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World Affairs Online
Explaining Regional Inflation Programmes in Indonesia: Does Inflation Rate Converge?
This paper investigates the inflation convergence of 82 Indonesian cities and discusses the remarkable regional inflation programmes in Indonesia. By employing a dynamic panel regression, the paper shows that Indonesia experienced an inflation convergence from 2013 to 2018. An intriguing finding is that the cities in Java-Bali, the largest density area, experienced a slower speed of convergence than that in cities outside the Java-Bali. This paper alleges that the development of logistic transportation and the formulation of an inflation control programme, such as the Tim Pengendalian Inflasi Daerah (TPID) or Regional Inflation Controlling Team (RICT) that has just been stationed and has commenced their duties in East Indonesia, might play an essential role in the convergence. Moreover, the coordination between the central and regional governments, represented by TPID/RICT, in implementing the effective policy (i.e. prioritising development outside Java-Bali and fostering inter-region cooperation in the commodity supply chain) is effective in stabilising and reducing the inflation rate.
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Do government policies drive economic growth convergence? Evidence from East Java, Indonesia
While Indonesia has been experiencing relatively considerable and stable economic growth in the last decades, the country is prone to income disparity across regions due to uneven distribution of population, natural resources and the persistent impacts of centralized development imposed by the New Order regime. This study examines the economic growth convergence in East Java, Indonesia, from 2010 to 2019 and explores the influence of government expenditure on education, health, and capital sector on the economic growth convergence. By considering spatial dependence across regions, the result shows no strong evidence of regional income convergence in East Java. Also, this research claims the presence of spillover effect of government expenditure on education and capital sector on regional income growth. Notably, higher government expenditure of the education sector in one region could stimulate higher economic growth of its neighboring regions. Conversely, higher government expenditure on the capital sector in one region may lower the economic growth of its surrounding regions.
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Technical efficiency among agricultural households and determinants of food security in East Java, Indonesia
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.
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Efficiency and Effectiveness of Government Expenditure on Education at Districts/Cities Level in East Java Indonesia
The purpose of this study is to investigate and analyze the efficiency and effectiveness of local government expenditure on education sector in districts and cities level of East Java, during the periods 2007-2014. Furthermore, this study will evaluate the impacts of local government expenditure, household expenditure for education, and regional product domestic bruto or (PDRB) on the educational outcomes, namely education index. Data Envelopment Analysis (DEA) is selected as the methodology for analyzing the efficiency of local government expenditure on educational outcome. The model assumes constant return to scale (CRS) and variable return to scale (VRS). Measurement of the effectiveness of government spending is done by using panel data regression. Data for supporting the analyses is panel data from 38 districts and cities in East Java for the periods of 2007 – 2014. The results show that government expenditure in educational sector is relatively inefficient. Government Expenditure for Education (PPP) has no significant impact on educational index, while Household expenditure for education (PPRT) and GRDP per Capita positive has significant impact on the Education Index (IP). This imply that government expenditure for educational sector is not effective improving educational index.
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Isolation and Identification of Brucella Suis in Pigs as Zoonotic Disease in Endemic Areas of East Java, Indonesia
Background: Brucellosis in pigs at East Java Indonesia has not only cause great economic losses due to a decrease in productivity of livestock but also are zoonotic. Infection on free brucelosis pigs were initially begun with the infected pigs both male and female, or the use of superior male pigs together. The elimination of the disease either on a group or population is considered as the most effective way to prevent the spread of the disease in pigs. Prevention efforts mainly addressed to vaccination, sanitary maintenace and government policy. The purpose of this study was to isolated and identified Brucella suis as the causative agent. Material and Methods: The survey area were the pig farm owned by breeder farmers in the area of East Java Indonesia, at Kediri, Malang, Blitar and Probolinggo district. Blood samples obtained were tested with RBT. Pigs are suspected of being infected with Brucella if the RBT was positive that characterized with agglutination in the test results. If RBT was positive, bacteriological examination will be performed, with samples of visceral foetus organ, ie liver, spleen, placenta and amniotic fluid. Isolation and identification of Brucella suis were used Brucella Broth and Brucella Agar, and if the bacteri growthwill be continued with biochemical test ie H2S, urease, citrate, catalase and oxidase test. The positive results of Brucella suis showed positive urease, catalase andoxidase,but negative for citrate and H2S. Results: RBT and bacteriolgical examination showed that 1 sample was positive Brucella suis, and 19 negative. The positive results showed positive urease, catalase and oxidase,but negative for citrate and H2S Conclusion: Based on RBT test and bacteriological examination, there was 1 positive sample of brucellla suis, that is sample coming from Kediri district. Key words: Brucela suis, pig, isolation,identification, zoonotic
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The Role of Banking Capital in Industrial Sector Micro Enterprises for Poverty Alleviation: A Study in East Java, Indonesia
This study examines the micro enterprises of industrial sectors that receive Kredit Usaha Rakyat (People's Business Credit/KUR) or Commercial Credit (KK) in seven cities in East Java. First-ly, this study aims to measure the technical efficiency of micro enterprises in the industrial sector in East Java that accept KUR and KK using the Data Envelopment Analysis method; secondly, to ex-amine the factors that influence the technical efficiency of micro enterprises, which receive KUR and KK with Tobit Regression. Unlike others' researches, this paper attempts to determine the influ-ence of technical efficiency and other factors on the poverty status of micro entrepreneurs using logistic regression. The average technical efficiencies of KUR and KK recipient micro businesses using the as-sumptions of the DEA VRS model are 0.94 and 0.77. While the average technical efficiencies of KUR and KK recipient micro businesses using the assumptions of the DEA CRS model are 0.88 and 0.71. The factors that influence the technical efficiency of micro enterprises recipients of KUR and KK are profit, experience, geographical location, amount of credit, KUR access, the credit realization peri-od, and dummy variable of food and beverage products. The factors that influence the poverty status of micro-entrepreneurs are technical efficiency, income, KUR access, gender, number of household member, and geographical location. The results of this research can be a material consideration for the government in formulating policies.
