Tax Evasion in Indonesia: a Game Theoretical Model

This study aims to analyze the phenomenon of tax evasion in Indonesia by using game theoretical model and referring to Indonesian Tax Laws. This study uses Inspection Game used by Tsebelis and its refinement by Pradiptyo. The game played by 2 representative agents, namely taxpayer who represents all possible parties that can involve to evade and tax investigator who represents all possible parties that concern with taxes, criminal offenses of taxes, and law enforcement. In line with the refined inspection game, the study finds that increasing the severity of penalty may affect the probability of public (taxpayer) to offend (evade) if certain condition fulfilled, according to the Mixed Strategy Nash Equilibrium of the game. Another policy to decrease the probability of taxpayer to evade his tax expense is applying tax incentives policy. The result shows that tax incentives policy is effective rather than increasing the severity of punishment. Because the game is played by players whose scope is wide, it is suggested to develop the game into more specific players and into the next stage of bribery and extortion game which often happen in Indonesia when the taxpayer plays evade and tax investigator plays investigate.Keywords: Tax Evasion, Game Theory, Inspection Game, Refined, Inspection GameJEL Classification: H26, E62                             

Game Theoretical Analysis of Corruption on the Road in Indonesia

This paper aims to analyze the empirical mechanism of the bribery and extortion on the roads in Indonesia. Using a game theoretical approach, the game is played by two representative agents, namely Police and Rider. The mechanism is modeled into two stage games. Stage 1 adopts the 2x2 simultaneous Tsebelis’ inspection game refined by Pradiptyo. Stage 2 illustrates two scenarios of sequential game. Stage 1 proposes that the benefit of enforcing the law gained by the police becomes rider’s important consideration to violate the traffic laws and rules while stage 2 proposes that the benefit of enforcing laws and rules is the important point to avoid bribery. Stage 2 also suggests that the law enforcement institutions may think carefully before increasing the severity of penalties and sanctions suffered by riders because it would increase the likelihood of police to extort the riders. Keywords: Bribery, Extortion, Game Theory, Inspection Gam

Does E-Procurement Prevent Corrupt Activity in Public Procurement Process?

Corruption is an extraordinary crime that occurred in every country. The United Nations Office on Drugs and Crime (UNODC) reported in 2013 that about 10-25 percent of the value of public procurement in the whole world, including Indonesia, was corrupted. Based on the data of Indonesia’s Corruption Eradication Commission (KPK), corruption cases in public procurement is in the highest rank compared to the others. Using a game theoretical approach, this study aims to analyze the procurement process of public goods and services of the Indonesian Government, which has adopted the electronic system, called e-procurement. The game is played sequentially by two representative agents, namely the organizer (government) and the provider. It is assumed that the organizer has a non-corrupt nature. This study results that e-procurement is not significantly able to reduce corrupt behavior. It happens because, although the procurement process is conducted electronically, both sides still have the possibility to meet for negotiation, which can lead to corruption. Therefore, the key to preventing corrupt practices in public procurement is to avoid the two players’ meeting

Pengaruh nilai tukar dan ekspor terhadap harga saham perbankan sebelum dan setelah pengumuman covid-19

Covid-19 hampered most businesses and caused a banking crisis that triggered uncertainty so that economic growth declined. Banks can dampen these economic shocks by providing much-needed funding for companies, especially those affected by Covid-19. The bank can obtain these funds by selling stocks to the public. However, some factors affect stock prices, such as exchange rates, exports, and unexpected conditions such as Covid-19. Based on existing research, stock prices in general after Covid-19 have fallen drastically. Therefore, it is hoped that this research can help the Indonesian government control exchange rates and exports so that the price of banking stocks does not experience a drastic decline when unexpected situations such as Covid-19 occur. This study uses a panel data analysis technique. The results of this study are that the exchange rate and exports have a significant effect on stock prices, but conditions before and after Covid-19 have no significant effect on stock prices. It is expected that investors and the government can consider the factors that affect stock prices

Village Tourism-Based Local Economic Development: An Approach to the Raled Model

Selorejo Village, Malang Regency has tourism potential which is known as the Bumi Perkemahan Bedengan Tourism. However, Bumi Perkemahan Bedengan Tourism still needs to be developed optimally because this tourism has the potential to become sustainable tourism. The novelty of this research is to complement quantitative research methodologies related to the theme of developing village tourism potential, where there are research limitations from several previous studies, which are dominated by descriptive qualitative methods. The concept of Local Economic Development (LED) is deemed capable of optimizing available local resources by involving several stakeholders such as the Government, Local Communities, Business Actors, and Local Community Organizations. This research discusses tourism-based Local Economic Development (LED) that aims to examine the condition of Local Economic Development (LED) and provide insight in making plans or strategies for sustainable Local Economic Development (LED) in Bumi Perkemahan Bedengan Tourism. This article applies a quantitative approach with data analysis of RALED (Rapid Assessment Technique for Local Economic Development). Assessment of local economic development in Bumi Perkemahan Bedengan Tourism using the hexagonal concept of LED which consists of six aspects, namely target group, location factors, policy focus and synergy, sustainable development, governance, and management process. The results showed that the five aspects had met the good category. However, there is one aspect, namely the Target Group has a low index value of 45.92 which means that the condition of Local Economic Development in the aspect of the Target Group at the Bumi Perkemahan Bedengan is in a bad condition. Therefore, the target group aspect and the other two lowest aspects namely management process and location factors need attention for more improved in the efforts of Local Economic Development (LED) in the Bumi Perkemahan Bedengan Tourism

