OIDA International Journal of Sustainable Development
Open access peer-reviewed journal
Input output analysis to determine sustainable development planning in Indonesia
Eleonora Sofilda a, Agussalim b, Muhammad Zilal Hamzah c
a Sustainable Development Management Program, Economics Faculty, Trisakti University, Jakarta, Indonesia.
b Economics Faculty, Economics Faculty, Ekasakti University, West Sumatera, Indonesia.
c Sustainable Development Management Program, Trisakti University and Indonesian Business School (STIEBI), Jakarta, Indonesia.
Volume 09, Issue 10, Pg. 11-23, 2016.
Abstract: Indonesia is one country in Southeast Asia that shows good economic growth for over a decade after the Asian Monetary Crisis. However, the growth rate start decreased in the last few years and this is known as the impact of the global crisis that occurred in 2008 and until today. The decline in economic growth occurred in 2015 were only 4.7%, compared then growth in 2014, reaching 5.2%. This condition is caused by the weakening of international demand and slowing growth of international investment in Indonesia.
As is known, Indonesia is a large country, rich with the potential of natural resources and human resources. With this condition, the opportunities of substantial of high economic growth will easily reached by Indonesia. However, Indonesia’s economy is still highly depending on the global economy. At this time, the conditions of global economy is uncertain, hence it will impact on the economic growth in Indonesia. So need for the Government of Indonesia to create another more potential sector from inside of Indonesia.
Based on the above conditions, this study aims to analyze the potential sectors, where able to trigger economic growth in Indonesia. These sectors will be evaluated from Input-Output tables Indonesia in 2010 that based on Supply and Use Tables (SUT). Input-Output is a matrix that describes the transaction of goods and services between sectors of the economy at any given time. Matrix input-output can explain the interrelationships between economic sectors (Index backward linkage and index forward linkage). A sector which has a high forward linkage, have enough thrust strong compared to other sectors, while sectors that have high backward linkage, indicates that the sector has a high dependence on other sectors. So the Input Output table can be used as a tool for projecting the economy in Indonesia. Input Output Table that compiled by the Indonesia Central Statistics Agency (BPS), hereinafter can be analyzed to determine the structure of the economy is better and integrated.
Based on the results of research on input-output tables Indonesia in 2010, the output of Indonesia reached Rp. 13,104,130 million. From the total output, the largest contribution respectively come from the Manufacturing sector in the amount of 34.15%, Construction is 14.69%, Wholesale & Retail Trade and Repair of Cars & Motorcycles is 10.37%, Agriculture, Forestry and Fisheries (identical with an agricultural country) amounted to 8.12%. While the sector that has the smallest contribution is the Water Supply, Waste Management, Waste and Recycling at only 0.37% and other service sectors amounted to 0.81%.
The National Gross Value Added in 2010, resulting in a structured starting from the Manufacturing sector with a contribution of 26.28% (biggest), sector Wholesale & Retail Trade and Repair of Cars & Motorcycles (12.4%) and Mining & Quarrying (by 12, 4%). Meanwhile, the sector of Water Supply, Waste Management, Waste and Recycling has gross value added of the smallest in the amount of 0.395%. The results also indicate that the sector which has a highest forward linkage index is Retail Trade sector, in addition to Cars and Motorcycles. Forward Linkage Index is equal to 7.04446 which mean that each increase of one unit of this sector will increase output of other sectors that use this as input sector amounted to 7.04446 units. The Manufacturing sector and Preservation of Meat have a highest backward linkage index, that is at 1.4031, followed by other Food Industry sectors.
Furthermore, the results also obtain the Leontief inverse matrix, which can be used to see the forward index and the degree of sensitivity of each sector. Degree of sensitivity is used to see how the sector generates an output to be used as input for other sectors. The sectors that have the highest degree of sensitivity is the Wholesale and Retail Trade sector in addition to Cars and Motorcycles with the degree of sensitivity of 7.08739 and is followed by Electricity sector. Based on the results obtained, the policies issued by the government is expected to strengthen stimulus directed to increase production capacity, strengthen competitiveness and improve the fiscal sustainability in the midst of global economic challenges.
Keywords: Potential Sector; Economic Growth; Input-Output Analysis; Backward Lingkage; Forward Linkage.
The effects of the implementation of earning management and subsidy policy: A case study of government company
Aminullah Assagaf a, Syarifa Yunindiah Lestari b, Muhammad Zilal Hamzah c
a Sustainable Development Management Program, Economics Faculty, Trisakti University, Jakarta, Indonesia.
b Economics Faculty, Trisakti University, Jakarta, Indonesia.
c Sustainable Development Management Program, Trisakti University and Indonesian Business School (STIEBI), Jakarta, Indonesia.
Volume 09, Issue 10, Pg. 24-34, 2016.
