The purpose of this study is to investigate the relationship of firms with family ownership and their performance in Indonesia and further examine on how political connections affect this relationship. This study used 933 samples from 413 companies listed on the Indonesia Stock Exchange (IDX) in the period between 2014 and 2016. Using ordinary least square (OLS) regression, the results shows that firms without family ownership (non-family firms) have better performance than firms with family ownership (family firms) in Indonesia. Furthermore, the findings also show that the performance of family firms significantly improve when the firms are affiliated with political connections. Our findings imply that establishing political connections in family firms will increase the performance of the firms
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.
Purpose of the study: This study aims to examine foreign debt as a source of financing for economic development. This research is expected to provide (1) an overview of debt as a source of funding for state projects, (2) investigate its impacts and (3) offer additional knowledge of its Islamic perspective. Methodology: This research is a qualitative study using the study literature approach. This research is conducted by analysing books, literature, journals, and magazines with themes related to the focus of the discussion on this study. It is expected that the method used can provide insight, general knowledge, and develop the view of Islam in relation to foreign debt. Main Findings: The government has to ensure that the state has the ability to pay off its obligations in the future; guarantee that loans have to be free from interest; prioritize taking loans from internal sources rather than external sources. In Addition, debts are not intended for deferred needs and not taking loans that exceed their needs. Applications of this study: basically the results of this study can be applied to any country that considers the use of public debt, like other Islamic systems. Novelty/Originality of this study:This research is conceptual research in an Islamic perspective. This study successfully examined comprehensively related to the public debt with the Islamic approach.
Government Internal Auditor Apparatus (GIAA), as a professional organization of government internal auditors, consists of Indonesia's National Government Internal Auditor (BPKP) and Inspectorate on the level of local government and has a very important role in creating clean, fair, transparent, and accountable governance. Nevertheless, in running its responsibilities and functions, GIAA often faces audit conflicts that lead to a dilemma situation. The audit conflict will become an ethical dilemma when GIAA faces ethical and unethical choices that determine an auditor's decision-making (Windsor et al., 1995). GIAA as a professional organization is required to be able to make appropriate conclusion from the audit findings based on the applicable code of ethics in the constitution and profession. Ethical decision is a publicly acceptable conclusion, both legally and morally ( Jones, 1991; Trevino, 1986). Several previous studies suggest that there are significant individual and situational factors that influence a person in making decisions ethically (Trevino, 1986). The individual factor that influences one's determination in facing ethical dilemmas is spiritual and ethical orientation, whereas the situational factor that supports in ethical decision-making is personal ethical judgment. Based on the aforementioned explanation, this study aims to examine the effect of ethical orientation on ethical decision, either directly or through ethical judgement at GIAA of Financial and Development Supervisory Board (BPKP) and Inspectorate East Java Local Government. Test results show that ethical orientation has a significant positive effect on ethical decision; ethical orientation has a significant positive effect on ethical judgment; ethical judgment has a significant positive effect on ethical decision; and ethical judgment mediates the relationship between ethical orientation and ethical decision.
IMFI (Islamic Micro Finance Institutions) is a microfinance institution that can provide ease of access, especially for people who have SME ( Small and Medium Enterprises). The purpose of this study is to determine how the concept of cooperation network between the government, private sectors and universities in strengthening SME capital through IMFI. The method used in the study is a qualitative method using a discourse analysis data analysis technique. The result of this study indicates that the cooperation between the government, private sectors, and universities in strengthening the capital of SME through IMFI can be implemented using a linear collaborative of partnership model, while capitals that can be utilized such as RLF of government, CSR funds from the private sector (companies), program linkage with Islamic Banks, training and preparation of skilled workforces from universities to support the development of IMFI and SME.
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.
