Effect of business unit performance on company value

Purpose: This research aims to examine the effect of business unit performance on the value of BUMD business units in West Java. Design/Methodology/Approach: The research was conducted using a quantitative approach. The unit of analysis in this study is the business unit of BUMD owned by West Java Province. The observation unit is the management of the business unit owned by the West Java Province BUMD. Questionnaires were distributed to 34 managers of the West Java Provincial BUMD business units. Findings: Business unit performance influences the value of the company. Resources provide the highest influence in increasing the value of the company, when compared to operation management and culture. Practical Implications: The research has implications for the management of BUMD business units in West Java where in order to increase the value of the company it can be done by increasing the ownership of resources supported by the development of operation management, and culture. Originality/Value: This research shows how to increase the value of the company by increasing the ownership of resources, supported by the development of operation management, and culture.peer-reviewe

BUMD Contribution as a Moderation of Association Between Revenue and Expenditure with Regional Financial Independence

This study aims to assess and analyze local revenue, balance funds, capital expenditures, and regional financial independence with the contribution of BUMD as a moderating variable. This research uses quantitative methods with a descriptive approach. The population in this study was the District or City Government in the West Java Province of the Company in 2014-2019. The sampling technique was using the purposive sampling method. The sample in this study were districts or cities that still had a low level of independence as many as 72 sample units. Data analysis used moderate regression analysis (MRA) and Pearson correlation. The results showed that local revenue and capital expenditure had a positive correlation with regional financial independence and balance funds had a negative correlation with regional financial independence. Then the moderation regression analysis shows that the contribution of BUMD moderate negative towards regional financial independence, the contribution of BUMD results moderate positive towards regional financial independence. Meanwhile, the contribution of BUMD does not moderate the balance of funds towards regional financial independence

Post-decentralization regional economies and actors -- putting the capacity of Local governments to the test

Decentralization in Indonesia was introduced institutionally in 2001, with a democratization drive promoted by international donors and by the intention of the new government to clear away the centralistic image of Soeharto. Decentralization has had some effects on regional economies and on local government administration. Compared to the period before decentralization, the share of gross regional domestic product and local government finance has increased in Java, though investment and bank borrowing have expanded to the outer islands. In qualitative aspects, decentralization has transferred not only administrative authority but also many new vested interests from the center to regions. Local governments have become more extensive economic actors in regional economies. Regional economic actors now compete actively for such vested interests and have missed the opportunity to create market-friendly regional economies. The government sector should not be a mere rent-seeking economic actor, but should play a role as a facilitator promoting private sector activities in regional economies.Decentralization, Local economy, Community development, Regional administration, Local government, Indonesia

MODEL PENINGKATAN KINERJA BADAN USAHA MILIK DAERAH DI PROVINSI JAWA BARAT BERBASIS KEPEMIMPINAN STRATEGIK

ABSTRAK Penelitian ini dilatarbelakangi oleh inkonklusif hasil penelitian terdahulu mengenai hubungan kepemimpinan strategik terhadap kinerja organisasi. Beberapa penelitian menemukan kepemimpinan strategik mendorong kinerja perusahaan. Namun, sebaliknya penelitian lainnya menemukan kepemimpinan strategik tidak mendorong kinerja perusahaan. Penelitian ini bertujuan untuk mengembangkan dan menguji konsep adaptive learning orientation yang disintesis dari sosial capital theory dan knowledge based view. Di samping itu, penelitian ini menguji mediasi paralel dan serial variabel adaptive learning orientation, innovative capability dan organizational resilience dalam menjawab inkonklusif penelitian tersebut. Penelitian ini menggunakan pendekatan kuantitatif dengan metode survei explanatory. Survei dilakukan pada 94 BUMD di Provinsi Jawa Barat sebagai sumberdata. Selanjutnya, data dianalisis menggunakan structural equation modeling (SEM) dengan bantuan software AMOS versi 28 dan SPSS versi 28. Hasil penelitian empiris menemukan adaptive learning orientation mampu memediasi kepemimpinan strategik melalui innovative capability dan organizational resilience terhadap kinerja BUMD. Studi ini berhasil membuktikan bahwa model dan konsep yang diajukan pada penelitian ini yaitu adaptive learning orientation, innovative capability dan organizational resilience terbukti menjawab inkonklusif hasil penelitian pada hubungan kepemimpinan strategik terhadap kinerja BUMD di Provinsi Jawa Barat. Hubungan positif kepemimpinan strategik terhadap kinerja BUMD di Provinsi Jawa Barat dimediasi secara paralel dan serial oleh adaptive learning orientation, innovative capability dan organizational resilience. Penelitian ini menjelaskan bahwa dalam proses peningkatan kinerja BUMD diperlukan peran kepemimpinan strategik, adaptive learning orientation, innovative capability dan organizational resilience. ABSTRACT This research is motivated by inconclusive findings from previous studies regarding the relationship between strategic leadership and organizational performance. Some studies have found that strategic leadership enhances company performance. However, other studies have found that strategic leadership does not enhance company performance. This study aims to develop and test the concept of adaptive learning orientation, synthesized from social capital theory and the knowledge-based view. In addition, this research tests the parallel and serial mediation of the variables adaptive learning orientation, innovative capability, and organizational resilience in addressing the inconclusive nature of previous research. This study employs a quantitative approach with an explanatory survey method. Surveys were conducted on 94 Regional Government-Owned Enterprises (BUMD) in West Java Province as the data source. Subsequently, the data were analyzed using structural equation modeling (SEM) with the assistance of AMOS version 28 and SPSS version 28 software. The empirical research results find that adaptive learning orientation can mediate strategic leadership through innovative capability and organizational resilience towards the performance of BUMD. This study successfully demonstrates that the model and concept proposed in this research adaptive learning orientation, innovative capability, and organizational resilience prove to address the inconclusive findings regarding the relationship between strategic leadership and the performance of BUMD in West Java Province. The positive relationship between strategic leadership and the performance of BUMD in West Java Province is mediated in parallel and serial manners by adaptive learning orientation, innovative capability, and organizational resilience. This research explains that in the process of improving the performance of BUMD, the roles of strategic leadership, adaptive learning orientation, innovative capability, and organizational resilience are crucial

