including ASEAN-based inveitors, as the establishment of ASEAN Economic community (AEC) will cornmence in 2015. Legal certainty of international business transaction by private investors is fostering investments by both direct investment and indirect investment (portfolio). Parties to investment agreements include individuals, small, medium and large multinational corporations, and countries. In this centralized global atmosphere, the Indonesian agovemment has to provide guarantees to leverage private investments.
Food Estate is a government program with the concept of integrated food production development covering agriculture, plantation and animal husbandry located in a large land area. In simple terms the concept of Food Estate like a food industry villages. In running this program required a large capital, so the government opens opportunities for investment locations for the private sector to achieve efficiency, effectiveness and added value of the products that produced. The presence of a wave of private investment in the food estate program was not able to raise the welfare of the tenant farmers. Agricultural land tenure by investors makes the farmers only as laborers. So, the investors are who get benefits in this food estate program. To overcome this problem, it is necessary to look for other capital alternative. By using library research, in this study, cash waqf can be used as the capital alternative. Through cash waqf, assets of waqf in the form of empty lands can be used to be processed into agricultural land. Cash waqf can also be in the form of productive loans for farmers and agricultural investment. The large potential of cash waqf in Indonesia is expected to replace the role of private investors.
In the middle of district head's euphoria to float and move forward province of Bangka Belitung's island by brought in the palm oil investors conduce the new conflict of society, i.e agrarian conflicts. The presence of palm oil investors in the middle that in the beginning has been designed to give a profit for society, especially the societies around the oil palm plantation, but precisely harm the soci- ety a lot. For local society, indigenous forest is symbol of nature conservation and the place of animal Seizure and claims over land often happens between the palm oil investors with local society. One of them is the conflict between Air Abik society with PT. Gunung Pelawan Lestari. The main factor of this conflict is there a logging, indigenous forest clearance, destruction of 11 ancestral graves belong to society conducted by PT. Gunung Pelawan Lestari in their efforts to oil palm expansions. This thing then triggered public protest action. survival. Whereas, ancestral grave is symbol of local wisdom and cultural heritage that must be preserved and maintained. Besides, if we see the conflict between both sides, it can be analyzed with contentious politics theory. The use of contentious politics theory because this conflict involves the collective interaction between the claimant, i.e PT. Gunung Pelawan Lestari and claim object, i.e customary land and the land where the 11 ancestral graves stand. In contentious politics theory, there is also depletion of resources. This depletion of resources in the end will influencing people to get involved in the political tensions, like the high level of public complaints, legacy of previous protest, political opportunity structure, and the mechanism relation to help society resistance. ; In the middle of district head's euphoria to float and move forward province of Bangka Belitung's island by brought in the palm oil investors conduce the new conflict of society, i.e agrarian conflicts. The presence of palm oil investors in the middle that in the beginning has been designed to give a profit for society, especially the societies around the oil palm plantation, but precisely harm the soci- ety a lot. For local society, indigenous forest is symbol of nature conservation and the place of animal Seizure and claims over land often happens between the palm oil investors with local society. One of them is the conflict between Air Abik society with PT. Gunung Pelawan Lestari. The main factor of this conflict is there a logging, indigenous forest clearance, destruction of 11 ancestral graves belong to society conducted by PT. Gunung Pelawan Lestari in their efforts to oil palm expansions. This thing then triggered public protest action. survival. Whereas, ancestral grave is symbol of local wisdom and cultural heritage that must be preserved and maintained. Besides, if we see the conflict between both sides, it can be analyzed with contentious politics theory. The use of contentious politics theory because this conflict involves the collective interaction between the claimant, i.e PT. Gunung Pelawan Lestari and claim object, i.e customary land and the land where the 11 ancestral graves stand. In contentious politics theory, there is also depletion of resources. This depletion of resources in the end will influencing people to get involved in the political tensions, like the high level of public complaints, legacy of previous protest, political opportunity structure, and the mechanism relation to help society resistance.
