Modeling Economic Growth in Contemporary Indonesia

The number of MSMEs is very influential in economic growth, especially in developing countries. What is of concern to developing countries, although the number of MSMEs is increasing every year, they cannot develop in an increasingly competitive business environment. In this case, good business performance is needed to survive in this intense competition. This study tries to make a performance model of small-scale enterprises by finding out the effect of entrepreneurial competency variables and moderated by the variable competitive sphere and capability of organization. We use the partial least squares to confirm the theory and get answers about the influence between variables. Respondents of this study were 100 MSME owners in Bandung, Indonesia. The study's findings revealed that entrepreneurial competence had a significant influence both directly and indirectly on small firm performance. The variable of entrepreneurial competence provides the most powerful influence on the competitive sphere than organizational capability's moderating variable. Although the moderating variable of organizational capability is not as strong as the competitive sphere in influencing firm performance, it has a strong predictor (quality and flexibility).

School Operational Assistance Fund (SOAF), provided by the government and an increase in Regional Gross Domestic Product (RGDP), should increase public interest in education and reduce dropout rates. However, in some cases, it was found that the increase in RGDP and the promulgation of policies related to school tuition assistance did not reduce the decline in the number of students dropping out. Education itself is one of the driving economic growth factors, especially in developing countries such as Indonesia. This chapter aims to determine whether school grant programs and RGDP impact students who drop out. Our evidence presents a negative correlation between SOAF and dropout, and there is no significant effect. This study for knowledge implies that the student aid program's implementation system has not yet reached its best state, so the program will not significantly impact education. In the PDRB analysis, increasing economic growth does not necessarily improve education. The implication in practice shows the importance of planning, monitoring, and evaluating government plans, especially plans related to the carrying capacity of a country's economic growth in the short and long term.

This study aims to see the importance of the father's role and the responsibility of ownership in three family companies in Indonesia. The family company's success cannot be separated from the father's role, responsible as the family company's owner. The study used a qualitative approach method. This study is based on interviews with three different family companies. Our findings present that those fathers who have prepared early and involve the second generation in the family business are more adaptable to business. An interesting finding is that it depends, however, on the interests of the next generation. For example, if the next generation prefers operations, this is not easy to reconcile with their father's desire to focus on marketing. In the twenty-first century, especially during the COVID-19 pandemic, entrepreneurship has changed. The family businessman's role is increasingly important amid market dynamics so that it affects globally.

Entrepreneurial education in higher education has emphasized following the prospect of entrepreneurship as one of the determinants of countries' economic growth. Therefore, it is considered necessary to assess how the current education system and learning orientation improve student's motivation to become entrepreneurs. This study evaluates all indicators included in the variables of entrepreneurial education, learning orientation, and entrepreneurship intention. While the curriculum represents entrepreneurial education, teaching method, educator competencies, and university support system, learning orientation consists of learning commitment, knowledge sharing capability, critical thinking, and vision sharing, and entrepreneurship intention are measured by abilities in writing a business plan, generating business ideas, identifying business opportunities, and innovation and business startup. The data was harvested from questionnaires completed by 123 entrepreneurship program students and was processed using PLS. This study finds that (1) curriculum significantly influences student's learning commitment and business plan writing ability, (2) teaching method influences individual knowledge sharing and business idea generation ability, (3) educator competencies do not significantly affect students critical thinking and ability to identify a business opportunity, but critical thinking influences their skill in identifying business opportunities, (4) university support system does not significantly influence student intention to innovate and start new businesses, but it significantly affects their ability to share their visions, and the ability significantly influences their intention to innovate and start new businesses.

Nowadays, technological development makes activities easier to carry out, one of them is marketing work. Various marketing activities, both small and large sectors, use technology in their development, including SMEs. The content marketing strategy will further increase the growth rate of buying interest in products offered by SMEs. Content marketing is a strategy where marketers plan, create, and distribute content to attract targeted audiences and drive them to become customers. Although a content marketing strategy is important, not all SMEs use digital marketing in running their business. Being left behind in managing content marketing strategy is due to less reliable resources in mastering technology. SMEs are still required to master information technology to expand a broader market.

