Indonesia Conference Directory

Corresponding Author
AYU SINTA SAPUTRI

Institutions
University of Wijaya Kusuma Surabaya, Ministry of Trade

Abstract
As tariff has been declined, Non-Tariff Measures (NTMs) become significantly important to supercede tariff role on protecting domestic industry. In APEC countries, between 2000-2015, the use of NTMs has increased by 413% from only 3,165 NTMs to 16,238 NTMs with average growth at 10.8% per year. The most prominant NTMs is technical measures mostly on SPS and TBT accounted for 80% in 2015 compared to other measures. The ability to comply SPS and TBT determines their ability to penetrade market access. To overcome the negative impact of NTMs, some countries are establishing an economic cooperation with other countries so for Indonesia. This study seeks to identify the most potential Indonesias FTA/CEPA partners from regulatory distance perspective. The study utilizes Regulatory Distance analysis in 10 Indonesian CEPA/FTA partners. Analysis shows that the most potential Indonesias FTA/CEPA partners are Singapore, Vietnam, and Thailand. This is indicated by the low value of Regulatory Distance approximately at 0.33 (lower is better) implies that about 33% of total NTMs measures implemented on Singapore, Vietnam, and Thailand are different with Indonesia NTMs. In contrast, the least potential FTA/CEPA partners for Indonesia are Philippines, Australia, and US market as indicated by high value of Regulatory distance at 0.70 implies that 70% of NTMs imposed by Indonesia is different with those countries. Therefore it is important for Indonesia to address NTMs issues when negoatiates its economy cooperation, particularly with Australia, and US.

Keywords
Non-Tariff Measures; Regulatory Distance Analysis; Free Trade Agreement

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/qrKAUyevxc97

Corresponding Author
Yoga Dwi Nugroho

Institutions
Politeknik Statistika STIS

Abstract
The Industrial Revolution 4.0 was a logical revolution of the previous industrial revolution. The Industrial Revolution 4.0 is made with automation and Internet use from things that can provide improvements in many sectors. One of them is the manufacturing industry sector. The manufacturing industry is the leading sector that must receive attention, especially in terms of policy. Spatial oriented policies (agglomeration) can be used to implement good policies, especially through agglomeration analysis. Agglomeration analysis used the Hoover Balassa Index (HBI) with an emphasis on labor growth in districts in Java. The existence of this agglomeration will cause differences in the growth of labor which will then be sought for the determinant. So that static panel data analysis will be used with the Fixed Effect Model SUR model. The dependent variable used is the manufacturing industry workforce. The independent variables used are wages, company efficiency, number of companies, industry competition index, import content, industrial revolution dummy 4.0 and agglomeration dummy. Agglomeration analysis shows that there are two agglomeration poles, namely, the western end and the east end of Java Island. There are six independent variables that are significant as determinants of labor growth, namely, wages, company efficiency, number of companies, industry competition index, industrial revolution dummy 4.0 and agglomeration dummy.

Keywords
Agglomeration, HBI, Panel, Revolution of Industry 4.0

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/HTrpAtvVBQfU

Corresponding Author
Indraswari Puruwita

Institutions
a) Politeknik Statistika STIS
Jalan Otto Iskandardinata 64C, Jakarta Timur 13330, Indonesia
*15.8665[at]stis.ac.id
b) Politeknik Statistika STIS
Jalan Otto Iskandardinata 64C, Jakarta Timur 13330, Indonesia
siskarossa[at]stis.ac.id

Abstract
Indonesia is one of the top ten countries with the largest forest area in the world and potentially to become the largest forest products exporter in the world. Wood and articles of wood are the only forest product commodities that are included in the ten export commodities with the largest share in 2017, reaching 34%. Plywood provides the largest share of wood and articles of wood, reaching 42% in 2017. Since 2000, Indonesia is no longer a major exporter of world plywood, and the plywood exports volume tends to decline until 2017. Besides, it is indicated that some large plywood exports are still illegal, which are generally of inferior quality. It can subsequently have an impact on the competitiveness of Indonesian plywood. This study aims to analyze the competitiveness of Indonesian plywood and assess the factors that affect Indonesian plywood exports to three major trading partners (Japan, South Korea, and the United States) over the period 2000 to 2017. The method used is the Common Effect Panel Model with cross-section weighted. Based on the results, it can be concluded that production and GDP do not affect the Indonesian plywood export significantly, while REER, RCA, and trade openness affect the Indonesian plywood export significantly. The policy recommendation is to enhance partnerships between exporters and timber farmers (especially those with limited capital) to increase production. As well as increasingly tightening the Timber Verification and Legality System (SVLK) so that importers do not doubt the quality of Indonesian plywood.

