Infrastructure Sectors Research Articles

Macroeconomic Imbalance, External Debt, and the Financial System in Laos

External public debt exacerbation and macroeconomic destabilization in Laos are attributed to the subsequent complications of excessive foreign capital investments in the mining, power, and transport infrastructure sectors during the economic boom of the 2010s. This study examines the Lao economy from three perspectives: real sector growth, the characteristics of external fundraising, and the domestic financial system. Our findings suggest that the external debt issue still appears to be under control, real sector growth is expected to be strong in the medium term, and the less‐developed financial system has not realized its potential for fiscal financing and macroeconomic stability.

Innovation Challenges in Infrastructure Cluster State-Owned Enterprises in Indonesia

Objective – In accordance with the direction of the Ministry of State-Owned Enterprises (MSOE), the Indonesia Infrastructure Research & Innovation Institute (I2RI), which has 10 BUMN members, has collaborated in developing research in the infrastructure sector. With different strategies and industrial backgrounds, they have opportunities and challenges to develop research that is beneficial to the common interest. Knowledge of existing challenges is required, using the gap analysis method of business size, management commitment, research & funding schemes, and research and innovation progress and achievements. Methodology – Identification of gaps is carried out by collecting and comparing data on revenue, assets, management commitment documents, research schemes, and funding, research units, business processes, core competencies, joint research programs, as well as technology adoption that each I2RI member has carried out, and also data on infrastructure market potential. Findings—It was found that all I2RI member companies still have gaps in terms of business size (revenue and assets), management commitment, technology mastery, and research and innovation capabilities. Apart from gaps, opportunities were also found in the supply chain circle and national infrastructure market that they could exploit. Novelty – This gap can be closed by being led by members who have financial stability and mature research collaboration & funding experience. Increased commitment is also needed to share knowledge and technology to equalize the understanding and maturity of all members. Type of Paper: Empirical JEL Classification: O31, H79, P13 Keywords: Gap Analysis; Research; Innovation; Collaboration; Challenges; Infrastructure. Reference to this paper should be made as follows: Wibawa, E.D; Sentosa, G.A; Saputra, R.A. (2024). Innovation Challenges in Infrastructure Cluster State-Owned Enterprises in Indonesia, J. Bus. Econ. Review, 8(4), 11–24. https://doi.org/10.35609/jber.2024.8.4(2)

The SDG conundrum in India: navigating economic development and environmental preservation

ABSTRACT The paper explores the complex interplay between economic development and environmental sustainability in the context of India’s pursuit of the Sustainable Development Goals (SDGs). It examines the inherent contradictions and trade-offs involved, particularly in agriculture, industrialisation, and infrastructure sectors. The paper highlights how economic growth, essential for improving living standards, often conflicts with environmental objectives. The paper underscores the importance of integrating economic, environmental, and social objectives to achieve a sustainable and inclusive future for India.

ANALYSIS FF FACTORS AFFECTING PROFIT GROWTH OF CELLULAR TELECOMMNUNICATION OPERATOR COMPANIES ON THE INDONESIAN STOCK EXCHANGE

A comparison will be made between the Current Ratio (CR), Net Profit Margin (NPM), and Return on Assets (ROA) in connection to the increase of profits in infrastructure-related cellular telecommunications operator enterprises (XL, Telkomsel, Smartfren, and Indosat) between the years 2016 and 2022. A number of tests are included in the research protocol. These tests are as follows: the Chi-Square test (CoW) for selecting a common effect model, the likelihood ratio test (LM) for selecting a random effect model, the Breusch-Pagan test for detecting heteroscedasticity, the Multicollinearity test for identifying multicollinearity, the regression test with the common effect model (CEM) for determining the effect of independent variables on earnings growth, and the coefficient of determination test for determining the ability of CR, NPM, and ROA to explain earnings growth variability. The data indicates that the activities of mobile telecom operator enterprises operating within the infrastructure sector had a positive influence on the increase of profits derived from CR, NPM, and ROA. In accordance with the results of the LM test, the Common Effect Model is more appropriate than the Random Effect Model. In addition, the Breusch-Pagan test shows the absence of heteroscedasticity in the model. Multicol test also confirmed the absence of multicollinearity problem in the analysis. This study provides important insights into the factors that influence earnings growth in the mobile telecommunications industry in the infrastructure sector. These results can assist company management in designing more effective financial strategies to achieve better earnings growth.