Purpose This study aims to develop an Islamic crowdfunding model based on a website platform for startup companies. Design/methodology/approach Apart from reviewing related literature, specifically focus group discussion with 16 CEO of startup companies, in-depth interview with two crowdfunding provider, Fiqh expert and technology platform expert for the development of an Islamic crowdfunding website platform for startup companies. Findings The concept of Islamic crowdfunding is recommended as a funding solution for small and medium-sized enterprises and startup companies. Therefore, it was deemed crucial for this study to develop an Islamic crowdfunding model based on a website platform as a form of innovative acceleration to provide alternative funding for a startup company, which subsequently expands to a growing and sustainable business. Furthermore, the use of a website platform for the operation of a crowdfunding mechanism is deemed as an effective means to link cross-geographical investors with the startup company owners in Indonesia, specifically East Java. Practical implications Islamic crowdfunding website platform can be the solution for startup companies to obtain capital funds while startup companies are not able to provide collateral to attain financial assistance and experience problems. Expectedly, the government should provide legality, regulation, licensing and socialization matters pertaining to crowdfunding to obtain legal legality from the country. Originality/value There is still no research to develop the Islamic crowdfunding model using a website platform. This study was expected to provide essential insights on the effective development of an Islamic crowdfunding website platform integrated with startup companies, investors and Sharia committee.
Foreign direct investment is the largest source of external funds in both developed and developing countries. Some literature explains that one of the barriers to investment flow is corruption. Thus, this study aims to determine the effect of corruption as measured by the corruption perception index on foreign direct investment. Corruption is a political risk that affects the flow of foreign direct investment. The estimation results of the Generalized Method of Moment (GMM) show that the corruption perception index has a significant positive effect on foreign direct investment. The author also uses market seeking and efficiency seeking variables as potential factors that influence investors to direct foreign direct investment.
This study aims to determine the reaction of foreign ownership on the Indonesia Stock Exchange to the adoption of International Financial Reporting Standards (IFRS). This study will examine the reaction of foreign ownership on the Indonesia Stock Exchange during the periods 2007-2010 and 2012-2015. The variables used in this study are IFRS and foreign ownership. It finds that the obligation of IFRS does not affect the development of foreign investment in Indonesia, because accounting standards in Indonesia have been adjusted to IFRS since 2008 and investment decisions are not only influenced by standard accounting policies, but also by other factors, such as the economic and political conditions of a country. This study is motivated by the results of previous studies regarding the reaction of foreign ownership of IFRS adoption, which is still controversial. Some studies suggest that IFRS adoption increases information appeal and can attract foreign investment, while other research states that IFRS adoption will not necessarily increase the number of shares held by foreign investors.
This study aims to determine the reaction of foreign ownership on the Indonesia Stock Exchange to the adoption of International Financial Reporting Standards (IFRS). This study will examine the reaction of foreign ownership on the Indonesia Stock Exchange during the periods 2007-2010 and 2012-2015. The variables used in this study are IFRS and foreign ownership. It finds that the obligation of IFRS does not affect the development of foreign investment in Indonesia, because accounting standards in Indonesia have been adjusted to IFRS since 2008 and investment decisions are not only influenced by standard accounting policies, but also by other factors, such as the economic and political conditions of a country. This study is motivated by the results of previous studies regarding the reaction of foreign ownership of IFRS adoption, which is still controversial. Some studies suggest that IFRS adoption increases information appeal and can attract foreign investment, while other research states that IFRS adoption will not necessarily increase the number of shares held by foreign investors.
The development of the microfinance as well as islamic microfinance Indonesia has been remarkable. It gains many attention by policy makers as well as academicians in many occasions. Topic that was discussed ranged from the past performance, current obstacle as wes as the problem, solution and the opportunity in the future (Hamad 2010, Bank Indonesia 2009,2010). The role of this microfinance gain more important during the recent financial crisis. The subprime mortgage occured in 2008 has affected many countries in the worlds. In Indonesia the effect can be seen from the stock market. Jakarta Composite Index (JCI) shows 2721.25 in January 2008 while it plunged to 1241.54 in October 2008. Companies which the operations is exposing themselves to the exchange rate were obviously got affected since the plunge of the stock market induce investors not to continue their investments in Indonesia. As a result ''fligh to quality" happened and this create fluctuation of the exchange rate. However, other sector such as microfinance does not seem to be affected.