Keywords
Plywood export; Common effect model with cross-sectional weighted; competitiveness

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/QnFYamzfjVJT

Corresponding Author
Fitriani -

Institutions
Departement of Economics, Faculty of Economics and Business, University of Brawijaya, Malang. Indonesia

Abstract
This study aims to analyze the determinants of exports and the spatial linkages of frozen shrimp and Indonesian fresh shrimp. This research uses gravity model analysis and spatial autocorrelation analysis. The data used are panel data for the 2007-2017 period in 23 countries for frozen shrimp and 6 countries for fresh shrimp. The empirical findings from this study indicate that competitiveness, logistical performance, population, and exchange rates have a significant positive effect on frozen shrimp exports, while fresh shrimp exports are significantly affected by economic distance, population, rates, exchange rates, and FTAs. The morans I index results in exports of frozen shrimp and fresh shrimp indicate a negative spatial autocorrelation.

Keywords
Export, Fresh and Frozen Shrimp, Gravity Model, Spatial Autocorrelation

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/dKEYUufhCAmc

Corresponding Author
Desti Ayu Kristiani

Institutions
Kemendag

Abstract
The Ministry of Trade of the Republic of Indonesia sets a strategy to diversify export markets. Latin America is being indicated as the potential solution to improve Indonesia export performance, along with the economic slowdown in some developed countries after the global recession. This study aims to determine what factors has affected the trade flow of Indonesian manufacturing products to the Latin America region using gravity model, and panel data estimation. Some variables that has been included in the gravity model are conformity trade index, trade cost as an inhibited factor and other traditional gravity variable such as GDP and per capita GDP. The result showed that the conformity trade index does not significantly affect on the trade flow of manufacturing products from Indonesia to the Latin American region, while trade cost have negative and significant impact on trade flows between Indonesia and Latin American region. The coefficient estimation value of the trade cost was 0.0049 means that the trade will reduce by 0.0049% when the trade cost increase by 1%. The effect of the GDP is significantly affect the trade flows between Indonesia and Latin American region. Increase GDP by 1% will increase trade flow between Indonesia and Latin Amerika region by 1.34%. This study recommended that the criterias of priority for selecting countries as export destination is economic size (GDP and GDP per capita).

Keywords
Gravity Model, Indonesia, Latin America, Trade Cost, and Conformity Trade Index.

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/xeTXJL2U38dh

Corresponding Author
Aulia Niky Pinandhita

Institutions
a) Statistics Of Kapuas Regency, Tambun Bungai Street No. 15, Kuala Kapuas 73514, Central Kalimantan, Indonesia
b) Politeknik Statistik STIS, Otto Iskandardinata Street No.64C, Jatinegara, East Jakarta 13330, Indonesia

Abstract
Indonesia economic resilience is in a vulnerable condition amid the high global economic challenges. For this reason, there is a need for a strategy to improve the economy sustainably, one of which is through increasing and stabilizing exports. However, so far the Indonesian export market has only been concentrated in the main destination countries (traditional countries) such as the United States, Japan and the European Union, which causes export performance to be unstable due to the economic shocks experienced by these destination countries. This happened in rubber tire products, from 2001-2016 exports increased but tended to be unstable. So that to increase and stabilize rubber tire exports, we can do market expansion (diversification) to potentially non-traditional countries (besides the main export destination countries). The study aims to identify non-traditional countries that have the potential to diversify the export market of rubber tire derivative products using the Export Product Dynamic (EPD) analysis and analyze the variables that affect rubber tire exports to non-traditional countries in 2001-2016 using panel data regression. The results showed that potential non-traditional countries for the diversification of the car tire export market were Brazil, the Philippines, Canada, Mexico and Egypt, for bus tires and lorries were the Philippines and Mexico, while bicycle tires were the Philippines and Egypt. Variable GDP per capita, export prices of rubber tires and economic distance affect the export volume of rubber tires. While the real exchange rate and the export volume of rubber tires apart from Indonesia have no effect.

Keywords
export diversification, rubber tire derivative products, non-traditional markets, EPD, panel data regression

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/CPfVXvWEaprB

Corresponding Author
Neli Agustina

Institutions
Statistics of Kapuas Regency, Central Kalimantan and Politeknik Statistika STIS, Jakarta

Abstract
Indonesias economic resilience is in a vulnerable condition amid the high global economic challenges. For this reason, there is a need for a strategy to improve the economy sustainably, one of which is through increasing and stabilizing exports. However, so far the Indonesian export market has only been concentrated in the main destination countries (traditional countries) such as the United States, Japan and the European Union, which causes export performance to be unstable due to the economic shocks experienced by these destination countries. This happened in rubber tire products, from 2001-2016 exports increased but tended to be unstable. So that to increase and stabilize rubber tire exports, we can do market expansion (diversification) to potentially non-traditional countries. The study aims to identify non-traditional countries that have the potential to diversify the export market of rubber tire derivative products using the Export Product Dynamic (EPD) analysis and analyze the variables that affect rubber tire exports to non-traditional countries in 2001-2016 using panel data regression. The results showed that potential non-traditional countries for the diversification of the car tire export market were Brazil, the Philippines, Canada, Mexico and Egypt, for bus tires and lorries were the Philippines and Mexico, while bicycle tires were the Philippines and Egypt. Variable GDP per capita, export prices of rubber tires and economic distance affect the export volume of rubber tires. While the real exchange rate and the export volume of rubber tires apart from Indonesia have no effect.

