Investment In Indonesia Research Articles

Analisis pengaruh keadaan ekonomi makro terhadap investasi Asuransi Jiwa Syariah di Indonesia tahun 2010 – 2019

This study aims to analyze the effect of Inflation, Exchange Rate, BI Interest Rate, Indonesia Composite Index on Sharia Insurance Life in Indonesia. Data used is time series data for 10 years (2010-2019) and analyzed by using Eviews 10. This research using quantitative descriptive method, and to analyze the effect of independent variables toward dependent variables using Ordinary Least Square technique. The result of t – test shows Inflation, Exchange Rate, Indonesia Composite Index have significant influence to Sharia Life Insurance Investment in Indonesia that t –test < 0,05 and Interest Rate doesn’t influence to Sharia Life Insurance Investment in Indonesia with t – test > 0,05. However, independent variables has a significant influence with the result of F test 0,000002 < 0,05 and Adjusted R-Squared test shows that 99,41 % of Sharia Life Insurance Investment in Indonesia is influenced by independent variables in this research

EFFORTS IN OBSTACLING THE PERFECTION OF INVESMENT LAW DEVELOPMENT IN INCREASING INVESTMENT IN INDONESIA

The purpose of this research is to find obstacles and obstacles to perfect investment law which is part of a strategy to increase investment in Indonesia. This research is a quantitative research. Where this research finds and describes obstacles in the development of Indonesian investment law for the better in an effort to increase investment in Indonesia for the better. The improvement of investment law development in Indonesia in accordance with the global order begins with Law No. 1 Year 1967 on Foreign Investment (PMA) and Law No. 6 of 1968 on Domestic Investment (PMDN), which is then followed by the issuance of Presidential Decree Number 29 Year 2004 concerning the Implementation of Investment in Foreign Capital Investment and Domestic Investment through One Roof Service System. The reconstruction of the capital investment law is conducted by the issuance of Law Number 25 Year 2007 regarding Investment which regulate domestic investment and foreign investment. The agency authorized to coordinate the implementation of investment in Indonesia is the Investment Coordinating Board (BKPM). The consideration of the appointment of BKPM as the only government agency that handles investment activities in the framework of PMA and PMDN is in order to increase the effectiveness in attracting investors to invest in Indonesia. Previous researches have not discussed the strategy of increasing capital investment so that it becomes the difference between this research and previous research (originality).

Problematika Online Single Submission Di Indonesia : Konflik Kewenangan Antara Pusat Dan Daerah

In order to facilitate the investment in Indonesia, the government of Indonesia issued the Government Regulation Number 24 year 2018 on licensing services attempted integrated electronically (OSS), this is done in order to increase the investment which is an important basis to improve the progress and welfare of the people of Indonesia, but the regulation on the OSS is apparently contrary to law No. 30 year 2014 about about. Government administration, and Law No. 9 year 2015 Second Amendment to Law No. 23 of 2014 on local government, this then resulted in a conflict between the legislation and regulations related to the authorization of business license, the author aims to examine and analyze the conflict of laws and regulations related to the authorization of business license by using normative juridical approach to find the legal certainty in the application of government Regulation Number 24 year 2018 concerning licensing services seeks electronically integrated (OSS).
 
 Key words: Investment, Online Single Submission, Conflict of authority

Comparing the impacts of fossil and renewable energy investments in Indonesia: A simple general equilibrium analysis

Increasing electricity capacity to support economic growth has become a national development priority in Indonesia. The construction of a power plant needs to consider not only economic but also social and environmental impacts because the government can choose between fossil-based and renewable energy-based power plants. Thus, the decision to invest in a particular type of power plant technology must consider sustainability criteria. Using the social accounting matrix, this study aimed to simulate the impacts of an investment in a coal-fired power plant and compare those to the impacts of investments in renewable energy-based plants (geothermal, hydro, wind, and solar). The simulation results revealed that geothermal and wind power plants required the most significant investment and would increase the gross domestic product by 0.67% and 0.66%, respectively, representing the highest net value added to the economy compared to that of the other power plant options. The construction of a wind power plant promotes employment the most, by 0.70%. However, none of the power plant construction significantly affected income disparity. Additionally, compared to certain renewable power plants, a coal power plant might require less investment and have better employment and economic impacts. Nevertheless, its continuous emission effect from operation needs to be considered.

