Public Sector International Conference 2024

COVER AND CONTENTS PROSIDING PSIC 2024

Asqolani — 2024-12-18

Cover and Contents Prosiding Public Sector International Conference Tahun 2024

A STRATEGY FOR STRENGTHENING LOCAL TAXING POWER: CASE STUDY OF JOMBANG DISTRICT

A. Ragil Kuncoro — 2024-12-18

This research aims to find strategies for strengthening local taxing power in local governments. Using a case study approach, the research took the Jombang regional government as the object of study, which has a regional tax ratio of 0.6%, far below the 3% target set by the Ministry of Finance. Content analysis of research data was carried out to identify Strengths, Weaknesses, Opportunities, and Threats aspects in strategy formulation using SWOT analysis. The research results show that the recommended strategy is in quadrant I, namely the Strengths-Opportunities (S-O) combination, which means aggressive-proactive. S-O strategy means utilizing strengths/advantages to take and exploit existing opportunities. Operational steps that can be taken include (1) intensification and extensification; (2) adding tax payment channels; (3) integration/data exchange with other government agencies; (4) intensification of law enforcement cooperation; (5) strengthening regional tax regulations; and (6) improving the quality of human resources.

LESSON LEARNED KPBU SHARIA IMBT SCHEME IN THE JALINTIM SUMATRA

Eri Hariyanto — 2024-12-18

Due to the limited budget funds for infrastructure development, the Government is implementing various financing innovations. One of the innovations in infrastructure financing is cooperation between the government and business entities (KPBU). Along with the increasing of the Islamic financial industry, Islamic banking can contribute to KPBU financing with a sharia scheme. This article presents one of the success stories of KPBU financing from Islamic banking with the Ijarah Mumtahiya Bit Tamlik (IMBT) scheme, namely the Preservation of the Jalintim Sumatra Road. This article aims to explore lessons learned from the sharia-based KPBU financing model so that it can be replicated for financing other regional infrastructure development. By using qualitative research methods, the author explores the KPBU financing model with a sharia scheme to obtain lessons learned from the financing model. Synergy between the regional government and the Project Cooperation Manager (PJPK) is one of the success key in project preparation. Socialization related to sharia scheme KPBU financing still need to be improved. KPBU the Availability Payment (AP) model is more suitable to use financing with the IMBT contract.

RETHINKING RETIREMENT: IMPLICATIONS OF EXTENDED PENSION STATUTORY AGE ON ELDERLY HEALTH AND LABOR DYNAMICS IN INDONESIA

David Syam Budi Bakroh — 2024-12-18

This study examines Indonesia's current policy of increasing the Pension Statutory Age (PSA), focusing on its potential impact on labour dynamics, particularly health, fairness, and inclusivity. Utilising quantitative methods and multiple regression analysis on data from Indonesia's National Labor Force Survey (SAKERNAS) for Q1 2022, it is found that age-based decisions do not significantly affect the health of elderly workers, whether they continue working post-retirement or fall into pension-eligible or precarious employee categories. However, challenges include establishing direct causation, incomplete consideration of the COVID-19 pandemic's influence, and a limited understanding of seniors' motivations for working beyond the retirement age. Practical implications include the necessity for clear retirement age guidelines, strengthened social safety nets for vulnerable seniors, and further extension of Indonesia's retirement age to 65. This study provides a scientific basis for understanding the extended work life of older adults in Indonesia, offering original insights into the impact of extended working life on senior workers' health.

POTENTIAL ROLE OF SHARIA FINANCING WITH COMMUNITY DRIVEN DEVELOPMENT SCHEME IN SUPPORTING STATE FINANCE

Raditya Hendra Pratama — 2024-12-18

Sharia financing instruments especially waqf assets play major keys in developing the sharia finance role in society. The potential of integrating sharia finance along with state finance in the development programs has been remarkably discussed in previous research. This research aims to find the potential of intensifying the role of the waqf financing scheme in the state budget financing using the Community Driven Development (CDD) scheme which can contribute the state budget financing and also encourage the accuracy of the state budget spending targets by maximizing the role of social control in diminishing the possibility of corruption. This study was carried out using triangulation which combines literature studies and interviews with sources to objectively look at the opportunity of waqf in contributing to the state budget financing by utilizing Fogg's Behavior Model aspects to analyze the Indonesian Muslim community behavior. On the other hand, the state budget deficit requires broad and sustainable financing support to accelerate national development. The results of this research provide conclusions and recommendations that waqf has excessive potential to contribute to state budget financing with the use of the CDD design.

DOING RIGHT ON JOINT VOE-FINANCIAL INSTITUTION TAXATION: HOW GOOD IS YOUR ACCOUNTING?

Raynal Yasni — 2024-12-18

Tax Compliance of Joint Village Owned Enterprise-Financial Institution (Joint VoE-FI) requires assistance considering that this institution has been just established for about two years as a mandate from Government Regulation (PP) Number 11 of 2021. There is a very significant transformation in management of Joint VoE-FI from a general government into a business entity, and consequently it will face fiscal risk in the future. This research aims to analyze how this institution completes tax obligations under limited human resources and how efforts are made to maintain its tax compliance. The narrative research approach, as explained by Elliott (2005), is used to organize a sequence of field events into a whole so that the significance of each event can be understood through its relation to that whole, which is supported by direct observation data on objects, interviews, and document reviews. The research results show that assistance for business entities in fulfilling tax obligations is necessary, considering that human resources in villages still need to be improved.

BUDGET FOR INDIGENOUS PEOPLE: CASE STUDY OF THE INDONESIAN BADUY TRIBE

Joko Sumantri — 2024-12-18

We believe that the budget can improve the welfare of communities including indigenous tribes. However, the perspective of welfare in each community can be different. The Indonesian Baduy tribe, for example, only wants to live and maintain their natural environment well. They prohibit the development of modern infrastructure in their area. With a qualitative study, we interviewed and observed the Baduy community and environment. The Baduy stated that the modern budget system with complicated accountability and documentation is not suitable for them. Therefore, they have rejected the government's aid budget since 2019. Alternative budgeting techniques are needed to help their problems. The form of a budget tagging scheme in the local government budget of the nearest area that has a positive economic impact on certain communities (budget tagging impacts specific communities), in this case, Baduy, can be a solution for them in getting the benefits of the state budget.

Keywords: Complicated Accountability, Indonesian Baduy Tribe, lternative Budgeting, Budget Tagging Impacts

ASSESSING INDONESIA’S STATE-OWNED ENTERPRISES PAYMENT CAPABILITIES USING ADVANCED MACHINE LEARNING MODELS

Windraty Ariane Siallagan — 2024-12-18

This study aims to provide a foundation for the Indonesian government and State-Owned Enterprises (SOEs) to develop effective mitigation strategies to uphold SOE accountability. Using a quantitative approach, the research analyzes the financial ratios of SOEs to predict their payment capabilities through various machine learning models. With SOE assets surpassing half of Indonesia's GDP in 2022, these enterprises are pivotal in achieving economic growth and the eighth Sustainable Development Goal (SDG). The Ministry of Finance (MoF) of Indonesia, responsible for maintaining SOE accountability, invests in multiple SOEs using funds from subsidiary loan agreements (SLA). The confidential data, comprising SOE financial statements received by the MoF, showed that the Random Forest model with 100 decision trees delivered the highest accuracy in 10-fold cross-validation and performance evaluation. The most significant variables identified were the current ratio, net profit margin, and debt-to-asset ratio. As a recommendation, regular monitoring should be implemented, allowing SOEs and the MoF to collaboratively discuss and determine the best strategies for improving financial health and accountability.

