Indonesian Sector Research Articles

ANALYSIS OF THE COMPETITIVE ADVANTANGE MODEL OF MSMEs IN INDONESIA: URGENCY ENTREPRENEURIAL ORIENTATION, MARKET ORIENTATION, AND CUSTOMER CAPITAL AS PREDICTORS

MSMEs are the backbone of the Indonesian economy, contributing a large part of the country's gross domestic product (GDP) and creating jobs for millions of people. In the face of increasingly fierce global competition, it is essential to understand the factors that influence the competitive advantage of MSMEs. The main objective of the research is to analyze the influence of entrepreneurial orientation, market orientation, and customer capital on competitive advantage. The sample in this research consisted of 160 respondents from MSME actors in the culinary sector in Indonesia who were determined using a convenience sampling approach. Data collection uses a questionnaire instrument, which is then distributed online. Data analysis uses the SPSS application by displaying data processing results through testing research instruments with validity and reliability tests, multiple regression analysis, coefficient of determination and hypothesis testing. Based on the results of data analysis, entrepreneurial orientation, market orientation, and customer capital have a positive and significant effect on competitive advantage. Overall, this research contributes significantly to the theoretical understanding of MSME competitive advantage and provides practical guidance for the development, management and coaching of MSMEs in Indonesia. By strengthening entrepreneurial orientation, market orientation, and customer capital as predictors of competitive advantage, MSMEs can improve their market position and contribute more to economic growth and community development.

Board gender diversity and cyber security disclosure in the Indonesian banking industry: a two-tier governance context

PurposeThis study aims to determine the effect of board gender diversity on cyber security disclosure (CSD) in the banking sector of Indonesia as a developing country that adheres to a two-tier system.Design/methodology/approachThis study uses a panel data of 47 banks listed on the Indonesia Stock Exchange from 2014 to 2021. The board gender diversity is measured by three proxies, the proportion of women on the board, BLAU Index value and the critical mass of women. The authors used generalized method of moments estimation to eliminate the simultaneous equation bias.FindingsThe results show that the women board of commissioners increases CSD, and the women of board of directors/top management team were significantly negative for CSD.Research limitations/implicationsFirst, this research was only conducted in the banking sector. The results cannot be generalized to non-financial companies. Second, there is no measurement of the quality of the board from the level of education, experience, expertise and other characteristics of diversity such as age, nationality and religion.Practical implicationsThe study has revealed the need for the government’s role in providing oversight of the presence of women on the board so that banks fully comply with Indonesia Financial Services Authority regulations. Banks should also actively launch policies regarding the presence of women on the board to give a positive effect to stakeholders that women play an important role in decision making. Banks must also adjust the composition of female commissioners with a threshold of two people to maximize their function as supervisors.Originality/valueThis is the first research conducted on the banking sector in Indonesia as a developing country that adheres to a two-tier system. The results of this study provide evidence that patriarchal culture is still dominant in Indonesia.

Influence of Intellectual Capital on Financial Performance in the Banking Sector in Indonesia

The aim of this research is to examine the influence of intellectual capital on the financial performance of banking companies which is moderated by good corporate governance. The method used in this research is multiple linear regression analysis with moderating variables using Moderated Regression Analysis (MRA). The population in this study was 45 banking companies. The banking sector is one of the sectors that bridges between people who have excess funds and people who need funds. Not only is the company's financial performance a reference for the company's success, but company resources can also provide increased financial performance for the company's sustainability. Intellectual capital is one of the factors that influences bank performance. The research results show that Intellectual Capital has a positive effect on financial performance and Good Corporate Governance. However, Good Corporate Governance does not moderate the relationship between Intellectual Capital and financial performance. These findings underscore the importance of Intellectual Capital in improving financial performance and Good Corporate Governance practices, but do not support the moderating role of Good Corporate Governance in this relationship.