PERLINDUNGAN HUKUM BAGI PENANAMAN MODAL ASING (PMA) DI INDONESIA

The existence of foreign investment in Indonesia is very important and strategic in supporting the implementation of national economic development and increasing economic growth in the community, which is regulated in law number 25 of 2007. This research is an empirical normative research, data collection is done by interview and literature study. Data processing is done by checking the data, the analysis in this study is done descriptive, that is, systematically doing research in the field to obtain data.The results show that in every foreign company that wants to invest in Indonesia, it must take care of the principle permit to the Investment Coordinating Board (BKPM) and the One-Stop Integrated Investment and Service Office (PTSP). So that the company can be established in Indonesia and its establishment is in accordance with the procedures of the foreign investment law so that the foreign investment company is fully under the responsibility and supervision of The Republic of Indonesia. The Government also provides relief to foreign investment in Indonesia in foreign up the cost of the entry of goods or electronic equipment for the purposes of Foreign Investment in Indonesia in investing.

CEO & CFO Education and R&D Investment in Indonesia

This study examines how the research and development (R&D) investments of listed companies in Indonesia are influenced by the educational characteristics of their CEOs and CFOs. This study uses 368 observations from 150 listed companies on the Indonesian Stock Exchange for the period 2010 to 2015. We find that CEOs with higher educational levels invest more in research and development. This is consistent with more education instilling a longer-term perspective on corporate managers. We also find that CFOs with accounting certifications invest less in R&D, consistent with the risk-adverse nature of the accounting profession. For companies and shareholders, our findings indicate the need for a greater understanding of the factors associated with R&D investments in Indonesia and other developing markets. Particularly, factors related to the background experience of CEOs and other executives, whose characteristics can have a real impact on the R&D investment decisions of firms. Our results show that the education of CEOs and CFOs is associated with their investment decisions in research and development. Thus, different education backgrounds create a bias for or against R&D investment in Indonesian firms.

PENGARUH PREFERENSI AGAMIS DAN PREFERENSI EKONOMIS DALAM BERINVESTASI DEPOSITO SYARIAH DI KOTA MALANG

<p class="Abstract"><strong>Abstract</strong></p><p><em>Investment is the initial capital in a country's economic development.</em><em> Shariah bank in this case BRI Syariah is expected to be able to contribute to the growth of public investment in Indonesia through Sharia Deposits. There is a growing perception in the community that Islamic banks are the same as conventional banks, indicating that there are still many people who do not know about Islamic banking. This condition makes the level of public preference for Islamic banks is low. The level of preference can be determined by measuring the economic level and the profit value of each product or service. The purpose of this study is to look at the influence of religious preferences and economic preferences on investing in Islamic deposits in BRI Syariah Soekarno-Hatta Malang The population of this study is BRI Syariah KC Soekarno-Hatta Malang customers who have Sharia Deposit with 94 samples and the sampling technique uses purposive sampling. Data analysis techniques using SPSS 22 for windows program. The results of this study indicate that simultaneously the variables of Religious Preference and Economic Preference have a significant effect on the variable Investing in Islamic Deposits, while partially there is a significant effect between the variables of Religious Preference on Investing Islamic Deposits and partially there is a significant effect between the variables of Economic Preference on Investing Deposits Sharia.</em></p>

A technical and economic analysis of solar PV with local tariff policy in Indonesia

Indonesia is still struggling to attract investors in developing the solar photovoltaic (PV) project. The government issued the first regulation on solar PV, announced in 2016. A revision on the local tariff regulation is conducted to reduce the rapid development of the solar PV investment. The major revision is made to change the contract scheme from a build-operate-own (BOO) to a build-operate-own-transfer (BOOT) scheme. This paper investigates how the new local tariff will drive investors and developers to invest in solar PV. This analysis is conducted to know the effectiveness of the policy and the risk of PV investment in Indonesia. Local tariff policy regulation targets PV developers to invest in the solar PV system areas. In the local tariff policy, each area has its PV energy tariff determined by the government. This research proposes a method for deciding demand by considering population data in selected regions to calculate the maximum PV demand of each area. The Levelized Cost of Energy LCOE is used to calculate the economic viability of the PV projects in selected areas in Indonesia. The results show that more than half of the selected areas are profitable for the PV project. The average profit of the projects of the selected areas is 3.21 cent USD per kWh. Most of the areas that have high PV demand have lower local tariffs. Therefore, these areas may not be profitable for developers. The new regulation also cuts the revenue significantly due to the new scheme contract.