This study investigates the contribution of Islamic banks and Islamic windows to the growth of the Nigerian economy. Data were obtained using structured questionnaires. 379 copies of questionnaires were administered based on the sample size obtained via the use of Taro Yamane formula. 367 questionnaires were successfully retrieved. Variables such as deposit activities, loan activities, and perception of bank employees were also adopted as explanatory or independent variable and dependent variable respectively. To support the study hypothesis were also formulated. For the analysis, measures of central tendency (tables, frequency and percentages) and inferential statistics (Logit Regression) were used. The result revealed that the variables (i.e. deposit and loan activities) have a positive impact on the growth of Nigeria's economy because the probability values of the variables (P=0.003 and 0.019) were less than alpha (α =0.05) level of significance. In other words, this implies that Islamic banks and windows have largely supported private consumption, business investments of its customers, aid government spending via sharia bonds (sukuk) to fund developmental projects of its customers. The study concludes that Islamic banks and windows have contributed towards the growth of the Nigeria's economy. Furthermore, the study recommends that there is need for creating the necessary legal framework to ensure its smooth operations, intensify efforts on creating public awareness, rolling out more sharia compliant products that can take care of the peculiarities that exist in business environment and training and retraining of staff on effective Islamic banking.
Actually, a serious program for poverty alleviation has been started since the last five years. Ta alleviate poverty problem especially in urban areas should not be focused on physical infrastructure development alone. it should be considering the dimension of social development to make urban development to be more harmony. Poverty alleviation is almost considered as the ultimate goals of the city planning, and this problem caused by the process of urbanization.Contemporary social problems in urban areas such as financial assistant for the poor, adolescent problem, drug abuse, criminality, prosti tution, social dysfunction, social cinflict, etc. Efforts to prevent these problems are needed; and improvement the quality of life of migrant workers should be the priority for the government of the municipalities. Regarding these problems, results of the the research in Keluraban Prawirodirjan found evidences that the empowerement program directed to migrant workers resulting a good lessons lerned for us. ; Actually, a serious program for poverty alleviation has been started since the last five years. Ta alleviate poverty problem especially in urban areas should not be focused on physical infrastructure development alone. it should be considering the dimension of social development to make urban development to be more harmony. Poverty alleviation is almost considered as the ultimate goals of the city planning, and this problem caused by the process of urbanization.Contemporary social problems in urban areas such as financial assistant for the poor, adolescent problem, drug abuse, criminality, prosti tution, social dysfunction, social cinflict, etc. Efforts to prevent these problems are needed; and improvement the quality of life of migrant workers should be the priority for the government of the municipalities. Regarding these problems, results of the the research in Keluraban Prawirodirjan found evidences that the empowerement program directed to migrant workers resulting a good lessons lerned for us.
The development of new media provides convenience in communicating and conveying the message, thus leading directly into a meeting without limited space, time and distance, users can easily participate in social interaction. Political parties take advantage of the development of new media in order to disseminate and political information to the public in order to obtain a good image. The Justice and Prosperous Party or sometime called PKS utilizing twitter as a social media in order to convey the message of political socialization through the official account DPP @PKSejahtera to 159.500 followers. This research is about the relationship of political socialization messages relations in social media twitter with the image of PKS. (Study: Political Socialization PKS through @PKSejahtera account). Purpose of this study is 1) how much the relationship of political socialization messages in social media Twitter with the image of PKS. This research method uses a quantitative approach. These results indicate that there is a relationship between socialization message via twitter to the image. The highest relationship found in the relationship of political socialization message with variable perception in the indicator 's political image.Keywords : Political Socialization Messages, Prosperous Justice Party, Twitter, Image.
The Indonesian government launched a new people's business credit program as part of a package of economic policy and deregulation. The interest rate is set lower than the average of the current loan interest rates, especially when compared with rural bank interest rates. To capture the social spatial aspects, quota sampling is applied to ten areas that divided based on the social culture. Further, the method utilized in this research is logit models, which designed to analyse the determinants of asymmetric information particularly on the rural bank and small micro enterprises. The study was conducted in East Java as the province with the largest number of rural banks in Indonesia. Based on the estimation of asymmetric information model to the respondent of rural banks and small businesses, the result shows that adverse selection can be avoided by strengthening the information about prospective borrowers. Regarding moral hazard, rural banks and small businessmen argued that the imposition of the collateral to the debtor has an important role to avoid moral hazard. Rural bank respondents stated that the KUR program with low-interest rates has affected their business development. The results implied the need of broadening the collaboration schemes between this people's business credit program and rural banks.
