Manufacturing Industry In Indonesia Research Articles

Proportion of exported non-oil and gas commodities for manufacturing industries, case study in the City of Cilegon

Export activities are important to the economic growth of the country, especially for developing countries. The city of Cilegon in Banten Province is the main city for the manufacturing industry in Indonesia, mainly for its iron and steel products. This study aims to determine the proportion of exported goods for the manufacturing industry in the City of Cilegon and make suggestions for further development. Data used are BPS publications 2016-2020, LQ is calculated to know the basis of the economic sector in the city. According to the calculation, the manufacturing industry in the City of Cilegon shares 59.70%, the highest among other regions. Commodities that dominated the export trade are footwear, plastic products, iron and steel products, while the US, China, and Japan were the countries that had the highest FOB. To escalate export performance and intensity, it is necessary to consider market and competitors’ networks, improvement of education and transport infrastructure, along with environmental and social-cultural impacts.

The effect of knowledge spillover on productivity: Evidence from manufacturing industry in Indonesia

In this study, we analyze the effect of knowledge spillover on productivity in the Indonesian manufacturing industry from 2010 to 2014 using inter-sectoral linkages and inter-regional linkages. For...

Azərbaycan və İndoneziya nümunəsində enerji siyasəti və iqtisadiyyat

Indonesia is the developed countries that have embarked on projects and energy strategies to increase renewables energy since it largely addressed political, economic and environmental goals in their energy security policies. Indonesia concern in energy sector with three parameuteurs, called P4M (Promosi Perlindungan dan Penanaman Modal) or Promotion and Protection of Investments. The OIC and NAM are the organizations that Azerbaijan and Indonesia are involved in. One of the problems discussed therein is the energy sector. Currently Indonesia and Azerbaijan tried to reduce energy dependence and to achieve environmental sustainability. Policy makers need to pursue a strategy of informing the public with sound evidence while being open about energy policy in general. Indonesia and Azerbaijan have 5 bilateral agreements. First, opening of RI-Azerbaijan Diplomatic Relations. Second, Cooperation and Consultation between Foreign Ministries. Third, cooperation between News Agencies. Fourth, Visa Exemption for Diplomatic and Service Passport Holders. Fifth, Economic and Technical Cooperation (KSET). The trade balance between the two countries is still dominated by the oil and gas sector, and does not yet reflect the real potential they have, either because trade has so far been through a third country due to the absence of direct sea/air routes, or the lack of market penetration by the Indonesian manufacturing industry. The potential for cooperation that can be worked on between Indonesia and Azerbaijan is in the oil and gas sector given that Azerbaijan is rich in both natural resources. Currently the two countries are consolidating the finalization of the P4M (Promotion and Protection of Investments Indonesia needs to encourage bilateral cooperation in the energy sector, especially oil and gas based. The best collaboration model is to ensure government-to-government long term purchase/contract.

Factors Affecting Book-Tax Differences in Indonesian Manufacturing Industries

The motivation behind this investigation was to decide the effect of earning management (Ern Mgt) and tax management (Tax Mgt) on book tax differences (BTD) and audit fees (Aud Fee) to moderate the effect of Ern Mgt and Tax Mgt BTD. Research affixes secondary data in the form of annual financial reports of manufacturing entities 2015-2019 period which are recorded on the Indonesia Stock Trade. the study sample selection method used purposive sampling with model. The number of samples used was 112 in five years (2015-2019). Data processing was performed using path analysis techniques at significant rank 0.05. the uniqueness of this study a moderating variable, namely the audit fee, with the consideration that. audit fees have an impact on the preparation of financial reporting. research results explain that Tax Mgt take effect on BTD. Tax Mgt provides input to companies to carry out tax planning based on tax law in order to embezzle taxes sanctions and make tax payments efficient. However, Aud Fee do not significantly strengthen the relationship between earning management Tax Mgt on BTD.

