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International Conference on Entrepreneurship, Management, Accounting and Social SciencesMalang, 25 October 2018

THE GLOBAL NEW ECONOMY: SOME THOUGHTS

Ameen TalibSingapore University of Social Sciences

Synopsis:Technology and the resultant disruptionis changing our lives. Today’s economy is very much skills and technology based. Competition has become global. As many industries have been disrupted, so has our lives.The Small and Medium Enterprises (SMEs) are trying to cope with the changes. Some countries, for example Singapore, are providing assistance for SMEs to globalise and undergo technology transformation.This presentation will touch on some of the issues and challenges the smaller businesses are facing in the new economy. We will also mention the role business schools can play to help the small businesses to compete and sustain themselves.

We shall specifically talk about 3 areas:

1. Topic 1: Small-Owner-Managed-Enterprises (SOME)Small-Owner-Managed-Enterprises (SOME) have their own issues and challenges and provide ample opportunity for research. SOME tend to lack having a professional management team and are very much owner-centred. Business Schools can provide assistance in this regard. Most business schools currently are training graduates to be managers of large companies. Maybe we should do better in preparing graduates to be entrepreneurs and small business owners.

2. Topic 2: Inclusivity and the Informal SectorOne of the buzzwords of the new economy is inclusivity. However, in a sense, it is also inclusion of the informal sector into the ‘formal’ sector; where transactions are captured and recorded. This could result in diminishing on the informal sector. This sector thrived on market inefficiencies and lack of access/information.Could this lead to increased income gap? Or is lack of knowledge and skills main driver for income gap widening? The business school academics could research the impact of the new economy on the informal sector and how it affects society. Is there a way skills can be ugraded to help reduce the income gap?

3. Topic 3: Cultural IntelligenceGlobalisation means businesses deal in different cultural settings. The significance of cultural intelligence and sensitivity will be discussed.

1


MBA STUDY TOURS AS TOURISM PRODUCTS

Bradley S. Brennan, Kyung Mi BaeInha University, South Korea

AbstractUtilizing interviews conducted with 16 administrators of MBA programs from four countries, this paper investigates the current trend of internationalization of Western and Asian MBA programs and postulates why graduate business schools are increasingly offering international study tours. Also examined are how relevant stakeholders perceive these trips and how internal and external pressures are affecting business schools as they evolve to remain solvent. This paper contemplates the MBA study tour through a tourism lens, which leads one to see these hands-on out of the classroom learning opportunities as a niche segment of educational travel, belonging to the broader category of youth tourism. Three significant findings emerged. First, primary motivations for the internationalization of MBA curriculum, faculty and student bodies. Second, how students, faculty, and administrators view study trips. Third, specific travel preferences that will assist the tourism industry in attracting these tours in the future. Also, how graduate business schools are coping with the dramatic increase in market pressures. Key factors include the immense influx of international students into MBA programs, the diversification of faculty, hyper-competition among MBA programs, growing popularity of substitute programs, the increased power of yearly global MBA rankings, student desire for more international focused programs and the commodification of MBA programs.

Keywords : MBA, Study Tours, Educational Travel, Niche Travel, Internationalization

2


RISK IN TAM MODEL: APPLICATION OF E-GOVERNMENT IN THE STATE OF KUWAIT

Hasan A AbbasKuwait University

AbstractStudies regarding and towards E-government are still growing in GCC area and not yet fully is been used to its fully advantages. Our study disclosures antecedents of actual usage among users Kuwait official site. We used TAM model with external variable (risk) to study the effects on actual usage. Results proves that all study hypotheses were significant. Furthermore, we found the associations of riskover perceived ease of use is statistically significant, perceived usefulness, and actual usage.

Keywords: Risk, perceived usefulness, perceived ease of use, TAM, actual usage.

3


THE EFFECTS OF BOARD COMPOSITION AND OWNERSHIP STRUCTURE ON EARNINGS QUALITY AND AUDIT FEES SURROUNDING THE INTRODUCTION OF

THE CORPORATE GOVERNANCE CODE IN JAPAN

Hiroshi UemuraKochi University of Technology, Japan

AbstractThe Tokyo Stock Exchange (TSE) revised some of the rules for listing securities, and a new version of the Japanese corporate governance code (J-Code) was applied in June 2015. The TSE argued that if firms appropriately practiced the J-Code, it would enable the development of firms, investors, and the Japanese economy as a whole because J-Code adoption prompts firms to make autonomous efforts to increase their valuation and thereby leads to sustainable growth. As a result of this change, many listed companies have submitted corporate governance reports to the TSE. Using a sample of Japanese listed firms, this study investigates how board composition (e.g., board independence) has changed and whether there has been an improvement in firms’ earnings quality since the introduction of the J-Code. The results indicate that after J-Code adoption, the ratios of outside directors, institutional shareholders, and foreign shareholders have increased. However, these external pressures have no effect on the improvement of earnings quality and the decline of control risk assessed by external auditors. On the other hand, the main bank shareholders and outside directors from main banks affect the improvement of earnings quality and the decline in control risk.

Keywords: Corporate governance code; Board composition; Earnings management; Audit fees

4


THE EFFECT OF CREDIBILITY, ALTRUISME, AND CSR INFORMATION QUALITY ON BANK REPUTATION: A STUDY ON INDONESIA BANKS UNDER THE CATEGORY OF

BUKU 3 AND BUKU 4

Lindiawati STIE Perbanas Surabaya, Airlangga University

Indrianawati Usman, Sri Wahyuni AstutiAirlangga University

Abstract

Reputation is important since customers are getting smarter in evaluating brands before making decision to buy. In banking industry, reputation reflects an aspect determining bank risks. In marketing area, the role of CSR is considered more important due to its altruistic values for society. If banks are able to manage the way they conduct their CSR activities through their credibility, then they are willing to expose or inform their CSR activity in a proper way or in a good information quality. Variables are controlled by the range on initial capital and the business coverage of the banks which are in Indonesian banking regulation are falling into the categorizations called BUKU or Bank Umum Kelompok Usaha. All Indoensia banks fall into four categories ranging from BUKU 1, 2, 3 and 4 reflecting the lowest to the highest level successively. The categories used in this research are BUKU 3 and BUKU 4 considering that these categories have already conducted and reported the banks CSR activities. The respondents are personnel who are in charge of CSR and they are the members of Corporate Forum for Community Development who respond on the bank CSR report to contribute the data for the variables of altruism, credibility, and CSR information quality; while the data on reputation are secondary data from Otoritas Jasa Keuangan which is responsible for controlling the business of Indonesian banks. All data are processed using Structural Equation Modelling

Keywords: Altruism, credibility, CSR information quality, bank reputation

5


OIL AND PRICEINDONESIAN ECONOMIC GROWTH

SultanUPN "Veteran" Yogyakarta

JJ. Sarungu, AM. Soesilo, Siti Aisyah Tri RahayuUNS Surakarta

AbstractOil Price and Economic Growth are important indicators to see the performance of a country's development success. The use of oil as the world's main energy source in general and Indonesia in particular is driven by industrialization. The more industries in a country, the greater the energy source it needs. In the same context, economic growth will also encourage increased demand for oil. This research uses time series data from 1971-2016 period (46 observations), simultaneous equation model analysis with two stages of least squares method (Two Stage Least Square / 2SLS). The purpose of this study is to test and create empirical evidence of world oil price relations and economic growth on domestic oil prices. Furthermore, to test and create empirical evidence of the relationship of domestic oil prices, agriculture, trade, investment, inflation, interest rates, industry, labor, exchange rate and balance of payments to economic growth. The method used is descriptive and econometric approach simultaneous equation model analysis. The expected results from this research will provide information on the oil price transmission mechanism mechanism and economic growth in Indonesia. The results show that there is a two-way relationship between oil prices and economic growth. Economic growth, world oil prices and domestic oil prices in the previous year had a positive effect on domestic oil prices. The second equation shows that the price of domestic oil, agriculture, investment, interest rate, industry, exchange rate, balance of payments and economic growth in the previous year had a positive effect on economic growth. While trade, inflation, and labor negatively affected economic growth during the period 1971-2016.

Keywords: Oil Price, Economic Growth, Simultaneous Equation

6


OVERCOMING THE NEEDS TO PROVIDE OTHER BENEFITS:HOW THE MARKOWITZ APPROACH CAN OPTIMIZE THE INVESTMENT

PORTFOLIO OF PENSION FUND IN INDONESIA

Sovi Savira Miftah, Sylviana Maya DamayantiBandung Institute of Technology

Abstract The penetration level of pension fund in Indonesia is low with only 6.26% in 2016, but the current economic and employment system is growing. Thus, the Government see that they need adjustment in the benefit that could be given to improve the retiree’s welfare. In 2017, Otoritas Jasa Keuanga (OJK) release a regulation number 5/POJK.05/2017, encouraging pension fund institution to provide other benefit besides the existing benefit. This new regulation has been a concern for Pension Fund in Indonesia since they have to gain more return in order to provide other benefits, especially for Employer Pension Fund that cannot do anything to get additional funding if the employer stop giving fund contribution. So, the most possible solution is by focusing on optimizing the investment portfolio. To find the optimum portfolio, efficient frontier, Capital Allocation Line, and Global Minimum Variance will be analyzed using Markowitz Optimization Theory and Solver Microsoft Excel add-in as the tool. Using the historical data from 2013 to 2017, the result showing that the portfolio of the pension fund in Indonesia still not optimal yet, and they could gain higher return with lower standard deviation compare to the past performance if they adopt this optimization theory.

Keywords: Portfolio Optimization, Investment Portfolio, Pension Fund.

7


VILLAGE FUNDS AND GOOD GOVERNANCE

Marita, Windyastuti, Lita Yulita FitrianiUPN “Veteran” Yogyakarta

AbstractTo support the village administration in running their responsibilities for developing villages, Law No. 6 of 2014 has provided a mandate to the national government to allocate village funds. Village funds carry tremendous potentials to accelerate the growth and development of a village. Aside from this positive impact, village funds might trigger corruption. To minimize this risk, village administrators must implement good governance to realize an accountable village fund management. Through the implementation of good governance, misuses of village funds can be eliminated. In addition, all stakeholders need to monitor the allocation of the funds to ensure that the funds are well-managed.

Keywords: village funds, risk, corruption, good governance

8


PROFITABILITY AND TARIFF ANALYSIS OF WASTE MANAGEMENT SERVICE: CASE OF SPECIAL SERVICES DEPARTMENT OF PD KEBERSIHAN KOTA BANDUNG

Sandra Faninda, Yunieta Anny NainggolanInstitut Teknologi Bandung

AbstractEconomic development basically centered on the process of making community to survive. Thus, any action taken to increase it should not sacrifice the survival of the community itself. In contrast there are a lot of people in the name of economic development conducting irresponsible business practice and environmental degradation coming as a consequence. What seen as a paradox to the sole meaning of economic development. As there is an increase in awareness of triple bottom line or also popular with sustainable development, many company in the world (including Indoensia) start to focus on managing waste resulted from their business process. But, in doing so large capital needed and not all company is able to do it. As an alternative waste management company become their solution. PD Kebersihan Kota Bandung tries to grab this opportunities by establishing commercial and industrial waste transportation service. Later, several concern raise into the surface such as profitability and relevancy of tariff as currently company does not maintain its cost at service level. This research tries to address this concern by analyzing cost structure of waste transport service and the result is later use in analyzing the profitability and tariff of this service, and proposing new tariff. Based on analysis conducted by using cost accounting method, this service currently facing a loss due to tariff per unit is lower than cost per unit. The new tariff with price per m3 of Rp 92,695 proposed in order to pull this service from loss condition.

Keywords: Sustainable Development, Waste Management, Cost, Cost Allocation, Profitability

9


INNOVATION MEASUREMENT METRICS FOR BUSINESS GROWTH

Sapto Benarimo, Yulianto SuhartoInstitut Teknologi Bandung

AbstractCorporate Mortality is very high. When come to business, only paranoids achieve success. From the article in Harvard Business Review, businesses have one in three chance of being delisted in the next five years because they are failing to adapt to the growing complexity of their environment. The decline in natural gas reserves in East Kalimantan effects on the decline of feed gas supply to PT Badak NGL, therefore currently LNG production is in its half of maximum capacity. If there is no new significant supply in the future, it is estimated that by 2027, the LNG plant will only operate 12.5% of its capacity, or will stop its operations. With business scheme as LNG Plant operator, PT Badak NGL has no control over entire LNG business chain and cannot create a new profit. Even though it has been operating for more than 40 years, PT Badak NGL has no experience to run an entire business cycle. Therefore it is more important for self-recognizing the capability to create and run new business processes than directly jump into a new business competitions. In this study, there are three methods of Innovation Measurement Metrics: Qualitative Analysis (by online survey), Quantitative Analysis (by data collection and calculation), and Comprehensive Analysis (by combining Qualitative and Quantitative Analysis). Company is then recommended to realize and monitor the implementation plan, and conduct regular Company Innovation evaluation using the method of Innovation Measurement Metrics for Business Growth.

Key words: innovation, quality, business survival, business growth, measurement metric

10


FUND RAISING ENGINEERING TO CREATE THE REQUIRED EQUITY PORTION IN OBTAINING BANK LOAN FOR THE ACQUISITION OF A 75,000 DWT OIL TANKER

VESSEL IN SERVING PT PERTAMINA (PERSERO) RENTAL PROJECT

Sherley Agustine, Uke Marius SiahaanBandung Institute of Technology

AbstractIndonesia market has potential US$90 billion-US$120 billion additional GDP from oil and gas industry sector for next decade or equal to 1%-4% adding of growth rate. There are still a lot of opportunities in increase capacity of production as well as decrease dependency on import and further create employments within supply chain activities as major responsibility of PT Pertamina (Persero) as state-owned oil and natural gas corporation. This momentum is exactly captured by PT Duta Marine Perdana (DMP) as one of companies that experienced in offering of oil and gas business solution, that one of its services is oil-tanker vessel leasing to enable PT Pertamina (Persero) deliver oil across islands in Indonesia. Based on strategy development, the best decision for PT DMP is to execute vessel funding strategy with combination of debt and equity to fulfill oil-tanker vessel leasing contract with PT Pertamina (Persero). Equity funding will be served by China SDHG in form of 1-year loan for 30% from total of vessel purchasing price while debt funding will be served by Bank X for the rest of vessel purchasing price until period to do repayment to China SDHG in next one year and to Bank X for four years later that sourced from sinking fund of monthly leasing payment from PT Pertamina (Persero). Capital budgeting as the material for assessment on project advisability is using Pay Back Period (PBP), Net Present Value (NPV), Internal Rate of Return (IRR), and Return on Equity (ROE) in three scenarios: pessimistic, most likely, and optimistic.

Keywords: oil and gas, oil-tanker vessel, leasing, capital budgeting, fund-raising engineering

11


ANALYSIS OF FINANCIAL FACTORS AFFECTING PROFITABILITY OF SHARIA COMMERCIAL BANKS IN INDONESIA

Dudi RudiantoBakrie University Jakarta

AbstractThis study aimed to analyze the financial factors which influence the level of profitability of Sharia Commercial Banks (SCB) in Indonesia. It is known that these factors are the level of liquidity proxied by Financing to Deposit Ratio (FDR), operating efficiencies proxied by the Operating Costs and Operating Incomes (OCOI), credit risk proxied by Non Performing Financing (NPF) and the capital proxied by Capital Adequacy ratio (CAR) influence on the level of profitability that is proxied by Return on assest (ROA). The data used in this study are quarterly data on five (5) SCB listed in Indonesia Stock Exchange period 2010 - 2015. The results showed that overall all the variables studied had an average value in accordance with the provisions of Bank Indonesia, so that the overall financial performance is said to be good except efficient operations that have an average value under the provisions of Bank Indonesia. Simultaneously all the variables studied had a significant impact on the level of profitability SCB. Partially only operating efficiency have a negative and significant effect on the level of profitability SCB. Thus, to increase the level of profitability, SCB need to consider carefully any changes in its financial performance and immediately take anticipatory measures when there is a change in mind because it will impact the level of profitability. Similarly SCB need to consider every kind of source of funds raised by considering the amount of the allocation of the cost of funds and operational costs. Efficiency must be applied to the various lines and all operational aspects.

