AICEDC Page 49 Paper No. ICOSEC-3-062534
Sustainability in the Mining Town:
Does the Ghost Town is Real?
AICEDC Page 50 Paper No. ICOSEC-3-062642
The Effect of the Entrepreneurial Competence Towards Small Business Performance: Case Study of Small Business of the
Crafts Products in Tasikmalaya West Java
Harun Heri Trismiyanto1, Djoko Pitoyo2, Tuti Sulastri3
1Doctoral Student of Management Sciences Program, Faculty of Economics and Business, Padjadjaran University, Bandung, Indonesia
2Sangga Buana University Bandung, Bandung, Indonesia [email protected]
3Politeknik Komputer Niaga LPKIA Bandung, Bandung, Indonesia Abstract
This study aims to determine the effect on the small business performance of entrepreneurial competencies is a case study of small business operators of craft products in Tasikmalaya, West Java. The number of respondents sampled are 50 employers. Determination of the sample is using simple random technique. Data were analyzed using correlation analysis method and terminated. Data processing using SPSS 16:00. The results showed there is a strong positive relationship between competence and significant entrepreneurial small business performance. This study is expected to determine the appropriate strategy for local government in an effort to improve the performance of small businesses in the craft products in Tasikmalaya, West Java.
Keywords: Entrepreneur Competence, Small Business Performance
AICEDC Page 51 Paper No. ICOSEC-3-070651
Inflation and Economic Growth in Indonesian During 1970 - 2013
Sugeng Setyadi1 and Tetuko Rawidyo Putro2
1Sultan Ageng Tirtayasa University, Serang, Indonesia [email protected]
2Universitas Sebelas Maret, Surakarta, Indonesia [email protected]
Abstract
A sustained high growth rate of output and low inflation are the two main goals of the majority of macroeconomic policies. Price stability is a key factor in determining the growth rate of an economy; hence, the central banks of many countries implement monetary policy to maintain inflation at a desirable rate. Very high inflation affects the economy drastically, but there is some evidence that moderate inflation also slows down growth (Temple, 2000 cited from Little et al., 1993). In addition, Aiyagari (1990), as well as Cooley and Hansen, 1991, suggest that the cost of lowering inflation toward zero is higher than the benefit. The question relating to the effects of inflation on economic growth is a subject of intense interest and debate in the literature (see e.g. Gillman and Kejak, 2005). The results of existing research have been mixed and studies can be categorized as making one of some possible predictions. The first of these is that inflation has no effect on economic growth (e.g., Cameron, Hum, & Simpson, 1996; Dorrance, 1963; Sidrauski, 1967). The second is that there is a positive relationship between inflation and economic growth (e.g., Mallik and Chowdhury, 2001; Shi, 1999; Tobin, 1965). The third is that inflation has a negative effect on growth (e.g., Andres and Hemando, 1997; Barro, 1996; De Gregorio, 1992; Friedman, 1956;
Gylfason, 1991, 1998; Saeed, 2007; Stockman, 1981). The methodology used in this research is using granger causality test by inserting variable changes in the economic structure that is the economic crisis in 1997. Research suggests that there is no relationship of mutual influence between the rate of inflation on economic growth in Indonesia and as well as variable economic crisis does not have a direct impact on both variables. This shows that in Indonesia occurred classical dychotomy.
Keywords: Inflation, growth, Indonesian, Granger causality
AICEDC Page 52 Paper No. ICOSEC-3-070853
The Relationship Between the Socio-Economic Profile and Perception of Smallholders Towards Empowerment Program
in Tanjung Jabung Barat, Jambi, Indonesia
Novyandra Ilham Bahtera1 and Fatimah Mohamed Arshad2
12Institute of Agriculture and Food Policy Studies, Universiti Putra Malaysia, Putra Infoport, Selangor, Malaysia
[email protected], [email protected]
Abstract
Empowerment is one of the means of improving farmers’ bargaining position and hence their skills to improve their well-being. The study examines the association between socio- economic profile of the farmers and their perception towards empowerment program provided by one of the local NGOs named Yayasan Setara Jambi. Indeed, this study used the relationship of respondents’ background such as age, education, monthly income, year experience on oil palm plantation, and farming size on their perception towards empowerment program. Structured questionnaire and face-to-face data collection methods were employed to obtain the primary data from 194 oil palm smallholders in Tanjung Jabung Barat, Jambi Province, Indonesia. The result of study showed that among the socio-economic variables, only monthly income and farming size had the significant relationship on perception of farmers towards empowerment program. In order to be empowered, farmers should have higher productivity from day to day which later on it can affect their monthly income from the selling of fresh fruit bunches. These results are useful input to the government as well as institutions that are responsible in providing empowerment program to the smallholders.