Impact of provincial human capital on TFP growth through the FDI channel: The case of Indonesian manufacturing industries

Impact of provincial human capital on TFP growth through the FDI channel: The case of Indonesian manufacturing industries

Modelling the continuous innovation capability enablers in Indonesia’s manufacturing industry

PurposeThe purpose of this paper is to identify and screen continuous innovation capability enablers (CICEs) in Indonesia’s manufacturing sectors, develop a relationship among these enablers and determine their driving power and dependence power in the sector.Design/methodology/approachThe initial CICEs identification process is based on a literature review, while a fuzzy Delphi method (FDM) was used for the screening process of CICEs. Total interpretive structural modelling (TISM) was used to develop contextual relationships among various CICEs. The results of the TISM are used as an input for the matrix of cross-impact multiplications applied to classification (MICMAC) to classify the driving power and dependence powers of the CICEs.FindingsThis paper selected 16 CICEs classified in seven dimensions. TISM results and MICMAC analysis show that leadership, as well as climate and culture, are enablers with the highest driving power and lowest dependence powers; followed by information technology. The results of this study indicate that efforts to continuously develop innovation capabilities in the Indonesian manufacturing industries are strongly influenced by their leadership capability, climate and culture, also information technology-related capability.Practical implicationsThe framework assessed in this study provides business managers and policymakers to obtain a bigger picture in developing policies with evidence-based strategy and priority in regard to continuous innovation capability.Originality/valueThe results will be useful for business managers and policymakers to understand the relationship between CICEs and identify key CICEs in Indonesia’s manufacturing sectors, which were previously non-existent.

Dampak Spillover Penanaman Modal Asing terhadap Produktivitas Industri Manufaktur Medium-High Technology di Indonesia

This study examines the impact of foreign presence in the Medium-High and High technology manufacturing industry in Indonesia. Using a balanced panel data that consists of 2,397 firms and in the year of 2010-2014, the data was estimated using the multiple regression method. The results show that there is positive spillover when local and foreign firms are in the same industry. Conversely, in different industries, negative spillover occurs in forward linkage when local firms buy the output of foreign firms and no spillover occurs in backward linkage when local firms become the suppliers of foreign firms. The Indonesian government must assure that foreign investment policies must benefit the domestic companies, considering there are some potential losses for domestic enterprises by the presence of foreign direct investment in the domestic market.

The Function of Tax Amnesty to Strengthen Corporate Taxes, Case Study of Indonesia's Manufacturing Industry

The purpose of this study was to examine and analyze: the effect of market performance on corporate tax, examine and analyze the influence of corporate governance on corporate tax, the effect of tax audit on corporate tax, the role of Tax amnesty in moderating relations between market performance and corporate tax, the role of Tax amnesty in moderating corporate governance relationship, and corporate tax, Tax amnesty in moderating the relationship between tax audit and corporate taxThis research model uses panel regression. The unit of analysis is an open company (corporate taxpayer), with a purposive sampling sample, namely taxpayers registered in the Large Taxpayers KPP Two of 44 companies in the period 2014-2017The results showed: Market performance has a positive effect on corporate tax, this shows that the higher market performance as measured by tobins q, the corporate tax will increase; Corporate governance has a positive effect on corporate tax, this shows that the higher the corporate governance index, the corporate tax will increase; Tax audit has a positive effect on corporate tax, this shows that the more there is an examination of the tax, the corporate tax will increase; Tax amnesty strengthens the influence of market performance on corporate tax, because the tax amnesty has a positive influence on the relationship between market performance and corporate tax with a type of pure moderation; Tax amnesty strengthens the influence of corporate governance on corporate tax, tax amnesty has a positive influence on the relationship between corporate governance and corporate tax with a type of pure moderation; Tax amnesty strengthens the effect of tax audits on corporate tax, because tax amnesty has a positive influence on the relationship between tax audits and corporate tax with pure types of moderationModeration of tax amnesty can strengthen the influence of market performance, corporate governance and tax audit on corporate tax.