Keywords
export diversification, rubber tire derivative products, non-traditional markets, EPD, panel data regression

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/zwpQXkanKC2N

Corresponding Author
AYU SINTA SAPUTRI

Institutions
Trade Analysis and Development Agency, Ministry of Trade of Republic of Indonesia
Jl. M. I. Ridwan Rais No.5, Gambir, Jakarta 10110, Indonesia
*choirin.nisaa[at]gmail.com

Abstract
Indonesias trade performance in 2018 experienced a deficit of USD 3,8 Billion, due to increasing of oil and gas imports. Countertrade scheme is proven as one way to improve the trade balance for country who experienced trade balance deficit through increasingnon-oil and gas exports channel. This study aims to identify the non-traditional trading partners as well as the products that are potential to be selected as non-oil and gas export destination for Indonesia through countertrade scheme. This study utilizes trade performance index and the composite index analysis using different criterias when applied to select country and products. The results shows that there are six potential countries include Saudi Arabia, Nigeria, Qatar, Angola, Azerbaijan and the United Arab Emirates. On the product side, Electronic and coal are the common potential products to be proposed through countertrade scheme as that products arepotential in all selected countries. There are another eight potential products for six countries that are selected, include machinery, jewelry, cigarettes, dairy products, processed fruits, mollusks, vegetable materials, automotive, synthetic rubber, processed oily grains, processed fruits, coffee beans, CPO & derivatives, pearls, processed fats & animal / vegetable oils, ash and metal scraps, precious metals, rice, salt, and sulfur and lime.

Keywords
countertrade, trade performance index, composite index

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/ry7KhntPZUeu

Corresponding Author
Dede Yoga Paramartha

Institutions
(a) STIS Statistics Polytechnic, Jalan Otista Raya 64C, Jakarta Timur 13330, Indonesia
*15.8557[at]stis.ac.id
(b) STIS Statistics Polytechnic, Jalan Otista Raya 64C, Jakarta Timur 13330, Indonesia

Abstract
The era of the industrial revolution requires extra handling if you want to compete well in it. In focusing on determining the right policy, it certainly requires an indicator that is able to answer the needs of my policy. The need that the Indonesian government usually wants is spatial mapping, given that Indonesia has a high heterogeneous level. In entering the era of industrial revolution, the role of technology is certainly undeniable, thus it is necessary to have indicators to illustrate how ready Indonesia is to navigate the waves of technology. The strategy that can be combined with technological progress is the diversity of Indonesia itself. With the optimization of specialization and regional comparative advantage can trigger synergies that can be used as a basis in competing in the international trade market. Therefore, there needs to be an analysis of the effects of technology combined with specialization and regional comparative advantage of Indonesia. This can help in analyzing productivity or even other trading problems. Guided by the establishment of a competitiveness index and by utilizing spatial panel data modeling, this study is able to map the direct and indirect effects of these variables on an area. On the other hand, it can be seen how indicators improve competitiveness and not just trading volume.

Keywords
Comparative Advantage, Specialization, Technology, Spatial Panel Analysis

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/6gMaX9ANuDL7

Corresponding Author
Rahayu Widyantini

Institutions
Indonesia Export Training Center
Directorate General National Export Development,
Ministry of Trade
Jl. Letjen S.Parman no 112 Jakarta Barat 11440, Indonesia

Abstract
The Global Value Chain (GVC) has driven by the global economy, the need for goods encourages the creation of distribution channels globally. GVC is a tool for tracking shifts in global production patterns, linking geographically dispersed activities and determining the roles played in both developed and developing countries. Coffee is one of Indonesias leading products by contributing 2.7% of the worlds exports and number four producers in the world in 2018. However, exports declined during the 2014-2018 period by 5% and decreased production capacity by 5.6% from 2017 -2018. The stakeholders involved in the coffee industry also still do not provide maximum results in expanding the overall value produced. With this description, it is necessary to see how Indonesia is in the GVC and explain the obstacles faced by stakeholders in maximizing the coffee value chain. The theory of diamond porters will be used for analysis. The results show that the total value created in the Indonesian coffee chain is truly sourced from within the country, demand conditions are very influential on Indonesias position in the GVC. The governments role in improving the coffee value chain also needs to be maximized, such as giving facilitation of certification and infrastructure improvements.

Keywords
GVC, Coffee, Position

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/Lh9DZTaAWjnX

Corresponding Author
Anni Syahdia Nasution

Institutions
a) Politeknik Statistika STIS, Jalan Otto Iskandardinata No. 64C, Jakarta Timur 13330, Indonesia
*14.7996[at]stis.ac.id
b) Politeknik Statistika STIS, Jalan Otto Iskandardinata No. 64C, Jakarta Timur 13330, Indonesia
ORCID: 0000-0002-8649-1626

