Investment In Indonesia Research Articles

Cryptocurrency Investment in Indonesia

Objective - Different countries have different policies towards cryptocurrencies. In Indonesia, cryptocurrency is prohibited as a means of payment or transaction. The prohibition is stated in Bank Indonesia Regulation (PBI) Number 18/40/PBI/2016 concerning the Implementation of Payment Transaction Processing. However, cryptocurrencies are recognized as long-term commodities or investment assets, so their supervision is carried out by the Commodity Futures Trading Supervisory Agency (bappepti) and regulated in Bappebti Regulation No. 7 of 2020 concerning the Determination of the List of Crypto Assets that Can be Traded on the Crypto Asset Physical Market. This study aims to analyze the differences in return and risk on the 5 cryptocurrencies with the largest market capitalization in Indonesia. Methodology/Technique - This research uses quantitative methods with a descriptive approach, and secondary data is used. The population in this study consisted of 383 cryptocurrencies that were legal and registered with Bappepti from 2020 to 2022. The sample was determined using purposive sampling to determine the top 5 cryptocurrencies with the largest market capitalization during the observation period from January 2020 to September 2022. The data analysis technique used the Kruskal-Wallis test. Findings - The results showed no significant differences in return and risk between Bitcoin, Ethereum, Tether, BNB, and USD coins. Empirically, this study proves that each cryptocurrency has the same risk and return. Novelty - This research was conducted in Indonesia with regulations that may differ from other countries towards cryptocurrencies. As a long-term commodity investment asset, this study finds empirical evidence that each cryptocurrency has the same risk and return. Type of Paper: Empirical JEL Classification: G11; G18; G28 Keywords: Cryptocurrency; Investment; Return; Risk; Bappepti Reference to this paper should be referred to as follows: Dewi, D.M; Faizal, I; Sambe, T.A. (2024). Cryptocurrency Investment in Indonesia, Acc. Fin. Review, 9(1), 32 – 41. https://doi.org/10.35609/afr.2024.9.1(1)

From International Regulation to Local Implementation

This paper discusses gender equality in sustainable development goals as a response to the 2023 United Nations Sustainable Development Goals Report. Through the lens of international environmental law, gender equality achievement is examined both by its international commitment and its implementation at local institutions. This study focuses on elements of the data report that closely relate to human rights and the environment. These include women�s global share in national agricultural ownership, their secure tenure rights over agricultural land, and access to fair legal protection. This study then observes the availability of international agendas within international environmental law to promote sustainable development goals. Relevant legal frameworks include those arranged by the 1992 Rio Earth Summit and the 2015 Paris Agreement on Climate Change. To examine local implementation, this study uses the West Sumatra government as a case study, employing questionnaires and interviews with provincial legal actors. Indonesia Investment Law, which covers a broad spectrum of human development, is utilized as a model for assessing the implementation of gender equality at the local level. Ultimately, this study found a lack of gender equality implementation for SDGs at local institutions. It concludes that this could have been anticipated via a more comprehensive international legal framework, which could be implemented through national regulations. Keywords: Environmental Law, Gender Equity, Sustainable Development Goals

The Effect of Balikpapan-Samarinda Toll Road Construction with a PPP Scheme on The Formation of Economic Structure in East Kalimantan

Economic effects are just one of the many effects of the massive infrastructure investment in Indonesia made over the past ten years. The aim of connecting Indonesia between regions is the basis for massive infrastructure growth, especially toll road infrastructure. Several funding schemes have been implemented to build toll road infrastructure, including the Public-Private Partnership (PPP) financing scheme. This PPP financing scheme was also implemented in the Balikpapan-Samarinda toll road construction. Therefore, this research attempts to capture the impact of the construction of the Balikpapan-Samarinda toll road with a PPP scheme on the formation of the economic structure in East Kalimantan province using the Input-Output (I-O) table. The investment value for the Balikpapan-Samarinda toll road is IDR 9.97 trillion was injected (shock) into gross fixed capital formation in the construction sector. The calculation results in this research show that the construction of the Balikpapan-Samarinda toll road contributed 9.8% of total demand. Apart from that, there is a significant impact on the economic structure of East Kalimantan Province, as seen from the expenditure multiplier figure with an output total of IDR 15,111 billion, a total income of IDR 2,471 billion, and a total workforce of 25,095 workers due to investment in the construction of the Balikpapan-Samarinda toll road.