KUALITAS LABA PADA SEKTOR INFRASTRUKTUR KONTRUKSI BANGUNAN DAN JASA TELEKOMUNIKASI NIRKABEL DITINJAU DARI STRUKTUR MODAL DAN UKURAN PERUSAHAAN

Purpose: This study aims to determine the effect of Capital Structure and Company Size on Earnings Quality Design/methodology/approach: This research uses quantitative data, the sample in this research is infrastructure sector companies in the building construction and wireless telecommunications services sub-sectors listed on the Indonesia Stock Exchange in the 2018 – 2022 period, totaling 13 companies. The analysis technique used to test the hypothesis is multiple regression analysis using Eviews 9 software. Findings: The results of this study indicate that the Capital Structure variable has a positive and statistically insignificant effect on Earnings Quality, the Company Size variable has a positive and statistically insignificant effect on Earnings Quality. Originality/value: This research discusses Profit Quality and other factors such as Capital Structure and Company Size which focuses on infrastructure sector companies in the building construction and wireless telecommunications services sub-sectors.

FINANCIAL REPORTING FRAUD: AUDIT COMMITTEE AS MODERATION

This study aims to investigate the influence of the audit committee in moderating the association between financial targets, financial stability, changes in directors, ineffective supervision, optimal conditions of the company, changes in auditors, the CEO's photograph, government projects, political connections, and managerial ownership on financial statement fraud. When examining instances of financial statement fraud, it is important to take into account the involvement of the audit committee in addition to other variables. The Beneish M-Score Model is used to quantify financial statement fraud. The study focuses on analyzing a sample of 49 infrastructure sector companies listed on the Indonesia Stock Exchange (IDX) between 2020 - 2021. The analysis employs panel data regression analysis with 98 units, utilizing the EViews 13 analytical tool to test the hypothesis. The findings of this study indicate that a company's financial target significantly impacts the likelihood of financial statement fraud. Factors such as financial stability, changes in directors, monitoring, the company's ideal condition, changes in auditors, CEO photographs, government projects, political connections, and managerial ownership do not affect the likelihood of financial statement fraud. The presence of an audit committee has a moderating effect on the occurrence of financial statement fraud as each independent variable becomes less influential.

The Effect of ESG Disclosure, Audit Quality, Internal Audit, on Company Value

This study aims to examine the presence or absence of the effect of ESG Disclosure, Environmental Disclosure, Social Disclosure, Governance Disclosure, Audit Quality, and Internal Audit on Company Value. The population used in this study is companies listed on the IDX in several non-financial sectors, namely the energy, raw materials, health, industry, and infrastructure sectors in the 2020-2022 period that successively publish sustainability reports, annual reports, and financial statements for the fiscal year December 31. The total population in this study was 346 companies with the number sampled being 45 companies using purposive sampling techniques. The data was analyzed using regression panel data made into two models and processed using E-Views software version 9. The results of this study provide results that in model 1 ESG Disclosure, Audit Quality, Internal Audit partially affect Company Value. The results in model 2 provide results that Environmental Disclosure affects Company Value, Social Disclosure does not affect Company Value, Governance Disclosure does not affect Company Value, Audit Quality affects Company Value, Internal Audit does not affect company value. In model 1 and model 2, the Leverage control variable, ROE has a significant positive influence on Company Value, while Firm Size does not have a positive influence on Company Value

EU-China Economic Relations in the Early 21st Century

The European Union (EU) and China are two of the most influential and complex economies globally. The current state of their relationship is marked by a growing trade deficit for the EU with China, along with increasing Chinese investments in Europe's energy, technology, and infrastructure sectors. The EU has expressed dissatisfaction with China's treatment of foreign investors, limited market access for European companies, and government subsidization of domestic companies. Additionally, the EU has raised concerns about China's human rights record and its policies in Hong Kong, Taiwan, and mainland China. The partnership is expected to remain a key focus for the EU's economic outlook as both sides balance economic potential with geopolitical and security considerations. This report aims to identify and explain the primary issues, key areas for improvement, and mutual interests between the EU and China, while also proposing potential solutions to enhance their economic and trade relations. Informative articles, relevant papers, textbooks, and other sources support the discussion. Although the analysis is subjective, a quantitative methodology is also employed. The discussion presents a common interface and provides recommendations for enhancing financial relations, increasing exchange, financial and security relations, participating in and benefiting from two-way engagement, and enhancing EU-China relations.

