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Series:

Advances in Economics, Business and Management Research

Proceedings of the 1st Economics and

Business International Conference 2017

(EBIC 2017)

Chair

Dr. Rina Bukit, SE, M.Si, Ak

USU, Medan Indonesia

Co-Chair

Dr. Elisabeth Siahaan, SE, M.Ec

USU, Medan Indonesia

Honorary Board

Prof. Dr. Runtung Sitepu, SH, M.Hum

USU, Medan Indonesia

Drs. Mahyuddin K.M. Nasution, M.I.T.Phd

USU, Medan Indonesia

Prof. Dr. Ramli, SE, MS

USU, Medan Indonesia

Prof. Dr. Prihatin Lumbanraja, SE, M.Si

USU, Medan Indonesia

Dr. Arlina Nurbaity Lubis, SE, MBA

USU, Medan Indonesia

Drs. Hasan Sakti Siregar, M.Si, Ak

USU, Medan Indonesia

Secretary

Yasmin Chairunnisa Muchtar, SP, MBA

USU, Medan Indonesia

Inneke Qamariah, SE, M.Si

USU, Medan Indonesia

Treasurer

Dra Nurzaimah, MM, Ak

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Technical Committee

Dr. Yeni Absah, SE, M.Si

USU, Medan Indonesia

Dr. Endang Sulistya Rini, SE, M.Si

USU, Medan Indonesia

Beby Kendida Hasibuan, SE, M.Si

USU, Medan Indonesia

Dr. Khaira Amalia Fahrudin, SE, MBA

USU, Medan Indonesia

Aisyah, SE, M.Si

USU, Medan Indonesia

Drs. Coki Ahmad Syahwier HSB, MP

USU, Medan Indonesia

Dra. Marhayanie, M.Si

USU, Medan Indonesia

Drs. Syahrul Rambe, MM, Ak

USU, Medan Indonesia

Yulinda, SE, M.Si

USU, Medan Indonesia

Inggrita Gusti Sari Nasution, SE, M.Si

USU, Medan Indonesia

Secretariat

Ishbir Mujahid Adha, SE, M.Si

USU, Medan Indonesia

Dani Ramadani

USU, Medan Indonesia

Editorial Board

Assoc. Prof. Dr. Zuraidah Mohd. Sanusi

UiTM Shah Alam, Malaysia

Prof. Dr. Ritha F. Dalimunthe, SE, M.Si

USU, Medan Indonesia

Prof. Dr. Wilson Cordova

Kai Sek College, Philippines

Prof. Dr. Azhar Maksum, SE, M.Ec, Ak, CA

USU, Medan Indonesia

Prof. Dr. Ade Fatma Lubis, MAFIS, MBA, Ak

USU, Medan Indonesia

Prof. Dr. Erlina M.Si, Ph.D, Ak

USU, Medan Indonesia

Dr. Iskandar Muda, SE, M.Si, Ak

USU, Medan Indonesia

Dr. Jantima Banjongprasert

Silpakorn University International College, Thailand

Wahyu Ario Pratomo, SE, M.Ec

USU, Medan Indonesia

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International University of Japan, Japan

Dr. Isfenti Sadalia, SE, ME

USU, Medan Indonesia

Dr. Murni Daulay, M.Si

USU, Medan Indonesia

Prof. Wen kai Li

International University of Japan, Japan

Erlinda Nusron Yunus, Ph.D

PPM School Of Management, Indonesia

Arta Moro Sundjaja, SE, S.Kom, MM

Bina Nusantara, Jakarta, Indonesia

Dr. Nurulnadwan Aziz

UiTM Terengganu, Malaysia

Prof. Dr. Paham Ginting, MP

USU, Medan Indonesia

Dr. Rosman Mahmud

UiTM Terengganu, Malaysia

Assoc Prof. Dr. Baharom Ab Rahman

UiTM Terengganu Malaysia

Elvia R Shauki, Ph.D

University of South Australia, Australia

Assoc Prof. Dr. Abdol Samad Nawi

UiTM Terenggannu, Malaysia

Dr. Dedhy Sulistiawan

Universitas Surabaya, Surabaya Indonesia

Prof. Dr. Armanu Thayib

Universitas Brawijaya, Malang Indonesia

Dr. Fathyah Hashim

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The Effect of Halal Destination Image and Visitors Satisfaction on

Tourist Loyalty (Object In Bukit Tinggi City Of West Sumatera)

Elfitra Desy Surya, Endang Sulistia Rini, Nasrudin Setiawan

This research aims to clarify: the influence image of halal destinations variable and to tourist satisfaction variable Against tourist loyaltyin Bukit Tinggi city. This research uses quantitative approach with explanatory research. This research uses three variables: tourist satisfaction, image of halal...