Perbandingan Hukum Penanaman Modal dan Investasi Di Indonesia dan Di Tiongkok

Indonesia and China are two countries with rapidly developing economies in Southeast Asia. These two countries have great potential to attract foreign investment. However, there are differences in investment and foreign investment regulations in the two countries. This research aims to compare investment and foreign investment laws in Indonesia and China. This research uses normative legal research methods with a comparative approach. Research data was obtained from literature studies, namely laws, government regulations and other related literature. The research results show that there are similarities and differences in foreign investment and investment regulations in Indonesia and China. Similarities include, recognition of the rights of foreign investors; providing incentives for foreign investors; and resolving investment disputes. The differences include the subject of investment, business fields open to foreign investment, investment requirements. From this research, researchers can draw the title, namely Comparison of investment law and foreign investment in Indonesia and China

KEPASTIAN HUKUM AKTA PERJANJIAN TERKAIT PINJAM NAMA (NOMINEE) OLEH WARGA NEGARA ASING (WNA) DALAM JUAL BELI TANAH MENURUT UNDANGUNDANG POKOK AGRARIA.

Nominee agreements in buying and selling freehold land are prohibited according to applicable law. The phenomenon that occurs in society is that nominee agreements are still used by foreign citizens in buying and selling land. The formulation of the problem in this research is the legal consequences of a deed of agreement to borrow a name in the sale and purchase of land by a foreign citizen and what is the legal certainty of the deed of agreement regarding the borrowing of a name (nominee) by a foreign citizen (WNA) in the sale and purchase of land according to the Basic Agrarian Law. The legal theory used in this research is the theory of legal certainty by Jan Michiel Otto, the theory of legal consequences according to Soeroso. The method used in this research is a type of normative juridical research, namely legal library research or secondary and tertiary sources of legal materials. The research approaches used are the statutory approach, conceptual approach, case approach and analytical approach, and legal material collection techniques are carried out by identifying ang inventorying positive legal rules, book literature, journals and order sources of legal material. The analysis out using legal interpretation, including Grammatical Interpretation and Historical Interpretation ang analogy legal construction methods. From the results results can be obtained that the the legal implication on the nominee agreement to the land agreement by WNA are null and void because it does not meet the requirements to the Article 1320 Number 4 of the KUH Perdata and conflicted with the principle of Nationalism as emphasized in Article 26 Paragraph (2) UUPA so that parties related to the land agreement based on a nominee agreement shall be subject to civil liability. The legal certainty about the nominee agreement by the WNA to the land agreement based on the UUPA is carried out in a preventive manner by establishing statutory regulations that prohibit nominee agreements in relation to land rights so as to protect foreign nationals from possible losses and fraud that could threaten the security of foreign investment in Indonesia

VALUATION OF STOCK VALUE WITH RELATIVE VALUATION AND ABSOLUTE VALUATION APPROACH IN BANKING SECTOR AT LQ 45 PERIOD 2015-2020

Investment in Indonesia during the COVID-19 pandemic increased. One of the significant and good indices in describing the condition of stocks in Indonesia is LQ45. Dlaam LQ45 The largest market capitalists are held by the financial sector Specifically the bank subsector therefore it needs to be further researched regarding these stocks. One of the interesting things is whether these stocks deserve to be considered a good investment instrument. One of the efforts to assess investment instruments is through the valuation stage. The valuation method used there are two, namely relative valuation with price to book value benchmarks and price earnings ratio and absolute valuation with dividend growth model method and some modifications of the model. From the results obtained, the recommendation of the position of the four financial stocks in LQ45 varies depending on the valuation technique used. On this basis, it can be said that it is important to know, know, and ethically the valuation techniques used are appropriate, good, and correct.

