The Impact of Special Autonomy on the Convergence of Regional Economic Growth in Aceh, Indonesia

This study aims to assess the impact of special autonomy on the convergence of regional economic growth in Aceh, as well as factors that affect the convergence of economic growth before and after the enactment of special autonomy in Aceh. The independent variable in this study is the initial GDP per capita, working population, poor people, school duration, life expectancy, gross fixed capital formation, local revenue, equalization fund, and total receipts. The dependent variable is economic growth. The data used is secondary data in the form of panel data of the 23 districts / cities in Aceh from 1991 to 2012. The model used is panel data regression model which are grouped into two part of analysis which is before special autonomy (1991-2001) and after special autonomy (2002-2012). The estimation results indicate that there is sigma convergence of Aceh's regional economic growth which is shown by the decreasing value of standard deviation from 0.7698 before special autonomy to 0.5411 after special autonomy. In absolute terms, it is also ensued that there is a significant convergence of regional economic growth in Aceh in which the value of half-life of convergence to non-oil is about 27 years. While the speed of convergence after the special autonomy is increased. Conditionally, the exogenous variables that have a significant effect was only local revenues and school duration. Entire period takes 30 years half-life convergence with the speed of convergence on average 2.30 percent per year towards a steady state. The development program in the future should be oriented in creating many more employment opportunities, reducing poverty significantly, the enhancement of life expectancy, increasing people’s education to a higher level, as well as reducing the development gap in each district in Aceh. Keywords: Convergence, Speed of Convergence, Half-Life of Convergence, Special Autonomy, the Regional Economic Growt

STRATEGY AND MANAGEMENT CONTROL SYSTEM IN A MANUFACTURING INDUSTRY IN SELECTED CITIES IN INDONESIA

Abstract: The purpose of this study is to examine the relationship between strategy formation process and strategy implementation process with the usage of MCS. The focus of strategy formation process used in this study is intended strategy, emergent strategy, and implemented strategy. The focus of MCS used in this study, is interactive control system and diagnostic control system. This study uses structural equation modelling as multivariate analyses tool. AMOS software 16 program is used as the aid tool to solve the problem in SEM application. Respondents in this study are 287 upper managers who work in manufacturing industry with prospector typology strategy. The results from this study are: intended strategy positively and significantly influences the interactive control system; intended strategy positively and significantly influences the diagnostic control system; emergent strategy positively and significantly influences the interactive control system; and emergent strategy provides no influence on diagnostic control system; implemented strategy positively and significantly influences the interactive control system; implemented strategy positively and significantly influences the diagnostic control system. The strength of pressure that is used in each control system that will be able to provide optimal result has not known yet. The result of this study recommends  that firms should have used many kinds of control usage which are suited with  their condition.Keywords: intended, emergent, implemented, strategy, control system, manufactur

THE ROLE OF HOTEL AND RESTAURANT TAXES AND ITS EFFECT ON BANDA ACEH’S LOCAL OWN SOURCE REVENUE

The purpose of this research is to describe the role and the effect of hotel and restaurant taxes on Banda Aceh’s local own source revenue. Its role will be focused on analyzing tax contribution, the efficiency and effectiveness of tax collection system. Meanwhile, its effect on local own source revenue can be identified by regression analysis for 27 years (1984-2010). The results show that the average contribution of hotel and restaurant taxes is still relatively low. Moreover, the system of tax collection in Banda Aceh has been performed efficiently and effectively. But, there is a gap between the potentiality and the realization of taxes. Furthermore, hotel and restaurant taxes are statistically significant influenced local own source revenue. Therefore, government should pay more attention to improve the tax administration system in the future, enhance the quality of tax administrator, increase tax efforts intensively than extensively, and implement rewards and punishment on the overall systems. In sum, the role and the effect of hotel and restaurant taxes can induce Banda Aceh’s local own source revenue. Keywords: Hotel and restaurant taxes, Efficiency, Effectiveness, Effect of Tax, Local Own Source Revenu

ANALYSIS OF THE EXPORT-BASE COMMODITY SUPPLY ON THE ECONOMIC GROWTH IN ACEH, INDONESIA

The study aims to identify export base sectors and to analyse its impact to the economic growth based on the Cobb Douglas production function. Some relevant theories to support our arguments among others are base sector, export base and economic growth theory. Data of central government capital spending (CGB), local government capital spending (LGB), export average price (Pavg), provincial minimum wage (W) and linear multiple regression model is employed. The results show that the agriculture is the only basis sector in Aceh. The role of local government capital spending in the export based commodity supply  contradicts the theory, provided indication that the local government capital spending has not been able to pull the economic growth. The role of central government capital spending, export average price and minimum wage have been in accordance with the available theoretical background. All independent variables are found to be statistically significant both partially and simultaneously, indicating that those variables are economically important to develop export base sectors in Aceh, however the impact on economic growth is relatively small. Keywords: export base sector, supply for export, economic growth, Ace

PERCEPTION OF LOCAL COMMUNITY TO HUMAN-ELEPHANT CONFLICT SURROUNDING ELEPHANT CONSERVATION HABITAT IN ACEH, INDONESIA

Abstract: The aim of this research is to identify the perception of local community to human- elephant-conflict surrounding the elephant conservation habitat in Aceh Besar, Aceh Province, Indonesia. This research uses a quantitative approach and proportional sampling technique for data collection. In the process of observation, the study consideres several aspects include the description habitat disturbance of the Sumatran elephant in the conflict area, the level of damage caused by the Sumatran elephants, and how the local perception around the area of human-elephant conflict towards elephant conservation. This type of disorder that is caused by human-elephant conflict varies, from medium to moderate interference with the interpretation of a large loss. The study finds that the local perception of research sites against human-elephant conflict have good levels of perception.   Keywords: Perception of local community, Human elephants conflict, Sumatran elephan

