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Indonesia is one of the archipelago countries located in Asia and it has diverse cultures. In modern society, Indonesian traditional houses have become rare and need to be preserved. This research is conducted to build a digital collection and to develop an image-based automatic recognition system for Indonesian traditional houses. In this paper, the traditional house images are collected in several ways: on-site image captures, receiving images from volunteers, and collecting public images from Google. The dataset is limited to the collection of building shape images, excluding the interior design. The authors implement Convolutional Neural Networks (ConvNets) to build a model for an automatic recognition system. The experiments run some deep network models: VGG, DenseNet, Inception, Xception, MobileNetV2, NasNetMobile, and EfficientNet. The experiments involve 1526 images of 16 classes. EfficientNet-Lite0 outperforms other models and produces the average F1-score and accuracy of 90.1% and 91.8%, respectively. ConvNets also outperform conventional classifiers. [ABSTRACT FROM AUTHOR]

This study investigates the effect of the board of directors on financial performance, either directly or indirectly through the existence of risk management in Indonesia.This study presents empirical investigation of 31 nonfinancial Indonesia listed companies from 2010 to 2016. This study utilizes the Structural Equation Modeling (SEM) model. The results of the SEM model find that there is a significant positive effect of the existence of risk management and the tenure-Chief Executive Officer (CEO) on financial performance. However, CEO duality has a significant negative effect on financial performance. The results also find that the effect of CEO duality and board size are significant positive on financial performance through the existence of risk management. It is one of the first papers to investigate the effect of board of directors and financial performance, either directly or indirectly through the existence of risk management in Indonesia. [ABSTRACT FROM AUTHOR]

The current general wisdom regarding fiscal policy in response to fluctuations in economic cycles is to adopt countercyclical strategies: contractive during a boom to avoid overheating the economy and expansive during a recession to stimulate economic activity. This paper attempts to investigate the practical behavior of fiscal policy in Indonesia in response to economic cycles to establish whether it follows general fiscal wisdom (countercyclical) or amplifies the cycle (procyclical). An error correction model (ECM) and an alternative model to deal with the possible endogeneity problem are utilized. This paper shows that fiscal policy in Indonesia tends to be procyclical. Observations of some other ASEAN countries, namely Malaysia, the Philippines, Singapore and Thailand, indicate that Singapore could be the only country in ASEAN that is able to implement a countercyclical fiscal policy. [ABSTRACT FROM AUTHOR]

Energy insecurity has become an alarming issue among ASEAN countries. One proposal to overcome this energy insecurity is to integrate energy markets among ASEAN countries. In order to do this integration, a major energy policy reform, particularly the elimination of energy subsidy policies, is needed. The main goal of this paper, hence, is to analyze the impact of an energy subsidy reduction policy in ASEAN, particularly in terms of economic growth, environmental improvement and welfare distribution. To achieve this goal, this paper uses a multi-country computable general equilibrium (CGE) for Inter-Regional System Analysis for ASEAN (IRSA-ASEAN) to conduct the analysis. This paper finds that countries in which energy subsidies significantly exist, i.e., Indonesia and Malaysia, stand to gain much from eliminating these subsidies. Gross domestic product (GDP) is likely to increase, with the added benefit of reduced CO2 emissions. In terms of welfare distribution, this policy appears to be progressive in nature. [ABSTRACT FROM AUTHOR]

Sustainability is becoming an emerging issue since it attempts to fulfill current needs without sacrificing future generations. The role of the private sector is considered necessary in supporting sustainability, including the Sustainable Development Goals (SDGs). Implementation of a sustainable business model (SBM) has the potential to enable support for sustainability. Many business organizations have claimed to produce an SBM, but many have failed or are insufficient to provide sustainability benefits due to complexity. Therefore, available concepts regarding principles in SBM innovation need to be improved to have greater capacity in dealing with complexity. This paper explores principles for SBM innovation and the relationships between the elements based on empirical evidence through a longitudinal case study in a technology-based organization in Indonesia's agriculture sector. The results show that seven principles, so-called "ecosystem-centric principles," are a building block to successful SBM innovation. One principle determined the success of the other principles, and as a whole, work simultaneously and systemically in creating SBM innovation. The business model combines several basic SBMs and develops as an accelerator type of business model and, in a particular phase, combines the model with the crisispreneur. Compared to other SBM principles, the 'ecosystem-centric principles' is superior to dealing with a complex environment. [ABSTRACT FROM AUTHOR]