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A Review of Government Interventions Promoting Smallholder

Development in Indonesia

Zahari Zen, Tapi Rondang Nibulan

Oil palm against a background of widespread poverty in the outer islands, where a large, very poor rural population that was not technically conversant with high input agriculture lived side by side with a prosperous commercial estate plantation sector. While many smallholders in these regions cultivated...

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Analysis of Human Development Index: Concept and Factors that

Influence North Sumatera Province

Eko Wahyu Nugrahadi, Muammar Rinaldi

In 2010 the United Nations Development Program (UNDP) re-issued a new version by changing the methodology of calculating the Human Development Index (HDI) from Adult Literacy Rate (ALR) to Expected Year of Schooling (EYS). This improvement is expected to be able one of important indicators in the effort...

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Analysis The Determination of The Stability of Exchange Rates In

Indonesia

Ayu Putri Sumada Br.Ginting, Dede Ruslan, Mrs Fitrawaty

The exchange rate is the value of the currency of a country with the value of the currency of other countries, which used to make the international trade. This study aims to analyze the effect of BI Rate, money supply, inflation, foreign exchange tourism, exports and imports on the exchange rate in Indonesia....

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The Effect of Social and Legal Environments Toward Welfare

with Economic Expennditures as Intervening Variables

Agus Tripriyono, Sirojuzilam Mr, Mrs Erlina, Agus Purwoko

This study aims to examine the influence of the social environment and the legal environment on the welfare of society with economic expenditure as a mediator. The independent variables of this research are the social environment and the legal environment and its dependent variables are community welfare...

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Forensic Accounting on Corporate Governance Maturity

mediated by Internal Audit: A Conceptual Overview

Ali Rehman, Fathyah Hashim

Identification and development of forensic accounting as an organization's essential intangible asset has been traced as an immense vital essence that can influence corporate governance maturity. This paper attempts to integrate relevant empirical research and literature to extend the intended potentials...

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The Factors Which Influence Accounting Students

Understanding with Spiritual Intelligence as Moderating Variable

(An Empirical Study on the student of USU, UNIMED, and

UINSU)

Khanti Listya, Idhar Yahya, Erwin Abu Bakar

The objective of the research was to analyze the factors influencing accounting students to understand accounting with spiritual quotient as the moderating variable (an empirical study on Students of University of Sumatera Utara (USU), State University of Medan (UNIMED), and State Islamic University...

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The Factors of The Infuence on Audit Quality at The Inspectorate

General of Ministry of Environment and Foresty

Yasinta Pritama, Tavi Supriana, Zainul Bahri Torong

The objective of the research was to analyze an Influence of expertise, independency, due professional care, time pressure, budget pressure, audit planning, and audit supervision on audit quality at the Inspectorate General of Ministry of Environment and Forestry. The population of this research is government...

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Variaton of Industrial Type Contributions on Working

Performance

Ratna Balqis Nasution, Iskandar Muda, Mrs Erlina, Hasan Sakti Siregar, Setareh Katircioglu

The purpose of this research is to see the influence of variation and types of large and medium industries in North Sumatera on the Absorption of the Labor force in North Sumatera Province. The type of research is descriptive quantitative. The data used are secondary data sourced from Statistics Agency...

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Institutional Fishermen Economic Development Models and

Banking and Financing Institution Support in The Development

of The Innovation System

Iskandar Muda, Mr Rahmanta, Mrs Marhayanie, Adi Syah Putra

This study aims to analyze Institutional Model of Fishery and Marine Economy Development and Banking and Finance Institution Support in Development of Innovation System of Fishery and Marine Region in North Sumatera. This type of research is descriptive quantitative. The data used are primary data. The...

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A Study of Determinant Factors Towards the Quality Teaching

Among Teachers at Primary School in Bentong District

Ain Atiqah Syaqilah Fauzi, Nasiha Abdullah, Nik Noor Afizah Azlan, Ahmad Suffian Mohd Zahari

The quality of teaching among the teachers is important in order to improve the students' achievement as well as improving the quality of education to students. In order to do that, teachers need to look deeper into ways to transform old classrooms and teaching styles into 21st century teaching and learning...

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Determinants Of Customer Loyalty: A Preliminary Study On A

Prominent Bank In Malaysia

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The Effect of Interpersonal Relationships and Role Ambiguity on

Job Satisfaction and Its Impact Toward Employees' Intention to

Leave in Event Organizer Services Provider in Medan

Indayana Dalimunthe, Dr. Yeni Absah, Dr. Sitti Raha Agoes Salim

Event organizer has been growing fast in modern society as an answer for people's need to hold events for them without managing the event themselves. Event organizer enabled people to hold events without properly plan, organize, act, and control the events. As result, there is a high demand for event...