Abstract
The implementation of Renewable Energy Directive (RED) policy on April 2009 by European Union(EU) received several responses from many countries, due to create non tariff barrier in international trade. RED(2009/28/EC) established an overall policy for the production and promotion of energy from renewable sources in the EU. It requires the EU to fulfil at least 20% of its total energy needs with renewables by 2020. One of the countries affected by RED policy is Indonesia. The EU includes Crude Palm Oil (CPO) as a nonenvironmentally friendly product on its RED. After this policy was set, Indonesia CPO exports to the EU fell from 275.162,425 metric tons(MT) to 236.653,661MT and the next month just 896,876 MT. This research purposes to analyze RED policy and its duration impact on Indonesias CPO exports. This research uses ARIMA Intervention to analyze monthly data of Indonesias CPO exports from January 2002 to December 2018 (before and after policy implementation) and forecast CPO export from Indonesia to EU for 2019 until 2020. It is obtained that RED policy gave an impact on declining of Indonesias CPO exports to the EU only two month after the policy was set. RED policy has a temporary effect because the government moves quickly to divert CPO export market to Asia region. Forecasting results show the volume of Indonesias CPO exports to the EU from January 2019 to 2020 will experience an upward trend. The lowest volume is in January 2020 (298.527MT) and the highest is in August 2020 (330.063MT)

Keywords
Renewable Energy Directive (RED), CPO, European Union, Indonesia, ARIMA Intervention

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/q7rCKV8h2cjY

Corresponding Author
Genoveva Genoveva

Institutions
Business Faculty
President University

Abstract
This research is conducted to analyze the perspective of halal tourism development in Jakarta by using city branding theory from Kavaratzis. By using Kavaratzis theory, variable used were Landscape strategy, City behavior, Organizational structure and Infrastructure. The problem is Jakarta as one of city that is prepared and developed by Indonesia Government as halal tourism destination in Indonesia cannot attract more Muslim tourists to visit Jakarta. By August 2018, most foreign visitors that came to Jakarta is tourists from non-Muslim countries. It means, Jakarta need new city branding strategy in order to be successful in developing halal tourism and also attract more Muslim tourists both local and international. This research was used quantitative research, descriptive method and using multiple regression analysis. A total of 155 respondents were collected from the population using purposive and non-probability sampling. Result of the analysis found that the adjusted R square is 58.3% could be explained by all the variable, whereas the remaining 41.7% of the development of halal tourism is influenced by other variables that was not developed in this research. Furthermore, the result from four independent variables, city behavior, organizational structure and infrastructure have a significant influence towards the development of halal tourism in Jakarta.

Keywords
: Landscape strategy, City behavior, Organizational structure, Infrastructure, Development of Halal Tourism

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/tfXAbBRrn9Qc

Corresponding Author
Amaliyah Asad

Institutions
University of Trilogi

Abstract
Some time later, the world economy experienced changes. The economic growth of the United States is estimated to remain strong. During the monetary crisis in 1998, the current state of the global economy had no effect on Cooperatives and SMEs. The reason is because at that time almost no SMEs borrowed money from foreign parties. However, this does not apply today. The contact of SMEs with foreign exchange is the cause. Besides that, SMEs in Indonesia also have problems with financial access and access to markets, namely the difficulty of adapting to technological advancements. Technological advances have touched on the development of digital with artificial intelligence components that can only be done if SMEs do Digital Transformation. SMEs must pay attention to their determinants of success, namely technological excellence, IT Capability, and IT Allignment with Business. These factors will be more quickly controlled and fulfilled if SME leaders have good vision and a strong understanding of Digital transformation. This research is a causal study with a quantitative approach. Causal research is research that analyzes causal relationships between variables that are independent variables and dependent variables. If the SME leadership is able to support the Digital transformation process that is carried out, then SMEs will be able to carry out business innovations that can grow rapidly. This will make SMEs have the ability to compete and certainly contribute to the nations economy.

Keywords
Technological Excellence, Digital Leadership, Business Innovation

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/mYzXcvJyFEuP

Corresponding Author
Achmad Fadillah

Institutions
a) School of Business (SB), IPB University (Bogor Agricultural University)
Jl. Raya Pajajaran, Bogor 16128, Indonesia
*achmadfadillah[at]apps.ipb.ac.id

Abstract
In the trade and business of agriculture commodities, global partnerships based on standards compiled by international NGOs is needed to achieve social, economic and environmental sustainability. However, the partnership by implementing these sustainability standard has not been fully effective in improving the performance of agricultural sector in Indonesia. In addition, the right business partnership strategy is needed to deal with global uncertainty in trade, industry and business of agricultural commodities. This paper aims to analyze the trade mapping of some important agricultural commodities peformance in Indonesia (Palm Oil, Coffee, Cocoa, and Tea) and the standards applied to these commodities (Rainforest Alliance - RA, Roundtable on Sustainable Palm Oil - RSPO, UTZ, Fairtrade International, 4C, Organic). The analysis demonstrated that in the Global Value Chain, Indonesian Palm Oil has followed the standards from Organic, RA, and RSPO. Indonesian Coffee has followed the standards from 4C, Fairtrade International, Organic, RA and UTZ. Meanwhile, Indonesia Cocoa and Tea have followed standards from Fairtrade International, Organic, RA, and UTZ. The performance rankings of the Indonesian commodity industry and trade in Palm Oil, Coffee, Cacao and Tea in the world were, first (with net trade 99.9), the 8th (with net trade 90.8), the 12th (with net trade 55.9), the 8th (with net trade 58.3), respectively. Based on the data analysis, the maintenance of Palm Oil business partnership scheme with current partner countries should be maintained and followed sustainability standards. Meanwhile, for Coffee, Cocoa, and Tea, it is necessary to increase the business partnership with other countries with potential markets and positive trading trend.