Keywords: Empowerment, perception, farmers, and NGO.
AICEDC Page 53 Paper No. ICOSEC-3-070854
The Poverty Alleviation for Sustainable Economic Development in Nigeria: Issues and Challenges
Rayyanu Abdulkarim Kaita1
1Faculty of Administration and Management Studies, Hassan Usman Katsina Polytechnic Katsina State, Nigeria
Abstract
Nigeria being the most populace black nation on earth is marred with issues of poverty problems, ranging from political, Economical, social, and moral vices. It is the purpose of the paper to address this burning issues of poverty that affect the general economic wellbeing of Nigeria and indeed of most developing economies. Poverty alleviation is a very sensitive national issue. So sensitive that those social, economic, political and moral vices that ruined election in developing nations originate from it and those problems could only be eradicated when poverty is cured. Poverty ridden nations more often do not withstand the challenge of false implementation of survival skills(s). Eradication of poverty must be seen as a means of sustaining enduring democracy and good governance as poverty must be seen as a means of sustaining enduring democracy as poverty is the major bane to developing nations, inability to forestall democracy and good governance. This paper discusses issues of why democracies and good governance had failed in poverty ridden nations, sees poverty alleviation as a challenge to constituted authorities and suggest strategies to be adopted to achieve poverty alleviation in a democratic Nigerian society and the developing world. Therefore Nigeria needs to develop sustainable long term plans that will reduce the impact of poverty. The researcher adopted discursive approach in order to explain the write up of the paper.
Keywords: poverty, sustainability, democracy and good-governance.
AICEDC Page 54 Paper No. ICOSEC-3-071161
Model Mapping the Potential to Independence Fiscal in East Java
Niniek Imaningsih1 and Ning Siti Farida2
12Faculty of Economics and Business, UPN Veteran Jawa Timur, Indonesia Abstract
With the advent of Law No. 1999, which regulates 22 perlimpahan authority and responsibility from central government to local government and UUNo.25 1999 that regulates the financial pierimbangan between the center and regions, especially in the District cities in East Java with menggembangkan local resources and reduce the dependence of the center.
This study aims to determine the independence of Regency City in East Java in the field of local finance analysis used is qualitative analysis, which explains its analysis in the description or in the form of sentences and quantitative analysis, namely analysis using formulas and analyzes for sure. Quantitative analysis includes the analysis of the degree of fiscal decentralization untu determine the level of independence of regional and sectoral economic potential in regencies cities in East Java in order to determine the level of fiscal independence and economic potential of the region. Results are expected to be used mengethui pattern of relationship between the central government and the government at the districtcity in East Java as well as the formula right policy for the future economic development. From this research area adjacent to Surabaya As Sioiarjo District Lamongan Gresik regency and municipality Kediri is an area with a large PAD so that it can be said that the area with the industrial sector was the region with fiscal autonomy
Keywords: PAD, Region Income Original
AICEDC Page 55 Paper No. ICOSEC-3-071462
The Effects of BI Rate, Inflation, and Exchange Rate to Government Bond Price 2011.01 – 2014.12:
Error Correction Model Approach
Miranti Rizki Amalia1 and Siti Aisyah Tri Rahayu2
12Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia [email protected], [email protected]
Abstract
This study aims to analyze the effect of BI Rate, inflation, and exchange rate RupiahDollar to the government bond price type FR0054. This research using time series data, these data are monthly from January 2011 to December 2014. This research using Error Correction Model Engle-Granger (ECM-EG) method. The results show that in the short-term and long-term BI rate has negative and significant effect to government bond price. Inflation has no significant effect to government bond price in the short-term, but has a significant negative effect to government bond price in the long-term. There is no significant relationship between exchange rate and government bond price in the short-term. In the long-term exchange rate has positive and significant effect to government bond price. The implication of this research is government together with Bank Indonesia is expected to always keep the stability of interest rates and comodity prices inside the country because those things can affect people in investing, including investments of government bonds. Government bonds could be an option as a fixed-income investments, especially government bonds denominated in Rupiah.
