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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]