THE IMPACT OF UNIVERSAL HEALTH COVERAGE ON HEALTHCARE UTILISATION: THE CASE OF INDONESIA

Eko Sumando — 2024-12-18

Since 2014, Indonesia’s implemented Universal Health Coverage (UHC) scheme known as the “Jaminan Kesehatan Nasional (JKN)” which is designed to support its entire population by the end of 2019. If successful, the JKN will be the biggest single-payer system in the world. This study evaluates the JKN impact on the probability and the frequency of health care utilization for outpatient and inpatient care using Susenas Data. Furthermore, it examines the heterogeneity of the JKN effect on individuals living in an urban or rural area, different regions and levels of household expenditure, and the availability of healthcare facilities. The result shows improvement in equality of access of care outside of Java and Eastern Part of Indonesia. However, there is still an inequality impact of JKN in the socio-economic status and healthcare facilities' availability.

NAVIGATING GROWTH AND SUSTAINABILITY: A REGIONAL ECONOMIC ANALYSIS OF WEST NUSA TENGGARA FROM 2018-2023

Qurrata A'yun — 2024-12-18

This study examines the dynamics of regional economic development in the West Nusa Tenggara Province (NTB) with a focus on the transition of key sectors and the integration of economic development with environmental sustainability. The main goal of this research is to identify leading and potential sectors in NTB that can support the regional economy sustainably using Location Quotient (LQ), Dynamic Location Quotient (DLQ), and Klassen Typology analysis methods. The analysis reveals that the agricultural sector, especially corn production, has significant potential but is accompanied by the dilemma of land use which negatively impacts the environment, such as increased flood risks due to the conversion of forests into agricultural land. The results of this study can serve as a basis for formulating comprehensive economic development policies and strategies that focus not only on economic growth but also on environmental sustainability and resilience aspects.

Keywords: “Regional Economics”, “Leading Sector Analysis”, “Regional Development”.

JEL classification: R11, R15, R58

THE IMPACT ANALYSIS OF MICROFINANCE IN INDONESIA

Saiful Islam — 2024-12-18

This study aims to analyze the impact of Ultra Micro Finance (UMi), one of Indonesia's microfinance programs, in improving the welfare of debtors. The data is collected from the survey which have been carried out by Treasury regional offices based on PER-25/PB/2018, which has amended by PER-6/PB/2022. The research method was carried out with non-parametric test use wilcoxon signed rank test and mann-whitney U test. The results of the wilcoxon signed rank test showed that in the first phase of the survey there was a significant increase in NKP but not in NKU neither NKD, however in the second survey there was a significant and positive increase in NKP and NKD, but not in NKP. Mann-whitney U tests indicates that the distribution of UMi in 2020 better than 2019, however the contributor from that increase still from NKP. These results confirmed to the previous research which stated that micro financing borrowers tend to spend their profits for personal needs rather than develops their businesses. The UMi programs would have a greater impact if it was accompanied by others government programs.

ACCOUNTABILITY IN PUBLIC SECTOR SUSTAINABILITY REPORT

Novita Nugraheni — 2024-12-18

The regulations pertaining to the execution of social and environmental responsibility, also known as sustainability, primarily govern the corporate sector. When it comes to implementing public accountability, the government has a responsibility to furnish information in order to meet the public's entitlements, specifically the entitlement to knowledge, the entitlement to be informed, and the entitlement to have their desires acknowledged. Mostly, sustainability reports was made by corporates company but in this research, we examine accountability in public sector sustainability report. Stakeholder’s Theory and Legitimacy Theory was using in this research. This research using descriptive analysis. This article is a conceptual piece that explores the relationship between accountability and sustainability reporting in the public sector. The focus of this study is the 2020 BPK Sustainability Report. The sustainability report encompasses several principal. The significance of the research findings. The BPK has revealed all of the principles outlined in the GRI Standards.

BALANCING RISK AND INCENTIVES: INTEGRATING MRG INTO FIXED PAYMENT MECHANISMS ON HOSPITAL PPP STRUCTURES

Anton Abdul Fatah — 2024-12-18

For public-private partnerships (PPPs) to succeed, an effective transfer of risk from the government to the private sector is crucial. This risk transfer ensures high-quality and cost-effective service delivery. However, it must be balanced to avoid overburdening private investors, which could deter their participation in PPP projects. From a public finance perspective, this balance is essential to protect the public interest while fostering competitive procurement. Governments use tools like minimum revenue guarantees (MRGs) to support PPPs by mitigating operating revenue risks for private investors. This conceptual research offers insights to improve the design and implementation of PPPs in public hospital projects, with a focus on Indonesia. The study examines the adaptation of MRGs within Fixed Payment mechanisms in hospital PPPs. It aims to explore how integrating MRG principles into Fixed Payment structures can enhance financial sustainability and incentivize private sector engagement in healthcare infrastructure. The paper provides a comparative analysis of Fixed Payment and Availability Payment models, highlighting their similarities, differences, advantages of Fixed Payment, and the role of the Reserve Fund Account in Fixed Payment models.

OPTIMIZATION OF REGIONAL ORIGINAL INCOME FROM THE LOCAL TAXES AND RETRIBUTIONS (PDRD) SECTOR IN INDONESIA

Emir Surya Rahmajati — 2024-12-18

The implementation of the regional autonomy system in Indonesia has not proceeded according to its objectives. More than 88% of local governments cannot be independent and still depend on transfer funds. Therefore, a strategy is needed to optimize local revenue. This research is qualitative research with a case study approach. The results of this research are a summary of what we have done in more than 20 districts/cities on the island of Java from 2018 to 2023. The results of this research are divided into three parts, namely the dynamics of regulations related to PDRD, problems faced by local governments in collecting PDRD, as well as the solutions/optimizations we offer to overcome these problems. There are four internal factors and 7 external factors that cause suboptimal regional original income. There is a need for regional government participation with the community to improve the regional economy.

THE EFFECT OF CARBON EMISSION DISCLOSURE QUALITY ON ENTERPRISE VALUE

Lovely Devina Putri Pangalila — 2024-12-18

Global warming is a worldwide issue due to greenhouse gas emissions as an indicator of environmental degradation. In 2015, Indonesia ranked as the world's fourth-largest emitter of greenhouse gases (Carbon Brief, 2019). Most emissions originated from deforestation, large-scale peatland fires, and the burning of fossil fuels for energy. The Indonesian government signed the Paris Agreement to the United Nations Framework Convention on Climate Change on April 22, 2016, aiming to reduce carbon emissions. Indonesia committed to lowering greenhouse gas emissions, increasing forest cover, and reducing deforestation rates under this agreement. This research aims to empirically examine the impact of carbon information disclosure quality on enterprise value. Utilizing secondary data from annual reports, sustainability reports, Yahoo Finance, and Bank Indonesia, the study measures carbon information disclosure quality with the evaluation index system developed by Cao et al. (2022). It evaluates enterprise value using Tobin's Q ratio. Control variables include company size, listing age, company growth, and operation ability. A purposive sampling method was employed to select a sample of 174 data, and the hypothesis was tested using simple linear regression analysis. The findings reveal that the quality of carbon information disclosure does not significantly affect enterprise value.