The environmental accounting information disclosure (EAID) is the first approach to offer critical information on an enterprise's safeguarding ecological activities. The data were used from Indonesian communities and linked socio-economic indicators and environmental information disclosure data at the city level. The objective of this research is to assess the impact of environmental disclosure on public environmental concerns. It is crucial to recognise that corporate initiatives aimed at reducing their environmental footprint yield significant and wide-ranging implications. Here, using three models Pol Lined and Heckman influenced, we analyse the effect of business size on Indonesia's environmental reporting (IER) disclosures and ratings in 2009–2018. The statistics show a positive relationship between government ownership and IER, with a more prominent link between federal government ownership and IER than local government ownership. This paper argues that to promote the cause of environmental accounting and thus contribute to the goal of capitalism with Indonesian characteristics, Indonesia should improve relevant regulations and standards for information disclosure in environmental accounting, as well as strengthen internal and external supervision of enterprises, creation of a low-carbon, environmentally friendly economy and a society characterised by its emphasis on reusing and recycling materials. [ABSTRACT FROM AUTHOR]

By applying the PLS-SEM method to survey the data of 350 samples in Indonesia, this paper develops a framework based on three potential elements: push effect (partnership and cooperation, rules and regulations, value practices), pull effect (government support, market sophistication, environmental awareness), and mooring effect (technological support and switching costs) about the transition of micro, small, and medium enterprises (MSMEs) towards green practices. The study reveals that these factors exhibit variations in terms of statistical significance. The findings indicate that an increase in the push effect and pull effect significantly influences the switching behaviour of MSME owners/managers. In contrast, concerning the mooring effect, each element demonstrates varying levels of direct influence on the transition towards green practices in MSMEs, with some impacts proving to be statistically significant and others not. Overall, these findings shed light on the intricate dynamics of MSMEs environmental responsibility, offering valuable insights for policymakers and practitioners. [ABSTRACT FROM AUTHOR]

This paper studies the political economy of the Southeast Asian haze and discusses the obstacles that, unless overcome, can prevent a permanent and effective solution to the transboundary pollution problem, which originates in Indonesia. Following a cost-benefit analysis of the problem, the paper takes note of the weaknesses in Indonesia's governance structure, which make it difficult to enforce national policies aimed at curbing the haze problem. The paper also puts forward a number of suggestions for strengthening the current policy regime for tackling the problem. [ABSTRACT FROM AUTHOR]

Indonesia has been actively seeking to improve its status and has gradually developed a trinity of national–regional–world status, consisting of independent status, regional leadership status and middle power status. In the context of China–US strategic competition, Indonesia is more sensitive to the consolidation and pursuit of its status. In response, Indonesia not only inherits the traditional diplomatic policy of "rowing between two rocks" and refuses to take sides between China and the US, but also tries to lead the ASEAN countries to develop a "third way" in the Indo-Pacific region. This paper analyzes Indonesia's perception of and response to China–US strategic competition from the perspective of status politics, arguing that status politics plays a key role as the underlying logic of Indonesia's "free and active" diplomacy — maintaining close relations with both China and the United States at the material level can enhance Indonesia's economic and military status, and maintaining autonomy at the social level can gain international recognition of its status. [ABSTRACT FROM AUTHOR]

This paper investigates the long-run and short-run impacts of government spending on inflation in three Asian emerging economies of India, China and Indonesia by applying the cointegration and Vector Error Correction Model to time series data from 1970 to 2010. The results confirm a cointegrating causal link between government spending and inflation in the long run in these countries, regardless of their institutional governance differences. In the short run, government spending (as a percentage of GDP) appears to have a negative impact on inflation in China, while a positive impact in Indonesia and India. The implication is that governments of emerging economies should be prudent with their decisions on government spending. [ABSTRACT FROM AUTHOR]

This paper examines the extent to which the Indonesia's currency crisis can be accounted for by macro and micro economic fundamentals by employing Markov-switching approach under cross-generation crisis models. In order to represent the speculative attack in the economy, the study utilized one of the measures that is most widely adopted to signal the breakup of a crisis, the Exchange Market Pressure Index (EMPI). This paper found the following. First, liquidity (DC), real exchange rate (RER2) and ratio of banking credit to GDP (BCred) were found to significantly influence the EMPI, indicating that the behavior of EMPI has the characteristic that is predicted by the first, second, and third generation of crisis model found to significantly influence the EMPI, indicating that the behavior of EMPI has the characteristic that is predicted by the first, second and third generation of crisis models. Second, the LR test showed that regime switching dynamic model is more robust than ordinary dynamic model in explaining the EMPI, suggesting that speculative attacks tend to have the characteristics of multiple equilibria. Third, the transition probability matrix results showed that the tranquility regime was more persistent than the volatile regime. [ABSTRACT FROM AUTHOR]

