The Impact of Government Expenditure on Agriculture Marketing and Supply Chain Management: An Application of Two-Stage Least Approaches

Zakiah,Jumadil Saputra,Fauzan 대한산업공학회 2019 Industrial Engineeering & Management Systems Vol.18 No.3

The purpose of this quantitative study is to investigate the role of government expenditure on food security and its model based on the Input Demand Function (IDF). This study uses secondary data collected from the Bureau of Statistics Centre of Indonesia, which consists of 23 regencies/municipalities in Aceh Province for the 2007-2016 period. The data is analysed using Two-Stage Least Square (2SLS). The analysis shows that food security in terms of availability, accessibility, and food utilisation was influenced by the farmers’ decisions regarding production inputs. In order to increase food availability, the government is partially responsible for the costs incurred by farmers for producing food. Furthermore, to raise food accessibility, utilisation, and farmers’ income, food prices need to be regulated such as the price of grain for farmers or the price of rice for producers. To conclude, the government needs to buffer the stock board and ensure controls are in place to stabilise food prices.

Effects of Human Capital and Innovation on Economic Growth in Selected ASEAN Countries: Evidence from Panel Regression Approach

Nor Fatimah CHE SULAIMAN,Jumadil SAPUTRA,Suriyani MUHAMAD 한국유통과학회 2021 The Journal of Asian Finance, Economics and Busine Vol.8 No.7

Human capital and innovation capacities are essential elements and one of the sustainable approaches to driving economic growth. However, there is debate among scholars concerning these two factors in fostering economic growth. This study investigates the relationships between human capital and innovation capacity and economic growth in selected ASEAN countries, namely, Malaysia, Thailand, and Indonesia. Economists widely discussed the interrelation of human capital and innovation. A large body of literature stated that human capital is an essential factor and engine of economic growth. Innovation has become key in transforming the economic development of developing countries. We analyze human capital (HC) and innovation capacity (INC) using static panel data analysis. The data analysis shows that the fixed-effect model is the best model in this study. Further, human capital (HC) has a significant positive relationship with economic growth. Meanwhile, innovation capacity has no significant relationship with economic growth. We also found that Malaysia’s coefficient of human capital and innovation capacity is higher and more efficient than in Thailand and Indonesia. In conclusion, human capital and innovation capacity are crucial elements for measuring economic growth. Skilled human capital contributes significantly to the economic growth and economic development of a nation.

Why Does a Child Labor Exist in Aceh Province, Indonesia?

T. Zulham,Said Muhammad,Diana Sapha,Fitriyani,Jumadil Saputra 대한산업공학회 2019 Industrial Engineeering & Management Systems Vol.18 No.3

Child labor is a pervasive issue around the world, especially in developing countries. It is a wide phenomenon issue in which many countries have a similar problem related to child labor. The purpose of this study is to examine the factors determining child labor in Aceh Province. The data used is the primary data of the National Social Economic Survey (SUSENAS) 2016 conducted by the Central Bureau of Statistics. The dependent variable is children aged 10-17 years, while the independent variables are the educational level, the role of child as the head of the household, gender, residence area, single parent status, and age. The logistic regression model is used to describe the relationship between the independent variable (child labor and not child labor) with a number of explanatory variables. The result indicates that there is a relationship between child labor and all variables used in this model. Nonetheless, status as head of household and single parent woman are irrelevant as the significance value (α) is less than 5% by using the Wald Test Statistic. Thus, it is recommended to do some improvements in young people’s education system. Moreover, government policies that protect the human rights of child labors need to be done as a form of government intervention.

Investigating the Public Spending and Economical Growth on the Poverty Reduction in Indonesia

Said Muhammad,T. Zulham,Diana Sapha,Fitriyani,Jumadil Saputra 대한산업공학회 2019 Industrial Engineeering & Management Systems Vol.18 No.3

Poverty and income inequality are being one of the most challenging issues in many developing countries, including Indonesia. Considering the higher level of the poverty rate in Indonesia, the study about poverty reduction is crucial and currently under discussion in previous studies. Thus, this study is written to examine what is education and health budgets could be reducing the poverty rate in Indonesia. The study utilizes annual data gathered from the Central Bureau of Statistics over the 2007–2017 period and analyzed using panel data by assisting the Eviews-10. The empirical result finds that the budget allocated for education and health significantly reduce the poverty rate in Indonesia. Therefore, it is suggested that to further reduce the poverty level, the government should allocate more budget of education and health for the poor and there is a need to monitor the public service performance with the aim the allocation of expenditure can be more efficient and effective. Besides, it is necessary to increase the number of pro-poor programs such as free public health and education insurance to fulfill the basic needs of the poor.

Mean-Var Investment Portfolio Optimization Under Capital Asset Pricing Model (CAPM) with Nerlove Transformation: An Empirical Study Using Time Series Approach

Sukono,Kankan Parmikanti,Lisnawati,Sonny Hersona Gw,Jumadil Saputra 대한산업공학회 2020 Industrial Engineeering & Management Systems Vol.19 No.3

This paper discusses the problems of Mean-VaR investment portfolio optimization under the Capital Asset Pricing Model with Nerlove transformation by using a time series approach. It assumed that the market return follows the pattern of the time series, whereas stocks return analyzed following the pattern of capital asset pricing models with Nerlove transformation. So that the mean of the market return can be estimated by using the model of Autoregressive Moving Average (ARMA), while volatility can be estimated using a model of Generalized Autoregressive Conditional Heteroscedasticity (GARCH). As a risk-free asset here used the interest rate of Indonesia Bank (BI rate), together with the market return is used to estimate the CAPM regression equation for each stock analyzed. Based on the estimator of the CAPM regression equation is used to estimate the mean and variance of the return value of each stock. Estimator mean and the variance value of each stock, as well as the estimator value of the covariance between the stocks, will be used for investment portfolio optimization process. Investment portfolio optimization process is based on a model of Mean-VaR by risk tolerance factor. The goal is to determine the weight composition of the optimum of the investment portfolio. Based on the optimization process was obtained the composition weight of investment portfolio optimum. This composition weight can be taken into consideration in decision making for investors to invest in particular on the assets that were analyzed here.

