Journal of Indonesian Economy and Business <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 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> en-US <p><strong>Copyright</strong></p> <p>Upon acceptance of an article, authors transfer copyright to the JIEB as part of a journal publishing agreement, but authors still have the right to share their article for personal use, internal institutional use, and for any use permitted under the CC BY-SA license</p> <div> <p><strong>Open Access</strong></p> </div> <p>Articles are freely available to the public without any subscription with permitted reuse. For open access articles, permitted third party (re)use is defined by the following Creative Commons user licenses:&nbsp;<em><strong>Creative Commons Attribution (CC BY-SA)</strong>.</em></p> (Widya Paramita, Ph.D) (Maria Wintang Rarasati) Thu, 30 Sep 2021 10:16:22 +0700 OJS 60 “Getting to Denmark" from Indonesia: Starting from State Institutions or the Tax Capacity? <p><strong>Introduction/Main Objectives:</strong> This paper is aimed at answering the following research questions: Where should Indonesia’s journey toward a prosperous society start from? Should state institutions be improved first to increase the tax collection necessary to finance this journey? Or should the tax capacity be improved first to help improve the institutions? <strong>Background Problems</strong>: Maintaining good quality state institutions requires fiscal support and, vice versa, maintaining fiscal support through tax revenue requires the existence of good quality state institutions. This paper empirically examines which of these two aspects needs to be improved first to achieve a better society for Indonesians. <strong>Novelty</strong>: To the best of the author’s knowledge this paper may be the first that tries to empirically explore the causal relationships between the quality of Indonesia’s state institutions and its tax capacity. <strong>Research Methods</strong>: Answers to the research questions were approached by employing a vector error-correction model of governance indicators and tax revenue data for Indonesia, covering the period from 2002 to 2017. <strong>Finding / Results:</strong> It has been found that, for Indonesia, the quality of the state institutions and the tax capacity did not have a causal relationship in any direction. <strong>Conclusion</strong>: Indonesia seems to be caught in a dilemma: On one side, choosing the strategy of improving the quality of the institutions first may not be sustainable because it is unlikely to lead to improvements in the tax capacity, thus the prospects for sustaining good-quality institutions may be uncertain due to the possible lack of fiscal support. On the other hand, improving the tax capacity first does not seem to be a reliable strategy either because it may not result in better quality state institutions, hence revenue mobilization efforts might not be effective due to the incomplete support provided by the poor-quality institutions</p> Heru Iswahyudi Copyright (c) 2021 Journal of Indonesian Economy and Business Wed, 29 Sep 2021 13:59:49 +0700 The Study of Mangrove Ecosystems’ Services Valuation in Semarang City <p><strong>Introduction/Main Objectives: </strong>This study estimates how much economic value will be lost from contact activities within the coastal areas in the research location. <strong>Background Problems: </strong>The area of Semarang City has flood and tidal problems, the damage to the mangrove forests in Semarang City began with the boom in shrimp farming between 1980 and 1990. Hopefully, this valuation can provide an overview of the current health of the ecosystem and become the basis for a mangrove management strategy in the future. <strong>Novelty: </strong>The novelty of this study is that it uses a sharper satellite (Image Pleades Resolution 0.5 m) to calculate the mangrove area in the research location. <strong>Research Methods: </strong>This research uses a total economic valuation, an estimation of the mangrove’s carbon stock and heavy metals, the replacement cost to prevent tidal flooding, and the willingness to pay. <strong>Findings/Results: </strong>We find that the existing economic value in the study area is very large and should be preserved for conservation. <strong>Conclusion: </strong>The environment cannot produce something instantly, but it needs to be preserved as a balance to nature.</p> Tito Aditya Perdana, Febrianur Ibnu Fitroh Sukono Putra, Risanda Alirastra Budiantoro Copyright (c) 2021 Journal of Indonesian Economy and Business Wed, 29 Sep 2021 14:27:16 +0700 Exploring the Existence of Innovative Work Behavior among Government Employee: Have Been There? <p><strong>Introduction/Main Objectives</strong>: This study aims to determine the existence of innovative work behavior ecosystems for Indonesia’s government employees <strong>Background problems: </strong>The quality of individual employees partially determines the quality of the organization. The abilities of the different employees who work in the same system will undoubtedly deliver the government employee and possibly produce results which are less than were expected. <strong>Novelty: </strong>The previous studies have examined innovative work behavior, focusing on the external factors and ignoring the internal factors of individual traits. This study focused on investigating the interrelationship among the factors that will be affected by innovative behavior, especially in government employees in Indonesia<strong>. Methods</strong>: This study examines the relationship among