Dampak Foreign Direct Investment dan Investasi Portofolio terhadap Stabilitas Makroekonomi di Indonesia : Fenomena Global Imbalances

The imbalance of global economic recovery has led to a variety of implications on the economies of emerging markets countries, including Indonesia, its massive capital inflows. Capital inflows can be a source of development financing, as well as to support the deepening of financial markets. However, when capital inflows are massive enough and can not be absorbed by the economy as a whole, it will weaken the impact of export competitiveness and potential pressures on macroeconomic stability. This study aims to analyze the impact of foreign direct investment and portfolio investment against macroeconomic fundamentals. The method used in this study is the Vector Autoregression through the use of impulse response and variance decomposition with time series data 2005.Q4 - 2011.Q4. Some of the variables used are economic growth, inflation, exchange rate, BI Rate, Foreign Direct Investment (FDI), and Portfolio Investment. The research results indicate that the positive impact of FDI on economic growth is smaller than the portfolio investment. To price stability, the impact of FDI is negative and the positive impact of investment portfolio. Positive impact of FDI on the exchange rate and the investment portfolio of negative influence. While monetary policy through the BI Rate of negative response to the development of FDI and portfolio investments respond positively. This shows more effect on the investment portfolio of macroeconomic instability, especially on the stability of prices and exchange rates. Its massive capital inflows cause the exchange rate appreciation trend that goes beyond the fundamental conditions and implications for the asset price bubble and increase the vulnerability of financial markets and inflation

Kajian Pemetaan Dan Optimalisasi Potensi Pajak Dalam Rangka Meningkatkan Pendapatan Asli Daerah (Pad) Di Kabupaten Jember

In autonomy concept of area, local government has important role in arranging and managing its own area, including financial management, which is decanted in UU No 32 and 33 2004. Regulation of local government expected to be more can dig potency of source of acceptance of area in defraying all activities development of area through make-up of Local Real Earning. Source of acceptance of the LRE can be conducted through intensification and extensification tax area and retribution. In Jember regency, acceptance of area tax was not optimal result while compared to local retribution. In 2003 – 2006, percentage of local tax contribution showed 28,30%, it has lower value than local retribution which has 44,33% (APBD, 2003-2006). Therefore, it requires to be identified local tax optimalization through previous problems evaluation, so that in turn can be formulated government policies precisely. The empirical result of this study indicated that in Jember regency, type of low potential tax are hotel and restaurant, amusement, entertainment and light road. Other case, dig tax on group C has potential local earning. Society perception on influence factor of tax earning optimalization is institutional factor which appeared 55%, considering on imperfect law enforcement and administrative system. The importance of policy recommendations is local tax management which reach 62% through innovation on imposition tax system and improvement of human resource quality through training and education

Monetary Policy, Financial Sector Development and Poverty Reduction in Indonesia

This paper aims to analyze the relationship between the role of monetary policy financial sector development and poverty reduction in Indonesia. Specifically, the purpose of this study investigates how the interrelationship of financial sector development and poverty reduction. This aims related with implementation of monetary policy to show further how the response of monetary policy through interest rate instrument to achieve stability of macroeconomic that Is inflation, growth and poverty reduction.The financial sector is primary conduit through which monetary policy affects real economy sector and monetary policy determines the resources available lo financial institution. Therefore, there is coordination between financial sector development and monetary policy in order to achieve final goal that is inflation, in turn, it has implication on growth and poverty reduction.The data was used in this study using time series annual data from 1970 - 2005. The source of data was taken from International Financial Statistic and Central Bank of Indonesia, The data which identified contain 3-months deposit interest rate, consumer price index, gross domestic product, domestic credit as percentage of GDP and consumption per capita as household indicator (measure of poverty). The method of analysis is vector error correction model. Impulse response and variance decomposition analysis was used to show the dynamic effect relationship within variables.The result of this study shows that domestic credit affects the poverty reduction statistically significant and positively in the long run. But in the short run, the effect of domestic credit negatively and the response of domestic credit to interest rate is positively. It is because, there is high spread interest rate margin between borrowed and lending rate, in the other side, it were caused financial intermediaries having not expand credit to ¡he pm-poor sectors of economy thus, it will influence poverty rate. The interest rate as instrument of monetary policy responds inflation significantly and it giving sign to the domestic credit. Therefore, interest rate policy must be done carefully and it needs synergy with other macroeconomics policy