Exchange Rate of Indonesia: Does Rupiah Overshoot?

This research attempts to analyze whether Rupiah overshoots when the crisis hit Indonesia in mid of 1998. It also try to find out the fundamental macroeconomic factors that influence exchange rate when economic crisis hit Indonesia. It uses ordinary least square method and also cointegration in order to see long-term relationship. Furthermore, in order to examine the stability of exchange rate when the exchange rate system changed from managed floating to free floating, this paper apply Chow Test. The result shows that when the economic crisis hit Indonesia, Rupiah overshoots and there has been a structural change of exchange rate after 1998.Overshoot;exchange rate;economic crisis;Indonesia

ISLAMIC BANK PERFORMANCE AND CAPITAL STRUCTURE

The choice between debt and equity financing has been directed to seek the optimal capital structure. Under the agency costs hypothesis, a high leverage or a low equity/asset ratio reduces the agency costs of outside equity and increases firm value. Several studies show that a firm with high leverage tends to have an optimal capital structure and therefore it leads to produce a good performance, while the Modigliani-Miller theorem proves that it has no effect on the value of firm. The importance of these issues has only motivated researchers to examine the presence of agency costs in the non-financial firms. In financial firms, agency costs may also be particularly large because banks are by their very nature informationally opaque – holding private information on their loan customers and other credit counterparties. In addition, regulators that set minimums for equity capital and other types of regulatory capital in order to deter excessive risk taking and perhaps affecting agency costs directly to change banks’ capital structure. In this paper we attempt to prove the agency cost hypothesis of Islamic Banks in Malaysia, under which high leverage firm tends to reduce agency costs. We set the profit efficiency of a bank as an indicator of reducing agency cost and the ratio equity of a bank as an indicator of leverage. Our findings are consistent with the agency hypothesis. The higher leverage or a lower equity capital ratio is associated with higher profit efficiency.agency cost; capital structure; Islamic bank performance; panel data

Exchange Rate of Indonesia: Does Rupiah Overshoot?

This research attempts to analyze whether Rupiah overshoots when the crisis hit Indonesia in mid of 1998. It also try to find out the fundamental macroeconomic factors that influence exchange rate when economic crisis hit Indonesia. It uses ordinary least square method and also cointegration in order to see long-term relationship. Furthermore, in order to examine the stability of exchange rate when the exchange rate system changed from managed floating to free floating, this paper apply Chow Test. The result shows that when the economic crisis hit Indonesia, Rupiah overshoots and there has been a structural change of exchange rate after 1998

Exchange Rate of Indonesia: Does Rupiah Overshoot?

This research attempts to analyze whether Rupiah overshoots when the crisis hit Indonesia in mid of 1998. It also try to find out the fundamental macroeconomic factors that influence exchange rate when economic crisis hit Indonesia. It uses ordinary least square method and also cointegration in order to see long-term relationship. Furthermore, in order to examine the stability of exchange rate when the exchange rate system changed from managed floating to free floating, this paper apply Chow Test. The result shows that when the economic crisis hit Indonesia, Rupiah overshoots and there has been a structural change of exchange rate after 1998

Constitutional Rules on Waqf and Fiscal Policy Outcomes

Fiscal policy, inter alia, looks at the list of government revenues. The constitutional rules provide guidance on the list of revenues. However, the previous studies find that waqf is not considered as part of government revenues. In this study, we argue that waqf brings in a new list of government revenues. To prove this point, we select a sample of fifty-seven countries under the Organization of Islamic Countries. The constitution of each country is investigated by using content analysis. The study uses a combination of several keywords, namely “tax or taxes or fiscal obligations,” “revenues or budget or finance” and “waqf” in investigating the rules on revenues and waqf. The findings in this study are classified into five kinds of countries, namely countries that highlight government revenue and waqf in the constitution, countries that claim to recognize sharia law as the basis of the law but the waqf rules in the constitution are missing, countries that mention in their constitution that government revenues are placed under the government system, financial system, and parliament, countries that place waqf is ruled under the public finance matter, and countries that place waqf as the main policy. This finding implies that the constitutional rules lead to the view that waqf is a part of public finance that can be used as a fiscal policy tool and should be included in the state budget plan

ISLAMIC BANK PERFORMANCE AND CAPITAL STRUCTURE

The choice between debt and equity financing has been directed to seek the optimal capital structure. Under the agency costs hypothesis, a high leverage or a low equity/asset ratio reduces the agency costs of outside equity and increases firm value. Several studies show that a firm with high leverage tends to have an optimal capital structure and therefore it leads to produce a good performance, while the Modigliani-Miller theorem proves that it has no effect on the value of firm. The importance of these issues has only motivated researchers to examine the presence of agency costs in the non-financial firms. In financial firms, agency costs may also be particularly large because banks are by their very nature informationally opaque – holding private information on their loan customers and other credit counterparties. In addition, regulators that set minimums for equity capital and other types of regulatory capital in order to deter excessive risk taking and perhaps affecting agency costs directly to change banks’ capital structure. In this paper we attempt to prove the agency cost hypothesis of Islamic Banks in Malaysia, under which high leverage firm tends to reduce agency costs. We set the profit efficiency of a bank as an indicator of reducing agency cost and the ratio equity of a bank as an indicator of leverage. Our findings are consistent with the agency hypothesis. The higher leverage or a lower equity capital ratio is associated with higher profit efficiency