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Peran Pemerintah Indonesia bersama IOM Dalam Mengatasi Masalah Perdagangan Perempuan Indonesia ke Timur Tengah Periode 2016-2019
ABSTRAKPenelitian ini menganalisis tentang peran pemerintah Indonesia dalam menangani masalah perdagangaan perempuan Indonesia ke Timur Tengah pada tahun 2016-2019. Namun di tengah upaya-upaya yang dilakukan, nyatanya pemerintah Indonesia juga memerlukan adanya sebuah elemen kerjasama dari sebuah lembaga ataupun organisasi, yang diharapkan mampu membantu upaya pemerintah untuk mengatasi masalah perdagangan perempuan yang terjadi di Indonesia, salah satu upaya pemerintah yaitu dengan menjalin kerjasama bersama Internastional Organization for Migration (IOM). Karena mengingat kasus tersebut merupakan kejahatan lintas negara yang terorganisasi yang tidak hanya terjadi didalam negara tetapi telah melintasi batas negara. IOM tidak hanya memenuhi kebutuhan bantuan yang berkaitan dengan fisik, namun juga menjamin dan memelihara lingkungan tempat tinggal yang terjamin kebersihan, keamanan hingga kenyamanan nya. Pemerintah Indonesia dan IOM sudah sama-sama melakukan upaya dalam menangani masalah perdagangan perempuan yang terjadi di Indonesia ke Timur Tengah tersebut, namun bukan berarti upaya tersebut menjamin akan berkurangnya masalah perdagangan orang yang terjadi di Indonesia.Kata Kunci: Indonesia, Perdagangan Orang, Internastional Organization for Migration (IOM), Timur Tengah. ABSTRACTThis research analyzes the role of the Indonesian government in dealing with the problem of trafficking of Indonesian women to the Middle East in 2016-2019. However, in the midst of the efforts made, in fact, the Indonesian government also needs an element of cooperation from an institution or organization, which is expected to be able to assist the government's efforts to overcome the problem of trafficking in women that occurs in Indonesia, one of the government's efforts is to collaborate with international partners. Organization for Migration (IOM). Because considering that the case is an organized transnational crime that does not only occur within the state but has crossed national bordersIOM not only meets physical assistance ...
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Analisis Relasional Hukum Negara dan Hukum Rakyat dalam Konflik Agraria Bongkoran, Kabupaten Banyuwangi, Jawa Timur, Indonesia ; A Relational Analysis of State Law and Folk Law in the Bongkoran Agrarian Conflicts, Banyuwangi Regency, East Java, Indonesia
Selain memiliki dimensi sosial ekonomi, konflik agraria di Bongkoran, Kabupaten Banyuwangi, Provinsi Jawa Timur, Indonesia, juga memiliki dimensi hukum. Terdapat dualisme hukum yang konfliktual dalam hal penguasaan tanah dan klaim penggunaan. Satu pihak, pemerintah, dan korporasi mengandalkan hukum negara yang legalistik-positivistik, sedangkan masyarakat lokal mengandalkan hukum rakyat yaitu hukum informal yang sudah ada, hidup, dan berkembang dalam masyarakat komunal secara turun-temurun. Penelitian ini berfokus pada bagaimana perspektif sosiologis hukum menganalisis konflik hukum yang terjadi dalam konflik agraria Bongkoran, khususnya antara hukum negara dan hukum rakyat. Penelitian ini menggunakan metode kualitatif dengan perspektif sosiologi hukum. Subjek penelitian adalah petani/masyarakat Bongkoran, Penasehat Hukum Masyarakat, Pemerintah (Pemerintah Daerah, Badan Pertanahan Nasional, dan Kepolisian), dan unsur korporasi (PT Wongsorejo). Informan dipilih dengan menggunakan teknik purposive sampling, berdasarkan pertimbangan tertentu yang dapat dikenali terlebih dahulu yaitu mengenali dan memahami masalah yang diteliti. Pengumpulan data dilakukan melalui observasi, wawancara mendalam, dan dokumentasi. Data yang terkumpul dianalisis secara kualitatif dengan mengacu pada perspektif yang telah disajikan. Hasil penelitian menunjukkan bahwa penyelesaian konflik agraria di Bongkoran memerlukan implementasi hukum yang lebih berkeadilan bagi masyarakat lokal. Implementasi hukum tidak hanya berdasarkan pasal-pasal yang rigid dalam undang-undang, tetapi perlu memperhatikan konteks sosial budaya dan historis dari masyarakat. Dominasi hukum negara atas hukum rakyat dalam konflik agraria mengakibatkan praktik penundukan hukum negara ke hukum rakyat, baik secara persuasif maupun represif. Oleh karena itu, untuk meminimalisir ketegangan dan konflik antara hukum negara dan hukum rakyat dalam konflik agraria, diperlukan pemahaman baru tentang hubungan kedua hukum tersebut. Keberadaan dan penegakan hukum rakyat dijadikan sebagai elemen yang saling melengkapi dalam aspek normatif yang belum diatur dalam hukum negara. ; Apart from having a socio-economic dimension, agrarian conflicts in Bongkoran, Banyuwangi Regency, East Java Province, Indonesia, also have a legal dimension. There is a dualism of law that is conflictual in terms of land tenure and use claims. One party, the government, and corporations rely on legalistic-positivistic state laws, while local people rely on folk law, namely informal laws that have existed, lived, and developed in communal society for generations. This research focuses on how the sociological perspective of law analyzes the legal