CSR and happiness: Indonesian study from banking sector revealed positive effect of CSR involvement on employee wellbeing

PurposeThis paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.Design/methodology/approachThis briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.FindingsA study from the financial sector in Indonesia showed that CrM (cause-related marketing) has a positive effect on employee happiness. This was especially the case when the employees were actively involved in the CrM.Originality/valueThe briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Increasing Employee Job Performance, the Effects of Perceived Organizational Support and Transformational Leadership, Mediated By Work Engagement

Rapid developments in the financing industry sector in Indonesia have created a dynamic and challenging business competition. Sustainable business growth is one crucial achievement that is a point of competition between finance companies. Therefore, the optimal job performance of each employee is a significant factor. Previous studies has shown a connection between job performance with variables such as POS, transformational leadership, and work engagement in other industrial sectors. This study was aimed at analysing the influence of said variables among finance company employees in Central Jakarta and South Jakarta. The research was conducted in quantitative methods with primary data collection using questionnaires. The sample was taken using a purposive sampling technique, with a total of 250 respondents who are employees of finance companies in selected areas. Data analysis used the Structural Equation Model (SEM) with AMOS version 22 software and the Sobel Test to calculate the effects of each variable and its connection. This research results show that POS and transformational leadership have a positive influence on the job performance of finance company employees in Indonesia. It was also revealed that work engagement does have a mediating role in the relationship between the previous variables and job performance. In this context, the study indicates that factors from within and outside employees, such as POS and transformational leadership, play a role in improving their job performance by also increasing work engagement.

Considerations of Religion and Situational Factors, Internal Control on the Occurrency of Fraud Trends: An Experimental Study of the Financial Services Sector in Indonesia

Financial statement fraud does not only occur in the private sector but can also occur in the government sector in the form of material misrepresentation of financial statements to cover up the actual financial condition by carrying out financial engineering. This study aims to examine religious considerations and situational factors, namely pressure or directives from superiors and internal controls against committing fraud tendencies. Literature reveals that religion plays a dominant role in shaping employees' values in their work. This study used an experimental method on 33 financial institution employees divided into two sessions to see the impact of scenarios. The analysis technique using Analysis of Variances (ANOVA) is used to perform multivariable comparative analysis. The results of empirical testing show that internal control factors have a negative influence on fraudulent behavior, and pressure factors or superior directions have a positive effect on the tendency to commit fraud. Meanwhile, religious considerations have less influence on fraud tendencies.

Peran Pemerintah Dalam Meningkatkan Perekonomian Indonesia Pada Masa Pandemi Covid-19

Introduction/Main Objectives: The Covid-19 pandemic in Indonesia has paralyzed the Indonesian economy; many MSMEs have gone bankrupt because their income has decreased, and many companies have laid off their employees. This study aims to analyze several government policies to save the economy during the Covid-19 pandemic in Indonesia. Research Methods: This study uses qualitative data from articles, books, journals, or other related sources. Finding/Results: The results of the study show that to overcome the economic problems, the government has taken steps in the form of fiscal and monetary policies. Fiscal policies include the pre-employment card program, tax incentives, launching budget refocusing, and budget reallocation. Monetary policies such as MSME credit restructuring Bank Indonesia's rupiah stability. Conclusion: The government must make every effort to stabilize and improve the economic sector in Indonesia to improve people's welfare

Unraveling the Role of Actors in Sustainable Tourism Village Management Using the Pentahelix Collaboration Model in Bandung Regency

The number of tourists coming to Indonesia has increased, referring to data from the Central Bureau of Statistics (BPS) (2024), foreign tourist visits are still increasing, namely by 30.17% in 2022 and cumulatively at the end of 2023, the number of foreign tourist visits has reached 10. 41 million visits, an increase of 110.86 percent compared to the same period in 2022-2023. This shows that the recovery of the tourism sector in Indonesia is still continuing. Tourist villages have become an alternative travel experience for tourists after the cultural shift from mass tourism as a result of the Covid-19 pandemic, which has seen crowds and massive numbers of immigrants shift to alternative tourism to enjoy rural nature and the social and cultural life of its people. Tourism villages are one of the priority programs of the Indonesian Ministry of Tourism and Creative Economy, the implementation of which requires cooperation from various parties. Petahelix Cooperation is an option in implementing this program. This research focuses on identifying the role of each actor involved in the Tourism Village ecosystem from each stakeholder who is part of the Penta Helix collaboration, namely the government as a facilitator and regulator, academics as a conceptor and tasked with sharing academic information, business which is a business actor who plays a role as an enabler for economic progress, community communities who serve as accelerators and drivers in tourism development and the media as information providers, entertainers and as social controls. Using a qualitative explanatory research method with a case study approach to describe the researcher's general view and try to reveal in depth the role of 5 actors in managing the Tourism Village in Alam Endah Village, Bandung Regency.

