scholarly journals Determinants of Political Stability to Support Foreign Investment in Indonesia

2021 ◽  
Vol 4 (2) ◽  
pp. 97-108
Author(s):  
Benny Budiawan Tjandrasa

What investors often consider before deciding to invest in various countries is the political situation. The risks faced by investors in the event of political instability are regulatory changes, legal disputes, forced takeovers of companies, disruption to regional stability, policies against acts of terrorism, and changes in state ideology. The purpose of this study is to find a determinant of political stability in Indonesia that will be useful for investors and multinational companies, and the government in maintaining political stability. Systematic secondary data sampling from January 2015 to December 2019 was used for explanatory study purposes and to build a model. This study concludes that the rule of law, control of corruption, and oil prices have a significant effect on political stability in Indonesia, while the inflation rate does not have a significant effect on political stability in Indonesia. The novelty of this research is the formation of a political stability model for Indonesia and why an increase in control of corruption actually has a negative effect on political stability in Indonesia.

2020 ◽  
Vol 15 (1) ◽  
pp. 55
Author(s):  
Ana Rahmawati Wibowo ◽  
Wiwin Indrayanti

This study aims to analyze the institutional variables of governance in ASEAN 7 developing countries. The independent variables consist of Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption, while shadow economy is dependent variable. The data used in this study are quantitative data and secondary data by using program Stata 14, the analysis technique used is multiple linear regression panel data. The results show that Voice and accountability has a negative and significant effect on the shadow economy as well as Political stability, Government effectiveness and Control of corruption on the other side. Regulatory quality has a positive and significant effect on the amount of shadow economy. Meanwhile, Rule of law no significant effect on the shadow economy. Underlying the results, the study arranges some policy to reduce negative effect of shadow economy.


2020 ◽  
Vol 4 (2) ◽  
pp. 165-182
Author(s):  
Aep soleh Soleh

This study investigates the impact of fuel price adjusment on changes in fuel consumption and inflation in Indonesia. This study uses secondary data obtained from the Ministry of Energy and Mineral Resources, the Ministry of Finance, the Ministry of Trade, Bank Indonesia, the Central Bureau of Statistics (BPS), and PT Pertamina (Persero) from 2006 to 2016 and analyzed by using Ordinary Least Square (OLS) method. Research showed, if the government increases Premium Gasoline's price by 10%, in average its consumption would decrease around 2,99 %. However, if the Pertamax Gasoline's price increases, the consumption of Premium Gasoline would also increase due to substitution effect. Every 10% increase in Subsidized Diesel's price, in average its consumption would decrease around 4,80 % and vice versa. However, if the Pertamina dex's price increases, the consumption of Subsidized Diesel would also increase due to substitution effect. Moreover, IDR1.000/L increase in Premium Gasoline's Price would contribute 1,10 % to the inflation rate. On the other hand, increase in Subsidized Diesel's price does not contribute to the inflation rate.


2016 ◽  
Vol 12 (1) ◽  
pp. 89-96
Author(s):  
Ari Mulianta Ginting

Inflation is one of the macroeconomic indicators of concern for the government. The high inflation rate could disrupt the economy. This study tried to analyze the factors that cause inflation in Indonesia. This study used a qualitative and quantitative approach using secondary data period 2004-2014. The results of the qualitative analysis showed that in the period 204-2014 inflation rate in Indonesia was fluctuated  While the results of the regression analysis VECM, indicating that the inflation rate in Indonesia is influenced by the variable of  exchange rate, money supply and level of consumption. While the GDP variable has a negative influence on inflation. In order to control the inflation rate the government could use macroeconomic variables such as exchange rates, the money supply well. Besides controlling public consumption at a good level and increase the production of goods and services to meet community needs.   Inflasi merupakan salah satu indikator ekonomi makro perhatian bagi pemerintah. Tingkat inflasi yang tinggi dapat mengganggu perekonomian. Penelitian ini mencoba untuk menganalisis faktor-faktor yang menyebabkan inflasi di Indonesia. Penelitian ini menggunakan pendekatan kualitatif dan kuantitatif dengan menggunakan periode data sekunder 2004-2014. Hasil analisis kualitatif menunjukkan bahwa tingkat inflasi periode 204-2014 di Indonesia berfluktuasi. Sementara hasil VECM menunjukkan bahwa tingkat inflasi di Indonesia dipengaruhi oleh variabel nilai tukar, uang beredar dan tingkat konsumsi. Sementara itu variabel GDP memiliki pengaruh negatif pada inflasi. Untuk mengendalikan tingkat inflasi pemerintah dapat menggunakan variabel ekonomi makro seperti nilai tukar, uang memasok baik. Selain mengendalikan konsumsi masyarakat pada tingkat yang baik dan meningkatkan produksi barang dan jasa untuk memenuhi kebutuhan masyarakat.


