Business In Indonesia Research Articles

Eksplorasi Minat Warga Korea Selatan terhadap Batik Indonesia

Globalization is a world development phenomenon where everything can be achieved instantly and makes things easier for humans in everything, whether in the use of technology or information obtained in gaining knowledge with just one click. However, in the 20th century, the development of this phenomenon became increasingly rapid and global. This is due to advances in technology and the ease with which information can be obtained via the internet which is used by almost all people in the world. Indonesian people take advantage of this phenomenon in distributing and introducing traditional Indonesian culture to foreign countries, especially South Korea. One of the Indonesian cultural products that can be exported is Indonesian batik which has been recognized by UNESCO as a world cultural heritage.This research aims to analyze the impact of globalization on Indonesian batik export opportunities to South Korea. This research uses a qualitative method with a phenomenological approach. The object of research is Indonesian batik which has successfully attracted the attention of the people in South Korea. This data was collected through interviews with local South Korean residents, observations, and literature studies.The research results show that globalization has had a positive impact on batik export opportunities in Indonesia. This can be seen from the increasing consumption of Indonesian products in South Korea and the interest of the South Korean people in learning Indonesian and its culture. Apart from that, through this research, other factors were found that influence the export opportunities of Indonesian batik to South Korea, including the quality of Indonesian batik, Indonesian and South Korean government policies, as well as the promotion of Indonesian batik in South Korea. Therefore, Indonesian business people need to take advantage of this opportunity to increase Indonesian batik exports to South Korea.

Effectiveness of Law No. 5 of 1999 in Handling Cross-Border Business Competition

This paper examines the issues of business competition in an extraterritorial context and its implications for the authority of the Indonesian Business Competition Supervisory Commission (KPPU). The research focuses on the extent to which the KPPU can enforce its duties beyond the borders of Indonesia, particularly concerning the effective application of Law No. 5 of 1999. Analysis of KPPU's decisions in extraterritorial cases, especially those involving share acquisitions, provides insights into the approaches and solutions adopted. The study aims to foster discussion on the role of KPPU in addressing extraterritorial challenges, along with the application of international cooperation and principles of international law in enforcing competition law. The research findings are expected to offer recommendations to enhance the effectiveness of KPPU's enforcement of competition law in a global context.

The Impact of Environmental Social Governance (ESG) on Firm Performance with the Moderating Role of CEO Turnover

This research aims to investigate the influence of Environmental, Social, and Governance (ESG) on firm performance, measured by Return on Equity (ROE). Additionally, the study explores the moderating role of CEO turnover in the relationship between ESG and firm performance in publicly listed companies on the Indonesia Stock Exchange, with a sample of 33 companies from 2016 to 2022. The GMM estimator method is employed to address endogeneity issues, ensuring consistent and unbiased estimation results. Findings indicate that overall ESG performance significantly affects firm performance, emphasizing the importance of implementing ESG principles in Indonesian businesses to enhance ROE. Other results reveal the pure moderating role of CEO turnover, weakening the relationship between ESG and firm performance. Therefore, proper planning and guidelines for CEO succession are crucial for improving firm performance and sustainability. The research results carry important implications for Indonesian companies to consider ESG implementation in their business strategies. Furthermore, CEO succession planning management is key to maximizing the positive impact of ESG on firm performance. This study contributes to a deeper understanding of how ESG factors influence firm performance in the Indonesian business context, highlighting the significance of executive leadership in managing these impacts.

Civil Implications of Monopoly Practices in Business Competition Law in Indonesia

Monopoly practices present substantial challenges to both civil rights and economic equity in Indonesia. This article provides a comprehensive analysis of the civil implications of monopolistic behavior within the context of Indonesian business competition law. The study delves into the multifaceted impacts of monopolies on market dynamics, consumer rights, and overall economic health. It is evident that monopolistic practices distort market fairness by limiting consumer choices, inflating prices, and diminishing the quality of goods and services. These adverse outcomes highlight significant violations of civil rights, particularly in restricting individuals' freedom to make informed and free choices in the marketplace. The legal framework in Indonesia, while foundational, often lacks the robustness required to effectively address the sophisticated nature of modern monopolistic strategies. The effectiveness of these laws is crucial in curbing monopolistic behavior and ensuring fair market conditions. Through a detailed examination of existing regulations and their enforcement, this article identifies key areas where legal improvements are necessary. It advocates for a more comprehensive policy approach and enhanced regulatory mechanisms to safeguard against the civil and economic repercussions of monopoly practices. Furthermore, the economic implications of monopolistic practices are discussed, emphasizing how they contribute to market inefficiencies and economic disparities. By concentrating market power, monopolies not only stifle competition but also create barriers to entry for smaller businesses, thereby hindering innovation and economic growth. The article concludes with recommendations aimed at strengthening Indonesia's legal and regulatory framework to better protect consumer rights and promote a more equitable economic environment.

