Towards Reviewing an Immediate Impact of COVID-19 on the integrative world economy- An Evolving perspective

The coronavirus (CoV) belongs to Severe Acute Respiratory Syndrome (SARS) species that lead to infection, causing illness, starting from common cold to some serious sickness. Finally, on 11 March 2020, the WHO Director-General Dr. Tedros Adhanom Ghebreyesus announced the outbreak as a pandemic. As the fear and ambiguity rose among companies and firms, the profit rate seemed to be lower due to the Covid-19 global impact, say nearly US$6 trillion in wealth from 24th to 28 February 2020 of the stock market has been wiped out. There was a great decrease in value over the S&P index, which abolished over $5 trillion in the same week. However, the largest ten companies of S&P faced a loss of $1.4 trillion. The investors make an analytical prediction that firms' profits may drop in response to the impact of coronavirus. Our prime focus is on the importance of digital business practices and how different sectors have been affected in terms of economic loss during this pandemic outbreak in this paper.

Towards Reviewing an Immediate Impact of COVID-19 on the Integrative World Economy

The coronavirus (CoV) belongs to Severe Acute Respiratory Syndrome (SARS) species that lead to infection, causing illness, starting from common cold to some serious sickness. Finally, on 11 March 2020, the WHO Director-General Dr. Tedros Adhanom Ghebreyesus announced the outbreak as a pandemic. As the fear and ambiguity rose among companies and firms, the profit rate seemed to be lower due to the Covid-19 global impact, say nearly US$6 trillion in wealth from 24th to 28 February 2020 of the stock market has been wiped out. There was a great decrease in value over the S&P index, which abolished over $5 trillion in the same week. However, the largest ten companies of S&P faced a loss of $1.4 trillion. The investors make an analytical prediction that firms' profits may drop in response to the impact of coronavirus. Our prime focus is on the importance of digital business practices and how different sectors have been affected in terms of economic loss during this pandemic outbreak in this paper.

Towards Reviewing an Immediate Impact of COVID-19 on the Integrative World Economy

The coronavirus (CoV) belongs to Severe Acute Respiratory Syndrome (SARS) species that lead to infection, causing illness, starting from common cold to some serious sickness. Finally, on 11 March 2020, the WHO Director-General Dr. Tedros Adhanom Ghebreyesus announced the outbreak as a pandemic. As the fear and ambiguity rose among companies and firms, the profit rate seemed to be lower due to the Covid-19 global impact, say nearly US$6 trillion in wealth from 24th to 28 February 2020 of the stock market has been wiped out. There was a great decrease in value over the S&P index, which abolished over $5 trillion in the same week. However, the largest ten companies of S&P faced a loss of $1.4 trillion. The investors make an analytical prediction that firms' profits may drop in response to the impact of coronavirus. Our prime focus is on the importance of digital business practices and how different sectors have been affected in terms of economic loss during this pandemic outbreak in this paper.

ANALISIS NILAI TAMBAH GULA KELAPA DI DESA SIALANG JAYA KECAMATAN BATANG TUAKA KABUPATEN INDRAGIRI HILIR

Coconut sugar processing is one of the agro-industry businesses that is developing in Sialang Jaya Village, Batang Tuaka District, Indragiri Hilir Regency. This business aims to obtain added value from coconut plants. The purpose of this study was to determine the amount of revenue and profits from the coconut sugar processing business and the added value of the coconut sugar processing business in Sialang Jaya Village, Batang Tuaka District, Indragiri Hilir Regency. Analysis of the data used is the analysis of costs, revenues, profits and added value. The results of this study indicate that: (1) The average total cost of the coconut sugar processing business is Rp. 67,351.97 per production, the average revenue is Rp. 202,800.00 per production, the average profit is Rp. 135,448.03 per production. (2) The added value obtained in the coconut sugar processing business is Rp. 4,672.76. The added value ratio obtained is 83.87%. The profit from processing coconut sugar is Rp. 3,024.41 per kg with a profit rate of 64.72%.