Jurnal Ecogen ◽  
2018 ◽  
Vol 1 (4) ◽  
pp. 162
Author(s):  
Syurifto Prawira

This study aims to analyze the effect of economic growth, provincial minimum wage, and education level on open unemployment rate in Indonesia in 2011-2015, either simultaneously or partially. Using panel data with Fixed Efect Model (FEM) approach and using secondary data of 33 provinces in Indonesia. The model estimation results show that the variable of economic growth, provincial minimum wage, and education level simultaneously have significant effect on open unemployment rate in Indonesia. While the partial variable of economic growth has a negative effect but no significant effect on the unemployment rate. The provincial minimum wage variable is partially positive and significant to the unemployment rate. The variable of educational level also have positive and significant effect to unemployment rate. The government is expected to pay serious attention to economic growth, minimum wage system, improving the quality of education, the issue of availability of employment opportunities. Keyword: Economic Growth, Wage, Education, and Unemployment


2018 ◽  
Vol 8 (2) ◽  
Author(s):  
Lusia Handayani ◽  
Munawar K. Nahrawi

<p>Food is the fundamental right of every human being. Communities or nations that are not satisfied with food sufficiency will have the potential to cause economic instability and even to bring down a government. Dependence on rice as a staple food can threaten economic and political stability when food is not adequately covered. One alternative that can be made to avoid the threat is to switch to other carbohydrates-based foods that grow in Indonesia, including sweet potato, cassava, arrowroot, and ganyong. However, those local food variety is still considered as second-class food, due to the persistence to rice-eating culture. Therefore, there is a necessity to create a local food campaign on internet media. The Internet is now growing into a medium capable to reach all kinds of people in a quick and precise manner. This descriptive study uses secondary data such as books and journals related to state defense and food security. The study finds that the use of internet as a medium for local food campaign to the community has not been implemented optimally, both by the government and non-government. In line with the rapid development of the internet and the importance of defending the country in all aspects, local food campaigns through internet media require the participation of all stakeholders.</p><p align="left"> </p><strong>Keywords</strong>: defending of the state, local food campaign, internet


2020 ◽  
Vol 27 (1) ◽  
pp. 104-118
Author(s):  
Abdinur Abdirisak Sofe

Purpose Corruption in humanitarian aid is one of the most worried and worst problems around the world. The existence of corruption acts in humanitarian aid delivery can endanger the already susceptible lives of the neediest individuals in the community. Amid serious humanitarian allegation in the country, this study aims to capture meaningful insights in humanitarian aid corruption in Puntland State of Somalia. Design/methodology/approach The study applied qualitative method and used interview as a technique of data collection. The information obtained through the interview was analyzed by quoting and narration forms. Findings The findings indicated numerous acts of corruption in all project stages including corruption in project granting and humanitarian staff employment, distortion of project targets and diversion of humanitarian project from targeted communities. The research also found that governmental and non-governmental actors are involved in the humanitarian corruption such as project managers and support staffs in addition to line ministries, parliament and community representatives. Research limitations/implications Corruption is a taboo and is difficult to research; people do not want to share the information for fear of victimization. Concerned institutions were not willing to provide necessary materials which led to shortage of secondary data. Another problem encountered during the study has been that the humanitarian stakeholders (for instance, government, non-government and private institutions) acted reluctantly to cooperate because of suspicion that disclosing information may lead to negative effect on their business. To overcome the challenges, the study assured the confidentiality of the members and that information collected would be used for research purposes only. The study further combined various tools of data collection so that the weakness of one tool becomes the strength of the other; while the researcher made efforts to build rapport with the research participants. Originality/value This study will contribute to the literature on corruption in the humanitarian aid. Specifically, the findings of this study will benefit academicians/researchers by giving empirical insights of corruption in the humanitarian aid in Puntland. It will benefit the government policymakers in the formulation of policies to combat corruption in the sector. Donors and aid agencies may also find the findings useful as they are key stakeholders who are interested in corruption in the humanitarian sector and finally the findings will benefit the wider society that is the primary victim of corruption in the humanitarian sector.


2020 ◽  
Vol 25 (1) ◽  
pp. 96-114
Author(s):  
Dinda Ayu Dizrisa ◽  
Sudrajat Sudrajat ◽  
Niken Kusumawardani

Corruption is a complex social, political and economic problem and occurs in every country with different levels. Corruption will complicate democracy and governance of a country. To overcome the problem of corruption, the government must implement good governance. This study aims to provide empirical evidence regarding the effect of elements of good governance on the level of corruption in Southeast Asia. Good governance variables are presented by six variables: voice and accountability, political stability and absence of violence / terrorism, government effectiveness, regulatory quality, rule of law and control of corruption. Meanwhile, the level of corruption is measured using the Corruption Perceptions Index (CPI). The research sample was selected using the purposive sampling method and produced a sample of 8 countries and the observation period was carried out in 2009-2018 or as many as 10 years, so the number of samples in this study were 80 samples. Corruption level data used in this study uses the Corruption Perceptions Index (Transparency International), while the good governance data used in this study uses the Worldwide Governance Indicators (World Bank). The research methodology used in this study is multiple linear regression analysis with the IBM SPSS Statistics 24 program. The results showed that the variable voice and accountability, political stability and absence of violence / terrorism, and rule of law had no effect on the level of corruption, whereas the government variable effectiveness, regulatory quality, and control of corruption affect the level of corruption.


