Household consumption, which has changed due to the COVID-19 pandemic, can survive by using their wealth to restore consumption levels. The current research analyzes the impact of the COVID-19 pandemic and the role of wealth in household consumption in Java, which has the largest share of the economy. Using panel data from 119 regencies/cities in Java Island during the 2017-2021 period due to data availability shows that there have been changes in household consumption patterns during the pandemic. The results of the panel data analysis show that the COVID-19 pandemic has a negative effect on household consumption. In contrast, wealth positively affects household consumption in almost all provinces on the island of Java. These results suggest increasing asset ownership for households to maximize wealth, positively affecting household consumption, mainly when shocks occur.JEL Classification: D19, E21, H31How to Cite:Murti, P. P. I., Siregar, H., & Sugema, I. (2023). Impacts of Covid-19 Pandemic and Wealth on Household Consumption in Java Island. Signifikan: Jurnal Ilmu Ekonomi, 12(2), 371-382. https://doi.org/10.15408/sjie. v12i2.32336.

The management of Hajj funds must be done effectively using a rigorous standardized risk management approach. This study aims to create a Hajj fund management model using Islamic financial instruments through the optimal portfolio method and strategic asset allocation. The model was built using historical data from 2010–2022, involving Islamic deposits, government sukuk (SBSN), corporate sukuk, and Islamic stocks, which were analyzed with the Markowitz portfolio equation in Excel Solver. The result showed that the optimal portfolio yields an 8.50% expected return with a 4.00% risk; strategic asset allocation produces an 8.25% return with a 2.99% risk. The policy implication of this research is the need to review the initial deposit of pilgrims and explore alternative investments to bridge the gap between the actual cost of Hajj and pilgrims' payments while improving returns.JEL Classification: M31, M37, L92 How to Cite:Masruroh, A., Rodoni, A., & Pontjowinoto, I. P. (2023). Optimizing Hajj Fund Management through Islamic Finance Instrument. Signifikan: Jurnal Ilmu Ekonomi, 12(2), 287-306. https://doi.org/10.15408/sjie.v12i2.34403.

Since the stipulation of regional autonomy in the early 2000s, local governments have managed their revenues and expenditures independently, in direct or revenue-sharing funds from the Central Government, including income from natural resource exploitation. This study aims to identify the region with high natural resources, especially from the mining and quarrying sectors, expected to improve its human resources quality, focusing on the employment sector. In addition, this study identifies the impact of natural resources on reducing unemployment in 34 provinces in 2015-2021. A previous study implemented natural resources rent to proxy natural resources in a region. However, identification of this proxy has been challenging due to the considerable informality in Indonesia. This study employs mining and quarrying sectors to proxy natural resources as a comprehensive output of a region. The data used in this study was secondary data sourced from the National Statistics Board (BPS). The analysis method of this study was fixed effect with the Human Development Index (HDI) and the unemployment rate as the dependent variable. The results of this study revealed that regional natural resources did not impact HDI or reduce the unemployment rate in a province, indicating that the mining and quarrying sectors did not contribute to improving the quality of human resources and reducing unemployment significantly.JEL Classification: C01, O13, O15, O17How to Cite:Gunawan, B. T (2023). Do Natural Resources Affect Unemployment? Evidence From Indonesian Province Panel Data. Signifikan: Jurnal Ilmu Ekonomi, 12(2), 231-244. https://doi.org/10.15408/sjie.v12i2.31824

Studies on the nexus between socioeconomic and demographic factors and crime reporting are still limited in Indonesia. Therefore, this study aimed to investigate the socioeconomic and demographic causes of crime reporting in Indonesia using data from the results of the 2021 National Socioeconomic Survey. The data were analyzed using a binary logistic regression model. The unit of analysis was the population aged 15 years and older. The dependent variable was whether or not someone who experienced a crime reported it to the police. The independent variables were socioeconomic and demographic factors. The results of the study showed that a lower probability of reporting crime to the police was associated with being female, being younger, having higher educational attainment, living in urban areas, living in Java island, and working, implying the need to improve information, education, and communication on crime reporting among these groups.JEL Classification: A12, J19, K00, K39How to Cite:Rajagukguk, W. (2023). Socioeconomic and Demographic Causes of Crime Reporting in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 12(2), 413-424. https://doi.org/10.15408/sjie.v12i2.33436.

The urban low-income segment of society survived on their earnings in the informal sector. This study examines the informal traffic controllers in the shadow economy framework who assist incoming cars at traffic-congested intersections and turning lanes in the main cities to earn income. This paper originates from the preliminary study of “Pak Ogah”: the Portrait of Shadow Economy in the Greater Area of Jakarta. The field study was conducted at 60 congested intersections and turning lanes on roadways where the informal traffic controller groups operated. The study employs a mixed method of qualitative and quantitative procedures and conducts a triangulation strategy. The study's implications suggest that the shadow economy was created by institutional failure to anticipate the negative impact of urban development policy.JEL Classification: O17, E26, R41, I32How to Cite:Chalid, P., & Kuswini, I. (2023). Informal Traffic Controller: Study on Shadow Economy in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 12(2), 399-412. https://doi.org/10.15408/sjie.v12i2.33434.

