Volume 12 Issue 08

OIDA International Journal of Sustainable Development
Open access peer-reviewed journal 

Fuel and Gas Subsidy Budget Reallocation on Infrastructure Development Budget towards Indonesian Economic Growth and Macroeconomic Indicators

Boedijono Kartolo 1, Muhammad Zilal Hamzah 2, Eleonora Sofilda 3
1, 2  Economics Doctoral Program, Economics and Business Faculty, Universitas Trisakti, Indonesia.
2 Sekolah Tinggi Ilmu Ekonomi Bisnis Indonesia, (Indonesian Business School), Jakarta, Indonesia.
 3 Master of Economics Program, Faculty of Economics and Business, Universitas Trisakti, Indonesia.

Volume 12 Issue 08, Pg. 11-20, 2019.

The government of the Republic of Indonesia has one policy which always gets the main attention from the goverment itself, researchers, politicians, as well as societies. The policy is the providing of fuel and gas subsidies. This policy aims to reduce the price of fuel and gas, which in turn has an impact on increasing the purchasing power of the people. This increase in purchasing power is expected to stimulate economic sector activities and subsequently be able to increase the country’s economic growth. In 2015, based on the Presidential Regulation of the Republic of Indonesia Number 191 of 2014, the government imposed a reduction in the budget for fuel and gas subsidies. The budget is then allocated to other sectors, one of which is the infrastructure development budget. This is done by the government because infrastructure development is seen as more productive, which in the end will also be able to increase the country’s economic growth.

This paper aims to analyze the impact of the fiscal policy on the reallocation of the fuel and gas subsidy budget to the infrastructure budget to national economic growth along with macroeconomic variables such as: (i) the level of public consumption; (ii) the level of investment; (iii) level of government expenditure; (iv) the level of import; (v) the level of export; (vi) level of government revenue; (vii) level of employment; and (viii) the level of real Gross Domestic Product. The data used in this paper are 2010 Input-Output data as well as infrastructure development data for year 2012 until year 2016. The method uses in this paper is quantitative descriptive and uses the WAYANG model of the Computable General Equilibrium (CGE) method and comparative-static simulation in processing data.

The results of this paper show the influence of fiscal policy implementation can be seen as follows: (i) the level of public consumption does not change in the short term but increases in the long term; (ii) there is an increase in investment in the short and long term; (iii) a decrease in government spending in the short and long term; (iv) a decline in imports in the short and long term; (v) a decline in exports in the short and long term; (vi) there is a decrease in government revenues from taxes in the short and long term; (vii) there is a decline in short-term and long-term employment absorption; (viii) there is an increase in real GDP in the short term by 0.225% and in the long term by 0.281%.

The policy implications show that the implementation of fiscal policies in general can increase national economic growth, even though shows a decline in several macroeconomic variables. These finding can be an input for policy makers to prepare the other policies which can support more effective and able to increase some of these macroeconomic variables.

Keywords: Fiscal Policy, Economic Growth, Budget Subsidize, Fuel and Gas, Input Output Analysis, Computing Generel Equilibrium

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ASA Philippines’ Water and Sanitation Financing Program:  Leveraging A Quality of Life Financing to Obtain Financial Gain

Kamrul HasanTarafder 1, Barbara Bulahan Custodio 2
ASA Philippines Foundation, Ortigas Center, Pasig City, Philippines.
Corresponding author: 1 email:  kht@asaphil.org  2email barbara.custodio@asaphil.org

Volume 12 Issue 08, Pg. 21-46, 2019.

Background: ASA Philippines Foundation is a not-for-profit organization devoted to helping an increasing number of poor Filipino families rise out of poverty by providing microfinance to help them establish or improve their own microenterprises. This shall hopefully result in increased family income and savings while giving them greater access to life support goods and services in the most cost-effective and sustainable manner. Established in 2004, ASA Philippines serves more than 1.8 million underprivileged clients through its more than 1,650 branches spread across all 82 provinces of the Philippines. The Foundation offers various types of financing including a regular microbusiness, agriculture, Shari’ah, education, home, and solar home system.

The Foundation’s branches are grouped into four main operating areas:

  • Luzon 1 covers all areas north of Metro Manila,
  • Luzon 2 covers Metro Manila, Cavite, Laguna, Batangas, Rizal, Quezon, Bicol, Mindoro, Marinduque, Romblon and Palawan,
  • Visayas covers all provinces in Visayas, and
  • Mindanao covers all provinces in Mindanao.


