The Impact of Exchange Rate Volatility on Indonesia’s Exports to the USA: An Application of ARDL Bounds Testing Procedure

This paper investigates the long-run and short-run impacts of exchange rate volatility on Indonesia’s exports of priority commodities to the United States of America over the monthly period 1997-2005. Estimates of cointegration relations are obtained using ARDL bounds testing procedure. Estimates of the short-run dynamics are obtained using an error-correction model. The results show significant positive and negative coefficients among the range of commodities. However, in the long-run, majority of commodities tend to support the traditional view that higher exchange rate of volatility leads to higher cost and to less foreign trade. The net effect of exchange rate uncertainty on production and exports depends on the degree of relative risk aversion of the exporter of various commodities. This ultimately influences the reallocation of resources by participants.Exchange rate volatility, exports, ARDL bounds testing, error-correction model, Indonesia

The effect of oxy-carbon injection on EAF efficiency

Foamy slag formation in the electric arc furnaces of the Billet steel Plant of PT. Krakatau Steel, Indonesia, was investigated to find optimum conditions of injection practice and flux additions that would decrease electrical energy consumption and increase yield. The investigation was carried out in the 65 ton/30 MVA furnaces, with and without the oxy-carbon lance, and in the former also varying burnt lime: dolomitic lime slag additions. The results showed that, compared with manual lancing, the use of oxy-carbon lance reduced electrical energy consumption by 83 kWh/ton liquid steel, and increased yield by 5.6%

The impact of exchange rate volatility on Indonesia\u27s exports to the USA: an application of ARDL Bounds testing procedure

This paper investigates the long-run and short-run impacts of exchange rate volatility on Indonesias exports of priority commodities to the United States of America over the monthly period 1997-2005. Estimates of cointegration relations are obtained using ARDL bounds testing procedure. Estimates of the short-run dynamics are obtained using an error-correction model. The results show significant positive and negative coefficients among the range of commodities. However, in the long-run, majority of commodities tend to support the traditional view that higher exchange rate of volatility leads to higher cost and to less foreign trade. The net effect of exchange rate uncertainty on production and exports depends on the degree of relative risk aversion of the exporter of various commodities. This ultimately influences the reallocation of resources by participants

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

Pengaruh Perbedaan Warna Cahaya Terhadap Pertumbuhan Kultur Spirulina SP. [ the Effect of Light Colour to Growth Culture of Spirullina SP. ]

Spirulina sp. is a microalgae that has spread widely, and can live in brackish waters, marine and freshwater. Spirulina is often the dominant species and can cause bloom (Ciferri, 1983 in Hu, 2004). Spirulina sp. have the ability to photosynthesize and convert light energy into chemical energy in the form of carbohydrates. The best environmental conditions for growth are in areas rich in sunlight, rainfall is, rich in carbon dioxide and temperature in the range of 25-35 ° C and pH ranging from 7.2 to 9.5. Spirulina sp. able to survive at salinity between 20-70 ppt, pH between 9 - 11 (Ciferri, 1983 in Richmond, 1986). This study aimed to know To know the color of light affect the growth of Spirulina sp. and the light color is best in promoting the growth of Spirulina sp. Effect of different colors of light can affect the growth of Spirulina sp. Methods The study is an experiment with the experimental design used was CRD (Completely Randomized Design) with five treatments and three replications with different colors of light that is A (white), B (green), C (blue), D (red), E (yellow). The color of light have different wavelengths, absorption by the different pigments and different penetration capabilities