Indonesian Policy Makers Research Articles

Segmenting International Tourists in Indonesia: A Cluster Analysis of Preferences, Motivations, and Behaviors

This study conducts a cluster analysis of international tourists visiting Indonesia to identify distinct market segments based on travel motivations and behaviors. A sample of 1,050 respondents revealed four key segments: Leisure Seekers, Cultural Explorers, Adventure Enthusiasts, and Budget Travelers. Leisure Seekers from Australia and Germany are drawn to luxury and wellness experiences. At the same time, Cultural Explorers, mainly from China and Japan, are motivated by cultural heritage. Adventure Enthusiasts, younger tourists from Europe and the United States, prefer outdoor activities and eco-friendly tourism, whereas Budget Travelers prioritize affordability. The study emphasizes the importance of tailored marketing strategies to meet the needs of these diverse segments. The discriminant and silhouette analysis validated the clusters, confirming their statistical significance. These findings provide actionable insights for tourism operators and policymakers in Indonesia, offering a roadmap for enhancing visitor satisfaction and promoting sustainable tourism development. Despite its contributions, the study is limited by its focus on major destinations and a defined period, which may not capture evolving tourism trends. Future research should explore niche markets, track changes over time, and assess the effectiveness of targeted marketing strategies. This research highlights the need for segmentation in tourism marketing to sustain Indonesia’s competitiveness in the global market.

Comparison of Business Law in Developing and Developed Countries: A Case Study of Indonesia and Singapore

This study aims to compare the characteristics of business law between countries, namely Indonesia and Singapore. Indonesia and Singapore have different legal systems; Indonesia uses civil law while Singapore uses common law, which affects regulations in business activities between the two countries. This study focuses on three main aspects: corporate regulation, intellectual property rights, and investor protection. This study found that Singapore is superior in terms of legal certainty and efficiency, while Indonesia still faces challenges in implementing regulations that often change. The results of this study are expected to provide further understanding of the implications of different legal systems and become input for policymakers in Indonesia in improving the investment climate.

Return connectedness of sectoral stock indices on the Indonesian stock exchange during Russian-Ukraine conflict

Research aims: The purpose of this study is to determine the return connectedness of sectoral stock indices in Indonesia and to identify sectors that act as risk transmitters and risk recipients during the Russia-Ukraine conflict.Design/Methodology/Approach: The study employed a quantitative method with a comparative descriptive approach using data obtained from id.investing.com in the form of daily data on the closing price of the sectoral stock index starting from the period March 16, 2021 to March 14, 2023. The sampling technique used purposive sampling method. Time varying parameter VAR is an analytical tool used to analyze the data.Research findings: The test results found that the return connectedness of Sectoral Stock Indices increased during the Russia-Ukraine war. During the war, the sectoral indices that acted as risk transmitters were finance, industry, infrastructure, consumer cyclicals, and basic materials. Sectors that acted as risk receivers were health, transportation, energy, consumer non-cyclicals, and technology.Theoretical contribution/Originality: This is the first study to examine return spillover in Indonesia stock sectors, specifically focusing on the Russia-Ukraine conflict. This study provides understanding about return spillover and directional spillover among 11 Indonesian stock sectors.Practitioner/Policy implication: This article has important implications for investors to allocate their portfolios taking into account the similarities and differences in the time-varying connectivity characteristics of different asset systems. Also, for policymakers in Indonesia should adopt flexible regulatory strategies to avoid systemic risk contagion.