PUBLIC SERVICE AGENCY’S EXPENDITURE ACCOUNTING AND FINANCIAL REPORTING ADJUSTMENT TO ENHANCE FINANCIAL PERFORMANCE MEASUREMENT AND COST CONTROL

Cahya Wisnu Ardi — 2024-12-18

In providing services to the public, the Public Service Agency (Badan Layanan Umum, BLU) adheres to the principles of efficiency and productivity. BLU is considered efficient if it can utilize its resources effectively to deliver its services. In this context, to ascertain the level of service efficiency, the financial statements of BLU, which have been prepared in accordance with Regulation PMK 220/PMK.05/2016, are expected to present information that can be utilized to measure the efficiency of BLU's services. However, in practice, BLU's financial statements have not yet been able to accurately reflect the costs incurred in service delivery or the costs associated with supporting services. Through this research, the author aims to develop a concept for adjusting the accounting and reporting of BLU's expenditures. The study is conducted using a qualitative descriptive method with a focus on literature review and case studies. The data analysis technique employs gap analysis. The results of the research will provide insights into the cost structure of BLU's services, enabling BLU to more adequately measure its efficiency and productivity levels.

EVALUATION OF PUBLIC PRIVATE PARTNERSHIP: LESSONS LEARNED FROM PRIVATE FINANCE INITIATIVE IMPLEMENTATION IN THE UNITED KINGDOM

Maman Abdurohman — 2024-12-18

The Private Finance Initiative (PFI) was launched in the early 1990s in the UK to transition the government from owning and managing public sector projects to purchasing services from private investors. PFI projects, ranging from infrastructure like roads and prisons to schools and hospitals, involve private consortia overseeing the design, construction, financing, and operation of public infrastructure, with the public sector leasing these assets over 25-30 years. PFI gained traction, peaking in 2008/9, with significant financial implications for taxpayers. Proponents argue PFI enabled greater investment and efficiency through private sector innovation and better risk management. However, critics highlight higher costs and inflexibility compared to traditional procurement, questioning the actual risk transfer to the private sector. This paper evaluates PFI’s benefits for government, including increased capital investment and cost certainty, and scrutinizes the effectiveness of risk transfer. Despite its potential advantages, the ambiguity in risk valuation and off-balance-sheet financing raises concerns about the genuine economic benefits and long-term fiscal impacts of PFI projects.

Keywords: Private Finance Initiative, risk transfer, off-balance sheet financing

A SCOPING REVIEW: UNDERSTANDING THE POLITICISATION OF SENIOR CIVIL SERVANTS (SCSS) TURNOVER IN DEVELOPED COUNTRIES

Ichsani Fahrudin — 2024-12-18

Senior civil servants (SCSs) are high-level bureaucrats who navigate the intertwining bureaucracy and political stakeholders that shape the political-administrative relationship. One of the recent challenges is a strong indication of "democratic backsliding," which creates a new point of equilibrium between the political and administrative constellations. The complexity and dynamic arrangement in developed nations may provide valuable insights and promising avenues for exploring the politicization of SCSs in developing countries, particularly in Indonesia. The study will examine the politicization of SCSs turnover within elite administrations in developed countries. A scoping review uncovered ten articles with empirical findings that indicate the political-administrative relationships among developed nations from macro, meso, and micro perspectives. The politicization of SCS turnover has been the subject of scrutiny and debate, with various factors such as actors, institutions, procedures, networks, and path dependency being examined in relation to different sources, forms, times, intentions, and locations.

OPPORTUNITIES AND CHALLENGES MAPPING FOR ACHIEVING ENERGY TRANSITION

Muhammad Rizky — 2024-12-18

The climate change phenomena urge the government to develop policies that can anticipate catastrophic losses from climate change, one of which is to reduce emissions in the energy industry, which requires huge of money. This study examines Indonesia's energy transition program, particularly in the power sector, as well as financing methods that primarily use blended finance. This study will then examine the prospects and constraints for financing energy transition program in Indonesia. This study employs a qualitative single case study method, using primary data sources from interviews with policymakers, policy implementers, and academics on the topic of energy transition financing. This study produces mappings of finance opportunities and challenges when Indonesia adopts an energy transition program. This study is expected to contribute to policy considerations for both the government and business sectors involved in implementing Indonesia's energy transition program.

NAVIGATING THE ENVIRONMENT-ECONOMY DILEMMA IN DEVELOPPING COUNTRY: A COMPREHENSIVE CLIMATE FINANCE MECHANISMS FOR ENHANCING THE SUSTAINABILITY IN MANDALIKA SEZ

Tasdik Mahandito — 2024-12-18

This study investigates the challenges faced by developing countries amid the current climate and energy crises, balanced against the imperative for economic growth. Utilizing qualitative methods, the research analyzes secondary literature from scholarly articles and policy documents, and conducts content analysis of various reports concerning the Mandalika Special Economic Zone (SEZ), chosen for its ecotourism-oriented design. Findings indicate that Mandalika SEZ meets the criteria for climate financing; however, significant issues such as funding shortages and trust deficits were identified. This study proposes a novel climate finance scheme promoting collaboration among stakeholders, including BPDLH, PLN, ITDC, SMI, DJP, philanthropic organizations, and international institutions. The scheme aims to collect and manage climate finance through green bonds, CSR funds, taxes, and grants. The proposal features Rinonce EcoVenture, a smart application, required by potential funders and other stakeholders to assist in monitoring and controlling the project and the associated funds. The study concludes that a robust climate finance scheme, supported by the smart application, can significantly enhance the project success and promote sustainable development, providing solution to the dilemma faced by developing countries.

Keywords: climate finance, smart technology, sustainable development, Mandalika SEZ

OPPORTUNITIES AND CHALLENGES OF IMPLEMENTING ASSET-BACKED SECURITIES IN INDONESIA

Winda Prajaningtyas — 2024-12-18

The Indonesia government's efforts to maximize infrastructure development are currently hampered by budget constraints. To accelerate infrastructure development with limited resources, creative financing methods are needed. This research aims to explain the potential and challenges of implementing asset-backed securities (ABS) as one of the alternative infrastructure financing methods in Indonesia. This research was conducted using a qualitative method. The data used in this research was derived from primary data obtained through interviews and secondary data This research is also limited to the application of asset securitization for the financing of infrastructure projects as part of state-owned enterprise assignments. The result of the research shows that asset-backed securities can be used as an alternative financing method for infrastructure development, including infrastructure projects carried out as part of state-owned enterprise assignments. This research is expected to contribute to regulators, originators, and investors to enhance better implementation of asset securitization in Indonesia.