Participatory financing schemes, including Musharakah and Mudarabah, are theoretically claimed to be the ideal modes of Islamic financing, but their practice is restrained by several factors. That is why Islamic banks have a consistent tendency to avoid participatory financing on the assets side throughout the world. However, recently this trend has started changing in Pakistan and Indonesia where the share of participatory finance has raised significantly in the financing portfolio of Islamic banks. The present paper explores this recent spur of participatory finance in Pakistan in terms of its domains of applications and the responsible factors. The findings lead to a novel posteriori framework which shows that the shift toward participatory financing is primarily characterized by increase in working capital financing and commodity operations financing through Musharakah mode Islamic banks. Moreover, five factors contribute to the spur of participatory financing including: (i) introducing varieties in Musharakah, (ii) enhanced applicability, (iii) high volume projects, (iv) government interventions, and (v) regulator's role. The framework can significantly advance understanding with respect to the implementation theory of participation financing within Islamic banking and related Shariah compliance and regulation. [ABSTRACT FROM AUTHOR]

Previous studies have addressed the importance of business model innovation (BMI) for established firms. However, there are limited studies on BMI in digital startups. Due to their characteristics, established firms differ from startups; thus, the findings of the previous studies cannot be applied straightforwardly to such startups. Because each startup experiences different types of BMI, they presumably possess varying types of technological capability and adopt market orientation differently. The links among technological capability, market orientation, and BMI, nevertheless, are not clearly articulated in the literature. Therefore, it is necessary to conduct further investigations. Using four Indonesia's digital startups as cases, two research questions are posed: (1) What kinds of technological capability and market orientation are needed for digital startups to conduct their BMI? (2) How can a set of technological capability and market orientation lead to different BMIs experimented by digital startups? The findings reveal that a certain type of BMI demanded startups possess a certain type of technological capability and adopt a peculiar type of market orientation. These refer to ecosystem- and specialisation-focused technological capability, and market orientation toward specialisation and ecosystem. Based on these findings, practical implications are presented at the end of this paper. [ABSTRACT FROM AUTHOR]

This paper conducts a more in-depth study of employee performance to connect with compensation and job satisfaction and the work environment of employees in PT Bank Rakyat Indonesia (Persero) Tbk. (BRI). This research was conducted at PT Bank Rakyat Indonesia (Persero) Tbk. operating in Indonesia. The research population was all employees of the Branch Offices of PT Bank Rakyat Indonesia (Persero) Tbk. spread over in Sumatera, Jawa, Kalimantan, Sulawesi, Bali and Jayapura. The sample was collected using Proportional Random Sampling Stratified from six locations spread throughout Indonesia. Considering the wide area, the sampling technique is adjusted to the area, so sampling is based on the island as a sub-population. The sample of this study was 212 employees. This amount has met the minimum sampling requirements if using the Generalised Structural Component Analysis (GSCA) method. Compensation does not directly affect employee performance. Working environment directly influences the employee performance in PT Bank Rakyat Indonesia (Persero) Tbk. There is an influence of compensation and working environment on job satisfaction and employee performance in PT Bank Rakyat Indonesia (Persero) Tbk. The leader of PT Bank Rakyat Indonesia (Persero) Tbk. should improve employees' performance by taking into account the improvement of compensation which includes the suitability of wages and salaries, incentives, benefits and facilities with their performance. [ABSTRACT FROM AUTHOR]

The aim of this paper is to evaluate the effectiveness of environmental impact assessment (EIA) in Indonesia regarding the protection of the marine environment from industrial pollution and identify the important factors for improving the effectiveness of marine EIA. This has been achieved by reviewing secondary literature and providing a synthesis of the ideas used in existing studies of EIA. The paper demonstrates that there are significant issues in the field of EIA in Indonesia particularly in reviewing the failure in protecting the marine environment. A list of important factors for effective marine EIA is presented, allowing practitioners - government officers and stakeholders - to check whether their initiative will contribute to effective marine EIA. [ABSTRACT FROM AUTHOR]

This paper presents a study of developing a framework using Interpretive Structural Modeling (ISM) for the barriers to digital transformation in higher education in a particular context: Indonesia. This study has identified 55 contextual relationships between the 11 key barriers and has developed five levels of the structure hierarchy. This study also proposed a four-phase strategy that will guide us to improve the strategy of the implementation of digital transformation in higher education in Indonesia. This research gives contribution by providing a better understanding of barriers and the interrelationships among barriers in the implementation of the digital transformation in the higher education domain. [ABSTRACT FROM AUTHOR]

