Financial Development, Economic Growth, and Environmental Degradation Nexus in ASIAN Emerging Markets

Environmental degradation is one of the major problems in the world recently and one of the United Nations’ (UN) sustainable development goals (SDGs). Emerging markets countries that have become major players in the global economy and the main source of world economic growth have great potential to contribute the environmental degradation due to increased economic activities. This paper investigates the impact of financial development and economic growth on environmental degradation in Asian emerging markets. A panel environmental degradation model using financial development from banking sector and capital market sector, economic growth, Foreign Direct Investment (FDI), and urbanization variables that are major determinants of CO2 emission as a proxy of environmental degradation. The periods considered were 1980 – 2018 for banking model, and 1996 – 2018 for financial sector model (banking sector and capital market sector). A panel data approach applied such as cross-section dependence, panel unit root, panel cointegration, Fully Modified OLS (FMOLS) and Dynamic Ordinary Least Square (DOLS). The empirical finding revealed that in Asian emerging markets there is positively long-term relationship between financial development from banking model with environmental degradation. Nevertheless, we do not find any long-term relationship between financial development from financial sector model with environmental degradation. Moreover, the quadratic negative signed for economic growth showed the existence of Environmental Kuznets Curve (EKC)

Constructing the Index of Indonesian Monthly Private Consumption Expenditure

Private consumption expenditure (PCE) contributes a major share in Indonesian GDP and its growth has been dominating the economic growth. PCE is also linked directly to the welfare of Indonesian people making it even more relevant for its close monitoring. However, despite the high volatility of macroeconomic conditions due to both global and domestic disturbances, indicators that measure PCE in frequency higher than quarterly is not yet existent in Indonesia. This paper is the first attempt to construct a monthly index of private consumption expenditure for Indonesia. Using a methodology based on the experience of other countries and constrained with data availability, we devise the index based on four statistically relevant variables: value added tax revenue, excise tax revenue, electricity consumption, and fuel consumption. Using the weights estimated based on the principal component analysis we found that our monthly PCE index fits well and correlate highly with the quarterly private consumption expenditure from the national accounts data. We hope that our initial attempt to construct the monthly PCE index will encourage others to devise even better measure of monthly consumption indicators.Private consumption expenditure, Macroeconomic Policies, Indonesia

PELATIHAN LITERASI KEUANGAN DIGITAL KEPADA PENGUSAHA MIKRO DI KABUPATEN BANDUNG, JAWA BARAT

The development of the digital Financial Services Sector (SJK) is very likely to threaten people who have minimal financial and digital literacy because they can be trapped in a vortex of debt. One group that is vulnerable to this is the micro-business group. This Community Service Program supports the National Strategy for Indonesian Financial Literacy (SNLKI) which was stipulated in POJK No.76 of 2016 to carry out financial education activities to improve public financial literacy. The focus of this activity is the micro-business group in Bandung Regency. This community service activity aims to increase understanding of economic and digital literacy through educational programs. The activities method through online training for small and medium entrepreneurs in Bandung Regency. This activity divide into three training sessions covering the motivation for digital financial literacy, financial health diagnostics using digital platforms, financial planning, making the proper budget, preparing emergency funds, and getting to know digital financial products and services. Based on a survey conducted on training participants, it was found that this training provided new knowledge or skills that were important to them, namely digital financial platforms, the benefits of financial planning, and how to manage finances properly, and realizing that emergency funds needed to be prepared since the beginning. Based on the survey results after the training, it can conclude that this educational activity enhances awareness to be competent in managing finances is essential. This type of training recommends regularly carrying to improve public financial literacy. --- Perkembangan Sektor Jasa Keuangan (SJK) digital sangat mungkin menjadi ancaman bagi masyarakat yang minim literasi keuangan dan digital karena bisa terjebak dalam pusaran permasalahan keuangan. Salah satu kelompok yang rentan akan hal ini adalah kelompok usaha mikro. Tingkat literasi keuangan yang rendah dapat mengakibatkan pengambilan keputusan yang kurang tepat, terutama terkait pada pengelolaan keuangan usahanya. Kegiatan pelatihan ini untuk mendukung program Strategi Nasional Literasi Keuangan Indonesia (SNLKI)  yang ditetapkan pada POJK No.76 tahun 2016 untuk melakukan kegiatan edukasi keuangan guna meningkatkan literasi keuangan masyarakat. Kegiatan pengabdian kepada masyarakat ini bertujuan untuk meningkatkan pemahaman literasi keuangan dan digital yakni melalui program edukasi sesuai kebutuhan bagi para pelaku usaha. Metode pelaksanaan kegiatan melalui pelatihan kepada para pelaku usaha kecil dan menengah di Kabupaten Bandung yang dilakukan secara daring. Kegiatan ini terbagi kedalam tiga sesi pelatihan yang mencakup motivasi akan pentingnya melek keuangan digital, diagnosa kesehatan keuangan menggunakan platform digital, pembuatan perencanaan keuangan, membuat anggaran yang tepat, menyiapkan dana darurat dan mengenali produk dan jasa keuangan digital. Berdasarkan survei yang dilakukan kepada peserta pelatihan diperoleh hasil bahwa pelatihan ini memberikan pengetahuan atau keterampilan penting yang baru bagi mereka yakni tentang platform keuangan digital, manfaat dari perencanaan keuangan dan mengetahui cara pengelolaan keuangan dengan baik serta menyadari bahwa dana darurat perlu dipersiapkan sejak dini. Berdasarkan hasil survei yang dilakukan pasca pelatihan dapat ditarik sebuah kesimpulan bahwa kegiatan edukasi ini memberikan penyadaran penyadaran untuk menjadi cerdas dalam pengelolaan keuangan adalah penting. Pelatihan sejenis ini disarankan dalam dilakukan secara berkesinambungan untuk meningkatkan literasi keuangan masyarakat

