Search

Foreign bribery is a crime that occurs when an individual or company gives, promises, or offers something of value to a foreign official or person holding a public position in another country to obtain or retain a business advantage. This research explores the negative impact of the shadow economy, with a special focus on the practice of foreign bribery in Indonesia. This study uses a normative juridical approach. Researchers analyze and process collected materials qualitatively to classify legal materials and content analysis. The study's findings indicate that foreign bribery, a form of corruption involving illegal transactions between companies and foreign officials, is one manifestation of the shadow economy. This phenomenon threatens Indonesia's economic stability, social justice, and institutional integrity. Foreign bribery is against the principles of Pancasila, the Indonesian nation's basic ideology. This practice produces social and economic injustice by benefiting some people while harming others, often the most vulnerable. Indonesia needs urgent action to combat foreign bribery and its negative impact on the shadow economy. Through regulation of foreign bribery, effective law enforcement, and public education about the dangers of foreign bribery, Indonesia can strengthen the principles of Pancasila and build a more just and prosperous society. [ABSTRACT FROM AUTHOR]

Purpose This research aims to look at the description of the characteristics and factors that influence the categories of income levels under class (vulnerable and poor) and aspiring middle class in informal sector labor in Indonesia 2022. Design/methodology/approach The dataset from raw data of the National Labor Survey (SAKERNAS) in February 2022 collected by Badan Pusat Statistik (BPS). This research used the ordinal logistic regression, model of partial proportional odds (PPOM). The dependent variable used is the income level category based on the classification determined by World Bank. Findings This research finds that 58 percent of the population are informal labor. The results of the analysis show that the level of education, job training, work experience, type of work, age, gender, marital status, working hours, and residential area classification have a significant effect on income level categories. Research limitations/implications This research only includes sample of informal sector labor who have income and based on the main job status classification from BPS. Originality/value In this research, income of informal sector labor are categorized based on classification determined by World Bank. Then there has not been much research on the characteristics of informal sector labor and what influences the level of their income category. [ABSTRACT FROM AUTHOR]

The cigarette commodity is the second largest contributor to the food poverty line. Several aspects imply that poor people consume cigarettes despite having a minimal income. In this study, we are interested in investigating factors influencing poor people to be active smokers. Since the consumption number is a set of count data with zero excess, we have an overdispersion problem. This implies that a standard Poisson regression technique cannot be implemented. On the other hand, the factors involved in the model need to be selected simultaneously. Therefore, we propose to use a zero-inflated negative binomial (ZINB) regression with a minimax concave penalty (MCP) to determine the dominant factors influencing cigarette consumption in poor households. The data used in this study were microdata from the National Socioeconomic Survey (SUSENAS) conducted in March 2019 in East Java Province, Indonesia. The result shows that poor households with a male head of household, having no education, working in the informal sector, having many adult household members, and receiving social assistance tend to consume more cigarettes than others. Additionally, cigarette consumption decreases with the increasing age of the head of household. [ABSTRACT FROM AUTHOR]

This study aims to analyze: 1) the socio-economic characteristics of households of informal sector workers in Jambi City; 2) the coping strategies of these households in facing the impacts of the COVID-19 pandemic; 3) the influence of household socioeconomic characteristics on the economic coping strategies of informal sector workers in Jambi City. The primary data used in this study were sourced from a survey of households of informal sector workers in Jambi City. The analysis utilized descriptive statistical tools and structural equation modeling (SEM). The findings of the study reveal that: 1) informal sector workers are generally of productive age, with relatively good education, and predominantly engaged in trading and daily wage labor; 2) the COVID-19 pandemic has negatively impacted the social conditions of these households, particularly in terms of income, savings, and non-food expenditures; 3) in the context of economic coping strategies, the strategy of generating additional income is more commonly employed by these households compared to cutting back expenses; 4) the characteristics of the wife and the family significantly influence the coping strategies adopted by households of informal sector workers. In contrast, the characteristics of the household head do not have a significant impact. [ABSTRACT FROM AUTHOR]