Keywords: Government Bond Price, BI Rate, Inflation, Exchange Rate, ECM-EG.
AICEDC Page 56 Paper No. ICOSEC-3-072864
Gold Standard: The History and Impact on Economy (Historical Study Implementation Gold Standard Other than the Monetary Standards and Implementation Challenges and
Opportunities in the Global Economy)
Ajeng Faizah Nima Ilma1, Vita Kartika Sari2, Bhimo Rizky Samudro3, and Siti Aisyah Tri Rahayu4
1234Economic Faculty, Universitas Sebelas Maret, Surakarta, Indonesia [email protected]
Abstract
This study aims to prove the historical use of the currency to the gold standard for later compare with a floating exchange rate monetary standard, to explain clearly the advantages and disadvantages of the use of the gold standard and to know the opportunities and challenges of the implementation of the gold standard in the economy. This research is qualitative descriptive analysis. Researchers seek to express criticism of the system of floating exchange rates compared to the gold standard system more stable. Floating exchange rate or floating exchange rates always have inflation, the real sector will always lag behind the monetary sector. The existence of the OIC or the OIC indicates that many countries who want a stable economy through the gold standard. The existence of compulsory reserve system allows doubling the money and interest system makes money is supposed to be a medium of exchange, being commodity. Opportunity used the standard currency of gold in very great. However, with the dollar as the currency of the most widely requested throughout the world will not be easy because of the advantages of printing dollars provide many benefits to the Fed. Classical gold standard had the lowest inflation rate. At the time of Bretton Woods, the real GDP per capita grew most rapidly, rather than another monetary system. Long-term interest rates the most stable during the classical gold standard system and a system of floating exchange rate of the most unstable. Short-term interest rates are at the most stable period of Bretton Woods. From here it can be said that the monetary system of any kind will be stable when standardized on gold, as in the classical gold standard system and the Bretton Woods system. This study suggests to change the world currency into dinar or dirham currency or currencies leaned back on gold. Bottom line is that the determination of the value of the currency is done with gold. Currency in circulation should be backed up with gold and silver.
Keywords –gold standard, floating exchange rate, inflation, interest rate, Bretton Woods
AICEDC Page 57 Paper No. ICOSEC-3-073067
Simultaneous Analysis of Financial Sector Development and Economic Growth in Indonesia and Malaysia (1995 - 2013)
Febrianto Endy Pratama1 and Siti Aisyah Tri Rahayu2
12Department of Economics, University of Sebelas Maret, Surakarta, Indonesia [email protected], [email protected]
Abstract
Economic growth and financial sector development are two very precise indicator used to look at a country's level of development. Each country will always strive to achieve the highest possible rate of economic growth so that the financial sector development will be able to synergize with high economic growth rates and the results of the financial sector can sustain the economic growth of a country. This research to analyze the long-term relationship role of financial sector development to economic growth in the Organization of Islamic Cooperation (OIC). Samples taken in this study is are Indonesia and Malaysia because these two countries are the country in the top 10 owners volume of gross domestic product (GDP) in most OIC countries. So the overall economic performance remains dependent on these two countries. However, these two countries despite having good economic record, have been unable to get into the top 10 countries with the fastest growth rate of GDP and the fastest export volume growth in OIC countries. Study that analyze the financial sector development to economic growth in Indonesia and Malaysia state using the simultaneous analysis of the two stage least square method in Indonesia and Malaysia in 1995 until 2013. The variables used in this study consisted of GDP, credit to private sector, stock prices index, industrial production, consumer price index, and interest rates are all derived from the data of world bank. This study shows that the financial sector development does not have a positive influence on economic growth both in Indonesia and Malaysia, because credit of private sector has significant influence but a negative influence on the economic growth of the Indonesian state and also does not have a significant effect on the state of Malaysia. So with this result the state government of Indonesia and Malaysia should be able to pay attention to the development of the financial sector given its influence on economic growth in the long term so that it can control the financial sector development. As well as set the consumer price index to increase private sector credit, which in turn could boost economic growth in Indonesia and Malaysia.