Retail or entrepreneurial shops support economic growth, conducting studies in this area is needed. Our study examines whether the buyers have moral intensity, religious beliefs, and self-concept affect purchase ethics. Using quantitative analysis, we employ 150 respondents, consisting of 94 women and 56 men; the analysis tool used is the structure equation modeling model. The results showed that moral intensity influences religiosity. Moral intensity does not affect self-concept, but religiosity stimulates self-concept, and self-concept impacts purchasing ethics. The limitations of this study have not tested the ethical attitudes of retailers, and respondents are very limited.

Economic growth can be pursued through company performance. However, few companies present negative equity. In Indonesia, some firms with negative equity have positive net income and stock returns. This study compares the performance of negative (and positive) equity in the Indonesia Stock Exchange. The observation was conducted from 2019, in marked negative equity notation and two previous periods. It involved all the market negative equity notation companies. We found no significant difference between companies with negative equity and those with positive equity on the asset's efficiency using comparative analysis. The difference relied on the capability of managing the expenses, including interest expenses. Leverage has a positive and significant correlation to assets utilization in companies with negative equity only, while it is insignificant in companies with positive equity. The investors consider the stock companies with negative equity even though the obtained stock returns are not different whether they invested either in the companies with positive or negative equity.

The purpose of this research is to find the best solution in cutting the poverty chain in the human capital development framework based on human capital investment with the opportunity and threat of Internet Inclusion and Financial Inclusion. This study uses a vector error correction model to see the relationship between variables, response, and impulse between variables to provide an overview of the relationship between variables during the study period and forecast future variable trends. We found that technological and financial inclusion P2P Lending can be an opportunity and a threat to developing the Indonesian people's human capital to reduce poverty. Human capital is proven to be effective in reducing poverty. Increasing human capital through human capital investment supported by inclusion technology and financial inclusion can reduce Indonesia's poverty. Financial inclusion can increase entrepreneurial and economic growth.

Development policies should boost the potency of human and natural resources. Reducing poverty and disparities and economic growth between regions still require hard work from stakeholders in North Maluku. Our study presents that poverty reduction and unemployment reduction in North Maluku have not been optimal. The poverty rate in North Maluku Province in 2011 was 9.17%, while the unemployment rate in the same period was 5.4%.

Many companies produce environmentally friendly goods and offer their products with varied attractive marketing mix strategies. One of the company's potential target markets is millennials because the growing number of this community has become enormous. In terms of behavior, millennials have a high level of consumption compared to other generations. However, there are big questions about the willingness of millennials to consume green products. This study aims to acknowledge the green product buying behavior among millennials, especially premium green products. The variables expected to influence the millennial's willingness to pay premium include environmental concern, reference group, and pro-environmental attitude. Data collected through a survey of 250 respondents. The hypothesis framework was tested using PLS-SEM modeling to evaluate the measurement and structural models with the assistance of Warp PLS version 7.0. This study found that millennials who consider the importance of preserving the environment and have a reference group that solicitude to the environment will have a pro-environmental attitude and willing to buy the green product, even though it has a higher price. Green product's management can use the result to formulate an effective green marketing strategy to target the millennials. Regarding the need for millennials' environmental behavior clearer picture in a developing economy, the present study inflicts the literature by describing the antecedents of millennials' willingness to pay premium green products. The results also give practical implications by shedding light on millennials’ green behavior variables. It helps green entrepreneurs conceive their strategic marketing management, and thus can boost the green economy and economic growth.

One of the important and strategic aspects in developing entrepreneurship in the agricultural sector, especially corn commodity, is the institutional aspect. Institutions have an essential role in reducing production costs and transaction costs to improve farm profits and impact economic growth. This study aimed to map the key variables and actors in reducing transaction costs in maize farming in Dompu Regency, West Nusa Tenggara. Data collection techniques in this study used questionnaires, expert interviews, and focus group discussions (FGD). Data analysis in this study used the prospective analysis method with the MICMAC and MACTOR tools. MICMAC performs critical variable mapping analysis, while MACTOR performs strength analysis between objectives and actors. The MICMAC analysis results show that 10 key variables determine the success of the development of corn farming in Dompu Regency, West Nusa Tenggara, namely the input market, capital, land, pesticides, seeds, fertilizers, labor, pests, bonds, and output markets. MACTOR analysis shows that the relationship between actors has weak direct interactions. We need a collaborative and integrative institution that is formed at the local level through the Village Integrated Agribusiness Service Center (PLATDes) and BUMDes in the form of BKD and UDes legal entities.