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The Effect of Service Quality on Satisfaction and Impact on

Loyalty User Transportation Service CV Sempati Star

Medan-Banda Aceh

Finta Aramita, Endang Sulistya Rini, Beby Karina Fawzeea Sembiring

The growing and increasing role of the service sector in the future is mainly driven by rapid advances in telecommunications and information technology. The challenge for the service management today is how to integrate all the elements that exist in the consumer service to fit the strategy of the company's...

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The Effect Of Education And Training (Total) On Education:

Performance Through Education Competency With Organization

Support As Variable Moderating On School Country Police (Spn)

Polda Sumut

Suhana Sinaga, Sitti Raha Agoes Salim, Yeni Absah

Education and training can not be separated to create an environment where educators can improve their skills, knowledge and attitudes to help the organization achieve its goals. In other words it helps educators to grow.The purpose of this study is to determine the effect of Educator Training on Educators'...

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Influence Of Servicescape, Customer Satisfaction, WOM, and

Social Media to Consumer Loyalty (study case bali beach)

Syafrizal Helmi Situmorang

Indonesia have blessed with many beautiful natural scenery. This beautiful gift of nature must be kept to the best possible so that it can be enjoyed by many peopleand become a source of local income. The purpose of this study was to determine the influence of Servicescape, Customer satisfaction, Word...

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The Influence Of Work Satisfaction And Work Stress On

Organizational Citizenship Behavior Through Organizational

Commitment As Intervening Variable At PT Asabri (Persero),

Sumatera Region

Reni Astrida, Sitti Raha Agoes Salim, Yeni Absah

PT ASABRI (Persero) is a social life insurance company which is required by law and gives financial protection for the Indonesian soldiers, Police officers, and employees who work for them. Today, the company is doing business and cultural transformation until 2021 in order to increase the welfare of...

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The Influence Of Social Media On Buying Decisions On Women

Small And Medium Enterprises (MSMEs) In North Sumatera

Fivi Rahmatus Sofiyah, Mrs Yulinda

The purpose of this research is to know the influence of social media usages such as Facebook, Instagram, WhatsApp, Line, and Twitter on buying decisions Women MSMEs in North Sumatra from 2015 until 2016. This research is descriptively quantitative method with the purposive sampling as many as 100 Women...

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The Influence of Firm Size, Export Ratio and Earning Variablity

On Firm Value with Economic Exposure as Intervening Variable

in The Manufacturing Industry Sector

Thomas Sumarsan Goh, Arthur Simanjuntak

This study was carried out to test the influence of firm size, export ratio, and earnings variability on the firm value with economic exposure as an intervening variable in the manufacturing industry sector listed in the Indonesia Stock Exchange. The population of this study were 138 manufacturing companies...

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Entrepreneurial Intellectual Capital [Human Capital, Social

Capital, Customer Capital, Technology Capital] on SME's

performance in Medan, Indonesia

Yasmin Chairunisa Muchtar, Inneke Qamariah, - Fadli

This study aims to investigate the effect of Entrepreneurial Intellectual Capital [Human Capital, Social Capital, Customer Capital, Technology Capital] on SME's performance in Medan, Indonesia. Sixty business owners from various sector are used as samples in this survey. Data analysis used in this study...

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Measuring Efficiency of Fuel Oil Usage in PT PLN: A Short-Run

Analysis

Tongam Sihol Nababan

This study aims to measure and to analyze the efficiency level of fuel oil usage in units of PT. PLN generation. The study result shows that until now the PLN is still operating in inefficiency condition, because of foil oil usage. The energy consumption level of fuel oil is less efficient compared with...

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The Impact Of Risk Management And Bank Size On Profitability

Of Commercial Banking In Indonesia

Nisrul Irawati, Azhar Maksum

The growth of credit in Indonesian Banking industry tends to be slower in period 2011 until 2016 whereas the credit growth only 7.87% compare to 10.4% in 2016. But based on the important role of the banking sector for economic development, the regulator should manage the risk of the credit in order to...

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The Role Of Sismiop (Information Management System Of Tax

Object) In Land And Building Tax Revenues (A Case Study At

The Regional Revenue Agency, Medan)

Farel Siregar

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The Analysis of Employee's Work Accident Trend for Policy

Making to BPJS Ketenagakerjaan Participant in Medan Belawan

Branch

Adriani Sinaga, Yeni Absah, Prihatin Lumbanraja

BPJS Ketenagakerjaan Branch Office Medan Belawan is a branch office that pays the highest occupational injury claim because it is in the area of Medan Industrial Estate. This study aims to analyze employee's work accident trend for policy making to BPJS Ketenagakerjaan participant in Medan Belawan branch....

