Enterprises In Indonesia Research Articles

The importance of E-commerce adoption and entrepreneurship orientation for sustainable micro, small, and medium enterprises in Indonesia

ABSTRACT This study aims to examine the importance of e-commerce adoption and entrepreneurial orientation in Micro, Small, and Medium Enterprises (MSME)’s performance. A purposive sampling procedure was employed to recruit 150 MSME’s entrepreneurs from three districts of Jambi province, Indonesia. The findings show that e-commerce adoption significantly affects the sustainability of MSME business performance, while entrepreneurship orientation moderates these two variables. The findings could be used to identify and map customers’ preferences of e-commerce adoption and entrepreneurship orientation in order to improve MSME’s performance. Furthermore, these findings could be a source of information for the government in formulating policy concerning the MSME.

Raw Material Analysis control of SMBE Slipper Producer using Economic Order Quantity

The growth of small-medium business enterprise in Indonesia is getting faster in decade, including small-medium business enterprise who produce slippers. SISCO is one of small-medium business enterprise who produce slipper. They must keep tight with market requirement. The supply of raw materials in a small-medium business enterprise is one of the important during production process. In some case their products are mismatch number from market demand. It can be worse if there a mismatch between raw materials ordering schedule from supplier and market demand from consumers. One of this problem requires Economic Order Quantity method as a solution, because during slippers production we have to order from supplier. Inventories are materials stored as raw materials, then they processed be finish product. To find out inventory, one of the inventory models used is the economic order quantity model. This method seeks to achieve the minimum possibility of inventory levels and lower costs and better quality. Economic Order Quantity method calculation based on raw material inventory control in SISCO slipper brand. Optimum monthly cost is IDR 5.293.541,03 to meet supply materials.

A Comparative Case Study on Performance Management System in Architecture, Engineering, and Construction Start-up Enterprises in Indonesia

Abstract. Despite a growing sense that start-up enterprise is critical to economic growth, the topic of performance management affects strategic and organizational processes remains largely understudied. In Indonesia, as a sphere where the entrepreneurial ecosystem is on the rise, we explored the strategy of Architecture, Engineering, and Construction (AEC) start-up firms using a Balanced Scorecard (BSC). This research aims to determine how suitable the BSC is applied to AEC start-ups and how this tool is implemented as the enterprise evolves. We conduct in-depth case studies using multiple data sources, including interviews and field observation. By performing the comparative analysis, we identified managerial practices that enable the networking of BSC perspectives – learning and growth, internal process, customer, and financial – during the start-up lifecycle. From the contribution to the literature perspective, this study provides empirical evidence that the BSC is a valuable performance management tool for early-stage firms. However, the BSC must be reconfigured regularly to reflect the current development stage’s objectives throughout implementation. As the business implications, this research helps AEC entrepreneurs see the significance of achieving organizational balance to drive growth and transition from agile start-ups to sustainable companies. Future research may examine the interconnection between managerial control systems and leadership attributes in different business contexts. Keywords: AEC firms, Balanced Scorecard, Performance Management System, Start-up Lifecycle

Corporate Philanthropy Disclosure of State-Owned Enterprises in Indonesia

Corporate philanthropy is becoming big in businesses and a major strategic issue for firms as they actively aim to be socially responsible organizations. This study aims to measure the extent of corporate philanthropy disclosure (CPD) and the impacts of foreign ownership, managerial ownership, the proportion of independent directors, and company size on CPD in annual reports of state-owned enterprises (SOEs) in Indonesia. The level of CPD in this study was measured using an index adapted from earlier research and regulation. Annual reports of 153 SOEs for 2010–2012 were examined to measure the extent of CPD and investigate its potential determinant factors. Study results indicate that company size has a significant positive effect on CPD and managerial ownership has a moderate effect. In addition, the results also show that the control variable, public company (Perum), has a significant effect on CPD in SOEs in Indonesia. The average CPD rate is only 63.00%, which indicates that CPD has been commonly disclosed in annual reports. The findings regarding corporate philanthropy in annual reports should be a concern to regulatory authorities and standard-setters in Indonesia.

Long-term Survival of Micro, Small, and Medium Enterprises in Indonesia

The purpose of this research is to find out the influence of the use of technology as long-term survival in Indonesia in increasing MSME profitability. The method used case study method that aims to find out how the influence of the application of website applications in increasing profits. The era of Industrial Revolution 4.0 is marked by the massive use of technology in any aspect, one of the applications is the many uses of the internet in the sales and marketing and purchasing processes. The results of this study indicate that the application of website applications increase the sales which affect MSME profits, higher online purchasing power is caused by the interest of buyers in making purchases through the website because the transaction is easy and can be done anywhere. The conclusion of this research is the application of website applications to increase profits has a positive impact on entrepreneurs.