ANALISIS CALENDAR ANOMALIES DI PASAR SAHAM INDONESIA TAHUN 1998 – 2018

ABSTRACT   The Efficient Market Hypothesis Theory of Fama states that stock prices cannot be predicted by its movement tendency (random walk). In some stock markets, the movement of stock prices has a seasonal effect, which is the repetition of stock movements at a certain time that can be called a calendar anomalies. The repetition or seasonal effect on rate of return shows that the stock price can be predicted, thus it can be exploited by investors to get the probability of a higher rate of return. This research aims to see whether calendar anomalies prevail in the Indonesian stock market by using the daily and monthly rate of return of LQ45 and the Jakarta Composite Index (JCI) with an observation period of 21 years from 1998 to 2018 and estimated using the GARCH-M model (1,1). The results of this research are the existence of daily anomalies on Monday as the day with the lowest rate of return and Wednesday as the day with the highest rate of return. In addition, we also get the results of monthly anomalies in August as the month with the lowest rate of return and December as the month with the highest rate of return

Credit Expansion and Its Impact on Income Inequality of the Provinces in Indonesia

AbstractThis research aims to study the determinants of income inequality at the provincial level in Indonesia, through observing MSMEs credit, government expenditure of education and health, school participation rate, and unemployment rate. We employed Fixed effect panel data, implementing Panel Corrected Standard Error (PCSE) and found that MSMEs credit, government expenditure on education, and school participation rate are significant in reducing income inequality. On the other hand, unemployment has been proven to have a positive impact on income inequality. However, implementation of National Health Insurance, relative to our period of observation, makes the result of government expenditure on health requires further analysis. Empirical result found that the increase in credit distribution to the MSME sector can reduce the level of income inequality and highest to lowest income ratio, on average in each province in Indonesia. The government is expected to focus on education and health budget to improve the community's quality of life.   Keywords: Gini Index, Government Expenditure, Highest to Lowest Income Ratio, MSMEs credit expansion, Panel data Ekspansi Kredit dan Dampaknya terhadap Ketimpangan Pendapatan pada Provinsi di IndonesiaAbstrak Penelitian ini bertujuan untuk mempelajari faktor-faktor yang memengaruhi ketimpangan pendapatan di tingkat provinsi di Indonesia, dengan mengamati kredit UMKM, pengeluaran pemerintah untuk pendidikan dan kesehatan, tingkat partisipasi sekolah, dan tingkat pengangguran. Dengan memanfaatkan pendekatan Fixed Effect dengan Panel Corrected Standard Error (PCSE), ditemukan bahwa kredit UMKM, pengeluaran pemerintah untuk pendidikan, dan tingkat partisipasi sekolah secara signifikan mampu mengurangi ketimpangan pendapatan. Di sisi lain, pengangguran terbukti memiliki dampak positif pada ketimpangan pendapatan. Namun, penerapan Jaminan Kesehatan Nasional, relatif terhadap periode pengamatan kami, membuat hasil pengeluaran pemerintah untuk kesehatan memerlukan analisis lebih lanjut. Di lain pihak, ditemukan bahwa peningkatan distribusi kredit ke sektor UMKM dapat mengurangi tingkat ketimpangan pendapatan dan rasio pendapatan tertinggi hingga terendah, rata-rata di setiap provinsi di Indonesia. Pemerintah diharapkan fokus pada anggaran pendidikan dan kesehatan untuk meningkatkan kualitas hidup masyarakat.   Kata Kunci: indeks Gini, pengeluaran pemerintah, highest to lowest income ratio, UMKM, ekspansi kredi