Proposed Methodology for Climate Change Adaptation of Water Infrastructures in the Mediterranean Region

Water Infrastructure (WI) is one of the most important sectors of Critical Infrastructure (CI); it encompasses drinking water, wastewater, and stormwater. The WI is vulnerable to the effects of Climate Change (CC) that can disrupt its functionality; thus, it needs to be adapted to CC, especially in the Mediterranean region, where these effects are expected to intensify during the twenty-first century. For this adaptation a Climate Risk and Vulnerability Assessment (CRVA) is required in the development of WI to identify the important climate hazards and to recommend the required measures for the adaptation of the WI to these hazards. In the present work, a CRVA methodology is developed and presented based on a literature survey and the relevant European Commission guidelines; it is structured around five key steps: (1) Description of the WI, (2) Climate change assessment, (3) Vulnerability assessment, (4) Risk assessment, and (5) Assessment of adaptation measures. The application of the methodology is illustrated indicatively to a wastewater system in Greece for which preliminary estimations are performed, results are discussed, and conclusions are drawn. The proposed methodology can be modified for application to other sectors of CI; moreover, is a valuable resource in academic curricula and ongoing research initiatives.

A Systematic Survey on 5G and 6G Security Considerations, Challenges, Trends, and Research Areas

With the rapid rollout and growing adoption of 3GPP 5thGeneration (5G) cellular services, including in critical infrastructure sectors, it is important to review security mechanisms, risks, and potential vulnerabilities within this vital technology. Numerous security capabilities need to work together to ensure and maintain a sufficiently secure 5G environment that places user privacy and security at the forefront. Confidentiality, integrity, and availability are all pillars of a privacy and security framework that define major aspects of 5G operations. They are incorporated and considered in the design of the 5G standard by the 3rd Generation Partnership Project (3GPP) with the goal of providing a highly reliable network operation for all. Through a comprehensive review, we aim to analyze the ever-evolving landscape of 5G, including any potential attack vectors and proposed measures to mitigate or prevent these threats. This paper presents a comprehensive survey of the state-of-the-art research that has been conducted in recent years regarding 5G systems, focusing on the main components in a systematic approach: the Core Network (CN), Radio Access Network (RAN), and User Equipment (UE). Additionally, we investigate the utilization of 5G in time-dependent, ultra-confidential, and private communications built around a Zero Trust approach. In today’s world, where everything is more connected than ever, Zero Trust policies and architectures can be highly valuable in operations containing sensitive data. Realizing a Zero Trust Architecture entails continuous verification of all devices, users, and requests, regardless of their location within the network, and grants permission only to authorized entities. Finally, developments and proposed methods of new 5G and future 6G security approaches, such as Blockchain technology, post-quantum cryptography (PQC), and Artificial Intelligence (AI) schemes, are also discussed to understand better the full landscape of current and future research within this telecommunications domain.

Main Directions for Improving the Development of Social Infrastructure in the Kyrgyz Republic

The article discusses the problems and state of social infrastructure. The state fails to allocate a sufficient amount of funding for these sectors, in this regard, the main ways to improve the social infrastructure necessary for sustainable development in the Kyrgyz Republic are presented and described. These areas are structural elements in the overall process of modernization of the social infrastructure sector and are closely interrelated.

On approaches to designing the meanings in the economy of services of the infrastructure sector

Subject. The article investigates issues of creation and distribution of material wealth, the role of spiritual values in modern society. Objectives. The article aims at the analysis of consumer behavior model, rethinking K. Marx’s economic theory, taking into account modern economic realities. Methods. We apply methods of systems analysis. Results. The study establishes that in the modern economy, the share of services, which do not create new value, has increased. Conclusions. The findings can be used for designing programs to develop production and non-production sectors of Russian economy.