Sustainable HR development to support successful implementation of offline accounting apps by rural enterprises in Indonesia

Sustainable HR development to support successful implementation of offline accounting apps by rural enterprises in Indonesia

Determinants of Taxpayers Compliance: Evidence from Small and Medium Macro Enterprises in Indonesia

The aim of this reseach to determine the factors that influence of taxpayers compliance. The populations for this study is corporate taxpayer registered in the Pratama tax office. Sampling technique of convenience sampling was adopted in which one hundred and fifty nine Small and Medium Macro Enterprises (SMMEs) responded to the survey questionnaire and a total of one hundred fifteen valid responses were judged to be appropriate. Analytical in this study uses multiple regression model used to test the hypotheses of the study through the statistical model. The result of this research indicates that general fairness, exchange with the government, self-interest, special provisions and tax rate structure have a significant effect on corporate taxpayer compliance behavior.

An Integration of Business Model Canvas on Prioritizing Strategy: Case Study of Small Scale Nontimber Forest Product (NTFP) Enterprises in Indonesia

Nontimber forest products (NTFPs)‬ are one of the forest products that can provide direct benefits to communities living around forests. Some of the most used NTFPs in Indonesia are the stems, leaves and fruit of candlenut trees. Candlenut fruit is widely used in the cosmetics, pharmaceuticals, and biodiesel industries and is generally used as a cooking ingredient in Indonesia. However, only a limited number of people or community groups manage the forests to increase their income from this business. The aim of this study is to identify business models to serve as the basis for developing alternative business model organizational plans for candlenut extraction. A case study approach was adopted, with in-depth interviews used to collect data. The integration of Business Model Canvas, SWOT Analysis, Internal Factor Evaluation and External Factor Evaluation matrix were used to determine alternative strategies. The results exhibit that the value proposition is the largest barrier for the improvement of these businesses. The Positioning Quadrant SWOT shows that internal factors (strengths and weaknesses) are low, indicating that the candlenut business position is internally weak. However, the scores of external factors (opportunities and threats) are higher implying that there is a great opportunity in the development of candlenut. The alternative strategies to develop candlenut business are to maintain relationships with customers and partners; increasing the quantity and quality of products through technology inputs, promotion, product diversification, and partnership with the government.‬‬

Administrative Analysis on Value Added Tax in Electronic Wallet Industry in Indonesia (Study Case At PT. MLH)

The development of the industry continues to develop over time. One of the developing industries in Indonesia is the Digital Wallet Financial Technology Industry. This study goal is to analyze the administration of Value Added Tax in the electronic wallet financial technology industry in Indonesia, by taking a case study at one of the fintech companies which affiliated to the Indonesian State-Owned Enterprises in Indonesia. By using qualitative research methods and in-depth interview data collection techniques and literature studies, this research are to be able to analyze and describe alternative on Value Added Tax administration policies that are appropriate for the electronic wallet financial technology industry in Indonesia.

DETERMINAN KINERJA USAHA MIKRO KECIL MENENGAH (UMKM) ALAT TEKNIK DI PASAR HWI LINDETEVES JAKARTA

<p align="justify"><em>The ebb and flow of passion for Micro, Small and Medium Enterprises in Indonesia, especially in Jakarta, signals that people's tastes have changed apart from the purchasing power factor. As an area for buying and selling technical equipment that tends to be homogeneous, the HWI Lindeteves Jakarta market has an interesting phenomenon to research. This study aims to explain the effect of Market Orientation and Entrepreneurship Orientation on Business Performance. This quantitative research uses multiple regression analysis for data analysis. The measuring instrument used is SPSS 23.0. The results of this study explain that business performance is affected by market orientation. Furthermore, Business Performance is also influenced by Entrepreneurial Orientation. Simultaneously, this study explains that business performance is influenced by market orientation and entrepreneurial orientation. The better the company strategy is related to understanding Market Orientation and Entrepreneurship Orientation, the better it will support Business Performance. On the other hand, a low level of market orientation and entrepreneurial orientation can have a low impact on business performance.</em><em></em></p><p align="justify"><em> </em></p>

Redesign of Product Packaging with Kansei Engineering: Empirical Study on Small-medium Enterprises in Indonesia

Redesign of Product Packaging with Kansei Engineering: Empirical Study on Small-medium Enterprises in Indonesia

BUSINESS PROCESS LIFE CYCLE AFFECTS COMPANY FINANCIAL PERFORMANCE: MICRO, SMALL, AND MEDIUM BUSINESS ENTERPRISES DURING THE COVID-19 PERIOD