An Analysis of President Joko Widodo's Economic Diplomacy from 2014 to 2024: Results in Foreign Investment and Global Trade Volume

This research aims to analyze the economic diplomacy strategies undertaken by President Joko Widodo’s administration from 2014 to 2024, focusing on their effectiveness in enhancing Indonesia’s trade volume, attracting foreign direct investment (FDI), and addressing global economic challenges. By examining key initiatives, this study explores the interplay between trade agreements, regulatory reforms, and international partnerships that shaped Indonesia’s economic trajectory. The theoretical framework of this research is rooted in the concept of economic diplomacy, which encompasses the use of economic policies as instruments of foreign policy to advance national interests. Economic diplomacy involves negotiating trade agreements, attracting FDI, and leveraging international partnerships to foster economic growth and geopolitical influence. This study employs qualitative research methods, analyzing secondary data from scholarly journals, government reports, trade and FDI statistics, and publications by international institutions such as the World Bank and the IMF. The findings indicate that President Joko Widodo’s economic diplomacy led to significant advancements in Indonesia’s economic standing. Between 2014 and 2022, Indonesia saw a notable increase in FDI attributed to regulatory reforms such as the Omnibus Law, which simplified business processes and reduced bureaucratic hurdles. Additionally, Indonesia’s active participation in multilateral agreements like the Regional Comprehensive Economic Partnership (RCEP) expanded trade opportunities. This paper contributes to the field of international economic diplomacy by providing a comprehensive analysis of Indonesia’s strategies under President Joko Widodo. It offers valuable insights for policymakers in Indonesia and other emerging economies, demonstrating how domestic reforms, international trade agreements, and strategic partnerships can bolster economic growth.

Environment, youth, and policy-making discussion: A conversation analysis on Think Policy’s YouTube channel

This study will focus on three videos on YouTube which mainly discuss the climate crisis and environment published by Think Policy, an organization that addresses public policy-making in Indonesia. It employs Conversation Analysis to explore how the conversation talks from YouTube videos can show context and explain the importance of the environment, sustainability, and policy-making related to them. The analysis centres around the chunks of conversations that convey: 1) the critical views of environmental activists towards public policy and conditions regarding climate crisis, environment, and sustainability in Indonesia; 2) the educational purpose which raises the youngsters’ awareness towards environmental issues; 3) the agreement and disagreement of environmental activities regarding climate crisis issue in general. The result shows that through its YouTube talks and building upon the lack of public discussion centring around environmental issues in Indonesia, Think Policy can be seen as a social agent organization that functions to spread awareness of environmental issues to a wider range of audiences through environmental and policy-making discussion regardless of their age and views on social or politics.

Strategic determinants of military expenditure in Indonesia: Insights from AHP

This study investigates the key determinants of defense spending in Indonesia using the Analytical Hierarchy Process (AHP) to prioritize factors influencing budget allocations. Indonesia’s unique strategic position, resource wealth, and internal security challenges necessitate a comprehensive approach to defense budgeting. The AHP methodology was employed to assess the relative importance of four main criteria: National Resources, Internal Geopolitics, Finance, and Global Geopolitics. Data were gathered from a combination of literature reviews and insights from key stakeholders, including government agencies and academic experts. The results indicate that National Resources, particularly natural wealth such as oil, are the most critical factors driving military expenditure, highlighting Indonesia’s dependence on resource-based revenues. Internal Geopolitics, focusing on political stability and internal conflicts, also significantly influence defense spending, emphasizing the need for a stable domestic environment. The findings further reveal varying perspectives among stakeholders, particularly in financial and geopolitical considerations, underscoring the challenges in aligning strategic priorities. This research offers a structured framework for optimizing defense spending, providing valuable insights for policymakers in Indonesia and other nations with similar budgetary constraints. The study highlights the importance of a cohesive and informed defense budgeting strategy to enhance national security and economic sustainability.

The Impact of Artificial Intelligence on Digital Marketing: Leveraging Potential in a Competitive Business Landscape

This study aims to thoroughly investigate how Artificial Intelligence (AI) is strategically integrated into digital marketing practices and its consequential effects on Indonesia’s fiercely competitive business environment. Employing a quantitative research approach, this study meticulously examines Indonesian enterprises’ prevailing strategies for AI utilization. The research method employed in this study is quantitative, with the unit of analysis being Indonesian companies. The sample size comprises 100 companies selected through the stratified random sampling technique. Analysis of the data is conducted using the SPSS statistical package. Through detailed analysis of survey data and advanced statistical techniques, the research reveals a significant positive correlation between the integration of AI in digital marketing and improved marketing effectiveness. The study highlights a noticeable increase in customer engagement metrics and noteworthy enhancements in conversion rates among businesses proficient in leveraging AI technologies, further reinforcing this correlation. Additionally, the findings suggest that companies embracing AI demonstrate significantly heightened adaptability to the constantly evolving market dynamics, strengthening their competitive positioning. These insightful discoveries underscore the critical importance of harnessing AI’s transformative capabilities within digital marketing strategies to sustain and bolster a competitive edge in the marketplace. Furthermore, the study discusses its contributions to existing knowledge and provides practical implications for marketers and business policymakers in Indonesia. Doi: 10.28991/ESJ-2024-08-06-012 Full Text: PDF