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Utilization of The Sand from Mount Sinabung Eruption as

Material for Planting Media

Bode Haryanto, Eri B B Tarigan, Rina Br Bukit, Jonathan I Tarigan, Paham Ginting

The idea of this study was to descript the output and feasibility of sand utilization from mount Sinabung eruption activities. The sand used as materials to produce planting media for vegetables. The experiment started from collecting the sand with pretreatment then added by certain material such as:...

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The Impact of Supervision Characteristics of Board of

Commissioners on Tax Aggressiveness

Anastasia Niniek, Riko Riandoko, Muhammad Rheza Ramadhan

This study aims to find the effect of supervision characteristics of the board of commissioners on tax aggressiveness. Supervision characteristics of the board of commissioners are proxied by four proxies: risk management system and internal control, big-4 audit firm, external auditor independence, and...

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The Influence of Cost of Equity on Financial Distress and Firm

Value

Anna Sumaryati, Nila Tristiarini

Cost of equity is the cost incurred by the company to meet the rate of return expected by investors, either in the form of dividends or capital gains Since investors wanted a rate of return on the investment, then the company should compensate the shareholders with the economic return implicit in forecasting...

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Factors Affecting Capital Structure Of Go Public Manufacturing

Companies In BEI (Indonesia Stock Exchange)

Abdillah Arif Nasution, Ikhsan Siregar, Mutia Ismail

This study aims to determine and analyze the effect of company's size, business risk, asset growth, and profitability on capital structure in manufacturing companies listed on the stock exchange of Indonesia year 2014 - 2016, either partially or simultaneously. In addition, this study also reviewed variables...

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The Effect of The Existence of Large and Medium Industries on

The Absorption of Labor in Sumatera Utara

Iskandar Muda, Ratna Balqis Nasution, Mrs Erlina, Hasan Sakti Siregar, Setareh Katircioglu

The purpose of this study is to see the influence and existence of large and medium industries in North Sumatra to absorb the number of workers in North Sumatra Province. The type of research is descriptive quantitative. The data used are secondary data sourced from Statistics Agency of North Sumatera...

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The Triple Bottom Line (TBL) studies towards Sustainability

Marketing

Zalinawati Abdullah, Ahmad Ismail Mohd Anuar, Wan Maziah Wan Ab Razak, Nurul Aini Aziz, Haslenna Hamdan

The research was conducted to investigate the implementation of marketing sustainability among customer. Sustainability is a collective term for everything to do with responsibility for the world in which we live. The study focusing on the relationship between three elements of Triple Bottom Line (TBL)...

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Increasing Organization Performance Through Competitive

Advantage of Private University in Medan

Elizabeth Haloho, Lailan Tawila

There is increament number of students who finished Senior High School in Medan every year. With this reason, private universities are encourage to compete amongs them to atract new students to register. Therefore each of them must have a competitive advantage to become known by potential students and...

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Influence Service Quality, Product Quality, and Brand Image to

Customer Loyalty at Club Music Center Stage Novotel Lampung

Susi Indriyani

Competition in the entertainment at the music club needs to be faced with the right competitive strategy, the entertainment industry in Bandar Lampung is quite well developed, this is marked by the emergence of some family karaoke, and other entertainment. Hotel Novotel Lampung as one of the four-star...

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The Adversity Quotient (Control, Origin & Ownership, Reach,

and Endurance) and its Relationship Toward Entrepreneurial

Intention: A Study on Student in Faculty of Economics &

Business Universitas Sumatera Utara

Bongsu Hutagalung, Yasmin Chairunisa Muchtar, Muhammad Irsyad Tamimi, Ami Dilham, Arif Qaedi Hutagalung

This study aimed to analyze the effect of control, origin & ownership, reach, and endurance on the entrepreneurial intention. The population and sample in this study were students in The Faculty of Economics and Business University of North Sumatera batch 2013 and 2014 majoring in entrepreneurship up...

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Development Strategies for Woven SMEs in Medan

Inggrita Gusti Sari Nasution, Frida Ramadini

This research aims to implement development strategies for woven SMEs in Medan. Data used was primary data from depth interview with the woven SMEs in Medan. Sampling technique used was a non-probability sampling. SWOT analysis by comparing internal and external factors was used for data analysis. The...

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The Effect of Transformational Leadership on Team Satisfaction:

The Mediating Effect of Psychological Safety

Mr Winarto

Following hitherto published research on the positive outcomes of transformational leadership; I hypothesize that transformational leadership leads to higher team satisfaction. However, as suggested by Bass (1999), the mechanisms underlying the relationships between transformational leadership and the...