Efficiency of Palm Oil Companies in Indonesia: A DEA Approach

The purpose of this study was to investigate technical, allocative, cost and scale efficiency of palm oil companies in Indonesia. The data used cross sectional data on Indonesian Manufacturing Industries that were collected in the annual surveys by Indonesia’s Central of Statistics/BPS for 2015 which is registered under KBLI code 10431. Data envelopment analysis (DEA) is a nonparametric method in operations research and economics for the estimation of production frontiers. It is used to empirically measure productive efficiency of decision making units (DMUs). The input of the palm oil production system are capital, labor, materials, land and energy. While output include industrial product in terms of CPO/PKO and biogas. The finding shows that Riau Island, North Sulawesi and Papua have high score of efficiency in terms of TE, AE, CE and SE, while West Java and Banten province at low level in terms of cost and allocative efficiency. Nevertheless, on nationwide the score of allocative and cost efficiency still low. Hence, all the input efficiencies still need to be improved, and also reduce cost of production. Beside that, the companies should make an improvement by enhancing management capabilities and improving allocation efficiency.

The Effect of Providing Government-Borne Import Duties Facility on the Growth and Competitiveness of Indonesia

This research has its aim to study the effect of providing Government-Borne Import Duty facility on the growth and competitiveness of Indonesia's manufacturing industry. The growth of the manufacturing industry is identified with the growth of production, employment, and contribution to state income through taxes. The background of this research is the existence of government's need to find the effect of the provision of exemption from import duties that have been running since 2008 on the ability of companies to produce goods in order to meet consumer needs, competitiveness, employment, and their contribution to state income. The survey was conducted on 110 companies that use this facility in Indonesia. The research applied the statistical method of sign and percentage test with the unit of analysis at the company and target sector, and groups of companies that receive GBID facility with different frequencies. The results show that the provision of the facility significantly increase the growth and competitiveness of Indonesia's manufacturing industry, especially in production growth, the competitiveness of production costs, sales growth, profits, and company productivity. This facility has different effects on companies under different target sectors. More companies under the guidance of Directorate General of MMTEI experinence innovation raising, time-to-market competitiveness, and machine modernization after being given this facility, while more companies under the guidance of Directorate General of CTMI experience production growth, competitiveness raising in production costs, quality, delivery time, sales growth, productivity, human capital, absorption of production labor, and tax payments. The reason related to this case is the existence of difference in production, product standardization, product cycle times, and technological intensity. The results also show that the difference in frequency of facilitation given only affect in rising the competitiveness of the company's products’ price. Related to the nature of production, GBID facility is more suitable to be given to companies that have production plans rather than companies that only do the task based on project or job orders. It is because the companies that have production plan could do the job with more optimal results than those who don’t.

Practical Approach of Environmental Awareness to Broadening Community Participation: A Case Study of Pindad (Persero)

The purpose of this study is to discuss the activity in the manufacturing industry, consisting of energy efficiency and responsible resource consumption to reduce waste emitted to the environment, taking into account the life cycle thinking. Manufacturing industries, both in commercial and strategic defense sectors are in trends to start their changing paradigm on environmental management. PT Pindad (Persero) as one of national manufacturing industry in Indonesia has been initiated related programs for the last few years. Starting year of 2020, the industry have implemented new transformation on energy and environmental preservation program, which also simultaneously conducted in community development area. This paper has collected both primary and secondary data depending upon onsite data availability. Data is obtained in several related divisions that responsible to do monitoring periodically. Therefore, range of data used in this paper started from 2018 onwards. Results shows that life cycle thinking of the Weapons Division consist of Design, Development, Manufacture, and Assembling activity, have potential impact in wastewater toxicity and air emission. This impact somehow drives the industry to reports the improvement program comprehensively, mainly in manufacturing area. Moreover, in the same objectives to spread environmental concern, the industry also conducted ex-situ conservation and land rehabilitation, while also develop awareness on environmental, safety, and health aspect to the long-run community empowerment.

