Analysis Of Exchange Rate Pass-through, Fear Of Floating, And Implementation Of Inflation Targeting Framework

This paper analyze the exchange rate pass-through and fear of floating behavior on 18 countries that adopting Inflation Targeting Framework (ITF). Vector Error Correction Model (VECM) is used: (1) to estimate the effect of exchange rate depreciation to inflation (passthrough); and (2) to examine the indication of fear of floating behavior. The result shows that passthrough effect has decreased in most countries after ITF where middle income countries have higher passthrough than high income countries. This effect did not disappear completely and still has a significant role to drive inflation. The interventions on exchange rate movement can be interpreted more as control of inflation than fear of floating. The implementation of ITF especially in middle income countries needs further to be reconsidered since it requires inflation as the only nominal anchor

The Determinants of Tax Compliance in Tax Amnesty Programs: Experimental Approach

In an effort of searching for a new source of revenue for funding the infrastructure development for Indonesia, the government chose to do tax amnesty in 2016. This research was conducted to study the effects of factors (wealth, tariff periods, tax penalties, and audit probability) towards tax compliance. Tax compliance measured from the number of units reported by taxpayers, the amount of value indicated by taxpayers, and participation from taxpayers. The study uses primary data that generated through experimental economics. The methods used are Variance Analysis. The result showed that the taxpayer with higher income has lower compliance rather than the taxpayer from lower income. The taxpayers prefer to report their assets at lower rates. The effort of enforcement from the government by implementing tax penalties and audit probability shows greater effect towards tax compliance.DOI: 10.15408/etk.v17i1.696

Analysis of Creative Industries Development in Indonesia

This study aims to identify the relative strengths of the creative industry subsector in Indonesia and analyze the determinants that affect the GDP of the creative industry sector in Indonesia. The analysis period from 2010 to 2016 used Klassen's typological analysis and panel data regression. The data used in this study from 2010 to 2016 (time series) and 16 sub-sectors of the creative industry sector. Based on typology Klassen creative industry sub-sector craft, fashion and culinary is a sub-sector that has a relative advantage over other subsectors, thus contributing more to the GDP of the creative industry. The panel data regression results show that the variable of the creative industry workforce, creative industry employee wages, and patents were able to increase the GDP of the creative industry. The vocational creative industry sector which is a proxy for education and creative industry sector policies can make the GDP value of Indonesia's creative industries in the future be higher. Some industrial sub-sectors such as photography, publishing, architecture, advertising, interior design, and fine arts need government support to catch up with other subsectors to make a better contribution to the GDP of creative industries. the promotion of patents and policies for small businesses must be improved, especially administrative and technical requirements to make it easier

ANALYSIS OF EXCHANGE RATE PASS-THROUGH, FEAR OF FLOATING, AND IMPLEMENTATION OF INFLATION TARGETING FRAMEWORK

This paper analyze the exchange rate pass-through and fear of floating behavior on 18 countries that adopting Inflation Targeting Framework (ITF). Vector Error Correction Model (VECM) is used: (1) to estimate the effect of exchange rate depreciation to inflation (passthrough); and (2) to examine the indication of fear of floating behavior. The result shows that passthrough effect has decreased in most countries after ITF where middle income countries have higher passthrough than high income countries. This effect did not disappear completely and still has a significant role to drive inflation. The interventions on exchange rate movement can be interpreted more as control of inflation than fear of floating. The implementation of ITF especially in middle income countries needs further to be reconsidered since it requires inflation as the only nominal anchor

Inequality in Indonesia's Electricity Access

This study aims to look at the inequality of electricity access experienced by households in Indonesia by measuring the distribution of household energy consumption and electrification determinants based on regional and household characteristics with the probit model. The data used Susenas 2018 data, with a total sample of 282 772 households. The Gini coefficient value of electricity consumption shows that in urban Indonesia the inequality of consumption between households is relatively more unequal than in rural areas. PLN's electricity access in Indonesia from the household side is strongly influenced by the level of education and gender of the head of the household. Territorial status and homeownership status are obstacles to PLN's electricity access. Access to electricity in rural areas is still relatively low due to Indonesia's geographical factors which are very difficult and require large costs for electricity infrastructure in the region. The role of the private sector needs to be increased through the public-private partnership (PPP) program in the development of electricity infrastructure and CSR programs related to the provision of electricity access to PLN for people who do not have access to electricity, especially in rural areas

THE EFFECT OF BOND CHARACTERISTICS, FINANCIAL PERFORMANCE AND MACRO VARIABLES ON RETURN OF CORPORATE BOND IN THE AGRIBUSINESS SECTOR

There are several reasons why companies choose to issue bonds rather than borrowing from banks. Interest paid by companies to bond investors is often lower than the interest rate charged by the bank, but still at least bond issuance from the agricultural sub-sector and chooses to lend to the bank. The purpose of this study is to analyze the influence of bond characteristics, financial performance and macroeconomic return on corporate bonds in the agribusiness sector. This study uses a panel data regression method consisting of 12 bonds with the vulnerable time between 2014-2015 \quarterly. Based on the panel data model shows that the characteristics of bonds (yield to maturity, coupon, rank, and duration), financial performance (CFOS) and macroeconomics (IHSG) have a significant effect on the return of bonds. The Company should consider the amount of bond yield and coupon to be issued and pay attention to financial performance, especially cash flow and capital expenditure (capital expenditure). Keywords: agribusiness sector, bonds, characteristics, performance, macroeconomic