(10)

Significant Overview of Japan Tourism: Muslim Friendly

Destination and Social Media

Syarifah Hasanah, Aizul Nahar Harun

Muslim friendly destination has been emerging rapidly in majority Muslim countries, as well as in minority Muslim countries. Interestingly, many minority Muslim countries have found the Muslim friendly destination as lucrative, as result they pay more serious attention to it. Japan is one of examples...

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Financial Literacy Of Sme's In Medan City: A Descriptive

Analysis

Lisa Marlina, Nisrul Irawati

There are a huge number of workers in Indonesia's SME sector almost 98% but this SME's sector give an enormous amount of contribution to Gross Domestic Product. On the contrary, SME's sector still has a low level of productivity and business performance. In order to perform well in business, every business...

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Financial Literacy and Financial Behavior as a Measure of

Financial Satisfaction

Beby Kendida Hasibuan, Yeti Meliany Lubis, Walad Altsani HR

The economy of a good country can be seen from how many people are involved in entrepreneurship activities in order to meet their needs. This condition also happened in Indonesia, where currently many Indonesians are choosing this field. Unfortunately this activity is not done consistently and regularly,...

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Foundation Lecturer's Performance Antecedents (Empirical

Study on Private Universities in Medan)

Kuras Purba, Prihatin Lumbanraja, Elisabeth Siahaan, Parapat Gultom

This study aims to examine empirically the antecedents of foundation lecturer's performance. There are four variables measured which consists of foundation management, university governance, dean's leadership and lecturer's performance. Data analysis is based on 576 students of nine universities in Medan...

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The Analysis of Modern Retail Growth toward Traditional retail

store in Berastagi as a Tourist City

Wan Suryani, Febrilian Lestario

This research aims to reveal and overview the impact of modern retail business' growth toward the development of traditional retail store in Berastagi as a tourist city. The hypothesis of this research is The growth of modern retail business significantly impacts the growth of traditional retail store...

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The Influence of Intellectual Capital on Competitive Advantage

on Universities in Medan City

Isfenti Sadalia, Nisrul Irawati, Isdiana Syafitri

The purpose of this research is to analyze the influence of intellectual capital on competitive advantage. The samples of this research is 80 (eighty) lecturers in several universities in Sumatera Utara province, by applying simple random sampling. Data was analyzed by using multiple linier regression...

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T. Citra Nisa Farza, Mrs Fitrawaty, M. Yusuf Harahap

The achievement of a low inflation target is a big agenda that is currently being carried by Bank Indonesia. This target is certainly not apart from the Central Bank's monetary policy strategy that implements Inflation Targeting (IT). This research aims to analyze the effect of the money supply, BI Rate,...

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The Effect of Rice Subsidyon The Expenditure of Public Family

Consumption And Welfare of Poor Households

Renny Maisyarah, Mr Sofyardi

The aim of this study is to find out an influence of rice subsidy on the consumption expenditure of poor families in North Sumatera Province, so that there is an impact on the welfare of poor families in North Sumatra Province, and also the influence of rice subsidy on family welfare of poor families...

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Analysis Of Value Added From Results Of Catfish Fishing

Trawling Kite In The Village Of Bagan Percut District Percut Sei

Tuan Regency Deli Serdang

Mr Ramli

The phenomenon of economic inequality between coastal cities and villages is a key issue for economic development. Breakthrough development strategies need to be sought in order to overcome poverty and equitable development outcomes. Regional economic development, implemented by the government is limited...

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Effect of Earnings Management on Cost of Debt Before and After

International Standard Financial Reporting Implementation

Chandra Situmeang, Azhar Maksum, Mrs Erlina, Tavi Supriana

A business environment with high competition requires higher efficiency, not just operating efficiency but also the funding efficiency. One of the causes of funding inefficiency is the high cost of debt as a result of earnings management practices that can reduce investor confidence in the company's...

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Antecedent Capital Structure and Its Effect on Firm Value :Case

Study on Tourism Industry Sector Listed in Indonesia Stock

Exchange

Mr Ngatemin, Azhar Maksum, Mrs Erlina, Mr Sirojuzilam

Research on the capital market in the tourism industry in Indonesia is still very limited, besides the results of research related to it each has not found consistent results. This research aims to assess empirically the antecedents of capital structure and its effect on firm value. The population of...

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Effectiveness of Market Results Diversified Palm Products and

Constraints of Capital, Financing and Marketing

Marlon Sihombing, Iskandar Muda, Erni Jumilawati, Abikusno Dharsuky

The purpose of this research is to know the effectiveness and constraints of Capital, Financing and Marketing of Diversification of Palm Products resulting from the development of Regional Innovation System. The type of this research is explanatory survey and analyzed with quantitative descriptive. Respondents...

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Mrs Marhayanie, Mutia Ismail, Iskandar Muda

The purpose of this study is to know the level of community knowledge of the smartphone features with Learning and Asking its use to increase the turnover of car rental service sales in Medan. This research type is descriptive quantitative with student population of rental user in Medan City. The selected...