The study assesses how ICT modulates the effect of informal sector on income inequality and investigates critical mass or threshold of ICT at which the diffusion of information with mobile cellular reduce income inequality. The ICT indicators are the regional ICT development index (RIDI), computer penetration and mobile cellular penetration. The empirical strategy used is Generalized Method of Moments (GMM). Covering panel data from 460 districts/cities in Indonesia for 2015–2019, the study shows that ICT measures of RIDI and computer penetration directly exacerbate income inequality, otherwise mobile cellular penetration directly reduces it. Enhancing ICT beyond certain thresholds is necessary for ICT to modulate informal sector to reduce income inequality. The corresponding ICT thresholds for the reduction of income inequality is 32.78 mobile cellular penetration per 100 people. The established thresholds make economic sense and can be feasibly implemented by policy makers to induce favourable effects on income inequality. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Application Business & Management / Jurnal Aplikasi Bisnis dan Manajemen is the property of IPB University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study examines digital financial inclusion and uses Fintech for informal micro small and medium enterprises (MSMEs) to overcome the financing gap. The researchers used primarily qualitative methods, namely a qualitative analysis strategy verification through inductive analysis. The results show that Indonesia's fintech landscape makes MSME a driver of the digital economy so that they can overcome the financing gap in the informal sector. The challenges faced by Fintech in encouraging MSME business efficiency in the form of unbalanced agency distribution, data security, data access problems, low digital financial literacy, low connectivity, and interoperability can be overcome by taking advantage of existing opportunities. These opportunities include the role of MFIs and cooperatives in promoting financial inclusion and the development of telecommunications infrastructure networks in Indonesia. The novelty of this research is the comprehensive evaluation of achieved progress in digital financial inclusion for MSMEs in Indonesia and the developed recommendation for regulations by relevant authorities to encourage the business efficiency of MSMEs through facilitating digital financial inclusion. [ABSTRACT FROM AUTHOR]

Copyright of Sociology & Technoscience / Sociología y Tecnociencia is the property of Universidad de Valladolid, Escuela Universitaria de Educacion and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The study provides evidence on the transition and growth of the formal sector in the Indonesian economy. It utilizes data from the National Labour Force Survey (Sakernas) for tracking the previous work status of labourers as formal or informal workers. The study also examines the implications of formalization of employment for the different rates of earnings of formal sector workers, given their human capital characteristics and different industries of employment. The study finds that the growth of employment in the formal sector is mainly the result of the entry of younger and better educated workers. Although there is some mobility from the informal to the formal sector, the results show that individuals who were previously working in the informal sector are less likely to move to the formal sector. In terms of earnings, there is evidence of scarring effects: individuals who are initially in the formal sector earn more than individuals who are initially in the informal sector. [ABSTRACT FROM AUTHOR]

Many developing countries, like Indonesia, struggle with tax evasion. It reduces government revenues, impeding government activities and a country's economic development. In this study, we look at the topic of tax evasion in Indonesia from 1980 to 2019. Using the "modified-cash-deposit-ratio" technique, we estimate the scale of tax evasion in Indonesia. We specifically calculate the loss in tax revenue caused by Indonesia's shadow economy. Using a variety of estimators, we then evaluate whether financial development can eliminate tax evasion. To estimate the long-run model for Indonesian tax evasion, we used Ordinary Least Squares with robust standard error (OLS-robust), Autoregressive Distributed Lag (ARDL), Dynamic OLS (DOLS), and Robust Least Squares-M-Estimation (RLE-ME). Our findings reveal that there is a non-linear long-run link between tax evasion and financial development in Indonesia, with an inverted U-shape curve indicating that a lower (higher) level of financial development corresponds to a higher (lower) level of tax evasion. An important policy implication is that the Indonesian government and the Central Bank of Indonesia should embark on programmes to increase financial inclusion, provide easy access to credit arrangements and financial facilities, and implement information technology-based financial systems capable of transmitting data to tax authorities. [ABSTRACT FROM AUTHOR]