INVOLVEMENT AND IMPACT OF EMISSIONS CO2 FOR THE SUSTAINABILITY OF GREEN ECONOMY IN INDONESIA: ARDL APPROACH

Yudhi Prasetiyo — 2024-12-18

Indonesia is considered one of the developing countries with the highest carbon emissions in Asia. Indonesia faces significant pressure to limit its emissions. However, the Indonesian government has made major efforts to reduce emissions and set low-carbon economy goals. This research was conducted to determine the factors that influence CO2 emissions and to find out how green economy financing and sustainable economic development function to measure carbon intensity. This research uses four indicators to look at factors that influence carbon emissions (Co2), namely Gross Domestic Product (GDP), Foreign Direct Investment (FDI), Gross National Expenditure (GNE), and population density. The data used in this research are all industrial sectors in Indonesia spanning the years 1990 - 2022. The analytical methods used are Autoregressive Distributed Lag (ARDL) Approach. The findings show that the DEN variable has a positive and significant influence on CO2 emissions in both the long and short term. The GDP variable shows a negative and significant effect on CO2 in the long term, but the FDI and GNE variables do not show a significant effect on CO2 emissions in the long term.

ENVIRONMENTAL FINANCE: A CASE STUDY OF FCPF-CF IN EAST KALIMANTAN

Dimas Priyambudhi — 2024-12-18

This study provides an in-depth examination of the financial processes within the Forest Carbon Partnership Facility's Carbon Fund (FCPF-CF) in East Kalimantan, Indonesia. By conducting a descriptive analysis of existing literature and interviewing key stakeholders, the study identifies the mechanisms involved in sourcing, allocating, and disbursing funds. It also illuminates significant challenges, including the absence of a carbon trading market, governance and accountability issues, dynamic policy changes, reporting requirements, and a lack of local government understanding of the FCPF program. These findings enrich the literature on environmental conservation initiatives by offering insights into the adaptations of financial mechanisms in FCPF-CF East Kalimantan. The study's outcomes provide valuable lessons for the development and implementation of similar programs worldwide, contributing to the broader field of environmental finance.

FINANCIAL MANAGEMENT STRATEGY OF REGIONAL PUBLIC SERVICE AGENCY (BLUD) TO INCREASE QUALITY IN HEALTH SERVICES CASE STUDY WEST LANGSA PUBLIC HEALTH CENTER (PUSKESMAS)

Hans Jodi Anggoro — 2024-12-18

The Regional Public Service Agency is one of the agencies within the regional government which was formed to provide services to the community. In its activities, Regional Public Service Bodies are given flexibility in managing their finances. The flexibility provided is intended as a facility provided by the government so that Regional Public Service Bodies can independently meet the needs of the community effectively and efficiently. One of the Regional Public Service Agencies that is often found and has direct contact with the community is in the Health Sector, one of which is the Community Health Center. The problem formulated in this study is that Puskesmas services to the general public are often found to be not optimal and it is felt that financial management at Puskesmas is still not transparent and accountable. The aim of this study is to elaborate on the puskesma's strategy as a BLUD in improving basic health services to the community and increasing accountability and transparency in financial management. This study uses qualitative and quantitative analysis techniques using the SWOT Analysis method. The results of the study found that BLUD status at Puskesmas can improve the quality of community services and increase accountability and tranparency of the financial statements.

REDESIGN OF THE OFFICIAL TRAVEL EXPENDITURE SYSTEM USING BUSINESS PROCESS IMPROVEMENT

Afrizal Riswandha Akbar — 2024-12-18

The BPK RI still reports the findings of manipulation of official travel expenditure in 2023. The audit reports disclose that findings worth Rp39 billion are related to the overpayment, fictitious or manipulation of travel documents. Those findings indicate the weakness of internal control in the system. The research discusses how to redesign the official travel system which can mitigate the potential risks of inefficiency and fraud effectively. The qualitative method is applied and business process improvement adopted as research strategy. Data collected from interviews, visits, observation, and documentary. The research is conducted in XYZ, based on the research there are potential fraud and inefficiency in the form of manipulation of documents and processes, lack of information transparency etc. Those risks appear, since the current system of official travel does not adopt an integrated system of expenditure. The results mandate the government should integrate the official travel system with the other systems, including banking sectors, transportation and accomodation providers, and government expenditure system. The research results have implications for improving control through end-to-end processes by system.

ANALYSIS OF THE INFLUENCE OF PER CAPITA INCOME, AGRICULTURE, INDUSTRY, FOREIGN DIRECT INVESTMENT, HUMAN DEVELOPMENT INDEX, AND CORRUPTION ON TAX REVENUE IN INDONESIA: A CASE STUDY AT THE REGIONAL OFFICE OF THE DIRECTORATE GENERAL OF TAXES WITH A WORKING A

Vissia Dewi Haptari — 2024-12-18

Tax revenue is the main source of state revenue in Indonesia. Indonesia's tax revenue in terms of tax ratio is still not optimal when compared to Southeast Asian countries and other countries in general. This study aims to examine the effect of per capita income, agriculture, industry, foreign direct investment, human development index, and corruption on tax revenue at the Regional Office of the Directorate General of Taxes with a working area of ??one province from 2013-2022. The selection of research objects was carried out using purposive sampling technique and 100 observations were obtained. The sample selection was carried out by eliminating provinces that did not have a Regional Office of the DJP with a working area of ??only one or part of the province. This study uses quantitative methods with panel data regression with the Correlated Panels Corrected Standard Errors regression model. The results showed that (1) per capita income has a positive effect on tax revenue, (2) agriculture has no effect on tax revenue, (3) industry has a positive effect on tax revenue, (4) foreign direct investment has a positive effect on tax revenue, (5) human development index has a positive effect on tax revenue, and (6) corruption has no effect on tax revenue.

SMALL-SCALE PUBLIC-PRIVATE PARTNERSHIP: CHALLENGES IN PROJECT ASPECTS AND CONTEXTUAL CONDITIONS IN ACHIEVING REGIONAL INFRASTRUCTURE DEVELOPMENT

Lestari Kurniawati — 2024-12-18

Local, small-scale PPP projects are relatively closer to meet end-user needs. However, the project in the regions face challenges in terms of determining project costs and coverage and also managing political risks due to the vulnerability of local leadership patterns. Viewed from the project aspect, the larger project costs as the wider project scope proposed by the government and project complexity technicalities are obstacles to project success. The Madiun Street Light project proves the evidence. It has a lower cost, complexity and project scope than the Medan Street Light project. The condition makes the Madiun project complete the project in 2023, 3 years from project initiation. Meanwhile, Medan City project, which started preparation in 2015, stuck in the preparation stage. Furthermore, the project contextual conditions namely political factors are the main concern of the Madiun government. The Regent of Madiun is strongly committed to pushing the project to reach commercial operations before the change of regional leadership. This is different from the Medan City, which had its preparation stopped in 2018, so there is potential for policy changes when regional leaders are replaced. Moreover, non-political factors such as the existence of the Central-Local Financial Relation Law also support the success of the Madiun project, as one of the driving forces for accelerating the Wilis Region as stipulated in Presidential Decree Number 80 of 2019. In its development, the stipulation of Bappenas Ministerial Regulation Number 2 of 2023, opens up wider space for regional governments to use the PPP scheme for small-scale infrastructure development projects.

