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EXPLORING THE ROLE OF INVESTMENT IN DRIVING ECONOMIC GROWTH: A CASE STUDY OF THE BANGKA BELITUNG ISLANDS

The economic growth of a region is significantly influenced by various factors, among which investment and consumption are considered pivotal. Despite the considerable focus on these aspects in existing literature, there is a noticeable gap in understanding their impact, particularly in the context of Indonesia's Bangka Belitung Islands. This research aims to fill this gap by empirically investigating the multiplier effect of investment on economic growth in this region. By employing the Random Effect Model (REM) on logarithmically transformed data, the study attempts to offer nuanced insights into the relationship between consumption, investment, labor, and economic growth. The findings and their implications are expected to guide policy decisions and stimulate balanced and inclusive economic growth across Indonesia. The findings diverge from certain previous studies that found no significant relationship between investment and economic growth, particularly in regions outside Java. These discrepancies could be attributed to variations in data sources, temporal spans, and methodologies employed across these studies. Additionally, the research underscores the critical role of infrastructure in regional economic growth, echoing the emphasis found in the extant literature. In conclusion, the study reinforces the importance of Consumption and Investment in driving economic growth in the Bangka Belitung Islands. It further urges policymakers to prioritize balanced investment and infrastructure development, especially in regions beyond Java, to encourage more equitable economic growth across Indonesia.

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Case Analysis: FGV Holdings Berhad

This empirical study is pursued with the objective to examine the evolution of FELDA since its establishment in 1956 until the listing of its investment holding company, FGV Holdings Berhad, at Bursa Malaysia in 2012. Due to the poor financial performance of FGV, Felda has no choice but to take it out from Bursa Malaysia. From the literature review, the FGV company is one of the biggest producers of crude palm oil (CPO) in the world, contributing about 15% of Malaysia’s total annual production of CPO over the past ten years. FGV company operates in 9 countries throughout Asia, the Middle East, North America and Europe. Backed by a powerful workforce of more than 45,000 employees, FGV is indeed a multinational company. The main business focus of FGV has been on three key industry sectors - plantation, sugar, and logistics. FGV Holdings Berhad holds one important vision which is “To be among the world’s leading, integrated and sustainable agribusiness that delivers value to customers and stakeholders especially the smallholders”. However, the poor performance of FGV over the past five years has raised some concerns among its shareholders and stakeholders. FGV is supposed to focus on creating value through human capital development, the embodiment of governance and compliance, building an integrated value chain advantage, and lastly cultivating diversification in commodities and geography. Overall, Felda understands the importance of FGV in nation building and this major shareholder is very concerned about value of partnership, integrity, dynamism, and sustainability because these are the critical factors for entrepreneurial success in the long run.

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Pengaruh Informasi Asimetris terhadap Penciptaan Senjangan Anggaran dengan Faktor-faktor Person-Situation Interactionist sebagai Variabel Pemoderasi (Studi pada Organisasi Perangkat Daerah Kabupaten Banyumas)

This research is an explanatory and correlational study using survey method on heads of division in Regional Organizations of Banyumas Regency. This research aims to find out the effect of asymmetric information on the creation of budgetary slack and the effect of ethical factors expressed by person-situation interactionist factors on that relationship. The research population are all Regional Organizations of Banyumas Regency. The sampling method used is judgment sampling and it obtains 25 regional organizations. There are 4 heads of divisions from each regional organization who become the respondents.Based on the research result and data analysis using moderated regression analysis, it concludes: Asymmetric information can increase the creation of budgetary slack; (2) Ethical ideology does not moderate the effect of asymmetric information on the creation of budgetary slack; (3) Machiavellian character does not moderate the effect of asymmetric information on the creation of budgetary slack; (4) Locus of control does not moderate the effect of asymmetric information on the creation of budgetary slack; (5) Moral intensity does not moderate the effect of asymmetric information on the creation of budgetary slack; and (6) Organizational ethical climate does not moderate the effect of asymmetric information on the creation of budgetary slack.

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