Supervisory Role of The Financial Services Authority in Utilizing Equity Crowdfunding in Indonesia

In order to provide legal certainty and protection for those involved in investment in Indonesia, the Financial Services Authority has officially issued regulations relating to the collection of funds through information technology-based stock offers or equity crowdfunding. This article aims to review the role of supervision by the Financial Services Authority and the form of mitigation risks to obstacles and problems in utilizing Equity Crowdfunding in Indonesia. The research method used is normative juridical with, using secondary data which is then analyzed qualitatively. The results showed that the Financial Services Authority in conducting supervision of the use of Equity Crowdfunding can be done off site, or On Site. Risk mitigation must be carried out by the Financial Services Authority both through regulations and concrete steps. In the implementation of risk mitigation, the Financial Services Authority can also involve the Indonesian Fintech Association to address risks in order to provide a sense of security for investors and publishers in the use of the Equity Crowdfunding platform in Indonesia.

The Influence Of Investment Knowledge On The Interest Of Students Investing In Peer To Peer Lending Shariah

Peer to peer lending is an investment model that is developing in various countries, including Indonesia. This investment model has many advantages in terms of effectiveness so that it can make it easier for users to apply it. Moreover, peer to peer lending investment in Indonesia has a financing target for MSMEs so that this investment model can help finance in the microeconomic cycle. The convenience provided by the peer to peer lending investment model should be an attraction for people who are just starting investment such as students. Before investing, potential investors should have sufficient knowledge about investing in order to avoid the risk of failure that causes losses. This study aims to determine the effect of investment knowledge on the interests of STEI SEBI students investing peer to peer lending. The research method used is a quantitative mixture that is supported by qualitative data and data processed using SPSS ver. 23. The results of this study indicate that the T-test results of -0.200 and the significance value of 0.842. So it can be concluded that investment knowledge does not have a significant effect on students' interest in investing peer to peer lending. The results of the study are supported by data from interview results, which show that negative relationship results are not significant because one of them is theoretically not so influential if there is no its applicative science.

Preventing Capital Flight to Reach Lucrative Investment In Indonesia

Purpose: This study aims to analyze the effect of macroeconomic and non-macroeconomic determinants of capital flight. Research design, data and methodology: With five determinants, this survey was conducted by Eviews 10, and the ordinary least squares (OLS) as a statistical method was applied for examining the research hypothesis. The five determinants are a budget deficit, economic growth, inflation rate, the exchange rate, and sovereign rating. The capital flight measurement uses the World Bank residual approach. The data derive from the Central Bank of Indonesia, BPS-Statistics Indonesia, OECD, and Moody’s Investor Service. Results: The result considers that economic growth, the exchange rate, and the sovereign rating will decrease capital flight. In addition, the budget deficit and the inflation rate will increase capital flight. The sovereign rating decreases capital flight bigger than the other determinants. In addition, the exchange rate is statistically significant. Conclusions: The most influential problem of capital flight in Indonesia is because of non-macroeconomics factor political issue, corruption, bad regulation, and others. That’s why the investment climate in Indonesia is still not secure. We propose that the regime would have to amend the business rule for reducing capital, raising the investment climate, and demonstrating the creative industry.

UPAYA PENINDAKAN PEMBERANTASAN PUNGLI OLEH SATGAS SABER PUNGLI


 The extortion phenomenon has become part of the daily lives of Indonesian people. The practice of extortion is very easily found in almost all public service institutions from the lower level to the central level. It is important to understand that the practice of extortion has disrupted the progress of this country. One impact is extortion has hindered investment in Indonesia. Considering the many cases of extortion, the government accelerated the eradication of extortion by establishing the Extortion Eradication (Saber Pungli) Task Force. This article aims to review the urgency of establishing the Saber Pungli Task Force as a special task force, as well as the position of the Saber Pungli Task Force as a special unit within the scope of the executive body, such as the prosecutors and the police. The establishment of the task force became a hope in eradicating extortion and making the State of Indonesia free from extortion. The establishment of the Saber Pungli Task Force to provide public trust, justice, legal certainty, deterrent effect and strict sanctions for extortion practitioners and improvement of economic performance going forward. Saber Pungli task force with its position which is under and directly responsible to the President, has an equal position with the state ministry.
 Keyword: extortion, extortion eradication task force.

