Volume 09 Issue 03

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

Analysis of Determinants Sectors Regional Development at 33 Provinces in Indonesia 
Dini Hariyanti a, Maria Ariesta Utha b
a,b Economic Development Program, Trisakti University, Indonesia.

Volume 09, Issue 03, Pg. 11-15, 2016.

Abstract: The purpose of this study was to analyze the basis of  sectors regional development at 33 provinces  in Indonesia. The implication is, if a region wants to push the growth of its economic, the sector of regions should have the advantage to develope and sustainable.  An explanation of the economic potential of the 33 provinces in Indonesia which is analyzed in terms of the national potential, potential per sector in each province, specializes import and export infrastructure in each region. Thus, every region must has ability  in economic potential and  specialized. The approach used to see the economic potential of the region is Typology Klassen and analysis of Location Quotient (LQ) in the period 2008 -2012. 

Based on the results of calculations leading sectors using Location Quotient (LQ) in 33 provinces in Indonesia showed that dominated by: first, the agricultural sector; second, the mining sector;  third, of the manufacturing sector; four, publicities, gas and water sector; five, construction sector;  sixth, sector of trade, hotel and restaurant;  seven, sectors of transportation and communication; eight, sector financial/Banking and nine, service sector.

The rank of the province that dominates the highest contribution of each sector compared nationally for the agricultural sector, which the highest rank  is followed by West Sulawesi, Central Sulawesi, Lampung, Bengkulu and NTT province. As for the mining sector there are 13 provinces that dominate this sector and the highest national contribution is Riau province followed by East Kalimantan, Papua, South Kalimantan. The manufacturing sector, 5 provinces lead this sectors and the highest contribution in the sector of manufacturing/processing industry in the first rank is the Riau Archipelago followed by Banten, West Java province. For publicities, gas and water sector there are 11 provinces lead this sector, and regions that have the highest national contribution is banten followed by West Java province, Aceh, Bali province. For the construction sector, 15 provinces lead this sector, and the highest contributions is North Sulawesi followed by DKI Jakarta, DI Yogyakarta. As for trade, hotel and restaurant there are 17 provinces that have the highest contribution nationally and the highest rank is Bali followed by East Java province, North Maluku. Categories of transportation and communication sector, 10 provinces have lead this sector and the highest provincial contribution is West Sumatra, followed by South Kalimantan, North Sulawesi, Jakarta, and Bali province. For the financial/Banking sector there are only two provinces that dominate this sector and the highest contribution nationally are Jakarta province, after the DI Yogyakarta province. While the service sector there are 22 provinces dominate this sector and the highest contribution nationally namely Nort Nusa Tenggara province, after it by Gorontalo, Bengkulu, DI Yogyakarta, West Sumatra. Finnally, the provinces that lead the business development in Indonesia is the province of Central Sulawesi, Gorontalo, Papua, West Sumatra, Riau, East Kalimantan, South Kalimantan and West Kalimantan. The eighth of province has the contribution of each sector are very high as well as against the growth rate of the sector.

Keywords: Regional Developnment; Typology Klassen; Location Quoetient; The Specialization Index;  33 Province in Indonesia

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Design Model of Development of Small Industries Village for Value Adding of Automotive Components Waste 
Based on Community Development 
(Case Study At Sasakpanjang-Bogor)
Kosasih, Mutmainah a, Andreas Tri Panudju b
a,b Teknik Industri, Universitas Muhammadiyah Jakarta, Jakarta, Jl. Cempaka Putih Tengah 27., Indonesia

Volume 09, Issue 03, Pg. 16-37, 2016.

Abstract: Many wastes are increasing every day, and therefore need a better management in order to be utilized as much as possible and can be used again. Waste in the Indonesian automotive components necessary a management-based community development so that waste automotive components can be beneficial to society. In Sasakpanjang village is one of the villages that today many groups evolved in managing waste automotive components. To increase and keep the sustainability of economic activity and the conversion of the criminal culture in Sasakpanjang  village will require a business development model of community-based on community development. This study uses a Research and Development (R & D) which is a research carried out by the process or steps to develop a new product, or improve existing products. In principle, in the process and research activities is taking some steps that can be described as follows: The first step: survey research. The second step: theoretical research. The third step: modeling. The fourth step: validation of the model. The fifth step: assessment and development models. From the analysis it was found that: 1) the presence of the process of adding the value obtained at least by 4 times greater, 2) with the addition process of this value will be gained additional skills of local people, enhancement and movement of local community economy and waste reduction component automotive waste very significant. Model-based Development of Rural Industrial waste is very conducive to a more sustainable society. It is also encouraging the learning process in the community related skills training, management and entrepreneurial character to form local communities

Keywords : Model Design, Industrial Village, Small Industry, Automotive Waste 

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Fiscal Desentralisation and Sustainable Development: Lesson from Local Government Levels in Indonesia
Rosdiana Sijabat
Department of Business Administration, Faculty of Economics and Business, 
Atma Jaya Catholic University of Indonesia
Jalan Jenderal Sudirman No 51, Jakarta, Indonesia.