Keyword: Economic Growth, Financial Sector Development, Simultaneous Analysis, Two Stage Least Square, Credit to Private Sector.
AICEDC Page 58 Paper No. ICOSEC-3-081169
Customer Response Toward Out-of-Stock in Supermarket
Rina Arum Setyawati1
1School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia [email protected]
Abstract
Retail industries starts to grow rapidly in Indonesia since 1999, but out-of-stock (OOS) problem in retail store keeps unsolved. OOS describe the situation where customer cannot find their desired product because it is stocked out. In marketing field, OOS situation has been substantial interest to understand customer response when OOS situation occurred and underlying factors that affect it. To improve quality retail stores in Indonesia, OOS situation need to be reduced. This paper gives insight about how Indonesian market in Bandung City respond to OOS situation, so retail stores and manufacturers be more aware that OOS situation can cause them significant financial loss or not. Research model is adapted from previous OOS studies with its influential factors. This study use hypothetical OOS to Indonesian, after they finished shopping in Bandung City’s supermarket to fill in the questionnaire. In this study revealed that product switch is the most common response while store switch response has the lowest percentage. As product switch is the most common response, OOS situation can be said that it not give high impact to brand manufacturer or the retailer. It is also concluded that brand loyalty, alternative product within a brand, store loyalty, buying urgency, shopping attitude, shopping time and product category are significant factors that affect customer response toward OOS situation in supermarket.
Keywords: out-of-stock, customer behavior, retail
AICEDC Page 59 Paper No. ICOSEC-3-081170
Consumer Purchase Intention Towards Counterfeit Sporting Goods
Novi Septiana1
1Bandung Institute of Technology, Bandung, Indonesia [email protected]
Abstract
The purpose of this paper is to examine the factors that influence consumer purchase intention towards counterfeit sporting goods in Bandung City. This paper using multi linear regression to examine the consumer purchase intention. Purchase intention is dependent variable, while the independent variables include three items which are attitude, subjective norm and perceived behavioral control. These three independent variables reseacher adopt from theory of planned behavioral variable by Ajzen in 1991 that used to predict intention.
Consumers (N=100) in Bandung City completed surveys and the results showed that attitude, subjective norm and perceived behavioral control had a positive influence on purchase intention. In term of correlation test, it is indicated that attitude and subjective norm positively related to the intention to purchase, while perceived behavioral control negatively related to intention to purchase. As the regression result, it shown that attitude, subjective norm and perceived behavioral control collectively influences consumer purchase intention.
The most influence variable in order is attitude, subjective norm and perceived behavioral control. The limitation of this findings is the value of adjusted R square that only 0,223 which means the theory of planned behavior can explain only 22,3% of purchase intention and the rest 77,7% can be explained by other variables.
Keywords: theory of planned behavior, purchase intention, counterfeit, multi linear regression.
AICEDC Page 60 Paper No. ICOSEC-3-081676
The Impact of National Health Insurance Program by Social Security Agency (BPJS) on Demand and Public
Awareness of Health Insurance in Surakarta 2015
Nurul Istiqomah1
1Universitas Sebelas Maret, Surakarta, Indonesia [email protected]
Abstract
This study aims to determine the impact of national health insurance program that is issued by the Health Security Agency (BPJS) and to know the impact of national health insurance program of the public awareness of Surakarta; and to determine the factors that influence people's decision to make WTP of health insurance in Surakarta. Samples from this study were community Surakarta. This research uses descriptive quantitative methods, a research that combines information based on interviews, observations and using quantitative data for analysis. This research using Simple Random Sampling, is a method to take sampling from the populations without regard to strata and every members of populations have an equal opportunity to be sampled. Logit regression to determine the factors that influence the WTP for health insurance, and independent variables are incoem, age, education, marital status and gender. Almost 82.5 % respondent awareness that have health insurance is important, but only 20 % that have commercial health insurance, and nearly 62.5 % have health insurance because it is obtained automatically based their job. 17.5 % people that don’t have health insurance at all, wants to be as a participant in that program at the year of 2018 and 2019.
Only income and age that influential to the decision to purchase health insurance.
Keywords: Insurance, Health, Logit, Awareness