Indonesia faces a growing informal sector in the wake of implementing a national social health insurance system—Jaminan Kesehatan Nasional (JKN)—that supersedes the vertical programmes historically tied to informal employment. Sustainably financing coverage for informal workers requires incentivising enrolment for those never insured and recovering enrolment among those who once paid but no longer do so. This study aims to assess the ability- and willingness-to-pay of informal sector workers who have stopped paying the JKN premium for at least six months, across districts of different fiscal capacity, and explore which factors shaped their willingness and ability to pay using qualitative interviews. Surveys were conducted for 1,709 respondents in 2016, and found that informal workers' average ability and willingness to pay fell below the national health insurance scheme's premium amount, even as many currently spend more than this on healthcare costs. There were large groups for whom the costs of the premium were prohibitive (38%) or, alternatively, they were both technically willing and able to pay (25%). As all individuals in the sample had once paid for insurance, their main reasons for lapsing were based on the uncertain income of informal workers and their changing needs. The study recommends a combination of strategies of targeting of subsidies, progressive premium setting, facilitating payment collection, incentivising insurance package upgrades and socialising the benefits of health insurance in informal worker communities. [ABSTRACT FROM AUTHOR]

Background: Providing an enabling environment for breastfeeding is hampered by the inequitable implementation of paid maternity leave, primarily due to perceived or actual financial costs. To estimate the real cost of paid maternity leave requires using reliable methods. We compared methods utilized in two recent studies in Indonesia. Study A estimated the financial need of providing paid maternity leave in the formal sector with a 10-year forecast at 21% coverage of eligible mothers, while study B estimated similar costs for the informal sector at 100% coverage annually. Results are critical for guiding future application of either method to inform paid maternity leave policies. Methods: We compared number of covered mothers working informally, total annual cost, and cost per mother. We modified some parameters used in study A (method A) to be similar to study B (method B) for comparison, namely the period of estimate (annual), coverage (100%), estimate of women potentially breastfeeding, exchange rate, female labor force participation rate, the percentage of women working in the informal sector, and adding administration cost. Results: The methods differ in determining the number of mothers working in the informal sector who gave birth, the minimum wage as unit cost, and administrative cost. Both studies estimated the cost at various lengths of leave period. Method A requires more macro (e.g. national/regional) level data, while method B involves (e.g. individual) micro level data. We compared the results of method A with method B, respectively: 1) number of covered mothers working informally were 1,425,589 vs. 1,147,204; 2) total annual costs including administrative costs were US$650,230,167 vs. US$633,942,726, and; 3) cost/mother was US$456 vs US$553. Conclusion: Certain flexibilities can be applied to both methods, namely using parameters specific to respective regions (e.g. provincial level parameters), flexible period of analysis, and the use of administrative cost. In a setting where micro data is scarce and not easily accessible, method A provides a feasible approach, while method B will be most appropriate if suitable micro data is available. Future comparison studies in other settings are needed to provide further evidence on the strengths and weaknesses of both methods. [ABSTRACT FROM AUTHOR]

In contrast to the majority of studies that have treated informal workers as a single homogeneous group, this article accounts for the possibility of "winners" and "losers" among informal workers. Applying unconditional quantile regressions to data from the Indonesian Family Life Survey, the authors are able to estimate the formal–informal wage gaps for different segments of the earnings distribution. Although the evidence confirms the existence of a substantial earnings penalty for many informal workers, there is also a group who earn roughly similar incomes to formal workers. The findings are consistent with Fields's (1990 and 2005) model of heterogeneous informal employment. [ABSTRACT FROM AUTHOR]

Background: The economic cost of not breastfeeding in Indonesia is estimated at US$1.5–9.4 billion annually, the highest in South East Asia. Half of the 33.6 million working women of reproductive age (WRA) in Indonesia (15–49 years) are informal employees, meaning they are working as casual workers or they are self-employed (small scale business) and assisted by unpaid/family worker(s). No specific maternity protection entitlements are currently available for WRA working informally in Indonesia. This study aims to estimate the financing need of providing maternity leave cash transfer (MCT) for WRA working in the informal sector in Indonesia. Method: The costing methodology used is the adapted version of the World Bank methodology by Vilar-Compte et al, following pre-set steps to estimate costs using national secondary data. We used the 2018 Indonesian National Socio-Economic Survey to estimate the number of women working informally who gave birth within the last year. The population covered, potential cash transfer's unitary cost, the incremental coverage of the policy in terms of time and coverage, and the administrative costs were used to estimate the cost of MCT for the informal sector. Result: At 100% coverage for 13 weeks of leave, the yearly financing need of MCT ranged from US$175million (US$152/woman) to US$669million (US$583/woman). The share of the yearly financing need did not exceed 0.5% of Indonesian Gross Domestic Product (GDP). Conclusions: The yearly financing need of providing MCT for eligible WRA working in the informal sector is economically attractive as it amounts to less than 0.5% of GDP nominal of Indonesia. While such a program would be perceived as a marked increase from current public health spending at the onset, such an investment could substantially contribute to the success of breastfeeding and substantial corresponding public health savings given that more than half of working Indonesian WRA are employed in the informal sector. Such policies should be further explored while taking into consideration realistic budget constraints and implementation capacity. [ABSTRACT FROM AUTHOR]