The Role of Ownership in Increasing Firm Value of Manufacturing Industry in Indonesia

This study examines the effect of the independent commissioner’s composition, audit committee, firm size, and profitability toward the value of manufacturing companies listed in the Indonesia Stock Exchange. The population of this research is manufacturing companies listed in the Indonesia Stock Exchange (IDX) from 2013-2015 that reported a complete annual report and published in the Indonesian Capital Market Directory. Researchers used a purposive sampling method and employed 208 companies as samples, and data processing in the study used multiple linear regression. Findings. This study find that the independent commissioner’s composition and Audit Committee has no significant effect on firm value. Finding also shows that firm size and profitability has a positive significant effect on firm value. Based on those findings, investors have to use financial information, especially financial reports, as information for long-term investment decisions. The finding may be useful for the listed companies in Indonesia Stock Exchange since they must know their size and profitability, and those variables are important to enhance their value.

Export orientation of Indonesia’s manufacturing industry

The aim of this study is to analyze the export orientation of the manufacturing industry sector in Indonesia. In order to achieve this objective, Cobb-Douglas production function, consisting of foreign direct investment (FDI) and labor, was developed. The data from the Industrial Survey conducted by the Central Bureau of Statistics (Badan Pusat Statistik/BPS) for the period 2005-2015 with 249 manufacturing companies as samples. Based on the Hausman test, the fixed-effect model is more appropriate to be used in this study. The results from the estimation indicate that FDI and labor have a positive and significant impact on the growth of the export manufacturing industry. Labor has a stronger effect on exports than on FDI, where the coefficient of labor is 3.696 and of FDI is 0.302. On the basis of this result, it could be concluded that FDI and labor lead the export orientation to the Indonesian manufacturing industry.

Transfer Pricing on Intra-Group Financing in the Manufacturing Industry in Indonesia – An Essay on Tax Court Decisions (2014-2019)

The manufacturing industry has become the leading sector in Indonesia but also the most common source of transfer pricing disputes. The excessive payment of interest expenses that has caused the MNEs to suffer from years of consecutive losses remains questionable, compounded by the illogical debt-to-equity ratio. The Indonesian government formally introduced a set debt-to-equity ratio in 2016 for the second time. Its first introduction in 1983 was revoked in 1984 in a bid to attract foreign investors. Currently, an entity has to meet the enforced Indonesian anti-abuse rule, arm’s length principle and debt-to-equity ratio.

Implementation of Statistical Process Control through PDCA Cycle to Improve Potential Capability Index of Drop Impact Resistance: A Case Study at Aluminum Beverage and Beer Cans Manufacturing Industry in Indonesia

Purpose: The purposes of this study are first, to analyze why the process capability index (Cpk) for drop impact resistance (DIR) does not meet the specification or less than 1.33, and second, to find out what improvements should be made to make it meet the specification.Methodology/Approach: The methodology used was Statistical Process Control (SPC) through the PDCA cycle, supporting with Cause and Effect Diagram (CED), Nominal Group Technique (NGT) and “why, what, where, when and how (5W1H)” method.Findings: With the above methods, the result of the study was given a positive impact on the company. The average of DIR was increased from 20.40 cm to 25.76 cm, increased by 26.27% and the standard deviation was reduced from 1.80 to 1.48, and then the Cpk index was increased from 0.48 to 1.79 it means the process is in control and capable.Research Limitation/implication: This research was limited only on the two-piece can aluminum cans manufacturing process, no for three-piece cans manufacturing. SPC through PDCA cycle is an interesting method for continuous improvement of process capability in the cans manufacturing industry.Originality/Value of paper: This study highlights the area of future research SPC through the PDCA cycle to analyze and optimize process capability. Therefore, this research is considered to promote and adopt high-valued methodologies for supporting industry to achieve global competitive advantages.