This study investigates the role of opportunistic behavior in earnings management. Using listed firms in the Indonesia Stock Exchange as the object of study, our examination shows that profitability's opportunistic behavior affects earnings management significantly. The higher the profitability, the higher the earnings management will be. Financial distress also affects the tendency of earnings management. The more severe financial distress, the higher the earnings management is. Another important finding is that bigger firms tend to perform more earnings management activities. This study contributes to earnings management and agency problems research in the context of go public firms in emerging markets since opportunistic earnings management will prevent investments, which will hamper the country's economic growth. This study also contributes to entrepreneurial studies. The manager is considered an entrepreneur CEO, so all the management strategies affect company value, including how the manager communicates the earnings information to accounting information users.

Rural poverty has been a significant problem in Indonesia for decades. To address this issue, rural microfinance institutions play an essential role. Badan Kredit Desa (Village Credit Institution/BKD) is an existing microfinance institution at the village level. This study aims to assess the financial health of BKD and explore whether transformation into a formal form of microfinance institutions can be done to help improve the welfare and economy of people in rural areas. This study used a mixed-method approach to understand the rural microfinance institution's condition by analyzing financial data for the 2016–2018 period and conducting an in-depth interview with BKD stakeholders to explore the possibility of transformation. This study found 15 out of 20 BKDs with relatively healthy criteria that can be transformed into a formal microfinance institution. In comparison, five BKDs that fall under the criteria cannot be transformed into formal ones. Moreover, BKDs have to face internal and external problems that might cause their low financial performance in conducting their operational activities. This research has several significant implications; first, as a baseline for local governments to determine the future of BKDs; second, transformed BKD will foster entrepreneurship by giving productive loans to village people; third, more economic activities as a result of increased entrepreneurship will lower poverty levels in the village; fourth, increased entrepreneurship and reduced poverty will support positive economic growth for Indonesia.

This study aims to address the problems of implementing the MBNQA in SMEs and also to see the significant differences in organizational performance between high-, medium-, and low-performing SMEs. The research method is a case study by exploring three SMEs engaged in the food sector. Research shows that from the seven dimensions of MBNQA, the main strength to achieve high performance lies in the leadership dimension. The weakness is in implementing strategic planning, while the strength is in empowering teams and achieving results. Suggestions for the future of SMEs must strengthen leadership positions and use owner strategies instead of leaders.

This research discusses technology, business sector, and infrastructure, reflecting government spending, consumption, net exports, economic growth, and poverty. This study uses secondary data from world banks and processed regression using the moving average autoregression method. We find that technology, infrastructure, and business sector investment encourage public consumption, increase net exports, promote economic growth, and alleviate poverty in Indonesia. The impact of poverty alleviation comes from an increase in population income and economic growth, reflecting population.

The role of information technology is very important, especially in achieving related performance to optimize supply chain management as recognized by various findings literature. The existence of computer equipment is no longer sufficient to cope with the various industry issues, especially those requiring the latest information from the aspect of visibility and information accuracy. This study focuses on the importance of visibility and accuracy of the information on the coffee supply chain and aims to identify the use of information technology to eliminate problems in the coffee industry, especially in West Java. The study begins by compiling basic assumptions and rules of thought used in research, data collection, data reduction, categorization, analysis, interpretation, and data display, and the conclusion. The data analysis used a decision-making trial and evaluation laboratory (DEMATEL), which was used to determine the representation of critical factors contained in the research dimensions. As a finding the coffee supply chain in West Java has not been responsive and efficient yet, so improvements need to be made to get high added value for regional economic growth. The results of the study also identified several obstacles along the supply chain and solution based on a high level of information accuracy with several challenges to utilize it, namely (1) data and information sharing, (2) forecasting optimization, and (3) collaborative planning. As a suggestion to increase visibility in supply chain management, further research is needed to create relevant software and systems to trace the solutions to the causes and challenges faced to improve the accuracy of the information and its visibility.