PERCEPTIONS OF FAIRNESS AND CAPABILITY AS CHALLENGES TO IMPLEMENTING FULL COST RECOVERY ON DRINKING WATER TARIFFS

Wendy Kenafiana Assanti — 2024-12-18

Implementation of the full cost recovery policy in determining drinking water tariffs still faces challenges due to perceptions of fairness and capabilities in society. This study examines how these two perceptions become challenges and how to overcome them. Through qualitative analysis of secondary data, this study found that the water tariffs were perceived as unfair when compared with the services received because water continuity and quality problems had not been resolved. The perception of capability drove tariffs to be determined only based on consumers’ economic capacity without considering operational cost requirements. These two perceptions challenge the achievement of an independent and sustainable supply of safe drinking water. Full cost recovery should be applied so that tariffs can cover funding needs for improving services, including maintaining facilities and water quality, but consumers demand improved services first and insist on the lowest prices. A change in behavior mindset is needed for tariffs to be seen as an investment rather than an economic burden. Therefore, the importance of quality drinking water for human life needs to be understood before anything else.

CROWDFUNDING IN INDONESIA, A SYSTEMATIC LITERATURE REVIEW

Joko Sustiyo — 2024-12-18

Abstract

Purpose – This study aims to analyse and categorise the development of crowdfunding in Indonesia since 2012 to 2024 answering the question, " How is the literature on crowdfunding evolved in the context of Indonesia?".

Design/methodology/approach – This study applied the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol to search, screen, extract and synthesise a total of 100 articles indexed by EBSCOhost, ProQuest, ScienceDirect, Scopus and Web of Science. We examined the research questions of the articles, described the research methodology, synthesised the findings, outlined implications and discussed future research possibilities.

Findings – Crowdfunding in Indonesia has become one of the alternatives for business funding. All types of crowdfunding (donations, rewards, loans, and equity) have been researched in Indonesia. Furthermore, we found several factors driving the success of project fundraising from the side of fund recipients, borrowers, investors, lenders, or donors. In addition, several proposed crowdfunding models have also been researched, including crowdfunding based on Islamic religious principles.

THE IMPACT OF THE ASEAN-CHINA FREE TRADE AREA ON INDONESIA'S EXPORT VOLUME: AN ANALYSIS OF TRADE DYNAMICS

Sri Murwani — 2024-12-18

The ASEAN-China Free Trade Area (ACFTA), established in 2002, seeks to facilitate trade in goods, services, and investments between ASEAN and China. Studies indicate varied effects, with some sectors experiencing increased exports, like textiles and manufacturing, while others, such as cocoa and corn, witness declines. China benefits from ACFTA with a surge in trade surplus, worker wages, and comparative advantages. Conversely, Indonesia faces challenges like reduced import volume and a worsening trade balance. Further exploration of ACFTA's implications, particularly in potential collaborative sectors, is needed. Additionally, GDP growth in both origin and destination countries positively influences Indonesia's exports, aligning with economic theory predicting heightened demand with rising income. Moreover, an appreciation of Indonesia's exchange rate with destination countries correlates with increased export volume. Policymakers should prioritize enhancing ACFTA cooperation to boost Indonesia’s export performance, expanding global market access, and stimulating domestic production of export goods.

ANALYSIS OF THE IMPACT OF THE VILLAGE FUND PROGRAM AND FACTORS AFFECTING POVERTY ON JAVA

Sukarno — 2024-12-18

ABSTRACT

This research aims to analyze the impact of the Village Fund Program and the factors that influence poverty on the island of Java, as well as formulate recommendations for programs and activities for the revitalization of the rural economy. The research method used is a quantitative research method, panel data regression analysis from data seconds. The research results show that Village Funds, Provincial Minimum Wages, GRDP, and HDI have a significant effect on poverty in each province on the island of Java with a sig value = 0.0000 <0.05. The GRDP variable makes the greatest contribution to reducing poverty, but the Minimum Wage variable negatively affects poverty. The large GDP contribution shows that the results of development in the economic sector in sufficient and appropriate amounts are very important. The government is expected to be able to encourage the realization of an increase in GRDP.

ATTITUDE, IMPLEMENTATION QUALITY AND ACCOUNTING APPLICATION ASSISTANCE IN MSME

Soffan Marsus — 2024-12-18

This study investigates the effects of IT support on micro, small, and medium enterprises (MSME) owners, particularly focusing on the assistance provided in using accounting software. The concept of IT assistance, akin to business incubation in MSME development literature. The study aims to address practical issues such as the challenges MSMEs face in adopting transaction recording applications, their interest in such applications, and the difficulties in developing accounting information systems. Theoretical aspects explore the influence of management attitudes and styles on IT implementation following the propositions of Winston and Dologite (2002). Using a qualitative, interpretive case study approach, this research concludes that MSMEs, particularly beginners, face significant challenges in financing, skills acquisition, and infrastructure. However, they exhibit a strong positive interest in IT adoption, which is crucial for their survival and development. The research also reveals that the adoption of simple accounting applications, effectively addresses these challenges. The study further finds that MSME owners generally have a positive attitude towards IT. The need for substantial support in IT implementation is highlighted, especially for lower-level MSMEs.

THE EFFECT OF TRANSPARENCY, PARTICIPATION, EVALUATION, AND RESPONSIVENESS ON ACCOUNTABILITY IN VILLAGE FUND MANAGEMENT IN BELU REGENCY

I Gede Made Artha Dharmakarja — 2024-12-18

The Indonesian government provides Village Funds annually to overcome poverty, but villages have difficulty establishing accountability. This research aims to determine the factors that influence the accountability of village financial reports. This research measures the influence of the independent variables transparency, community participation, evaluation, and responsiveness on accountability in village fund management. This research uses quantitative methods. The type of data collected is primary data from questionnaires filled out by respondents. Respondents were village treasurers in Belu Regency who filled out questionnaires on a Likert scale. Data analysis uses the SmartPLS application, to predict the relationship between variables and explain the relationship between latent variables. Based on testing four independent variables, only participation, evaluation, and responsibility variables have a significant positive effect on the accountability of village financial reports. Meanwhile, the transparency variable has a negative effect on the accountability of village financial reports. The accountability of village financial reports only meets the legality criteria as fulfilling the administrative requirements for obtaining the next stage of village funds.

THE INTERNAL CONTROL COMMITTEE OF HEALTH CENTERS IN THE CITY OF SOUTH TANGERANG

Ayu Kurnia Natasya — 2024-12-18

This final project discusses the effectiveness of the Health Centers Internal Control Committee in the city of South Tangerang to ensure accountability and help management achieve organizational goals. The Health Centers in South Tangerang City as a lokal public service agency experiences obstacles in the formation and implementation of the internal control committtee, in the management letter for the 2022 period it is stated that Human Resources (HR) in accounting and finance at the Health Centers have an unqualified educational background. This Final Project Report was prepared to evaluate the effectiveness of the implementation of the existing internal control unit and identify potential improvements to improve the efficiency, effectiveness, and operational control of the Health Centers. The methods used include literature study and direct observation. The results of the Final Project Report show that the implementation and establishment of an Internal Control Committee to carry out the control function at the Health Centers is hampered by several factors, namely, lack of budget to recruit competent human resources and experiencing a budget deficit caused by the free health service policy that was approved in 2015.