conflicts that occur in Bongkoran agrarian conflict, particularly between state law and folk law. This research used a qualitative method with a legal sociology perspective. The research subjects were farmers/people of Bongkoran, Community Legal Advisors (CLA), Government (Local Government, National Land Agency, and Police), and corporate elements (PT Wongsorejo). Informants were selected using a purposive sampling technique, based on certain considerations that can be recognized beforehand, namely recognizing and understanding the problem under this research. Data collection was conducted through observation, in-depth interviews, and documentation. The collected data were analyzed qualitatively by referring to the perspectives that have been presented. The results indicated that the resolution of agrarian conflicts in Bongkoran requires the implementation of laws that are more just for local communities. The implementation of the laws is not only based on rigid articles in the law, but it needs attention to the socio-cultural and historical context of the community. The dominance of state law over folk law in agrarian conflicts results in the practice of subjugation of state law to folk law, both persuasively and repressively. Therefore, to minimize the tension and conflict between state law and folk law in agrarian conflicts, it is necessary to have a new understanding of the relationship between the two laws. The existence and enforcement of folk law are used as a complementary element in normative aspects that have not been regulated in state law.
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Response on New Credit Program In Indonesia: An Asymmetric Information Perspective
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.
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The Mediating Effect of Operational Performance on the Relationship of Entrepreneurship Toward Financial Performance. A case of Hand Drawn Batik Industry in East Java, Indonesia
Indonesia has been well known for it's beautiful batik. In fact UNESCO has been awarded batik Indonesia as a masterpiece of oral and intangible heritage of humanity. UNESCO insisted that Indonesia must preserve its heritage. Batik has been part of creative economy in Indonesia. Jawa Timur province had many batik industrial center spreaded in several city, such as Madura, Sidoarjo, Tuban, Tulungagung, etc. Batik, especially hand drawn batik company in Indonesia usually run by entrepreneur of small company. The success of financial performance in hand drawn batik industry was supposedly the result of entrepreneurship of batik company owner / manager, and good operational performance in their internal business process. This study focused on the mediating effect of operational performance on the relationship of entrepreneurship toward financial performance in batik hand drawn industry in East Java Province in Indonesia. This study used quantitative approach. The sample of this study was 111 small business batik company, and analyzed using Warp PLS. Result of the study showed that operational performance mediated the relatioship between entrepreneurship and financial performance. The result of this study contributed input to the policy maker in East Java Province government abot developing sustainable and successful batik industry to boost creative economic activity in East Java Province. This study also gave a contribution in management accounting area especialy about factor that giving impact to financial performance in batik industry.
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Developing Islamic Crowdfunding Website Platform for Startup Companies in Indonesia
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.
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Productivity And Poverty Rural Farm Plants: Case Study In Jawa Timur, Indonesia
This study discusses food crop agriculture in 29 districts in East Java, where many people are engaged in this field. This research defines two stages of equality. In this study using two model approaches, namely the first Model Analysis conducted using Data Envelopment Analysis (DEA) and the second model Partial least square (PLS). Research results Increasing agricultural productivity or efficiency is important to do with a variety of strategies both intensification and agricultural intensification.Improving the quality of rural community resources is very to be done. Good quality resources will increase the absorption of high technology and will increase the productivity of farmers and workers in other sectors in rural areas, the Government's budget for development must continue to be increased both in nominal terms and the accuracy of its allocation so that it is absorbed into rural communities effectively and efficiently so that it can improve the welfare of rural communities and controlling the price of basic necessities in the region is also important to do. Bank Indonesia and in collaboration with local governments to form a Regional Inflation Control Team (TPID) must work better in maintaining stable inflation because the rural poor are relatively vulnerable to price increases
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