ECONOMIC GROWTH, TRADE AND ENVIRONMENTAL ISSUES: TESTING ENVIRONMENTAL KUZNETS CURVE

ASEAN experiences a dynamic economic growth due to its liberalised markets. However concerns arise related to environmental issues resulting from the economic activities. It reflects tradeoffs between economic growth driven by trade and foreign direct investment (FDI), and environment. To investigate such a relation the Environmental Kuznets Curve was applied by regressing amount of carbon emission with gross domestic product (GDP), quadratic GDP, trade openness and FDI. The result reveals that amount of carbon emission is linearly and positively correlated with GDP per capita. It is predicted that as ASEAN economies grow, carbon emission increases. Trade openness is also found to contribute to carbon emission.  Keywords: Kuznets curve, carbon emission, gross domestic product, trade, foreign direct investment JEL classification number: F15, F1

DAMPAK ASEAN TRADE FACILITATION TERHADAP DAYA SAING DAERAH

Reducing import tariff rates under the ASEAN-CEPT scheme was considered not significantly to enhance trade flows within the region. Trade facilitation instruments such as mutual recognition arrangement, harmonization on customs procedure and the improvement of other trade-supporting infrastructure were then introduced by the members. Gravity model used in this paper identified a positive impact of such policies in improving trade atmosphere. Local governments can actively play an important role in supporting the conducive environment by providing an efficient bureaucratic system and facilities surrounding harbors. This then reduce transaction cost facing by the private sector and expectedly improve local economic activity in the region.Keyword: ASEAN, Trade Facilitation, Local Governmen

Impact of a Lower Oil Subsidy on Indonesian Macroeconomic Performance, Agricultural Sector and Poverty Incidences: a Recursive Dynamic Computable General Equilibrium Analysis

Budget deficit, exchange rate fluctuation and high fuel world price provides a pressure on budget capacity to stimulate the Indonesian economy. The government has designed several fiscal policies, including reducing the fuel subsidy. The study objective is to analyse the impact of reducing fuel subsidy on macroeconomic variables, agricultural sector, and income distribution. The modification on the basic model, which is a recursive-dynamic CGE model, is made in this study. The data used in the model is of the Indonesian I-O Table 2000, The Indonesian Social Accounting Matrix 2000, National Household Survey data and parameter from some other sources. The results show that the reduction in fuel price subsidy tends to increase prices of industrial outputs that highly depend on fuel, such as transportation and fishery sectors. In contrast, the change in fuel price does not influence the price of paddy. Wage of skilled labor, land rent, and capital rent decline steadily in response to the change in fuel price. Households will lose their income following the reduction in fuel subsidy, which then decreases the welfare of households. Incomes are not evenly distributed within the society (household groups). An increased fuel price at consumer level declines the Indonesian real GDP. The government should give the compensation of reducing the fuel subsidy directly to the poor people. The compensation can also be given directly to the poor people through the development of infrastructure, which may solve some supply side bottlenecks in the economy.Fuel subsidy, income distribution, recursive dynamic CGE

Sustainability Analysis of 3R Solid Waste Treatment Facility (Case Study at TPS 3R Cipaku Bogor)

Waste management in Indonesia is regulated by constitution number 18 issued in 2008 concerning solid waste and for management of domestic or similar waste is operationally strengthened by the issuance of government regulation number 81 issued in 2012 concerning domestic solid waste management and similar domestic solid waste. Managingreducese, re-us,e, and recycling solid waste treatment facilities (TPS 3R) is a pattern of solid waste management approaches involving active roles and empowerment of community capacities. The sustainability analysis of the TPS 3R waste management system is needed to provide an overview for stakeholders in determining for improving waste processing performance. This research is important to know the sustainability status of the TPS 3R implementation activities that meet sustainability indicators from a scientific point of view. In addition, research related to the sustainability of the implementation of TPS 3R has never been carried out yet. The purpose of this study is 1) identify identifying actors to determine the sustainability of TPS 3R, 2) assess the assassessability of TPS 3R waste management systems, and 3)set recommendations for the TPS 3 waste management system. Collecting data was carried out from April to November 2017 and continued from June to July 2018. The research location was determined at TPS Cipaku located at Cipaku, South Bogor Sub-District (serving an unorganized d housing area). The sustainability indicatowerewas determined by an expert on the judgment method and sustainability status using the rapid appraisal techniques for fisheries (RAPFISH) method while the recommendations developed TPS 3R using the analytical hierarchy process (AHP) method. The conclusions of this study were as follows: 1) to assess the sustainability of TPS with ly of 33 indicators, 2) the sustainability status of TPS 3R Cipaku TPS was good;  3) The recommendation development based on the priority analysis at TPS 3R Cipaku the priority respectively were enhancing financial independence, the role of the parties, sorting waste (including hazard waste), enhancing quality of input and managing conflicts

Application of Input Management and Integrated Pest Management on Paddy Production: Case Study in Kampar Subdistrict, Kampar District, Riau Province

The attack levels of plant pest organisms (PPO) highly influence the productivity of paddy rice farming. With the increasing human awareness of the dangers of using pesticides, especially for the environment and human health, PPO control prioritizes preventive control by applying the principles of integrative pest management (IPM), which prioritizes the application of healthy crop cultivation, routine observation, utilization of natural enemies and farmers as IPM experts. The use of inputs by farmers in production activities can affect the resulting production. This study aimed to estimate the effect of input management, IPM, and non-IPM on paddy rice production. The analysis used in this study was the Cobb-Douglas production function with the multiple linear regression method. Partially, each variable of land area, seeds, inorganic fertilizers, and dummy variables of IPM or non-IPM farmers significantly affected paddy rice production in Kampar Subdistrict. Variables of organic fertilizers, natural pesticides interacted with frequency, chemical pesticides interacted with frequency, and labor partially had no significant effect on lowland paddy rice production in Kampar Subdistrict. It is necessary to re-enact counseling on IPM in Kampar Subdistrict, Kampar District, to apply IPM principles that prioritize preventive PPO control to avoid the dangers of using pesticides for the environment and human welfare. Keywords: Cobb-Douglas, plant pest organisms, integrative pest management, non-IPM, rice paddy productio