The dynamics of listed property companies in Indonesia

PurposeAs an asset class, listed property companies (PCs) in the emerging Asian markets have taken on increased significance in recent years. Investors have seen Indonesian real estate investment trusts (REITs) being regulated to become a property investment vehicle in 2007. This sees macro-environment investment in the Indonesian property market taking off to a higher level regionally. In the background, Indonesian listed PCs maintain as one of the major investment vehicles for local and international investors. It has also been the subject of investment for REITs and property investment funds in Indonesia. The purpose of this paper is to assess the dynamics of risk-adjusted performances and portfolio diversification benefits of listed PCs in a mixed-asset portfolio context in Indonesia, from July 2006 to December 2018. The sub-periods of pre-global financial crisis (GFC), GFC and post-GFC of listed PCs is also assessed.Design/methodology/approachUsing monthly total returns, the risk-adjusted performance and portfolio diversification benefits of listed PCs from July 2006 to December 2018 are assessed, with extended efficient frontiers and asset allocation diagrams used to assess the role of listed PCs in a mixed-asset portfolio. Sub-period analyses are conducted to assess the post-GFC recovery of listed PCs.FindingsListed PCs delivered higher returns but carried higher risks compared to stocks before the GFC, with bonds having both the lowest returns and risks. The impact of the GFC was highest for Indonesian PCs compared to stocks, where properties did not deliver strong risk-adjusted returns. Notwithstanding the poor risk-adjusted performance, Indonesian PCs had low correlations with stocks and bonds, suggesting some level of diversification potential for stock and bond investors. Stocks outperformed listed PCs across the sub-periods and the full period. Over the post-GFC period, both stocks and listed PCs recovered from the crisis, with stocks turning around stronger. This analysis shows a prolonged recovering and slow bouncing adjustment of listed PCs from the economic changes. This research suggests selected listed PCs may be the outperformers, and, a future contract as a hedge form for listed PC to be implemented.Research limitations/implicationsThe use of the indices of Standard & Poor’s Indonesian property total return (for listed PCs) are as follows: MSCI Indonesia total return (for stocks), Indonesia’s ten-year bond’s total return (for bonds) and Indonesia’s three-month bill total return (for cash). This is used to study the Indonesian listed PCs and may have aggregation effects in its underperformance and therefore drawing a negative outcome. The results may reflect the common fact that the majority of listed PCs in Indonesia are property developers, which also sees underperformances in other emerging country markets.Practical implicationsListed PCs have been under increasingly adjusted and positively adapted regulations from the Indonesian Government over the post-GFC period. Therefore, in order to attract interest from international investors in property investment in Indonesia, listed PCs need stronger and more efficiently adapted regulations to a competitive level of respective regulations in the region and globally. Notwithstanding the poor performance in the transitional stage, Indonesian listed PCs bring some diversification benefits to local investors who are able to pick the outperformed invested PCs at the right time. Of the on-going concerns, international investors have no restrictions on holding listed PCs in the Indonesian stock market. This provides room for improvement in business performance in listed PCs as a result of regional/global competition and international management being involved. The present study delivers awareness to investors, researchers as well as policymakers on the Indonesian property market.Originality/valueThis paper is the first published to present a country profile of significant property vehicles (commercial property, listed PCs and REITs). It also presents empirical research analysis of the risk-adjusted performance of listed PCs and its dynamic role in a local investors’ perspective across the pre-GFC, GFC, post-GFC periods. Given the significance of listed PCs in Asia, this research highlights more information for opportunities and on-going property investment issues in Indonesia.

Investigation on leveraging effect of women directors on board to R&D investment and firms' financial performance in the context of developing countries: evidence from Indonesia

This study examines the leveraging effect of gender diversity, specifically women directors on board (WDB), to the relationship between research and development (R&D) investment to the financial performance. Additionally, the study aims to deepen our understanding of the main behavioural driver of corporate financial performances in Indonesia, one of the fast developing countries within South East Asia. Data from 227 public companies listed in Indonesian stock exchange (IDX) are extracted from their 2015 annual reports and corporate websites. Tobin's Q is employed as the dependent variable, along with R&D investment and WDB as main testing variables. Using regression, the study finds that firms' with higher number of women directors on board and more focus on their R&D investment activities, will be able to generate higher financial performance than those firms with lower gender diversity and R&D investments. This paper contributes to literature on R&D investment in Indonesia, which is still limited, to the best of the authors' knowledge. The reported findings also uncover the main important finding of leveraging effect of number of WDB to the relationship between R&D investment and firms' financial performance in Indonesia.

The Strategy to Increase Investment in Indonesia and Obstacles of Perfection of Investment Law

This study aims to examine and find barriers to the refinement of investment law development as an effort to implement strategies to increase investment in Indonesia. This article is qualitative research. Examine and find barriers to the refinement of investment law development as an effort to implement strategies to increase investment in Indonesia.The reconstruction of the capital investment law is conducted by the issuance of Law Number 25 Year 2007 regarding investments which regulate domestic investment and foreign investment. The consideration of the appointment of BKPM as the only government agency that handles investment activities in the framework of PMA and PMDN is in order to increase the effectiveness in attracting investors to invest in Indonesia. Previous researches have not discussed the strategy of increasing capital investment so that it becomes the difference between this research and previous research (originality).