PENGARUH KINERJA KEUANGAN DAERAH TERHADAP BELANJA MODAL (STUDI PADA PEMERINTAH DAERAH KABUPATEN/KOTA SE-JAWA BARAT PERIODE TAHUN ANGGARAN 2012-2017)

The research aims to know, analyze and explain the area's financial performance as measured by dependency ratio, PAD effectiveness ratio, efficiency ratio, fiscal space ratio, SILPA financing rate ratio and BUMD contribution ratio as well as its effect on the shopping ratio, both partially and simultaneously towards the allocation of capital expenditure in APBD.  The research population is the entire local government district/city in West Java in 2010-2017.  The results showed that the average local government district/city in West Java in 2010-2017 has a capital expenditure ratio and low BUMD contribution ratio, fiscal space ratio and SILPA medium financing rate ratio, with dependence rate to high central government and still less efficient in spending management, but it has high PAD effectiveness.   Key Words: Keywords: dependency ratio, PAD effectiveness ratio, efficiency ratio, fiscal space ratio, SILPA financing rate ratio, BUMD contribution ratio, shopping ratio Penelitian ini bertujuan untuk mengetahui, menganalisis dan menjelaskan kinerja keuangan daerah yang diukur dengan rasio ketergantungan, rasio efektivitas PAD, rasio efisiensi, rasio ruang fiskal, rasio tingkat pembiayaan silpa dan rasio kontribusi BUMD serta pengaruhnya terhadap rasio belanja, baik secara parsial maupun simultan terhadap alokasi belanja modal dalam APBD.  Populasi penelitian adalah seluruh pemerintah daerah kabupaten/kota se Jawa Barat pada tahun 2010 -2017.  Hasil penelitian menunjukkan bahwa rata-rata pemerintah daerah kabupaten/kota se Jawa Barat pada tahun 2010 -2017 memiliki rasio belanja modal dan rasio kontribusi BUMD yang rendah, rasio ruang fiskal dan rasio tingkat pembiayaan Silpa sedang, dengan tingkat ketergantungan kepada pemerintah pusat tinggi dan masih kurang efisien dalam pengelolaan belanja, namun memiliki efektivitas PAD tinggi.   Kata Kunci:  Rasio ketergantungan,  Rasio efektivitas PAD, Rasio efisiensi, Rasio ruang fiskal, Rasio tingkat pembiayaan silpa, Rasio kontribusi BUMD, Rasio Belanja &nbsp