Assymmetric effect exchange rate to Indonesian agriculture subsector

This study explores the asymmetric effect on the rupiah exchange rate on every subsector agriculture export in Indonesia during 2006-2020. The non-linear ARDL method is used in this study to analyze the asymmetric relationship between exchange rate and export. NARDL method includes short-run and long-run coefficient estimates and embraces the asymmetric effect. The previous studies generally used the linear models on the aggregated data and ignored the differences in each export of the agricultural sub-sector, then they offered ambiguous results. The latest studies have preferred to use the method of NARDL on the agricultural sector in general data. Instead of using agricultural export data for each subsector, this paper considers subsector export data of agriculture. The estimated NARDL results indicate an asymmetric effect of the rupiah exchange rate on exports of the agricultural sub-sector in the long run. In general, there is no asymmetric effect in the short run. Generally, depreciation and appreciation of the Rupiah have a negative effect on exports of the agricultural sub-sector in the long run. However, rupiah appreciation positively impacts lag 2, and depreciation caused a different effect on each sub-sector. The NARDL results suggest that positive movements have lesser impacts than those of negative movements in the exchange rate on the agriculture sector both in the short and long ru

STRATEGI MENINGKATKAN QUALITY ASSURANCE PADA SATUAN PENGAWASAN INTERNAL PERUM JASA TIRTA II JATILUHUR: STRATEGY FOR IMPROVING QUALITY ASSURANCE ON THE INTERNAL AUDIT UNIT OF PERUM JASA TIRTA II JATILUHUR

This study aimed to formulate alternative strategies and determine priority strategies to improve internal audit quality assurance. This was a case study on Jasatirta II Internal Audit by evaluating the level of quality assurance in 2017. The analysis used was SWOT, EI, Fishbone and Analytic Network Process (ANP). The purposive judgment samples included Auditors, Board of Directors and Commissioners, Management, and Academics. The results showed that problems in quality assurance from 6 aspects of the Internal Auditor Capability Model (IA-CM) were: from roles and services aspects: less maximum audit service (53.10%) and other services (60%), from governance structure aspects: inadequate infrastructure (67.70%), from organization’s cultural relationship aspects: work culture fulfillment (51.70%), while aspects of HR management, professional practice, as well as performance management and accountability were still within reasonable limits (above 60%). The SWOT analysis in quadrant I and Matrix I/E in cell IV showed that the position of the organization grows, develops, and strong. Therefore, the fishbone diagram raised 3 alternative strategies to improve IA quality assurance: strengthening the Board of Directors and Commissioners, strengthening infrastructure through IT, and focusing on strengthening independent HR. Determination of the strategy chosen through ANP was the strengthening of support from BOD/BOC (40.98%). Keywords: ANP, fishbone analisys, internal audit, internal/extenal analisys, quality assurance, SWOT Analisy

Influence of Intellectual Capital on Company Performance of Banks and Insurance Companies in Indonesian Stock Exchange 2010-2014

The phenomenon of intellectual capital has grown after the change of economic characteristics that were previously based on labor into a knowledge-based economy. This study aimed to analyze the company's intellectual capital in the banks and insurance companies. The effect of intellectual capital on the financial performance of companies was tested using panel data for companies listed in the Indonesian Stock Exchange (BEI) 2010-2014. The selection for sample used purposive sampling method. This study used a model of Value Added Intellectual Coefficients (VAIC) to measure intellectual capital. Ratio analysis used to measure the financial performance. Return on Assets (ROA) used as profitability variable and Assets Turn Over (ATO) used as productivity variable. The results of this study indicated that the contribution of intellectual capital depended on the type of industry. Keywords: intellectual capital, VAIC, financial sector, Indonesian stock exchang

Identifying spatial correlation and factors influencing regional economic growth in Southern Sumatra

This study analyzes the spatial autocorrelation of economic growth and labor and the factors that influence economic growth between districts/cities in the Southern Sumatra region. The data used is secondary data sourced from the Bureau of Central Statistics. The method used is a quantitative approach by applying the Moran Index, LISA, and multiple regression models. This study shows that the spatial autocorrelation of economic growth did not occur in the Southern Sumatra region. Meanwhile, the spatial autocorrelation of labor occurs in this region so that it affects each other. This study’s finding that jointly the variables of potential market indicator, fixed capital investment, human capital, and labor force participation rate have a significant effect on GRDP. Likewise, partially the potential market indicators, capital fixed asset investment, human resources, and labor force participation rates have a positive and significant effect on GRDP

The Role of Rice’s Price in the Household Consumption in Indonesia

The purpose of the study was to analyze the role of rice’s price in household consumption patterns in Indonesia. The method used was the Quadratic Almost Ideal Demand System (QUAIDS). The data used were obtained from the National Social Economy Survey in 2016. The results show that when the price of rice increases by one percent, the demand for other carbohydrates, eggs-milk-beans, fruits also Cigarette and processed foods will be increase. Meanwhile, in other groups, when the price of rice rises, the demand will go down. Thus, it can be concluded that households still prioritize rice consumption in their daily consumption patterns compared to other commodity groups. Therefore, the government should develop policies that encourage people to consume more diverse food groups