Regional Specialization and Labor Productivity of Food Industry in South Sumatra

  SMEs became the leading sector contribute to Gross Domestic Product (GDP) in Indonesia. The role of SMEs not only can give positive impact encourage potential development sectors. This paper is to investigate the relationship between the characteristics of regional specialization and labor productivity of small enterprises in the Food industry using the regency or city level data of South Sumatra from 2008-2018. The study used secondary data from the Department of Trade and Industry of South Sumatra for 17 regencies/cities in South Sumatra. Our study proceeds in two steps. First, we used Location Quotient (LQ) to identify the regional specialization. Second, we measured the impact of regional specialization on labor productivity including other regional variables; investment, a total of enterprises, size of employment, Gross Domestic Product Regional (GRDP), and Gross Enrolment Rate based on the panel data of regencies or cities. In the first step, we found that eight regencies specialized in the Food industry. Those typically concentrated near of big city where few enterprises dominate. Next, the LQ, investment, average size of employment, GRDP, and a total of enterprises have a significant effect on labor productivity while the education variable does not influence regional economic growth.  According to this result, it should be cautioned that agglomeration may cause undesirable competition for raw materials leading to a detrimental result. This strongly suggests that to fully achieve labor productivity in South Sumatra, there is a need for the implementation of appropriate policy measure to overcome this issue.

THE MACRO-PRUDENTIAL POLICY AND BANK NON-PERFORMING ASSETS IN INDONESIA

This study examines the effect of the Macro-prudential Intermediation Ratio (MIR) as an instrument of Bank Indonesia's macro-prudential regulation on Non-Performing Assets (NPA) as one of the banking industry performance indicators in Indonesia. In addition, this study also examines several other independent variables such as bank assets as an indicator of bank size, Bank Indonesia interest rates (BI rate), and inflation as macroeconomic indicators and their effect on NPA. The NPA, MIR, and bank asset data used in this study consist of 109 commercial banks operating in Indonesia during the period from January 2015 to December 2020. This study uses an Ordinary Least Square (OLS) analysis approach by undertaking classical assumption tests and statistical tests. The results show that (1) MIR, bank assets, BI rate, and inflation simultaneously have a significant effect on NPA (2) Partially, bank assets have a negative and significant effect on NPA while other variables including macro-prudential policy have no significant effect on NPA (3) Variable MIR, bank assets, BI rate, and inflation can explain variations of NPA variable by 34% (4) Larger bank size encourages prudent financing and reduces NPA

Faktor Penentu Tingkat Kemiskinan di Indonesia Bagian Tengah

Tujuan dari penelitian ini adalah untuk mengetahui faktor-faktor yang mempengaruhi kemiskinan di Provinsi Tengah di Indonesia (Studi kasus: Bali, Nusa Tenggara Barat dan Nusa Tenggara Timur). Metode yang digunakan adalah data panel, yaitu alat analisis yang digunakan untuk melihat pengaruh variabel bebas yaitu tingkat inflasi dan jumlah penduduk serta tingkat kemiskinan sebagai variabel terikat. Data yang digunakan dalam penelitian ini adalah data sekunder tiga provinsi di Indonesia tahun 2015-2019. Dari penelitian tersebut, Random Effect Model lebih memilih digunakan dalam penelitian ini menurut Hausman Test. Jumlah penduduk (X2) mempengaruhi variabel angka kemiskinan, terlihat dari pengujian yang menunjukkan tingkat signifikansi f <0,05. Dan dari R square diketahui bahwa variabel bebas dapat menjelaskan angka kemiskinan sebesar 67,4 persen dan sisanya sebesar 32,6 persen dijelaskan oleh variabel lain yang tidak diteliti dalam penelitian ini

Monetary Policy and Demographics: Empirical Evidence for Housing Prices in Indonesia

The housing market in Indonesia has different characteristics for each region. These differences underlie changes in house prices, factors that affect house prices include Loan to Value (LTV), mortgage rate, income, and population. The data was obtained from relevant agencies of Bank Indonesia and the Statistics Indonesia, using data from 2012-2021, which is a combination of time-series data and a cross-section of 18 cities in Indonesia. The research method used is a regression panel. The results of the study of income levels, population, and Loan to Ratio (LTV) are significant to house prices, except for mortgage rates which not be effective in depressing housing price during the observation period

Do the G20 Countries' Increased Economic Growth, Foreign Direct Investment, Industry Value-added, and Population Change Contribute to CO2 Emissions?

Economic development plays a crucial role in contributing to CO2 emissions. Therefore, this research aims to investigate environmental degradation caused by economic activities within the scope of G-20 Countries, which comprise the largest economies and advanced industries. The primary objective of this study is to deliver an empirical study of gross domestic product, foreign direct investment, industry value-added, and population on CO2 emissions in G20 Countries. Using panel data from 2000-2022, the research found a positive correlation between GDP and CO2 emissions. Meanwhile, by utilizing GDP squared, the existence of the Environmental Kuznet Curve (EKC) theory was identified. The EKC theory indicates a significant negative correlation between GDP squared and CO2 emission. This is attributed to several factors, including increased public awareness of environmental protection and technological advancements in developed countries, contributing to improved energy efficiency. For the variables of FDI and population, a negative correlation with CO2 was found. On the other hand, the value-added industry shows a positive and significant correlation with CO2 emissions