THE ROLE OF BRAND LOVE AS MEDIATION FACTOR TOWARD CUSTOMER LOYALTY

The purpose of this research is to explain the effect either directly or indirectly directly from the brand love mediation variables on the relationship of brand trust variables consisting of Brand Excellence, Brand Strength and Brand Uniqueness on Brand Loyalty to Car customers in Aceh. Method data collection used is to spread the questionnaire to as many as 400 respondents, with sampling technique that is Purposive Random Sampling Based on result of data analysis, hence can be concluded that variable of brand image proved to have partially and simultaneous, positive and significant influence to brand love. This condition means that the better image of mrek will affect the increasing of brand love to car customers in Aceh. Keywords: Brand Image, Brand Love, Brand loyalt

ANALYSIS OF THE INTERREGIONAL TRADE OF AGRICULTURAL COMMODITIES IN WEST SUMATERA, INDONESIA

This study aims to investigate factors affecting interregional trade of agricultural commodities between regions in West Sumatera, Indonesia. For this purpose, this study use modified gravity model. There are four commodities that represent interregional trade of agricultural commodities in this study, namely: rice, chicken egg, broiler and fresh sea fish. This study uses cross section data of the 15 regencies/city in West Sumatera. The data is obtained from survey to wholesaler group of agricultural commodities in West Sumatera (primary data). The result of this study shows that factors affecting interregional trade in West Sumatera are: the difference in price (for commodities: rice, chicken egg and broiler), transportation costs (for commodities: broiler and fresh sea fish).

ACTOR ROLE OF COMPARATIVE FOREIGN PRESENCE IN REGIONAL AUTONOMY: THE CASE OF ACEH, MINDANOA AND SOUTHERN THAILAND

Actor role abroad is not rational actors but devotees’ pluralist international organizations. Foreign policy is the result of disputes, bargaining, and compromise between many different actors. Foreign policy of the recruitment process is not rational process but a social process. It is the process to change the position and the results of overseas conflicts actor was referring to the difficult issues resolved, especially involving the values of life. Consultation undertaken will produce a compromise on both sides especially the things that divided equally. This study analyzes documentation from previous studies. The three issues are very complex in the approach by the respective governments have played is the same solidarities. Possible policy approaches in Aceh as a national issue from the old order to the new order did not work in peace. But with the success HDC mediators autonomous region status. Mindanao is also the case when the open dialogue supported by ASEAN through OKI mediators to achieve ARMM with the MNLF and the Philippine government bring. While in Southern Thailand is done with a variety of approaches and thus more complicated question, and the Government of Thailand is considered as a national issue in the case of the Southern Thailand’s Pattani political approach that uses the theory of conflict management and conflict termination will peel intention behind these approaches conflict resolution has been carried out Pattani, Narathiwat and Yala this. Through the analysis, there might be things that are not clear in the case of trying to hide this particular role played by the Thai government in addressing the issues that arise, so that the proposed autonomous region was still in the of process.Keywords: Actor Role of Foreign Affairs, Regional Autonom

RISK MANAGEMENT PRACTICES OF SELECTED ISLAMIC BANKS IN MALAYSIA

Abstract: This study explores the risk management practices of major Islamic banks in Malaysia with the objective of having deeper understanding of the practices and identifying ways for further improvements. Various aspects of risk management practices are assessed through survey questionnaires, particularly those relevant and specific to the case of the Islamic banks. The study finds that the Islamic banks adopt good risk management practices with few areas of improvements include the use of computerised support systems and more sophisticated approaches to measure risks and the use of Shari’ah compliance techniques to mitigate risks. By assessing their current risk management practices, the study hopes to contribute in terms of recommending strategies to strengthen the risk management practices of the Islamic banks so as to increase the overall competitiveness in the Islamic banking industry. Keywords: risk management; Islamic banks; competitivenes

Improving Competitive Advantage and Business Performance through the Development of Business Network, Adaptability of Business Environment and Innovation Creativity: An Empirical Study of Batik Small and Medium Enterprises (SME) in Pekalongan, Central Ja

Abstract - The purpose of this study is to observe how the business network, adaptability on business environment, and innovation creativity simply affect the competitive advantage and business performance of Batik SME in Pekalongan, Central Java, Indonesia. This study uses Structural Equation Modelling as multivariate analyses tool. AMOS software 16 was used as the aid tool to solve the problem in Structural Equation Modelling (SEM) application. Respondents in this study were the owner and manager of Small to Medium Sized Enterprises of batik industry in Pekalongan, Central Java, Indonesia. The testing result showed that innovation creativity has insignificant influence on competitive advantage; the adaptability of business environment has insignificant influence on competitive advantage; business network significantly affected competitive advantage; competitive advantage significantly influenced the SME business performance. The ability of entrepreneurs to build business network has eased an information exchange and also to make a social relatedness in order to improve the competitive advantage. The result of the study provides contribution to Resources-Based View (RBV) theory, where the companies were able to improve all their capabilities in enhancing the competitive advantage and SME’s performance.  Keywords      :   Business network; Adaptability on business environment; Innovation creativity; Competitive Advantage; Business Performance; SMEPaper Type :     Research Pape