ISLAMIC BANK PERFORMANCE AND CAPITAL STRUCTURE

The choice between debt and equity financing has been directed to seek the optimal capital structure. Under the agency costs hypothesis, a high leverage or a low equity/asset ratio reduces the agency costs of outside equity and increases firm value. Several studies show that a firm with high leverage tends to have an optimal capital structure and therefore it leads to produce a good performance, while the Modigliani-Miller theorem proves that it has no effect on the value of firm. The importance of these issues has only motivated researchers to examine the presence of agency costs in the non-financial firms. In financial firms, agency costs may also be particularly large because banks are by their very nature informationally opaque – holding private information on their loan customers and other credit counterparties. In addition, regulators that set minimums for equity capital and other types of regulatory capital in order to deter excessive risk taking and perhaps affecting agency costs directly to change banks’ capital structure. In this paper we attempt to prove the agency cost hypothesis of Islamic Banks in Malaysia, under which high leverage firm tends to reduce agency costs. We set the profit efficiency of a bank as an indicator of reducing agency cost and the ratio equity of a bank as an indicator of leverage. Our findings are consistent with the agency hypothesis. The higher leverage or a lower equity capital ratio is associated with higher profit efficiency

Perancangan Ulang Tata Letak Lini Perakian Head Lamp Tipe 2SJ Untuk Meningkatkan Kapasitas Produksi Di Industri Otomotif

Industri otomotif  umumnya  memproduksi perangkat penerangan pada sepeda motor dan mobil. Lamp Assembly/Lamp Assy Department merupakan salah satu departemen di perusahaan ini. Masalah yang timbul dalam studi kasus pada departemen yang dimiliki PT Idonesia Stanlay Electric adalah lini perakitan head lamp 2SJ tidak mampu mencapai target produksi sebanyak 570 pcs/hari. Produk yang dihasilkan lini ini rata-rata 520 pcs/hari. Perlunya perancangan ulang tata letak lini perakitan head lamp 2SJ adalah untuk memberikan alternatif tata letak baru yang mampu mencapai target produksi dan melakukan pengujian menggunakan simulasi Process Simulator 2016. Metode perancangannya yaitu dengan menyetimbangkan lini perakitan head lamp 2SJ dan membagi ulang beban kerja ke setiap stasiun sehingga kapasitas dapat meningkat. Membagi ulang beban kerja mengakibatkan laju aliran bahan berubah dan tata letaknya ikut berubah. Hasil dari penelitian ini menunjukkan bahwa ada dua buah alternatif yang didapat dan memiliki kapasitas produksi lebih tinggi dari kondisi awal lini perakitan head lamp 2SJ. Simulasi yang dilakukan membuktikan analisis penelitian ini yaitu kapasitas dapat meningkat setelah menyetimbangkan lini perakitan kondisi awal. Kapasitas meningkat sebanyak 43 pcs hingga 76 pcs/hari

Analisis Kinerja Keuangan Kabupaten/Kota Pemekaran di Sumatera Utara

This research attempts to analyze the implementation of regional autonomy to the financial performance in newly-formed district government of North Sumatra. It focuses on the performance of original regional income after fiscal decentralization and the regional financial independency. The result shows that regional autonomy has a positive impact on the growth of original regional income. However, the share of those incomes to regional budget is still small. The newly-formed districts in North Sumatra are unready to face the regional autonomy policy. Most of the newly-formed regencies/municipalities are very dependent to balanced fund through General Allocation Fund and Special Allocation Fund. Keywords: regional autonomy, original regional income, fiscal decentralization

The Effect of Macroeconomic Fundamentals in Financial Liberalization to the Stability of Indonesia’s Exchange Rate

Paper ini mengkaji hubungan antara nilai tukar dengan fundamental makroeko¬nomi Indonesia dari tahun 1997 sampai 2004. Kajian ini menerangkan faktor-faktor yang mempengaruhi nilai tukar rupiah terhadap US dollar, baik dalam jangka pendek maupun jangka panjang dengan menggunakan teori kointegrasi. Untuk melihat kestabilan nilai tukar rupiah sebelum dan sesudah krisis ekonomi digunakan Uji Chow. Objektif lain dari kajian ini adalah ingin membuktikan apakah terjadi lonjakan yang tajam (overshoot) terhadap rupiah ketika krisis berlangsung. Hasil kajian menunjukkan bahwa rupiah memang melonjak tajam akibat adanya peningkatan penawaran uang dan inflasi. Hasil juga menunjukkan ter¬jadi hubungan kointegrasi antara nilai tukar dan fundamental makroekonomi serta terjadi perubahan struktural setelah tahun 1998. Keywords: exchange rate; stability; overshootin