The business process life cycle is a collection of structured work activities that are interconnected to solve a problem that results in an output (product / output) or service that achieves goals and supports the achievement of strategic goals and objectives of an organization's financial performance. Business processes aim to achieve financial performance that is effective, efficient and increases the productivity of an organization. The life cycle of micro, small and medium enterprises aims to survive post-Covid-19 in order to increase the productivity performance of the organization's financial performance. To achieve this goal, an organization needs a good business process to support the organization's financial performance and business ventures in designing activities to produce new products in order to develop management techniques so that they can survive the midst of the global Covid-19 crisis. The product life cycle that can identify opportunities for environmental improvement is an important part of an organization that aims to minimize total costs, low prices and production results, improve the financial performance of micro, small, and medium business processes. Techniques in producing using financial and non-financial information, to improve the company's financial performance, and to contribute to the sustainability of business processes aim to provide physical information on material and energy use, as well as monetary information on costs, revenues and savings related to the company's financial performance. This research was carried out on micro, small and medium enterprises in Indonesia. This research method is descriptive and verification methods, the analysis tool is structural equation modeling (SEM, Lisrel). The results showed that the business process life cycle had an effect on the financial performance of the Covid-19 small, and medium enterprises business companies.Keywork: Business Process Life Cycle, Corporate Financial Performance. Micro, Small, And Medium Enterprises, Covid-19 PeriodJEL Classifications: E3, G2DOI: https://doi.org/10.32479/ijefi.10516

The Influence of Information Technology Covid-19 Plague Against Financial Statements and Business Practices

Covid-19 information technology is developing so rapidly virtually, where technology allows users to interact with an environment that is simulated online, a tool that has a number of accurate information that can be accessed online to receive information. Copid_19 information technology has a bad impact on the business activities of small and medium businesses, causing inventory to become obsolete, considering that performance targets other than profit are declining for the company because it does not obtain sales transactions, ultimately the flow of funds from customers is more hampered. The covid-19 outbreak caused it to reduce company financial statements and business practices and profitability according. Covid-19 information technology outbreaks cause customers to make the decision to stay at home with no outside activities, ultimately stopping business practices and other transactions for the company. Public media such as the Web, private social networks, wikis and blogs are important tools for companies to communicate, collaborate and share information about sales through the system and even evaluate directly how sales take place. The data analysis technique used in this study is the Structural Equation Modeling (SEM) technique, in micro and small-medium enterprises in Indonesia that are related and 112 samples are collected in micro small and medium businesses spread across Indonesia. The results showed that the covid-19 outbreak information technology was quite influential in the company's financial statements and business practices. Companies must consider losses due to obsolescence of inventory and company income will decrease. This research was conducted at micro small and medium enterprises in Indonesia which were affected by Corona Pandemic.
 

Key Factors in Improving the Maturity of Information Technology Governance: A Case Study of State-owned Enterprise in Indonesia

The assessment of IT governance maturity is part of the assurance function. The assessment is carried out to ensure technology support in achieving business goals. In this context, companies should comply with regulations, as well as the need to continue to improve the quality of implementation of IT governance. The average value of PT X's IT governance maturity in Year 2 has increased from 3.21 to 3.26. There is an increase in the average score of 0.05 over one year. Success factors in implementing IT governance must be maintained and encouraged to continue the grow. This research was conducted to identify what organizational initiatives to increase the maturity and what the key factors are. Factors identification is done using evidence analysis method based on CSF references and attributes criteria. The results of the analysis obtained key factors that strengthen the maturity. The main factors are CSF2 providing IT infrastructure that supports the development and exchange of IT applications and services (21.72%), and CSF4 staff development to meet professional IT HR qualifications (17.39%). On the other hand, maturity attribute which gave the biggest contribution was ATR1 related to policies and procedures (34.6%), and ATR3 related to defining goals and actions (30.77%).

Implementation of Fairness Theory in Minimum Wages Policy for Small and Medium Enterprise in Indonesia

Wage Minimum always gives disparity in political power and lawmaker since it is tough to describe how to determine individual wages. For this reason, the wage minimum is a dilemma for workers and employers. Fairness conception for wage minimum is a solution to this problem. The fairness conception will guide the wage minimum to the supreme law. Although there are so many regulations concerning wage minimum, there are still many problems that arise, including break the law of wage minimum. The rules must consider the balance of interest between workers and employers to reduce disobedience of minimum wage.