Designing nickel smelter industry investment competitiveness policy in Indonesia through system dynamics model

Purpose This research is intended to assess the nickel smelter industry’s investment competitiveness in Indonesia and identify ways to improve its competitive advantage for the nation. Design/methodology/approach This research uses a sequential mixed-methods approach, expanding on a first qualitative phase with a second quantitative phase. Interviews are used in the qualitative phase to identify the underlying causes of issues and potential solutions to increase the competitiveness of the nickel smelter industry, while a system dynamics (SD) model is used to conduct the quantitative phase. This study uses the idea of a country’s competitive advantage from Porter’s diamond model (PDM). The model was tested and validated using SD simulation resulting in a new policy scenario, which was evaluated in metallurgy expert conferences and high policymaker discussion forums. Findings The results reveal the complexity of the nickel smelter industry in Indonesia and conclude that the integrated export duty beneficence policy is the most effective way to boost competitiveness. This policy gives a significant improvement both in the number of smelters and state revenue compared to the current policy. The industry’s investment competitiveness is enhanced by the six factors of the diamond model, with the first three factors being integrated strategy, limited export of excess production and export duty beneficence, while the remaining factors are metal price fluctuation, domestic demand and mineral supply which are related to mining conditions uncertainty. Research limitations/implications The research creates a SD model to support Indonesia’s competitive advantage in the smelter industry. Despite limitations like interpretations and distorted semantic analysis, it provides a useful framework for exploring complex industry themes, excluding social factors due to limited data and knowledge requirements. Practical implications The findings of this research offer a framework for policymaking by the government to enhance the competitiveness of investments in Indonesia’s nickel smelter industry. Originality/value This study delves into Indonesia’s nickel industry competitiveness using PDM. Using a more detailed SD model with quantitative analysis, it goes beyond strategy development to provide a comprehensive approach to the nickel smelter industry.

Analisis Penyebab, Konsekuensi, dan Solusi Potret Investasi di Indonesia Pasca Reformasi

Investment in Indonesia is the main guideline in increasing economic productivity. This research aims to explain the causes, consequences, solutions and conditions of investment in post-reformation Indonesia. This research will examine the factors that influence investment, the impact of investment on the economy and labor market, as well as solutions to improve the investment climate and overcome existing obstacles. not only explains conditions but also explains the role of investment in economic growth, as well as obstacles to economic growth.

Kombinasi Metode Webqual 4.0 dan Importance Performance Analysis pada Pengukuran Kualitas Website Stock Exchange

Interest in stock investment in Indonesia is still relatively low compared to other countries, data shows that the population of productive age has reached 189 million, but there are only 4.16 million retail investors in the capital market with an involvement ratio of around 2.2 percent. This shows that the participation ratio of the Indonesian population in investing in shares is less than 5 percent, which is far behind other countries such as the United States (55 percent), Singapore (26 percent) and Malaysia (9 percent). The lagging interest in investing is due to a lack of understanding of digital literacy in investing. This needs to be overcome by increasing the digital literacy understanding of the Indonesian people regarding investing in shares. The webqual 4.0 method is a method used to measure the quality of the stock exchange information system website in Indonesia, namely IDX.co.id, through the use of three measurement variables, namely in terms of usability, information quality, service interaction quality. In addition, the Importance Performance Analysis (IPA) method is applied to carry out performance assessments on expectations of website quality. It can be measured to identify indicators according to user preferences, then the results of these measurements are used to identify indicators that need to be improved on the IDX information system so that can improve user experience, as well as increase digital literacy of stock investment in Indonesia. This research collects information from users through questionnaires which are processed using the linear regression analysis method. The research results show that users are satisfied with the current IDX Website in terms of Usability, Information Quality and Service Interaction Quality, indicated by the T-Statistics value which is higher than the T-Table. So that the public's understanding of digital stock investing literacy facilitated by the idx.co.id website is good. However, based on the Importance Performance Analysis analysis, improvements still need to be made to indicators in quadrants I and III which have low performance. Recommended improvements include improving site navigation, implementing SEO, site redesign, increasing credibility, reorganizing menus, content audits, and increasing user interaction.