The Influence of Earnings Management on the Value Relevance of Accounting Information

This research aims to investigate the influence of earnings management practices on the value relevance of accounting information in the Indonesian business environment. The research method used is qualitative with a library study approach and document content analysis. Data was obtained through in-depth interviews with related parties such as auditors and financial managers, as well as analysis of the contents of documents in the form of financial reports and company meeting notes. The research results show that earnings management practices can reduce the value relevance of accounting information by affecting the quality of information conveyed in financial reports. Practices such as increasing revenue estimates or delaying expense recognition can cloud the picture of a company's true performance, which in turn affects economic decision making. These findings emphasize the importance of transparency and integrity in accounting practices to maintain the value relevance of accounting information for stakeholders. The implication of this research for accounting theory is the need to pay attention to earnings management practices within a broader theoretical framework regarding the integrity of accounting information. From a practical perspective, companies need to increase awareness of the importance of honest accounting practices and comply with applicable standards to minimize unethical earnings management practices. This implication is also relevant for regulators in strengthening regulations related to financial reporting in order to maintain the integrity of the capital market in Indonesia.

Assessing the Relationship Between Green Leadership Practices and Organisational Resiliance in Sustainable HR System in Indonesia Startpup Companies

This research aims to investigate the influence of organizational resilience and green leadership practices on sustainable human resource (HR) systems in the context of start-up businesses in Indonesia. The survey method was used to collect quantitative data from 250 respondents representing various industrial sectors. The constructs of organizational resilience, sustainable HR systems, and green leadership were tested for validity and reliability using accepted measurement models. Structural model analysis shows that organizational resilience, sustainable HR systems, and green leadership have a positive and significant relationship. In addition, mediation analysis indicates that the influence of green leadership on sustainable HR systems is partially mediated through organizational resilience. The validity of this relationship is strengthened through bootstrapping procedures. These findings provide valuable insights for organizational leaders and policy makers by illustrating the dynamics of sustainability practices in the context of start-up companies in Indonesia. The practical implications of this research emphasize the importance of building strong organizational resilience and implementing green leadership practices as a strategy to strengthen sustainable HR systems in facing future business challenges. Keywords: Green Leadership, Indonesian Business Environment, Organizational Resilience, Sustainable HR Systems, Start-Up Companies

Understanding the Impact of Artificial Intelligence (AI) on Traditional Businesses in Indonesia

The integration of artificial intelligence (AI) in Indonesia's business landscape has ushered in significant changes, presenting challenges and opportunities for traditional businesses across various sectors. Understanding the implications of AI is crucial for navigating these changes effectively. This study aims to investigate the transformative impact of AI on traditional Indonesian businesses, specifically analyzing the opportunities and challenges associated with AI adoption and its implications for business strategies and operations. Utilizing a qualitative method, this study examines the influence of AI technologies on traditional Indonesian businesses. The study compiles data from academic literature, industry reports, and real-world case studies to analyze the intricate dynamics between AI technologies and human behavior. The findings reveal that AI integration offers numerous opportunities for traditional businesses in Indonesia, such as enhanced operational efficiency, improved customer experience, and innovation potential. However, significant challenges, including high implementation costs, data privacy concerns, and the lack of skilled AI talent, hinder widespread adoption. Despite these challenges, businesses that successfully navigate them can gain a competitive advantage in the digital age. This study contributes to the existing literature by providing fresh insights into the transformative impact of AI on traditional Indonesian businesses. It synthesizes recent research findings and case studies, offering valuable guidance for businesses aiming to leverage AI for strategic advantage.

Environmental Sustainability and Corporate Responsibility: A Legal Framework for Indonesian Business in the Future

Environmental Sustainability and Corporate Responsibility: A Legal Framework for Indonesian Business in the Future

Rug Pull Cryptocurrency Case Analysis in the Perspective of Indonesian Business Law

Developments in financial technology continue to produce various new products, especially those related to investment in digital assets, or crypto assets. This study investigates the issue of consumer protection under Law No.8/1999 in crypto asset investment. This research uses normative juridical research methods. Juridical aspects such as theories, norms and regulations relating to investment in crypto assets are obtained from literature, books, online media and other sources related to the research subject, namely consumer protection against investment activities in crypto assets. This study tries to explain what reasons are driving the change and urges the government to create new, stricter regulations to protect crypto asset investors.