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Role and Contribution of Village Financial Management to

Realize Transparency And Accountable Village Budgeting

Revenue And Expenditure District of West Bangka

Mr Karmawan

This Empirical Research aims to look at the contribution and role of Management Village Finance by village apparatus, overall activities including planning, Implementation, administration, reporting and accountability of village finances and Funds Villages sourced from the State Revenue and Expenditure...

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The Influence of Individual Characteristics and Transformational

Leadership Style on Job Satisfaction and Employee Performance

at Bank Aceh Sharia

Marbawi Adamy, Prihatin Lumbanraja, Arlina Nurbaity Lubis, Elisabeth Siahaan

The purpose of this quantitative descriptive explanatory surve study was to analyze the influence individual characteristics, transformational leaders, and job satisfaction on performance of employees on PT. Bank Aceh Sharia Lhokseumawe. The research was conducted at the Bank Aceh Sharia employees located...

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The Role of Buying Motivation in Moderating Online Shopping

Behaviour

Junita Safitri, Endang Sulistya Rini, Paham Ginting, Arlina Nurbaity Lubis

Nowadays Online Shopping have been part of our life. It has been known since internet was introduced to Indonesia. Every day millions of people are going online, but just some of them going online for shopping. In fact, online shopping hasn't been the main option when customer still bought offline especially...

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The Analysis Of Factors Influencing The Contractor Bid / No Bid

Decision Making And The Success Of Tender Bids In

Procurement Of Services Construction At PT Inalum (Persero)

Syaifuddin A. Harahap

The reliable infrastructures support the success of the company operation dan such achievement would be gained if planning, monitoring and maintaining of the infrastrucutures executed correctly and timely. One method in getting the reliable infrastructures by means of outsource to another party (contractor)....

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The Effect Of The Non-Physical Work Environment And Job

Insecurity On The Performance Of Outsourcing Employee

Business Support Through The Motivation As Intervening

Variable at PT Telekomunikasi Selular Branch Medan

Nuri Aslami, Sitti Raha Agoes Salim, Yeni Absah

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Corporate Culture as an Effort of Company Transformation

Doli M. Ja'far Dalimunthe, Sabrina Cyndi Azhari Pasaribu

Applying corporate culture has become a demand that can not be negotiable by the company to still exist in the increasingly fierce competition today. Not only for big companies, corporate culture is now also considered very important to be applied by small companies though. Companies that are only profit-oriented...

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Factors Supporting Digital Marketing Of Competitive Rattan

Products In Medan City

Ritha F. Dalimunthe

Entrepreneurs have an important role in improving the small industry of an area like Medan municipality. It can be done through the increase of the added value of raw materials into semi-finished materials or finished goods in local area and can be marketed overseas so that it can open employment and...

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Entrepreneurship as Career Choice for University Students in

Medan

Yasmin Chairunisa Muchtar, Inneke Qamariah

One way to reduce unemployment is by creating jobs through entrepreneurship. Entrepreneurship can improve the economy of the surrounding community, which will broadly encourage the Indonesian economy. In this case, students, the most potential employer, after completing the education will face career...

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The Role of Product Innovation in Mediating Market Orientation

with Marketing Performance

Gusti Agung Ayu Widyaningsih, Ni Nyoman Kerti Yasa, I Gusti Ayu Ketut Giantari, I G A Dewi Adnyani

The aim of this research is to explain the product innovation role in mediating relationship between market orientations with marketing performance to restaurant industry in Denpasar City. This research was conducted by the owners or manager of restaurant in Denpasar City by using questionnaire that...

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Leadership Assessments in Business Organizations in Indonesia

Arief Fahmie, Laura Monica, Dwi Despiana, Elisa Kusrini

Leadership creates a social influence practice in which the leader encourages the voluntary involvement of subordinates to achieve organization goals. For instance, to manage supply chain, leadership contributes significantly in term of flexibility and innovation. In the era of VUCA (Volatility, Uncertainty,...

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The Reforestation through Oil Palm Plantation in Sumatra Island

Jan Horas Veryady Purba

The Sumatra Island is one of the important islands that has the largest contribution in the development of plantations in Indonesia. Some of the world's important commodities are produced on the Sumatra Island and deliver Indonesia into an important producing country in the world. The purpose of this...

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The Effect of The Political Environment and The Economic

Environment on The Welfare of Community

Agus Tripriyono, Iskandar Muda, Mrs Erlina

This study aims to examine the influence of the political environment and the economic environment on the welfare of society. The independent variable of this research is the political environment and the economic environment and its dependent variable is the welfare of society. This type of research...