The development of the world economy created its own footprint as a result of the phenomenon. 1/3 of that space is owned by the informal economy also referred to as the Local Economy or System D. The connotation is to imagine a work phenomenon that is truly universal without a clear basis for labor. This increasingly sophisticated and world-class phenomenon takes the place of economic space left by the formal economy. The manipulation of the vast resources, the dynamic practices that take place in the legal and illegal dimensions, provide a guarantee of employment shadowed by survival. This paper traces the phenomenon occurring on the Sebatik Islands of Malaysia and Indonesia. The study method was qualitative based on the interviews of key informants. The results suggest that this phenomenon occurs due to the fact that economic space and opportunities can be exploited for the sake of sustainability in meeting economic demands, especially marginalized groups at the border. [ABSTRACT FROM AUTHOR]

The immense wave of urbanization and the limited formal job opportunities available in large Asian cities have led to the proliferation of street vending activities, which are often controversial and sometimes illegal due to their occupation of public space. The Kutek Sunday Market in Depok municipality, Indonesia was forced to move from a busy university location to a relatively secluded residential neighbourhood. Despite this disadvantage, the market has continued to attract sizeable business. This case study, based on extensive field observation and interviews, describes how the market location was selected and how it is spatially arranged to meet the needs of vendors, residents, and shoppers. The paper shows how local residents and vendors creatively developed an open-ended, self-organized system to manage the complex tasks involved in operating the market and to adapt to uctuations in the number and characteristics of vendors and shoppers. Although the system is highly praised as an exective tool for informal economy survivability, its limited planning capacity requires cooperation with other parties to overcome unanticipated challenges. Cooperation among stakeholders has maximized the bene- fits and minimized the drawbacks of informal economic activities in a public space. [ABSTRACT FROM AUTHOR]

The implementation of Indonesia's national health insurance programme in 2014 highlights the "missing middle" problem in which non-poor workers in the informal sector remain uncovered from the health care due to self-enrolment. This study aims at examining why informal workers are reluctant to join the national health insurance even though the benefits of the programme are very generous. Observing 400 households working in the informal sector and applying the Triple Bounded Dichotomies Choice Contingent Valuation Method to observe the Willingness to Pay, this study found that 70 per cent of respondents were willing to pay a premium that is lower than the current rate. Yet, only 18.7 per cent of households had registered for national health insurance. Our econometric estimations provide evidence that the availability of hospitals, insurance literacy, experiences of being an inpatient or outpatient, the number of family members, the sex of the head of the household, access to the Internet, and household income are highly correlated to the likelihood of workers in the informal sector joining the national health insurance programme. In contrast to other studies, we found that the insurance premium was not the primary impediment. Rather, the two main obstacles were: availability of health services; and a lack of insurance literacy. Hence, this study calls for increased investment on healthcare facilitates as well as campaigns to educate the public about the importance of health insurance. [ABSTRACT FROM AUTHOR]

This study has been focusing on the vulnerability of street vendors in Java since the time when Java was hit severely by the economic crisis in 1997/1998, which also had reversed the trend of economic formalization in Indonesia. For this aim, a survey was conducted during the month of February 2007 in Yogyakarta and Sleman districts in Yogyakarta Special Province. The survey covered 122 street vendors in several streets in both areas. These samples consist of three groups of street vendors: food seller, non-food seller, and services providers. Based on this survey, vulnerability index of street vendors is measured. The study found that most of street vendors in Yogyakarta experience vulnerability at the medium level. In general, vulnerability of food seller vendors is higher than other vendors. Vulnerability also varies across the locations of vending. [ABSTRACT FROM AUTHOR]

Copyright of Anthropologica is the property of CASCA and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)