IMPLIKASI HUKUM PERMENDAG NO. 3 TAHUN 2024 TERHADAP BISNIS JASTIP BARANG IMPOR DI INDONESIA

This study examines the legal implications of the Minister of Trade Regulation (PERMENDAG) No. 3 of 2024, which amends PERMENDAG No. 36 of 2023, on the consignment service business for imported goods in Indonesia. In response to the dynamics of globalization and digital economic growth, this regulation was revised to strengthen import management by raising international compliance standards. The analysis shows that PERMENDAG No. 3 of 2024 introduces more detailed and strict provisions regarding licenses and import procedures, aiming to ensure the security and quality of imported goods. This step is crucial for maintaining consumer trust and ensuring fairness in Indonesia's business environment. Based on these regulatory changes, it is recommended that consignment business operators enhance their understanding of and compliance with the new regulations, and strengthen cooperation with suppliers and logistics partners to meet existing standards. The conclusion of the study is that the new regulation affects the consignment service business by demanding higher compliance and more organized import processes. It is advised that consignment businesses enhance their understanding of the new regulations, strengthen cooperation with suppliers, and ensure adherence to updated procedures.

Indonesian Business Competition Law post the enactment Government Regulation in Lieu of Law on Job Creation Regulation into Law

This study aims to find out the development of business competition law in Indonesia as stipulated in Law Number 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition and its impact on the dynamics of business competition in Indonesia after the enactment of Law Number 6 of 2023 on Stipulation of Government Regulation in Lieu of Law (Government Regulation in Lieu of Law) Number 2 of 2022 concerning Job Creation into Law. This study uses a normative method with a statute approach and a library research approach. The formulation of the problem in this study is the development of business competition law in Indonesia after the enactment of the Government Regulation in Lieu of Law on Job Creation into Law and the impact of the enactment of Law Number 6 of 2023 on the dynamics of business competition in Indonesia. The results showed that the Business Competition Law in Indonesia experienced the first change in terms of substance after the enactment of Law Number 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law Number 2 of 2022 concerning Job Creation into Law. These changes then led to a shift in the dynamics of the Competition Procedure Law, which was considered regressed. Keywords : Business Competition Law, Business Actors, and Unfair Competition

Validation Studies a Questionnaire Developed to Measure Incubator Business Technology Performance using PLS-SEM Approach

This research aims to collect data nationally using a questionnaire based on statements related to the performance factors of the Technology Business Incubator in Indonesia. This research uses the Structural Equation Modeling (SEM) method to test the validity and reliability of adapted scales. There are five stages starting with an outer model test to test the validity and reliability of the questionnaire's feasibility. The population in this research are organizations that are affiliated with the Indonesian Business Incubator Association (AIBI) and Ministry of Research, Technology and Higher Education, including business incubators belonging to ministries, local governments, the private sector and universities, there are 182 Technology Business Incubators in Indonesia. Testing in this research looks at whether the questions in the questionnaire are valid or not by going through two stages of convergent validity and discriminant validity. The first stage is convergent validity that aim of finding out the correlation between indicators and their latent variables. The second stage is discriminant validity which aims to find out whether the latent variable has adequate discriminant value and this was done to find out whether the statement items in the questionnaire were reliable and consistent in measuring the same symptoms in respondents. This research looks at the results of convergent validity analysis to consider the results of factor loading indicators on relevant factors, the results of testing the validity of all factors with a value greater than 0.50, one of which is an AVE value of 0.550, indicating that the indicators in these variables have a strong contribution in measuring the desired construct, and the reliability test of all variables is reliable because it exceeds 0.70, one of which is the facility variable which has a value of 0.858.

UTAUT model in explaining intentions and actual behavior of e-accounting users: A literature review

The rapid integration of information technology in Indonesia has led to a notable dependence on technological solutions, notably e-accounting, within business operations. However, many Micro, Small, and Medium Enterprises (MSMEs) continue to rely on manual processes, highlighting the need to understand factors influencing the adoption of e-accounting. Utilizing the Unified Theory of Acceptance and Use of Technology (UTAUT) model, this study aims to examine the impact of performance expectancy, effort expectancy, social influence, and facilitating conditions on the intention to use e-accounting among MSMEs. By synthesizing existing literature, the study underscores the importance of user experience and ease of use in the adoption of e-accounting solutions. Additionally, it emphasizes the role of social influence mechanisms, such as media exposure and customer relationships, in facilitating adoption and sustained utilization. The findings suggest that enhancing performance expectancy through user-centric design and addressing effort expectancy concerns can encourage MSMEs to embrace e-accounting. Moreover, fostering facilitating conditions and leveraging social influence can further bolster adoption rates. Therefore, understanding and addressing the factors influencing e-accounting adoption among MSMEs are essential for realizing the potential benefits of technology integration in Indonesian business contexts. By emphasizing usability and social influence, policymakers and stakeholders can promote the widespread adoption of e-accounting, thereby enhancing efficiency and competitiveness within the MSME sector.