Keywords: Level of Liquidity, Operating Efficiency, Credit Risk, Capital, Level of Profitability

12


THE EFFECTIVENESS OF “PLANS (PERSONALITY FIT BUSINESS)” TRAINING ON CHOOSING BUSINESS CATEGORIES

Farhanah Fitria Mustari, Henndy Ginting School of Business and Management ITB

Annisa FitriaCenter of Knowledge for Business Competitiveness (Ck4bc) SBM ITB

AbstractMany entrepreneur students run their businesses which are not congruent with their personality and it will affect the effectiveness of business performance. According to Holland (1985), congruency between personality and occupation can create personal satisfaction, increase productivity, and successful career. The research aims to assess the effectiveness of “PLANS (Personality fit Business)” Training to increase congruency between chosen business category and personality using Holland theory among entrepreneurship student candidates batch 2018 (N = 85). All of them got the "PLANS" Training which was divided into four sessions: (1) Self Exploration, (2) Business Insights, (3) Business Fields Exploration, and (4) Exploration of Business Potential and Planning. The research was conducted quasi-experimental using pre-test and post-test without a control group. The measurements were based on personality SDS (Self Directed Search) Holland test and newly designed business category questionnaire based on the Standard Classification of Business Field in Indonesia 2015. Data were analyzed using Paired t-test with significance level α = 0.05. The result showed a significant difference of congruency between personality and chosen business category before and after the training (t = 4.544, p = 0.00 (< 0.05)), (SD) pre-test = 34.71(29.857) and (SD) post-test = 51.71 (32.383). It means “PLANS” Training is effective in increasing congruency between personality and chosen business category among entrepreneurship college student candidates. Therefore, this research suggests the training to be integrated into entrepreneurship and other business school's curriculum such as the School of Business and Management ITB as a guideline before starting their study.

Keywords: Training Effectiveness, Holland Theory, Business Category, Entrepreneurship

13


COMPETITIVENESS OF THE AIR CONDITIONING INDUSTRY IN INDONESIA(CASE STUDY OF PT GMT)

Junianto M, Yudo AnggoroInstitut Teknologi Bandung

AbstractIndonesia presents promising potential for AC business. Various aspects of the country have driven the attractiveness of the industry, among others, tropical climate, population growth, and the agenda of government in pushing for economic growth. However, the weak capabilities of local industry have caused the business to depend much on imports. Certainly, the local business in the AC industry would face strong competition, especially from foreign brand which has the technological advantage.This final project focused on how the local AC manufacturer could compete in the Indonesia market which dominated by the import products. In outline, the study discussed about the AC business environment in Indonesia, how a local company build their strategy for competitive advantage among the rivalry, and the business model suitable to that strategy.The research analyses internal and external environment of the business to understand the factors for strategy formulation. For primary data, qualitative approach conducted through interviews with credible experts from the company and industry experts, while the supporting information are 2 collected from various resources (literature, website, news, etc.). The strategy recommendation as the result of this research include vertical integration, diversification, and differentiation to build the competitive advantage in the AC business in Indonesia.

Keywords: AC industry, business model, differentiation, diversification, vertical integration

14


ASSESSMENT OF KNOWLEDGE MANAGEMENT IMPLEMENTATIONAT OPERATION DIRECTORATE PT. JASA MARGA (PERSERO) TBK

A CASE STUDY

Ferdian Farouq FahleviInstitut Teknologi Bandung

AbstractThe availability of proper infrastructure connected directly with economic growth. However condition of infrastructure in Indonesia has becoming hindering factor toward investment in the area which actually has potential economy that can be developed. Therefore, connectivity between some areas becoming very urgent need that has to be fulfilled. Construction of toll road can be a problem solution, because toll road service makes transportation become more efficient and reliable. Those condition will contribute in faster goods and people movement that promote equal economy development among the regions. As a state owned company of Indonesian government, PT. Jasa Marga has to focus on providing more and better road infrastructure that benefit most to people of Indonesia. However, after changing its business became open public company, PT. Jasa Marga forced by shareholder to be a high performing and profitable company. Realizing the new situation, PT. Jasa Marga continuously strengthening its business structure by rolling out many program to improve quality and performance. One of those initiative is implementation of knowledge management. Objective of knowledge management is to re-use company knowledge to solve business issues and create innovation that bring values to the company.Research that was focused on knowledge management implementation has several objectives as following; to find out the establishment of knowledge management elements, to assess knowledge management level, and to provide business solution that can be used in order to make successful and sustainable knowledge management implementation. Research was carried out by using knowledge management framework created by APO (Asian Productivity Organization). The framework consists of practical guidelines how a company can design and conduct maturity assessment of knowledge management in the company.Research results shows that the company has already had some knowledge management element that at good level of implementation, however some other element are still need to be improved. Proposed business solution were grouped base on implementation time duration and based on action responsibility owners from organization. Besides those proposed business solution, implementation of knowledge management must be able to synergize with the existing business program and relations among internal organization sub division to support knowledge flow in the organization.

Keywords: Knowledge management, KM implementation, Business solution.

15


SELECTION OF A JACK UP DRILLING RIG USING ANALYTICAL HIERARCHY PROCESS (AHP) METHOD: A CASE STUDY OF

PT. SAKA ENERGI INDONESIA

Tommy, Yos SunitiyosoInstitut Teknologi Bandung

AbstractPT. Saka Energi Indonesia (“SAKA”) as an upstream oil and gas company, would require drilling rigs to support its drilling program in the effort of fulfilling oil and gas production target. The suitable type of drilling rig for SAKA blocks is the jack up drilling rig type because the blocks operated by SAKA are offshore blocks with water depth range 0 – 90 meter. A jack up drilling rig could be used to drill for water depth range 5 – 150 meter.Selecting a drilling jack up rig for exploration or exploitation program is a crucial decision since the rig will cost half of the drilling cost. And the rig itself will determine other type of services such as cementing services, tubular handling services, etc. Finding a good performance jack up drilling rig with an economical rate is a challenging work in Indonesia, especially when the procurement process of goods and services in upstream oil and gas is regulated by Government of Republic of Indonesia represented by SKK MIGAS in the form of Working Guideline named PTK-007 including its last applicable revisions. The PTK-selection process is normally consisted of 3 steps of evaluation: administrative, technical and commercial in a sequential process. In administrative and technical, normally a set of minimum requirement must be fulfilled by the bidders. Once they passed the minimum requirement, the final selection will be based on commercial. The best commercial in terms of lowest cost will be selected disregard their technical capability is better or worse than the other bidders. There’s no recognition on the higher specification or extra benefit provided by bidders.This final project is focusing on designing a selection model based on Analytical Hierarchy Process (AHP) to select a drilling jack up rig. This model could eliminate the disadvantage of the PTK-007 model which focusing more on commercial only. AHP model starts with determining the criteria and sub-criteria needed by key decision makers for selecting the jack up drilling rig. Then key decision makers made pair-wise comparison for all the criteria and its sub-criteria to get the level of priority or importance. In this research, there are four (4) criteria: Administrative, Technical, HSE (Health, Safety and Environment) and Commercial, meanwhile administrative criteria has two (2) sub-criteria, technical criteria has seven (7) sub-criteria, HSE has four (4) sub criteria and commercial criteria has two (2) sub-criteria. So there are total fifteen (15) sub-criteria. Total respondents involved in the pair-wise comparison were six (6) persons with different position and background. Total alternatives available for the selection were three (3) jack up drilling rigs. These rigs represented the rigs participated earlier in SAKA tender. The research has resulted priority of each criteria as follow: Administrative (0.085), Technical (0.371), HSE (0.344) and Commercial (0.200). Three (3) sub-criteria whose priority are the highest, are Rates (0.162), Management Commitment on HSE (0.134) and HSE Performance (0.090). Testing on the three (3) alternatives are giving result as follow: Rig A (0.416), Rig B (0.235) and Rig C (0.349). Rig A has been nominated as the best candidate.This AHP method in sourcing jack up drilling rig could be implemented in Gross Split PSC (Production Sharing Contract) owned by SAKA i.e. Pekawai PSC and West Yamdena PSC. In Gross Split PSC, contractor could do the procurement process independently and PTK-007 is no longer required to be followed. It is recommended to have three (3) phases in implementing this AHP method: Preparation phase, Collecting Data phase and Evaluation phase. Estimation of the process would take up twelve (12) weeks overall.

Keywords: jack up drilling rig, Analytical Hierarchy Process (AHP), criteria, sub-criteria, alternatives, priority.

16


PROBLEMATICS OF TECHNICAL IMPLEMENTATION UNITBECOMESPUBLIC SERVICE AGENCY (BLU)

Suraji, M. Nizarul Alim, PrasetyonoTrunojoyo Madura University

AbstractThe purpose of this study is to analyze the readiness of the Hydrodynamic Technology Unit

(BTH) becomes a Public Service Agency (BLU). The research method used is a qualitative comparative method with a case study approach. Research data collection techniques with interviews, observations and document review. Respondents in this study were Head of Administration Sub-Section, Head of Technical Facilities and Technology merit Services, Human and Resources Coordinator, Treasurer and State Property (BMN) Officer. The results showed that BTH is a non tax revenue (PNBP) work unit that provides hydrodynamic technology services to the public. BTH has industrial-scale testing facilities so that the performance of PNBP revenues can continue to be improved. BTH has annual PNBP income of around Rp. 5 billion. The results related to the findings of the 3 requirements to become Public Service Agency (BLU), BTH according to the substantive and technical requirements meet the requirements to be proposed as Public Service Agency (BLU), but the administrative requirements have not fulfilled it to be proposed as Public Service Agency (BLU) because non tax revenue (PNBP) income is less than the required minimum of Rp. 15 billion per year.

Keywords: Theory of Enterprise, Stakeholders, BTH, Public Service Agency (BLU)

17


IMPLEMENTATION OF PRODUCT MARKETING ACTIVITIES CULTURE BASED TOURISM

NawangsihSTIE Widya Gama Lumajang

AbstractCulture-based tourism marketing is increase to developing, the uniqueness of traditional values and culture is an attraction of cultural-based tourism marketing activities. The purpose of this study was to determine the implementation of marketing activities of tourism products carried out and to find out the uniqueness and appeal of culture. The research method uses qualitative descriptive. Data collection techniques through interviews, observation and documentation. The research location is at Mandara Giri Semeru Agung Temple, on Jl. Serma Dohir, Sumberagung, Senduro District, Lumajang Regency. Data collection method uses purposive sampling with research informants are people who are competent in their respective fields. Analysis of the data used consists of four stages, including: data collection, data reduction, data presentation and conclusion drawing. The results showed that: the implementation of tourism product marketing activities was viewed based on 4 (four) basic aspects of tourism product offerings, that is: attraction / attractiveness, accessibility / transportation, amenities / facilities and ancillary / institutional, which had been implemented in several elements still need to be improved again, one of them is amenities where there are still some supporting facilities available that are still not maximal, for example currency exchange facilities, and other supporting facilities related to activities carried out by tourists at a tourist destination. Whereas the uniqueness and cultural appeal of the Mandara Giri Semeru Agung Temple is realized in the form of traditional arts, traditional ceremonies, various interesting cultural attractions and local community wisdom.

Keywords: tourism, tourism products, culture

18


STOCK VALUATION OF PT. TEMPO SCAN PACIFIC TBK.

Berni Rahman Iskandar, Sylviana Maya DamayantiInstitut Teknologi Bandung

AbstractGlobal prescription drug sales are to grow at an annual compound rate of 6.5 percent in the next five years with worldwide sales of drugs are expected to be USD 1.06 trillion in 2022. The main driver of growth in the pharmaceutical industry is expected to be in emerging markets. PT Tempo Scan Pacific Tbk, one of the largest pharmaceutical companies in Indonesia, is experiencing a decline in stock price during mid-April 2017 until mid-April 2018. Although many Indonesian pharmaceutical companies are also suffered from depreciating Indonesia Rupiah exchange rate to the US Dollar, only PT. Tempo Scan Pacific Tbk. stock price that is steadily dropping down. To evaluate the future prospect of the company, stock valuation is performed to figure the intrinsic value of the company and provide investment recommendation for investors whether to buy or sell the company's stock.

Keywords: Stock Valuation, Intrinsic Value, Absolute Valuation, Relative Valuation, Sensitivity Analysis

19


EMPLOYEE RETENTION STRATEGY FOR HR CONSULTING FIRMA CASE STUDY IN ABC INDONESIA

Maria Stephanie Widjaja, Yuni Ros BangunInstitut Teknologi Bandung

AbstractABC Indonesia is a part of ABC Global, which the main business is to provide professional services in various areas of expertise. HR consulting is one of its service offerings. Aligned with ABC global strategy, one of ABC Indonesia targets is to have leading growth and competitive earnings sufficient to attract and retain world-class talent. ABC Indonesia HR Consulting Division has been successful in growing the business and becoming the market leader in HR consulting industry in Indonesia.Lately, in the midst of highly competitive industry and inevitable talent war, ABC Indonesia HR Consulting Division has been starting to lose some projects to its competitors and lost half of their employees within a few months, including those who held the key position and expertise. As people is the main asset in consulting business, ABC Indonesia HR Consulting Division need to retain its employees in order to ensure business continuity and sustainability.A series of interview to current and former employees was conducted in order to identify employee’s motivation to stay or leave based on combined employee engagement model. It is found that the work, working environment and collaboration are the top three reasons for employee to stay. Meanwhile, rewards & recognitions, benefits and relationship with supervisor/management are the top three reasons for employee to leave. Based on those results, a suitable employee retention strategy and its implementation plan is being proposed.

20


BUILDING BRAND AWARENESS FOR O-RANGER’s NEW SERVICES

Alvin Natanael, Herry HudrasyahInstitute Technology of Bandung

AbstractBusiness in courier and logistic services is the one business that have good prospect in this year. O-ranger is a team that is formed by Pos Indonesia to conduct a pick-up service which collect the parcel by come over to customers. The issue in this research is, the declining of mail and package sales and the challenge to implement the new services (O-Ranger). Analyzing the business situation through consumer analysis using importance-performance analysis (IPA) aims to evaluate and identify the major strengths and weaknesses of the new services PT Pos Indonesia through O-Ranger. This research identified a list of 17 indicators from the literature reviews that was categorized in marketing mix and each indicator was rated using a 7-point Likert scale. Responses were obtained from 125 questionnaires. The result from IPA Matrix shows that 4 items fall into the Quadrant I (Keep up the good work), 6 items fall into the Quadrant II (Concentrate here), 4 items fall into the Quadrant 3 (Low priority), 3 items fall into the Quadrant IV (Possible overkill). The findings help PT. Pos Indonesia to determine an appropriate the business solution through the marketing strategy for O-Ranger.

Keywords: O-Ranger, courier and delivery services, important performance analysis, marketing mix.