In recent years, China has been catching-up with other advanced economies and become one of the "leading geese" in the Asian economy. China not only plays a leading role in regional production network but also in various regional economic cooperation. Indonesia, being one of the following geese, needs to adjust its position to benefit from this change in global and regional order. While other more advanced economies have less to offer, Indonesia has gradually moved closer toward China in terms of economic cooperation. Using the flying geese model, this paper argues that China's BRI might change trade and investment trends in Indonesia. China BRI might complement the role of Japan as a catalyst for economic development in the Asian region in general and in Indonesia in particular. There is no official BRI project agreed by Indonesia so far. However, there are a number completed and ongoing China–Indonesia projects, which arguably might pave the way for future BRI investment. Currently, apart from the Jakarta–Bandung High speed railways, most of the projects are concentrated in resource-exploitation needed by China and the fulfilment of Indonesian development needs, such as power generation, mineral smelters and industrial parks. From the Beijing's perspective, these projects are perceived as part of BRI. Since these so-called BRI projects have not been completed, it is therefore impossible to assess their impacts on Indonesia's industrialization at this point. However, we can still argue that BRI might have initiated a new type of investment that might in turn change the industrial trends, structure and performance in Indonesia. If this change leads to improvement in products quality or value added, industrial upgrading, technological transfer and export boost, then one may argue that BRI has brought promised benefits to the host economy (i.e., Indonesia). Otherwise, the benefits would be negligible. [ABSTRACT FROM AUTHOR]

This paper investigates the effect of exchange rate volatility on bilateral trade between Taiwan and Indonesia via 19 export and import industries. Considering the existence of an asymmetric effect of exchange rate volatility on trade, we employ an asymmetric ARDL model and arrive at the following main results. First, the long-run asymmetric effect of exchange rate volatility shows far higher impacts on Taiwan's exports to Indonesia than on Taiwan's imports from Indonesia. Second, the short-run asymmetric effect of exchange rate volatility causes unstable changes on the trade amounts for most of Taiwan's export and import industries with Indonesia. [ABSTRACT FROM AUTHOR]

Purpose: The aim of this research paper is to examine the relationships between intangible assets, employee's performance, and job satisfaction (JS) with structural model. The research explores both the practical and theoretical basis of these paradigms on organisation performance. This research also aims to identify whether a relation can be established between these aspects in the context of non-profit organisation performance in Indonesia. Design/methodology/approach: Reviewing the literature explores a theoretical existence of related context preceding the organisational performance. The authors used structural equation modelling to check the research prototype with a sample of 121 respondents. The respondents were heads of departments and general employees. In addition, SPSS was used to measure demographic, non-response bias, and generate descriptive statistics. Findings: Overall, the results demonstrate that organisation with a higher level of intellectual capital (IC), employee performance (EP), and job performance (JP) are important predictors of organisational performance in this sample. Similarly, JS and IC predicted EP. It is acknowledged that emotional intelligence such as satisfaction and dissatisfaction are important incentives to necessitate action tendencies. Research limitations/implications: This research is focused on organisations. Further research may extend the focus to different types of organisations and countries. Practical implications: The findings of this study may help institutions and HR departments to initiate new strategies such as integrating the traditional company performance measurement systems based on various indicators of this study. These factors succeed in providing an effective representation of a set of intangible assets that are developed by the company and that contribute to the improvement of company's performance. Additionally, to maximise IC assets, the company can implement knowledge sharing practices among employees and experts as well. Original value/knowledge contribution: This research is useful for organisations and academics as a reference of the comparative and intersecting explanation of enhancing organisational performance. Moreover, various main concepts/theories are combined, namely, IC, JS, and employee's performance to solve the obstacles of organisation performance. [ABSTRACT FROM AUTHOR]

The Indonesian economy has grown significantly since 2000, but income inequality has increased since 2001. One of the possible government tools to improve income inequality is through taxation. This paper evaluates household income, income tax, taxes on production, and their impact on income distribution. The major data sources are the National Socioeconomic Survey and the Input-Output Table. The key finding is that income tax only slightly improves income distribution, but taxes on production worsen income distribution. The other important finding is that both forms of taxation are regressive, especially for lower and middle income household. The results suggest that Indonesian taxation worsens income inequality. [ABSTRACT FROM AUTHOR]

To increase the use of healthcare services in Indonesia, the government of Indonesia introduced Askeskin, a subsidized social health insurance for the poor, in 2005. We examine the effects of this social health insurance on women's healthcare use. Using propensity score matching, we find Askeskin induces women to use public healthcare facilities for birth delivery and antenatal checkup, discourages them from getting help from midwives for birth delivery, and makes them more likely to use contraceptives. The insurance seems to increase delivery care expenditure, however. We do not find evidence that it increases women's preventive and curative healthcare use. [ABSTRACT FROM AUTHOR]