Financial Development Shock and Foreign Direct Investment in Indonesia

This study analyzed the response of Foreign Direct Investment (FDI) due to the shock on financial development in Indonesia from January 2010 to December 2022. The variables used in this research are FDI and financial development, which measure financial development using traditional measurements such as the Amount of Money in Supply, Credit, and Market Capitalization. Interest Rate and Trade Openness Variables were used as control variables. The study used the VECM method. Results show that in response of the shock on financial development on FDI, Money Supply is positive, Credit negative, and Market Capitalization negative. Keywords: foreign direct investment, financial development, money supply, credits, market capitalization

An Effective Solution for Investing Funds Through the Robo Advisor Bibit Application

Investment regulates finance such that its value can grow and generate future profits. In Indonesia, investment is increasing yearly. The increase is supported by millennials who have adapted to technology that makes it easier to make digital mutual investments. Although the increase in mutual investment in Indonesia is quite rapid, it does not preclude the possibility that there are still many people who have not invested. The reason people have not invested is that they are afraid to take risks, and their income is low. These reasons can be minimized with the use of technology. Innovation in investing has given rise to modern technological advances such as fintech or financial technology like Robo Advisor. The method used in this study was the Partial Least Squares Structural Equation Modelling analysis technique, which was operated using SmartPLSver. 3 software. Data were collected through questionnaires. The study used quantitative methods and a sample of 200 respondents who had or would have invested through the Bibit application with the use of the Robo Advisor feature. The results of this study found that Robo Advisor can affect millennials’ investing through risk profiling, financial planning, and rebalancing. Keywords: decision making, financial planning, investment, risk profiling, rebalancing, Robo Advisor

Is There A Conflict Of Interest In Indonesia’s Soe Investment Decision?

In financial management, the Director of State-Owned Enterprises (SOEs) in Indonesia synergizes with the Ministry of SOE to make investment decisions. One of the most common types of investment in SOEs is the purchase of shares in private companies. Through buying shares, SOEs can expand their business lines and project bigger profits. However, it is often found that the decision to purchase private company shares is made by SOEs due to a conflict of interest. This paper aims to determine the level of involvement of conflicts of interest in the decisions of SOEs in Indonesia to invest in the purchase of shares of private companies. Due to data limitations, the authors used a qualitative technique with an explanatory case study to meet the research aims. The analysis tested of 14 Indonesian SOEs' investment decisions when investing in the purchase of shares in private companies during the 2013–2022 period. The findings show allegations of conflicts of interest in several share investment decisions made by SOEs in Indonesia. This conflict of interest can occur because of a family relationship between the Board of Directors of SOEs and the management of private companies. In addition, there is also a political-party relationship between the parties involved. These findings can help several parties, including SOE and the Ministry of SOE, better understand the limits of investment that can be made. In the long run, the Ministry of SOE, as the supervisor of SOEs, can establish an early warning system to determine whether or not the investments made are appropriate. Most of the previous research only examined the effects of a company's investment and its impacts. It explores the company's stock price valuation process. No research has been found that specifically discusses SOE investment in Indonesia in private company shares.

Sovereign Wealth Fund Development in Indonesia: Lessons Learned from Norway and Singapore

<p>This study aimed to compare Sovereign Wealth Funds in Singapore, Norway, and Indonesia based on several categories: classification and objectives, nature, source of funds, management, implementation, funding policy, and regulatory framework. This study adopts the grounded theory approach for analysing and categorising the data. Earlier studies on SWF have been focused on the governance and operation of the SWF globally, with minimal attention paid to SWF in developing economies. The study shows that the Indonesia Investment Authority (INA), as a newly established SWF, encountered several issues related to applying good corporate governance. Therefore, comparing the more established SWF in Singapore and Norway is deemed significant in gaining valuable insight into INA's future. This circumstance is aimed at preserving the Government's trust by adding positive value to INA's business management and ensuring sustainability. The result gives assurance to potential investors of INA that INA’s legal basis is still valid and enforceable. Furthermore, an expanded INA governance framework is proposed as a practical contribution based on the results of other SWFs in Norway and Singapore. This framework is adjusted to suit INA's context and main objectives, including funding policy, supervisory institution, and transparency and accountability of the investment activities.</p>