Digitalization in the modern era has provided opportunities for the youths to participate in this information and social spheres. The concentrated use of social media has contributed to the astonishing factor among the voters where social media has changed the preferences of youths toward the right to vote. The research aims to investigate the contributions and preferences of youths toward political participation in the contemporary discussion in Indonesia. This research was quantitative research using a purposive random sampling technique to give equal opportunity to each respondent. The mode of data collection was an online survey. The majority of the respondents in this research were the student of the universities. Data were collected in April 2019 to examine the interest of youths in general elections in Indonesia. This research found that social media and Social Networking Sites (SNSs) have provided a unique platform to discuss political matters and 'take apart' in political discussions. Existing in-depth researches on this phenomenon show that political awareness among youths in Indonesia is an essential part and social media is the leading indicator. This research suggested some recommendations for to usage of social media for the socialization of youths. ; Digitalisasi di era modern telah memberikan peluang bagi generasi muda untuk berpartisipasi dalam bidang informasi dan sosial ini. Penggunaan media sosial yang terkonsentrasi telah berkontribusi pada faktor menakjubkan di antara para pemilih di mana media sosial telah mengubah preferensi kaum muda terhadap hak untuk memilih. Penelitian ini bertujuan untuk menyelidiki kontribusi dan preferensi generasi muda terhadap partisipasi politik dalam diskusi kontemporer di Indonesia. Penelitian ini adalah penelitian kuantitatif dengan menggunakan teknik purposive random sampling untuk memberikan peluang yang sama bagi setiap responden. Mode pengumpulan data dalam penelitian ini menggunakan survei online. Mayoritas responden dalam penelitian ini adalah mahasiswa universitas. Data dikumpulkan pada April 2019 untuk menyelidiki minat generasi muda dalam pemilihan umum di Indonesia. Penelitian ini menemukan bahwa media sosial dan situs jejaring sosial (Social Networking Sites atau SNS) telah menyediakan platform yang unik untuk mendiskusikan masalah politik dan 'mengambil terpisah' dalam diskusi politik. Penelitian ini menyarankan beberapa rekomendasi untuk penggunaan media sosial untuk sosialisasi generasi muda.
Rice is a staple food in East Java, and the average consumption is 100 kg/capita/year. However, rice productivity has declined dramatically in recent years. Food security can be reached by improving the technical efficiency of rice farming, especially in rice farming centers such as East Java Province. This study aims to measure technical efficiency and its determinants using two limit tobit. And it also aims to examine the effect of the technical efficiency of rice farming on food security using logit regression. Technical efficiency will be measured by using data envelopment analysis (DEA). The results show that the technical efficiency of rice farming is very low in East Java. Government assistance, irrigation, and extension have a significant effect on technical efficiency. Meanwhile, membership of farmer organization has no effect on technical efficiency. Around 69% of farmers can be categorized as food secure households. The estimation of logit regression shows that household size, income, land size, education, age, and gender significantly influence food security in East Java. Meanwhile, credit and technical efficiency did not have any significant effect.
This paper attempts to establish a causal relationship between a government micro and small enterprises (MSEs) credit promotion policy and MSEs' upward transitions and growth. Indonesian firm level data in conjunction with the cancellation of a mandatory MSE credit policy in 2001 by the Indonesian government are employed in the analysis. Firstly, estimations of the year-on-year micro to small size category transitions indicate the negative effect of the policy change on the upward transition of micro firms. Secondly, causal effect analysis using difference-in-differences (DiD) estimation, by employing the policy change as an exogenous shock on the MSE credit availability and setting medium and large enterprises (MLEs) as the counterfactual group, suggests that the policy cancellation reduces the probability of a micro firm to become a small firm by 1.3% relative to the MLEs' probability of transitioning between size categories. The negative effect on turnover growth is also identified.
This study aims to determine the effect of Zakah Infaq Shadaqah (ZIS) funds channeled by the National Amil Zakat Agency/Badan Amil Zakat Nasional (BAZNAS) on unemployment in Indonesia during 2002-2017. The study was conducted using a quantitative approach. The control variables used for this research are Gross Domestic Product (GDP), education level, investment, and government subsidies. The analysis technique used is Autoregressive Ditributed Lags (ARDL). The data in this study were obtained from the Central Statistics Agency page, BAZNAS, and Indonesian State Budget (Anggaran Pendapatan dan Belanja Negara). The research results partially in short term shows that ZIS has a positive and significant effect on unemployment. While partially long-term research results, ZIS has a negative and significant effect on unemployment. Simultaneously, the variable ZIS, GDP, education level, investment, and government subsidies have significant effects in the short and long term on unemployment in Indonesia in 2002-2017.
