• The Journal of Asian Finance, Economics and Business
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• 제4권2호
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• pp.5-17
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• 2017

The main objective of the study is to measure the vulnerability of Indonesia's financial system stability in response to external shocks, including from regional economies namely three biggest Indonesia major trading partners (China, the U.S and Japan) and other external factors (oil price and the federal funds rate). Using Autoregressive Distributed Lag (ARDL) model and Orthogonalized Impulse Response Function (OIRF) with quarterly data over the period Q4 2002 - Q1 2016, results confirm that, 1) oil price response has the largest effect to Indonesia financial stability system and the effect period is the longest compared to others, represented by NPL and IHSG; 2) among those three economies, only China's economic growth has significantly positive effect to Indonesia financial stability system. Based on the findings it is better for the authorities to: 1) Diversify international trade commodities by decreasing share of oil, gas, and mining export and boosting other potential sectors such as manufacture, and fisheries; 2) Ensure the survival of Indonesia large coal exporter companies without neglecting burden of national budget; and 3) Create buffer for demand shock from specific countries by diversifying and increasing share of trading from other countries particularly from ASEAN member states.

• The Journal of Asian Finance, Economics and Business
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• 제5권3호
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• pp.31-41
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• 2018

The study examines economic and environmental impacts of mass tourism on regional tourism destinations, particularly the establishment of "Ten New Bali", in Indonesia. The sample is restricted to the period of time in which annual data is available and comparable among variables from 1980 to 2015 (36 observations). All of the time series data was collected and retrieved from the World Development Indicator database published by the World Bank. This study applies cointegrating regression analysis using the fully modified OLS, canonical cointegrating regression, and dynamic OLS. The results of the study suggest that 1) there is a long-run equilibrium relationship between tourism receipts, environmental degradation and economic growth in Indonesia, 2) tourism growth and agriculture land growth are positively related to an increase of total output in the short-run in Indonesia, and 3) arable land is significant at the 0.01 level, but forest rents and CO2 from transport are not significant in the short-run in Indonesia. The results confirm that arable land is negatively related to an increase of total output in Indonesia. That is, when tourism growth in the economy is getting realized it shows that the environmental degradation increases greatly in inverse in the model, eventually negative impacts to the environment.

• Asian Journal of Business Environment
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• 제10권1호
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• pp.29-36
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• 2020

Purpose: This study aims to analyze the effect of macroeconomic and non-macroeconomic determinants of capital flight. Research design, data and methodology: With five determinants, this survey was conducted by Eviews 10, and the ordinary least squares (OLS) as a statistical method was applied for examining the research hypothesis. The five determinants are a budget deficit, economic growth, inflation rate, the exchange rate, and sovereign rating. The capital flight measurement uses the World Bank residual approach. The data derive from the Central Bank of Indonesia, BPS-Statistics Indonesia, OECD, and Moody's Investor Service. Results: The result considers that economic growth, the exchange rate, and the sovereign rating will decrease capital flight. In addition, the budget deficit and the inflation rate will increase capital flight. The sovereign rating decreases capital flight bigger than the other determinants. In addition, the exchange rate is statistically significant. Conclusions: The most influential problem of capital flight in Indonesia is because of non-macroeconomics factor political issue, corruption, bad regulation, and others. That's why the investment climate in Indonesia is still not secure. We propose that the regime would have to amend the business rule for reducing capital, raising the investment climate, and demonstrating the creative industry.

• 유통과학연구
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• 제17권9호
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• pp.93-102
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• 2019

Purpose - Capturing the shifting consumer behavior perspective on online transportation network performance in Indonesia, this study aims to empirically examine the impact of electronic customer relationship management (e-CRM) and e-service quality on customer e-satisfaction and e-loyalty. Research design, data, and methodology - A quantitative approach was applied, and then we determined the respondents who met the predetermined criterion by using purposive sampling method. In total, 167 online transportation customer in Indonesia participated in this electronic questionnaire survey. To tested the collected data, Partial Least Square (PLS) - (SEM) analytical tools were employed. Results and Findings - There are five hypotheses proposed in this study and state that only one hypothesis is rejected, The dominant relationship between variables in the hypothesis is shown in the variable relationship of e-service quality on e-satisfaction. CRM, Service Quality, Satisfaction and Loyalty implemented comprehensively in cyberspace provides a clear picture for academics but also for practitioners who are struggling in the service industry that specifically appoints online transportation business. The findings of this research provide both managerial and theoretical implications to maintain customer e-loyalty in online transportation network business environment in Indonesia.

• The Journal of Asian Finance, Economics and Business
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• 제7권11호
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• pp.629-636
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• 2020

This study aims to identify and analyze the factors that affect foreign exchange reserves in Indonesia. We consider the variables of external debt, exchange rate, inflation, and exports as explanatory factors referring to previous studies. We apply the Autoregressive Distributed Lag approach to time-series data retrieved from the Central Bank of Indonesia (BI), the Central Bureau of Statistics (BPS), and International Monetary Funds (IMF) from January 2016 to December 2018. Our results show that foreign debt, exchange rates, inflation, and exports significantly affect the simultaneous fluctuation of foreign exchange reserves in Indonesia. Partially, foreign debt has a significant and positive effect on foreign exchange reserves. The exchange rate has a significant and negative effect on foreign exchange reserves in Indonesia. However, our findings explain that inflation does not significantly affect foreign exchange reserves in Indonesia, and exports have a significant and positive effect on foreign exchange reserves. This study is expected to be useful to policymakers in managing foreign exchange reserves, so the economy of Indonesia can grow sustainably. One of the exciting things in this study lies in the model that uses the Autoregressive Distributed Log, which can explain long-term relationships through adjusted coefficient and cointegration tests.