KEIKUTSERTAAN PEMERINTAH DAERAH DALAM MENGELOLA PARTICIPATING INTEREST 10% (SEPULUH PERSEN)PADAWILAYAH KERJA MIGAS

Regulasi yang digunakan dalam pemberian Participating Interest (PI 10 %) dalampengaturan dan pengusahaan Minyak dan Gas Bumi Indonesia diharuskanberlandaskan Pasal 33 ayat (3) UUD Tahun 1945 yang secara tegas menyatakanbahwa Bumi dan air dan kekayaan alam yang terkandung di dalamnya dikuasaioleh negara dan dipergunakan untuk sebesar-besarnya kemakmuran rakyat,Pengaturan dengan memberikan kewenangan kepada Pemerintah daerah,pengaturan lebih lanjut dengan Peraturan Menteri Energi dan Sumber DayaMineral No 37 Tahun 2016 tentang Participating Interest 10% pada wilayahkerja migas dalam peraturan ini memberikan keterlibatan pemerintah daerahdalam bentuk tanggungjawab untuk memberikan penunjukan kepada BUMDatau Perusahaan daerahnya guna mendapatkan pengelolaan PI 10% yang diharapkan mampu memberikan keuntungan atau profit yang akan menambahpendapatan daerah guna kesejahtraan masyarakat setempat selain itu,diharapkan mampu memberikan pengetahuan, pengalaman kerjasama bagiBUMD dalam pengelolaan wilayah kerja migas sebagai kontraktor. Saat iniada 2 wilayah kerja yang memanfaatkan pemberian PI 10 % ini antara lain:Wilayah Kontrak Kerja Sama (KKS) Mahakam dan Wilayah Kontrak KerjaSama (KKS) Offshore North West Java (ONWJ). Adapun mekanisme lain yangdapat dioptimalkan oleh pemerintah daerah antara lain dengan melakukanpengawasan dan pemanfaatan yang optimal bagi daerah melalui Dana BagiHasil Sumber Daya Alam, Corporate social responsibility dan pengelolaanSumur tu

How to Cope With Strategic Infrastructure Disparities in West Java? (A Post-Pandemic Economic Recovery Analysis )

The availability of energy and telecommunication facilities has been claimed as two strategic infrastructures supporting the West Java economy during and the post-pandemic. However, researchers found that the West Java electricity and telecommunication infrastructure is inter-regionally inequitable. This paper aims to identify the recent electrical energy access of households and the existing condition of telecommunication infrastructure; to configure the investment data in the last five years, and to analyze the opportunities and challenges of investment, and development of electricity and telecommunication network in the future. This research uses the Desk Study method by collecting primary data from bureaucrats and secondary data from relevant Government agencies. The results show that electricity and telecommunications infrastructure conditions in West Java are still unequal between the Northern and Southern regions, particularly in terms of electrification ratio, cellular phone signal strength, and internet signal quality. Furthermore, investment in West Java was very unequal, with about two-thirds of foreign and domestic investment in Bekasi and Karawang districts in the last-five-years. This study formulates recommendations for policy in the investment, electricity, and telecommunications sectors in dealing with interregional infrastructure development disparities as well as economic challenges during and after the pandemic

Post-decentralization regional economies and actors -- putting the capacity of Local governments to the test

Decentralization in Indonesia was introduced institutionally in 2001, with a democratization drive promoted by international donors and by the intention of the new government to clear away the centralistic image of Soeharto. Decentralization has had some effects on regional economies and on local government administration. Compared to the period before decentralization, the share of gross regional domestic product and local government finance has increased in Java, though investment and bank borrowing have expanded to the outer islands. In qualitative aspects, decentralization has transferred not only administrative authority but also many new vested interests from the center to regions. Local governments have become more extensive economic actors in regional economies. Regional economic actors now compete actively for such vested interests and have missed the opportunity to create market-friendly regional economies. The government sector should not be a mere rent-seeking economic actor, but should play a role as a facilitator promoting private sector activities in regional economies

Institutional Analysis of Drinking Water Supply System in East Nusa Tenggara Province

The regulatory mandate states that the implementation of SPAM in the regions is prioritized for BUMD as the SPAM manager. If SPAM services are not reached by BUMD, then the implementation of SPAM remains the responsibility of the Central Government or Regional Governments may form a Technical Implementation Unit or Service Technical Implementation Unit to serve areas or areas that have not been reached by these services but can also be implemented by Community Groups and Business Entities to meet their own needs. The purpose of this paper is to analyze how the implementation of SPAM in NTT Province with the perspective of Good Corporate Governance. The research method used is literature review by utilizing relevant journals, books, media also laws and regulations. The results of this study indicate that the implementation of SPAM 2020 is mostly carried out by PDAM (15 districts/cities from 22 districts/cities in NTT), the remaining 7 districts are still in the form of UPTD BLUD and UPTD. Institutions are important to ensure that drinking water services to the community can be served properly, and ensure the functioning of SPAM, both funded by the APBN and APBD

Garlic Business Model Development Strategy: Canvas Model Business Approach

Garlic is one of the commodities developed in the country as an effort to achieve self-sufficiency and reduce imports. This study aims to identify the existing business models in the garlic production centers and develop garlic ideal business models using Business Model Canvas (BMC) approach. The others purpose is to identify the critical points of existing business models and formulate policy recommendations for developing garlic business models to support production. The study used primary and secondary data. The primary data was obtained from a survey conducted in 2021 at garlic production centers with purposive sampling methods such as Karanganyar Regency, Boyolali Regency, and Magelang Regency. The analysis shows that key partner elements, customer segments, and channels are the critical point. Thus, to develop the garlic business model, it is necessary to carry out synergy and collaboration of stakeholders (key partners) to overcome critical activities, essential resources, customer segments, partnerships, channels, and value co-creation. As a result, it will improve garlic farmers' cost structure and revenue stream, so garlic production can increase to meet domestic needs. Keywords: bmc element, business model canvas, collaboration, garlic, synerg