INTERNAL CONTROL OVER FINANCIAL REPORTING (ICOFR) AT THE HAJJ AND FINANCIAL MANAGEMENT AGENCY

Syanni Yustiani — 2024-12-18

This research analyzes the design and implementation of internal controls for preparing financial reports at the BPKH using COSO as a framework. This study employs the Interpretivism Research Paradigm, specifically utilizing a qualitative technique with thematic coding analysis. This study utilises primary data collected through interviews with financial management functions, internal supervisors, and employees inside the BPKH environment and also BPK RI’s auditor team of BPKH financial statement TA 2020 dan TA 2021. This study utilises secondary data including BPKH financial reports, external and internal regulations concerning internal control, financial transaction administration, and compilation of BPKH financial reports. The preparation of Corporate Governance has followed several internal control rules or attributes such as the implementation of three lines of defense and separation of functions in preparing the structure and governance of the Company. There are still several weaknesses in BPKH's internal control, namely the need for further coordination with Hajj organizing partners, namely the Ministry of Religion, especially regarding the costs of carrying out the Hajj, especially inter-institutional receivables. Suggestions from this research will focus on the preparation stage for ICOFR implementation.

EXPLORING THE INTERSECTION BETWEEN TECHNOLOGY AND PUBLIC SECTOR ACCOUNTING EDUCATION - A SYSTEMATIC LITERATURE REVIEW

Muhamad Harestya Darmawan — 2024-12-18

This systematic literature review explores the intersection of technology and public sector accounting education (PSAE). Despite the growing importance of PSAE for preparing competent public servants and implementing public sector reforms, research in this area remains limited compared to private sector accounting education. This study aims to address this gap by examining the evolution of technology trends in PSAE and identifying future research directions. The findings reveal a significant focus on the urgency to acquire technological skills, integrating technology into teaching, and developing conceptual frameworks. This highlights the need for continual adaptation of PSAE curricula to incorporate modern tools and respond to global challenges. Future research should explore the integration of advanced technologies, such as artificial intelligence and blockchain, into PSAE to enhance public sector reforms and educational practices. Comparative studies across different countries are also necessary to understand cultural and systemic factors influencing PSAE. Addressing these gaps will ensure that PSAE remains relevant and effective in preparing graduates for the evolving demands of the public sector.

THE ROLE OF BUREAUCRACY REFORM IN MEDIATING THE IMPACT OF FINANCIAL CONDITIONS, QUALITY OF FINANCIAL REPORTS, ACCOUNTABILITY AND INTERNAL CONTROL ON GOVERNMENT PERFORMANCE

Azas Mabrur — 2024-12-18

This study aims to examine the role of bureaucracy reform in mediating the impact of financial conditions, quality of financial reports, accountability and internal control on government performance. This research is quantitative research using SEM-PLS. The population is provincial, district and city governments in Indonesia, and sampling was carried out using purposive sampling techniques. With observation data spanning 2 years, from 2021 to 2022, 424 local governments make up the sample that satisfies the standards. The research's empirical results demonstrate that financial conditions, quality of financial reports, accountability, internal control and bureaucracy reform all significantly contribute to local government performance. In addition, bureaucracy reform bureaucratic reform has also been proven to mediate the impact of financial conditions, financial reporting quality, accountability and internal control on government performance. This study provides practical implications for local governments in considering factors that are priorities for successful bureaucratic reform which will ultimately improve the quality of government performance.

TAX COMPLIANCE IN VILLAGE-OWNED ENTERPRISES

Siswanto — 2024-12-18

This study aims to investigate the relationship between tax knowledge and tax fairness on tax compliance. This research was conducted in Village-Owned Enterprises (BUMDes) in Trenggalek Regency involving BUMDes management consisting of director, secretary and treasurer. Data from 134 respondents were processed using PLS-SEM. The results showed that tax knowledge has no relationship with tax compliance, while perceived fairness has a positive relationship with tax compliance.

OPTIMIZING LOCAL GOVERNMENT BUDGETS FOR MANDATORY PUBLIC SERVICE INFRASTRUCTURE SPENDING

Budi Mulyana — 2024-12-18

Over the next three years, all regional governments will be required to allocate at least 40% of their budgets to essential public service infrastructure spending. However, this requirement poses a significant challenge for regional governments as their current average investment in infrastructure falls well below the mandated level. To address this gap, this study aims to identify and analyse strategies for meeting mandatory infrastructure spending obligations through regional budget financing schemes. To achieve this goal, this study employed literature review and descriptive analysis. These findings provide several recommendations for future policy formulation. First, reallocating regional budgets to prioritise essential infrastructure spending is crucial. Second, efficiently utilising unspent funds from the previous fiscal year (known as SILPA) to boost infrastructure investment in the subsequent year can be beneficial. Finally, strategically using debt financing to develop infrastructure that enhances public service coverage and quality stimulates economic growth and potentially increases regional revenue.

ESG DISCLOSURE AND INVESTMENT DECISIONS OF STATE-OWNED ENTERPRISES (SOEs) LISTED IN INDONESIA STOCK EXCHANGE

Sila Ninin Wisnantiasri — 2024-12-18

This study aimed to investigate the influence of Environmental, Social, and Governance (ESG) disclosure on investment in state-owned enterprises (SOEs) listed on the Indonesia Stock Exchange (IDX). The independent variables consisted of the ESG disclosure, quantified using the ESG Score and Financial Reporting Quality (FRQ), which proxied with earning management. The dependent variable is measured by total investment. We control the estimation model by firm size, age, and leverage. The study was conducted using quantitative methods. Furthermore, the population included state-owned enterprises that were listed on the Indonesia Stock Exchange (IDX). The data collection technique employed purposive sampling, with a total of 104 firm years of the sample meeting the specified criteria. The sample was selected for a duration of 7 years. Moreover, the data included corporations' annual and sustainability reports from 2016 to 2022, mostly retrieved from the ESGI dataset. In addition, the data analysis technique employed was panel regression using Eviews 12. The data analysis involved doing conventional assumption tests, including normality and multicollinearity. The findings indicated that neither FRQ nor ESG Disclosure significantly influences investment. We argue that state-owned enterprise business strategy, including investment, depends on government assignment and national policy.

THE COMPARISON OF TAX RATES AND GROSS DOMESTIC PRODUCT (GDP) BETWEEN COUNTRIES

Ali Fikri — 2024-12-18

Taxes as the country's main source of financing are an important component for increasing or decreasing value of Gross Domestic Product (GDP) year-on-year (y-o-y). However, the influence of the individual income tax level is thought to have a negative effect on individual spending power. Therefore, the concept of the family office also emerged. This research aims to review whether there is a relationship between the applicable tax rates and economic growth, in terms of GDP.

Testing was carried out through a difference test followed by a test of the influence between the level of individual income tax and GDP (y-on-y). Because the results of the normality test found abnormal data, the test was carried out using non-parametric difference tests and correlation tests. As a result, it was found that an increase in individual income tax rates could have the effect of reducing GDP (y-on-y). This is due to reduced people's purchasing power and reduced circulation of money for shopping/consumption.

The weakness of this research is that it does not involve or exclude other variables such as inflation. Apart from that, this research only focuses on individual income tax rates, and does not use corporate income tax either.