• The Journal of Asian Finance, Economics and Business
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• 제8권11호
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• pp.97-106
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• 2021

The condition of financial services in Indonesia is unique, based on various characteristics, behaviors, and preferences. Therefore, the study of finance and banking is interesting to study as a recommendation for government policies. This paper aims to analyze the barriers to accessing formal financial services in Indonesia and why informal financial services are preferred. This paper presents a case study of financial inclusion in selected provinces in Indonesia using the SOFIA dataset from the Ministry of National Development Planning. Overall, this data consists of 20,000 individuals from 4 provinces and 93 regions representing the population in eastern Indonesia. The analysis was carried out by processing individual-level cross-sectional data surveyed in 2017 using the probit binary logistic method. The results identify the individual barriers in accessing formal financial services, including account ownership, saving, and credit activities in the formal financial institutions, and amplify the image by analyzing what determinants affect people to choose informal institutions. We found that some individual characteristics such as age, gender, education, income, employment status, residence, and access to technology significantly affect the barrier to formal financial services in East Indonesia.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.649-656
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• 2021

This paper aims to examine the moderating role of bank competition on the effect of liquidity creation on bank capital. We measure bank competition using the Lerner index approach, liquidity creation using the Catfat approach, and bank capital using the capital to total asset ratio approach. This test also considers control variables from bank-specific factors such as Return on Assets, Loan to Deposit Ratio, and Non-Performance Loans as well as macroeconomic factors such as Gross Domestic Product, inflation, and Bank Indonesia interest rates. The sampling technique used was purposive sampling. The data sample obtained was 96 banks from a population of 114 banks in Indonesia which consistently operated during the period 2008-2018. Hypothesis testing uses panel data regression analysis techniques through the first model of the Hayes method. The results show that the negative effect of liquidity creation on bank capital depends on competition. We found that bank competition at any level (low, medium, high) negatively moderates (weakens) the effect of liquidity creation on bank capital in all banks. This finding is consistent with the view that banks may strengthen their capital in response to bank competition which may decrease the level of bank liquidity creation.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.1019-1029
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• 2021

The study aims to investigate the impact of psychological climate, self-resilience, Organizational Citizenship Behaviour (OCB) and job stress on employee performance during Covid-19 pandemic. This paper also attempts to find out the mediating role of OCB and job stress in this context. A confirmatory survey was conducted on 316 employees of several institutions in Indonesia who worked from home during Covid-19 for a minimum period of 2 months. The research revealed that 1) PC has significant and positive influence on OCB and performance; 2) Self resilience have positive and significant influence on performance; 3) PC and self-resilience have a negative influence on job stress; 4) there are insignificant relationship between self-resilience on OCB; OCB and job stress on performance; 5) PC and self-resilience have no indirect influence on performance through OCB and job stress. The findings of this study reveal that organizations expected to have strategic approach in order to handle Covid-19 pandemic in different work patterns that are required to carry out routine office tasks from home, including handling stress as a fast adaptation for both employees and organizations that have a routine task from home.

• The Journal of Asian Finance, Economics and Business
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• 제8권3호
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• pp.1193-1204
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• 2021

This paper aims to examine the main factors that influence the adoption of Islamic banking services in Indonesia. This research collects primary data by distributing questionnaires to 550 respondents in 29 provinces in Indonesia. A total of 550 questionnaires were returned comprising 34.2 percent male respondents and 65.8 percent female respondents. Most of the respondents were in the age group of 21-30 years with the highest level of education being high school. Most of the respondents were working in private firms, with a monthly expenditure of IDR 2,500,000. The independent variables in this study are bank reputation, perceived complexity, perceived compatibility, perceived risk, relative advantage, religiosity, and social influence. Meanwhile, the dependent variable is customer interest in adopting Islamic banking services. The result of this study indicates that awareness and perceived compatibility have a positive effect on customer intention to adopt Islamic banking services. Likewise, religiosity and social influence also have a significant and positive effect on customer intention to adopt Islamic banking services. Meanwhile, bank reputation and perceived complexity have no effect on customer intention to adopt Islamic banking services. Lastly, perceived risk has a negative and significant effect on customer intention of adopting Islamic banking services in Indonesia.

• The Journal of Asian Finance, Economics and Business
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• 제8권7호
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• pp.333-339
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• 2021

The study seeks to identify the determinants of the adoption of e-commerce by small and medium-sized enterprises (SMEs) in developing countries, in our case, in Indonesia. The aim of this study is to examine the factors influencing e-commerce adoption. This study uses the method of quantitative data collection based on a questionnaire survey of SMEs in Indonesia. The research relies on Regional Project stipulations regarding Business Development in Indonesia, to capture businesses with a range of 5 to 100 employees that are classified as SMEs. This study randomly chose 100 SMEs in Indonesia from the IndoNetwork database. Partial least square (PLS) structural model data processing was used for path coefficients analysis. Structural equation modeling is applied in this study to analyze the determinant factors on the e-commerce adoption. The study findings reveal that four factors, namely, perceived benefits, compatibility, technology readiness, and government support, significantly influence the adoption of e-commerce, whereas customer/supplier pressure does not have influence. So, this study concludes that perceived benefits, compatibility, technology readiness, and government support had a significant and positive relationship with e-commerce adoption. Meanwhile, customer/supplier pressure had no effect on the e-commerce adoption of by Indonesia SMEs.