these variables using structural equation modeling (SEM) with LISREL 8.8 as the statistical tool. <strong>Finding/Result:</strong> This study found that transforma­tional leadership and work engagement positively influence innovative work behavior. Unexpectedly, this research indicates an insignificant relationship between organizational justice and innovative work behavior among government employees. Besides, this study also found that transformational leadership and organizational justice have an impact on work engagement. <strong>Conclusion: </strong>These findings provide managerial implications about the need to strengthen employees’ innovative work behavior to ensure the organization’s continuity. Additionally, the results prove that innovative work behavior by government employees is supported by government’s role such as the style of leadership and work engagement.</p> Dediek Tri Kurniawan, Yesiana Ihda Kusnayain, Fatwah Inna Aulisaina, Muhamad Arif Rahman Hakim Copyright (c) 2021 Journal of Indonesian Economy and Business Wed, 29 Sep 2021 14:36:56 +0700 The Role of University-Based Incubators in Social Entrepreneurship’s Development: The Capability Approach as an Evaluative Framework <p><strong>Introduction/Main Objectives:</strong> This study evaluates the role of a large university in developing the social entrepreneurship capabilities of its students and fresh graduates through its business incubator; and investigates why tenants choose to be or not to be social entrepreneurs after their incubation process. <strong>Background Problems:</strong> There are many discussions about university-based incubators for developing entrepreneurship, but the actual mechanism of how these incubators develop social entrepreneurs is still unknown. <strong>Novelty</strong>: This research explores the development of social entrepreneurship through the university-based incubator program. Hence, it can be used to provide best practices for the program, especially for developing the tenants’ capacity. <strong>Research Methods:</strong> This study applies a case study approach and adopts Amartya Sen’s capability approach as an evaluative framework. The C-Hub UGM was chosen as a case since it was selected as a good example of a social entrepreneurship incubator by the British Council. This research used three sources of evidence: documents, interviews, and focus group discussions to collect information from 14 of the incubator’s tenants. <strong>Finding/Results:</strong> The results reveal that the incubator serves as a hub for the resources that enhance the tenants’ personal conversion factors and their performance as agents for change. Subsequently, the incubator improves the tenants’ social entrepreneurship capabilities set; however, it is up to the tenants to choose whether they want to continue as social entrepreneurs or work in other roles as their functioning. <strong>Conclusion</strong>: This study illuminates the linkages among the concepts of the capability approach, the university-based incubator and social entrepreneurship. It reveals that the university-based incubator serves as a hub for the resources that enhance the tenants’ personal conversion factors; thereby they can be effective social entrepreneurs.</p> Matahari Farransahat, Risa Bhinekawati, Evelyn Hendriana Copyright (c) 2021 Journal of Indonesian Economy and Business Wed, 29 Sep 2021 13:54:27 +0700 Does Institutional Quality Matter in the Relationship Between Competition and Bank Stability? Evidence from Asia <p><strong>Introduction/Main Objectives</strong>: This study aims to investigate whether competition impacts bank stability. Furthermore, the study also analyzes the role of institutional quality in a country, such as voice and accountability, political stability, government effectiveness, regulatory quality, the rule of law, and control of corruption, forming the effect of competition on bank stability. B<strong>ackground Problem</strong>: Analysis of the relationship between competition and bank stability has been at the center of academic and policy debate. However, the theoretical and empirical research has not concluded whether bank competition leads to more or fewer stable banks. <strong>Novelty</strong>: We consider institutional quality's role in mitigating the negative impact of competition on bank stability, which has mainly been under-elaborated in prior studies, particularly in using measures from The World Bank’s Worldwide Governance Indicators, which measure how the institutions of each country influence bankers’ and the people's behavior, as part of the cultural system. <strong>Research Methods</strong>: Using a sample of 427 Asian commercial banks from 2011 to 2019, we employ the generalized method of moments (GMM) estimator and consider loan growth and the cost to income ratio as instrumental variables. <strong>Findings/Results</strong>: We find robust evidence that competition erodes bank stability. Besides, better institutional quality, especially government effectiveness, regulatory quality, the rule of law, and corruption control in each country are important aspects that promote bank stability and mitigate the negative impact of competition on bank stability. <strong>Conclusion</strong>: Competition has a negative impact on bank stability. Meanwhile, the quality of institutions can both promote bank stability and mitigate this negative relationship.</p> Muizzuddin Muizzuddin, Eduardus Tandelilin, Mamduh Mahmadah Hanafi, Bowo Setiyono Copyright (c) 2021 Journal of Indonesian Economy and Business Wed, 29 Sep 2021 14:41:05 +0700