Manufacturing Industry In Indonesia Research Articles

The Effect of AI-Based Technology Implementation, Green Energy Sustainability, and Product Innovation on Economic Growth of the Manufacturing Industry in Indonesia

This study investigates the effect of AI-based technology implementation, green energy sustainability, and product innovation on the economic growth of the manufacturing industry in Indonesia. Using a quantitative research approach, data were collected from 120 manufacturing firms and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS 3). The results show that AI-based technology has the strongest positive impact on economic growth, followed by green energy sustainability and product innovation. AI-driven technologies optimize operations, reduce costs, and enhance decision-making, contributing significantly to the economic performance of firms. Green energy sustainability promotes long-term growth by reducing operational costs and improving environmental performance. While product innovation positively influences growth, its impact is relatively weaker, indicating the need for complementary factors. These findings provide insights for policymakers and industry leaders to focus on technological advancement, sustainability, and innovation as drivers of economic growth in Indonesia’s manufacturing sector.

The Influence of Macroeconomic Variables on Foreign Direct Investment in the Manufacturing Industry Sector in Indonesia

The purpose of this research is to examine the effect of macroeconomic variables in the form of economic growth, inflation, exchange rates, interest rates, and the money supply on Foreign Direct Investment in the manufacturing industry sector in Indonesia and see whether the presence of the Covid -19 pandemic has affected FDI in the manufacturing sector in Indonesia. Indonesia in the short and long terms. This research was conducted for 13 years every quarter, starting in 2010-2022, because, since 2010 until now, the manufacturing sector has made the most significant contribution to Indonesia's GDP. This study was analyzed using Autoregressive Distributed Lag (ARDL) with a dummy variable. The research results show that short-term economic growth increases FDI in Indonesia's manufacturing sector. The variables of inflation, interest rates, total money in circulation, and the COVID-19 pandemic have implications for reducing FDI flows in the manufacturing sector in Indonesia. Meanwhile, the exchange rate does not significantly affect FDI in Indonesia's manufacturing sector. In the long term, economic growth and inflation variables increase the flow of FDI in the manufacturing sector. Interest rates have had the effect of reducing FDI flows in Indonesia's processing industry sector. Meanwhile, the exchange rate, total money in circulation, and the COVID-19 pandemic have no long-term impact on FDI in Indonesia's manufacturing industry sector in the long term.

COLLABORATION ON RESEARCH METHODOLOGY TRAINING THROUGH VISITING MALAYSIAN PROFESSORS FOR LECTURERS IN INDONESIA

Improving the quality of research and development in the manufacturing industry is the main focus in the community service entitled "Collaborative Research Methodology Training Through Visiting Professor Malaysia for Lecturers in Indonesia". The initiation of this collaboration was carried out by the Politeknik Indonusa Surakarta, Pancasakti University Tegal, and STT Warga as a response to concerns about the quality of research by lecturers and students in Indonesia. Through research carried out by lecturers and students, whether in final assignments, theses, theses or dissertations, it is hoped that there will be increased academic activity and a deeper understanding of current developments in the manufacturing industry. In order to achieve this goal, this program involves visiting professors from Malaysia to provide research methodology training to lecturers in Indonesia. Through this collaboration, it is hoped that synergy will be created between the visiting professor's experience and knowledge and the local Indonesian context. It is hoped that this training will be able to improve the quality of research carried out by lecturers, so that it can make a positive contribution to the development of the manufacturing industry in Indonesia. Thus, this collaboration is a strategic step in improving academic quality and research contribution to the development of the manufacturing industry in Indonesia.

The Structure-Conduct-Performance Paradigm in the Indonesian Manufacturing Industry

This study examines the structure, conduct, and performance (SCP) of the Indonesian manufacturing industry, contributing the most to the national economy from 2017 to 2021. The research employed SCP analysis, which entails evaluating market concentration using the Herfindahl Hirschman Index (HHI) and analyzing market performance and industry behavior utilizing literature reviews. Based on Indonesian Central Statistics Agency groupings, the sample data covers 23 sub-sectors of the manufacturing industry. The results of the HHI calculations also show that the concentration of the manufacturing industry market is at a moderate level, mergers and acquisitions that result in moderate market concentration of HHI enhancements will raise anti-competitive concerns and will require further analysis and often require scrutiny. Hence, requiring proper supervision and strategy in developing competitiveness amidst global uncertainty. The conduct and performance of the manufacturing industry show an effort to grow better amid fairly tight global competition. Therefore, it is necessary for a number of parties to play a part in boosting productivity and the competitiveness of goods produced by the manufacturing sector. Governments should reduce their direct intervention in the market by implementing industrial policies and seeking market-oriented policy means to influence the economy.