21


THE DESCRIPTION OF PSYCHOLOGICAL WELL-BEING IN JODIPAN MALANG COMMUNITY AFTER REVITALIZATION INTO 'JODIPAN TOURISM VILLAGE'

Norberta Fauko Firdiani, Seta Nur FurqanUniversitas Negeri Malang

AbstractOne of the goals of individual life is to achieve psychological well-being (Psychological Well-Being). Psychological Well-Being is a condition in which individuals have a positive attitude towards themselves and others, able to control behavior and make decisions towards themselves, able to create and manage a suitable environment, have a purpose in life, and have the desire to continue to develop self-potential. One aspect of psychological well-being is a person's ability to create and manage an environment that suits their needs.This study aims to determine the description of psychological well-being of the Jodipan Village community in Malang after the revitalization of 'Kampung Jodipan'.The research uses qualitative method and phenomenological approachment, with deep interview. This deep interview use to get informations excessively about psychological well-being of the Jodipan Village community in Malang after the revitalization of 'Kampung Jodipan'. The result indicates that revitalization in Jodipan Village have a positive impact towards community well-being. In addition, the revitalization caused Jodipan Village has been dubbed as ‘Jodipan Tourism Village’ that makes positive impact on individual welfare, especially in the economic field.

Keywords: Psychological Well-Being, Revitalization, Jodipan, Malang

22


BUSINESS STRATEGY TO GAIN COMPETITIVE ADVANTAGEIN LEADING MULTI FINANCE INDUSTRY IN INDONESIA

(CASE ANALYSIS OF PT ASTRA MULTI FINANCE)

Aditya Septiana, Yudo AnggoroInstitut Teknologi Bandung

AbstractIndonesia is among the top 5 most populated countries in the World. However, Indonesia is still behind of any developing countries in terms of financial inclusion. Multi Finance Companies present as alternative to increased financial inclusion in Indonesia. Finance companies have grown dynamically over the past few years. The financing value increased from IDR208 trillion in 2013 to IDR374 trillion in 2017. APPI recorded the highest growth in 2017 from non-automotive sector, which electronic sales is one of them. PT Astra Multi Finance (AMF) is one of the finance companies that focus on electronic financing. Through the SPEKTRA brand, electronic financing milestone in PT AMF can be said as a good progress. Strict competition in finance industry, and the presence of a substitute products such as fintech and e-commerce caused market share of SPEKTRA decreased over the last 3 years. This research focused on proposed business strategies for SPEKTRA. First, researcher needs to know the challenges faced by SPEKTRA. PESTEL & Porter 5 Forces analysis are used to gain opportunities and threats. While from the internal analysis, researcher find out the SPEKTRA’s strengths and weaknesses. After SWOT is obtained, researcher formulating new business strategy. Hope this strategy have a sustain competitive advantage for PT Astra Multi Finance, especially SPEKTRA brand.

Keywords: Business strategy, competitive advantage, financial inclusion, financing, multi finance

23


MARKETING STRATEGY FOR FOODCOURT BUSINESSCASE STUDY OF FOODSTEP PARAHYANGAN RESIDENCES BANDUNG

Beni Adi Santoso, Mustika Sufiati PurwanegaraBandung Institute of Technology

Abstract Foods, nowadays, is also part of bigger human needs, which is social life. With the increasing trends of foods and innovations, the competition in the industry become very tough there research is needed to win the marketshare. FoodStep as the case study is a foodcourt business held under subsidiary of Agung Podomoro Group located in apartment sites near UNPAR colleges. FoodStep needs to increase its revenue and decrease tenants turnover rate. Analysis is done by qualitative research and supported by quantitative method. Internal and External analysis is done which results in SWOT Analysis. External analuysis inlcudes consumer insight collected by survey to understand potential consumer attitude and existing consumer satisfaction. FoodStep is still lacks in many of its marketing mix which needs improvement. The proposed solution is to improve STP and Marketing Mix, using TOWS Matrix. The solutions are mostly allocated for Promotion Mix to capture target market. The action plan is arranged by considering UNPAR academic calendar which is used by the prioritized target market, students.

Keywords: consumer behavior in foodcourt, foodcourt business, Foodstep, marketing strategy, Parahyangan Residences

24


STRATEGIC ALLIANCE FOR PT INDONESIA ASAHANALUMUNIUM, PT ANEKA TAMBANG TBK, AND ALUMUNIUM CORPORATION OF CHINA LIMITED IN

CONSTRUCTING ALUMINA SMELTER(CASE STUDY: SMELTER GRADE ALUMINA REFINERY MEMPAWAH PROJECT)

Torang Arthur Nabiel, Uke Marius SiahaanInstitut Teknologi Bandung

AbstractAluminum business is a prospective in the future due to increasing demand of global industry for the commodity. Aluminum industry is also supported by its vast bauxite in Indonesia. Through Act No.4 of 2009 and Government Regulation No. 23 of 2010 on the Execution of Mineral and Coal Mining, Government encourages bauxite mining companies in Indonesia to build their own smelter for the purpose of refining bauxite to create added value before selling in the domestic and overseas market. Aluminum production requires a huge investment, including technological aspect and electrical support. PT. Aneka Tambang Tbk. as a domestic bauxite producer to plan construction of a smelter grade alumina plant. This plant has a capacity of 1,000,000 tons of alumina annually by processing 2,499,999 tons of bauxite ore. The plan with a project value of US$750 million will produce alumina as aluminum raw material for PT. INALUM. There are several objectives that will be accomplished in this project which are to create favorable business scheme between PT INALUM, ANTAM, and CHALCO in order to develop Smelter Grade Alumina Refinery (SGAR) Mempawah and to calculate the profitability for PT INALUM, ANTAM, and CHALCO through this project. The alternative business scheme used are Build-Operate-Own-Transfer (BOOT) scheme and leasing scheme. Sensitivity analysis also used in this paper as bauxite and aluminum price as commodity sure change through times. The favorable business scheme resulted by compare the two business scheme by each NPV, ROE, IRR and payback period.

Keywords: bauxite, aluminum, smelter grade alumina, financial analysis, BOOT, Lease, sensitivity analysis.

25


THE EFFECT OF FINANCIAL LITERACY, PARENTAL INCOME AND SELF CONTROL ON CONSUMPTIVE BEHAVIOR OF NTT STUDENTS IN SURABAYA

Martina Delfiana Rosniati Halek Bata, Rr. IramaniSTIE Perbanas Surabaya

AbstractConsumptive behavior has become a very important issue at this time. The high and low consumptive behavior can be associated with an understanding of financial, self control, and income. This study aims to examine the effect of Financial Literacy, Parental Income, and Self Control on Consumptive Behavior of NTT students in Surabaya. The sample consists of 200 respondents, in Surabaya in which they were taken by means of Accidental Sampling and Purposive Sampling. The characteristic of respondents such as NTT students in Surabaya, majoring in economics, and have lived in Surabaya for more than six months. Using Partial Least Square (Smart PLS 3), this research found that no dirrect effect on Consumptive Behavior by Financial Literacy and Parental Income. Self Control is negatively related to Consumptive Behavior and Self Control mediates the effect of Financial Literacy on Consumptive Behavior.

Key words: Consumptive Behavior, Financial Liteacy, Self Control, Parental Income.

26


INFLUENCE OF QUALITY, EXPERIENCE, VALUE AND SATISFACTION ON CUSTOMER LOYALTY IN CAFÉ SHOP IN SURABAYA

Yosef Aristo Besinleon, Yudi SutarsoSTIE Perbanas Surabaya

AbstractThis study aims to examine the effect of quality, experience, value and satisfaction on customer loyalty in a café shop in Surabaya. This study proposes a quality hypothesis, and experience will influence value. Value will affect satisfaction. and satisfaction, will affect customer loyalty at the café shop. This study took samples of customers who were visitors or buyers at Starbucks and Excleso in Surabaya with purposive sampling technique. There are 350 respondents in the second café shop, where the data analysis used is Structural Equation Model with Partial Least Square approach. The most prominent finding in this study is that product quality, service quality, value and satisfaction have a positive influence on customer loyalty while product quality does not have a positive effect on functional value and experience does not have a positive effect on functional value and symbolic value.

Keywords: product quality, experience, functional velue, symbolic velue, customer satisfaction and coustomer loyalty.

27


INDONESIAN BOARD GAMER PREFERENCE AND THEIR KNOWLEDGE AND AWARENESS OF INDONESIAN PUBLISHED BOARD GAME

Mohammad Ridwan Gunawan WibisonoInstitut Teknologi Bandung

AbstractBoard game has been in the market even longer than video games, this gives them advantage of being more authentic than video games. Their history made them harder to classify their genre, what types of board game is popular? How do you know that board game is popular because of how it is played? The board gamer perception about the product is different from one another and their drive to buy the product is surely different too from one another. Indonesian market is being invaded by foreign board game product and Indonesian published board game which has been growing for the past few years has a hard time to find its way to the market. This research is conducted to understand what the customer really perceived about existing board game in the market, what makes them prefer some board game over the other, what drives them into buying and owning a product. This research also brings light to what do the customer in the fields know about Indonesian board game product, who publishes them, what they feel about it, and how can Indonesian board game prosper in the convoluted market of foreign board game products. The research conducted in the form of qualitative research using Forum Group Discussion (FGD) and in-depth interview to a group of board gamer in Jakarta and Bandung, a board game developer and distributor, and a family segmented board gamer.

Keywords: Indonesian published board game, Board gamer knowledge, Board gamer preference, Indonesian board gamer brand awareness

28


OVERHAULING THE CULINARY DIGITAL PLATFORM BUSINESS MODEL, LESSON LEARNED FROM EATEVER CULINARY BUSINESS

Aprillina Sanjaya, Deddy Priatmodjo KoesrindartotoInstitut Teknologi Bandung

AbstractFood business becomes one of the sectors in e-commerce that experienced growth. Eatever is a start-up in the culinary field that offers online catering by using the platform to connects the curated homechef with the customer. In running its business, Eatever always suffered losses since it was established in July 2017 to January 2018. Evaluation the business model that has been applied because the business required a business model that led to the effort to make money and achieve a vision. Evaluation the business model through internal analysis and external analysis to know the root cause of the problem. The internal analysis of the business is to identify value propositions, value architecture, value network, and value finance as critical elements for evaluating platform business models. Meanwhile, external analysis consists of competitor analysis, market analysis, and PESTLE analysis. Based on the analysis, it is known there are problems in the business model that is applied, and there is a discrepancy between the business model and external factors that cause Eatever suffered losses. There needs to be a change in every aspect of the business model applied by Eatever consist of value proposition, value architecture, value network, and value finance in order to become a profitable business.

Keywords: Business Model, Value Proposition, Value Architecture, Value Network, Value Finance, Competitor Analysis, Market Analysis, PESTLE Analysis

29


DEFECT PRODUCT AND WASTE REDUCTION FOR ELHIJAB USING SIX SIGMA METHOD

Zahra Qalbi Imani Antadiredja, Nur Budi MulyonoInstitut Teknologi Bandung

AbstractFashion industry growth in Indonesia is emerging, including Muslim fashion. Because Muslim fashion demand increases each time, it pushes muslim apparel manufacturer to deliver a high-quality product to the customers. One of the muslim fashion manufacturers in Indonesia is Elhijab. In 2017, the actual productions of Elhijab were under the target, and it tends to decrease each month. Thus it makes their actual revenue always under the plan, and it makes them lose their revenue. This situation is affected by the high number of defect product and waste in Elhijab.This research deals with the application of Six Sigma methodology (DMAIC steps) to the production process in Elhijab to reduce the number of defect product and waste. This research also proposes solutions for the improvement through making better scheduling, building a supplier relationship management with key suppliers, and starting in-house production for the seasonal product while outsourcing the sewing process for basic product. The implications of the proposed solutions for the company are job order, and the raw material request will be accepted by fabrics and garments manufacturers, product delivery to customers will be on-time, the production process will be more controllable, solve the problem together with suppliers, enhance supplier’s performance, and increase customer satisfaction.

Keywords: defect product, in-house production, outsourcing, scheduling, Six Sigma, supplier relationship management.

30


THE EFFECT OF FIRM SIZE ON CORPORATE FINANCIAL PERFORMANCE: THE ROLE OF SHARI’AH CORPORATE SOCIAL RESPONSIBILITY AS INTERVENING

VARIABLE(EMPIRICAL EVIDENCE FROM JAKARTA ISLAMIC INDEX)

Ririn Irmadariyani1, Isti Fadah, Diana Sulianti K. Tobing, Siti Maria WardayatiUniversity of Jember

AbstractPurpose – The purpose of this study is to investigate the role of shari’ah corporate social responsibility on the relationship between firm size and corporate financial performance.Design/methodology/approach – This study uses explanatory research method. This study uses a sample of 78 firm-year observations from 13 firms listed on the Jakarta Islamic Index from 2011 to 2016. Partial Least Square (PLS) has been used to analyze the data.Findings– This study finds that there is no effect of firm size on corporate financial performance both directly and indirectly through shari’ah corporate social responsibility. Furthermore, there is no evidence that shari’ah corporate social responsibility can increase corporate financial performance. However, the empirical result show that firm size has positive impact on shari’ah corporate social responsibility.Research limitions/implications – For future research, thatshari’ah corporate social responsibility as measured by Islamic Social Reporting (ISR) should be applied to companies that are purely Islamic. The application of shari’ah corporate social responsibility is expected to giveshari’ah value added that is corporate financial performance and corporate non-financial performance. For future research is expected to investigate the effect shari’ah corporate social responsibility on corporate non-financial performance. Originality–The concept of shari’ah corporate social responsibility is developed by researchers from the concepts that exist in the shari’ah enterprise theory, stakeholder theory, and business ethics.

Keywords: Firm Size, Shari’ah Corporate Social Responsibility, and Corporate Financial Performance

31


TWISTING THE END FATE OF TREASURY SHARES:HOW THE OPTIMAL CAPITAL STRUCTURE CAN IMPROVE THE CORPORATE

ACTION OF TELKOM INDONESIA

Muhammad Afif, Deddy Priatmodjo KoesrindartotoInstitut Teknologi Bandung

Abstract According to POJK No.30/POJK.04/2017 that regulate Repurchase Shares By Public Company, Telkom Indonesia has an obligation to divert 1,737,799,800 of the remaining of treasury shares until the due date in November 2018, that have been held for almost 6 years. The remaining of the treasury shares might divert through reselling in or outside the stock exchange and/or cancel by means of capital reduction. The objective is to give the best suggestions to Telkom Indonesia to end the treasury shares program by also achieving the optimal capital structure that could maximize the company’s value. This research begins by identifying and examining the internal and external factors of the business. Afterward, this research will examine the simulation of the company’s capital structure proportion, including the scenario of the remaining treasury shares, through every possibility in the capital structure condition, in order to assess which kind of optimal capital structure that would maximize the company’s value. After conducting the optimal capital structure simulation, Telkom Indonesia is in under levered situation. Therefore, the company should cancel the remaining of the company’s treasury shares. The result suggests to Telkom Indonesia to use more debt for good investment project such as merger and acquisition or any capital expenditure to support the aggressiveness of infrastructure development.

Keywords: corporate action; optimal capital structure; telecommunication sector, trade-off theory; treasury shares.