Abstract: Profit management is a policy which is done to affect the level of company profitability or a form of management intervention in presenting the financial statements that can flatten, raise and lower of the profit/loss statement. Technical implementation is done by taking advantage of opportunities, making accounting estimates, changing the method of accounting, shifting the cost and revenue period, hence the company’s profit can be smaller or larger as expected. Factors motivating earning management among others are bonus plan, long-term debt contract or debt covenant, political and taxation motivations, and the placement of company’s management.
This paper is a case study of State-Owned Enterprises (SOEs) that is The National Electricity Company (PLN). PLN shows its undergoing losses due to lower electricity rates compared to the basic cost of supply. That is way the government provides a financial aid or subsidies through the state budget subsidies which the amount is very big, for example in 2014 and 2015, respectively around IDR 103.3trillion and IDR 101.2trillion. Accounting records on the financial aid can be carried out by the following alternatives :(a). as operating income and (b). as additional to government’s shares subscription. The second alternative depends on interpretation, the definition used, accounting estimation opportunity and expected financial reporting objectives. Recording as operating income as it is conducted so far in which PLN gained the profit in the amount of IDR 3.2trillion in 2014 and had loss in the amount of IDR 29.52013 trillion in 2015. If the financial aid is recorded as additional to government’s shares subscription, the PLN suffered IDR 100.1trillion losses in 2014 and IDR 130.7trillion in 2015.
From earning management point of view, the recording of subsidies as operating income provides a positive perception that PLN has been successfully in managing the company in a better financial performance. On the contrary, if the recording of subsidies is consider as an addition to share subscription, the perception would appear that PLN is in unhealthy of financial performance and management fails to manage the company.
These conditions provide a challenge or impetus of management to seek for more realistic efforts to improve its financial performance, instead of expecting state budget subsidies. In addition, tariff adjustment effort will be easier to disseminate to consumers because the burden of the loss was very high. For comparison, in other countries such as TNB and Petronas in Malaysia, they are not a record in statement of income (loss) about the subsidies on operating revenues.
This paper suggested that the alternatives that are used in recording the financial aid or subsidies of the state budget must be based on policy on using a definition that does not violate the applicable accounting standards. The important one its implications for public perception able to decrease the impact on decision-making relating to the public interest, the interests of the company’s internal matters, and responses of the parties that are lack of full understanding of the information related to the financial statements. It needs a formulation from state-owned enterprises policy on earning management which having eligible reliability and relevance. Hence the financial statements can be presented fairly, beneficial and sustain to both internal and external parties of the company
Keyword: Accounting Theory; Agency Theory; Earning Management; State-Owned Enterprises; Subsidies; Income Statement.
Transforming a resource-based city into a sustainable development city: the case of Jiyuan, China
Gabriele Bendayan a, Tianlin Deng b, Margherita E. Turvani c, Fengting Li d
a, b, d UNEP TONGJI IESD, College of Environmental Science, Tongji University, 509, Mingjing Building, 1239 Siping Road, Shanghai, 200092, P.R.China.
c Department of Planning & Design in Complex Environment, IUAV, University of Venice, Santa Croce 191, Tolentini, 30135, Venezia, Italy.
Volume 09, Issue 10, Pg. 35-41, 2016.
Abstract: The National People Congress in 2013 stated the need to provide impulse and guidance for a transformation of the Chinese resource-based cities into sustainable cities. This paper considers the transformation path realized in a small Chinese resource-based city in China. The city of Jiyuan has been designated as a priority city to explore different models of sustainable development and has been upgraded to National Sustainable Development Experimental Zone. The study aims to assess its transformation path to a new status of sustainability by using an indicator especially designed for resource-based cities and inspired by the Urban sustainability index. We provide a quantitative analysis of sustainability’s drive for a five-year period that covers a pre 2013 situation and a post 2013 period.
Keywords: China, indicator, Jiyuan, resource-based cities, sustainability.
Intellectual capital and sustainable growth
In small and medium enterprises in Indonesia
Deasy Aseanty
Faculty of Economics University of Trisakti, Indonesia
Volume 09, Issue 10, Pg. 42-51, 2016.
Abstract: This research aims to determine impact of intellectual capital on sustainable growth in small and medium enterprises (SME) in Indonesia, particularly in Central Java. In Indonesia, despite SMEs’ have significant contribution to the national economy, they have not been given adequate attention as the various researchers have been biased towards larger and listed enterprises in Indonesia. Research about SME in Indonesia, especially about its relationship with its human resources, is still few comparing with any other topic.Theobjectives of the study is to to see how intellectual capital, that is reflected through innovativeness, skills, competency, and knowledge influence the SME’s sustainability itself. The research method used in this study was a descriptive study conducted to determine and describe the characteristics of several variables in a given situation. Data was collected by means of questionnaires administered to 100 SME in Central Java, which is known as the area with huge number of small and medium enterprises. Collected data was presented and analyzed using tables and bar charts as extracted from Statistical Packages for Social Sciences (SPSS).Before doing the next analyzing, we use validity and reliability test in order to avoid error that typically occurred in the analysis that is used primary data. Lastly, multiple regression analysis is used to analyze the impact of each indicator of intellectual capital on organizational sustainability of SME. This study is significant not only for the owners/managers of SMEs but also for the policy makers.