Keywords
Agribusiness; Commodities; Sustainability standards; Trade

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/WkjfM6zGmH2g

Corresponding Author
Asaduddin Abdullah

Institutions
School of Business IPB University, Jl. Raya Pajajaran, Babakan, Bogor Tengah, 16128, Indonesia

Abstract
Producing Fair Trade coffee is benefited farmers and their costumer. Smallholder coffee farmers were having benefit from better price and marketing channel. In the other hand, the customers were having benefit from the guaranteed product and promoting sustainable development. However, many customers unfamiliar with the term and perceived certified fair trade coffee as a luxury product. This paper employed comparative study to evaluate the income and expenditures, wealth and investments. Moreover, the attitudes and perceptions between the farmers also been explored as preparation to enter the global market. The data collected from a balanced sample of Fair-Trade farmers and Non Fair Trade producers of organic and conventional coffee in Indonesia. Propose the study will indicate that the extra cost that farmers spent to fulfil the Fair trader label are really beneficial for them.

Keywords
Fair Trade Label, Indonesian Coffee Farmers, Efficiency

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/xEMB4L7jDWXF

Corresponding Author
Hesty Nurul Utami

Institutions
(a) Newcastle University Business School, Newcastle University, Newcastle Upon Tyne, UK
*h.n.utami2[at]newcastle.ac.uk
(b) School of Natural and Environmental Sciences, Newcastle University, Newcastle upon Tyne, UK

Abstract
The information and communication technology revolution has led to the adoption of technologies such as the internet for generating value for businesses. However, little is known about the role of e-commerce in value co-creation initiatives for agri-food SMEs and specifically its role in the collaboration of business actors and customers where the overall objective of generating benefits from the exchange process. This study addresses this gap. The transformation of fresh produce marketing in Indonesia, from a product-focused approach towards a customer-centric approach, was selected to explore value co-creation and its potential benefits, including the exchange of tangible resources, intangible resources and knowledge. The findings illustrate that e-commerce involves fewer intermediaries in the food chain by facilitating the engagement of multiple stakeholders and provides a solution to address market needs through collaboration within the agribusiness networks. Co-creation via e-commerce channels reveals the benefits for agribusiness actors through economic, cognitive, social and marketing benefits. Benefits of co-creation for consumers include economic, cognitive, social and psychological benefits. The findings provide insights into the co-creation concept in an agri-food context through an online platform for B2B and B2C, that will have a theoretical and practical use for future business and marketing.

Keywords
value co-creation, value network, fresh produce marketing, e-commerce, market transformation

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/PWJ4zdVh8pgG

Corresponding Author
HARI SOESANTO

Institutions
Human Resources Development Agency of DKI Jakarta Province

Abstract
This study aims to build a conceptual model of an adaptive strategic food commodity management system held in the scope of the regional government using the Soft Systems Methodology (SSM) approach. The use of this method is based on the fact that strategic food management in the implementation of the regional government is messy, ill-structured, complex and multidimensional therefore it requires a systemic and holistic approach, one of which is through SSM. The use of an adaptive strategic food commodity management system is very important as an effort to integrate strategic food commodity data which have been scattered in various stakeholders. Moreover, by using information technology, the system can optimize the best distribution chain of strategic food commodity in the region of Indonesia. However, research related to the use of the SSM approach in managing strategic food commodity using information technology to face global trade competition is still limited. The need to integrate data from strategic food commodity stakeholders is expected to be able to produce the best scheme that is adaptive to dynamic changes to face global trade competition.

Keywords
strategic food commodity, global trade, soft systems methodology

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/bXwnkevVmU84

Corresponding Author
Asaduddin Abdullah

Institutions
School of Business IPB University (Bogor Agricultural University), Jl. Raya Pajajaran, Babakan, Bogor Tengah, 16128, Indonesia

Abstract
The price of corn is falling and the global chain feed company were maximizing their profit by a hedging strategy. Even though the corn price was believed to rise by nearly 25% above current levels by the end of this year, its uncertainty was high due to many feed companies was unsure if the price had touched the bottom. Therefore, the hedging strategy will not guarantee positive outcomes. This study used two Indonesia Listed feed company and their performance in hedging strategies. We employed simulation model to analyze the corn price. The results illustrate various corn price impacts on the feed company profit based on their cost-benefit structure. The study shows that the hedging strategy gave a profitable impact if the corn price was ranging between $ 3.50 to $ 3.70. While if the price stable at $ 4.00 in three consecutive weeks then the hedging policy should be considered the new price in combination with a proper inventory policy in order to maintain a higher profit. In the other hand the Indonesian government also has the policy to achieve self-sufficient corn production, but with the corn price is falling the government facing difficulties to fulfil. This concludes that the hedging policy should be evaluated from time to time to ensure its impact on the company in the global value chain.