The Effect of IoT Technology, Real-Time Analytics, and Digital Asset Management on Energy Efficiency and Productivity in Indonesia's Manufacturing Industry

This research investigates the impact of IoT (Internet of Things) technology, real-time analytics, and digital asset management on energy efficiency and productivity in the Indonesian manufacturing industry. A quantitative approach, employing structural equation modeling (SEM) with Partial Least Squares (PLS) 3 software, is utilized to analyze survey data collected from manufacturing firms across different sectors and sizes in Indonesia. The results reveal significant positive relationships between digital technologies (IoT, real-time analytics, digital asset management) and energy efficiency/productivity. Specifically, Digital Asset Management, IoT Technology, and Real-Time Analytics are found to have statistically significant effects on enhancing energy efficiency and productivity levels in Indonesian manufacturing operations. These findings underscore the transformative potential of digital technologies in driving operational performance and sustainability in the manufacturing sector. Policymakers, industry stakeholders, and practitioners can leverage these insights to inform strategic decision-making and investments in digital infrastructure, workforce development, and regulatory frameworks to foster innovation and competitiveness in the Indonesian manufacturing landscape.

The Impact of Green Intellectual Capital on Financial Performance: Case of Indonesian Manufacturing Industry During Pandemic

The Impact of Green Intellectual Capital on Financial Performance: Case of Indonesian Manufacturing Industry During Pandemic

Supplier Selection Analysis for Sand Materials Using AHP in the Indonesian Manufacturing Industry

Supplier Selection Analysis for Sand Materials Using AHP in the Indonesian Manufacturing Industry

Discovering the Intriguing Dynamics of Transfer Pricing: Tax Burden, Foreign Ownership, and Company Size

ownership, and company size on transfer pricing practices within the mining subsector of manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2022. Through purposive sampling, 35 datasets out of a total population of 40 companies were selected for analysis. Multiple linear regression served as the analytical tool, and hypothesis testing was executed using SPSS version 25 software. The findings underscore that both tax burden and foreign ownership wield significant influence over transfer pricing practices. Notably, companies exhibit a propensity to leverage transfer pricing as a strategic tool for tax burden management, particularly in instances of heightened foreign ownership. Interestingly, however, company size does not exhibit a significant impact on transfer pricing practices, suggesting that entities of varying magnitudes within this subsector tend to adopt analogous approaches to transfer pricing policies. These findings are pivotal for both regulatory bodies and corporate managers, as they provide valuable insights into the factors shaping transfer pricing practices. Moreover, the formulation of tax policies geared towards fostering transparency and equity in business operations. By comprehensively understanding the dynamics at play in transfer pricing, stakeholders can navigate regulatory landscapes more adeptly and devise strategies that promote fairness and compliance within the realm of taxation. This study thus contributes to the broader discourse on tax policy and corporate governance, offering a nuanced understanding of the intricate relationship between tax structures, ownership dynamics, and corporate practices within the mining subsector of Indonesia's manufacturing industry.

The Effect Of Growth Opportunity and Profitability On Company Value On The Stock Exchange Indonesia (BEI) Period 2018-2022

Based on data from the United Nations Industrial Development Organization (UNIDO), Indonesia is the country with the most influential manufacturing industry value in the world, but from the other side, based on data, the growth of the manufacturing industry in Indonesia experienced a significant decline in 2020, this is due to the condition of the closure of the capital structure and the impact The Covid-19 pandemic has weakened the value of investment in manufacturing industry companies, which has an impact on growth opportunities. Apart from that, the profitability of manufacturing industry companies has weakened, potentially leading to a decline in company value. Therefore, the aim of this research is to understand the factors that influence the value of manufacturing industry companies. Through capital structure as an intervention, the data used in this research is secondary data used in the form of annual financial report data of manufacturing companies for the 2018-2022 period obtained from the Indonesia Stock Exchange (BEI) website, namely www.idx.co.id with the sample size using Purposive sampling is based on criteria so that from 236 companies we get a sample of 115 companies. The analysis method used is descriptive statistical analysis, panel data regression analysis, and Sobel test using e-views version 10. Analysis of manufacturing company data on the 2018-2022 BEI shows that the effect is significant. direct negative impact on capital structure.