Does the World Price of Crude Palm Oil and Total of Production Determine Palm Oil Marketing Margins in Indonesia?

Syahril,T. Zulham,Ishak Hasan,Jumadil Saputra,Helmi Noviar,Okta Rabiana Risma 대한산업공학회 2020 Industrial Engineeering & Management Systems Vol.19 No.3

This study clarifies the issue of low-profit margins obtained by palm oil farmers due to price fluctuations through ex-amining the multivariate relationship between the world price of Crude Palm Oil, Total of Crude Palm Oil (CPO) pro-duction, Palm oil price of Fresh Fruit Bunches and Marketing Margin applying the Wald test approach. Then with a cointegration approach trying to explore how the short-term balance and the long-term marketing margin price for the period January 2008 to December 2017. The findings prove that: (i) in the long run the world CPO price, the Indone-sian CPO export price, the price of Indonesian palm oil FFB have a significant influence on the palm oil marketing margin price; whereas in the short term, the marketing margin price one month before, the current Indonesian CPO export price and one and four months before, the current price of oil palm (fresh fruit bunches or FFB) and one and four months earlier. (ii) Multivariate causality test shows that Indonesian CPO production has a one-way causality relationship with the volatility of world CPO prices. The results of this study are an effort to encourage an increase in the price of FFB at the level of oil palm farmers.

Investigating the Cash Holding Factors of Mining Industries in Indonesia Stock Exchange

Said Musnadi,Ghazali Syamni,Nasir,Faisal,Jumadil Saputra 대한산업공학회 2020 Industrial Engineeering & Management Systems Vol.19 No.3

The purpose of this study is to explore determinant factors that enable mining companies for cash holding in Indonesia. The panel data gathered from 40 financial statements of mining companies in Indonesia for the period 2013-2017 with a total of 200 observations. The panel data regression analysis used to examine and select the best model by utilizing the common effect model, fixed effect model and random effect model. The results of the study found that a cash holding company was determined by the return on assets, return on equity, net capital working, firm size, leverage and cash conversion cycle. All research variables mentioned above support trade-off theory except return on assets. The limitation of this study emerged since it made no separate discussion between the largest and the smallest cash holding companies. The results of this study have implications for management and companies to investigate other indicators enabling companies to conduct cash holding. Some suggested variables are macroeconomic factors, payment of dividends and investment opportunities and separation of large and small companies. The management of mining companies in managing cash holding was required to observe closely to the independent variables that match the trade-off or pecking order theory even the free cash flow theory.

Forecasting Model of Gross Regional Domestic Product (GRDP) Using Backpropagation of Levenberg-Marguardt Method

Sukono,Betty Subartin,Ambarwati,Herlina Napitupulu,Jumadil Saputra,Yuyun Hidayat 대한산업공학회 2019 Industrial Engineeering & Management Systems Vol.18 No.3

The GRDP is an important indicator to measure the economic growth of a region so that the GRDP forecast future needs. This paper intends to choose a better method for forecasting the GRDP of Bandung Regency. The method used in this study is the Autoregressive Integrated Moving Average (ARIMA) time series model and the Backpropagation of Levenberg-Marquardt or Feed Forward Neural Network (FFNN) method. To measure the accuracy of forecasting carried out using Mean Absolute Percentage Error (MAPE). The GRDP data obtained from the Bandung Regency Central Bureau of Statistics, in the years 2010-2016. The results of the analysis using the ARIMA model, obtained ARIMA (0, 1, 1) model, with MAPE of 3.90%. Meanwhile, analysis using Backpropagation of Levenberg-Marquardt obtained FFNN (1, 5, 1) model, with MAPE of 3.88%. Because the MAPE value in the FFNN (1, 5, 1) model is smaller than the MAPE value in the ARIMA (0, 1, 1) model, it can conclude that the Backpropagation of Levenberg-Marquardt method better used in forecasting the GRDP of Bandung Regency.

The Agricultural Commercialisation and its Impact on Economy Management: An Application of Duality-Neoclassic and Stochastic Frontier Approach

Helmi Noviar,Raja Masbar,Aliasuddin,Sofyan Syahnur,T. Zulham,Jumadil Saputra 대한산업공학회 2020 Industrial Engineeering & Management Systems Vol.19 No.3

Rice is the main source of livelihood and staple in Indonesia. This study examines the welfare of rice farmers ‘house-holds and the availability of rice in terms of domestic rice production. We analyse empirical evidence that households in the rice subsector have not achieved a sufficient level of commercialisation in terms of production. Duality-neoclassic and stochastic frontier approach were employed to evaluate the inefficiency and commercialisation of farmer households in rice production. From the three models, it shows that the level of commercialisation of rice farmers is still low and requires a strong policy instrument to improve commercialization and increase production.