Volume 09, Issue 03, Pg. 38-77, 2016.

Abstract: Indonesia introduced fiscal desentralisation when the central government enacted Law No. 25/1999 on fiscal balance between the central government and the local governments. This law was later revised as Law No. 33/2004 and is widely known as the ‘new direction of fiscal relationship’ which guides the intergovernmental financial relationship between central and local government in Indonesia (Brojonegoro & Asanuma, 2003; Suharyo, 2009). According to the law, local governments have two major sources of revenues to finance their expenditures: own-source revenues and intergovernmental transfers. Own-source revenues are revenues raised by local governments from their local sources, consists of taxes, levies, proceeds from the management of regional assets set aside for the purpose, and other source of revenues. While intergovernmental transfers consist of Revenue Sharing  from natural resources and taxes, General Allocation Funds (Dana Alokasi Umum, or DAU), and Specific Allocation Funds (Dana Alokasi Khusus, DAK). The fiscal desentralisation law established principles on the intergovernmental financial relationship between central government and local governments, which take the forms of devolution, deconcentration, and co-administration of tasks. Through those forms, most authority and responsibility of the central government was devolved to local governments, including the financial responsibility over the provision of public goods and services at local levels. 

This study examines the arguments in favor of the impact of fiscal desentralisation on the economic development at local levels through the public financing capacity. The methodological approach was qualitative and quantitative modes of inquiry. The analysis on the fiscal budget includes the revenues and expenditures assignments, the trends on the local government expenditures, revenue desentralisation and financing capacity, as well as the roles of intergovernmental transfers within the local budget. This study was undertaken upon the economic arguments on fiscal desentralisation to increase the revenues or fiscal autonomy of sub-national governments (Falleti, 2005) and provides autonomy to local governments in the provision and financing of public goods (Brueckner, 2008). Fiscal decentralisation exists when sub-national governments have powers given to them by the constitution or by legislation, to raise taxes and/or carry out spending activities within clearly established legal criteria (Tanzi, 2000). This study therefore seeks to examine whether fiscal desentralisation in Indonesia increases the financing capacity of local governments, thus promoting local economic development.

The results from this study demonstrate that the practice of desentralisation in Indonesia has shown that various reforms have affected the political and administrative system in Indonesia and also the arrangements of authority and financial responsibility between the central government, and the local governments (province and district/city). Under desentralisation policy, the central government gives authority in most areas of governance to local governments. It is however, the central government that retains responsibility for national planning, control on national development, intergovernmental fiscal arrangements, the state administration and economic institutions system, training and human resource empowerment, utilization of natural resources, strategic high level technology, conservation, and national standardization. Such arrangements have changed the mechanism of accountability among central and local governments in Indonesia. Fiscal data analysis performed for provinces, districts and cities in Indonesia indicate that most local governments are still highly dependent on the fiscal transfers from the national governments in performing their public financing functions. As such, the sustainability of local development can be achieved in the long run.

Keywords: Governments, decentralization, fiscal, transfer

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Factors Influence The Utilization Of Community Participation (POSBINDU)
NoviaIndriani Sudharma a, Rina Kurniasri Kusumaratna b , Meiyanti c
a,b Department of Public Health, Faculty of Medicine, Trisakti University, Jakarta, Indonesia
c Department of Pharmachology, Faculty of Medicine, Trisakti University, Jakarta, Indonesia

Volume 09, Issue 03, Pg. 78-90, 2016.