The Influence of USDT Dominance on Volatility and Stock Market Performance in Indonesia

This study aims to analyze the influence of USDT (Tether) dominance on the volatility and performance of the stock market in Indonesia. USDT, as one of the largest stablecoins in the world, plays a significant role in the global crypto market and can impact various asset classes including stocks. This study uses time series data covering the period from 2018 to 2023, focusing on the Indonesian stock market index (IHSG) and USDT dominance in the crypto market. The methods used in this research include multiple regression analysis to examine the relationship between USDT dominance and IHSG movements, as well as Granger Causality tests to evaluate whether USDT dominance can predict changes in stock market volatility. The results show a significant relationship between increased USDT dominance and increased stock market volatility in Indonesia. Additionally, USDT dominance is found to have a predictive effect on the decline in stock market performance, especially in unstable market situations. These findings have important implications for investors and policymakers in Indonesia, given the increasing interconnection between the crypto market and traditional financial markets. This study recommends tighter monitoring of stablecoin movements like USDT and enhanced financial literacy among market participants to anticipate potential volatility impacts.

The Role of Sharia Economics in Realizing Sustainable Development in Indonesia

This study provides a comprehensive bibliometric analysis of the role of Sharia economics in promoting sustainable development in Indonesia. By examining 810 publications between 2006 and 2024, the study explores key research trends, themes, and collaborations in the literature. The analysis reveals a significant increase in research activity after 2020, with a focus on aligning Islamic finance principles with sustainable development goals (SDGs), particularly in areas such as poverty alleviation, economic growth, and green finance. Keyword co-occurrence visualizations highlight the importance of concepts such as "green sukuk," "economic growth," and "poverty alleviation," while co-authorship networks show concentrated collaboration within small research groups. The findings suggest that Sharia economics has substantial potential to contribute to SDGs, particularly through instruments like green sukuk and waqf, but greater interdisciplinary collaboration and exploration of emerging topics like technology and post-pandemic recovery are needed. These insights have significant implications for both academic research and policy-making in Indonesia and beyond.

The Impact of Daily Mindfulness Practice and Meditation on Stress Reduction and Improvement in Quality of Life in Indonesia

This study investigates the impact of daily mindfulness practice and meditation on stress reduction and quality of life improvement among individuals in Indonesia. Using a quantitative research approach, data were collected from 230 participants through a structured questionnaire, with responses measured on a Likert scale. Structural Equation Modeling (SEM) using Partial Least Squares (PLS) was employed to analyze the relationships between mindfulness, meditation, stress reduction, and quality of life. The results revealed that daily mindfulness practice and meditation significantly positively affect stress reduction and quality of life improvement. Meditation demonstrated a stronger effect on stress reduction, while mindfulness showed a slightly higher impact on overall quality of life. These findings highlight the importance of integrating mindfulness and meditation into mental health interventions to promote well-being and manage stress effectively. This research contributes to the growing body of evidence supporting mindfulness-based practices and offers valuable insights for mental health professionals and policymakers in Indonesia.