Keywords
Global trade, Corn Commodity Price, Hedging Strategy, Simulation Scenario

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/udvtG3nXLQfV

Corresponding Author
Amaliyah Asad

Institutions
University of Trilogi

Abstract
The purpose of this study is to formulate a development strategy to become a technosociopreneur for the Halal Travel Agency in order to increase tourism rates in Indonesia. The research was done using qualitative method with secondary data obtained from literature studies. The data is then analysed using qualitative descriptive techniques through three stages of analysis, namely data reduction, data presentation, and conclusion drawing. The results of the study show that in order to become a technopreneur, Halal Travel Agency must develop expertise and application in technology and improve its social orientation based on the role of the human resources, as well as integrate all parties involved in forming a halal tourism system. The technology that must be mastered and applied primarily is technology to help customers to access information easier, make choices on tourist destinations and packages, and make reservations. The social orientation that must be improved is mainly in terms of efforts to promote domestic halal tourist destinations which subsequently increases the socio-economic impact of the wider community.

Keywords
Technosociopreneur, Creative Economy, Halal Travel

Topic
Human Capital Development Strategies

Link: https://ifory.id/abstract/ZKmrfW9qd6ae

Corresponding Author
Rahayu Ningsih

Institutions
a) Ministry of Trade
Center for Domestic Trade Analysis
Jl. M.I.Ridwan Rais No.5, Jakarta, Indonesia
*rahayuningsih75[at]gmail.com
b) Departement of Economics, Faculty of Economics and Management, Bogor Agricultural University, Bogor, Indonesia

Abstract
The potential of digital economy in Indonesia in 2025 is predicted to provide added value up to USD 115 billion. Meanwhile, the adoption of e-commerce by SMEs in Indonesia is still limited. Based on survey of Indonesian E-Commerce Association (IdEA), less than 16 percent of SMEs utilize the marketplace to sale their products. This study aims to analyze factors that influence SMEs in marketing their products through e-commerce. The unit analysis of this study was the SMEs in Yogyakarta. The method of analysis was by using the Importance-Performance Analysis (IPA). By considering internal and external factors that influenced SMEs, It was found that the main factors inhibits SMEs to adopt e-commerce are the lack of knowledge about the marketplace and the ability to look over the market opportunities through digital media. For this reason, It is important to provide business incubator model that is integrated with a training system, mentorship, and access to financing and marketing for SMEs.

Keywords
SME, e-commerce, marketplace, Importance-Performance Analysis (IPA)

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/ZQrVwMcbD9Px

Corresponding Author
REGITA HIKMATUZ ZAKIA

Institutions
a) Politeknik Statistika STIS, Jl. Otista No 64C, Jakarta Timur 13330
*15.8839[at]stis.ac.id
b) Politeknik Statistika STIS, Jl. Otista No 64C, Jakarta Timur 13330
siskarossa[at]stis.ac.id

Abstract
Gold is one of the precious metals. Gold, which is processed in the form of bars and jewelry, is one of the most desirable investment items of the world community. In Southeast Asia, Indonesia is the highest gold producer, and Singapore has become the main destination for Indonesian gold exports since 2014. The volume of Indonesian gold exports to Singapore increased eightfold compared to 2013. At the same period, Singapore which is not a gold producer is one of the top 10 countries with the highest gold export value in the world, while Indonesias possition is left behind Singapore. This study aims to analyze the variables that affect the volume of Indonesian gold exports to Singapore in 2006-2017. The analytical method used is the Error Correction Mechanism. The results showed that in the short term there were significant effects of Indonesian gold production, Singapore FDI, and the previous gold exports volume on Indonesian gold exports volume to Singapore, while the exchange rate and world gold prices have no significant effect. The policy recommendation is government support in stimulating the establishment of national gold refining and manufacturing industry to increase profits by exporting value-added products through infrastructure and high technology support. This is because most of the gold exported to Singapore is raw gold. The government should encourage the refining and gold manufacturing industries by implementing the Good and Service Tax elimination. Besides, regulations need to be made to avoid excessive exploitation of gold due to high demand from Singapore.

Keywords
gold export, international trade, ECM

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/xtyHKADTrPYW

Corresponding Author
Aditya Rangga Yogatama

Institutions
a) Center for Strategic Issues Management, the Ministry of Trade
Jl. M.I. Ridwan Rais No. 5, Central Jakarta 10110, Indonesia
* ytc.yoga[at]gmail.com

Abstract
The development of the global value chains (GVCs) in recent years has changed our perspective of international trade. The most important feature of GVC is the fragmentation of global production, where many intermediate goods are produced in different countries and then exported to other countries for further production. This paper aims to identify determinants of Indonesias bilateral trade balance using new measurements based on international input output data, called trade in value-added (TiVA). The use of TiVA can prevent double counting in the estimate of the bilateral trade balance. This estimate is caused by an increase in export production requiring an increase in intermediate imports as a consequence of fragmentation of international production in the GVCs. The method used in this paper is fixed effect data panel, applied to Indonesias trade balance gravity model. The estimation results show that GDP and FDI are the main determinants of Indonesias trade balance in terms of GVCs. The estimation results also show that using measurements based on gross trade balance causes a large overestimation. Finally, the finding suggests that the Indonesian government should develop a trade policy based on TiVA so that the policies will relevant to the development of GVCs.