Introduction: Posbindu is a form of public participation  to conduct early detection and monitoring of risk factors for non-communicable diseases (NCD), and where it was carried out in as an integrated-manner, routine and periodic event. Posbindu itself aimed to promotethe community participation in prevention and early detection of risk factors for non-communicable disease (NCD). Non-communicable diseases is the biggest killer in the world,causing approximately 60% of global deaths. More than 9 millions of all deaths related to NCD occurredunder the age 60 years old, and 90% premature deaths incidenceoccurs  incountries where significant number of population were low income-population. In Indonesia, death related to NCD are growing in an alarming rate, from aproximately 41% at the year 1995, striking 59,5% at year 2007. According to Basic Health Survey of 2007, NCD related deaths ranked number 6 in a top ten Death list.The growing rate of NCD prevalence are to become a serious threat upon national Development, death risk from disease related conditon will negatively impact human resources nationwide, which the effect will surely not limited to health aspect only but expanded to economic aspect.Meanwhile, Posbindu program had not reach its popularity as it should have been. In some region, posbindu visits by locals  has decreased. At the study area, existing data showed that, only as much as 10% of the local population was using Posbindu service. In many regions, Posbindu were deemed to merge with geriatric social health care, as the major user was the geriatric population.

Objective: to determine the factors that influence utilization of posbindu

Methods: This study was a cross-sectional study of 120 people in productive age (aged between 18-59 years) including individuals who nevervisit  posbindu. In this study there were 3 groups of factors that can affect utilization of posbindu, the predisposing factors (age,sex,education level,occupation, knowledge from cader counsels,understanding about posbindu, awarrness, distance to posbindu, administration fee), and the reinforcing factors (family support, socialization of posbindu). Data were collected from February 2015 through to March 2015.

Results: Respondents who do not utilize posbindu  service are as many as 25% while 75% of respondents utilize posbindu. At bivariate analysis, we found several significant relationship between independent variable and utilization of posbindu : age (OR=3.46 ; 95% Confidence interval 0.96-12.43), education level (OR=0.17 ; 95% Confidence interval 0.03-0.772), knowledge (OR=3.82 ; 95% Confidence interval 1.60-9.09), awareness (OR=3.76 ; 95% Confidence interval 1.44-9.82), family support (OR=1.84 ; 95% Confidence interval 0.79-4.27), significant relationship between socialization of posbindu and utilization of posbindu (p=0.000), and also administration fee (OR=4.57 ; 95% Confidence interval 1.88-11.06). Multivariate analysis shows that respondent with higher education tend not to utilize posbindu service (OR=0.17 ; 95% Confidence interval 0.03-0.89), and those who did not mind for administration fee have the greater possibility to utilize posbindu service (OR=3.79 ; 95% Confidence interval 01.33-10.80)

Conclusion: Several factors were conceived as aspects that affected the utilization of the Posbindu, but the level of education and administration fee are more prominent. Necessary efforts need to be conducted for people in productive age to promote their health, especially in community participation. 

Keywords: Community participation, Non-communicable Diseases,Posbindu,Productive age, Utilization 

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The Influence of Internal Factor on Financial Performance and Firm Value: Evidence from Property and Real Estate Companies Listed in Indonesia Stock Exchange 
Tsabita Karima a
a University of Trisakti, Jl. Kyai Tapa No.1 Grogol,  West Jakarta, Indonesia.

Volume 09, Issue 03, Pg. 91-110, 2016.

Abstract: Agency problem often arises because of the separation between the functions of ownership and control  within the agency relationship. The relationship between the owner and this managerial influence on strategic decisions that will be taken for example in the case of dividend policy agency problem may arises because of a conflict or difference of interest between principal and agent in a decision making. Therefore, required good corporate governance for improve firm performance. One of the other important decisions faced by financial managers relating to operational activity is funding decisions. The company need funds to finance the operation activity, investment or the other. The company have to make the best combination of capital structure (optimal) in order to avoid the high cost of capital which is may lead to low level of profitability and firm value. 

This study aims to analyze the relationship between Corporate Governance, Capital Structure and Dividend Policy on and Firm Value, with Financial Performance as an intervening variable. Population in this study is property and real estate companies listed in the Indonesia Stock Exchange period 2011-2013 represented by the audited company’s financial statement and historical data of stock prices in Indonesia Stock Exchange (secondary data). Sampling technique using purposive sampling method. The samples used 18 companies that already fit with the criteia of sampling. Hypothesis testing using  Partial Least Square (PLS). 

This study finds out that there is no relationship between corporate governance and financial performance. These findings consistent with the Stewardship Theory  that the Agency Theory by Jansen and Meckling (1976), cannot be applied in every situation, there are another models of behavior and managerial motivation that comes from psychological or sociological. Furthermore, statistical tests  shows that capital structure is positively related with financial performance, this result does not confirm the Pecking Order Theory that is supported by Myers (1987), stating that the debt has a negative impact on financial performance, meaning that the higher the debt progressively the worse the financial performance of the company. As well as the third hypothesis, dividend policy is also positively significant with financial performance. The company’s dividend policy would  provide information to the market or investors about the company’s financial condition. These results support the Signaling Theory by Spence (1973).