Pemodelan Data Time Series Menggunakan Pendekatan Regresi Polinomial Lokal Pada Data Harga Saham MDKA

<p class="AbstractEnglish">Investment is an important way to manage finances for profit. One of the most popular investments in Indonesia is buying and selling shares. In addition to getting profits, they also have risks. Therefore, analyzing stock prices before buying and selling is an important key in stock investing. Investors should buy stocks at a low price and sell them at a high price. One of the methods used is parametric regression analysis, but it has assumptions that must be met. A more flexible alternative is local polynomial regression without any particular assumptions. PT Merdeka Copper Gold Tbk with MDKA stock code is a company engaged in the mining and industrialization of gold, silver, and other associated minerals. The study of modeling the lowest daily price of MDKA shares using local polynomial regression showed excellent results. The high coefficient of determination exceeding 67% on the in-sample data indicates strong model performance, and the Mean Absolute Percentage Error (MAPE) value on the out-of-sample data is less than 10%, ensuring excellent model accuracy.</p><p class="AbstractEnglish"><strong>Keywords: </strong>local polynomial regression; MDKA shares; time series</p>

The complexity of disaster impacts: An example on foreign investment in Indonesia

The complexity of disaster impacts: An example on foreign investment in Indonesia

The Role of Investment Management Institutions in Carbon Trading in Industrial Areas in Indonesia

Life always evolves with the times, including the country. Indonesia is developing by shifting from an agrarian to an industrial sector that is growing rapidly. The existence and development of the industry are instrumental in economic growth in Indonesia, but as the industry develops, the greenhouse gas emissions produced by Indonesia are also increasing. Therefore, a solution is needed to lower greenhouse gas emissions, and one of the solutions is carbon trading. Besides reducing carbon gas emissions, carbon trading can also encourage the domestic carbon market through its buying and selling system, opening up investment opportunities. In relation to investment, since the inauguration of the Job Creation Law, there has been an institution specifically regulating investment, namely the Investment Management Institution, representing the central government with significant authority and privileges. This study aims to analyze how the regulation of carbon trading has changed after the inauguration of the Job Creation regulation as a law and the position of the Indonesia Investment Authority in carbon trading within the industrial sector in Indonesia.

Training for Preparation of Business Feasibility for Bantar Sari Village, Distric Rancabungur, Bogor

Micro, small and medium enterprises (MSMEs) have an important role in the Indonesian economy. The Indonesian government also considers the existence of MSME actors important. The proof is that UMKM together with Cooperatives have a special forum under the Ministry of Cooperatives and UKM. MSMEs is a business sector that has quite good business potential where as MSMEs develops, the level of employment also increases. The number of MSMEs in 2018 was recorded at 64.2 million units, while in 2019 it grew 5 percent to 67.4 million units. The development of Micro, Small and Medium Enterprises (MSMEs) has proven to be the main driver of the real sector that direct effect on national economic growth. MSMEs from 2016-2019 grew by 4.2% annually with an average contribution of MSMEs to Indonesia's Gross Domestic Product (GDP) of 50% for the last 3 years. Information owned by the Ministry of Cooperatives and Small and Medium Enterprises in March 2021, the number of MSMEs in Indonesia is at 64.2 million, and has a gross domestic GDP contribution of up to 61.07%. MSMEs can absorb up to 97% of the total workforce and can collect up to 60.42% of the total investment in Indonesia. However, the development of MSMEs generally still experiences various problems and is not fully in accordance with expectations. The problem that is still an obstacle in developing MSME businesses is the limited capital they have and the difficulty for MSMEs to access sources of capital. In order to help access funding, guidance and directions are needed in order to obtain banking funds for these small businesses. For this reason, a program of activities for preparing feasible business planning proposals is needed. This community service method uses descriptive methods, namely through surveys and observations. The initial stage was observation of Bantar Sari Village, Distric Rancabungur, Bogor to identify the business ventures that were currently being carried out. Furthermore, the formulation stage is the identification of the internal and external environment and is continued with the feasibility study stage. Delivery of training for the community, most of whom are MSMEs, is conducted at the Bantar Sari Village, Distric Rancabungur, Bogor, where the participants are quite enthusiastic about participating in the training program, this can be seen from the number of question that were entered.