Keywords
Trade balance; Trade in value-added; global value chains; Indonesia

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/pdvuDBUazgFm

Corresponding Author
Nyayu Lathifah Tirdasari

Institutions
School of Business IPB University (Bogor Agricultural University), Jl. Raya Pajajaran, Bogor Indonesia 16151

Abstract
Despite the potency of digital marketing for a business, its potential to increase family business to be a global player is often neglected. Even though the number of the family business in Indonesia is very large. The purpose of this paper is to add existing literature of family business that aims in two ways: first, to provide an empirical study on digital marketing practice that is implemented by family business, and second, to understand digital marketing roles in family business strategy to be a global player and third, to identify its gap in practices. The papers reviewed and concluded past and extant literature using keywords family business and digital marketing. The results found most family businesses had been using websites only to display information about the business. Many features of digital marketing were not being capitalized. The results highlighted the importance of digital marketing for the family business as one of their business strategies in the global market. This study may provide family business to increase their role as a player in the global value chain. It also contributes to the limited source of literature concerning family business in Indonesia.

Keywords
family business, digital marketing, global trade, business strategies

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/cEH6hj28gmx4

Corresponding Author
Aditya Rangga Yogatama

Institutions
a) Center for Strategic Issues Management, the Ministry of Trade
Jl. M.I. Ridwan Rais No. 5, Central Jakarta 10110, Indonesia
* ytc.yoga[at]gmail.com

Abstract
A countrys sophistication of production and exports is important for economic transformation. Sophisticated production is generally associated with higher productivity, which in turn can lead to higher income and improved welfare. Skills improvement is a key channel through which export can affect production, export sophistication, and income. This paper aims to examine the effect of exports to developed countries on the export sophistication of ASEAN 5 countries and relatively shows Indonesias position towards other ASEAN 5 countries in terms of export sophistication. The method we used is fixed effect panel data model by using the UNCTAD advanced country diversification index as dependent variable, which measures the similarity of exports with exports of developed countries. Empirical results show that exports to developed countries are associated with higher export sophistication. The export sophistication of Indonesia is relatively low compared to other ASEAN 5 countries, which is still below Malaysia, Thailand, and the Philippines. This paper suggests that the Indonesian government needs to encourage Indonesian exporters to increase exports to developed countries in order to enhance their productivity and product quality, which in turn will increase Indonesias exports.

Keywords
Destination of exports; Export sophistication; ASEAN-5

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/JRU9yLQ8zbT3

Corresponding Author
Radite Teguh Handalani

Institutions
Human Resource Development Agency of DKI Jakarta Province

Abstract
This study aims to analyze the effectiveness of Inflation Targeting Framework to global trade, economic growth, and human development index. The implementation of the flexible Inflation Targeting Framework policy by Bank Indonesia since 2005 aims to improve macroeconomic stability. It is also conceptually intended as an instrument to respond to changes in economic conditions in a flexible and responsive instrument to minimize the impact of economic crisis. However, in every economic concept and model, it certainly contains weaknesses, so it needs to be anticipated. To be able to conduct a study according to its purpose, this study tries to analyze the determinant of Inflation Targeting Framework to variables of economic growth, global trade, and human development index. It is expected that using data and information as well as the econometric approach of research can find a model that illustrates the interrelationship between variables in the study so that it can be useful as a means of establishing effective economic policies in order to improve the public welfare.

Keywords
Flexible Inflation Targeting Framework, Econometrics, Human Development Index, Global Trade

Topic
Human Capital Development Strategies

Link: https://ifory.id/abstract/MUVKbyxcvRTQ

Corresponding Author
Arih Thoyyibatul Izdihar

Institutions
Politeknik Statistika STIS

Abstract
Electronic commerce is an excellent capital to support the Indonesian economy. However, e-commerce can shift the demand for labor through the reduction of conventional or retail employment and increase the demand for labor in the fields of technology, information, communication, and knowledge (ICTD) which has the potential to increase unemployment. However, there has been no empirical research that discussed the impact of e-commerce on the shifting demand for labor in Indonesia. The purpose of this research is to find out the description and the factors that influence the demand for ICTD and conventional labor in Indonesia year 2015 - 2017. The statistical method used is panel data regression. This study proves that shifts in labor demand have occurred in Indonesia. E-commerce has a positive and significant effect on the demand for ICTD labor and negative and significant effect on the demand for conventional labor. Based on this research, the government needs to prepare public access facilities to be able to take advantage of new technology and improve the retail sector in order to compete with e-commerce.