Trends and Implementation of Electric Vehicle Ecosystem in Indonesia: A Literature Study

This research discusses the implementation of the electric vehicle ecosystem in Indonesia as one of the steps to support the goals stated in the Paris Agreement, namely achieving net zero emissions (NZE) by 2060. Indonesia is one of the countries that implements electric vehicles to achieve NZE. However, Indonesia's technology is not yet established for producing electric vehicles and distributing them to the global market. Therefore, this research was motivated to look at 20 sources of literature that have discussed cooperative relations in the Indonesian automotive industry sector with electric vehicle-producing countries. This research maps this literature using a taxonomy method in three main topics, namely (1) the development of the transportation and automotive sector in Indonesia, (2) China, South Korea, and Japan as cooperation partners in the electric vehicle industry, (3) the readiness of electric vehicle ecosystem implementation in Indonesia. This research also includes the explanation of national interest theory to see the perspective of international relations in the purpose of the Indonesia government in achieving electric vehicle ecosystem.

Pengaruh Strategi Inovasi Terhadap Penggunaan Teknologi Informasi Dalam Industri UMKM

In the current era of digitalization and globalization, innovation strategies are very important to build MSMEs to improve performance and competitiveness. The aim of this research is to understand the impact of innovation strategies on the use of information technology in the Micro, Small and Medium Enterprises (MSME) sector in Indonesia. This research applies a qualitative approach to analyze data from various relevant literature, such as books and scientific journals, to understand how innovation strategies can encourage the adoption of information technology and how this technology contributes to improving the performance of MSMEs. This research shows that the synergy between innovation strategies and the use of information technology is very useful for improving the performance and competitiveness of MSMEs. By using innovation strategies and utilizing information technology effectively, MSMEs can overcome various business challenges and take advantage of market opportunities to achieve sustainable growth and long-term success. The results of this research provide a significant contribution to understanding and practice in the MSME industry.

Perlindungan Hukum Jasa Keuangan Fintech Dalam Perkembangan Ekonomi Di Indonesia Pada Era Indusri 4.0

The Fintech-based financial services sector in Indonesia shows developments that are in line with regional and global sector dynamics. This development plays an important role in accelerating national economic growth, where the financial services sector functions optimally to maintain the smooth running of the financial system. This system is the foundation for sustainable development, supports community financial independence, and improves the distribution of development. This study uses a normative juridical approach with descriptive analysis. The data was analyzed qualitatively and juridically. The research results show that regulations in the financial services sector are developing rapidly due to demands from regional and global changes. One of the main challenges faced is the ASEAN Banking Integration Framework (ABIF). Legal developments in this sector can be seen in regulatory changes in institutions, services, products, and dispute resolution. Legal reform is still needed to provide a strong legal basis for the financial services sector, especially in civil and banking law. This reform aims to adapt regulations to the latest developments and ensure the stability and reliability of the financial services sector in the future.

Competency Standardization for Indonesian Tourism Human Resources: Implementation in Education, Training and Competency Certification

The increasing trend of Indonesia's tourism competitiveness has placed it as one of the priority industrial sectors in Indonesia. However, this achievement is not in line with increasing the competitiveness of human resources (HR). The national work competency standardization system (SKKN), which the Indonesian Government has implemented since 2012, has not been effective, and human resources' competitiveness has even shown a negative trend. It is feared that this situation will hamper the growth rate of Indonesia's tourism competitiveness in the future. The purpose of this study is to critically analyze the application of the SKKNI system, which is focused on education, training, and competency certification of Indonesian tourism human resources, to uncover the inhibiting factors for its implementation. This education, training, and competency certification are the main components in the performance of the SKKNI system in Indonesia. The research was carried out by reviewing the relevant literature, analyzing the processes and elements in applying the SKKNI system. Research data is secondary data collected from data sources of Government and non-government institutions and scientific and non-scientific literature available on official government websites and the internet. The research results are then triangulated to get a comprehensive picture and understanding of the application of the SKKNI system. The results showed that the implementation of the SKKN system was effective in increasing the capacity of Indonesian tourism human resources but has a tiny growth Quantitatively. The main obstacle is limited trainer, assessor, facilities, and educational, training, and certification institutions to produce trained and certified human resources of tourism.