Using the Indonesian Family Life Survey, this paper elucidates the factors related to happiness in Indonesia. Some factors yield results consistent with those in the literature, but other factors such as unemployment and the female gender turn out not to be robust. Some attempts are made to purge endogeneity for past income mobility, social trust, and political environment. Also, measures with a more immediate impact on happiness are exploited for social trust and political environment. The sign of the coefficient on past income mobility is reversed once the variable has been purged of endogeneity. In addition, social trust and political environment are found to have little relationship with happiness. [ABSTRACT FROM AUTHOR]

The efficient market hypothesis (EMH), which suggests that returns of a stock market are unpredictable from historical price changes, is satisfied when stock prices are characterized by a random walk (unit root) process. A finding of unit root implies that stock returns cannot be predicted. This paper investigates the stock prices behavior of five ASEAN (Association of Southeast Asian Nations) countries i.e., Indonesia, Malaysia, Philippines, Singapore and Thailand, for the period from 1990:1 to 2009:1 using a two-regime threshold autoregressive (TAR) approach which allows testing non-linearity and non-stationarity simultaneously. Among the main findings, our results indicate that stock prices of Malaysia and Thailand are a non-linear series and are characterized by a unit root process, consistent with the EMH. Furthermore, we find that stock prices of Indonesia, Philippines and Singapore follow a non-linear series, however, stock price indices are stationary processes that are inconsistent with the EMH. [ABSTRACT FROM AUTHOR]

This paper adopts the Johansen approach to cointegration to estimate a narrow money-demand function for Indonesia with annual data for the period 1970-2007. Empirical results suggest that there exists a cointegral relationship between real narrow balances, real permanent income and the deposit rate of interest. The recursive and rolling regression results suggest that the narrow money-demand function has remained largely stable irrespective of ongoing financial reforms in Indonesia since the late 1980s and/or financial crises in the late 1990s. The Quandt-Andrews breakpoint and the Hansen-Johansen stability tests results however suggest that the narrow money-demand relationship had a structural break in the early 1990s. This corresponds to a period of time when the banking and financial reforms in Indonesia took effect. The Chow breakpoint test results suggest that there was also a structural break in the money-demand relationship during the financial crises of the late 1990s. [ABSTRACT FROM AUTHOR]

It could be argued that for some developing countries, low to moderate inflation is beneficially related to economic growth and that it is only after a certain threshold level that inflation becomes deleterious to growth. This has implications for macroeconomic policy requirements placed on developing countries by international loan bodies. This paper, using data from Indonesia, examines the relationship between growth and inflation. Particularly, a threshold VAR model is used to test for changes in the relationship between inflation and growth. The results so far are exploratory and limited by a small data sample. The results are consistent with a threshold level between 8.5% and 11% producing structural shifts in the relationship between inflation and growth. [ABSTRACT FROM AUTHOR]

This paper evaluates the benefits of the health card subsidy, issued by the Indonesian government after the financial crisis in 1997, on elderly health care demand. The health card subsidy provides free access to health services, and was accepted at any available health center or puskesmas. Using the Indonesia Socioeconomic survey data (Susenas) for 2003, results show that health cards issued to the poor consistently increase the demand for health care facilities among the old population. Unfortunately, it is also found that the health card benefited wealthier individuals in their access to health centers or puskesmas. [ABSTRACT FROM AUTHOR]

Digital Transformation creates new potential for MSMEs in developing businesses, especially with Indonesia's business climate as ASEAN's largest digital economy country. However, the challenges of digital adoption, especially infrastructure and trends in public economics, need further study, for exploring deeper and more complex factors of small business sustainability from big technical dimensions of technology and business management. Empirical research was conducted to explore empirically the factors of implementing Industrial Advancement Technology 4.0 and Community Economic Trends from External Perspective of Indonesian MSMEs in building sustainable digital business performance. The questionnaires were distributed to 231 respondents who met requirements of Indonesian MSME owners obtained from online survey using purposive sampling technique. This study shows support for all hypotheses proposed as exploration of the supporting factors for sustainable digital business performance. Digital SME mindset needs to be developed by making small businesses on global scale. Integration Big Data and IoT in MSME business resolve all business problems and build innovative business culture, empowering MSME employees to use technology. The internal challenges of business units can be overcome by strategic efforts and utilizing external roles in building sustainable MSME digital business. Collaboration with Quintuple Helix actors can be an option to further build a sustainable digital business. [ABSTRACT FROM AUTHOR]

This paper applies a conditional jump model that was proposed by Chan and Maheu (2002) to examine the stock market dynamics of Mexico, Indonesia, South Korea, and Turkey (MIST). We find that the conditional jump intensity parameter estimates are statistically significant and change dramatically between two sample periods. We show that a high probability of jumps today predicts a high probability of jumps in the next period. The impact of a previous shock to the next period's jump intensity is found to be higher in Turkey compared to other MIST countries. Contrary to the previous literature, we discover that after a stock market crash, it is more likely to see a negative jump (drop) again in the stock exchanges of Mexico and Indonesia. Only in Turkey, it is more likely to see a positive jump after market crashes. [ABSTRACT FROM AUTHOR]

The article presents a study that highlights the characteristics of stockholdings of local and foreign investors based on the liquidity, price levels and sizes of business enterprises in Indonesia. It explores the persistent pattern of the characteristics of stock holdings as foreign investors dominate the ownership in the Indonesia Stock Exchange. It also concludes that domestic individual and foreign institutional investors reign against domestic institutional investors.