The Influence of Green Leadership and Entrepreneurship on the Sustainability of Manufacturing Companies: Mediation of Green Innovation and Knowledge Management

<em>The industrial sector is one of the main contributors to Indonesia's economic development and GDP. However, the growth of the manufacturing industry cannot be separated from negative effects such as waste or emissions produced. The industrial sector is under pressure to immediately reduce the impact of its production emissions and waste on the environment. It needs to transform in a greener direction to improve the company's sustainability performance which consists of 3 aspects, namely economic, environmental, and social. This research will examine the influence of green transformational leadership, knowledge-oriented leadership, and green entrepreneurial orientation on corporate sustainability performance through the mediating role of green innovation and knowledge management processes. The research will be carried out using qualitative methods on 133 manufacturing industries in Indonesia with Structural Equation Modeling (SEM) analysis with the Partial Least Square (PLS) method to test the hypothesis. The results of this research show that the role of mediation has a positive influence on the company's sustainability performance, especially the knowledge management process which can act as a mediator between green transformational leadership, knowledge-oriented leadership, and green entrepreneurial orientation and the company's sustainability performance.</em>

How Tax Compliance, Audit Quality, and Financial Reporting Quality on Corporate Financial Performance in Manufacturing Companies

Within the framework of Indonesian manufacturing enterprises, this study explores the intricate links between tax compliance, audit quality, financial reporting quality, and firm financial performance. Using Structural Equation Modeling with Partial Least Squares (SEM-PLS), a sample of 175 firms was examined. The effect of these variables on financial performance was evaluated using correlation analysis, hypothesis testing, and descriptive statistics. The findings show a strong positive correlation between business financial performance, financial reporting quality, audit quality, and tax compliance. This study adds to the body of knowledge by providing complex insights specific to the Indonesian manufacturing industry. These insights can be used by investors, policy makers, regulators, and firm management to enhance decision-making procedures and promote sustainable financial practices in the sector.

Analysis of the Impact of HR Development Policies, Work Culture, and Organizational Performance on Competitive Advantage in the Manufacturing Industry in Indonesia

This study investigates the impact of HR development policies, work culture, and organizational performance on competitive advantage within the manufacturing industry in Indonesia. A quantitative research approach was employed, utilizing a sample of 125 manufacturing firms. Data were collected through structured questionnaires administered to HR managers and employees. Structural Equation Modeling (SEM) with Partial Least Squares (PLS) regression was used for data analysis. The findings reveal significant positive relationships between HR development policies, work culture, organizational performance, and competitive advantage. Mediation analysis indicates that organizational performance partially mediates the effects of HR development policies and work culture on competitive advantage. The measurement model demonstrates satisfactory reliability and validity, and the estimated model fits the data well. Hypothesis testing confirms the significant positive effects of HR development policies, organizational performance, and work culture on competitive advantage. Overall, the study underscores the critical role of HR management practices, organizational culture, and performance enhancement strategies in driving competitive advantage in the Indonesian manufacturing industry.

The Implementation of Green Human Resource Management: A Survey on the Manufacturing Industry in Indonesia

This study investigates the implementation of Green Human Resource Management (GHRM) in the manufacturing industry in Indonesia, with a focus on achieving sustainable organizational performance. It addresses a research gap and develops conceptual models to advance sustainable development goals (SDGs), particularly in Indonesia, encompassing social, economic, educational, health, and environmental aspects. A survey method was employed, utilizing an associative quantitative approach with multivariate statistical techniques, specifically structural equation modeling partial least squares (SEM-PLS). The study involved 75 manufacturing enterprises in Indonesia's Karawang industrial district, with Managers or Supervisors serving as respondents. Data was collected using a questionnaire as the primary measurement instrument. The research falls under TKT 2 in terms of technology readiness, involving the formulation of a research model concept. Key findings suggest that the implementation of GHRM practices in the manufacturing industry positively impacts Green Intellectual Capital and contributes to sustainable organizational performance. Furthermore, the study underscores the importance of GHRM in enhancing environmental sustainability and organizational competitiveness within the Indonesian manufacturing sector.