Mergers and Acquisitions in the Corporate Sector of the Russian Pipe Industry

The relevance of this study is determined by the significance of mergers and acquisitions as modern tools for expanded diversified growth, direct investment, production synergy, and overcoming the increasing risks of companies’ external environment. The work clarifies the content of mergers and acquisitions from the perspective of reorganization and business development, dominant and partial shareholder control. The high concentration of the Russian pipe industry is emphasized, which is due to the historical territorial concentration of key enterprises in the industry and modern trends of consolidation and movement towards a large-scale oligopoly in the domestic market. The mergers are based on signs of both vertical and horizontal integration, with a focus on creating a model of business units, each of which represents an enlarged production complex. The key driving force is recognized as the growing domestic demand for pipe products from enterprises in the oil and gas sector and municipal infrastructure in the context of the priorities of the national development strategy and the active state policy of project financing. A consistent combination of tight integration tools with technological cooperation programs with strategic counterparties has been proven. Signs of a merger were noted at the level of consolidation of internal assets of infrastructure divisions of large companies in the metallurgical industry.

Productivity development enablers in the infrastructure sector: capability maturity model integration approach

PurposeInsufficient productivity development in the global and Finnish infrastructure sectors indicates that there are challenges in genuinely achieving the goals of resource efficiency and digitalization. This study adapts the approach of capability maturity model integration (CMMI) for examining the capabilities for productivity development that reveal the enablers of improving productivity in the infrastructure sector.Design/methodology/approachCivil engineering in Finland was selected as the study area, and a qualitative research approach was adopted. A novel maturity model was constructed deductively through a three-step analytical process. Previous research literature was adapted to form a framework with maturity levels and key process areas (KPAs). KPA attributes and their maturity criteria were formed through a thematic analysis of interview data from 12 semi-structured group interviews. Finally, validation and refinement of the model were performed with an expert panel.FindingsThis paper provides a novel maturity model for examining and enhancing the infrastructure sector’s maturity in productivity development. The model brings into discussion the current business logics, relevance of lifecycle-thinking, binding targets and outcomes of limited activities in the surrounding infrastructure system.Originality/valueThis paper provides a new approach for pursuing productivity development in the infrastructure sector by constructing a maturity model that adapts the concepts of CMMI and change management. The model and findings benefit all actors in the sector and provide an understanding of the required elements and means to achieve a more sustainable built environment and effective operations.

Weather-related fragility modelling of critical infrastructure: a power and railway case study

Climate change has led to more frequent and severe extreme weather events, which impact critical infrastructure networks such as railway and power systems. Although infrastructure networks are interdependent, the analysis to understand the impact of weather events on infrastructure systems is usually performed in sector-specific silos. A methodology to examine how the same weather events affect different infrastructure sectors is presented, in order to understand cross-sectoral impact of extreme weather for interconnected regional infrastructure. Fragility modelling was used to examine the impact of temperature and rainfall on power and rail system failures using the West Midlands (in the UK) as a case study. The results demonstrated that the impact of temperature was broadly consistent across both infrastructure networks, showing less impact until specific upper and lower thresholds are passed; these thresholds were found to be similar for the different infrastructure networks evaluated, but railway infrastructure was found to be impacted more by lower temperatures. A growing correlation between the number of faults on power and railway systems was also found for both rainfall and temperature, indicating the value in coordinating preparation and planning efforts. For infrastructure operators and owners, regional resilience forums and other decision makers, this study provides an approach to assess the regional impact of extreme weather across multiple infrastructure sectors. The results give useful insights to inform the allocation of resources in response to extreme weather events.

Evaluating complementaries among urban water, energy, infrastructure, and social Sustainable Development Goals in China

Urban areas' performance in water, energy, infrastructure, and socio-economic sectors is intertwined and measurable through Sustainable Development Goals (SDGs) 6–13. Effective synergy among these is critical for sustainability. This study constructs an indicator framework that reflects progress towards these urban SDGs in China. Findings indicate underperformance in SDGs 8–11, suggesting the need for transformative actions. Through network analysis, the research reveals complementarities among these SDGs. Notably, the SDG space divides into socio-economic and ecological clusters, with SDG 6 (Clean Water and Sanitation) central to both. Additionally, SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure) act as bridges, while greater synergies exist between SDG 12 (Responsible Consumption and Production) and SDG 13 (Climate Action). An in-depth view at the indicator-level shows a core-periphery structure, emphasizing indicators like SDG 6.2 (Wastewater Treatment Rate) and SDG 6.6 (Recycled Water Production Capacity per capita) as pivotal. This study confirms the urban SDG space's stability and predictiveness, underscoring its value in steering well-aligned policy decisions for sustainable growth.