Determinants of Carbon Emission Disclosure

This research aims to analyze the determinants of carbon emission disclosure. These determinant factors consist of family ownership, financial slack, social reputation, and industry regulation. The study used 537 observations from 179 samples of public companies in natural resource and manufacturing industries in Indonesia for the year 2012- 2014. The result of this research shows that the average level of carbon emission disclosure is only 6, 25%, which indicates that the awareness about carbon emission issues is still low. The regression result shows that financial slack, social reputation, and industry regulation have a significant positive effect on the carbon emission disclosure level, whereas the family ownership has an insignificant effect on the carbon emission disclosure level. This research can be used as a reference by the regulators and companies for creating regulations and policies to reduce and disclose the companies’ carbon emission in order to achieve the national emission target.

Towards understanding changes in management accounting in the manufacturing industry in Indonesia

This study aimed to investigate the perceptions and understanding of manufacturing industry managers in Indonesia in an effort to measure the effectiveness of management accounting changes, especially under the conditions of environmental uncertainty. In this study, a research questionnaire was used, and was sent directly to the respondents through surveyors and email to 389 manufacturing companies. The sampling technique was simple random sampling. Statistical techniques were based on Confirmatory Factor Analysis and descriptive analysis, namely mean and mode. The results of this study provide a theoretical contribution that the success of management accounting practices is caused by the application of the right organizational structure and strategy within the company. The areas of expertise, commitment, participation, and existing human resources are well managed in accordance with the company's vision and mission. It is expected that the company's management would be able to deal with environmental changes in improving its performance by changing management accounting practices

Eksperimen Optimasi Kekerasan Paduan Kuningan dengan Metode Desain Faktorial 33

Brass material is widely used by SME industries in Indonesia including the gamelan industry, the pottery industry, and the handicraft industry. This research aims to improve the quality of brass material which is a combination of copper and nickel material. The ability of the manufacturing industry in Indonesia in processing mining raw materials with good quality is still low. There has not been a specific effort to improve quality through research and development. The long-term goal of this research is to build excellence in the material field in Indonesian industries. This advantage is very important for industries in Indonesia to compete globally. The method used is a 3 variable factorial design (temperature, temper time, cooling media) with each of 3 levels (33) to determine the most influential factors and improve product quality so that the highest level of product hardness. From the results of data processing obtained from the three factors that have a significant effect and settings that provide the greatest level of violence viz

The Mediating Role of Employee Engagement between Team and Co-worker Relation, Work Environment, Training and Development and Employee Performance

Employee performance has been the major issue now a day in the manufacturing organization of Indonesia. Management is giving more focus to obtain more performance through adopting new technologies but no avail. The current study discussed this issue how to enhance employees’ performance. The main aim of this study is to examine the mediating role of employees’ engagement between team and co-worker relations, training and development, work environment and lastly with employee’s performance. This quantitative study used cross-sectional design. Population is selected from the Indonesian Manufacturing industry. Adapted questionnaire would be used to collect the response from the respondents. 300 questionnaires distributed to get the data. PLS (AMOS) 3.0 Version is used to do data analyze. The findings of the study show that employees’ engagement has significant relation between TCR, TD and WE and EP. The conclusion of the study shown that manufacturing company especially the food industry can use to maintain the employee’s performance, by paying more attention to training and development, sustaining good relation with team and co-workers and work environment that the employees get, in order to achieve business objectives and then raise competitive advantages in Indonesian manufacturing industry.

The integration of social responsibility into business operation: case study of Indonesian manufacturing industry

Prior studies argue that CSR should be integrated with business operations to get its benefits. However, the empirical research on how CSR and business operations can be incorporated is still limited. This study aims to investigate how to integrate CSR and business operations and to identify the impact of such integration on company performance. Using a sample of 342 manufacturing companies in Java, Indonesia, PLS-SEM was employed to create a path model depicting the relationships between functional integration and company performance. The results showed that Cost, Quality, Supplier, and Employee, have significant positive relationships on company performance, while Innovation and Customers have no impact on company performance.