A Social Enterprise Approach to Empowering Micro, Small and Medium Enterprises (SMEs) in Indonesia

Micro-enterprises play a critical role in the Indonesian economy, in which they supply 99.8% of the country’s employment and account for more than 95% of all enterprises in Indonesia. However, these firms experience many impediments, including a lack of capital, skills, and technology, which creates poor competitiveness. Although the Indonesian government has implemented many policies to deal with these problems, none have been adequate in improving the capacity and productivity of micro, small, and medium enterprises (SMEs). The empowerment program “Iptekda LIPI—Penerapan dan Pemanfaatan Ilmu Pengetahuan dan Teknologi di Daerah Lembaga Ilmu Pengetahuan Indonesia (LIPI)—The Technology for Region Program of the Indonesian Institute of Sciences” proposed a new approach using a social enterprise to solve this issue. This paper analyses the social-enterprise approach of Iptekda LIPI which incorporates market and social welfare to determine the problems experienced by SMEs. The researchers conducted in-depth interviews with the owners of SMEs in West and East Java to explore how this approach may contribute to their businesses and to analyze the challenges of the social enterprise approach in empowering SMEs.

Financial Inclusion and Performance to Mediate the Effect of Banking and Tax Regulation on the Success of Small and Medium Enterprises in Indonesia

Financial Inclusion and Performance to Mediate the Effect of Banking and Tax Regulation on the Success of Small and Medium Enterprises in Indonesia

Social Enterprise Development in Indonesia by Transdisciplinary Approach

Indonesia is the most populous nation in Southeast Asia and its economy has been rapidly growing over the past years. However, the nation has numbers of challenges and facing various problems such as insufficient education problem derived from poverty due to delays of industrial development, drinking water and health impairment problems due to environmental degradation and traffic congestion in urban areas. In order to bring about sustainable development of the country, it is necessary to support and foster social enterprises that lead for solving such social problems. In response to this, the ultimate purpose of this research paper is to seek out how to advance the social entrepreneurship in Indonesia. One of the most important entities leading social problems to solve is forming a social enterprise. Because social enterprise can form the community services which cannot be formed in business firms, central or local governments. This research paper seeks the possibility of solving social problems by applying transdisciplinary approaches with the supports of collaboration between various stakeholders and scientists (co-design, co-production, co-delivery). Specifically, the purpose of this research paper is to clarify the path of developing a training and support system for social enterprises in Indonesia. It is difficult to seek out ways to support and nurture social enterprises by cooperation of industry, government and academia only. What is sought there is collaboration. In other words, in this research paper, we are trying to find ways to support and foster social enterprises by using a method called “transdisciplinary” while referring to collaboration examples of industry, government and academia in Japan. Under these circumstances in Indonesia, it is significant to consider supporting and fostering social enterprises for solving the social problems. This social enterprise support and foster system can be applied not only to Indonesia alone but also to many developing countries as long as it can be applied as development purposes to other countries.

Implementation of the Equity-based Trust in the State-Owned Enterprises in Indonesia

Purpose: State-owned enterprise directors in Indonesia function as management and as the representation of the company based on the principle o is role ambiguity, this study seeks to investigate the implementation of the concept of trust in the legal system in Indonesian state-owned enterprises. Approach/Methodology/Design: The research in this study uses the doctrinal method, known as the normative research method, to explain the role of the director in the implementation of trust in a state-owned enterprise. Findings: The results showed that the implementation of trust can be done through equity, in which a person has an object for the benefit of the other party. Equity requires the fulfilment of obligations based on trust, which makes the person who has the object in the law as the legal owner, to the beneficial owner. Practical Implications: The The application of the concept of trust in SOE directors as a public official needs to be clarified because state-owned enterprises are state-owned legal entities which must also be financially accountable. Originality/value: The study first analyze the trust in SOEs in relation with the function of board of directors in carrying out the obligations as stipulated in the LLC Law, and being responsible for the management of the company, with the aim of generating profits with the good corporate governance.

The Presumptive Tax Regime on Micro, Small and Medium Enterprises in Indonesia

In July 2013, Indonesia implemented the presumptive tax regime on micro, small and medium enterprises (MSMEs) by assigning Government Regulation No.46/2013. This regulation simplified the tax administration and provides tax cuts to MSMEs to help them grow and encourage voluntary tax compliance, which eventually will increase their contribution to state revenue. This study provides an analysis of the implementation of this new tax regime by comparing related literature on practices of this tax regime in many countries with the recent conditions in Indonesia after this regulation was applied. It seems that the new tax regime encourages voluntary tax compliance and stimulates the contribution of MSMEs to state revenue. However, some challenges, such as different definitions, lack of tax knowledge, impartiality to business losses, and the indication of tax avoidance must be overcome by the government by improving policies that favor MSMEs.
 Keywords: Indonesia, MSMEs, presumptive tax, threshold