Qualitative Study in Identifying Factors Affecting the Behavior of Muslim Generation Y Towards Islamic Home Financing Products in Malaysia

House is the most important basic need for the human survival, however many individuals especially those who are categorised in the category of generation Y still do not acquire a house due to various factors. It is quite a normal practice for most of home-buyers in Malaysia to purchase a house through banking institutions. However, as a Muslim, it is an obligation to purchase and acquire a house through Islamic financial institutions (IFIs) as it is accordance to the Shariah principle. The objective of the study is to qualitatively identify factors affecting the behavior of Muslims generation Y in Malaysia towards Islamic home financing products. Apparently, it is found that religious belief, profit rate, offer and promotion, and fast service (loan approval) are factors in affecting Muslims generation Y in choosing Islamic home financing products. Afterwards, the study proposed to integrate the findings (identified factors) with the theory of Attitude-Behavior-Context (ABC). The study findings are expected to contribute significantly to the theory, methodology, and empirical practices.

Production structure, income distribution and macroeconomic efficiency: an analysis framework and empirical study of the Marxist political economy

PurposeIn the current literature, there is little systematic research on the relationship among adjustment of the income distribution, change in economic structure and improvement of macroeconomic efficiency.Design/methodology/approachThis paper expands Marx's reproduction schema into the “Marx–Sraffa” three-department structure table comprising fixed capital, general means of production and means of consumption and employs China's input–output table from 1987 to 2015 to portray the relationship between income distribution and macroeconomic efficiency under investment-driven growth.FindingsThis paper calculates the wage–profit curve of China's economy and evaluates the space of macroeconomic efficiency improvement in China based on the deviation between actual and potential income distribution structure.Originality/valueThe results show that there is a downward trend of the profit rate, which meets Marx's theoretical prediction, and the decline in the profit rate is mainly attributed to an increase in the organic composition of capital arising from the rapid growth of fixed capital investment under extended growth. The analysis of macroeconomic efficiency shows that the space for improving macroeconomic efficiency is extremely limited under traditional growth pattern and that China must transform its economic development pattern and foster new economic growth drivers.

Analysis of Tawarruq contract in the Islamic profit rate swap (IPRS) implementation in Malaysia

Purpose This study aims to analyse the Shariah issues in the implementation of tawarruq contract in the Islamic profit rate swap (IPRS) instrument in Malaysia. Design/methodology/approach This is a qualitative study in applying data analysis and semi-structured interview approaches. Data was collected from various documents including journals, articles and past studies conducted by scholars. To achieve the purpose of this study, the data is analysed based on thematic analysis. Findings The study found several Shariah issues regarding the implementation of tawarruq contract in the IPRS instruments, which have remained a dispute amongst the Islamic financial scholars such as its profit-making purpose, encouragement of debt, impediment of shared risk concept, disputed underlying assets, a deception towards allowing riba and dual agency. Research limitations/implications This study recommends several improvements such as the establishment of a neutral agency that does not represent any banking institution to manage the tawarruq contract commodity purchase from Bursa Suq al-Sila’ (BSAS). In addition, a neutral agency can provide aid in terms of transaction facility or at least consultation service for clients to enable them to conduct the commodity transactions independently. Practical implications Moreover, guidelines should be established on the separation of the deadline to sign the agreement of appointment of a bank as the commodity purchase agent and the agreement of appointment of the bank as the commodity sale agent on behalf of clients. All transactions related to tawarruq contract commodity must be done through BSAS. The regulators and industry experts may create a guideline for the IPRS based on the issues and recommendations that have been discussed in this study. Originality/value On the basis of the analysis of the criticisms and issues in the implementation of tawarruq contract in the IPRS instrument, the current study found that an intermediating institution is allowed to gain profits from transactions conducted so long as they are based on Shariah principles of contract in Islam. As there is no parameter specifically for IPRS, thus the suggested parameter can be used by policymakers such as the Central Bank of Malaysia to ensure the industry complies with Shariah principles.

Analisis Struktur Modal dan Laba pada Perusahaan Umum Air Minum Daerah (Perumda) Tirta Mangkaluku Kota Palopo Tahun 2016 - 2020