ANALYSIS OF THE EFFECT OF CARBON TAX ON FOSSIL FUELS AND RENEWABLE ENERGY IN EUROPEAN COUNTRIES IN THE PERIOD 1996 "“ 2022

This study aims to analyze the impact of carbon tax implementation on fossil fuel consumption and renewable energy development in European countries over the period 1996-2022. The increasing use of fossil fuels has become a global issue as their carbon emissions trigger climate change and other negative impacts. As a solution, renewable energy is seen as a cleaner and more environmentally friendly alternative. A carbon tax is implemented as one policy to encourage the transition to renewable energy by imposing a surcharge on fossil fuels based on the amount of carbon emissions produced. This study uses panel data to measure the effect of carbon tax on fossil fuel consumption and renewable energy use in European countries in the period 1996 - 2022. The results of the analysis show that the implementation of carbon tax has no significant effect on fossil fuel use but can increase the use of renewable energy in the sample countries. The findings provide important insights for Indonesian policymakers in designing carbon tax policies to support a more sustainable energy transformation.

Economic Growth and Environmental Quality: A Study on Mineral-Rich Provinces in Indonesia

Research Originality: This research focuses on Indonesia's mineral-rich provinces and offers originality through its comprehensive analysis of the bidirectional relationship between economic growth and environmental quality, using the Environmental Quality Index (EQI). Research Objectives: This study examines the relationship between economic growth and environmental quality in the Mineral Economy Provinces of Indonesia.Research Methods: The data used in this research is secondary data from 2015 to 2022. The analysis method employed is the simultaneous equation model using Two Stage Least Squares (2SLS).Empirical Results: The results show that in model 1, economic growth is significantly influenced by exogenous variables such as the environmental quality index, energy consumption, revenue sharing funds, investment, and population. In model 2, environmental quality is significantly influenced by exogenous variables such as GDP, mining output, energy consumption, and forest. Good environmental quality can enhance economic growth. Conversely, increased Economic growth can degrade environmental quality.Implications: The study's findings suggest that policymakers in Indonesia's mineral economy provinces should prioritize sustainable development to balance economic growth with environmental preservation.JEL Classification: Q43, Q50, Q56

Development of a Mobile App for Smoking Cessation: a Qualitative Study

Smoking is a public health concern in Indonesia. A challenge facing Indonesian healthcare system is that the use rate of in-person smoking cessation counseling is low due to smokers’ concerns about their privacy. This challenge has limited the ability of Indonesian health researchers and policy makers to develop and implement evidence-based practices to prevent smoking. The development of digital technologies in Indonesia has offered various opportunities to address this issue. Mobile devices are ubiquitous in Indonesia and have the potential to deliver counseling services for smokers. This study was part of the Mobile Application System for Smoking Cessation program and aimed to investigate the culturally-tailored features of mobile apps to prevent smoking in Indonesia. Data were collected through structured interviews and Focus Group Discussions (FGDs) among Indonesian policy makers and experts from universities and NGOs. We also reviewed relevant documents recommended by participants. We found that to develop a culturally-tailored mobile app for smoking cessation in Indonesia, it is important to understand smokers’ characteristics, smoking status, smoking behavior, and level of motivation to quitting smoking. We also found that following the World Health Organization’s 5A (Ask, Assess, Advise, Assist, Arrange) and 5R (Relevance, Risk, Reward, Roadblocks, Repetition) strategies is a key to improve the feasibility and acceptability of a smoking-cessation mobile app. App-based interventions need to be integrated with the practices performed by counselors and health workers and should be easily accessed by smokers.

The influence of parental involvement on academic and sporting achievement: a study of Indonesian students in West Sumatra

This study investigates the impact of parental involvement on students' academic and sporting achievements in Padang, West Sumatra Province, Indonesia. Using a sample of 112 junior high school students, we examined how different forms of parental involvement correlate with students' participation in competitive sports and academic performance. The research employed a quantitative approach, utilizing surveys and statistical analysis including ANOVA. Results indicate that students with parents involved in both academic and sporting activities show significantly higher rates of participation in competitive sports (64.4%) compared to those with uninvolved parents (48.4%). Moreover, students whose parents were involved in their studies reported higher academic achievements and were more likely to receive academic awards. The study also explored the concept of strength-based parenting (SBP) and its potential benefits. Our findings underscore the importance of comprehensive parental involvement in fostering children's success in both academic and athletic domains, providing valuable insights for educators and policymakers in Indonesia and beyond. Keywords: Parental involvement, Academic achievement, Sports participation, Family, Strength-based parenting