The development of female entrepreneurs in Indonesia is an integral part of Muslim women's economic contributions and empowerment. However, there is a lack of reliable research about female entrepreneurship and how gender may affect the experiences of business ownership in Indonesia. Therefore, the aim of this study is to explore the challenges encountered by these women entrepreneurs on a daily basis. Qualitative in-depth interviews were conducted with 30 female Indonesian entrepreneurs. Participants were recruited using theoretical and maximum variation sampling techniques. Content analysis was then used to analyze the data. Results revealed high levels of variations, both within and between women, suggesting that the quality of business entrepreneurship and success depended largely on the personal characteristics of these women, rather than on any system of formal education or training. This study also found that many women displayed resilient coping strategies when dealing with business failures. As a consequence, they were able to thrive despite restrictive social, cultural and political constraints. The paper highlights the importance of the experiences of female entrepreneurs in a developing country and the need to integrate the development of female entrepreneurship as a part of women empowerment effort. [ABSTRACT FROM AUTHOR]

Independent Component Analysis (ICA) is an emerging new technique in the blind identification of signals recorded in a variety of different fields. ICA tries to find the most statistically independent sources from an observable random vector, with the only restriction that all sources but at most one are non-Gaussian; no other a priori information on sources and mixing dynamic system are needed. The applications of these techniques to the analysis of volcanic time series are relatively few to date. In this paper we show that ICA is a suitable technique to separate a volcanic source component from ocean microseisms background noise in a seismic dataset recorded at the Mt. Merapi volcano, Indonesia. The encouraging results obtained with this methodology in the presented case study support their wider applicability in volcano seismology. [ABSTRACT FROM AUTHOR]

Indonesia, Southeast Asia's most populous state and its largest economy, was deeply affected by the economic crisis of 1997–1998. Its economic contraction in 1998, of over 13%, was the sharpest among all four crisis-affected East Asian economies. This followed three decades of virtually uninterrupted, rapid economic growth. The country's economic crisis was accompanied by regime collapse, resulting in the departure of then President Suharto after 32 years of authoritarian rule. This paper examines the country's socioeconomic development in the decade since the crisis, in the context of the earlier growth, and the very different institutions of economic governance operating under the new democratic regime of weakened central authority and many more economic policy actors. The main conclusions are that growth and macroeconomic stability have been restored surprisingly quickly, but that microeconomic policy and the investment climate are less predictable. [ABSTRACT FROM AUTHOR]

Telemedicine is an emerging industry with the potential to revolutionize the delivery of healthcare for the benefit of consumers, providers and payors. In general, telemedicine refers to the use of information and telecommunication technologies to distribute both information and expertise necessary for healthcare service provision, collaboration or delivery among geographically separated participants — physicians and patients. In short, it is a generic term which is used to define various aspects of healthcare at a distance. Telemedicine has been heralded as one of several possible solutions to some of the medical dilemmas that are faced by many developing countries. In this paper, we will discuss the current state of telemedicine in developing countries in South-East Asia (SEA) in general, with Malaysia and Indonesia in particular. [ABSTRACT FROM AUTHOR]

This paper evaluates the impact of China's WTO entry and the establishment of a free-trade agreement between China and ASEAN on the ASEAN-5 (Indonesia, Malaysia, Philippines, Singapore and Thailand). We examine the trade competition between the two regions using a market-share model and assess the impact of China's WTO entry on the ASEAN-5 with an exchange rate-tariff model, based on two-digit SITC data. It is found that for the period 1987 to 2000 the competition in trade only occurred between China and Singapore in manufacturing goods, while the competition between China and other four nations was in primary goods. The trade-widening opportunity between the two regions appears much larger than the competitive challenges for ASEAN-5 after the WTO entry of China and the establishment of FTA between ASEAN and China, impacts on different industries are evaluated. [ABSTRACT FROM AUTHOR]