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Financial Studies of The Development Project of Belawan Access

Channel at PT. Pelindo I (Persero)

Listiani Nurul Huda

Geographical condition of Indonesia that is dominated by sea led Indonesia to desperate need of the sea transportation management to meet its operational needs. PT. Pelindo I is a company that has the authority to manage the port in North Sumatra and its surrounding areas. Belawan's current access channel...

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Regional Development Based on System Integration Paddy Rice

Farming and Livestock Buffaloes in Humbang Hasundutan

Regency

Hotden L. Nainggolan, Marlon Sihombing, Tavi Supriana, Ma'ruf Tafsin

This study was conducted to assess the regional development based on system integration paddy rice farming and livestock buffaloes in Humbang Hasundutan. This study uses analysis of linear regression with SPSS. The results showed; a) system integration paddy rice farming and livestock buffaloes more...

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Various Aspects of The Implementation of SIMDA Which

Influence The Quality of Financial Statement with The Role of

PPK-SKPD as Moderating Variable (A Case Study at The SKPD

of Deli Serdang Regency)

Mrs Agustina, Tapi Anda Sari Lubis, Iskandar Muda

The objective of this study was to examine some factors which influence the financial statement quality of SKPD (Regional Work Unit) of the Deli Serdang District Government with the role of PPK-SKPD as moderating variable. The study used causal comparative method with primary data. The population was...

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The Effect of Intellectual Capital Measurement on Profitability

and Market Price

Dian Prawitasari, Ririh Dian Pratiwi, Nila Tristiarini

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This research is funded by Dana Non-PNBP Universitas Sumatera Utara

Creative Industries Readiness to Support

Tourism in Danau Toba

Departemen Manajemen, FakultasEkonomi dan Bisnis

Universitas Sumatera Utara

Arlinalubis10@gmail.com

Beby Kendida Hasibuan

Departemen Manajemen, Fakultas Ekonomi dan Bisnis

Universitas Sumatera utara

Bebykendida08@gmail.com

Abstract

Indonesia planned to create many of

featured tourism destination to promote Indonesia as

world’s famous tourism destination. In relation with the

given strategic plan, Danau Toba was chosen to be one of

many featured destination in North Sumatera. In order

to achieve the desired outcome, local government,

alongside with Danau Toba residences had to improve

their tourism selling points, especially creating the

tourism experiences. One of supporting factors in

tourism experience is the local product which usually

branded as souvenirs or many experience-related

services. Creative industries was created by combining

local value, such as religious, culture, music, and event in

form of goods or services. This study aimed to unravel

the hidden potential of creative industries to improve

tourism experiences. The data was collected through

survey and interview based on structured questionnaires.

The creative industries potency were mapped within this

study. According to this research, The existence of

creative industries can support the tourism experience.

Creative industries can offers a lot of new experience to

the tourist which bring out their best experiences. This

approach do not only promote a tourism destination, but

also promote many point of local culture to the world.

However, the current enterprises of Danau Toba was not

ready to develop creative industries further.

Keywords

Creative Industries, Visit Indonesia,

Tourism Experiecne

I. INTRODUCTION

Tourism has great potential to spur economic

development both for locals and government.

Indonesia‟s

tourism sector have been growing steadily since 2012 [1].

One of biggest spot for tourism development in North

Sumatera is Danau Toba, especially Samosir Island which

located on the mid of Toba Lake. Indonesia‟s government

focused on tourism through „visit Indonesia‟ program. The

recent development of airport is one of proof that

government want to develop Danau Toba as the core

attraction for tourism in North Sumatera.

Tourism involved on at least the socio-cultural aspect,

economy, and political aspect [2]. The development of

tourism destination also plays part as government tools to

improve local‟s income, cut the unemployment rate,

supporting the local development, and strengthening

diplomatic relationship with other countries [3]. It is

regulated under UU No 10/2009. Tourism has a long term

impact for economic development.

Danau Toba is chosen for North Sumatera‟s featured

tourism destination for reasons. The Toba Lake is, in fact,

the world‟s second largest lake, first in South East Asia. The

scenery had a lot of positive review and praise from many

tourist and

blogger

for both local and foreign tourist. It has a

lot of potential aspect to be polished over and brought out

the best of Danau Toba.

Tourism spot is not limited to scenery-like experience.

It can relate to the culture and many other attraction spot.

Bataknese‟s culture and involvement on the area are still

strong. Many tourist enjoyed their visit to experience

directly to the authentic Batak Culture in Samosir Island.

There are four major strategies that can be used to

develop competitive advantage in tourism development [4].

The first strategy is to build a landmark or flagship tourism

Copyright © 2018, the Authors. Published by Atlantis Press.