The focus of this study is to analyze the impact of financing sources on productivity and technical efficiency of the tuna fishing business in Sendang Biru Coastal, Indonesia, in order to improve the entrepreneurship goals. This research used the quantitative explanatory method. The results showed that fishermen's difficulty accessing traditional financing sources (banks and cooperatives) became a constrain in optimizing production activities. The financing source used by Sendang Biru fishermen for their business activities mostly comes from “Pengambek.” The logit regression analysis shows that the number of fishing gear and the size of the boat owned by fishermen have a positive and statistically significant effect on the opportunities for fishers to obtain traditional financing. The ability of fishers to obtain business financing sources positively impacts the productivity and technical efficiency of the tuna fishing business. Our research implies developing a financing system in coastal environment business, especially in the tuna fishing industry.

This research aims to determine the impact of the COVID-19 pandemic on the social and macroeconomic conditions of East Nusa Tenggara Province (ENT) and formulate strategies, policies, and programs for post-COVID-19 economic recovery. The study used two approaches, namely quantitative and qualitative approaches, where quantitative was used to determine the impact of COVID-19 on the macroeconomic variables of ENT. Meanwhile, a qualitative approach is used to analyze the impact of COVID-19 on social conditions and then formulate strategies, policies, and programs to overcome the economy after COVID-19. To help researchers analyze conditions and formulate strategies and policies using SWOT and analytical hierarchy process (AHP) analysis, then create a model for the economic development of ENT after COVID-19. The results of this study are the economic growth of ENT from the business sector, namely the accommodation, food and drink sector, then the wholesale and retail trade sector, followed by the transportation and warehousing sectors. Meanwhile, the sectors that experienced significant growth were information and communication. In the social aspect, poverty and unemployment rates have increased. Economic development strategies and policies are improving the quality of telecommunications networks in tourism areas, economic digitization, providing internet facilities, and free learning tools for underprivileged students. Collaboration between academics, government, leaders, business actors, and the media for economic development through social enterprises is needed. The impact of this research is to contribute to economic development after COVID-19 in ENT.

West Java, one of the provinces in Indonesia, is trying to develop the coastal tourism sector by applying the eco-tourism concept. The observation results found that there were differences in the concept applied by the local government, namely toward mass tourism. Therefore, one of the strategies proposed is developing tourist areas using a combination of eco-tourism and mass tourism. The increase in the tourism sector in this area will not only help the economic growth of the local community but also contribute to the improvement of the economy of West Java. This study aims to estimate the risks that will occur if the developer uses the mix-use method. The research was conducted by interviewing and distributing questionnaires to the Tourism Office, National Disaster Relief Agency, Business Actors and Communities, and Tourists. The method used is descriptive with quantitative analysis using a risk matrix based on AS/NZS 4360-2004 (Australian-New Zealand Standard). Meanwhile, the qualitative analysis used the interview method and Focus Group Discussion (FGD). The findings in this study are that both quantitative and qualitative analyses can provide input through risk identification and priority. This research also provides theoretical and managerial implications.

Banks are intermediary institutions that play an important role in accelerating economic growth. Therefore, banks need to implement policies to improve the efficiency and quality of digital finance, namely through the Extensible Business Reporting Language (XBRL), which developed amid Society 5.0. However, the application of XBRL does not completely rule out the possibility of information asymmetry. Therefore, this study aims to analyze the effect of Extensible Business Reporting Language (XBRL) on asymmetric information with corporate disclosure as a moderating variable (expected to reduce information asymmetry) and analyze the effect of XBRL and control variables (size, turnover, stock price) on information asymmetry. The sample used is conventional banks that have been listed on the IDX and are not delisted, from 2015, since the implementation of XBRL until 2019 using the panel data regression method. The results obtained are that information asymmetry decreases with the application of XBRL, where corporate disclosure is a moderating variable. For the results of the control variable, the larger the size, the less information asymmetry and turnover. As for the stock price, the higher the stock price, the higher the information asymmetry.

The growth of tourism development in Malang makes some regions optimize their tourism potential, leading to economic growth in Indonesia. Malang regency has several tourism villages with the concept of sustainable tourism. Using leverage analysis from the multidimensional scaling approach (MDS), we find two sensitive attributes. An analytical hierarchy process (AHP) test was conducted, resulting in the best strategy for each tourism village: developing strawberry-picking tour for Pujon Kidul and new tourism packages related to water attraction for Sanankerto and developing Bromo volcano tourism package for Gubugklakah. These strategies are believed to increase the development of tourist villages without compromising their sustainability.