Journal of Indonesian Economy and Business 2023-05-15T10:19:48+07:00 Widya Paramita, Ph.D Open Journal Systems <p style="text-align: justify;"><img style="display: block; margin-left: auto; margin-right: auto;" src="/v3/public/site/images/jieb/homepageImage_en_US_(1).jpg" width="331" height="455"></p> <p style="text-align: justify;">Journal of Indonesian Economy and Business (JIEB), with registered number print ISSN&nbsp;<strong><a title="ISSN" href=";search[]=MUST=issnl=0215-2487&amp;currentpage=1&amp;size=10" target="_blank" rel="noopener">2085-8272</a></strong>; online ISSN&nbsp;<a title="Check ISSN" href=";search[]=MUST=issnl=0215-2487&amp;currentpage=1&amp;size=10" target="_blank" rel="noopener"><strong>2338-5847</strong>, </a>is open access, peer-reviewed journal whose objectives is to publish original research papers related to the <strong>Indonesian economy and business issues</strong>. This journal is also dedicated to disseminating the published articles freely for international academicians, researchers, practitioners, regulators, and public societies.</p> <p style="text-align: justify;">The journal welcomes authors from any institutional backgrounds and accepts rigorous empirical research papers with any methods or approach that is relevant to the Indonesian economy and business context or content, as long as the research fits one of three salient disciplines: economics, business, or accounting.&nbsp;</p> <p style="text-align: justify;">The JIEB is Internationally indexed in <a href="" target="_blank" rel="noopener">SCOPUS</a>, EBSCOHost (<a href="">Business Source Corporate Plus</a>&nbsp;and&nbsp;<a href=";sid=d9b01640-fc29-4180-b733-0ef52c7990ab%40sessionmgr4006&amp;bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&amp;jid=BL33">Business Source Complete</a>),&nbsp;<a href="">EconLit</a>,&nbsp;<a href="">ProQuest</a>,&nbsp;<a href=";user=9VyQpCoAAAAJ&amp;view">Google Scholar</a>,&nbsp;<a href="">DOAJ</a>,&nbsp;<a href="">Microsoft Academic Search</a>, and ACI (<a title="ACI" href=";id=634">ASEAN Citation Index</a>). &nbsp;Furthermore, this journal has been nationally accredited by the Directorate-General for Research Strengthening and Development, the Ministry of Research and Technology for Higher Education, Republic of Indonesia (Decree No. 148/M/KPT/2020) in <a href="">SINTA 2 (Indonesian Science &amp; Technology Index).</a></p> <p style="text-align: justify;"><img style="display: block; margin-left: auto; margin-right: auto;" src="/v3/public/site/images/jieb/Akreditasi_JIEB.JPG" width="522" height="346"></p> <p style="text-align: justify;">&nbsp;</p> The Roles of Social Media Influencers on Online Fundraising in Indonesia 2023-05-15T10:19:48+07:00 Joyce Cheah Lynn-Sze Nurul Nazielah Bt Fathi <p><strong>Introduction/Main Objectives:</strong> Using celebrities for online fundraising has become increasingly popular, especially duringthe recent COVID-19 pandemic. It has encouraged social media influencers (SMIs) around the world to help raise money through their own Instagram accounts. Thus, this study aims to understand the roles of SMIs in fundraising activities, to identify the influencers’ attributes which affect their followers’ willingness to donate, and to explore the motivation of the followers to donate. The SMI who became the subject of this study is Rachel Vennya, an Instagram celebrity who is also an entrepreneur. <strong>Background Problems:</strong> The growing role of SMIs in online fundraising has indirectly made them idols. However, there is a need to investigate what drives social media users’ willingness to support and donate to online fundraising hosted by SMIs. <strong>Novelty: </strong>This study enriches the literature about SMIs and the motivation to donate in different contexts, such as online fundraising through Instagram, especially amid the COVID-19 pandemic in Indonesia. <strong>Research Methods: </strong>Using a qualitative method, semi-structured interviews with 10 informants, who were aged between 25 and 35 years old were conducted. The informants were selected from among Rachel Vennya’s Instagram followers and participated in her COVID-19 fundraising campaign. <strong>Finding/Results: </strong>In accordance with the objectives, there are three roles for the SMIs, which are expanding their followers, raising awareness and inspiring people to donate. The findings also identified three characteristics that affect the willingness of people to donate, namely attractiveness, trustworthiness and ability, while the influencer’s influence and making it easy to donate are the motivations for the followers’ intentions to donate. <strong>Conclusion: </strong>The findings could contribute to the knowledge of SMIs and online fundraising. They could also help the governments’ efforts to get non-profit organizations to focus attention on proactive strategies aimed at boosting their online fundraising campaigns in the future.</p> 2023-05-02T11:32:10+07:00 Copyright (c) 2023 Journal of Indonesian Economy and Business Work Engagement Influences Affective Commitment: Psychological Capital and Perceived Organisation Support As Moderators 2023-05-15T10:19:43+07:00 Daniel Lie Kiky Dwi Hapsari Saraswati David Sugianto Lie <p><strong>Introduction/Main Objectives: </strong>It is well-known that millennials have low levels of attachment towards the organisation.It istherefore necessary to consider ways of retaining them as leavers may affect the organisation financially. <strong>Background Problem: </strong>Previous studies have consistently shown that work engagement (WE) significantly affects affective com­mitment (AC). However, the correlation level varies. Hence, a moderator could be affecting the strength of their relationship. <strong>Novelty: </strong>This research investigated whether psychological capital (PsyCap) and perceived organisation support (POS) could act as moderators. <strong>Research Methods: </strong>The research was a quantitative and non-experimental study. Researchers usingthe convenience sampling technique and the participants were 111 Indonesian millennial employees who completed questionnaires virtually. <strong>Findings/Results: </strong>Regression analysis confirmed that WE influenced AC significantly and PsyCap was shown to be a moderator. Further, a three-way interaction revealed that a low level of POS has a significant effect,but only when the level of PsyCap is low, implying that POS is still valid as a moderator (even though only partially). <strong>Conclusion: </strong>This study concluded that both PsyCap and POS are important for millennial employees. Therefore, it is recommended that management consider these two variables when managing the millennials in their organisation.