PENINGKATAN PEMAHAMAN PROGRAM BANTUAN DAN INSENTIF BAGI PELAKU USAHA UMKM, SERTA PERAN DIGITALISASI DI ERA PANDEMI COVID-19 DAN SESUDAHNYA

Abstrak: Tujuan Program Pengabdian Kepada Masyarakat ini adalah untuk peningkatan pemahaman atas program bantuan dan insentif pemerintah untuk pelaku UMKM serta peran pemanfaatan digitalisasi untuk peningkatan usaha di masa pandemi COVID-19 dan sesudahnya. Metode pelaksanaan kegiatan berbentuk sosialisasi dan penyuluhan. Kegiatan ini diikuti oleh sebanyak 52 pelaku usaha. Berdasarkan analisis awal kebutuhan para peserta diperoleh informasi bahwa upaya yang paling banyak telah dilakukan oleh peserta untuk mempertahankan usaha adalah peningkatan promosi/pemasaran dan inovasi produk. Sementara upaya mengakses bantuan dari pemerintah memiliki persentase paling rendah. Hal ini menarik untuk digali lebih jauh apakah terdapat kendala yang dihadapi ketika mengakses, kurang tersosialisasikannya program bantuan ataukah para pelaku ini enggan untuk mengakses bantuan. Sebanyak 13.5% pelaku usaha pernah mengakses insentif pemerintah, yakni mengakses Bantuan Produktif Usaha Mikro (BPUM). Hasil dari kegiatan ini diketahui sebanyak 85% peserta mendapatkan peningkatan pemahaman dan pengetahuan mengenai program insentif dan bantuan untuk jenis, cara mengakses dan pemanfataannya. Serta sebanyak 95% meningkat pemahamannya terkait pemanfaatan digitalisasi untuk usahanya. Hasil evaluasi kegiatan dilakuan melalui kegiatan interaktif tanya jawab selama kegiatan, game kuis serta umpan balik peserta melalui pengisian formulir online diakhir kegiatanAbstract: This community service program aims to improve SMEs’ knowledge on the COVID-19 government incentive programs for SMEs and on the importance of business digitalisation during and after the Pandemic. This community service program is conducted through a webinar. This activity was attended by 52 SMEs owners and operators. Based on the initial analysis of the needs of the participants, information was obtained that the most efforts made by the participants in maintaining their business were promotion/marketing improvement, product innovation. Meanwhile, efforts to access assistance from the government have the lowest percentage. It is interesting to explore further whether there are obstacles faced when accessing, lack of socialization of the aid program, or whether these actors are reluctant to access assistance. Of the 13.5% of business actors who access government incentives, most access the Micro Business Productive Assistance program (BPUM). The output of this activity is that 85% of the participants get an increase in understanding and knowledge about incentive and assistance programs for the types, ways to access and use them. And as much as 95% increased their understanding regarding the use of digitization for their business. The results of the activity evaluation were carried out through interactive question and answer activities during the webinar, quiz games and participant feedback through filling out online forms at the end of the webinar

Social media and knowledge management disruptive technology

Social media emerged as a disruptive technology that has brought many advantages in different fields beyond communication and socialization. However, social media lacks the consideration of knowledge management utility, which leads to the creation of several negative impacts such as fake news, data manipulation, Cambridge Analytica. These bad effects contribute to the decreasing level of trustworthiness, truthfulness and accountability of these disruptive technologies besides the emergence of an unstable economy, politics, and society. Therefore, knowledge management and code of ethics should govern the utilisation of this disruptive technology to overcome the negative effects. Social media use should be governed based on the objectives of Syari’ah (Maqasid Al- Syari’ah): Daruriyat, Hajiyat and Tahsiniyat. The five values of protection include: religion, life, intellect, lineage and property. The best example of interaction should be derived from the Madani Society