32


THE EFFECT OF SHIFTING IN SHANGHAI STOCK EXCHANGE COMPOSITE, NIKKEI 225, DOW JONES, S & P BSE SANSEX, STRAITS TIMES IN INDONESIA COMPOSITE

INDEXON THE INDONESIA STOCK EXCHANGE DURINGJANUARY 2012 - DECEMBER 2017

Mia Laksmiwati, Ivo RolandaUnivesitas Budi Luhur

AbstractOne that is often echoed by various parties is that the ICI is an economic leading indicator (first economic indicator). The economic indicators that are widely discussed by various parties are inflation, interest rate, unemployment number, stock price index, money supply, large trade index, farmer exchange rate index, export, import and economic growth and channeled credit. The ICI is the main indicator used by traders or investors who invest in the stock market. With the increasing number of investors investing in Indonesia, it will help accelerate the development process in all vital sectors of the country, including public facilities and education, which in turn will increase Indonesia's economic growth rate. It is undeniable that investment is the driving force of economic growth and greatly influences the high and low economic growth of a country. This study aims to determine the effect of the Shanghai Composite, Nikkei 225, Dow Jones, S & P Bse Sansex, Straits Times and their effects on Indonesia Composite Index. In this study, we used multiple linear regression analysis method using Statistical Product for Social Science (SPSS) version 22 program. The results showed no influence of the Shanghai Composite Index on the ICI. But, there is some influences of the Nikkei 225 Index, Dow Jones Index, Sansex S & P BSE Index and Straits Times Index on (ICI) on the Indonesia Stock Exchange (IDX) during January 2012 - December 2017.

Keywords: Shanghai Composite Index, Nikkei 225 Index, Dow Jones Index, S & P BSE Sansex Index, Straits Times Index and ICI (ICI)

33


INTEREST RATE RISK OF BANKING SECTOR: THE EFFECT OF MATURITY GAP MANAGEMENT ON NET INTEREST INCOME IN INDONESIA

Andewi RokhmawatiUniversity of Riau

AbstractAlthough there is an interest rate fluctuation due to global uncertainty, there has been an increase in investment growth in Indonesia. The investment increase leads to the rise of the amount of credit distributed by Indonesian banks. Nevertheless, the increase is not followed by the increase in banks’ net interest margin (NIM). This study aims to examine the effect of maturity gap management of Indonesian banking firms as the reflection of interest risk of banks on Net Interest Income (NII). The study employs multiple regression analysis with panel data covering 57 banks that provide the complete data of maturity gap from the year 2013 to 2017. Maturity gap management is measured with interest rate sensitivity (IRS) and measured with maturity gap. The maturity gap is calculated as the difference between Risk Sensitivity Assets (RSA) and Risk Sensitivity Liabilities (RSL). Maturity gap management is measured with a dummy variable. The positive gap is scored with one and zero for otherwise. The study includes Loan to Deposit Ratio, net Non-Performing Loans. It also groups the banks based on the ownership (state banks, private domestic banks, and foreigners) and based on the years of their financial reports. The results of the study show that maturity gap has a negative effect on NII and banks with positive gaps have higher NII than banks with negative gaps. These results imply that when there is a decrease in interest rate, the positive wider gap will lower NII.

Key words: Interest Rate Risk, Maturity Gap, Net Interest Income, Indonesian Banking Sector

34


THE INFLUENCE OF PROFITABILITY, LEVERAGE, FIRM SIZE, OUTSIDER OWNERSHIP, AUDITOR’S REPUTATION AND FINANCIAL RISK ON THE TIMELINESS

OF FINANCIAL REPORTING SUBMISSIONS

Enni Savitri, Andreas, Raja Adri Satriawan SuryaUniversitas Riau

AbstractCompanies need actual information to run their business. Actual information is able toprovide accurate information relevant to current business conditions. Information is said to be relevant if the information is capable of making a difference in a decision. Information that is most important for the company is information in the form of financial reports. The financial report is the final stage of an accounting process. The financial report has an important role in measuring and evaluating the performance of a company.The purpose of this study is to examine the effects of profitability, leverage, firm size, outsider ownership,the reputation of the public accounting firm and financial risk on the timeliness of financial report submissions. This study used a sample of all trade, services and investment companies listed in Indonesia Stock Exchange in 2014-2016. A total of 78 companies were examined. Multiple linear regression was used to test the hypotheses. Results show that profitability, outsider ownership, the reputation of the public accounting firm and financial risk have significant effects on the timeliness of financial report submissions, but leverage and firm size do not have effect.

Keywords: Profitability, Leverage, Firm Size, Outsider Ownership, Reputation of the Audit Firm, Financial Distress, Timeliness of Financial Reporting.

35


INITIAL PUBLIC OFFERING ANALYSIS OF PT PHAPROS TBK

Nadhila Fajrina, Yunieta Anny NainggolanInstitut Teknologi Bandung

AbstractIndonesia as the fourth most populous country in the world, certainly has a high need for health. Therefore to improve the health level of the Indonesian population, starting in 2014 the government has started a national health insurance program (JKN). Currently the application of JKN continues to be continued so that if this program has covered all Indonesian people, this health insurance will be the largest health insurance in the world. Procurement of pharmaceutical or drug products is a critical point of concern to the government. The pharmaceutical industry is required to be able to meet national drug needs. In addition, since 2017 the government also continues to encourage SOE’s subsidiaries to be able to conduct initial public offerings (IPOs). Seeing the great potential for the advancement of the health sector and the opportunities, especially for the pharmaceutical industry, Phapros as a subsidiary of the state-owned PT. Rajawali Nusantara Indonesia (RNI) plans to conduct an IPO by releasing 48% of the portfolio shares to the public and is expected to obtain funds of Rp500 billion from this IPO. The funds obtained will be used as organic and inorganic growth for the company. This study aims to determine the intrinsic value of PT Phapros and possible IPO price ranges for investors. In this study, the determination of intrinsic value uses absolute valuation with the Discounted Cash Flow method. Relative valuation with the P/E ratio method is also used as a supporting analysis for absolute valuation. Based on the calculations, Phapros intrinsic value with 95% degree of confidence level will fall or estimated in the price range of Rp1,653 as the lowest price and Rp 3,002 as the highest price. The most likely intrinsic value will fall in Rp2,641 based on absolute valuation and supported by relative valuation.

Keywords: Discounted Cash Flow, Initial Public Offering, Intrinsic Value, Pharmaceutical Industry, Valuation

36


INFLUENCE OF INVESTMENT DECISION, FUNDING DECISION, DIVIDEND POLICY, RETURN ON EQUITY AND EARNING PER SHARE AGAINST PRICE TO BOOK VALUE(EMPIRICAL STUDY OF COMPANIES INCORPORATED IN THE JAKARTA ISLAMIC

INDEX LISTED ON THE INDONESIA STOCK EXCHANGE PERIOD 2016-2017)

Astrid Dita Meirina Hakim, Slamet Mudjijah Universitas Budi Luhur

AbstractThe aim of a company is to maximize shareholder value, by increasing the rate of return on the investment carried out. Company value can be measured from the amount of Price to Book Value (PBV). The high value of price to book value is the desire of the owners of the company, because the high price to book value indicates the prosperity and welfare of shareholders is also high. Some factors that influence price to book value include investment decisions, funding decisions, dividend policies, debt to equity ratio (DER), return on equity (ROE), and earnings per share (EPS). This study aims to determine the effect of debt to equity ratio, return on equity, sales growth, and earnings per share on price to book value in companies whose shares are incorporated in the Jakarta Islamic Index on the Indonesia Stock Exchange for the period 2012-2016. The population in this study amounted to 30 while the sample numbered 26. The method used was panel data regression using E-views program.. The results show that funding decisions, return on equity, and earnings per share affect price to book value. While investment decisions and dividend policy do not affect the price to book value of companies whose shares are incorporated in the Jakarta Islamic Index on the Indonesia Stock Exchange for the 2016-2017 period.

Keywords: Influence Investment Decisions, Financing Decisions, Dividend Policy, return on equity, earnings per share and price to book to value.

37


THE INFLUENCE OF LIQUIDITY AND ASSET STRUCTURE TO PROFITABILITY MEDIATED BY CAPITAL STRUCTURE.

Slamet Mudjijah, Astrid Dita Meirina HakimUniversitas Budi Luhur

AbstractThis study aims to analyze the effect of liquidity and asset structure on corporate profitability with the role of capital structure as a mediator. The population in this study are tourism sub-sectors, hotels and restaurant listed on the Indonesia stock Exchange. The sampling technique used purposive sampling technique, the criteria determind were touristm sub-sector companies, hotel, and restaurant that publish complete financial statements during the period 2012-2016. Financial report data is obtained from the Indonesia stock Excange website. Data analysis method is multiple linear regression analysis. Hypothesis testing using t-test, F-test, Sobel test. The results show that liquidity and asset structure directly affect Profitability. Capital structure cannot mediate the effect of liquidty and asset structure on Profitability.

Keyword: Liquidity,Asset structure, Capital structure, Profitability.

38


THE ROLE OF SOCIAL AND ENVIRONMENTAL PERFORMANCE IN MEDIATING THE EFFECT OF GENDER ON FINANCIAL PERFORMANCE (A CASE STUDY ON PUBLIC

COMPANIES IN INDONESIA)

Agnes Apriani Diaz, Muazaroh STIE Perbanas

AbstractThis research was built from gender theory stating that femininity and masculinity have different characteristics in decision making so that it will have an impact on achieving certain outcome. The attempt to equalize gender in various positions in the company continues to be carried out to achieve the balance of gender positions believed to have a positive impact on the company. This research aimed to prove whether gender will have effected on the company's performance regarding the financial, social, and environmental aspects. Moreover, this research will also prove whether social and environmental performance can be mediators to improve financial performance of the company. This research used samples from Public companies that participating in Indonesian PROPER Award period 2016. The variables in the research were Gender (female composition), Social Performance (CSR disclosure score), Environmental Performance (PROPER ranking), and Financial Performance (ROE) that were obtained from the company's annual report published on the website of Indonesia Stock Exchange (IDX), website of each company, or from Indonesian Ministry of Environment. Data were analyzed using regression analysis and path analysis. The results of the research prove that Gender had a significant direct effect on financial performance, but did not have a significant effect through the mediation of social and environmental performance. However, this research also succeeded in proving that Environmental Performance could significantly affect the Financial Performance. This indicates that gender equality efforts by improving the composition of women in companies are things that companies in Indonesia need to pay attention to.

Keywords: Gender, social performance, environmental performance, financial performance.

39


FACTORS AFFECTING FINANCIAL PERFORMANCE OF VILLAGE OWNED ENTERPRISES

(A CASE STUDY IN THE DISTRICT OF ROCK SUMENEP)

Syahril, Akhmad Faiz Alif Ghufron, Mohammad HerliUniversity of Wiraraja

ABSTRACTVillage-owned enterprises (BUMDes) is a container for the villagers to manage the potential of the village so the village can become a self-sufficient village that does not necessarily rely on the town APB. The existence of village-owned enterprises could help the town regarding the industrial city. In realizing the necessary independent village-owned financial performance was the great village. The object of this study conducted in the town located in the District of Rock. The research aimed to Know the constraints experienced by the village-owned enterprises and knowing that affect the financial performance of village-owned enterprises in the District of Batuan District Research Sumenep. A method used is qualitative with the phenomenological approach. The author will collect data by observation, interview, and documentation. The results of the study are contained in the District BUMDes rocks have obstacles, such as capital, the lack of information about local government, as well as the lack of honor given to employees BUMDes. Also, there are also constraints factors affecting financial performance BUMDes namely capital, responsibility, public education, beliefs, as well as the type of business. The findings of this study all aspects that need to work together in building BUMDes around the village of Sumenep. Previous research on the financial performance BUMDes not associate with factors BUMDes but with the financial statements.

Keywords: Factors, Performance, Finance, Agency, Business, Belonging, village.

40


KIFAYAH ACCOUNTING: FINANCIAL MANAGEMENT OF THE DEATH OF TRADITION MADURA INDONESIA

Syahril, Ibn Fajar, Mohammad HerliUniversity of Wiraraja

AbstractThis study aims to determine the model of financial management deaths Madura tradition. The study is based on the reality that is happening in the community about the implementation of the culture that made the heir to the family members who died. This study uses a type of qualitative interpretative research, which in this study more emphasis on the in-depth understanding of a problem that occurred. Based on these results, the financial management of Madura tradition deaths could be found in the accounting equation. Where not all of the accounts contained in the accounting equation is used as a whole and is reported as generally financial statements. In this case, the source of funds in carrying out the death tradition comes from private money, donations from family, money from Moslem, borrow money or goods, and money or goods from the Alphabet. The outcome was the incidence of both short-term debt and long-term. While expenditure in the form of costs in taking care of the bodies, the price for tahlilan (petto'arean), pa'polo, nyatos, nyataon, nyaebu, mangaji, ngin-tangin, nyaleninmayyid, and ajege (kep-sekep).

Keywords: Accounting, Kifayah, Tradition, Management, Finance, and Madura.

41


TAXATION REFORM WITH EMPLOYEE PERFORMANCE AND THE IMPACT OF TAX RECEIPT

(STUDY OF THE SPECIAL DIRECTORATE GENERAL OF JAKARTA, INDONESIA TAX OFFICE REGIONAL OFFICE)

Sugeng Riyadi, Prita Andini, Pradipta ImandityoUniversitas Budi Luhur

AbstractThis study aims to analyze the effect of tax reform (human resources, remuneration, and organizational structure) in improving employee performance and its impact on tax revenue. Object of research is Regional Office of the Directorate General of Taxation, Jakarta. Number of research sample is 211 respondent. In this study the authors took 211 respondents from the Regional Office of the Directorate General of Taxation Jakarta using a saturated sampling. Author using Structural Equation Model with Partial Least Square approach assisted with SmartPLS analysis software version 2.0. Based on the results of the study can be concluded as follows (1) fostering human resources, especially employees whose tenure is under 10 years to qualified employees, (2) maintaining a remuneration policy towards a fair and efficient manner and in accordance with the ability of the government, (3) the organizational structure is always updated in accordance with the progress of science and technology to be responsive to changes, (4) employee performance is always monitored to obtain effective performance in accordance with the goals or targets set, (5) the results of this study are able to confirm the theory of motivation, and organizational theory, (6) this research still contains an scientific truth for that for the next researcher to add other variables or the number of respondents such as variable job satisfaction, motivation, internal system of defense, and leadership.

Keyword: Tax Reform, Tax Revenue, Employee Performances.

42


THE EFFECT OF LOVE OF MONEY AND TYPES OF REWARDS ON THE ESCALATION OF COMMITMENTS: EXPERIMENTAL STUDIES

Isna Putri Rahmawati, Y Anni Aryani, Nasyiah Hasanah PurnomowatiUniversitas Sebelas Maret

AbstractEscalation of commitment is a tendency to make decisions to survive or increase its commitment to failed actions. This can be motivated by factors that are intrinsic or extrinsic. This study aims to examine empirically the effect of love of money (intrinsic) and type of reward (extrinsic) on the escalation of commitment. The types of rewards divided into financial and non-financial awards. The experimental method is used with a 2x2 design between subjects and business students as project manager surrogates. Participants are undergraduate students in accounting program at Sebelas Maret University who have taken Management Accounting and or Financial Management subject. The results show that someone with higher love of money tend to do escalate commitment. In addition, managers will tend to escalate commitments when they get financial rewards.

Keywords: love of money, escalation of commitment, reward and experiment.