Information and communication technology (ICT) adoption is nowadays regarded as an important program due to the fourth industrial revolution across the globe. In this study, we aimed to fill the literature gap by scrutinizing the role of social infrastructure in ICT adoption programs, which is still not much discussed. A perspective of regional innovation systems (RIS) was used because RIS key components resemble the concept of social infrastructure. We measured the implementation of the ICT adoption program in 19 cities in Indonesia by clustering them into two groups (strong and emerging innovators). To determine which social infrastructure indicators are most important in explaining the grouping, especially the strong one as the best practice, we additionally measured the F-test and t-test. The clustering results showed that cities in strong innovator clusters have homogeneously high performance in terms of the number of collaborations, local communities, and products that meet international standards. We suggest that such three indicators be taken into consideration in policymaking at the regional and national levels to improve the performance of the ICT adoption program. [ABSTRACT FROM AUTHOR]

This study investigates the patterns and trends in the returns to skill in the Indonesian labor market over the period 2007 to 2013, a period of rising earnings and income inequality. The study takes into account the labor demand and supply across regional development regions and over time. It presents evidence on the returns to skill related to structural changes in the economy through the growth of modern services and the resource boom. It confirms that skill premiums varied across regional development areas. The composition of industries across regions, female labor participation, the proportion of casual workers, the supply of tertiary-educated workers and factors unique to each region are all determinants of the regional skill premiums. The results support the policy focus on developing human capital in Indonesia to meet the rising demand for skilled workers and show the role of the manufacturing sector and minimum wages policy in reducing the skill premium. [ABSTRACT FROM AUTHOR]

Changes in the oil price directly affect production costs, and subsequently, the general price level of products. With Indonesia observing an inflation targeting policy, this study applies the nonlinear autoregressive distributed lag (NARDL) technique to investigate the effect of oil price fluctuations in Indonesia. The relationship is important for the central bank to gauge the effectiveness of the inflation targeting policy in immunizing the country from oil price fluctuations. Our findings have revealed that there was an asymmetric behavior between oil price and the inflation rate (producer price index), thus questioning the effectiveness of the inflation targeting policy. More specifically, in the long run, an increase in the oil price will tend to lead to an increase in the rate of inflation with a greater deviation, while an oil price reduction will lead to a decrease in the inflation rate with a lower deviation. This suggests that the benefits of an oil price reduction are not passed down to the consumer. [ABSTRACT FROM AUTHOR]

Twelve selected studies investigating effects of trade liberalisation in Indonesia resulting in 25 point estimates are included in the Meta Regression Analysis to assess the growth-enhancing effects of trade liberalisation and technological change. Given high variation across studies, this study finds no robust evidence of the positive impacts of a tariff cut on economic growth rates. However, it finds robust evidence of the growth-enhancing effects of technological change. This study also finds that studies which are published assuming increasing return to scale, focusing on non-agricultural sectors, using pre-1997 databases and with more disaggregated sectors tend to report higher growth effects of trade liberalisation. Compared to results reported by Indonesian researchers, non-Indonesian academic researchers report lower growth effects of trade liberalisation. Overall, this study suggests that providing assistance to developing countries to improve their productivity might be a better approach to multilateral negotiations than putting pressures on these countries to remove their trade barriers. [ABSTRACT FROM AUTHOR]

We present evidence against the well-established education–health gradient by relating education to measured hypertension status in 5,873 men and 6,152 women aged 40 + in Indonesia. Once a basic set of covariates was controlled for, the two variables were not statistically significantly related. We argue that this lack was due to neglect of chronic diseases. It appears that the assumption of full information in theories on the education–health gradient is too strong to be applied to the developing world. Therefore, more information needs to be provided to the public regarding the seriousness of chronic diseases and preventive and curative methods. [ABSTRACT FROM AUTHOR]

Informal employment is a critical source of income for both internal migrants and non-migrants. This study uses the Rural–Urban Migration in Indonesia (RUMiI) project data for 2008 and 2009 to investigate the role of informal employment in earnings among internal migrants and non-migrants in Indonesia while considering the broader nature of informal employment and remuneration. Results show that when using a detailed measure of informality, income consequences of more intensive informal employment are severe, which had not been recognised in the literature. Some of the largest earnings reductions resulting from moving to more informal employment were experienced by non-migrants. [ABSTRACT FROM AUTHOR]

The purpose of this study is to detect the currency crisis in Indonesia by exploring the vulnerability of macroeconomic variables. The Exchange Market Pressure Index was used to determine the crisis period by modeling the threshold value. Early indicators were determined using the signal analysis approach; therefore, the vulnerability level of each macroeconomic variable is known and used to determine the leading indicators. The result showed that the Signal Analysis and Herrera–Garcia approaches are the best detection models. Furthermore, it was concluded that the Signal Analysis approach was better in detecting crises compared to the Herrera–Garcia approach. [ABSTRACT FROM AUTHOR]

