Journal of Indonesian Applied Economics <p>Journal of Indonesian Applied Economics (JIAE) is an online journal sponsored by the Faculty of Economics and Bussiness, Universitas Brawijaya. The purpose of this journal is to enhance the study of economic issues on all aspects of applied economics and finance. The referred Journal emphasizes quality, tests of theories, policy implications, and clarity. For further information and submission process, don't hesitate to <a href="" target="_self">contact us</a>.</p> <p>Online ISSN <a href="">2541-5395</a> | Print ISSN <a href="">1907-7947</a></p> en-US (Silvi Asna Prestianawati) (Muhammad Fawwaz) Tue, 28 Feb 2023 15:59:53 +0000 OJS 60 The Influence of Financial Literacy, Financial Technology on Financial Inclusion Mediated by Cashless Policy <p><strong>Purpose</strong></p> <p>The study aims to review access to payment system services, awareness and knowledge in the Sempaja Shopping Tourism Area so that it can evaluate appropriate policies to transform the economy cash-based to a non-cash economy</p> <p><strong>Design/methodology/approach</strong></p> <p>The research method used in this research is quantitative research with the nature of research is explanatory research. Data collection techniques are questionnaires and interviews.</p> <p><strong>Findings</strong></p> <p>Financial literacy, financial technology, cashless policy, and financial have strong and positive effects to the objectives of the study.</p> <p><strong>Research limitations/implications </strong></p> <p>This research has limitations in the sampling were not all of these MSMEs have switched to digital so for further research it would be better to use a sample of MSMEs that have switched to digital use.</p> <p><strong>Originality/value</strong></p> <p>This study seeks to evaluate the implementation of bankaltimtara policies with a view to assessing the prospects and challenges that are factors in encouraging financial inclusion.</p> Adhela Ghina Rachmatika Copyright (c) 2023 Journal of Indonesian Applied Economics Tue, 28 Feb 2023 00:00:00 +0000 Indonesian Creative Economy 2025: Creative Industries MSMEs Competitiveness Strategy Towards International Markets Through Soar Analysis <p><strong>Purpose</strong></p> <p>This research aims to formulate a Creative Industries Development Strategy towards the International market as an economic driver in Indonesia.</p> <p><strong>Design/methodology/approach</strong></p> <p>This paper is carried out with a qualitative approach through the SOAR method, which is a strategic planning method used to evaluate strengths, opportunities, aspirations and results in the development of creative industries in Indonesia.</p> <p><strong>Findings</strong></p> <p>The result shows that producing the start-up S-A is a strategy obtained between Strengths (strengths) and Apirations (aspirations).</p> <p><strong>Research limitations/implications </strong>The limitation of this study is the use of SOAR analysis which only focuses on evaluate strengths, opportunities, aspirations and results rather than weaknesses or threats.</p> <p><strong>Originality/value</strong></p> <p>This study analyzes the strengthening of the Creative Industry Sector Market in Facing Creative Economy 2019-2025.</p> Muhammad Syah Budi Copyright (c) 2023 Journal of Indonesian Applied Economics Tue, 28 Feb 2023 00:00:00 +0000 The Determinants of Environmental Quality in Indonesia <p><strong>Purpose</strong></p> <p>This research analyzes the determinants of environmental quality in 32 Indonesian provinces in the period between 2013-2019.</p> <p><strong>Design/methodology/approach</strong></p> <p>This research method used an ordinal logistic regression analysis approach where the dependent variable consists of cumulative predicate categories based on the EQI assessment interval as determined by the Ministry of Environment and Forestry.</p> <p><strong>Findings</strong></p> <p>This study finds that the per capita GDRP and poverty have positive and significant effects on the Environmental Quality Index. However, The Human Development Index and expenditures in environmental and forestry functions have negative and significant effects.</p> <p><strong>Research limitations/implications </strong></p> <p>Based on the findings, the local and central government, through the Ministry of Environment and Forestry in cooperation with business people required to conduct the Environmental Impact Analyses, should participate in PROPER.</p> <p><strong>Originality/value</strong></p> <p>This study will show how the inter-components of economic development, social development, income and expenditure on environmental and forestry functions affect each category of the Environmental Quality Index (EQI) predicate.</p> Peris Frengki Butarbutar Copyright (c) 2023 Journal of Indonesian Applied Economics Tue, 28 Feb 2023 00:00:00 +0000 The Effect of Natural Disaster on Regional Economic Growth, Unemployment, Poverty, and Human Development Index in Thirty Indonesian Provinces <p><strong>Purpose</strong></p> <p>The objective of this research is to identify the effects of natural disasters on several variables. The impacts were analyzed both directly and indirectly.</p> <p><strong>Design/methodology/approach</strong></p> <p>Using Partial Least Squares, natural disaster, regional economic growth, poverty, unemployment, and human development index as the variables with their own indicators.</p> <p><strong>Findings</strong></p> <p>This study finds that the direct effects of natural disasters are a significant reduction in regional economic growth, an insignificant increase in poverty, and a significant increase in unemployment. Furthermore, natural disaster have varying results in indirect effects.</p> <p><strong>Research limitations/implications </strong></p> <p>The limitation of this research is the use of natural disasters which only involves three types of natural disasters, as well as thirty provinces in Indonesia.</p> <p><strong>Originality/value</strong></p> <p>This study uses regional economic growth, unemployment, and poverty variables as intervening variables to determine the effect of natural disasters on the human development index which there are still not many similar studies on the disaster economics approach.