Safe haven and performance of extension-Markowitz portfolio on Indonesian ethical investments

There has been ongoing discussion about the performance of ethical investments. Unlike previous studies, this research used extension Markowitz model to measure the market-based performance of ethical investments in Indonesia. In addition, this research also investigated whether gold was the safe haven instrument for the extension-Markowitz portfolio in Indonesia when the equity market was in extreme turmoil. The stocks from environmentally friendly firms (SRI) and Jakarta Islamic Index (JII) in Indonesia were used as the proxies of ethical investments. The results showed that the extension of Markowitz model could create an optimum portfolio that outperformed the market index. The result of this study supported the social impact hypothesis implying that environmental and social spending could improve stock market performance. Also, based on quantile regression (QREG) and ordinary least squares (OLS), this study found that gold was the safe haven and hedging instrument for ethical investors in Indonesia.

Safe haven investment during turbulent conditions in Indonesia and Philippines capital market

Haven investment is a safe and profitable asset for investors during turbulent capital market conditions. Investors tend to divert investment in shares owned to safe-haven assets to secure investment value during the decline in value on the stock market. This study aims to obtain empirical evidence related to the ability of gold as a safe-haven investment in the State of Indonesia and the ability of gold as a safe-haven investment in the Philippines. The data used in this study is a daily return from the period January 1, 2018, to February 20, 2020. Data analysis techniques used in this study use the Augmented Dickey-Fuller (ADF) stationary test and the quantile regression analysis test with a quintile rate of 50%, 40%, 30%, 20%, and 10%. The results show that gold is a haven investment in Indonesia. Gold is a haven investment in the Philippines.

Determinants of Foreign Direct Investment in Indonesia “Evidence from Co-Integration and Error Correction Modeling”

This study aims to examine the influence of macroeconomic indicators and infrastructure spending on foreign direct investment (FDI) in the period 1981 to 2018. This study uses a quantitative approach. The sample in this study is macroeconomic variables, which include gross domestic product, inflation, debt to GDP ratio, interest rates, exchange rates, and infrastructure spending in the 1981 to 2018 period. The analysis technique used is cointegration and error correction modeling. The analysis shows that gross domestic product, inflation, debt to GDP ratio, interest rates, exchange rates, and infrastructure spending have a long-term and short-term relationship to FDI.

Safe Haven and Performance of Extension-Markowitz Portfolio on Indonesian Ethical Investments

There has been ongoing discussion about the performance of ethical investments. Unlike previous studies, this research used extension Markowitz model to measure the market-based performance of ethical investments in Indonesia. In addition, this research also investigated whether gold was the safe haven instrument for the extension-Markowitz portfolio in Indonesia when the equity market was in extreme turmoil. The stocks from environmentally friendly firms (SRI) and Jakarta Islamic Index (JII) in Indonesia were used as the proxies of ethical investments. The results showed that the extension of Markowitz model could create an optimum portfolio that outperformed the market index. The result of this study supported the social impact hypothesis implying that environmental and social spending could improve stock market performance. Also, based on quantile regression (QREG) and ordinary least squares (OLS), this study found that gold was the safe haven and hedging instrument for ethical investors in Indonesia.

Agglomeration and Location Decision of Foreign Direct Investment (FDI) in Indonesia

Foreign direct investment (FDI) may precipitate remarkable economic growth, even in developing countries. FDI can provide financial resources, transfer technology, improve organizational and managerial practices and skills, and afford access to international markets. This paper aims to measure the relative importance of the different types of agglomeration for location decision of FDI in the manufacturing sector in Indonesia. These data are analyzed with a multinomial logit model where the dependent variable is the choice of location. It examines the determinant factors of new (greenfield) foreign direct investment in the manufacturing sector in Java Island, Indonesia. This study used unpublished micro-level data of principle licenses from the Indonesia Investment Coordinating Board (IICB), which examine 23 counties of Java Island that received manufacturing FDI in the last five years. The finding is agglomeration economies in production (both foreign-owned and domestic firms) show a significant and positive but small impact. Other variables, including facilities, and labor market conditions-anomalously in that a higher minimum wage-matter as much or more than an agglomeration of production. Because the agglomeration effect is small, it means that agglomeration economies are not the determining factor in attracting FDI. The new foreign investors not only seek counties in which foreign or domestic plants have already located but also consider other things such as the density of roads and the availability of labor.