HOUSING POLICY IN INDONESIA, A STRUCTURED REVIEW

Saiful Islam — 2024-12-18

Indonesia's constitution mandates the Government to fulfil citizens' rights, including providing decent housing, work and living, obtaining health services, and also the right to social security, which enables their full development as human beings with dignity (UUD 1945 amendment, 1999). The presence of the government in this case is crucial to intervening in the housing market from both the supply and demand sides to provide adequate housing for all Indonesian people. This research aims to provide an overview of housing policy in Indonesia. It will synthesize several housing sector policies from global practices and their implementation in various countries. Additionally, it will draw lessons from housing policy implementation in Singapore, with the aim of identifying policy gaps in the current Indonesian Government's housing policy. In conclusion, this article aims to establish an ideal framework for developing housing sector policies in Indonesia. This framework comprises well-defined objectives, strategies, mandates, and authority and governance structures based on previous identification results.

ANALYSIS OF SOLAR RENEWABLE ENERGY DEVELOPMENT IN ENERGY PERSPECTIVE IN INDONESIA: PRISMA (PREFERRED REPORTING ITEMS FOR SYSTEMATIC REVIEW AND META-ANALYSIS)

Rahmad Purnama — 2024-12-18

Indonesia, as the world's largest archipelagic nation, faces significant challenges in meeting its growing energy needs while reducing its dependence on fossil fuels. Solar energy offers great potential as a renewable energy source, but its implementation still faces various obstacles. This study aims to conduct a systematic and comprehensive review of the development of solar renewable energy in Indonesia, identify the key factors influencing its adoption, and analyze related policies and strategies. Using the PRISMA method, this study conducted a systematic review of the literature published in the last 10 years. Searches were carried out on national and international journal databases such as Scopus, Web of Science, IEEE Xplore, and SINTA. Data are extracted and analyzed using narrative synthesis and, where possible, meta-analysis. This review identifies key trends in solar energy research in Indonesia, including technological developments, government policy impacts, implementation challenges, and economic and environmental benefits. The analysis shows a significant increase in the adoption of solar energy, but there is still a gap between potential and realization. Factors such as incentive policies, network infrastructure, and public awareness were found to have a crucial role in solar energy development. Although Indonesia has great potential for solar energy, its implementation still faces various challenges. This research highlights the importance of a holistic approach that considers technical, economic, policy, and social aspects in the development of solar energy. Policy recommendations and future research directions are proposed to optimize the use of solar energy in Indonesia's energy transition.

DOES THE SYSTEM OF STATE EXPENDITURE PLANNING AND BUDGETING SUPPORT THE NATIONAL DEVELOPMENT PLANNING SYSTEM? (CASE STUDY: THE MAJOR PROJECT FOR THE ACCELERATION OF MATERNAL MORTALITY AND STUNTING REDUCTION)

Sumadiyah Triwidiyantini Olfah — 2024-12-18

The national expenditure planning and budgeting system is designed to support the national development planning system in achieving state objectives. This study assesses how well this system supports national development planning by comparing its products, namely the Ministry/Agency-Work Plans and the Ministry/Agency-Work Plans and Budgets (Renja-RKA K/L), with those of the national development planning system, specifically the National Medium-Term Development Plans (RPJMN) and the Government Work Plans (RKP). The study focuses on the Major Project for Accelerating the Reduction of Maternal Mortality and Stunting (MP 15) as outlined in the RPJMN 2020-2024 and RKP for 2022 and 2023. Using a qualitative case study method, the research examines the support provided by the expenditure planning and budgeting system to the national development planning system. The findings indicate that, strategically, the system aligns with national development plans. However, practical implementation discrepancies exist between Renja-RKA K/L and the detailed plans of MP 15 in the RPJMN and RKP. These discrepancies are primarily due to the dominant role of human resources in the planning and budgeting process and the lack of detailed technical regulations and adequate information systems for project monitoring.

VILLAGE OWNED ENTERPRISES ACCOUNTABILITY: WHICH ACCOUNTING SHOULD WE USE?

Raynal Yasni — 2024-12-18

This research aims to analyze to what extent accounting training can realize Village Owned Enterprise (VOE) accountability and which method of accounting is appropriate to be implemented for VOE accountability. Accounting is expected to control VOE operations amid public doubt of VOE's financial management. Based on open interviews with VOE managers, village assistants and relevant government officials in the Regency as well as academics who provide assistance to VOE, it was found that VOE accountability is currently still low, because there are still many supporting factors to support accountability has not been fulfilled. Literature and supporting documents review in media and journals are utilized to complete and confirm various data from these primary sources. In addition, the results of the case study approach in the four districts observed showed that VOE managers chose accounting methods that were simple and easy to understand. The implication of this research is to make VOE accountability more effective in producing better VOE performance.

GUYS, DO YOU THINK MANDATORY SPENDING ON EDUCATION AND HEALTH FUNCTIONS IN INDONESIA IS EFFICIENT?

Farhan Hadiantoro — 2024-12-18

This research aims to obtain an overview of the relative efficiency and productivity change in government spending in the education and health sector in 34 provinces in Indonesia during 2018-2022. The research uses Data Envelopment Analysis method in testing efficiency and Malmquist Index in testing productivity change during the period. The findings in this research show that there are only two provinces that can maintain their efficiency in the education and health sector. The education sector has an average efficiency value that is greater than the health sector. There is a gap between provinces located in Java that have greatest average of efficiency score with other provinces mainly located in Sulawesi, Maluku, and Papua that have lowest score. The greatest potential for improvement in both sectors lies in the efficiency of spending originating from the Regional Revenue and Expenditure Budget (APBD). Through further analysis using the Malmquist Index, it was found that there was an increase of productvity in the education sector while the efficiency decrease. In health sector the productivity is decrease while the efficiency is increase. There are only four provinces that have efficiency and productivity change score above the national average

EVALUATION OF THE ACCRUAL BASED ACCOUNTING IMPLEMENTATION IN SUB-NATIONAL GOVERNMENTS OF INDONESIA

Deni Herdiyana — 2024-12-18

This research examines the impact of the Accrual-Based Accounting Implementation in Sub-National Governments in Indonesia. The research was conducted using a qualitative method. Data was collected from respondents in district/city regional governments representing the four most extensive and densely populated islands: financial report preparers, regional government functionals, and financial report users.

The research result is that most respondents believe that the expected benefits from implementing accrual-based accounting have been achieved, and regional government financial reports produced by an accrual-based accounting system can be used for decision-making. However, most respondents believed that implementing accrual-based accounting had more significant challenges than cash-based accounting. The biggest challenge faced is a common understanding of accrual-based accounting. Due to the vast range of accrual-based accounting, these building applications can support accrual-based accounting and complexity in the audit process.

KEMAYORAN CAR MARKET: IS IT WORTHY TO BECOME A PUBLIC SERVICE AGENCY BUSINESS UNIT

Kuwat Slamet — 2024-12-18

Kemayoran Car Market (KCM), which has been operating since 1995, is one of the affordable used car icons on the Jakarta premium site. KCM is one of the work units under the Public Service Agency of Kemayoran Complex Management Center (BLU PPK Kemayoran). The research aims to expose a used car market management pattern from social economic transformation. This research uses a qualitative approach with deep interviews, direct field observations, and the processing of financial documents. The conclusion is that BLU PPK Kemayoran should maintain the existence of KCM. Still, it should be accompanied by optimal and accountable efforts used (1) modifying its management by forming a separate unit or becoming a business unit, (2) preparing a more measurable mission, strategy, business performance, and vision, and being proactive toward the dynamics of the economic environment of business competition and clustering target markets based primarily on land rental services plus digital showroom services (digiroom) as an adaptation to changes in end consumer behavior.