The Impact of El Nino and La Nina Towards The Prices of Cabbage and Shallot in Indonesia

This study examines the impact of El Nino and La Nina on cabbage and shallot prices by applying the spatial correlation analysis method with 34 provinces from 2010 to 2020 to classify affected areas. The next method is a spatial panel with the main variables: rainfall as an indicator of El Nino and La Nina, commodity prices, spatial effects, and other supporting variables such as income, productivity, wages, and COVID-19 dummy. To get the output model, it is necessary to analyze the selection of the best model between the Structural Equation Model and the Spatial Autoregressive. The results of the study provide findings: (1) there are 16 provinces affected by El Nino and La Nina in Indonesia; (2) the best spatial panel model used is Spatial Autoregressive with the resulting La Nina has a large effect on increasing of cabbage and shallots prices because excess soil water content will cause crops and bulbs to rot easily. The spatial aspect has a significant influence, meaning that the price of cabbage and shallots in one area will affect the prices of the two commodities in other areas through distribution patterns. Policy implications of the impact of El Nino and La Nina in this study are classified into managerial, mitigation, and adaptation strategies including the policy of the Regional Inflation Control Team in the form of inter-regional cooperation. Keywords: cabbage, el nino, la nina, shallot, spatia

Indonesian Stock Market Return Volatility and Foreign Portfolio Capital: Evidence Before and During Covid-19 Pandemic

The Covid-19 pandemic increased uncertainty in the Indonesian stock market. This paper aims to investigate foreign and domestic investors' behavior in the Indonesian stock market, especially during the Covid-19 pandemic. The method used was E-GARCH and DCC-GARCH. The results showed that the impact of shocks from bad and good news was greater on the return volatility during the pandemic. The shocks had a positive impact on the increase in the spillover effect of NFI's volatility to return volatility in the short and long term before the pandemic, but this did not happen during the pandemic. There is an indication of bias of forecasting errors and prospect theory in the behavior of investors in the Indonesian stock market. Conservatism bias is also indicated in the behavior of foreign investors. Keywords: Covid-19, E-GARCH, DCC-GARCH, net foreign inflow, return volatilit

DAMPAK PERKEMBANGAN TOKO MODERN TERHADAP KINERJA PEDAGANG PRODUK PERTANIAN PADA PASAR TRADISIONAL DI KOTA BEKASI

This study is aimed to analyze the changes of agricultural products trader performance in traditional markets and the factors that influence the changes of revenue and profits of the agricultural products traders as the effect of the growing number of modern stores in Bekasi. Processing and data analysis methods used in this study are quantitative analysis and qualitative analysis. The methods used to analyze changes in the performance of the agricultural product traders in traditional markets is paired t-test. The method to analyze the factors that influence changes in revenue and profits of the agricultural product traders in traditional markets is OLS. Results of paired t-test shows that there are changes in revenue, profit, operating hours, circulation of goods, number of buyers, the number of customers and employees after the modern market development. Analysis of OLS shows that dummy variables of gender, education level, number of kiosk, space of kiosk, rice main commodity also fresh fruits and vegetables main commodity significantly influence the total revenue. Meanwhile, dummy variables of gender, level of education, trading experience, number of kiosk, space of kiosk and location significantly influence profit.Keywords: traders, traditional market, modern stores, paired t-test, multiple regressionsABSTRAKTujuan dari penelitian ini adalah menganalisis perubahan kinerja pedagang produk pertanian dan menganalisis faktor-faktor yang memengaruhi  perubahan omzet dan keuntungan pedagang produk pertanian pada pasar tradisional setelah meningkatnya jumlah toko modern di Kota Bekasi. Metode yang digunakan untuk menganalisis perubahan kinerja pedagang produk pertanian pada pasar tradisional adalah uji-t berpasangan. Metode untuk menganalisis faktor-faktor yang memengaruhi  perubahan omzet dan keuntungan pedagang produk pertanian pada pasar tradisional adalah Ordinary Least Square (OLS). Hasil analisis uji-t berpasangan menunjukkan bahwa variabel omzet, keuntungan, jam operasional, sirkulasi barang, jumlah pembeli, jumlah pelanggan serta jumlah pegawai pedagang produk pertanian pada pasar tradisional mengalami perubahan setelah perkembangan toko modern. Hasil analisis OLS menunjukkan bahwa variabel dummy jenis kelamin, tingkat pendidikan, jumlah kios, luas kios, dummy komoditas utama beras serta dummy komoditas utama buah dan sayur berpengaruh nyata pada omzet. Variabel yang berpengaruh nyata terhadap keuntungan adalah dummy jenis kelamin, tingkat pendidikan, pengalaman berdagang, jumlah kios, luas kios dan dummy lokasi merupakan faktor yang berpengaruh nyata pada keuntungan.Kata kunci: pedagang, pasar tradisional, toko modern, uji-t berpasangan, regresi bergand