AbstrakStruktur modal dikatakan optimal bilamana dapat meminimumkan biaya modal rata-rata tertimbang (Weighted Avarage Cost of Capital) dan memaksimumkan Return On Equity (ROE). Disamping itu akan tergambar apakah struktur modal tersebut menghasilkan Lavarage yang positif yaitu suatu kondisi dimana Rentabilitas Ekonomi lebih besar dari biaya modal rata-rata tertimbang. Penelitian yang dilakukan pada Perusahaan Umum Air Minum Daerah Tirta Mangkaluku Kota Palopo untuk menganalisis pengaruh struktur modal terhadap biaya modal yang ditimbulkan, menganalisis berapa besar proporsi modal pinjaman jangka panjang pada beberapa alternatif struktur modal (2016 – 2020) dan menganalisis tingkat laba yang diperoleh perusahaan pada setiap alternatif struktur modal tersebut. Hasil penelitian menunjukkan bahwa struktur modal pada perusahaan ini khususnya tahun 2019 dan 2020, sudah optimal dimana Return On Equity (ROE) setelah hutang jangka panjang adalah 1,45% (2019) dan 1,60% (2020) yang lebih besar dari biaya modal rata-rata tertimbang yaitu 0,50% (2019) dan 0,37% (2020). Selain hal diatas, Struktur modal tersebut juga telah menghasilkan Leverage positif dimana secara rata-rata Rentabilitas Ekonomi diangka 1,52% jauh lebih besar dari rata-rata biaya modal rata-rata tertimbang yaitu sebesar 0,60%. Dengan mempertahankan komposisi struktur modal yang ada atau mengembangkan pada komposisi yang lebih baik, maka semakin menjamin kontribusi dari laba Perusahaan Umum Air Minum Daerah Tirta Mangkaluku kepada Pendapatan Asli Daerah (PAD) kota Palopo. Kata Kunci : Biaya Modal, Kinerja Keuangan, Struktur ModalAbstractThe optimization of capital Structure can happen if there's a condition where the Weighted Average Cost of Capital can be minimized and the Return of Equity (ROE) is maximized. The result will tell whether the capital structure can bring out the positive leverage or not. The positive leverage is a condition where economic rentability is bigger than the Weighted Average Cost of Capital. The purpose of the research on Mangkaluku Municipal Waterwork in Palopo City are to analyze the impact of capital structure toward the capital cost, to analyze the proportion of long-term capital loan on some alternatives of capital structure from 2016 to 2020 and to analyze the profit rate that is gained by the company on those alternatives of capital structure. The result of this study is showing that the capital structure rate of this company, especially in 2019 until 2020 shows the optimization of Return of equity (ROE) in this company after the long-term debt. The Return of Equity (ROE) in 2019 and 2020 reached 1,45% and 1,60%. The number is bigger than the Weighted Average Cost of Capital as much of 0,50% in 2019 and 0,37% in 2020. Besides, that structure modal has resulted in positive levarage, where the average of economic rentability is 1,52%, which is 0,60% bigger than the Weighted Average Cost of Capital. By maintaining the existing modal structure composition or to develop the better composition, it will secure the profit contribution in the company of Mangkaluku Municipal Waterpark toward the locally-generated revenue of Palopo City. Keyword: Capital Structure Analisys, Cost of Capital, Financial Performance

ANALISIS NILAI TAMBAH BERBAGAI PRODUK OLAHAN INDUSTRI RUMAH TANGGA BERBASIS BAHAN BAKU UBI KAYU DI KECAMATAN GERUNG KABUPATEN LOMBOK BARAT

This study aims to: (1) analyze the added value of processing business based on cassava raw material in Gerung District, West Lombok Regency, (2) analyze the benefit of processing business based on cassava raw material in Gerung District, West Lombok Regency, and (3) analyze the inhibiting factors of processing business based on cassava raw materials in Gerung District, West Lombok Regency. This research uses a descriptive method. The types of data used are quantitative and qualitative data. Sources of data used are primary data and secondary data. Data analysis using Hayami Method and profit analysis. The results showed that the added value was Rp. 9.571/kg (with a ratio of 67.79% and a profit rate of 80.33%) for cassava tape agroindustry, Rp. 18,191/kg (with a ratio of 71.34% and a profit rate of 88.20%) for cassava chips agroindustry, and Rp. 5.558/kg (with a ratio of 28% and a profit rate of 64.02%) for cassava pulp agroindustry. Profit of Rp. 384,782/production process and Rp. 10,389,114/month obtained from cassava tape agroindustry, Rp. 741,224/production process and Rp. 8,894,688/month obtained from cassava chips agroindustry, and Rp. 53,377/production process and Rp. 1,281,048/month obtained from cassava pulp agroindustry; and The inhibiting factors faced by processed entrepreneurs based on cassava raw materials in Gerung District, West Lombok Regency are the lack of raw material availability and limited working capital.