Technological Changes, Investments, and Unemployment in Indonesia

The vicious circle of poverty in a country could stop if the government was able to solve the problem of unemployment. One way to reduce unemployment is to boost investment. In addition, in the era of the industrial revolution the role of technological development also needs to be considered as a means of reducing unemployment. This study is aiming to analyze the effect of physical investment, educational investment, and technological changes on unemployment in Indonesia. The data used in this study are obtained from Indonesian Central Statistics Agency (BPS). The technological development is proxied by Index of Technology and Communication. The regression method is used to reach the aim of the study. The result of the analysis indicates that the physical investment and technological development have a negative and significant effect on unemployment. Moreover, the findings suggest that the reduction in unemployment in Indonesia is caused by many people who become online motorcycle taxi drivers in the informal sector. Keywords: technology development, physical investment, educational investment, unemployment, panel dat

The Green Economy Perspective of Batu City: Calculating Depletion in the Tourism Sector

The concept of sustainable development has begun to be developed, namely in line with current needs and without endangering future generations. In addition to focusing on environmental issues, this concept covers economic development, environmental protection and social development. However, this concept still tends to focus on short- term economic development. With the limitation of the State Revenue and Expenditure Budget (APBN) and the resources we have, it is not surprising that policymakers prefer shortcuts. As a result, the quality of economic growth has deteriorated. One of the efforts to harmonize the needs of economic growth and conservation of natural resources is the concept of a Green Economy. This article discusses how to calculate economic development as seen from the amount of Gross Domestic Product (GDP) from a Green Economy perspective. Batu City, as a tourism city that relies on natural conditions and its environment, needs to analyze its economic development from a Green Economy perspective in order to be sustainable. This article aimed to analyze the depletion of natural resources of the sub-sector “Provision of Accommodation and Food – Beverage” which supports tourism in Batu City. The results showed that in 2015-2019, natural resource depletion increased every year. Keywords: Sustainable Development, Green Economy, Depletion, Natural Resource

Alms-Giving and Financial Management

Objectives of financial management may be broadly divided into two parts such as profit maximization and wealth maximization. But alms-giving doesn’t have any connection with profit maximization or wealth maximization. Giving of alms is individual spending with non-profit oriented. Alms-giving objective for religious reason only to obey God’s order. In macro economics and micro-economics theory there are alms component as spending. Because alms-giving is better to be spent secretly. The research aims to analyze causality relationship between giving of alms with individual financial management using Econometric analysis Toda-Yamamoto causality test with E-views software. Purposive sampling method is employed to get primary data from respondents. Personal finance management is an activity that involves all the individual financial decisions, which includes budgeting, saving, insurance, mortgages. When a person plans his personal finance, he needs to take a range of financial products and other personal factors into consideration. Personal finance management has a huge influence on one’s life and future. Respondents comes from various region with various occupation and income with various religion background. Research analysis finds overwhelming support for the idea which optimism impacts economic decision-making by proving that alms affect financial management. Keywords: Alms-giving, financial management, Toda-Yamamoto causality tes

Peningkatan Kompetensi Guru Ekonomi di Kabupaten Malang dalam Analisis Butir Soal

IMPROVING THE COMPETENCE OF MALANG’S ECONOMICS TEACHERS IN ITEM ANALYSIS. Comprehensive assessment used to measure learning outcomes is a very important component of lesson planning. In general, teachers often make mistakes in identifying the parameters used in measuring learning outcomes. In addition, the method of measuring learning outcomes with conventional methods through manual calculations can also affect the validity of learning evaluation results. This community service aims to provide training to teachers in Turen, Malang Regency on how to measure the evaluation of learning outcomes by using a more effective and efficient way, using statistical data processing software. The use of this statistical software will make it easy for teachers to be able to analyze the level of difficulty of the questions made, the effectiveness of presenting the answer choices, the analysis of the difference in each question and the analysis of the tricks.  The result of this service activity is that the participants who are teachers are able to perform analysis quickly and accurately using statistical software. In addition, this training is also useful for teachers who are developing research instruments

SANTRIPRENEUR: Program Peningkatan Kemampuan Berwirausaha Santri Pondok Pesantren melalu Pelatihan Sablon Digital

Pengabdian Kepada Masyarakat is a program with a mission to implement the development of science and technology from tertiary institutions to the community to support and improve the welfare of the community. In this entrepreneurship development program, the team conducted production training in the creative industry sector in the form of screen printing expertise at Anwarul Huda Islamic Boarding School in Malang. The students are deemed necessary to be given assistance to increase economic independence. In addition, this is also supported by Anwarul Huda Islamic Boarding School in Malang which allows students to become entrepreneurs to create economically independent students. Through this community service program which will be carried out by Lecturers from the UM Research and Community Service Institute (LP2M), in collaboration with practitioners in the field of creative industries, new entrepreneurs and students in the field of creative industries are expected to be born, and can manage businesses better. This activity is divided into four stages namely observation of partner needs analysis, Socialization, Training, and Assistance