Water Supply, Waste Management, Waste and Recycling Sector in Indonesia: A Study of Location Quetion, Classic and Spatial Shift Share and Export-Import

The Water Supply, Waste Management, Waste and Recycling sector is one of the constituent sectors of the Indonesian economy. Water is an important component of human life, especially clean water. The provision of clean water is an activity that should be prioritized, in line with the 6th SDGs goal of clean water and proper sanitation. Waste and waste as by-products of economic activities, then management into useful goods is very important in supporting sustainable development, in accordance with what was launched by the United Nations through the concept of SDGs in goals 8, 11, 12, 13, 14 and 15. The data used is sourced from BPS from 2017-2022. Data analysis using LQ, ΔLQ, Classic and Spatial Shift Share and Export-Import. The results showed that (1) The PAPASLIDU sector in West Java is a superior sector in the present and future. (2) Sector growth in DKI is best compared to West Java, Central Java and East Java. The competitiveness of Central Java and East Java is still low (3) DKI and Central Java still remain importers, West Java changed from importers to exporters and East Java remained as an exporter. Suggestions (1) Policies in West Java in the PAPASLIDU sector need to be maintained, and the DKI, Central Java and East Java regions need improvement, (2) Improvements to reduce imports and increase competitiveness by striving to increase the provision of clean water for the community. Reducing waste generation and waste by managing it into useful and economically valuable goods, namely expanding activities that have been carried out and adding new activities for areas that do not yet exist.

The influence of financial bootstrapping and digital transformation on financial performance: evidence from MSMEs in the culinary sector in Indonesia

The influence of financial bootstrapping and digital transformation on financial performance: evidence from MSMEs in the culinary sector in Indonesia

Konsep Transformasi Struktural Pada Sektor Industri

Structural transformation is a process of transition from traditional economic system to modern economic system. Structural transformation is characterized by a shift in labor and investment from the primary sector to the secondary sector and the latter to the tertiary sector. Economic growth accompanied by structural transformation can be achieved by: (1) increasing productivity in each sector and (2) shifting labor from low-productivity to high-productivity sectors. One of the primary sectors in Indonesia is agriculture. Agriculture is an important sector for Indonesia. Indonesia is a country that is undergoing structural transformation the structural transformation of the economy generally from traditional agriculture to the agro-industrial sector and the non-agricultural sector (agribusiness) that creates higher added value (BPS, 2015)

THE INFLUENCE OF FINANCIAL TECHNOLOGY AND LIQUIDITY ON THE FINANCIAL PERFORMANCE OF BANKS IN INDONESIA

The purpose of this study is to evaluate how financial technology and liquidity levels affect the financial performance in conventional commercial banks in Indonesia that are listed in the Financial Services Authority. The research population includes conventional commercial banks listed on the Indonesia Stock Exchange from 2017 to 2023. The sampling technique is conducted through purposive sampling. The data analysis method uses panel data regression analysis. The data used are from 49 banks with a total of 176 financial reports, and hypothesis analysis is conducted using SPSS software. The research results indicate that financial technology has an impact on the financial performance of the banking sector in Indonesia, while liquidity levels also play a role in influencing the financial performance in the same banking sector.

Analisis Dampak Penerapan Etika Pemasaran Pada PT. Telkom Indonesia

This research analyzes the impact of the application of production and marketing ethics at PT Telkom Indonesia (Persero) Tbk, a state-owned company operating in the information and communication technology services sector in Indonesia. Through a qualitative approach, this research aims to understand how PT Telkom applies ethics in the marketing activities of its products, as well as the impact caused by the application of ethics. Secondary data from literature study is used as the main source of information. The results of this research are expected to provide insights for PT Telkom to improve the application of ethics in its operational activities, as well as useful for the government in formulating policies related to marketing ethics in Indonesia. In addition, this research is also expected to help the public in understanding the importance of marketing ethics, and encourage them to choose ethically produced products.