Water.org is a U.S. based non-governmental organization working to increase access to water, sanitation and hygiene (“WASH”) services for low-income households. Through its WaterCredit Initiative, Water.org partners with financial institutions, such as microfinance institutions, to develop loan products to finance the construction of WASH facilities. Since 2003, Water.org has empowered 22 million

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An Economic Analysis of Paddy Stubble Management Technology in Amritsar District of Punjab

Lavleen   Kaur Sandhu 1, Mohit Rampal 2, Narinderpal Singh 3
1,2.3 Department of Agriculture, Khalsa College, Amritsar, Punjab India.

Volume 12, Issue 08, Pg. 47-58, 2019.

Abstract: The present study was undertaken to assess the economic evaluation of paddy stubble management technology in Amritsar district of Punjab. The study was based on the primary data collected for 2018-19 year from farmers selected through multistage random cum purposive sampling technique. The requisite primary as well as secondary data was collected to accomplish the objectives of study. The data was analyzed by using tabular analysis, chi-square and logit analysis. The study concluded that cost of paddy per acre increased with the adoption of paddy stubble management technology. With the use of paddy stubble management technology, the cost of inputs per acre decreased and yield of crop increased. The decreased cost of inputs and increased yield of paddy per acre compensates the cost of paddy stubble management technology. It was found in the study that age, availability of machinery with the farmers, less use of inputs due to adoption of technology and land operated by the farmers were the main reasons for adoption of the technology. Opinion survey of the farmers revealed that high cost of paddy stubble management technology, non-availability of stubble management technology with co-operatives were main constraints among non adopters of the technology. For maximum adoption of paddy stubble management technology, it is suggested that more paddy stubble management machines should be made available at co-operatives and it less cost. There is an urge to create awareness among farming communities to incline them to understand importance of crop residues in conservation agriculture for sustainability and resilience of Indian agriculture.  It was also suggested that farmers who adopt stubble management technology should be given incentives for its adoption.

Keywords: Stubble management, Adopters, non-adopters, paddy, burning

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Market and Learning Orientation Effect through Organization Governance on Competitive Advantage of Universities in Jakarta

Riduan Siagian 1, Muhammad Zilal Hamzah 2, Farida Jasfar 3
1 Hospitality Management Doctoral Program, Economics and Business Faculty, Universitas Trisakti, Indonesia.
2 Economics Doctoral Program, Economics and Business Faculty, Universitas Trisakti, Indonesia
Sekolah Tinggi Ilmu Ekonomi Bisnis Indonesia (Indonesian Business School), Jakarta, Indonesia.
3 Economics Doctoral Program, Faculty of Economics and Business, Universitas Trisakti, Indonesia.

Volume 12, Issue 08, Pg. 59-68, 2019.

Abstract: This research tries to examine the effects of market orientation and learning orientation toward competitive advantage through organizational governance. The population of this paper are universities under the Regional Coordinating Office for Higher Institutes (Kopertis Wilayah-III) in Jakarta. Data of this paper are collected from 3 (three) biggest private universities in Jakarta, namely: Trisakti University, Atma Jaya Catholic University (UNIKA Atma Jaya) and Bina Nusantara University (BINUS) by using 960 questionnaires and the respondents in this paper are the Head of Academic Division of Trisakti University, Deputy Chancellor I of Atma Jaya Catholic University and Vice-Rector in charge of Research & Technology Transfer of Bina Nusantara University. Furthermore, the data will be analyzed by using Structural Equation Modeling (SEM) through the WarpPLS 4.0 program.

Computational results show that all hypotheses are acceptable, such as follows: i). There is a negative and significant effect of market orientation towards organizational governance;  ii). There is a positive and significant effect of learning orientation towards organizational governance; iii). There is a positive and significant effect of organizational governance towards the competitive advantage; iv). Market orientation negatively affects competitive advantage but insignificant, and v). There is a positive and significant effect of learning orientation towards competitive advantage.

The implication of this research shows that even though the organizational governance is influenced negatively and significantly by the market orientation, and market orientation also negatively but insignificant affect the competitive advantage, there is no matter with them because they already have the specific market throughout their operation. Organizational governance and competitive advantage those already generated by these 3 universities are able to improve their marketing performance. This finding also proves that these three universities do have specific learning orientations and differ from each other. In the end, every new academic year, new prospective students will come by themselves to these universities.


Market Orientation; Learning Orientation; Organizational Governance; Competitive Advantage; Structural Equation Modeling.

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