The Influence of Asset Intensity, Employee Intensity, and Intellectual Capital on the Competitiveness of Manufacturing Industries: Cost Stickiness as a Mediating Variable

The low competitiveness of the Indonesian manufacturing industry is a current phenomenon causing a decline in Indonesia's manufacturing industry competitiveness ranking below that of Singapore, Malaysia, and Thailand. This indicates that Indonesia needs to enhance four factors: national economic performance, policy efficiency, business efficiency, and infrastructure. The purpose of this research is to examine the influence of factors affecting competitiveness. The data analysis technique used in this research is multiple linear regression analysis. The population in this study is companies listed on the Indonesian stock exchange. Data collection used purposive sampling method, with a total sample size of 212, with a sampling quota of 109 companies that have both sales increases and decreases annually. In this study, there are independent variables such as Asset Intensity, Employee Intensity, and Intellectual Capital, dependent variable Competitiveness, and mediating variable Cost Stickiness. The results of the research show that the variables of employee intensity and intellectual capital have an influence in this study, whereas asset intensity does not have an influence in this study. Additionally, Cost Stickiness has not been able to mediate the influence on Asset Intensity, Employee Intensity, and Intellectual Capital.

PENGENDALIAN KUALITAS PRODUK HPL MENGGUNAKAN METODE SIX SIGMA DAN FAILURE MODE AND EFFECT ANALYSIS UNTUK MENGURANGI CACAT DI PT TACO ANUGRAH CORPORINDO

The competition in the manufacturing industry in Indonesia is getting tighter, thus encouraging the industry to compete to improve the quality of its products. PT Taco Anugrah Corporindo is one of the manufacturing industries that produces HPL (High Pressure Laminate). In the production process, HPL produces several types of defects, the average for each type of defect still exceeds the KPI (Key Performance Indicator) set by the company. PT Taco Anugrah Corporindo wants the level of defects to be within the KPI range that has been set by identifying problems and repairing them. The purpose of this study is to reduce the number of defects. Six Sigma with the DMAIC method as a quality improvement to achieve the target of 3.4 failures per one million opportunities (DPMO). Using FMEA to Analysis the causes of the problem and recommendations for improvements. The results of this study found six types of potential CTQ, that is 71% PM, 11% PMLP, 7% BH, 5% DP, 4% Overlay and 3% TMB. The average calculation of the DPMO and Sigma Level values is 4,465 which is still far from 6 sigma. The causes of defects in products are caused by several factors such as humans, machines, methods, materials, and the environment. As for recommendations for improvement that can be given are the preparation of SOP and IK, training for operators, adjusting the machine by installing grounding and anti-static, monitoring work methods and maintaining the workplace.

Analysis of the Influence of Investment and Labor on Poverty Levels Through the Growth of the Indonesian Manufacturing Industry

This study aims to eradicate poverty by utilizing the manufacturing industrial sector, which cannot be separated from the influence of investment value and labor absorption. The analysis methods used are multiple linear regression and Vector Autoregression (VAR). The study employs quarterly secondary data from 1999 to 2022. The results of the analysis show that labor and investment partially have a significant and positive effect on the growth of the manufacturing industry. Moreover, by using a bivariate causality test, this study proves the existence of a two-way causal relationship between the economic growth of the manufacturing industry and poverty. Additionally, the study also analyzed the response of the independent variable to the dependent variable using Impulse Response (IRF) and Variance Decomposition (VD). It can be concluded that the economic growth of the manufacturing industry responds negatively to poverty, and poverty responds negatively to the economic growth of the manufacturing industry until both reach a balance. The contribution made by each variable in forming the value of that variable is different from one another. The implementation of good governance is highly expected in efforts to eradicate poverty in Indonesia, one of which is through increasing the economic growth of the manufacturing industry and then creating useful programs to increase investment and employment.