The firm value could be achieved if the company can reach the profit targeted .This finding confirm MM  Theory stating that affecting firm value is profits and risks business. Hypothesis testing results for financial performance variable negatively significant on firm value. Thus the hypothesis is accepted.

Keywords : Corporate Governance, Capital Structure, Dividend Policy, Financial Performance, Firm Value.

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Incidence of Building Collapse in Nigeria: Case of Lagos State
Layi Egunjobi a , Ademola Adebayo b
a Department of Urban & Regional Planning, Faculty of the Social Sciences, University of Ibadan, Nigeria. bDepartment of Urban & Regional Planning, Faculty of Environmental Studies, The Oke-Ogun Polytechnic, Saki, Oyo State, Nigeria

Volume 09, Issue 03, Pg. 111-114, 2016.

Abstract : Occurrence of natural and human induced disasters the world over has overtime escalated in number and magnitude; it appears to have coincided with contemporary climate change events. The devastation in loss of lives and property as well as disruption in national socio-economic and quality of life indices has been enormous. This is more so in the less advanced countries of the world where capacity to manage disasters is quite limited. The need has arisen therefore for a thorough understanding of the situation in that latter group of countries to resolve this paradox. This is necessary for those countries to be placed in a position for a meaningful and more effective participation in global efforts in the management of urban environmental disasters.

Arising from the above, the cardinal aim of this paper is to analyze the trend and pattern as well as adducing factors responsible for building collapse in Nigeria using Lagos State as the study area. This is with a view to offering policy, planning and management implications of this phenomenon in the study area.The study has relied mainly on secondary data presented as Appendix I in a recently published book on Disaster Risk Management in Nigerian Rural and Urban Settlements. The appendix presented a total of 139 reported cases of building collapse in Lagos State over a period of 35 years. These were used for analysis and discussion. The analysis involved the use of table, chart and figures to indicate trends while spatial analysis showing distribution of the collapsed buildings was done using Global Positioning System (GPS) superimposing these as points on the thematic map of Lagos State.

Emanating from the study are the following: (1) an observed escalating rate of building collapse in Lagos State over time; (2) a concentration of reported cases in residential land use and in Lagos Island Local Government Area of the State; and (3) identified explanatory factors emanating from professionals in the building industry, developers and policy decision makers. By way of elaboration, the professionals in the building industry go about their duties independently and without an established forum for development process explanation. While the policy makers show lack of political will and influence a lot of development decisions, the system of development as well is fraught with corruption. The public also cannot be exonerated as most developers run foul of the laws governing zoning and development control and not supplying adequate building materials for construction all in a bid to minimize cost of construction. The contractors are also involved. In some situations where materials are adequately supplied, they choose not to use the right mix in order to maximize their returns. This implies that the problem of building collapse in developing countries with particular reference to Nigeria is a function of the negative contribution of the policy decision makers, the professionals and the public. The paper recommends increased political will for more effective policy formulation and implementation; removal of constraints and obstacles relating to coordination and synergy-building among professionals in the building industry; and encouragement of result-oriented public participation in urban environmental disaster management. The expected outcome of all these will increase knowledge towards sustainable urban neighbourhoods especially in developing countries.

Keywords: building collapse; coordination among agencies; disaster management; public participation; sustainable urban neighbourhoods

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Sustainable development goals worth sharing
Erika Simpson
Department of Political Science, University of Western Ontario, London, Canada

Volume 09, Issue 03, Pg. 115-122, 2016.

Abstract: The international community has agreed upon another set of goals for the next 15 years. On the table are no less than 169 objectives and 17 Sustainable Development Goals (SDGs). The new aspirations are summarized and the merits and demerits of further elaboration and measurement including country-specific deadlines and targets are discussed. The hefty budget to achieve all 17 goals is estimated at more than $4 trillion US a year. North American policy-makers need to be aware of humankind’s shared aspirations as they consider the new and expensive SDGs. Foreign aid is one of the instruments of North American foreign policy and questions continue to swirl about whether foreign aid should be tied to the purchase of North American goods and services. Canada and the United States are not alone in falling short. They will need to spend more as well as align their national and subnational governments with the proposed SDGs in order to tackle inequality and poverty, integrate environmental and sustainability concerns into decision-making and help develop more global governance approaches to development.

Keywords: foreign aid, global governance, MDGs, sustainable development goals, SDGs

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