Pengaruh Net Profit Margin, Debt To Equity Ratio, Return On Equity Dan Dividend Payout Ratio Terhadap Harga Saham

This study aims to examine and analyze the effect of Net Profit Margin, Debt to Equity Ratio, Return On Equity and Dividend Payout Ratio on stock prices. So the research design used is causal research. The population of this research is all companies in the Infrastructure, Utilities and Transportation Sector Services Listed on the Indonesia Stock Exchange for the 2018-2020 period as many as 71 companies. The sample was taken by non-probability method with purposive sampling technique and obtained a sample of 12 companies that meet the criteria. The research data was taken from the financial statements and annual reports of each sample company, which was obtained from the official website of the Indonesia Stock Exchange, namely https://www.idx.co.id. The data was processed using SPSS with multiple linear regression method. Based on the tests that have been carried out, the results obtained that partially Net Profit margin and Dividend Payout Ratio have a positive effect on stock prices, while Debt to Equity Ratio and Return On Equity have no effect on stock prices.

Pengaruh Arus Kas Terhadap Financial Distress pada Sektor Infrastruktur yang Terdaftar di BEI

This study aims to determine the effect of financial distress of cash flow. The type of data used is secondary data. Data collection techniques in this research used documentation studies and literature studies. The data is obtained from Bursa Efek Indonesia. All financial data used in this research is expressed in Rupiah units. The population in this study is a company sector of infrastructure which are listed in Indonesia Stock Exchange for the period 2018-2022, with a total sample of 110(22x5) companies selected using the method purposive sampling and the grouped into two categories, namely 27 included in the category of financial distress and 83 included in the the category of non financial distress. The data analysis technique used is regression logistic analysis using SPSS verison 2.5 software. The result of the research concluded that operating activities of cash flow has no effect on financial distress, investment activities of cash flow has no effect on financial distress and financing activities of cash flow has a positive effect on financial distress.

Peran Kepemilikan Institusional dalam Memoderasi Pengaruh Kinerja Lingkungan, Paparan Media dan Leverage terhadap Pengungkapan Emisi Karbon

This research aims to determine the role of institutional ownership in moderating the environmental performance, media exposure, and leverage on carbon emission disclosure by incorporating firm size, age, and Stakeholders as control variables. The study utilizes a quantitative approach, analyzing secondary data, and focuses on companies in the energy sector, basic material sector, industrial sector, consumer non-cyclicals sector, and infrastructure sector listed on the Indonesia Stock Exchange from 2019 to 2022. Using purposive sampling, 165 observation samples were collected between 2019 and 2022. Data analysis employed multiple linear regression analysis using the SPSS program. The findings indicate that environmental performance and media exposure positively influence carbon emission disclosure, while leverage does not have a significant impact on carbon emission disclosure. Institutional ownership can strengthen the influence of media exposure on carbon emission disclosure but cannot reinforce the effect of environmental performance or weaken the impact of leverage on carbon emission disclosure.

Pengaruh Good Corporate Governance dan Financial Distress Terhadap Pengungkapan Laporan Keberlanjutan

The purpose of this study is to ascertain how audit committee size, board of directors size, independent commissioner size, and financial distress affect the disclosure of sustainability reports. The companies in the infrastructure sector listed on the IDX between 2020 and 2022 are the subject of this study. Purposive sampling was utilized in this study to choose the sample according to predetermined standards. The panel regression approach is used to process the data. The findings indicated that the size of the audit committee significantly impacted sustainability report disclosure, the size of the board of directors had no bearing on sustainability report disclosure, the size of independent commissioners significantly impacted sustainability report disclosure, and financial distress had no bearing on sustainability report disclosure. The study's findings suggest that businesses should disclose more about sustainability because the topic will be brought up more and more in the future.