STRATEGY FOR THE ROLE OF INDONESIA SHARIA - MSME IN THE GLOBAL HALAL SUPPLY CHAIN

Abdul Ghoni Ghoni — 2024-12-18

This study explores strategies for the development of Sharia-based Micro, Small, and Medium Enterprises (MSMEs) within the context of Indonesia’s ambition to become the center of the global halal supply chain. Employing a qualitative descriptive methodology, the research is based on secondary data from scientific journals, official reports, and relevant regulations. The study identifies the critical need for enhanced access to Sharia-compliant financing and capital sources as a key factor in enabling MSMEs to integrate effectively into the halal industry ecosystem. By ensuring that MSMEs adhere to Sharia principles, particularly in financial transactions, the study argues that these enterprises can produce higher quality products, increase their competitiveness, and contribute significantly to national economic development. The findings suggest that collaboration between the government, Sharia financial institutions, and the public is essential to fostering the growth of Sharia-based MSMEs, thereby supporting Indonesia's strategic objectives in the global halal market.

CASH WAQF LINK SUKUK COLLECTION: EXPLORING INTENTIONS, OBSTACLES, SOLUTIONS, AND STRATEGIES FOR INSTITUTIONAL WAQIFS

Erny Arianty — 2024-12-18

The low intention of waqf through the new type of government Islamic bond of Indonesia (Cash Waqf Linked Sukuk) CWLS has resulted in the collection failing to reach the target. This study aims to explore intentions, problems, solutions, and strategy about CWLS, and determine and rank each of its clusters and elements.

The method used is a qualitative method with the Analytical Network Process (ANP) approach. Research informants from BWI, KNEKS, Islamic Banks, BPKH, Nazir, and the government.

This research found four aspect that influence the decision to invest in CWLS and the problems related. The knowledge aspect most influenced by the low understanding and low literacy. The conformity aspect most problems caused by complicated and non-standardized accounting treatment. Ineffective CWLS management services influence the environment aspect. Last, the negative views of fund owners mostly affect the fourth aspect, behaviour aspects.

The highest influence for the solution cluster on intention is the socialization elements. The chosen most important strategy is the CSR leverage channel strategy in SOEs or government agencies for placement in CWLS. The second and third levels are standardization report, transparency, discussion policy of one nazir for several CWLS distribution partners and expanding marketing to conventional banks.

DO INFORMATION SYSTEM AND COMPLEXITY MATTER? A PRELIMINARY STUDY

Kristian Agung Prasetyo — 2024-12-18

Taxation has a significant role in Indonesia as most of national revenue is sourced from taxation. Taxes in Indonesia is based on the self-assessment system. The key in such system is taxpayer compliance. Improving compliance can be achieved through two different routes, namely through voluntary compliance and enforced compliance. Tax audits have a critical role in the latter.

This research seeks to understand the effect of the complexity of tax rules and information system on audit effectiveness. For this purpose, this research uses a questionnaire that are electronically sent to auditors at the Banten Regional Tax Office. Using structural equation modelling, this research demonstrates that the complexity of tax rules negatively affects audit effectiveness. This means the more difficult tax rules are, the less effective the audits become. On the other hand, information system does not significantly affect audit effectiveness.

Based on this finding, making tax rules simple is the key ingredient in improving audit effectiveness. An effective audit leads to in an increase in enforced compliance, which will improve taxpayer overall compliance in the end. A simple set of tax rules also makes taxpayer easier to comply. This in turn improves voluntary compliance. At the end of the day, this makes compliance level higher. As compliance is the key in improving tax revenue, then it is clear from this research that a simple set of tax rules is imperative.

INVESTMENT STRATEGY DESIGN IN SHARIA STOCK PORTFOLIO FOR INDONESIAN HAJJ FUND MANAGERS

Resi Ariyasa Qadri — 2024-12-18

This research attempts to formulate BPKH's investment strategy for JII-indexed sharia shares. This research will use a constructivist paradigm to formulate a stock portfolio that is capable of producing optimal returns. To apply this paradigm, we apply mixed methods: quantitative and qualitative. The data collection method used in this research is divided into two parts following the research method used. For quantitative research, data was collected using documentation techniques from the Bloomberg database to obtain the data needed to build the five-factor Fama-French model and accrual anomalies. Meanwhile, interviews and Focus Group Discussions (FGD) conducted to collect feedback regarding the JII share portfolio that has been formulated from informants at BPKH. This research succeeded in identifying and describing the design of a sharia stock portfolio indexed in the Jakarta Islamic Index (JII). By applying the 5-factor Fama-French model in conjunction with the Markowitz portfolio model, this research reveals key aspects of the ideal composition and structure for an Islamic stock portfolio. This research also succeeded in identifying systematic and unsystematic risks inherent in the JII indexed sharia stock investment portfolio, as well as measuring the magnitude of accrual anomalies during the COVID-19 pandemic period.

THE POTENTIAL FOR DIGITALIZATION OF BUSINESS PROCESSES THROUGH SHARIA E-COMMERCE AT THE HAJJ FINANCIAL MANAGEMENT AGENCY (BPKH)

Asqolani — 2024-12-18

The rapid development of digital technology not only challenges the business world, but also brings great opportunities to improve the economy and business. The challenge faced by the Hajj Financial Management Agency (BPKH) in the digital era is to enter the realm of E-Commerce, but still comply with the principles of Hajj finance based on sharia, prudence, benefits, non-profit, transparency, and accountability. This paper focuses on the prospects and challenges facing the development of potential for digitalizing business processes through sharia e-commerce at BPKH. It analyzes the main factors that impact such a plan and that need to be considered for its successful implementation. Business Process Management (BPM) analysis is useful in creating sustainable business strategies, sustainable competitive advantage, reducing costs, and removing obstacles. Given the fact that BPKH is currently exploring the potential for the use of digital technology, especially through e-commerce platforms, this paper’s results have particular significance in that they could enlighten and inform the adoption of digital technology to make BPKH operations more efficient and reduce risk.

FACTORS THAT INCREASE TRANSACTION COSTS OF SMALL-SCALE PPP PROJECTS CASE STUDY OF MADIUN CITY STREET LIGHTING

Sakti Prabowo — 2024-12-18

Small-scale Public-Private Partnership (PPP) projects offer local governments an opportunity to enhance regional development. However, these schemes are often perceived to incur higher transaction costs compared to conventional PPP projects. This study seeks to identify the factors contributing to increased transaction costs in small-scale PPP projects, using the Madiun City Street Lighting PPP project as a case study. Employing a qualitative research methodology by studying the related literature and interviewing the consultant of the project, this study gathers pertinent information regarding the transaction costs associated with the Madiun City Street Lighting PPP project, which serves as a pioneering example of small-scale PPP initiatives in Indonesia. This paper analyzes that project value, complexity process, coordination, parties’ capacity, opportunistic behavior, and contract change put higher transaction cost on small-scale PPP project proportionally. However, the analysis reveals that the complexity of coordination between local government authorities and the Regional House of Representatives (DPRD) can be effectively managed by the contracting agency (PJPK) of the Madiun City Street Lighting PPP project.