</p> Aulia Puja Ilham Copyright (c) 2023 Journal of Indonesian Applied Economics Tue, 28 Feb 2023 00:00:00 +0000 The Effect of the Effective Corporate Tax Rate Toward Investment Decision in Indonesian Public Company <p><strong>Purpose</strong></p> <p>This research aimed to determine the effect of the effective tax rate in public company investment in Indonesia.</p> <p><strong>Design/methodology/approach</strong></p> <p>The research was conducted using firm data during 2008-2020 and considered the long-term investment concept. Meanwhile, the cross-section of 672 companies and the ordinary least square technique were used to get the estimation.</p> <p><strong>Findings</strong></p> <p>The estimation result showed that the effective tax rate has significant negative effect on fixed asset investment. If effective tax rate decrease, it can be because the company gets tax rate reduction incentives, conduct accelerated depreciation, fiscal reconciliation on the financial statement which can increase fixed asset investments. Moreover, the estimation also showed that the age of the company is able to strengthen the relationship between effective tax rate and company investment. The difference in domestic and foreign companies does not affect the elasticity ETR toward investment.</p> <p><strong>Research limitations/implications </strong>Based on the estimation result mentioned, it is expected to provide guidance in implementing incentive tax, which can encourage public company investment.</p> <p><strong>Originality/value</strong></p> <p>There are many studies on the effect of income tax rates, but the results cannot be used specifically in Indonesia since the tax sensitivity may be different based on the development level of the country and the characteristics of the company.</p> Yasinta Wahyu Pratiwi, Khoirunurrofik Copyright (c) 2023 Journal of Indonesian Applied Economics Tue, 28 Feb 2023 00:00:00 +0000 Measuring the Effectiveness of Electricity Distribution in Indonesian Provinces using DEA Bootstrap <p><strong>Purpose</strong></p> <p>The aims of this research are to measure the efficiency of electricity distribution in 33 Indonesian provinces from 2010 to 2019.</p> <p><strong>Design/methodology/approach</strong></p> <p>The efficiency was measured using a two-step bootstrap analysis, i.e. DEA BCC and DEA Bootstrap.</p> <p><strong>Findings</strong></p> <p>This study finds that the efficiency estimation uses DEA BCC overestimate and that the proximity between electrical sources and customers becomes one of the supporting factors for the electricity distribution process and reduces losses. Furthermore, workforce input, nameplate capacity, and network length will be adjusted to customers; electricity demand needs as a component of the electricity distribution process from plants to consumers.</p> <p><strong>Research limitations/implications</strong></p> <p>This study uses the output of the number of customers and the amount of electricity distributed while the input variables use the amount of labor, installed capacity, and length of the distribution network.</p> <p><strong>Originality/value</strong></p> <p>This study uses DEA Bootstrap and the variables used in the study is a combination of variables that have been proven to affect electricity distribution and have never been applied in Indonesia.</p> Amalia Rahmawati, Setyo Tri Wahyudi, Rachmad Kresna Sakti Copyright (c) 2023 Journal of Indonesian Applied Economics Tue, 28 Feb 2023 00:00:00 +0000 Role of Commuting Time on Explaining Gender Wage Gap in Indonesia <p><strong>Purpose</strong></p> <p>This research aims to identify the role of commuting time on explaining gender wage gap in Indonesia</p> <p><strong>Design/methodology/approach</strong></p> <p>Using dataset from National Labor Survey (Sakernas) 2019, this research estimated 33.6% wage gap between men and women.</p> <p><strong>Findings</strong></p> <p>The inclusion of commuting characteristics showed an increase of explained gender wage gap proportion from 14.2% to 22.6%. The commuting time variable contributes to 14.6% of the explained wage gap.</p> <p><strong>Research limitations/implications </strong></p> <p>From the results it can be identified that the increase of women’s commuting time has the potential to reduce gender wage gap in Indonesia.</p> <p><strong>Originality/value</strong></p> <p>Gender wage gap is a labor market discrimination issue that persists worldwide, including Indonesia. Previous researches pointed out that the gender wage gap in Indonesia is mainly composed of parts unexplained by demographic, human capital, and job characteristics. While the commuting characteristics have the potential to explain more of the gender wage gap, it is still underexplored in Indonesia.</p> Biyan Shandy Paramayudha Copyright (c) 2023 Journal of Indonesian Applied Economics Tue, 28 Feb 2023 00:00:00 +0000 New Face of Job Quality Challenge in India: Gig Worker Studies <p><strong>Purpose</strong></p> <p>This research aims to describe the gig worker challenge and opportunity including job quality in India remembering that gig work is spreading rapidly among nations and has been the source of earning for most of the destitute population.</p> <p><strong>Design/methodology/approach</strong></p> <p>This research uses qualitative method with descriptive approach. Author used semi-structured interview to 10 (ten) informants by using purposive sampling with snowballing technique. The informants are the GIG worker who work around Indian metro cities.</p> <p><strong>Findings</strong></p> <p>The way their economic, psychological and social aspects are grilled with least positive chances of betterment has been our concern. The three aggregate dimensions mainly focussing towards, economic, psychological and social well-being of employees.</p> <p><strong>Research limitations/implications </strong></p> <p>This research may use for government to improve the job quality of GIG worker. If nations could not come up with formal and permanent employment opportunities, the job quality of gig economy can at least be enhanced.</p> <p><strong>Originality/value</strong></p> <p>This study describes comprehensively by using interview to reveal challenge and opportunity in gig worker job quality in India.</p> Farhat Haque, Abdul Rahman Dard Copyright (c) 2023 Journal of Indonesian Applied Economics Tue, 28 Feb 2023 00:00:00 +0000