43


NON-DISCRETIONARY FACTORS AND LOAN LOSS PROVISIONS: COMPARISON BETWEEN CONVENTIONAL BANKS AND ISLAMIC BANKS

Atik Isniawati, Rahmawati, Ari Kuncara Widagdo, Agung Nur ProbohudonoUniversitas Sebelas Maret

AbstractLoan loss provisions (LLP) is an estimate of the number of future losses on loans granted by a

bank as part of its credit risk management function. LLP is one of the accrual items in a bank's financial statements which is one type of cost that has the largest proportion in the income statement. The determination of the amount of LLP by the bank is strongly influenced by non-discretionary elements which are factors outside the bank's environment and cannot be controlled by the manager. Some previous literature states that the bank's response to non-discretionary factors differs between conventional banks and Islamic banks. Therefore, this paper tries to determine the moderating variables of bank institutional characteristics as an attempt to close the research gap from previous literature that is relevant to the topic of this study. This variable is expected to explain the difference in the influence of non-discretionary factors on the determination of the amount of bank’s LLP. The framework offered in this research concept is in accordance with the economic conditions and regulations that apply in Indonesia. The strength of the influence of non-discretionary components on the determination of LLP is very important. Regulators are very interested in the factors that influence LLP to establish regulations that can minimize adverse impacts on management's behavior in responding to conditions outside the bank on the determination of LLP that might harm customers. This research framework requires empirical testing in the future to clarify the significance of the influence of moderation variables used.

Keywords: Macro Economic Conditions, Credit Risk, Loan Loss Provisions (LLP), Non-discretionary Allowances.

44


TAX AMNESTY AND CAPITAL MARKET REACTIONS

Trisninik Ratih Wulandari, Juliati Universitas Sebelas Maret Surakarta

AbstractThe tax amnesty policy launched by the government will make the capital market respond to that information. This is because the stock market is sensitive to events around it. The purpose of this study is to test and analyze investor reactions to tax amnesty policy events at the time of announcement, end of period I, II and III.

The research was conducted on companies listing the Indonesia Stock Exchange (IDX). The research sample was 555 companies, with purposive sampling method. This study is an event study, the time used in the study is 11 days in vulnerable time when the announcement of tax amnesty policy and at the end of period I, period II and period III tax amnesty in the capital market, which is transformed into numbers -5, -4, -3, -2, -1, 0, 1, 2, 3, 4, 5. The observation period is 11 days, namely 5 days before the announcement, before the end of the tax amnesty I, II and III (t-5) periods, 1 the day of the announcement, the end of the tax amnesty I, II and III (event date, t = 0) period and 5 days after the announcement date, the end of the tax amnesty I, II and III period (t + 5). The object of the research is abnormal stock returns on companies listed on the IDX. The research analysis technique is paired sample t-test and wilcoxon signed rank test.

The results showed that there were differences in the average abnormal return before and after the announcement period, the first and third periods of tax amnesty implementation, but there was no difference in the average abnormal return before and after the second period of tax amnesty.

Keywords: Tax Amnesty, Market Reactions, Companies Listing on the IDX.

45


ANALYSIS OF REGIONAL FINANCIAL PERFORMANCE, UNEMPLOYMENT, POVERTY AND HUMAN DEVELOPMENT INDEX AFTER TRANSITION OF PBB AND

BPHTB TO DISTRICTS

Juliati, Trisninik Ratih Wulandari, Hanung TriatmokoSebelas Maret University

AbstractThis study examined whether regional financial performance (the regional independence ratio, the degree of fiscal decentralization ratio, the regular capability index and the harmony ratio) has an effect on unemployment, poverty and human development index after the transition of the PBB and BPHTB. Data used in this research is financial report of regional government of regency / city. Sample of this study used 224 financial report (2013-2014) of regional government and represented western, central and eastern of Indonesia . The method to analyze was regression. The results of this study were that the regional financial performance have negative effect on unemployment and poverty except harmony ratio and have positive effect on human development index except harmony ratio.

Keywords: PBB, BPHTB, regional financial performance, unemployment, poverty and human development index

46


MOTIVES FOR FIXED ASSET REVALUATIONS: EMPIRICAL STUDY IN INDONESIA STOCK EXCHANGE

Sri Hastuti , Universitas Pembangunan Nasional “Veteran” Yogyakarta, Universitas Sebelas Maret

Bambang Sutopo, Ari Kuncara Widagdo, and Doddy SetiawanUniversitas Sebelas Maret

AbstractThis study examinesthe motives of fixed asset revaluations. Along with fair value measurement methods, firms have the opportunity to revalue the assets. Gain or losses from the revaluation of fixed assets will be reported in other comprehensive income. This study uses a sample of Indonesian listed firms for the period 2012-2017. Using logistic regression analysis, the results of this study show that the firm size, tax period, and market to book ratio have influence on the company’s decision of asset revaluation.Other findings showthat the motives of fixed asset revaluations depend on leverage. These results suggest that temporary tax cut policy in Indonesia is effective to influence the decision of fixed asset revaluations.

Keywords: asset revaluations, firm size, leverage, tax period, market to book ratio

47


MODELING AND FORECASTING CREDIT GROWTH USING ARIMA

Kurnia Insyiani Putri, Lutfi LutfiSTIE Perbanas

AbstractThe Indonesia Financial Service Authority, namely OJK, projects that the credit growth disbursed by Indonesian banks increase to 9% up to 11% in 2018, which is triggered by the infrastructure development plan. As a bank which initial objective is to provide financing for the implementation of regional development efforts, and in accordance with the vision and mission of RDB) Regional Champion that is refined into RDB Transformation Program, Regional Development Bank (RDB) should have the ability as an Agent of Regional Champion by actively contribute to the regional development through credits. Based on this condition, RDB credit growth forecasting was performed using ARIMA which was compared to the situation analysis to minimize prediction errors caused by both global and domestic environment changes. The research results showed that in 2018, BPD credit growth tended to fluctuate with an increasing trend compared to the same period in the previous year.

Keywords: Regional Development Bank (RDB), ARIMA, Credit Growth, Situational Analysis.

48


MODERATION EFFECT OF STRATEGIC INFORMATION SYSTEM DEVELOPMENT ON THE RELATIONSHIP SOCIAL SUSTAINABILITY IN THE SUPPLY CHAIN AND FIRM

PERFORMANCE.

Titik KusmantiniUniversitas Pembangunan Nasional “Veteran” Yogyakarta, Universitas Sebelas Maret

Ahmad Ikhwan SetiawanUniversitas Sebelas Maret

Hendri Gusaptono, Hadi OetomoUniversitas Pembangunan Nasional “Veteran” Yogyakarta, Universitas Sebelas Maret

AbstractThis paper aims to explore the determinants of social sustainability in the supply chain (SSSC) of the company and examine the role of strategic information systems development as moderating variables in the relationship of SSSC and firm performance. The research setting used a sample of small and medium sized companies of “Batik Tulis” in Bantul Regency, using a sample of 106 SMEs of natural color batik. Testing the hypothesis in this study using hierarchical regression analysis techniques. The results of the study proved that determinant variables such as environmental uncertainty, regulation of environmentally friendly proved to have a significant effect on SSSC, while interdependency determinant variables consisting of three dimensions namely interdependency task, interdependency goal and interdependency reward identified that the three dimensions had no significant effect on SSSC. While the influence of SSSC on firm performance proved to have a significant effect, also the ability of the strategic information system development variable to prove significant was able to strengthen SSSC's influence on firm performance. The results of this study have a theoretical contribution to the development of institutional theory and dynamic capability theory because the research is able to produce business modeling that essential role of strategic information systems development as a strategic effort of SMEs in order to increase the influence of SSSC capability. More specifically, the results of the study provide empirical evidence about the social concept of sustainability in supply chain (SSSC) in order to develop a new theory of Sustainability Supply Chain Management.

Keyword: Social Sustainability in Supply Chain (SSSC); Determinants of SSSC; Firm Performance; strategic information system; Hierarychal Moderation Regression.

49


THE EFFECT OF WEBSITE QUALITYAND SOCIAL MEDIA TOWARD BRAND IMAGE AND ONLINE PURCHASE DECISION MAKING

Ayunda Eka Widiyanti, Tatik SuryaniSTIE Perbanas Surabaya

AbstractThe development of online marketing in Indonesia has increased significantly along with the growth of internet users. There are two marketing tools which common There are two marketing promotion tools commonly used by small and medium enterprises, namely website and social media. The objectives of this research are to examine: (1) the influence of website quality towards brand awareness and brand image, (2) the effect of social media on brand awareness and brand image, (3) the effect of brand awareness on E-WOM, and (4) the effect of EWOM on brand image, (5) the positive influence of E-WOM on online purchase decision making, and (6) the effect of brand image on online purchase decision making. The researcher involved 260 respondents online products which selected byrandom sampling technique. By using Structural Equation Modeling (SEM) the results found that: (1) website quality has positive effect on brand awareness and brand image, and (2) there was a significant influence of social media on brand awareness. The results also showed that (3) there was strong significant influence brand awareness towards E-WOM. Beside it the influence of brand image on E-WOM was positive significant, effect of E-WOM online purchasing decision was moderate significantly and (6) the influence of brand image on line purchase decisions is weak. The implication of the research, it is very important for small and medium enterprises improve their quality of website and media social.

Keyword: website quality, social media, brand image, brand awareness, e-wom, purchasing decisions

50


EFFECT OF GOOD CORPORATE GOVERNANCE, RISK, EFFICIENCY, PROFITABILITY, AND BANK SIZE ON STOCK RETURN AT PUBLIC BANKS IN

INDONESIA

Manda Floressa Septiani Kore, Rr. IramaniSTIE Perbanas Surabaya

AbstractThis study aims to examine the effect of Good Corporate Governance (GCG), Risk, Efficient, Profitability, and Size to the Stock Returns at the banking company in the Indonesia Stock Exchange period 2011-2016. Data were collected using nonparticipantobservation. The study population was the whole banking companies listed in Indonesia Stock Exchange period 2011-2016. By using purposive sampling obtained a sample of 16 banking companies. The analysis technique used in this research is multiple linear regression analysis. Hypothesis testing results show that the eficienct have negative and significant effect on the stocks return and size have positive and significant on the stock returns. GCG, risk, and profitability have no significant effect on stock returns. Advice can be given, future studies are expected to add another independent variable that can measure the soundness of banks will also be an effect on stock returns.

Keywords: Good Corporate Governance (GCG), Risk, Efficient, Profitability, and Size to the Stock Returns

51


BUILDING A TRUST IN INDONESIA’S E-COMMERCE THROUGH INFORMATION PRIVACY PROTECTION : ACTOR-FACTOR PROBLEM’S IDENTIFICATION

Jumiati, Haula Rosdiana, Retno KusumastutiUniversity of Indonesia

AbstractThe increasing of data breach in Indonesia’s electronic transaction, the low level of Indonesia’s cyber maturity and e-commerce’s consumer concerns in information privacy make its protection requires involvement from many actors. On the other side, national regulations on the protection of personal data have not been adequately implemented in Indonesia, different interests and resource’s allocation between actors. The protection of consumer information privacy in Indonesia’s e-commerce is one of prerequisites for a safe and trusted ecosystem for Indonesia’s digital economy. This paper aims to identify actor-factor problem to build a trust in Indonesia’s e-commerce through consumer’s information privacy protection. Through literature study, document review and online media/site analysis is discovered that information privacy protection in Indonesia’s e-commerce can minimized uncertainties and risks by implementing data security standards, the establishment of watchdog institutions, and actors engagement in the governance of information privacy protection. The information privacy protection has become mutual symbiosis in Indonesia’s e-commerce that each actor should aware and contribute on the implementation of cybersecurityso this will encourage the security of electronic’s transactions, the increasing of consumers’s trust and Indonesia’s revenues in digital economy.

Keywords: E-commerce; Information privacy protection; Trust

52


DEVELOPING OPTIMAL PORTFOLIO FOR BANKING PENSION FUNDS IN INDONESIA

Sheba Lydia Wardhana, Yunieta Anny NainggolanInstitut Teknologi Bandung

AbstractEvery employee deserves to have guarantee to fulfill their need after the retirement. The establishment of pension fund is crucial to manage because this program promises retirement benefits. In general, the investment type of pension fund is a long-term investment, because it takes at least ten years (Undang-Undang No. 11 Tahun 1969). As a leading state-owned financial institution in Indonesia, Bank Rakyat Indonesia (BRI) Pension Fund needs to increase return from their stocks investment to fulfill the benefit for their participants. ROI of Stock investment on BRI Pension Fund from 2013 until 2017 showed a poor performance compare with IHSG, so there is a chance to increase the performance of stock investment in BRI Pension Fund with the implementation of Markowitz Method. The author runs performance analysis on BRI Pension Fund and five other pensions funds with large capital, i.e. Bank Indonesia, Bank Mandiri, Bank Central Asia, Bank Negara Indonesia, and Bank Tabungan Negara Pension Fund. For the stock performance of these six pension funds, the return is sort from the highest average return to the lowest average returns: return on 2014 at 25.87%; 2017 at 18.62%; 2016 at 13.76%, 2013 at -7.74, and 2015 at -15.36%. The banking pension fund with highest average return is the Bank Negara Indonesia Pension Fund at 14.43% and the pension fund with the highest standard deviation is Bank Tabungan Negara Pension Fund at 22.99%. From the analysis of banking pension fund performance for the past five years, the return given by implementation of Markowitz Method using Solver tools can beat the actual return in 2013 and 2015, which is those years the market is in low condition. So, BRI Pension Fund must adjust their weighting of stocks based on the optimal portfolio developed using Markowitz Method in 2018 to get optimal return.

Keywords: optimal portfolio, stocks, banking pension fund, Markowitz Method, Indonesia Stocks Market

53


PROPOSED MARKETING STRATEGY TO INCREASE BRAND AWARENESS OFLOCAL WATCH BRAND: CASE STUDY OF GROOTWATCH

Anissa Karina Fuadi, Sonny RustiadiInstitut Teknologi Bandung

AbstractThe creative economy is a concept that emerges as a discourse to focus the creativity as one of the drivers to run contemporary economic activity. Grootwatch is one of the creative economy businesses started in Bandung, Indonesia. Established in 2014, Grootwatch is a small business that offers innovative watch products made from cow’s bones and bull’s horn. However the current target market of Grootwatch (male and female of millennial generation) is not aware about the product. Also, the sales from the beginning of 2016 until 2017 were decreased. In order to deal with the problem, Grootwatch needed to validate their target market as well as the product/market fit. A suitable marketing strategy is also needed to reach that market. Internal and external analyses are done in the research. The external analysis consists of PESTEL analysis, Porter’s Five Forces, and Competitor Analysis. The internal analysis consists of Marketing Mix, Segmenting, Targeting, and Positioning (STP) analysis, Value Propositon Canvas, and Business Model Canvas. The research resulted in crystallization of target market of Grootwatch by adding occupation attributes based on millennial generation in Indonesia, which are employees and entrepreneurs. The Value Proposition Canvas validation shows that there is an incompatibility between the target market and the product offered by Grootwatch. To resolve the problem, a new marketing mix strategy is proposed. The author also proposed to use AISAS model implementation and brand activation strategy to help increase brand awareness of Grootwatch.

Keywords: value proposition, positioning, marketing strategy

54


BUILDING CORPORATE REPUTATION THROUGH CORPORATE SOCIAL RESPONSIBILITY (CSR), CORPORATE CULTURE AND VALUE CREATION

IN THE INDUSTRY OF SHARIA BANKING IN INDONESIA

Chandra Zaky Maulana, Yuyus Suryana S, Dwi Kartini, Erie FebrianUniversitas Padjadjaran Bandung

AbstractThe aim of this research is to find influence between CSR and corporate culture on the corporate reputation through value creation as intervening variable in the sharia banking industry (Sharia Commercial Banks and Sharia Subsidiary Unit) in Indonesia. There is a paradox phenomenon showing that amidst huge market share potential as a Muslim majority country, the market share of sharia banking is still very insignificant compared to the conventional banking.