Analysis of the Impact of Organizational Culture, Employee Training, and Internal Communication on Employee Retention: A Case Study in the Manufacturing Industry in Indonesia


 This research investigates the impact of organizational culture, employee training, and internal communication on employee retention within the Indonesian manufacturing industry. Using a mixed-method approach, data were collected from 179 employees across various manufacturing firms in Indonesia. The results reveal significant positive relationships between organizational culture, employee training, internal communication, and employee retention. A strong organizational culture, effective training programs, and transparent communication channels were found to enhance employee satisfaction, engagement, and commitment, ultimately reducing turnover rates. Practical implications suggest that manufacturing firms in Indonesia should focus on fostering a positive culture, investing in training and development, and improving communication to retain talent effectively. These findings contribute to understanding the dynamics of employee retention in the Indonesian manufacturing context and provide actionable strategies for organizations aiming to enhance retention efforts and sustain long-term success.

Workplace design in Indonesian manufacturing small and medium-sized enterprises: Review and further research

Abstract Workplace design is an essential process for the manufacturing industry to realize a low manufacturing cost with high productivity and competitive advantage, as well as high employee performance and well-being. Although research on workplace design in the Indonesian manufacturing industry began more than 20 years ago, workplace conditions in the manufacturing industry, especially in small and medium-sized enterprises (SMEs) in Indonesia, have remained subpar, with high material handling costs. This review article aims to evaluate recent research on workplace design in the Indonesian manufacturing SMEs and explore possible directions for further research. The results of this review indicate that the research on workplace design in Indonesian manufacturing SMEs is mostly focused on the department area (micro-level), using systematic layout planning methods to improve material handling activities. Even though environmental conditions are unfavorable with low levels of occupational safety and health, research that consider these two in the process of designing workplace in Indonesian manufacturing SMEs is still limited. This review also shows the possibility of developing an integrated workplace design by involving environmental ergonomics and occupational safety and health in manufacturing SMEs.

The Importance of Digital Technology and Clustering for Innovation in MSEs. Evidence from Secondary Data in Indonesia

This paper explores the relationship between innovation and these two determinants in micro and small enterprises (MSEs) in the manufacturing industry in Indonesia, using secondary data. The key question in this research: is there evidence of the importance of DT and clustering for innovation capability in MSEs in Indonesia? The paper analyzes secondary data from Indonesia’s National Agency of Statistics and reviews key literature on innovation and digitalization in MSEs, and industrial cluster development in Indonesia. It is found that the number of industrial clusters of micro-, small-, and medium-sized enterprises (MSMEs) is concentrated on the island of Java, where more than 50% of the population is located, and is the most advanced region in economic development and industrialization in Indonesia. The majority of MSME clusters are in the food industry and woodworking industries. Only a very few of MSEs in the manufacturing industry use the Internet and do innovation. The type of innovation mostly is product innovation. Both relationships between MSEs doing innovation and MSEs using the internet and the total number of clusters are positive. But, statistically, only the relationship between the number of MSEs doing innovation and use of the internet is significant.

The Effect of Entrepreneurial Orientation on Performance Mediated by Innovation and Network Capability

The development of the woodworking industry in Indonesia can be a highlight in the business world. However, 2020 is a year that gives a different color to the business world. The entry of the COVID-19 outbreaks into Indonesia in the first quarter of 2020 caused all industrial sectors including the manufacturing industry in Indonesia to experience a decline. The aim of this research is to analyze the influence of Entrepreneurial Orientation on Performance mediated by Innovation and Network Capability (Study at UD. Kondang Jaya Furniture and UD. Aryajati Furniture). This research method is quantitative. The population in this study were employees of UD Kondang Jaya Furniture and UD Aryajati Furniture. The number of samples in this research was 100 respondents. The sampling technique uses non-probability sampling with purposive sampling technique. The data source used in this research is primary data. The data analysis technique in this research was carried out using SMARTPLS 3.0 software. This research uses Structural Equation Model (SEM) analysis with Partial Least Square (PLS). Entrepreneurial Orientation has a positive and insignificant effect on Performance. Entrepreneurial orientation has a positive and significant effect on innovation. Entrepreneurial Orientation has a positive and significant effect on Networking Ability. Innovation has a positive and significant effect on performance. This means that the fourth hypothesis is accepted. Network Capability has a positive and significant effect on Performance. Innovation can mediate the influence of Entrepreneurial Orientation on Performance positively and significantly. Network Capability can mediate the influence of Entrepreneurial Orientation on Performance positively and significantly.