While financial inclusion is widely acknowledged as a means to enhance the welfare of all ages, currently, there is no empirical research examining its effects on the health of older adults in Indonesia. This study, therefore, aims to fill the gap by investigating the impact of financial inclusion on the health of older adults in Indonesia using data from the March 2021 National SocioEconomic Survey (SUSENAS). The binary logistics regression was used to assess that effect. The findings reveal that financial inclusion positively benefits the health of older adults in Indonesia, highlighting the importance of policy-making that promotes financial inclusion programs to improve the health outcomes of older adults.JEL Classification: G2, I1, C31How to Cite:Abdurrahman, A., & Haryanto, T. (2023). Does Financial Inclusion Affect Health among Older Adults? Evidence from Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 12(2), 327-340. https://doi.org/10.15408/sjie.v12i2.32001

This article aims to examine the connection between corruption and the amount of trade in several commodities, including raw materials, capital goods, intermediate products, and consumer goods, with a specific emphasis on the Indonesian situation. Indicators of corruption utilized in this article include the Corruption Perception Index (CPI) and the Control of Corruption (COC). Meanwhile, the sum of Indonesia's exports and imports indicated the country's trade volume. For this issue, this article employs the gravity model and regresses it with either a fixed effect or a random effect model. The empirical findings show that both the CPI and COC levels of corruption in Indonesia have a negative impact on the amount of trade in capital goods. However, only the CPI shows a negative correlation with the prevalence of corruption in Indonesia, whereas consumer products, intermediate goods, and raw materials all show a positive correlation. The impact of COC on Indonesia's trade partners is complicated for the commodities this article looked at. The insights generated from this study hold significant value in shaping a more informed and accurate representation of how corruption permeates and impacts international trade dynamics, thus contributing to a more nuanced understanding of this critical issue.JEL Classification: D73, F10, C01How to Cite:Yunan, Z. Y. (2023). Does Indonesia’s High Level of Corruption Affects Its Trade Volume? Signifikan: Jurnal Ilmu Ekonomi, 12(2), 425-440. https://doi.org/10.15408/sjie.v12i2.35156.

The macro health impact of the COVID-19 pandemic that resulted in an economic slump in Bali exposed the need for economic development outside the tourism sector. Manufacturing Micro and Small Enterprises (MSEs) is one sector that contributes significantly to the economy, export value, and employment, particularly during moments when the tourism sector is down. This study aims to determine the performance of manufacturing MSEs during 2018-2021 using Cobb-Douglas stochastic frontier production function analysis. The Technical Inefficiency (TE) value of manufacturing MSEs in Bali was 22.24% over 2018-2021. The impact of COVID-19 on each ISIC and business location has a varied impact on the production value of MSEs Manufacturing. The gender of the business owner, financial service, age of workers, and source of raw materials are inefficiency variables that significantly affect production value. However, the training received by manufacturing MSEs had no significant effect. The findings from this study can be used as a basis for government policy in further developing the untapped potential of manufacturing MSEs in Bali regarding impacts upon Bali's tourism sector during the pandemic.JEL Classification: D24, E23, J16, L86, O14 How to Cite:Candrawati, I.A., & Purwanti, P.A.P. (2023). Untapped Potential of Manufacturing MSEs in Bali Amidst the Covid-19 Pandemic. Signifikan: Jurnal Ilmu Ekonomi, 12(2), 383-398. https://doi.org/10.15408/sjie. v12i2.32389.

This study investigates the role of Shariah investment in Indonesia's inclusive growth. Shariah investment is measured in terms of Shariah stocks and sukuk. As determinants of inclusive growth, the study also includes several control variables adopted from separate literature, including the effect of COVID-19. In contrast to previous research, testing is conducted using a variety of inclusive growth metrics. Using principal component analysis (PCA) to compute the composite index of inclusive growth and time series regression models with monthly data at the national level from 2011 to 2022, this study finds three main conclusions. Evidence shows that Shariah investment contributes to inclusive growth in Indonesia, but the effects vary. Shariah stocks significantly affect poverty and unemployment, whereas Sukuk affects poverty and inequality. Both contributed to improving the Human Development Index (HDI) and inclusive growth. This study also revealed that COVID-19 was instrumental in reducing Indonesia's inclusive growth performance. This study complements prior empirical research on inclusive growth issues in Indonesia by examining the role of Islamic economics and finance. This research contributes to future policy initiatives to strengthen Indonesia's inclusive growth.JEL Classification: D24, O14, O4How to Cite:Indra & Ibrahim, M. Y. (2023). Unlocking Inclusive Growth: The Impact of Shariah Investment in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 12(2), 263-274. https://doi.org/10.15408/sjie.v12i2.31935

The provincial government in Indonesia has been mandated to collect environmental-related taxes in recurrent vehicle taxes, vehicle transfer taxes, and gasoline taxes. These vehicle-related taxes have been the dominant type for the provincial government. Yet, the environment-related spending has been relatively low, within 1-3% of total expenditures. This study examines to what extent such environmental tax–spending mix affects the environmental outcomes measured by the air quality index. The novelty of this study comes in using detailed environmental-related tax revenues at the sub-national level and providing a context of the large developing country in a decentralized economy – Indonesia – as a case study. Our study finds the link between environmental tax in the case of the vehicle recurrent tax and gasoline tax in improving air quality and environmental quality index, respectively. But on the spending side, there is no evidence that provincial environmental spending may improve the air or environmental quality index. Nonetheless, we found a correlation between the vehicle transfer tax revenues and the share of province environmental spending, implying that environmental tax revenues, to some extent, correspond to the related provincial expenditures on environmental protection. This study signals the need also to expand environmental spending to complement existing environmental tax policy at the provincial level.JEL Classification: H71, H76, Q53How to Cite:Qibthiyyah, R. M., & Zen, F. (2023). The Effect of Environmental Tax Spending Mix on Province Air Quality Index. Signifikan: Jurnal Ilmu Ekonomi, 12(2), 221-230. https://doi.org/10.15408/sjie.v12i2.32395.