Keywords: Human Resources Management, Small and Medium Enterprise, Intellectual Capital, Sustainability, Central Java
Homestead food production (HFP) in Bangladesh: An Approach to improve diet quality and enhance micronutrients-rich sustainable food security
Mostak Ahmed a, Mohammad Abu Taiyeb Chowdhury b
a,b Department of Geography and Environmental Studies, Faculty of Biological Sciences,
University of Chittagong, Chittagong, Bangladesh.
Volume 09, Issue 10, Pg. 52-58, 2016.
Abstract: This paper deals with diet quality and micronutrient nutrition as an essential yet overlooked component of food security- i.e. safe and nutritious food. Vitamin and mineral deficiency (VMD) is at the core of massive malnutrition in the world today. ‘Hidden hunger’ is a chronic lack of micronutrients which is basically a problem of balanced and healthy diet, affecting two billion people worldwide from reaching their physical and mental potential. Several strategies to combat VMD have been undertaken in Bangladesh on both a short and interim measures. However, agricultural intervention through dietary diversification has been found to be the most viable strategy in the long-term and on a sustainable basis. There is sufficient evidence to believe that higher intake of locally available fruits and vegetables on a regular basis might reverse the VMD. The Homestead Food Production (HFP) program in Bangladesh promotes an integrated package of home gardening, with the aim of increasing the health and nutritional status of women and children. This paper presents major finding derived from an empirical study of HFP in the northern Chittagong Hill Tracts (CHTs), Bangladesh, involving 120 households represented by ethnic women of child-bearing age. The underlying objective is being to provide an effective approach to sustainable nutrition solution in the country. The Chittagong Hill-Tracts is a classic example of an underdeveloped region with an overwhelmingly rural, low income agro-based economy, seeking to achieve basic goals of development in both social and economic terms. There is ample evidence to show that HFP program in Bangladesh has improved food security for more than 5 million vulnerable people in diverse agro-ecological zone. In the study area, the HFP program has significantly improved the food security status of the sample population in terms of production, diversification, consumption and sale of nutritious foods..
Keywords: Food Security, Homestead Food Production, Micronutrients and Nutrition
A multiple regression model of statistical reasoning: A Malaysian context
Foo Kien Kheng a, Noraini Idris b, Ibrahim Mohamed c , Foo Su Lyn d
a Institute of Graduate Studies, University of Malaya, Kuala Lumpur, Malaysia.
b Universiti Pendidikan Sultan Idris 35900 Tanjong Malim Perak , Malaysia.
c Institute of Mathematical Sciences, Faculty of Science, University of Malaya, Kuala Lumpur.
d Nan Chiau High School 20, Anchorvale Link, Singapore.
Volume 09, Issue 10, Pg. 59-71, 2016.
Abstract: There is a noticeable slide in Malaysian mathematics achievement reported in the last three TIMSS studies and in particular in the area of Data and Chance. This is actually not only unique to Malaysia but also in many other countries in Asia and Africa. Recent studies have shown the influence of higher order thinking skills like reasoning and decision making on statistics achievement. Chan, Ismail and Sumintono (2014) found that statistical reasoning among Malaysian secondary school students to be poor. The purpose of this study is to determine the influence of language, and misconception on statistical reasoning using a sample size of 374 Diploma of Science students from a campus of a large Malaysian public university. A quantitative research design was employed as the objective of this study was to measure the strength and direction of the effect. The flexibility and power to analyze complex multivariate relationships concurrently are possible using a multivariate linear regression approach. The research procedure included a pilot study to determine the feasibility of the procedure and suitability of the adapted Statistical Reasoning Assessment (SRA) to the population of interest. A survey form was used to collect both primary and secondary data. The form comprised of items to collect respondent profile information, grades from relevant courses they took previously and self-reported grades of their mathematical achievement and language proficiency in the public examinations. The findings showed that students did not do well in statistical reasoning (SR) and had a substantially high level of misconception (MC) about statistics. SR (M = 38.17, SD = 13.83) and MC (M = 34.44, SD = 11.56). Language mastery (ENG) was found to be above average, (M = 3.26, SD = .73). The regression coefficients indicated that Language mastery (ENG), and Misconception (MC) significantly predicted Statistical Reasoning (SR). The best model generated was
. The coefficient of determination for the regression model was R2 = 0.309 indicating that ENG and MC alone explained 30.90% of the total variance. Squared semi-partial correlation (sr2) informs us of the unique variance explained by each of the variable. sr2 for ENG is given by (.186 X .186 = .035) while MC is calculated by using (-.493 X -.493= .243). These indices showed that ENG and MC accounted for 3.5% and 24.3% respectively of the variances. This paper concludes with a discussion on the pertinent issues related to the administration of the SRA instrument and recommendation for further research in the field of language, statistical reasoning and misconception.
Keywords: Language, misconception, regression model, statistical reasoning