The Effect of Government Expenditure on Economic Growth in Indonesia

This study aims to examine and analyze the effect of economic growth classified as personnel expenditure, material expenditure, capital expenditure, interest payments, subsidies and social expenditure in Indonesia. The data in this study are time series data from 2005 to 2019. The hypothesis test uses the multiple linear regression method with SPSS 26. The results of testing government expenditure variables during the period 2005 to 2019 shows that components of central government expenditure include personnel, material, capital, interest payments, subsidies and social expenditure have a significant effect simultaneously on economic growth. There is a significant positive effect on the relationship between the variable personnel expenditure and material expenditure on economic growth. There is a significant negative effect on the relationship between the variable capital expenditure on economic growth. The other three variables, which include debt interest payments, subsidies and social expenditure, do not have a significant effect on economic growth.

Measurement of Return on Asset (ROA) based on Comprehensive Income and its Ability to Predict Investment Returns: an Empirical Evidence on Go Public Companies in Indonesia before and during the Covid-19 Pandemic

Purpose - The concept of recognizing all inclusive income, which is used by IFRS and Indonesian SAK, is the basis for presenting other comprehensive income in the income statement. This change in format became the idea of developing a financial performance measurement.Methodology - Testing the effect of attributable comprehensive income ROA and attributable ROA net income on future cash flows and net income, as a proxy for the ability to provide future returns, and applying them in measuring performance before and during the Covid-19 pandemic.Findings - ROA net income is better able to predict future investment returns. ROA comprehensive income has more relevance value, when only other items of comprehensive income that have the potential to be realized are included. In assessing performance, users are advised to keep using the ROA of the net income version, and when using the ROA of the comprehensive income version, it is advisable to include only OCI which will be reclassified. The financial performance of companies in many industrial sectors experienced a decline during the Covid 19 pandemic using two ROA measures.Novelty - Development of ROA formulation by including other comprehensive income and profit attribution, so far ROA is only based on net income.

Foreign Direct Investment Spillovers and Economic Growth: Evidence from Asian Emerging Countries

Research on FDI in promoting economic growth has been the focus of recent decades, especially in developing countries. Foreign direct investment can be one of the main objectives in increasing economic growth. FDI is assumed to indirectly contribute to economic growth through a spillover effect on the absorption capacity of a country by increasing the stock of human capital and the quality of institutions. This study aims to analyze the spillover effect of FDI on economic growth in Asian emerging markets. The data were analyzed using dynamic panel regression (GMM) during 2008-2017 period with STATA 14 software.The results in this study strongly indicate that the spillovers of FDI is proven to be able to drive economic growth through human capital and institutions in Asian emerging markets.

Finding the Characteristics of Creative People in Developing Villages for the Foundation of Creative Industry

Every element of the community in the village should participate to optimize the potency that the village has. The village in Kuala Betara sub-district have marine resources, agriculture and plantation. Even with all of that benefit, if there is no support from creative human resources, it must be difficult for the village to create creative industry. Small and medium industry entrepreneurs have been utilizing the natural wealth of the village as the raw material of their production but they face obstacles in managing it due to their limited skills that are acquired self-taught and passed on from generation to generation, limited capital, unsophisticated production and packaging tools, limited market access due to limited production and the market is conventional only, including being not optimal in involving youth who are better in information technology. Meanwhile, the information about creative products can be easily obtained through internet. In addition, the youth also have not optimized the usage of internet as the media to collect creative ideas that will be useful in developing products of small and medium industry in the village. Besides, this industry can be a platform for youth to increase the quality through creativity. The method used in this research is survey with descriptive analysis. The result shows that the creativity of small and medium industry entrepreneurs and youth is in average level. Started from the main characteristics of creative people, possible characteristic of creative people, and side characteristic of creative people. . Even so, it is found that there are three entrepreneurs of small and medium industry and 42 youth who are belong to high level of creative people. These kind of people are the main and valuable assets to collaborate and becoming the foundation of creative industry in village.

Wakif's Behavior in Money Waqf: an Approach to Theory of Planned Behavior

The Indonesian nation is a country where the development of productive waqf is very potential, but the collection of productive waqf funds, especially cash waqf, has not been optimal. This is thought to be the behavior of the muslim community that does not understand well the development of cash waqf. Based on this phenomenon, this research was conducted to find empirical evidence of the Theory of Planned Behavior and religiosity in influencing the behavior of Muslim communities to conduct cash waqf in Indonesia. This study used a quantitative descriptive approach, data collection was carried out online using the google form facility, and data collected were 138 respondents to the questionnaire that had been distributed online. The results of this study found that attitudes, subjective norms, and values of religiosity were able to influence waqf behavior in making decisions to do cash waqf.