</p> 2023-05-02T14:21:32+07:00 Copyright (c) 2023 Journal of Indonesian Economy and Business The Effect of Foreign Debt, Liquidity, Firm Size, and Exchange Rate on Hedging Decision 2023-05-15T10:19:39+07:00 Jovi Ostana Mangara Yudha Reni Oktavia Neny Desriani <p><strong>Introduction/Main Objectives:</strong> This research aims to analyze the effect of internal factors, especially foreign debt, liquidity, and firm size, and also external factors, especially the exchange rate, on hedging decisions, with profitability as the control variable. <strong>Background Problems:</strong> Exchange rates are always affected by uncertainty. To ensure a company does not suffer losses, it will implement risk management, such as hedging. This is in accordance with the recommendation of the Ministry of SOEs to undertake hedging in the context of risk management. But in reality, not all state-owned enterprises do this. <strong>Novelty:</strong> This research adds profitability as a control variable, because this research does not involve the profit of the company, and focuses on how the company minimizes the risk of potential losses. <strong>Research Methods:</strong> The research used quantitative data, which is secondary data taken from the annual financial reports of state-owned enterprises listed on the Indonesia Stock Exchange for the 2016 to 2020 period that are accessed through the website <a href=""></a> and the annual reports of state-owned enterprises that are accessed through their official websites. Data analysis techniques that were used are descriptive statistics test, multicollinearity test, and logistic regression test. <strong>Finding/Results:</strong> The results show a significant effect from foreign debt and firm size on the hedging decisions of state-owned enterprises in Indonesia, while liquidity and the exchange rate did not show a significant effect on the hedging decisions of state-owned enterprises in Indonesia. <strong>Conclusion:</strong> This research shows that state-owned enterprises in Indonesia focus more on their foreign debt and firm size, than their liquidity or the exchange rate,in their decision to hedge.</p> 2023-05-02T14:37:15+07:00 Copyright (c) 2023 Journal of Indonesian Economy and Business Examining the Role of Social Media Marketing on Brand Love and Its Impact on Brand Centrality: The Study of Local Fashion Brands for the Millennials 2023-05-15T10:19:34+07:00 Iin Mayasari Handrix Chris Haryanto Olivia Deliani Hutagaol Adam Rizky Ramadhan Iwan Amir <p><strong>Purpose</strong>: Local fashion brands are an important issue for millennial consumers. To create their love of local fashion brands, social media marketing is necessary.&nbsp; The study also examines brand love's effects on local fashion brands' centrality. This study also investigates brand love and centrality’s impact on the repurchase intention. <strong>Design/ Methodology/Approach: </strong>The data were taken using survey methods with questionnaires developed by previous researchers. A partial least squares regression was used to test the hypotheses. <strong>Findings</strong>: This study shows that social media marketing can create conditions for consumers to develop brand love, but brand love still needs to be able to develop brand centrality. This study also shows that although brand love has yet to create brand centrality, the concept of brand love can influence the repurchase intention. At the same time, brand centrality also affects the repurchase intention. <strong>Originality/value</strong>: This is the first study analyzing millennials’ brand love toward fashion clothing brands and the analysis of the influence of social media marketing on brand love and its impact on brand centrality.</p> 2023-05-02T15:46:15+07:00 Copyright (c) 2023 Journal of Indonesian Economy and Business Revisiting Financial Volatility in the Indonesian Islamic Stock Market: GARCH – MIDAS Approach 2023-05-15T10:19:30+07:00 Nevi Danila <p><strong>Introduction/main objectives</strong>: The aim of this research is to study the impact of macroeconomic variables on the Indonesian Islamic stock market’s volatility. <strong>Background issues</strong>: To predict the stock market’s volatility, daily or high-frequency data has been applied to the model’s explanatory variables with the same data frequency. However, when it comes to the macroeconomic variables as volatility drivers, the data is low-frequency, such as weekly, monthly, or quarterly. The current study uses a model which treats the data equally. <strong>Novelty</strong>: This study employs the mixed data sampling (MIDAS) model, which allows data from multiple frequencies to be included in the same model. This model can combine daily stock returns’ data with monthly or quarterly macro­economic data. Hence, this is the first paper to study the determinants of the volatility of Indonesia's Islamic stock index using GARCH-MIDAS. <strong>Research Methods</strong>: The Generalized Autoregressive Conditional Heteroscedasticity GARCH-MIDAS model captures the short-run from the long-term element of volatility; the findings show the asymmetry effect for the short-term element’s result. <strong>Finding/Results</strong>: Inflation does not influence long-term market volatility. Moreover, after the 2008 crisis, the study shows that inflation and short-term interest rates positively influenced market volatility. <strong>Conclusion</strong>: The positive effect of inflation suggests that stocks can function as inflation hedges for stock investors in the long run. Further, the positive impact of interest rates implies that Muslim investors use the conventional short-term interest rates as a benchmark for investment in Shari’ah-compliant instruments.</p> 2023-05-02T15:57:54+07:00 Copyright (c) 2023 Journal of Indonesian Economy and Business