This research used explanatory survey method. The approach in the modeling and the technical solution as the tool analysis is Structural Equation Modelling (SEM). Datas were processed using Lisrel 8.5.

Primary datas were collected via distribution of questionaires through email, considering distance, time and funding limitation. Unit of analysis are Head Offices and Branch Offices, since this research took Branch Manager and Operational Manager as unit of observation. Observation were made using cross section/one shot time horizon. Respondents were set based on judgment sampling, drawed from population of 1.242, whereas200 respondents proportionally took from each province.

The results showed that CSR disclosure and Corporate Culture significantly influenced the reputation of sharia banking in Indonesia through Value Creation as the intervening variable.. This was proved by the correlation score of 2.73 (t-count is higher than 1.96) for CSR and 3.01 for Corporate Culture, as for Corporate Culture proved to show the highest correlation with Corporate Reputation. Therefore, the research drawed a conclusion that, CSR disclosure and Corporate Culture positively and significantly influenced the reputation of sharia banking industry in Indonesia and Value Creation variable mediates the correlation..

Keywords: CSR, corporate culture, value creation, corporate reputation, sharia banking industry

55


THE CONTRIBUTION OF CORPORATE SOCIAL RESPONSIBILITY FOR INCREASING CORPORATE IMAGE AND WORD OF MOUTH IN INDONESIA ISLAMIC BANK

Tatik Suryani, Suhartono, LindiawatiSTIE Perbanas Surabaya

AbstractRecently Corporate Social Responsibility (CSR) is highlighted as an important factor to make figure in many industries, including in banking industry. Interestingly, there are not many research in Islamic banking industry focus on that area. The purpose of this research is to analyze whether CSR has a significant relationship toward Corporate Image (CI) and Word of Mouth (WOM) in Islamic bank. Furthermore, this research also to examine the effect of CI toward WOM in Islamic banking industry. The data is collected using questionnaire method involving 238 bank’s customer who get chosen for CSR program from bank. The data is analyzed using Partial Least Square. The result from this research showed that CSR has a positive significance effect towards CI and CI has positive has positive significant effect towards Word of Mouth. In the end, this research revealed that banking industry should focus more on implementing effective CSR because it shows positive correlation toward creating positive CI and WOM which could persuade customer decision toward choosing their personal Bank.

Keywords: CSR, Corporate Image, WOM, Islamic Bank

56


THE NUMBER OF BOARD MEETINGS, THE BOARD MEETING ATTENDANCE LEVEL AND ITS IMPACT ON THE PERFORMANCE: A STUDY OF LISTED MANUFACTURE

CORPORATES IN INDONESIA

Yaumil Fauziyyah, Sholatia Dalimunthe, IGK Agung Ulupui, Agung BuchdadiState University of Jakarta

AbstractWe investigate the impact of The Number of Board Meetings (NBM), The Board Meetings Attendance Level (BMAL), Firm Size (FZ) as the variables used on corporate performance for a sample of 135 listed corporations from 2013 to 2016 in Indonesia. The analysis technique employed in this study is stage least square (LS) panel data regression using return on asset (ROA) as the proxies of Manufacturing companies performance. The data used are listed Manufacture corporates in Indonesia. The findings reveal that The Number of Board Meetings (NBM) and The Board Meeting Attendance Level (BMAL) has a positive impact on Return On Asset (ROA). This results provide empirical support for agency theory, which suggests that corporate boards that meet more frequently have increased capacity to effectively advise, monitor and discipline management, and thereby improving corporate financial performance.

Keywords: Indonesia, Board Meeetings (BM), Firm Size (FZ), Manufacturing, Return on Assets (ROA)

57


EXECUTIVE COMPENSATION AND ITS IMPACT ON THE PERFORMANCE : A STUDY OF LISTED MANUFACTURE COMPANIES IN INDONESIA

Bagas Gusti Pamungkas, Sholatia Dalimunthe, IGK Agung Ulupui, Agung BuchdadiState University of Jakarta

AbstractThis study determines the effect of executive compensation on the performance of manufacture companies in Indonesia. The variables used are executive compensation (EC), firm size (FZ), and the return on asset (ROA) of the company. The analysis technique employed in this study is least square (LS) panel data regression using return on asset (ROA), as the proxies of bank performance. The data used are listed manufacture company in Indonesia Capital Market between 2013 and 2016. The findings reveal that the executive compensation has a positive impact on return on asset of manufacture company. Regarding these results the stakeholders could maintain the role of executive compensation to make the firm better performance.

58


DO INDIVIDUAL REGULATORY FOCUS AND CODE OF ETHICS AFFECT THE ETHICAL JUDGMENT REGARDING BUDGETARY SLACK?

Jurica LucyandaUniversitas Bakrie Jakarta

Supriyadi, Mahfud Sholihin, Slamet SugiriUniversitas Gadjah Mada

AbstractThis paper proposes to understand the role of individual regulatory focus and code of ethics in ethical judgment regarding budgetary slack within the organization. Previous researches found that budgetary slack had traditionally been viewed from the perspectives of organizational and behavioural issues. This paper tries to view budgetary slack from the perspective of ethical issues. Using regulatory focus theory (Higgins, 1997, 1998) from psychology and social norm activation model (Bicchieri, 2006), this paper tries to develop propositions about the role of individual and organizational factors in ethical judgment regarding the budgetary slack for the purpose of experimental research design in the future. The regulatory focus theory based on individual factors and social norms activation model – organizational factor – are important because these have never been used and adopted in the previous research about budgetary slack related to ethical judgments. Keywords: budgetary slack, code of ethics, ethical judgment, regulatory focus theory, social norm activation

59


SOFT INFORMATION AS A COMPLEMENT TO HARD INFORMATION: TRADE OFF BETWEEN IMPRESSION MANAGEMENT AND INCREMENTAL INFORMATION

Julianto Agung Saputro YKPN School of Business Yogyakarta

Jogiyanto Hartono, Zaki Baridwan, SumiyanaUniversitas Gadjah Mada

Abstract

An annual report is an important source of information for investors to make decisions. The annual report presents information in the form of soft (qualitative forms) and hard information (quantitative forms). The amount of soft information disclosed in the annual report from year to year is getting higher. The impact of the increasing amount of soft information disclosed is that the information presented becomes increasingly pronounced and thorough. However, on the contrary, the increasing amount of soft information can also confuse the readers and make the information disclosed unclear and biased. The two motivations that underlie managers disclose soft information are the motivation to provide additional (incremental) information or motivation for impression management, i.e. managers try to conceal their unfavorable performances by giving positive impressions on the information disclosed. This paper discusses why managers decide to choose one of these two motivational choices and how investors react to both motivations.

Keywords: Hard information, soft information, qualitative information, quantitative information, motivation management, impression management, incremental information.

60


HOW TO BRING NEGATIVE CSR INTO LIGHT?

Poppy Dian Indira KusumaUniversitas Jenderal Soedirman

Supriyadi, Mahfud Sholihin, Zuni BarokahUniversitas Gadjah Mada

Abstract

Prior studies revealed that most companies are reluctant to disclose the negative aspects of their social responsibilities (e.g. Aktar, 2013; for Indonesian case, see: Gunawan et al., 2011). The reluctancy may be due to the companies concern to avoid from losing legitimacy. Given that pressures for transparancy have been increasingly stronger and including negative aspects of corporate social responsibility has been claimed disclosure quality, there is a need for strategies to disclose negative aspects of corporate social responsibility. The strategies are intended to address the bad impact of having negative information on company performance. This paper proposes a conceptual model on the effective use of impression management strategies to minimize the bad impact of disclosing negative information of corporate social responsibility. Based on signaling and impression management theory, we propose that symbolic and substantial legitimacy strategies can be useful to communicate negative corporate social responsibility to investors. In addition, compared to symbolic strategy, we also propose that the substantial strategy will give a better impact to reduce the bad impact.

Keywords: corporate social responsibility, disclosure, symbolic, substantial.

61


BUSINESS STRATEGY FOR THE SUSTAINABLE GROWTH OF AIRCRAFT MAINTENANCE, REPAIR, AND OVERHAUL (MRO) COMPANY IN INDONESIA

Putu Gevani Saraswati , Harimukti WandeboriInstitut Teknologi Bandung

AbstractThe improvement in global GDP growth and the digitalization era are affecting the global industry performance including aviation industry. Higher air travel demand lead to the increasing number of aircraft and Maintenance, Repair, and Overhaul (MRO) activities. The global MRO market growth will be at approximately 3.8% compound annual growth rate (CAGR) over the 10 year period (from 2017-2027) and this opportunity creates higher competitive landscape especially in Indonesia MRO business. Purpose of this paper is to seek and identified MRO business strategy for the sustainable growth in Indonesia market. The fundamental MRO business of PT GMF AeroAsia have been identified and analyzed through an extensive literature review, observation, in depth interview and experts group discussion. The proposed strategy is basically derived from the SWOT analysis based on PESTLE, Porter’s Five Forces, and Resources Based View (RBV). Development of differentiation strategy becomes the key to support GMF’s sustainable growth in Indonesia market. The differentiation strategy originates from cost advantage and business expansion. Besides providing analysis of cost drivers to optimize company’s performance, the analysis of differentiation strategy to be the total solution MRO provider lead to the tendency of cooperative strategy through strategic partnership to expand the market penetration and product/service development.

Type of Paper: Empirical

Keywords: Business strategy, Aircraft MRO, Cost Drivers, Differentiation Strategy

62


THE RELATION BETWEEN COMPENSATION OF BANKING EXECUTIVES, CHARTER VALUE, CAPITAL REQUIREMENTS AND RISK TAKING

Tafdil Husni, Rida Rahim, Yurniwati, Desyetti Andalas University

AbstractThis study aims to analyze the effect of compensation, charter value, and capital requirements on risk-taking as measured by non-performing loans (NPL), loan-to-deposit ratio (LDR), and operational risk (OR). This study used a sample of 30 banks listed on the Indonesia Stock Exchange (IDX) in the period 2006-2017 with 360 observations. The analytical method of the study employed random effects model (REM) and partial least squares (PLS) regression. The results of this study indicate that compensation and charter value tend to have a significant negative impact on NPL, LDR, and OR. This study has limitations because it used a measure of compensation with cash incentives and risk-taking with an accounting risk approach.

Keyword: risk-taking, charter value, capital requirements.

63


DEVELOPING THE HUMAN RESOURCES SHARED SERVICE CENTER MODEL FOR INDONESIA’S LEADING AGRIBUSINESS AND FOOD COMPANY TO INCREASE

COMPETITIVENESS IN GLOBAL MARKET

Sarah Felicia, John WellyInstitut Teknologi Bandung

Abstract

Business strategies and organizational forms are more complex than ever, one of the reason is due to changing business models and the need to manage a portfolio of varied business models, and efficiency pressures to increase volume, reach and capability without adding overhead expense. In the case study of Indonesia’s leading agribusiness and food company, the company feels the needs to implement HR Shared Service Center (SSC) model to consolidate various HR policies, standard, and practice within its multiple business units operating from different locations, including small operations in other countries. The implementation of HR SSC is an important milestone in its growth plan as a key enabling infrastructure to support the expanding business operations in the future years, with its vision to be the strategic and sustainable partner to increase the competitive edge and value, for the business and all stakeholders. It is believed that SSC can provide high value, standardized, and scalable services and solutions in the most innovative ways to deliver valuable business insights and best-in-class customer experience. By utilizing Kates-Kessler’s Five Milestone Design Process, this final project will elaborate the business case for HR SSC, create a basic structure and tie the pieces together through strategic grouping and integration, as well as defining what capabilities, structure, process, rewards, and people practice required for SSC model based on Galbraith’s STAR Model. At last, Kates-Kessler’s Six Design Driver is applied to ensure a holistic, efficient, and inclusive approach in determining the optimal HR SSC Model for the company.

Keywords: Centralization, Shared Services, Reorganization, and Efficiency.

64


DEMAND ANALYSIS OF DIENG TOURISM OBJECTS USING THE TRAVEL COST METHOD

Irma Suryahani, Indah Susilowati, Nugroho SBMDiponegoro University

AbstractThis research was conducted with the aim to determine the factors that influence visitor demand for Dieng tourism objects. The next goal is to estimate the amount of demand for Dieng tourism objects. In addition, this study is also to estimate the economic value of Dieng tourism objects. The findings in this study are divided into three, namely: based on the above calculation is known that Travel Cost of Dieng variables affect the number of tourists visiting attractions Dieng and has a negative relationship where the higher costs to attractions to Dieng will decrease the number of tourist visits to Dieng. Travel Cost Baturraden variables have an influence on the number of tourist visits to Dieng with a positive coefficient where if there is an increase in costs to Baturraden tourism objects will increase the number of tourist visits to Dieng tourism objects.

Keywords: deman economics, travel cost, attraction, information

65


THE IMPACTS OF LOCAL CONTENT REQUIREMENTS AND IMPORT QUOTA IN THE INDONESIAN COMMERCIAL EXPLOSIVES INDUSTRY

Rudianto Sitanggang, Yudo AnggoroInstitut Teknologi Bandung

AbstractThe most widely used explosives in the modern era are manufactured by using ammonium nitrate as the main raw material (75 – 95% of the explosives content). On average, the consumption or demand on ammonium nitrate in the Indonesian mining industry is not less than 450,000 tons in a year. Some world major and domestic explosives companies are compete to secure the Indonesian market share. Prior to 2012, most of ammonium nitrate used in the Indonesian commercial explosives industry was sourced from overseas, such as Russia, Ukraine, China, Australia or the country origin of the foreign explosives companies. Since the implementation of local content requirements (LCRs) in the mining industry and import quota, the explosives companies and mining industry were pushed to prioritise the domestic ammonium nitrate. For the government, both policies were aimed to protect and encourage the national industry. However, it was the fact that the domestic ammonium nitrate traded at a higher price compared to the imported ones. The increase in the price of the main raw material consequently increases the price of commercial explosives supplied to the mining industry, thus increase the blasting cost of the mine operation. Some discussions on this situation have been around the stakeholders, mainly the explosives companies and mining industry, but there was no official complaint made to the government so far. The win-win solutions will keep the Indonesian commercial explosives industry benefitted to all stakeholders.

Keywords: ammonium nitrate, business sustainability, explosives, policies, national industry

66


THE EFFECT OF PERCEIVED DESIRABILITY AND PERCEIVED FEASIBILITY TOWARDS ENTREPRENEURIAL INTENTION AMONG STUDENTS OF

INTERNATIONAL PROGRAM

Soepatini, Wafiatun MukharomahUniversitas Muhammadiyah Surakarta

AbstractThe aim of this study is to investigate the effect of perceived desirability and perceived feasibility towards entrepreneurial intention. The research study upon which this research is based has employed descriptive and causal approach. The primary data obtained from thirty- three students of double degree program in UMS by using survey. Purposive sampling method applied for this research. The analysis of the questionnaires found that students perceived career in entrepreneurship is good for them. In line with this, students found high support from parents to start their own business. Although the score for entrepreneurial intention indicate strong commitment for being entrepreneurs, students found themselves not quite capable in handling main aspects of running business. The regression analysis shows that there are positive significant effects of perceived desirability and perceived feasibility on entrepreneurial intention.

Keywords: entrepreneurial intention, perceived desirability, perceived feasibility, students of double degree program.