Study Phenomenology Evaluation Joint Operation - Non Separate Vehicle using Profit Sharing Method in Expedition Companies

The Sriwijaya Air airline is collaborating with five strategic partners under the auspices of Garuda Indonesia. This was realized in the form of a joint operation carried out by PT Citilink Indonesia with PT Sriwijaya Air and PT NAM Air where the collaboration ended on 31 October 2019 and left a trail of debts and debts. The importance of paying more serious attention to the treatment and process of operational cooperation (Joint Operations), in order to realize good corporate governance from the process of inquiry in the implementation of a merger or acquisition which is referred to as due diligence. In this study, researchers used a qualitative phenomenological approach. Phenomenology is an approach that focuses more on the concept of a particular phenomenon and the form of the study is to see and understand the meaning of an experience related to a particular phenomenon. The two companies are cooperating in Non-Administrative joint operation or there are no separate business entities from the two companies. In practice, the joint operation organizes its own special bookkeeping. Project Owner Bill submitted and agreed by each member of the joint operation, for Commercial Invoice, Tax Invoice, and proof of income tax article 23 to be on behalf of the company of the party organizing the joint operation bookkeeping. Along with the fulfillment of its VAT obligations, it is the responsibility of the party organizing the joint operation books.

Does Foreign Debt have an Impact on Indonesia's Foreign Exchange Reserves?

Indonesia as one of the emerging market countries’ utilization of external resources of foreign debt to a boost in increasing economic growth in addition to international trade that supports accelerated growth Economy. Using time-series data of the period 1988-2017 and using the simultaneous approach of Two-Stage Least Square (TSLS), the research results find out and showed that the foreign debt and reserves have a two-way relationship. The study findings that macroeconomic variables of significant investment affect foreign debt and consumption expenditures significantly affect foreign exchange reserves. It as a basic contributor to monetary policymaking by the government in reducing foreign debt by utilizing investment in sustainable economic development and improving the performance of international trade net exports as well as public consumption expenditures thus supporting the acceleration in increasing foreign exchange reserves.

The Impact on Economic and Environmental Development of COVID-19 Pandemic: a Case Study in Indonesia

The goal of this analysis is to examine in greater detail the effect of the COVID-19 pandemic on economic development and the quality of the atmosphere in Indonesia. This report uses secondary data as the primary source, obtained using a secondary data collection method from many different organizations. Different government policies and measures to discourage the escalation of the transmission of the Coronavirus, one of which is large-scale social restrictions (PSBB). However, before Indonesia suffered a recession, the PSBB actually became a barrier to economic development. As a part of this program, the rise in environmental efficiency is another positive effect because traffic that generates emissions and vast manufacturing sectors that create dirty waste is temporarily halted. Based on the findings of the review, this report notes that there is a detrimental effect of COVID-19 on economic development in Indonesia. However, because of the introduction of PSBB, Indonesia's air quality has improved. This report is intended to serve as a reference and assessment of the effects of COVID-19 on the economy and the atmosphere for stakeholders and the general public. In order to allow the government to consider measures that will deter the spread of the coronavirus and restore the economy without damaging improved air quality.

Externalities of Waste Dis-amenities, Benefit Transfer Application on Piyungan and Putri Cempo Landfill, Indonesia

Waste is a national problem in Indonesia. It is related to the old paradigm of waste management, which is only collected, transported, and disposed to the landfill. The same problem occurs in some big cities in Java. Landfills use open dumps, and that causes an increase in negative externalities in the quality of the environment for people who live nearby. This study aims to analyze the externalities of the Piyungan landfill. The objects of this research are the people who lived around the dump. Cost of illness and replacement cost are analysis tools to calculate the externalities. Benefit transfer is used to analyze the externalities ofthe Putri Cempo landfill in Surakarta. The benefit transfer method was developed as an alternative way to value externalities using values from studies of similar circumstances, carried out at related sites somewhere else, given the challenges and high costs inherent in assessing the actual price. Accurately, to test the performance of the benefit transfer method, this study focused on estimates of externalities associated with waste dis-amenities. The results indicate that the existence of the Piyungan landfill has a negative influence on the economic and social aspects as well as the environment of the people around it. It also happens in the Putri Cempo Landfill.

Poverty Reduction through Local Financial Performance: Case Study in East Nusa Tenggara Province, Indonesia

The high level of poverty in East Nusa Tenggara Province, Indonesia, requires effort to be alleviated. For instance, there is a need to enhance the financial management performance of the locals. Therefore this study analyzes the contribution of local financial performance to the poverty rate. It uses panel data regression analysis involving 22 regencies and municipalities from 2015 to 2018. The results of the study showed that the local financial independency ratio in various regencies and municipalities has fewer contributions to the poverty rate. Local governments need to increase regional fiscal capacity integrated with efforts to improve regional macroeconomic performance. Moreover, they should increase alignments toward poverty alleviation programs as well as the capacity of regional apparatus.