The Role of Indonesian Business Owners in Aggressive Tax Planning

Objective: The objective of this study is to investigate the impact of firm characteristics, specifically leverage and profitability, on aggressive tax planning in public sector mining companies listed on the Indonesia Stock Exchange for the period of 2012-2016, with family ownership as a moderating variable. Theoretical Framework: This research draws upon established theories in finance and corporate governance to examine the relationship between firm characteristics and aggressive tax planning. Key theories include agency theory, which helps to understand the dynamics between owners and managers in decision-making processes, and the pecking order theory, which sheds light on how firms choose between internal and external financing options Method: The methodology adopted for this research comprises a quantitative approach utilizing data from 12 mining sector public companies over a five-year period, resulting in a sample size of 60. Data was processed using SPSS version 22.0 and Warp Pls 5.0. Leveraging both statistical analysis and structural equation modeling, the study explores the influence of leverage, profitability, and family ownership on aggressive tax planning. Results and Discussion: The findings indicate that leverage positively influences aggressive tax planning, while profitability exhibits a negative association. Furthermore, when moderated by family ownership, leverage demonstrates an amplified positive effect on aggressive tax planning, while profitability displays a strengthened negative impact. These results underscore the significant role of family ownership in shaping tax planning strategies within publicly listed companies. Research Implications: The practical implications of this research extend to corporate governance practices and tax planning strategies within the public sector mining industry. Understanding the interplay between firm characteristics and family ownership can inform policymakers and practitioners in enhancing transparency and accountability in tax-related decision-making processes. Originality/Value: This study contributes to the existing literature by examining the influence of firm characteristics on aggressive tax planning within the context of family ownership, particularly in the Indonesian market. By shedding light on the nuanced relationships between these variables, this research provides valuable insights for scholars, practitioners, and policymakers aiming to mitigate tax-related risks and promote responsible corporate behavior.

Digital market and its adequacy of merger assessment in Indonesian business competition law

Purpose This study aims to analyze the development of digital market characteristics particularly focusing on how the strategic choices of platforms are not fully reflected in pricing. In addition, the implications for the development of theories of harm are investigated to explore the necessity of a relevant market definition in assessing infringement and evaluating the adequacy of Indonesian competition law. Design/methodology/approach This study is a legal analysis that uses statutory approaches, cases, comparative law and the development of theories of harm in digital mergers. The case approach is conducted by analyzing three cases decided by the Indonesia Business Competition Supervisory Commission. This approach provides insight into the response of Komisi Pengawas Persaingan Usaha concerning the merger and acquisition cases in the digital era as well as the provision of different analyses in conventional markets. However, competition can be potentially damaged in digital markets and a comparative law approach is taken by analyzing digital merger cases decided by authorities in other countries. Findings Results reveal that the digital market has created a “relevant market” that is challenging and blurred due to multi-sided network effects and consumer data usage characteristics. Platform-based enterprises’ prices fluctuate due to the digital market’s network effect and consumer data statistics. Smartphone prices depend on the number of apps and consumer data. Neoclassical theory focusing on product markets and location applied in Indonesia must be revised to establish a relevant digital economy market. To evaluate digital mergers, new harm theories are needed. The merger should also protect consumer data. Law Number 27 of 2022 on Personal Data Protection and Government Regulation on the Implementation of Electronic Systems and Transactions protects online consumers, a basic step in due diligence for digital mergers. The Indonesian Government should promptly strengthen the notion of “relevant markets” in the digital economy, which could lead to fair business competition violations like big data control. Notify partners or digital merger participants of the accessibility of sensitive data like transaction history and user location. Originality/value The development of digital market characteristics has implications for developing theories of harm in digital markets. Indonesian competition law needs to develop such theories of harm to analyze the potential for anticompetitive digital mergers in the digital economy era.