67


THE STUDY OF THE INFLUENCE OF STRATEGIC FLEXIBILITY AND ENTREPRENEURIAL ORIENTATION ON MARKETING PERFORMANCE, WITH

MEDIATION MARKET ORIENTATION AND LEARNING ORGANIZATION(CASE STUDY IN PHARMACEUTICAL INDUSTRY EAST JAVA INDONESIA)

Hario Adji PamungkasUniversity of Brawijya

AbstractPurpose - Strategic flexibility and Entrepreneurial orientation are supporting the achievement of successful marketing performance, and seeing the mediating effects of market orientation and learning organization in the face of dynamic external challenges. This paper aims to show and conclude aspects that influence marketing performance in the case of the pharmaceutical industry in East Java Indonesia.Design / method / approach - The review of marketing performance is based on paper related to strategic flexibility and entrepreneurial orientation on company performance, especially pharmaceuticals in Indonesia, from science direct, emerald, journal with keyword strategic flexibility, entrepreneurial, market orientation, learning organization and marketing performnaceFinding - From the literature review found that strategic flexibility and entrepreneurial mediation with the market orientation and learning organization affect significant to marketing performance. Marketing performance is a benchmark for the success of company performance. In dealing with environmental changes that always occur and even pressure companies to continue to develop, the influence of strategic flexibility and entrepreneurial selection is crucial in answering challenges.Research limitation / value - This paper presents a variable strategic flexibility and entrepreneurial orientation that has significant aspects in marketing performance, with mediation market orientation and learning organization.

Keywords : strategic flexibility, entrepreneurial orientation, market orientation, learning organization, marketing performance

68


ANALYSIS THE EFFECT OF EFFECTIVE TAX RATE, TUNNELING INCENTIVE, BONUS MECHANISM AND DEBT COVENANT TOWARDS COMPANY’S TRANSFER PRICING

DECISION

Ivani, ASL LindawatiBinus University

AbstractThis study aims to investigate the influence of effective tax rate, tunneling incentive, bonus mechanism and debt covenant towards transfer pricing decision in agriculture and mining companies. The population used is main sector companies listed in Indonesia Stock Exchange period 2014-2016. The sample was taken by purposive sampling and resulted in the final sample of 42 companies. Data were taken from the company's annual report and analyzed by logistic regression analysis tool. The results of the logistic regression show that tunneling incentive has a positive effect on transfer pricing decision. While others variables have no effect on transfer pricing decision. (I)

Keywords: transfer pricing, tunneling incentive, bonus mechanism, debt covenant

69


THE RELATIONSHIP AMONG FINANCIAL LITERACY, FINANCIAL ACCESS, AND BUSINESS PERFORMANCE

Desyetti, Tafdil Husni, Rida Rahim, YurniwatiUniversitas Andalas

AbstractThis study aims to examine the impact of financial literacy and financial access to the business performance of creative industries in West Sumatra. The sample of this study is the craft and fashion industry with a sampling method using purposive sampling technique. Data were collected using questionnaires and analyzed using multiple regression analysis. The study finds that financial literacy is still low and the results of the regression equation test prove that financial literacy has a significant effect on business performance and financial access strengthens the relationship between financial literacy and business performance. This study contributes to the concept of theory about the relationship of financial literacy with financial access and business performance.

Keyword: financial literacy, business performance, financial access, creative industry

70


JOB SEGMENTATION IS A TOOL TO IMPROVE YOUR WORKFORCE PLANNING

Harry Trisna, Yudo AnggoroInstitut Teknologi Bandung

AbstractBusiness environment is changing drastically in these past 10 years. The rise of internet and mobile application are changing the whole business ecosystem. The uncertainty for business becoming higher than before. Therefore the company need to rethink their strategy especially in allocating their resources. Human capital as one of critical aspect within the company need to evolve in order to keep their competitiveness in the Dynamic business environment like now. Investing on right talent and foreseen the future needs of certain skills are now becoming part of human capital job in terms of workforce planning. Job segmentation method is one of the tool that can be used by company to improve their sense in preparing their workforce to face the fierce competition in this dynamic business environment. With Job segmentation we can categorize the job within our company based on their skill value and uniqueness in the company. Each of segmentation will need different different strategy and playing different role in the company strategy.

Introduction: this journal is to introduce the usage of job segmentation framework to improve workforce planning within company.Methods: We used the framework of job segmentation that developed by Lepak and Snell and incorporates it with current business condition using skill-based segmentation approach. Results: based on this writing we hope that we can helps company to know their important job within the organization and develops comprehensive plan that build based on the characteristics of each job segment. Conclusion: The conclusion of this journal is with the implementation of job segmentation we can help company to know their important jobs within the organization and helps them to develop better workforce planning initiatives based on the charateristics of each job.

Keywords: Human Resources; Workforce Planning; Human Capital; Job Segmentation.

71


INTERDEPENDENCE OF DEBT POLICY, DIVIDEND POLICY AND MANAGERIAL OWNERSHIP

Yurniwati, Desyetti, Tafdil Husni, Rida RahimAndalas University

AbstractThis research aimed to find evidence empirical interdependence between debt, dividends and managerial ownership in testing agency theory. Studies was conducted on manufactory companies registered in Indonesia Stock Exchange during period 2010 -2017 by using purposive sampling method. The analysis method used is Equation Simutan with Two stage least square (TSLT). The results showed that managerial ownership and dividend had a negative and significant interdependence, while between managerial ownership and debt policy and between debt policy and dividend policy there was no significant interdependence. The results of this study indicate an alignment effect and do not support the Pecking Order theory. The contribution of this research is to develop agency theory concepts with conditions of concentrated ownership structures.

Keyword: Debt Policy, Divident Policy, Managerial Ownership, Agency Conflict, Pecking Order

72


IMPLEMENTATION LEVEL OF LEAN MANAGEMENT PRINCIPLES IN THIRD PARTY LOGISTICS INDUSTRY

Yeni SumantriUniversitas Brawijaya

AbstractThe implementation of lean principles in Third Party Logistics (TPLs) Industry is needed. The purpose of this study is to evaluate the level of lean implementation in Third Party Logistics Industry. This study applied the survey method to explore the object. The questionnaire is expanded from 4P Model of Liker. The study results show the evaluation of leanness level is necessary for organizations. By using 4P model can provide an opportunity for the improvement of organization. The lean principle application in TPLs in East Java is quite intensive. As many as 35% of the TPLs have implemented it well, 45% of TPLs are quite implementing, and 20% of TPLs are still lacking in application. On a scale of 5, the philosophy criteria got 3.4; process criteria reach 3.58; criteria for people and partners reach 3.2 and problem solving criteria achieve 3.29. It can be concluded that most of the TPLs are more implementing category 2 (process category) compared to the other categories. This means that TPLs prioritize the process as a means to achieve quality results. In order to achieve more generalized results, a more extensive study covering more TPLs are needed. This study gives increased knowledge about lean implementation in term of 14 management principles.

Key words: Third Party Logistics, Lean, Innovation

73


THE ROLE OF GREEN PRODUCT INNOVATION IN EFFORT TO IMPROVE THE CREATIVE INDUSTRY PERFORMANCE

Hadiah FitriyahAirlangga University, Muhammadiyah University of Sidoarjo

Bambang Tjahjadi, Noorlailie SoewarnoAirlangga University

AbstractThe creative batik industry is one of the creative industries in Indonesia which is a condition of Indonesian culture and traditional values. In improving the performance of creative batik industry, innovation is needed. Strategic innovations that can be applied in the creative batik industry is through green product innovation. So the aim of this research is to prove the role of green product innovation in effort to improve the performance of the creative batik industry in East Java. The approach in this research is quantitative research. In this research uses cluster sampling technique. The data analysis method used in this research is to use PLS-SEM by using Smart-PLS Software. The result of this researchis that the green product innovation has an effect on improving the performance of the creative batik industry in East Java.

Keywords: green product innovation, organizational performance, creative industry

74


VECM ANALYSIS BETWEEN BITCOIN, THE VALUE OF CURRENCY AND GOLD INDEX PERIOD 2014-2017

Rony Joyo Negoro Octavianus, Paskalis Kevin SutionoUniversity of Ma Chung

AbstractGold and currency values are derivatives that have long been known and used by many to invest. With the emergence of bitcoin as the cryptocurrency of the world language, the which previously only look to the gold and currency value. Bitcoin offers security and anonymity to its users where there are no customary institutions.The convenience provided by bitcoin has the goal of reducing the cost of third parties, and rapid reduction Compared to the conventional ones. The purpose of this research is to see the difference, influence, and relations between the index of gold, index value of foreign currency, and index of bitcoin period 2014 until 2017. This type of this research is a quantitative research with comparative and correlational approach. The research methods used to test One Way Anova F test to measure different of three variables, the Vector Error Correction Model (VECM) test to measure the which one have more influenced than another, and Granger Causality test to measure one-way relationship or two way relationship between three variables. In the VECM test there are stationary test, optimal lag test, cointegration test, granger causality test, and VECM estimation, The results Showed that there was significant difference between the index of gold, index value of foreign currency, and index of bitcoin. Besides that, influenced no variables between the three of them. There is a one-way or two-way relationship between EUR to GOLD, GOLD to EUR, GOLD to BTC, BTC to EUR, and EUR to BTC.

Keywords: Derivative, Gold Index, Index EUR / USD, Index Bitcoin

75


EFFECT ANALYSIS OF INTELLECTUAL CAPITAL AND INVESTMENT OPPORTUNITY SET TOWARDS RETURN INDEX LQ45 PERIOD 2012-2016

Marcella Giovani Tandio, Sahala ManaluUniversity of Ma Chung

AbstractThis study aims to analyze the influence of intellectual capital calculated from Value Added Intellectual Coefficient (VAIC) to stock return of company LQ45 index period 2012 to 2016 and to analyze influence of investment opportunity set variable consisting of market to book value of asset (MV / BVA) , the market to book value of equity (MV / BVE) and earnings per share per price (EPS / P) to the stock return of LQ45 index period 2012 to 2016. The object of this research is the LQ45 Index of companies listed on the Indonesia Stock Exchange during the period 2012 to 2016 in a row. In this research, writer use sampling technique with purposive sampling which determine sample with certain consideration. The sample used is a company listed in the LQ45 index period 2012 to 2016. The author uses quantitative data whose data is expressed by numbers and shows the value of the variables it represents. Sources of data in this study using secondary data sourced from the financial statements of LQ45 index companies listed on the Indonesia Stock Exchange in 2012 to 2016. The data obtained from the Investment Gallery Indonesia Stock Exchange (GI BEI) Ma Chung University. The results showed that the VAIC variable did not affect the stock return. Furthermore EPS / P has a significant positive effect on stock return, while MV / BE and MV / BVA variables have no effect on stock return.

KeyWords: Intellectual capital, Investment Oppurtunity Set, Stock Return, LQ 45 Index

76


COMPARATIVE ANALYSIS OF INTERNAL RATE OF RETURN BETWEEN LUMP SUM, DOLLAR COST AVERAGE, AND VALUE COST AVERAGE INVESTMENT STRATEGY

ON ISLAMIC MUTUAL FUNDS IN INDONESIA

Rony Joyo Negoro Octavianus, Andika Pratama HadirijantoMa Chung University

AbstractVery important to use investing strategy because of the Fluctuation price in capital market. With the right choice, investing strategy can help investors to the make investing Become Easier and get higher returns. Dollar Cost Average, Average Cost Value, and Lump Sum are common investing strategy used by investors. This research Shariah choose as the object Mutual Fund Mutual Fund Shariah Because never studied before and Shariah Mutual Fund have chance to growth into bigger markets. This research use historical NAV price of data within the period 2013-2017. There are two objectives of this research, first is to analyze the difference Internal Rate of Return value between Lump Sum, Dollar Cost Average, and Value Cost Average on Indonesia Shariah Mutual Fund within 2013-2017 period and the second is to understand the which strategy can get the highest IRR. The conclusion of this research based on hypothesis test using One Way ANOVA, there is no value IRR Significantly difference between Lump Sum, Dollar Cost Average, and Value Cost Average on Indonesia Shariah Mutual Fund within 2013-2017 period. Even According to statistical Significantly, there is no difference but According to investing simulation, Average Cost Value can get the highest IRR value Followed by Dollar Cost Average and the last is Lump Sum.

Keywords: IRR, investment strategy, Dollar Cost Average, Average Cost Value, Lump Sum

77


COMPARATIVE ANALYSIS OF INTEREST RATE LOANS AND INCREASE PRICES AND APARTMENTS IN SURABAYA MALANG 2014-2017

Vicky Saputra, Stevi Jimry Poluan, Rony Joyo Negoro OctavianusMa Chung University of Malang

AbstractThe housing needs increasing because the number of students in Malang and Surabaya making the need for land is increasing. Indonesia's economic growth showed a positive trend Gross Domestic Product (GDP) increased by 5.18 percent. Increasingly high price of land and and the number of vacant tanahyang in big cities like Malang and Surabaya. The purpose of this study was to analyze the differences in the level of mortgage interest rates and rising apartment prices of apartments in the city of Malang and Surabaya in 2014-2017. The variables of this research is the increase in lending rates KPA and rising prices of apartments in the city of Malang and Surabaya. This study is a quantitative study using data analysis techniques used are different t test analysis, Independent sample test. The results showed that there were significant differences for all the different variables, the variable rate of interest rate hikes KPA and variable rate of rise in prices of apartments in the city of Malang and Surabaya. City research results poor rate of increase in mortgage interest rates are significantly different apartments with a percentage increase in the price of apartments and Surabaya rate of increase in lending rates did not differ significantly apartment with a percentage increase in the price of apartments.

Keywords: KPA interest rate, rate of increase in the prices of apartments, Malang and Surabaya.

78


CHILD CONSUMER AND CONSUMPTION: THE STUDY OF MAPPING MODEL AND THE IMPLICATIONS IN RESEARCH OPPORTUNITIES OF CHILD CONSUMER

DECISION MAKING

Anna TriwijayatiUniversity of Ma Chung

AbstractSpecific researchs on children consumer decision-making were still not widely applied. In Indonesia, there has been no research on children consumer decision-making. Studies in other countries about children consumer are also very diverse and partial; have not yet to find a specific model of decision making from children consumer’s perspective. This condition encourages researcher doing the mapping study. The questions of how children make decisions, whether impulsive or planned, or take the other models have not been answered clearly. This article was based on study of consumer behavior research using two kind of research: exploratory qualitative and fenomenology. The aim of study was to map out research on children consumer purchase decision especially on food purchase, and also to find the theory of children consumer decision making quadrant of the map of the study was based on the type of research, themes, objects and subjects. This mapping study provides research opportunities on children consumers and also indicates that researchers are still focusing on behavioral factors. Research themes of children spread on various topics and in particular, research conducted in Indonesia has been the partial studies on Consumer decision-making especially the relationship between consumption and nutrition. Researchs were still dominated by quantitative than qualitative whereas children's behavior are unique and individualistic. There are no qualitative study raised the overall theme of the children consumer decision-making. All models of consumer decision-making model is applied to the consumer in general, do not look at specific consumer segments.This research result that children consumer decision making are unplanned, inconsistent and without deeply product alternative evaluation.

Key words: consumer decision making, children consumer, purchasing, snack

79


EMPIRICAL STUDY AT MADIUN DISTRICT REGIONAL GOVERNMENT BUDGET CORRUPTION CASE

Daniel Sugama Stephanus, Velicia Gabby SidhartaUniversitas Ma Chung

AbstractThis research aims to apply forensic accounting and investigative audit on corruption case of APBD Kabupaten Madiun in 2014. The research method used is descriptive and ex post facto method. The results of the research are (1) the identification of red flags in the form of document anomalies, accounting anomalies, weaknesses of internal control structures, unusual behavior, and complaints/complaints. (2) Profiling is done by analyzing the tasks and functions violated by the perpetrator as Superintendent of Madiun Regency and Budget User. (3) The modus operandi used are misuse of position, borrowing of flags, making transactions and SPJ fictitious, giving money to shut up and bribe money. (4) Corruption committed by Drs. Benny Adiwijaya, M.Si., caused the state financial loss amounting to IDR 1,319,414,065. After the calculation of state financial losses, found difference of IDR 16,968,311 compared with that listed in the file case. The state financial loss in the study was calculated by the method of total loss, the method considered most effective in this case. (5) Follow the money can be prepared based on the data obtained, (6) and the sunburst is prepared according to follow the money.