Analisis Tanggung Jawab Otoritas Jasa Keuangan dalam Pelaksanaan Pengawasan Market Conduct pada Kegiatan Investasi di Indonesia

This research is an in-depth review concerning the responsibility of the Financial Services Authority (OJK) in overseeing market conduct in investment activities in Indonesia. Within the complexity of the financial market context, OJK's role in ensuring compliance with principles of ethics, integrity, and transparency becomes the primary focus. The research also highlights the role of market conduct supervision as a safeguard for investors and an effort to maintain fairness and equality in the investment market. The study outlines the current conditions of the investment market in Indonesia, including recent changes and trends. Challenges faced by OJK in executing the function of market conduct supervision, such as adapting to financial product and technological innovations, are also detailed in this analysis. The aim of this research is to provide a broad perspective on the role of OJK in market conduct supervision, and to offer crucial insights into the dynamics of the Indonesian investment market. The research methodology employed in this study is Normative Legal Research, also known as Doctrinal Law, which conceptualizes law as provisions written within legislation or as norms representing human behavior deemed appropriate. It is hoped that this analysis will contribute significantly to formulating policies and strategic steps aimed at enhancing the financial market's health and investor protection in Indonesia.

Optimizing Regional Governance in Batam City Government-Business Entity Institutional Dualism

Introduction: The development of special areas of Batam began in the 1970s. With the support of special regulations made by the central government, Batam City becomes a competitive place for investment in Indonesia. Moreover Batam has geographical advantage because of its strategic location and adjacent to Malaysia and Singapore.Purposes of the Research: The research examines the legal framework governing the relationship between the Batam City Government and Batam Concession Agency, identifying overlap and potential conflicts, and promoting synergy with the Batam Business Entity.Methods of the Research: The study approach employed. Secondary data is used in this normative legal research strategy.Results of the Research: Research suggests that the legal structure between Batam City Government and Batam Concession Agency should promote cooperation and collaboration. In practice, overlapping jurisdiction areas might leave unclear and confusing duties and responsibilities for each entity. They were fulfilling each entity's duties. Overlapping zones can interfere with development and public services and cause institutional conflicts. The legal framework may require clarity or amendment to improve the interaction between the Batam City Government and the Batam Concession Agency. Optimize local government, for optimal local government, the law must assist the Batam City Government, and Batam Concession Agency cooperate. Batam City and Batam Concession Agency labor together cooperatively. Batam City and Batam Concession Agency collaborate.

Optimizing Regional Governance in Batam City Government-Business Entity Institutional Dualism

Introduction: The development of special areas of Batam began in the 1970s. With the support of special regulations made by the central government, Batam City becomes a competitive place for investment in Indonesia. Moreover Batam has geographical advantage because of its strategic location and adjacent to Malaysia and Singapore.Purposes of the Research: The research examines the legal framework governing the relationship between the Batam City Government and Batam Concession Agency, identifying overlap and potential conflicts, and promoting synergy with the Batam Business Entity.Methods of the Research: The study approach employed. Secondary data is used in this normative legal research strategy.Results of the Research: Research suggests that the legal structure between Batam City Government and Batam Concession Agency should promote cooperation and collaboration. In practice, overlapping jurisdiction areas might leave unclear and confusing duties and responsibilities for each entity. They were fulfilling each entity's duties. Overlapping zones can interfere with development and public services and cause institutional conflicts. The legal framework may require clarity or amendment to improve the interaction between the Batam City Government and the Batam Concession Agency. Optimize local government, for optimal local government, the law must assist the Batam City Government, and Batam Concession Agency cooperate. Batam City and Batam Concession Agency labor together cooperatively. Batam City and Batam Concession Agency collaborate.