Audit opinion is an important information required by financial information users. This opinion could influence the decision made by the investors and other stakeholders. The research on the factors affecting audit opinion is still limited in public organization, especially in Central Government. Therefore, this study try to investigate the factors affecting the audit opinion in Indonesia Central Government. The study use the agency theory to explain what factor affecting the going concern audit opinion. By using 92 Ministry and Institutions in Central Government, data of 2012 financial report, and logistic regression. We find that prior audit opinion and audit lag as factors affecting the going concern audit opinion. In addition, these variables influence the audit opinion positively. However, the education background of leader and institutions size do not affect the going concern audit opinion. This research give the contribution to the practical and theoretical. Further, this research also after give some avenues for future research. Keywords: Institutions Size, Prior Audit Opinion, Education Background of Leader, Audit Lag, and Going Concern Audit Opinion
Financial distress is a condition that occurs before a company goes bankrupt, so before that happens, the company needs to take actions such as good corporate governance practices. The purpose of this research is to determine the effect of the audit committee, ownership structure, and CEO on financial distress in trading, service, and investment companies listed on the Indonesia Stock Exchange for the period 2015-2018. The analysis technique used is logistic regression analysis. This type of research is quantitative by using a sample of 25 companies determined through a purposive sampling technique. The results showed that the frequency of audit committee meetings had a significant and positive impact on financial distress, and institutional ownership had a significant and negative impact on financial distress. While the other variables include: audit committee size, audit committee competence, audit committee independence, managerial ownership, family ownership, government ownership, foreign ownership, block holder ownership, and CEO's gender do not have a significant impact on financial distress. Implications of the results in this study are considering the frequency of audit committee meetings and the percentage of institutional ownership in predicting financial distress that can be used by companies and potential investors.
Abstract Corruption is a criminal act that breaks and against the state law and the religion law. Due tothe fact that this corruption is not only prohibited by the greatest one God but the effectivelegislation rule as well. Furthermore, the corruption can bring about a loss to all side. Forinstance; being able to make a misery society and country, locking the country economygrowth rapidity, putting in disorder country, being able to bring about a bad image for thecountry on the international people's view, in addition to, being able to cut down the countrythrust level on the international worl eithin doing cooperation, mainly in economy sector. Evenfor further more, the corruption make afraid of all foreigner investors to invest their stock orshare in Indonesia.On the other hand, the corruption can also induce the blocked project being carried out inourselves country as well as can hamper routine's job of the country. Thus the corruption actcan become the cause of the stopped country advance or progress. As a final point, thosecorruptors' re properly given a punishment dealing with their deed. Even a great deal ofsociety group wish those corruptors to be killed out or be given as a death sentence or in otherwords, at least is to be imposed as heavy as punishment in order to making them discourageto redo their deed. As a matter of the fact, this is only an example for other people who want todo what was done by the perpetrators before. In the long run, the corruption level can bedecreased in this our motherland's country.Keywords: the corrupt criminal act constitution, constituonal law, the effectivelegislation rule, Islamic law, Al-Qur'an & Al-Hadist.
Purpose This study examined the effect of different types of politically connected (PCON) Malaysian firms on analysts' forecast accuracy and dispersion. Design/methodology/approach The study identified different types of PCON firms according to Wong and Hooy's (2018) classification, which divided political connections into government-linked companies (GLCs), boards of directors, business owners and family members of government leaders. The sample covered the period 2007–2016, for which earnings forecast data were obtained from the Institutional Brokers' Estimate System (IBES) database and financial data were extracted from Thomson Reuters Fundamentals. We deleted any market consensus estimates made by less than three analysts and/or firms with less than three years of analyst forecast information to control for the impact of individual analysts' personal attributes. Findings The study found that PCON firms were associated with lower analyst forecast accuracy and higher forecast dispersion. The effect was more salient in GLCs than in other PCON firms, either through families, business ties or boards of directors. Further analyses showed that PCON firms—in particular GLCs—were associated with more aggressive reporting of earnings and poorer quality of accruals, hence providing inadequate information for analysts to produce accurate and less dispersed earnings forecasts. The results were robust even after addressing endogeneity issues. Research limitations/implications This study found new evidence of the impact of different types of PCON firms in exacerbating information asymmetry, which was not addressed in prior studies. Practical implications This study has a significant practical implication for investors that they should be mindful of high information asymmetry in politically connected firms, particularly government-linked companies. Originality/value This is the first study to provide evidence of the impact of different types of PCON firms on analysts' earnings forecasts.