Comparative analysis of Indonesia’s energy system scenarios: Assessing emissions reduction strategies and cost-effectiveness

Abstract This research conducts a comprehensive comparative analysis of energy system scenarios in Indonesia, examining their emissions reduction strategies and cost-effectiveness. The study utilizes the least-cost optimization approach using LEAP (Long-range Energy Alternatives Planning System) and NEMO (Next Energy Modeling system for Optimization). Four distinct scenarios are evaluated: Business as Usual (BAU), Zero Emissions (ZER), Demand Reduction (DMR), and Net Zero Emission (NZE). The findings suggest that while the ZER scenario may achieve significant emission reductions compared to BAU, with an average of 382.9 million tons CO2e/year, it comes at a higher cost per unit of emission mitigated by the average of 170.8 USD/tons CO2e. On the other hand, the DMR scenario, with its focus on demand-side management, offers a more cost-effective approach to emission mitigation, reaching 81.0 USD/tons CO2e. Combining both strategies, the NZE scenario proves to be the most effective in emission mitigation and cost, with 693.7 million tons CO2e/year and 54.0 USD/tons CO2e, respectively. This research seeks to inform Indonesian policymakers, energy planners, and stakeholders in developing sustainable energy systems that effectively reduce emissions while considering economic feasibility.

A panel data analysis of the effect of audit quality on financial statement fraud

PurposeFinancial statement fraud has become a global concern, and auditors are increasingly focused on identifying and investigating it. Auditors may play a crucial role in investigating and reducing financial statement fraud, and this is particularly important in developing countries where fraudulent practices are more prevalent due to the lack of strict regulations and oversight. This study investigates whether enhanced audit quality has an impact on reducing financial statement fraud. The primary aim is to recognize whether a higher level of audit quality relates with a decrease in fraudulent activities in Indonesia, which is one such country that has not yet adopted IFRS.Design/methodology/approachThis study investigates the effect of audit quality, as measured by audit tenure, audit fee, and audit size, on the dependent variable of financial statement fraud, as indicated by Dechow F-value. The sample for this study comprises 951 observations from 2015 to 2020, and the research design utilizes a panel data approach. To test the main hypothesis, OLS, and GMM estimation techniques are employed.FindingsThe analyses reveal a negative relationship between audit tenure and financial statement fraud. This suggests that shorter audit tenure may be associated with an increased risk of financial statement fraud. This heightened risk could stem from auditors having limited time to thoroughly understand the company's operations and internal controls, potentially making it more challenging to detect and prevent fraudulent activities perpetrated by the client. Conversely, a positive relationship is identified between audit fees and financial statement fraud, suggesting that companies paying higher fees may be engaging auditors less adept at detecting fraudulent activities. Furthermore, a negative relationship is observed between Big-5 and financial statement fraud, which may be due to the greater resources, expertise, quality control, scrutiny, reputation, and ethical conduct of Big-5 audit companies.Research limitations/implicationsThis study only focused on listed companies in Indonesia, therefore, caution should be exercised when generalizing the findings to other developing and Muslim countries such as Malaysia. The findings may differ due to the adoption of IFRS in Malaysia. As such, it is important for future studies to include Malaysia as a sample and compare the results with those of Indonesia. This comparison would demonstrate the impact of IFRS adoption on the relationship between audit quality and financial statement fraud and provide insights for policy makers in Indonesia.Practical implicationsThe findings of this study have important implications for developing countries that have been shown to be more susceptible to fraud than developed countries. This study contributes to the existing research on the role of audit quality in reducing financial statement fraud and emphasizes the need for auditors and accountants to take a proactive approach in detecting and investigating financial fraud.Originality/valueThis study is a new study because it investigates the relationship between audit quality and financial statement fraud in Indonesia, a developing Muslim country that has not yet adopted International Financial Reporting Standards (IFRS). The study provides valuable evidence on the unique factors that influence fraud in Indonesia and fills a gap in the literature as previous studies on this topic have largely focused on developed countries. Additionally, the study recommends that policymakers in Indonesia consider implementing IFRS to improve the reliability of financial reporting and strengthen the effectiveness of the auditing process, thus reducing the incidence of fraud.