The Impact of the Pandemic on the Performance of Industrial Construction Projects in Indonesia

The Covid-19 outbreak has caused economic downturns and recession. In 2021, Covid-19 cases in Indonesia has a significant increase. The construction sector in Indonesia faced substantial challenges due to the pandemic, evidenced by contracted growth. The impact of the Covid-19 pandemic on the construction industry cannot be viewed solely from an economic perspective but must consider various factors. Issues in the construction industry affect project performance. Previous research could not interpret the relationship between individual pandemic impacts and project performance levels. Therefore, this study aims to determine factors Covid-19 pandemic affects construction project performance in Indonesia. The study identifies five factors that may influence project performance: (1) challenges in implementing social distancing, (2) movement restrictions, (3) challenges of working from home (WFH), (4) planning for worker limitations, and (5) use of personal protective equipment (PPE). Data was collected using questionnaires distributed to project managers in the construction industry. Primary analysis was conducted using Partial Least Square (PLS). The results indicate that three variables significantly impact project performance in the construction industry. The level of movement restrictions during the pandemic (lockdown) and the planning for worker limitations negatively affect project performance, while movement restrictions positively affect the challenges of implementing social distancing.

Halal food sustainable traceability framework for the meat processing industry

Purpose This study aims to propose a framework for Halal Food Sustainable Traceability, with the purpose of investigating the implementation of traceability and sustainability within organizations operating in the halal food industry as well as exploring the impact of these practices on organizational performance. This study examines the meat processing sector in Indonesia, focusing on medium to large-scale industrial operations. The rationale for this investigation stems from Indonesia’s substantial potential in the competitive worldwide halal food industry. Design/methodology/approach The research framework has been developed by an extensive review of relevant literature, with a specific emphasis on the cycle of the halal food sustainable traceability framework. This cycle encompasses four key stages, including the roles played by authorities, the process of standardization, the implementation phase and the importance of collaboration. The study analyses and validates data using partial least square-structural equation modeling and empirically tests the theoretical framework using 109 Indonesian halal food industry data. Findings The research identifies potential obstacles and difficulties that may arise during different phases of the halal food sustainable traceability framework. Concerns regarding authority, standardization, implementation and collaboration are among these. In addition, strategies for overcoming these obstacles are deliberated upon, including knowledge sharing, transparency, ongoing reporting and strategic collaboration. Originality/value The present study introduces a Halal Sustainable Traceability Framework that incorporates the principles of halal, traceability, sustainability and their effects on organizational performance. This study offers significant perspectives on the difficulties and resolutions pertaining to the traceability and sustainability of halal food in Indonesia.

Analysis of Rahn and Murabahah Financing in Baitul Maal Wa Tamwil (BMT): Qualitative Study of Agricultural Businesses in Kanigoro, Blitar Regency, Indonesia

The agricultural sector in Indonesia plays an important role in supporting food security and economic stability. However, this sector is still faced with various obstacles, one of which is limited access to capital. Baitul Maal Wa Tamwil (BMT) as an Islamic microfinance institution offers financing solutions for farmers using sharia principles, such as rahn and murabahah. This research aims to analyze the rahn and murabahah financing schemes implemented by BMT in Kanigoro, Blitar Regency, as well as their impact on agricultural businesses in the area. This research uses a qualitative approach with a case study method. Data was collected through in-depth interviews with BMT administrators, rahn and murabahah financing customers, as well as other related parties. The data analysis technique was carried out using thematic analysis. BMT in Kanigoro, Blitar Regency implements rahn and murabahah financing schemes with sharia principles in accordance with the provisions of the Islamic religion. Rahn financing uses collateral, while murabahah financing uses a buying and selling system with an agreed profit margin. BMT rahn and murabahah financing has several advantages compared to conventional financing, namely: Based on sharia principles that avoid usury; Easy and fast application process; Competitive interest rates; Assistance and coaching for customers. However, BMT also faces several challenges in carrying out this financing, namely: Lack of public understanding about sharia financing; Strict requirements for applying for financing; High risk of crop failure. In conclusion, the rahn and murabahah financing offered by BMT in Kanigoro, Blitar Regency is an alternative solution for farmers in accessing capital. The implementation of this financing scheme has a positive impact on agricultural businesses and improves farmer welfare.