Keywords
Shifting of labor demand, e-commerce, and panel data regression

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/vFwjhTZaYcyU

Corresponding Author
Sevi Oktafiana Fortunika

Institutions
Institut Pertanian Bogor

Abstract
Indonesia is the largest coffee producer in the world after Brazil, Vietnam and Colombia. One of the mayor markets for Indonesian coffee is Japan. This paper, therefore, analyzed the position of Indonesian coffee, either green bean or roasted coffee in Japan. The linear Approximate Almost Ideal Demand System (LA/AIDS) model was used to estimate a system of expenditure share equations for Indonesian coffee and its competitors. Time series data from 1996 to 2017 were obtained for the analysis. Empirical results indicated that most of the slope coefficients were statistically significant and in accordance with microeconomic theory. The significant independent variables of green bean were the price of vietnamese coffee, gross domestic product of Japan, and exchange rates of Japan to Indonesia. Then, the significant independent variables of roasted coffee were exchange rates of Japan to Indonesia, import tariffs and Sanitary and Phytosanitaryas as non tariff measures variable. It was known that tariffs and non tariffs measures effected the Indonesian coffee demand only on roasted coffee. The position of Indonesian coffee was determined by its demand elasticity (price elasticity, cross price elasticity, and expenditure elasticity). Indonesian green bean was found to be inelastic in Japanese market, but Indonesian roasted coffee was found to be elastic in Japanese market. Indonesian coffee substituted for Brazilian coffee and Colombian coffee, and complemented to Vietnamese coffee.

Keywords
Green bean, LA/AIDS, Non Tariff Measures, Roasted coffee, Tariffs

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/GD8F9AbMWBuC

Corresponding Author
Sri Sarjana

Institutions
a) SMK Negeri 1 Cikarang Barat, Jl. Teuku Umar No. 1 Cikarang Barat, Bekasi, Indonesia.
b) SMA Negeri 1 Cikarang Utara, Jl. KH Dewantara 91, Cikarang Utara, Bekasi, Indonesia.

Abstract
Global competition requires high speed, accuracy, creativity and consistency to win business through strengthening optimal competitiveness. Choosing the right business strategy create effective business achievements to be able to compete in the face of uncertain and turbulence economic conditions. This study empirically investigates important role of human capital, infrastructure, supply chain, and technology on companys business strategy in industrial estate and its impact on strengthening competitiveness of manufacturing industry. The author conducted survey of companies in industrial estate to test hypotheses and apply survey analysis techniques using structural equation modeling. Results of this study concluded that human capital, infrastructure, supply chain, and technology have positive influence on competitive strategies and have positive impact on competitiveness of manufacturing industries, especially those located in industrial estates. In addition, importance of choosing right business strategy greatly determines how much this business has superior competitiveness compared to its business competitors. This research is expected to be used as suggestion and reference for business units and manufacturing industries to be used as one of considerations in the development of companies in industrial estates that are being developed widely, especially outside Java by government to get best competitiveness.

Keywords
Competitiveness; Business strategy; Supply chain; Human capital

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/VuwbzJc3jDAQ

Corresponding Author
Husnul Isa Harahap

Institutions
Department of Political Science Universitas Sumatera Utara

Abstract
A trade war is a conflict that occurs between two or more countries in the sector of trade. The conflict can be seen in the case of an increase in tariffs, or other obstacles made to disrupt the economic balance of a country, so that the country changes its economic policy or trade. One issue in trade wars is environmental issues. What are these issues? This study was conducted with a political ecology and political economy approach and data collection using library and internet. The findings of this study describe that there are three main environmental issues in a trade war. First, the issue of environmental harm. Issues on health standards on traded products. Third, human rights issues. The study also found that there were always double standards in trade political policies that tended to have a taste of trade wars.

Keywords
Trade war, environmental, political policy, double standards, diplomacy.

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/khD8t4VLaupe

Corresponding Author
AYU SINTA SAPUTRI

Institutions
Trade Analysis and Development Agency, Ministry of Trade of Republic of Indonesia
Jl. M. I. Ridwan Rais No. 5, Gambir, Jakarta 10110, Indonesia
*ayusinta.saputri[at]gmail.com

Abstract
Wood and paper industry sector become the most heavily sector which has been charged with trade remedy in Indonesia mostly due to the implementation of log timber export ban policy. The implementation of this policy since 2012 has received many trade remedy allegations, particularly subsidy allegations by trading partner countries. This study aims to evaluate the log timber export ban policy and proposed alternative policies that could minimize the potential for alleged subsidies. The study used some different methodology included a normative juridical legal analysis based on the DS491 case study: US Coated Paper, regulatory impact analysis (RIA), and CGE Model to simulate the impact of trade remedy on Indonesian exports and the impact of alternative policies. The results shows that the imposition of trade remedy by partner countries has a negative impact on the export performance of Indonesian wood derivative products. Based on the DS491 case study, the log timber export prohibition policy concluded as a subsidy. While the impact of log timber ban export on financial contribution is still debatable. This study recommended that better alternative policy option that provide benefits in supporting forest sustainability and the continuity of downstream industries made from wood is to continue the log export ban by adjusting the legal text with WTO principle, namely conservation of natural resources in Article XX GATT 1944 (general exclusion) and clarifying that the control of forests by the government is not dominantly supporting the formation of domestic market prices.

Keywords
CGE, export policies, RIA, timber logs

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/Rqf4DybVxa3d