The Influence of Social Capital, Entrepreneurial Competence and Entrepreneurial Ecosystem in Shaping Business Incubators in Indonesia

This study looks into how the entrepreneurial ecosystem, social capital, and entrepreneurial competence interact to influence how successful Indonesian business incubators are. Partial Least Squares Structural Equation Modeling (PLS-SEM) was the quantitative method used to examine the data collected from 275 entrepreneurs and incubator stakeholders. The evaluation of the measurement model demonstrated appropriate average variances extracted, strong loadings, and high composite reliabilities, all of which supported the validity and reliability of the selected indicators. Each latent variable's uniqueness was confirmed by discriminant validity analysis. Significant positive correlations between social capital, entrepreneurial competence, the entrepreneurial ecosystem, and the efficacy of business incubators were found by the structural model estimation. The suggested theoretical framework was validated by hypothesis testing, which showed that these elements interact to affect the performance of business incubators in Indonesia. A good fit was shown by the model fit assessment, supporting the structural model's validity. The results enhance our understanding from a theoretical and practical standpoint, offering policymakers, entrepreneurs, and stakeholders a comprehensive framework to maximize the conditions necessary for the success of business incubators.

Application of Good Corporate Governance (GCG) Principles in Cirebon Publications According to Islamic Economics

Recent developments show that it is not enough for management to ensure that the leadership management process is effective. In order for management to run well, a new tool is needed, namely Good Corporate Governance (GCG). This concept emphasizes two things, first, the importance of shareholders' rights to obtain accurate and timely information, and second, the company's obligation to publish all information regarding company performance accurately, timely and transparently. property and interested parties. The study aims to evaluate the extent to which the principles of good corporate governance (GCG) have been implemented in the Indonesian banking sector, both in conventional and Islamic banks. In this study, the type of research used is a type of qualitative descriptive research. The results of various national and international independent research institutions show that Indonesian business people do not understand the importance and strategic implementation of GCG principles. In addition, organizational culture also influences the implementation of GCG in Indonesia.

The Effect of E-commerce Platforms, Digital Marketing, and User Experience on Market Reach and Competitiveness of Indonesian MSMEs

The complex relationships between digital marketing tactics, user experience, and e-commerce platforms are examined in this study, as well as how these relationships affect MSMEs' (micro, small, and medium-sized enterprises) ability to compete in the Indonesian market. Structural Equation Modeling with Partial Least Squares (SEM-PLS) is utilized in the study to analyze survey data obtained from 150 MSMEs in Indonesia. The adoption of e-commerce and market reach, competitiveness and effective digital marketing techniques, and user experience and overall market performance are all significantly positively correlated, according to the results. The report offers detailed insights into the digital tactics influencing MSMEs' success in the Indonesian business environment. It also offers recommendations for further research and real-world applications for companies and regulators.

The Ability of Control Variables Morality and Environmental Pressure on Decision Making in Maintaining Business Sustainability

Research Purposes: The purpose of this study is to test and analyze the direct and indirect relationships between the variables of decision-making quality and business sustainability.
 Research Methods: The research used quantitative methods, with SEM-PLS analysis test and data collection techniques using simple random sampling survey.
 Research Originality: This study develops previous research, by adding morality variables as new variables in the hope that it can make an important contribution to business organizations in Indonesia.
 Findings: The findings of this study conclude that the quality of decision-making has a significant effect on business sustainability and the variables of morality control and environmental pressure are found to be able to control the strong relationship between the variables of decision-making quality and business sustainability.
 Implications: These findings remind all interested parties in the preparation of financial statements that accounting morals and ethics are essential to ensure the integrity, reliability, and transparency of financial information produced by accounting professionals that is useful for stakeholders in decision making.
 Limitations: In this study, the sample used was only selected based on the simple random sampling method, so the detailed criteria of the respondents used (accounting managers) were not specifically targeted at one of the industries in the Yogyakarta area.

Actio Pauliana Principle in Indonesian Business Law

In reality, the debtor who will be sentenced to bankruptcy, often avoids the legal consequences of the decision by transferring his assets to another party to ensure the creditor does not fully get his rights back. Therefore, in the bankruptcy law regulation, it is stated that the legal instrument for the Creditor (through the Curator) who feels aggrieved by the Debtor's legal actions is to file a lawsuit in the form of canceling the transaction. Such legal instruments are known as actio pauliana. Previously, actio pauliana was regulated in various legal rules, such as the Civil Code, Faillissements-Verordening, and Law no. 4 of 1998 concerning Bankruptcy. But nowadays, actio pauliana is regulated in Law no. 37 of 2004 concerning Bankruptcy and Postponement of Debt Payments. Actio pauliana can be carried out against the debtor's legal actions that harm the creditor in relation to affiliation, grants, and debt payment. In its journey, actio pauliana did not run effectively, because not all creditors (cq. curators) used this instrument to reclaim their rights that had been harmed by the debtor. problem is the difficulty of proving the actio pauliana and legal protection for third parties who transact with the debtor.