Keywords: forensic accounting; investigative audit; fraud; corruption; regional governement budget

80


SKILL IMPROVEMENT OF SMALL AND MEDIUM SCALE SNACK INDUSTRY IN SINGOSARI SUB-DISTRICT

Adinda Rahajeng Putri, Felik Sad Windu Wisnu Broto Universitas Ma Chung

AbstractSmall and Medium Industry (SMI) plays a strategic function as a strategic company as a company that producing new goods and the latest techniques in the market through innovation. Skills is a demand in the field of human resources to develop the company in a highly competitive environment, especially in the field of the snack industry with high competitiveness. The purpose of this study is to identify problems and to explore and find efforts to improve the skills of workers in the SMI. This research was conducted in three companies in Singosari District in Malang Kabupaten, such as; Rizqa Tahu, PT Wijaya Kusuma Langgeng, and CV Mie Biting Dua Udang by interviewing 1 person every company. This research is based on a case study approach with qualitative descriptive model and through data collection and interview. Data collection is done by observation, interview, and documentation by showing the result that there are 5 problems that often occur in a company that is work hour, discipline, skill, work motivation, and fulfillment target. The need for skilled labor in the field of materials selection and processing, and mechanical engineering. In addition, as for the problems or constraints in the production process in the company of machinery, electricity, and weather. While efforts to improve skills such as training, rotation, giving holidays, bonus, and motivation.

Keywords: Small and Medium Industry, Skills, Manpower.

81


INFLUENCE OF INTELLECTUAL CAPITAL AND SIZE ON COMPANY PERFORMANCE STUDY IN KOMPAS 100 INDEX FOR THE PERIOD 2011-2013

Sendy CahyadiUniversitas Ma Chung Malang

AbstractThis study aims to test and prove empirically: (1) the effect of intellectual capital on enterprise performance. (2) the effect of size on the performance of the corporate. Theoretically the results of this study are expected to contribute to the knowledge in the field of Accounting Theory, so it is useful for practitioners and academics.The study population is a corporate listed on the Indonesia Stock Exchange with a sample of 300 companies included in the index compass 100 during 2011 to 2013. Sampling using purposive sampling and analysis of research data by multiple linear regression method.Results of this research is to show that: the simultaneous intellectual capital, size significantly affect the performance of the corporate and partially (1) intellectual capital (VAIC) positive effect on performance (ROA) corporate. (2) no evidence of size (Ln Total Asset) positive effect on performance (ROA) corporate.

Keywords: Intellectual Capital, Size, Corporate Performance.

82


BEHAVIORAL FACTOR INFLUENCING INDONESIAN MICRO, SMALL AND MEDIUM (MSME’S) OWNERS DECISION-MAKING IN ADOPTING E-COMMERCE

Elya Kurniawati Ma Chung Malang University

Mario Chrissendy Dian SaputraBina Nusantara University

AbstractThe internet has made tremendous change in various sectors. The internet plays a pivotal role in our daily lives. Business and economic are growing rapidly due to vast and current information from the internet. E-commerce is one of the applications on the internet. This application transcends space, time and space and therefore, makes business transaction between sellers and buyers easier. Because of its convenience, business practitioners, including actors of Micro, Small and Medium Enterprises (MSMEs) in Indonesia use E-commerce. MSME is an individually-owned business or business entity where decision making is dominantly carried out bybusiness owner. The purpose of this study was to describe factors that influenced MSME business owners decisions to use e-commerce. The research method was library study examining theories related to the application of e-commerce and reviewing the findings of previous related. The finding showed that there are 4 (four) factors that influenced MSME owners’ decision-making in using e-commerce, namely value, personality, tendency to take risks and potential uncertainty. The most dominant factor affecting the MSME owners’ decision to adopt was the tendency to take risks.

Keywords: e-commerce, MSME, decision-making

83


SELF-ESTEEM ANALYSIS OF YOUNG WOMEN CONSUMER BASED ON COSMETIC PRODUCT ADVERTISING EXPOSURE

Etsa A. Setiyati, Daniela Anggita K. Br. PurbaUniversitas Ma Chung

AbstractThis research aims to analyze whether there is significant difference in the level of self-esteem among female adolescent before and after exposed to cosmetic produc advertisement. Research was conducted with quantitative approach and experimental design. Primary data was collected through personally administered questionnaire (PAQ) with Rosenberg Self-Esteem Scale (RSES). Laboratory experiment was conducted to 200 samples consist of 100 samples aged 12-16 (early adolescence) and 100 samples aged 17-22 (late adolescence). Samples answered the questionnaire before and after the exposure of cosmetic advertisements. Paired sample t-test was employed for data analysis. Result shows that there is a significant difference in self-esteem level before and after the exposure of cosmetics advertisements. Self-esteem level among female adolescents is lower after the exposure. Self-esteem is also lower more drastically among female in early adolescence age compared to female in late adolescence age. Result indicates that the greater the exposure, the lower the self-esteem level. This research findings implied that cosmetics marketers should give more realistic and more educative content in advertisements.

Keywords: self-esteem, female adolescents, advertising, cosmetics

84


WORK FAMILY CONFLICT ON THE PERFORMANCE OF FEMALE EMPLOYEES

Uki Yonda Asepta, Raymond AdrianUniversitas Ma Chung Malang

AbstractThe increase of female work force in Indonesia is an interesting phenomenon to study. The increase of female work force in career world will result in many consequences for female employee, especially in their household and professional lives. Working women, both as entrepreneurs and as employees working in companies, are prone to various problems due to the double roles that they have to play. Such problems are indicated by the decline of employee's performance at work. This study aims to discover and analyze the impact of work family conflict on the performance of female employees of PT XYZ in Malang Regency, East Java. In this study, the researcher applied the causal associative method with quantitative approach. The sampling in this research was conducted with saturated sampling. The samples used in this research were all female employees in the production department of PT XYZ, totaling 32 individuals. The data was obtained directly from respondents by using questionnaires. This study applied the linear regression analysis to test the impact of work family conflict on the performance of employees. This research discovered that work family conflict has negative and significant impacts on employee's performance.

Keywords: work family conflict, female employee, employee's performance

85


THE EFFECT OF JOB INVOLVEMENT AND CAREER DEVELOPMENT ON EMPLOYEE PERFORMANCE IN SAVINGS AND LOANS COOPERATIVES IN MALANG REGENCY

Lidia Halim, Natasha WahyudiUniversitas Ma Chung

AbstractEmployee is a very important asset for an organization. Employees have an important role for the organization to achieve an organizational goal. In maintaining employee performance to remain productive then an organization needs to pay attention to several factors such as work engagement and career development on employees. This study was purposed to determine the effect of job involvement and career development on employee performance. The method used is associative research with multiple linear regression analysis technique. The data used in this study were the primary data obtained from questionnaires distributed to 63 permanent employees on the three Savings and Loans Cooperatives located in Tumpang District, Malang Regency consist Citra Abadi Cooperative, Makmur Sejati Cooperative and Mitra Jaya Cooperative. Sample collection technique used is census. The results of this study indicate that job involvement significantly influences employee performance and career development significantly influences employee performance. In addition, job involvement has the most dominant effect on employee performance.

Keywords: job involvement, employee performance, career development

86


THE GROWTH OF MIDDLE CLASS: OPPORTUNITIES AND INNOVATION CHALLENGES FOR INDONESIAN SMES

Stefanus Yufra M. TaneoUniversitas Ma Chung

AbstractThe global middle class including Indonesia is increasing in line with development success. Indonesia's middle class is 74 million in 2012 and is predicted to increase to 141 million people in 2020 with the characteristics of young age, living in urban areas, and born in the digital generation. This brings business opportunities and also challenges for SMEs which constitute the largest proportion of businesses in Indonesia. This paper analyzes the opportunities and challenges for innovation faced by SMEs in the face of the growth of the middle class in Indonesia and proposes some agenda ahead. The results of the analysis show that the growth of the middle class provides opportunities for SMEs through expanding both domestic and global markets, changing life styles, and increasing consumption of various types of businesses. But the growth of the middle class brings challenges for SMEs to be able to innovate (products, processes, and business innovations) based on digital to meet the needs of the middle class. Another challenge is the implementation of green economy which has become a world issue. To improve the ability of SMEs to take advantage of business opportunities and face these challenges optimally, cooperation between government, SMEs, universities and related institutions is needed.

Keywords: middle class, SME, millennial generation, business opportunities, innovation challenges.

87


PROTOTYPE PROGRAM:REGIONAL ASSET MANAGEMENT INFORMATION SYSTEM FOR SUPPORTING

ACCRUAL BASED ACCOUNTING REPORTING

Yuswanto, Yudhi KurniawanMa Chung University

AbstractThe study was made with the purpose of designing a software Regional Asset Management Information System to support the accounting accrual-based reporting. The expectations of the design software that can later be used to inventory and evaluation of regional assets. Ease of inventory and evaluation reporting will support accrual-based accounting.The existing process includes recording the procurement of regional assets, usage, maintenance, status of regional assets, and evaluation of regional asset data resulting in accrual-based accounting reporting. The initial data used is derived from a study of regional assets and accrual-based accounting reporting that is made in the form of an analysis document and system requirements. From the initial data, then implemented into the design and information systems software to be used in reporting on the accrual-based accounting.This study activity is emphasized in the documentation needs analysis and software design so that the resulting blue print of the Regional Asset Management Information System is produced. This study can be developed include the implementation of documentation needs analysis and software design into the Regional Asset Management Information System application. At the end of the study it is expected that software can be obtained in the form of Regional Asset Management Information Systems to support accrual based accounting reporting.

Keyword: Management Information System, Regional Assets, Accounting Reporting, Accrual Based

88


CAPITAL MARKET REACTIONS TOWARDSIMPROVEMENT IN UNITED STATES BONDS YIELDS

Wihelmina Dea Kosasih, Asri Rahayu, Tarsisius Renald SugandaUniversitas Ma Chung

AbstractThe aimof this study is to analyze the market and trade movements toward the increase in United States bond yields. Event studyis used as methodologies in this study. 43 companies are used as the sample of the research. The indicators of market reaction used in this research are abnormal return and trading volume activity. The window period used in this study is 7 days. The study found that there are negative significant abnormal return at t+1 period, which is in line with the signaling theory explaining that the event of the increase in United States bond yields is hoped to have the negative information content and also found no change in trading volume activity before and after the event. The result shows that Indonesian capital market gives the reaction toward the increase in United States bond yields, it indicates that the increase in United States bond yields has the information content but still considered as a bad news.

Keywords: abnormal return, trading volume activity, increase in US bond yields, Indonesian capital market

89


THE EVALUATION OF THE ASSESSMENT METHOD OF THE GLOBAL VIRTUAL TEAM (GVT) MODEL (CASE STUDY: NUSANTARA PROJECT )

Liem Gai SinMa Chung University

AbstractThis research presents a theoretical discussion and the evaluation of the assessment method of the Global Virtual Team (GVT) model. The concept of GVT model as explained in this study is defined as a pedagogy for international business (IB) students to enhance their learning. The GVT model is a common practice in the current international business however the effectiveness of the assessment method of GVT model to educate IB students has been not evaluated. Thus, this is very importance to evaluate the effectiveness of the assessment method of the GVT model to develop the IB students’ competency. This research is qualitative research to find out the issues in the assessment of the GVT model and provide the solutions. The findings revealed that the assessment of GVT model has several issues such as lack of industry involvement, lack of objectivity, no channel to report the issue and fairness and also the availability feedback. In this research project the authors recommended several strategies to solve these issues: regular progress report; Anonymity individual evaluation form, well-designed peer- and self- assessment, business representative’s involvement in designing the assessment

Keywords: Global Virtual Team model, higher education, international business, pedagogy, Indonesia

90


THE EFFECT OF INCENTIVES SCHEMES AND TASK ATTRACTIVENESS INTERACTION ON TASK PERFORMANCE

Dian Wijayanti, Daniel Robert BudihardjoUniversitas Ma Chung Malang

AbstractThis study aimed to examine the effectiveness of the financial incentive scheme to improve individual performance. Task attractiveness is added variable to test its influence on individual performance. Financial incentives schemes used in this research are piece rate scheme and quota scheme. The research method is quantitative research using experiment method which is the participants is student of Ma Chung University on semester 2 and semester 4. Total participants are 55, and there are 34 analyzed data. Results from this study showed that performance with incentive using quota scheme is higher than incentive using piece rate scheme. But, from this research, task attractiveness is not proved that affected significantly to performance. But from this research result, proved that financial incentive is significantly affected to person which is assuming the task is not attractive.

Keywords: Financial Incentives, Task Attractiveness, Performance, Piece Rate Scheme, Quota Scheme

91


THE EFFECT OF AUDIT QUALITY AND AUDIT TENURE ON AUDIT LAG REPORT (EMPIRICAL STUDY: PROPERTY COMPANY IN INDONESIA STOCK EXCHANGE 2015-

2017)

Jerico Chandra Makmun, Sendy CahyadiUniversitas Ma Chung Malang

AbstractThis study aims to prove whether there is influence of audit quality and audit tenure toward audit report lag. Audit quality is measured by earnings surprise benchmarks. Tenure audit is measured by the work contract conducted by the Public Accounting Firm with the company. While audit report lag is measured by the length of audit settlement based on the last fiscal year up to the date of audit report. Large audit report lag will affect the decision making that will be used by users. The sample used in this research are 61 property companies listed on the Indonesian stock exchange for three consecutive years in 2015-2017. The multiple regression is used to address the research questions. The results of this study indicate that audit quality and audit tenure does not have an effect toward audit report lag. This is because the audit quality measured by the earnings surprise benchmarks value has a result of completion that is not much different from the audit quality that not measured by earnings surprise benchmark. While tenure audit, which is measured by the duration of employment contract, also does not affect the audit report lag. This is because the tenure audit is limited by Regulation of the Minister of Finance No. 17 / PMK.01 / 2008 regulating the limitation on the duration of assignment of auditors with its client companies, the longer of tenure audit will cause the auditor to lose its independence.

Keywords: Audit Report Lag, Audit Quality, Audit Tenure, Earnings Surprise Benchmarks.

92


THE MEASUREMENT OF LIQUIDITY RISK OF THE RURAL BANKS IN THE FINANCIAL SERVICES AUTHORITY OFFICE

Tarsisius Renald Suganda, Tommy M.H. Hutapea, Dian Wijayanti, Sahala ManaluUniversitas Ma Chung

AbstractThis research is conducted to establish the software related to BPR liquidity risk assessment in the area of the Financial Service Authority (OJK), Malang Office along with assessment stages and corrective actions on the results of measurement of liquidity risk. According to the POJK No. 13/ POJK.03/ 2015 concerning Application of Risk Management for Rural Banks, Chapter IX Article 20, BPRs are required to implement an action plan for risk management implementation in 2019. The five indicators will be used as a basis for determining the amount of liquidity risk namely non-performing loan (NPL), third party funds stability, pasiva bank interface (ABP) and core deposance, loan to deposit ratio (LDR), and cash ratio. The researcher will determine the weight of each indicator and will consider several matters related to the corrective action plan.

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