Author(s):  
Merri Anitasari ◽  
Ahmad Soleh

Merri Anitasari, Ahmad Soleh; Pengaruh Pengeluaran Pemerintah Terhadap Pertumbuhan Ekonomi Di Provinsi Bengkulu. Tujuan dari penelitian ini adalah untuk menganalisis pengaruh dari pengeluaran pemerintah terhadap pertumbuhan ekonomi di provinsi Bengkulu dengan menggunakan data sekunder periode pengamatan tahun 2001-2012 yang diperoleh dari Badan Pusat Statistik. Hasil analisis dengan menggunakan SPSS 16 menunjukkan bahwa pengeluaran pemerintah berpengaruh positif dan signifikan terhadap pertumbuhan ekonomi di provinsi Bengkulu. Jika pemerintah menaikkan pengeluaran pemerintah sebesar 1 miliar rupiah, maka akan dapat meningkatkan pertumbuhan ekonomi sebesar 1,17 % per tahun. Sedangkan pengaruh pengeluaran pemerintah terhadap pertumbuhan ekonomi di daerah kabupaten/kota menunjukkan bahwa dari jumlah 10 kabupaten/kota di Provinsi Bengkulu, kabupaten Rejang Lebong dan kota Bengkulu yang memiliki hasil bahwa pengeluaran pemerintah berpengaruh positif dan signifikan terhadap pertumbuhan ekonomi di daerahnya. Kabupaten Bengkulu Utara memiliki pengaruh yang negatif sedangkan 7 kabupaten lainnya memiliki hasil yang positif namun tidak signifikan. Sebagian besar kabupaten di Provinsi Bengkulu dikategorikan sebagai daerah yang baru membangun yang merupakan hasil pemekaran pasca pemberlakuan otonomi daerah. Sehingga dalam jangka pendek pengeluaran pemerintah dianggap belum mampu menstimulus kegiatan sektor-sektor perekonomian serta memacu pertumbuhan ekonomi di daerah tersebut.Merri Anitasari, Ahmad Soleh; Impact of Government Spending on Economic Growth In Bengkulu Province. The purpose of this study was to analyze the impact of government spending on economic growth in the province of Bengkulu using secondary data observation period 2001 - 2012 year were obtained from the Central Bureau of Statistics. Results of analysis using SPSS 16 shows that government spending and significant positive effect on economic growth in the province ofBengkulu. If the government raised government spending by 1 billion dollars, it will be able to boost economic growth by 1.17% per year. While the effect of government spending on economic growth in the district/city showed that of a total of 10 districts cities in Bengkulu province, Rejang Lebong district and Bengkulu City which has the result that government spending and significant positive effect on economic growth in the region. North Bengkulu has a negative effect, while seven other districts have a positive outcome, but not significantly. Most districts in the province of Bengkulu categorized as new building is the result of the division after the implementation of regional autonomy. So in the short-term government spending is considered not able to stimulate activity sectors of the economy and spur economic growth in the area.Key Word: Government Spending, Economic Growth, Bengkulu Province


2020 ◽  
Vol 1 (3) ◽  
pp. 14-20
Author(s):  
Shamaila Amir ◽  
Fayyaz Ahmad

The paper attempts to study constitutional development in Pakistan in relation to the political instability or stability of the country. Analysis of the secondary data qualitatively revealed that the country suffered much due to political instability which was a result of the non-development and non-availability of the constitution. As the constitution provides a set of rules for people of a state who agree to live together and it is the basic set of principles through which a state is governed, the newly established state of Pakistan initially adopted the 1935 India Act to run the affairs. The process to frame a fresh constitution started after the transitory of Objectives Resolution in 1949 while Islamic and democratic values were considered as foundations to formulate a constitution for Pakistan. Three constitutions in 1956, 1962, and 1973 were framed in order to maintain political stability and to govern the state. Pakistan in its 72 years of age was governed by 49 Heads of State or Heads of Department including five military dictators (Naz, 2019). Only during the early eleven years, twelve Heads of State or Heads of Departments administered the oath to run the government. Two Prime Ministers were assassinated and one was hanged while two sitting Prime Ministers were declared disqualified by the court. East Pakistan was separated due to political instability and eight times constitutional assemblies were dissolved (Obaidullah, 2020). Several times, the Constitutions were abrogated or suspended and federalism was lacking in the country that also resulted in political instability. It is only since the last decade, political stability is emerging due to prevailing, implementing, development, and intactness of the Constitution.


2017 ◽  
Vol 15 (2) ◽  
pp. 129
Author(s):  
Naylal Fithri ◽  
David Kaluge

Poverty is a complex issue because it relates to the inability of access to economic, social, cultural, political and participation in society became one assessment of the success of the government's performance. This study aims to determine the effect of government spending for education and health sector to poverty. The data used is secondary data with regression models panel.Hasil mneguunakan Research shows that the effect of government spending education sector and no significant negative effect on poverty. Government spending in the health sector and no significant positive effect on poverty. This is because the government is less effective in reducing the number of people living below the poverty line, this is evidenced by the tendency of increase in the number of poor people from time to time. 


Sign in / Sign up

Export Citation Format

Share Document