The Best-Worst Method (BWM) is a Multi-Criteria Decision Making (MCDM) method that has recently been introduced. The original BWM assumes that decision-makers are always certain about their judgments even if, in reality, decision-makers often express uncertain preferences. To deal with uncertainty, we introduce a belief structure in the BWM, a concept involving the preference degree adopted via Dempster-Shafer theory. A new approach is proposed to allow BWM to cope with this kind of information, where the level of belief in preferences being expressed is taken into account. In addition, an inconsistency measurement and an uncertainty measurement are proposed for the belief-based BWM, providing the foundation for a reliability degree of the decision-makers, after which the belief-based BWM is extended to include a group of decision-makers. Based on their reliability degrees and the weights of the criteria obtained from the various individuals, the overall criteria weights can be aggregated accordingly. Finally, a case study on the assessment of the infrastructure project criteria system in Indonesia is provided to demonstrate the applicability and feasibility of the proposed method. [ABSTRACT FROM AUTHOR]

Intermittently, Singapore suffers from severe air pollution in periods of intense forest and peatland fires on neighboring South-Asian islands. A recent American Economic Review article modeled the causal relationships between fire intensity in Indonesia and air pollution (PSI) in Singapore, and between PSI and health clinic visits in Singapore. We find serious flaws in the quantitative assessment of these relationships. Attempts are made to repair these using the same classic methodology and data, but also by alternative methods requiring less speculative assumptions. Although actually more detailed data are required, there are some results produced which seem more credible. [ABSTRACT FROM AUTHOR]

The research findings regarding the influence of entrepreneurial orientation and transformational leadership on organisational performance are inconsistent. This research aims to investigate the direct influence of entrepreneurial orientation and transformational leadership on organisational performance and their indirect influence with the mediation of innovation. The population of this research is 301 business units of Indonesia's State-Owned Electricity Company of Java and Bali distribution region, from which 168 were selected as the sample. The managerial or practical implications of this research are that it provides a better understanding, proposes suggestions to the organisation in maximising and optimising its intangible resources in relation with entrepreneurial orientation, and encourages activities related to its innovation in order to increase its organisational performance, especially in the specific nature of state-owned enterprise's context and business model. In addition, the organisation needs to encourage transformational leadership among its leaders to enhance activities related to innovation. [ABSTRACT FROM AUTHOR]

Digital disruption leads to high-level risk in innovation management that will impact established firms in disrupted industries. This study investigates the key variables to enhance innovation performance (IP) in a disruptive environment by applying strategic entrepreneurship framework from [Hitt, MA, DG Sirmon, RD Ireland and CA Trahms (2011). Strategic entrepreneurship: Creating value for individuals, organizations, and society. Academic of Management Executive, 25(5), 57–75]. This study sampled the managers of two largest established firms in telecommunication and banking industries in Indonesia. Both industries are in top five of the most disrupted industries. Entrepreneurial leadership (EL) is essential in formulating innovation strategy. This leadership variable has multicollinearity with that of entrepreneurial culture (EC). It indicates that both variables are symbiotic. While in implementing innovation strategy, the configuring core innovation capabilities that combine exploring the opportunity and exploiting the firm's advantage enhance the IP. Due to core rigidities, this configuring core innovation capabilities should not be orchestrated with collaborative innovation. [ABSTRACT FROM AUTHOR]

Announces the 'International Symposium on Modern Optics and Its Applications,' slated in February 2002 in Indonesia. Organizers; Invitation; Program committee; Features of the symposium; List of speakers; Contribution of abstracts; Registration fees and procedures.

We investigate the relationships among credit default swap (CDS), government bond yield, foreign investors' ownership, and exchange rate by conducting Vector Error Correction Model and Vector Auto Regression. We compare the relationships in the period of 2008 to 2013 and in the sub period when financial crisis happened in 2008. Using daily data from April 28, 2008 to December 31, 2013 in Indonesian government bond market, we find government bond yield plays a significant role; and drives the movement of the other variables. However, during the 2008 crisis, the yield loses its dominance and tends to follow the movement of CDS. [ABSTRACT FROM AUTHOR]

The gold futures in emerging markets have gained more importance in parallel to the increase in the size of gold trading in these markets. This research aims to detect the long-run price linkages and causality effects in these markets. China, Brazil, Russia, India, Korea, Taiwan, Turkey and Indonesia have been selected to represent emerging markets. US and Japan are also included as benchmark markets. The results denote the existence of long-term price dependencies and limited risk diversification benefits in the sample countries. The results further signify that China and Russia are the most isolated countries among the emerging markets sample. [ABSTRACT FROM AUTHOR]