The Effect of Land Area and Labor on Production of Coffee in Indonesia

Indonesia is an agricultural country where most of the population works in the agricultural sector. Therefore, the agricultural sector contributes significantly to its economic growth. This study aims to determine the effect of land area and labor production of coffee in Indonesia. The study uses secondary data. Data analysis technique in this study is multiple linear regression with data panels in 32 provinces of high production coffee in Indonesia from 2017 until 2021. Dependent variable is coffee production and the independent variables are land and labor. Results show that land area has a positive and significant effect on coffee production. It means that raising the land area significantly increases the coffee production. However, labor has a positive but not significant effect on coffee production. This study is expected to help Indonesian policy-makers for drafting policies to increase coffee production in Indonesia. Keywords: coffee production, land area, labor, panel

Pengaruh Pembiayaan Murabahah, Musyarakah, dan Ijarah Terhadap Pertumbuhan Aset Bank Umum Syariah Yang Terdaftar Di OJK Periode 2018-2023

This study analyzes the impact of murabahah, musyarakah, and ijarah financing on the asset growth of Islamic commercial banks in Indonesia from 2018-2023 using the FGLS method for panel data analysis. Results indicate that murabahah and musyarakah financing positively affect asset growth, while ijarah financing negatively affects it. These findings offer valuable insights for Islamic banks, regulators, and policymakers in Indonesia.

Teaching Vocabulary under CLIL Approach in Indonesian Primary Schools: A Literature Review

This study sheds light on the roles of teachers and challenges they face in implementing CLIL approach in Indonesian primary schools since this approach has the feasibility to carry out at primary level. This study is a literature review that gains data related to the topic from journal articles and relevant books. This study reveals that teachers play a vital role in balancing the integration of content and language, designing a CLIL teaching materials and employing scaffolding vocabulary learning, a variety of vocabulary instruction and assessment. However, they face challenges such as limited English proficiency, cultural differences and contextual relevance, students’ motivation and engagement, the suitable teaching materials and resources, and assessment technique. Therefore, teachers are required to enhance their competences by participating in professional development programs, collaborating with colleagues, and seeking support from educational institutions and resources. This study provides insight to policy makers in Indonesia to provide the necessary support and resources to empower primary school teachers in effectively implementing the CLIL approach and fostering students' vocabulary development, leading to improved learning outcomes and the preparation of globally competent learners.

A System Dynamics Model for Rooftop Solar PV System Development in Indonesia

Despite of Indonesia’s vast solar energy potential according to the Indonesian Ministry of Energy and Mineral Resources, Indonesia’s total installed capacity of rooftop solar photovoltaic (PV) is very far from Indonesia’s target of 3.6 GW in 2025. Indonesia once applied net metering scheme for rooftop solar PV policy and was expected to be able to boost rooftop solar PV growth. A system dynamics approach is used in the research to develop an assessment model to evaluate the policies’ impact on residential rooftop solar PV system growth. A Causal Loop Diagram was established then transformed into Stock and Flow Diagram (SFD) using software Vensim PLE 10.1.3, which was used to simulate several policies’ scenarios related to residential rooftop solar PV adoption and CO2 emissions reduction. Ten scenarios were simulated in this study involving three groups of intervention: initial net metering tariff, reduction on initial solar PV cost, upper limit of ROI, and combination of initial net metering tariff and initial solar PV cost reduction. The simulations revealed that combination of increasing net metering tariff to 80% & initial cost reduction 30% has the highest potential solar PV installations, the highest CO2 emissions reduction, and the lowest accumulation cost of net metering in 2030. This study can be used as reference by the policy makers in Indonesia to formulate the optimum policy to boost rooftop solar PV growth as the simulations shows that residential rooftop solar PV with the right intervention can meet the government’s target of rooftop solar PV in 2030.