This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/). 508 Advances in Economics, Business and Management Research (AEBMR), volume 46

(23)

spot that is aimed to become the region‟s symbolic icon [5].

We can relate to International example such as France‟s

Eiffel Tower or America‟s „Liberty‟ Statue.

It is well-known

across the world. The second strategy is to prepare the

super-event that nowadays has been the common strategy to

attract tourist all over the world [6]. The next strategy is

called “thematisation” that build the tourism destination

under a specific aspect to distinguish themselves from other.

It mix the culture, sport, music,

or arts and build a „cultural

city‟. The last strategy is heritage mining. The heritage is

rejuvenated and rebuilt in a creative package to attract

people.

The existence of creative industry in tourism sector is

important. Dahms‟ study [7] showed how the „ghost town‟

or „dying village‟ maximized their creative industry to

regenerate themselves. Creative industry had become the

key to initiate tourism spot [8,9]. Most part of Samosir

Island is still under-developed which bring out its

attractiveness to tourist. The development of creative

industry over Danau Toba can be the key to promote Danau

Toba to the world. However, creative industry should be

built over by not only government, but also the locals‟

enterprises. Unfortunately, preparing the locals for creative

industry development need a lot of attention.This paper is

aimed to evaluate the current situation of Danau Toba‟s

creative industries as well their preparation to support

tourism.

II. LITERATURE REVIEW

A.

What is „Creative Industry‟?

Creativity already acts as important role in economy. It

can support economic growth and job creation. Linking the

creative industries with tourism will stimulate tourism

demand, bring out innovation in tourism experiences,

improve tourism local products, recreating atmosphere

and improve the destination's image.Creative industry is

the new type of industry that sourced from cultivating

people‟s creativity, talent, or skill to create a new products

and/or job opportunities [10]. Creative industry plays

important role in today global economy through its

contribution to create a conducive business climate,

expanding job opportunities, even positively increase the

country‟s gross national product as whole.

Creative industry in context of tourism can be viewed as

creative activities that link producers, consumers and

destination by

utilizing the available technology, people‟s

talent and/or skill to implant intangible cultural products and

experiences [11]. It is the industry that cultivate and

combine intangible cultural aspect to the tangible product.

The core sectors of the creative industries include:

advertising, animation, architecture, design, film, gaming,

gastronomy, music, performing arts, software and

interactive games and television and radio.

B. The Importance of Creative Industry in Tourism

Creative industry will stimulate tourism growth as it add

creative content in tourism experiences. It also will support

a new and innovative approach for tourism development and

creative marketing. Creative industry can help tourism

sector to be rebuilt by influencing its image as people

wishes. Advertising for example, it will help to embedthe

destination‟s image in people‟s mind.

According to OECD‟s

report, creative industry in tourism offered opportunities to:

Develop and distinguish one‟s tourism product and

experience.

Revitalize the current tourism product

Enhance tourism experience

Create atmosphere to „buzz‟ the place

Overcome the limitation of traditional tourism

In fact, creative industry also need tourism to support its

innovation and create its market. Both synergies one with

another. Creative industry is important to develop tourism

and tourism is needed to implement the creative industy.

C. Success Story of Creative industry in Tourism

Can-

Seng Ooi‟s work [1

2] showed the potential of

creative industry to boost tourism in Singapore. Despite of

have inadequate natural resources, not even fresh water for

its own, creative industry is able to boost tourism in

Singapore. Creative industry support the development of

Singapore not only for product, but also the infrastructure.

As result, many of tourism attracted to visit Singapore on

their vacation time. Even many of Indonesian tourism come

to visit Singapore on their holiday.

The successful story of creative industry in Singapore is

not come without resistance. It is common that creativity

and culture will always face any kind of resistance from

management [13]. It requires cooperation from many

stakeholders, especially on building infrastructures [14].

Creativity required to think out of the box which mean

outside the routine. It is hard to apply something now

outside of one‟s safe zone.

Another successful story that kind of interesting is

Disney Land. Through creative industry, Disney nowadays

capable to materialize its Disney character and culture to the

real world. As result, many of Disney fan around the world

visit Disney Land every day. It has become a fine tourism

destination spot.

D. Danau Toba as main Tourism Spot in North Sumatera

Danau Toba is selected as main tourism spot in North

Sumatera. It is located in Prapat and currently building its

own airport to support tourism. The main attraction point of

tourism in Danau Toba is the Toba Lake and Samosir Island

which located on the middle of Toba Lake. The fresh

scenery can mesmerize any tourist, even local people can be

mesmerized every day.

Gambar

Figure 1. Enterprises Line of Business in Danau Toba
Figure 3. Enterprises Based on Operating Experience
Figure 7. Enterprisers‟ Opinion on Market Competition
Table 1 Demand-driven Product Development Activity

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