Indonesia Conference Directory

Corresponding Author
Kumara Jati

Institutions
(a)Indonesian Trade Promotion Center-Chennai-India, Ministry of Trade of Republic of Indonesia.
kumara_jati[at]yahoo.com

(b)Trade Analysis and Development Agency,
Ministry of Trade, Jakarta, Indonesia,
yudi.fadilah[at]gmail.com

(c)Trade Analysis and Development Agency,
Ministry of Trade, Jakarta, Indonesia,
immanuel.lingga[at]gmail.com

Abstract
Corn and coffee are the two main export commodities that are important for the development and employment of workers in Indonesia. The appropriate export policy strategy is needed when the prices of export commodities fluctuate. The factors of the rainy and dry seasons are also relatively influential on price fluctuatuions which ultimately can be considered to be able to help in the strategy of increasing export. The model used in this study is Autoregresive and Moving Average and Autoregressive Conditional Heteroskedasticity/Generalized Autoregressive Conditional Heteroskedasticity (ARMA-ARCH/GARCH) with dummy variables. The data used are corn and coffee prices from Januari 2010 to December 2018. The ARMA-ARCH/GARCH model can help show the patterns of corn and coffee price movements during the rainy and dry seasons. The ARMA-ARCH/GARCH model with the dry season dummy variable significantly turns out to have more influence on the conditional variance of corn and coffee prices compared to the rainy season dummy variable. Relevant authorities related to export policies need to be able to provide specific strategies in the event of a long dry season because they can affect the fluctuations in corn and coffee prices. Increased the value added and a good commodity storage system can be a good strategy in dealing with price fluctuations due to bad seasons.

Keywords
Export Policy, Corn and Coffee Price, ARMA-ARCH/GARCH, Rainy and Dry Seasons.

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/Q7pwynHAUqru

Corresponding Author
AYU SINTA SAPUTRI

Institutions
University of Wijaya Kusuma Surabaya, Ministry of Trade

Abstract
Agricultural is important sector for Indonesian economy with 21.8% contribution to total non-oil and gas export in last 5 years, and grow at 1.9% annually. Agricultural products export is dominated by oil palm and its derivative contributed about 55% of total non-oil and gas export. It is observed that Indonesia agricultural products faces challenges in complying with stringent non-tariff measures (NTMs) imposed by importing countries, such as SPS and TBT. This article tries to address some NTMs issues on Indonesian agricultural export such as coverage ratio, regulatory distances, and the most prevalent NTMs on Indonesian agricultural export. The study utilizes coverage ratio indicator and regulatory distance analysis. The study shows that the ability of Indonesia for better market access on major trading partner depends on the ability to comply with SPS and TBT measures, shown by their high prevalent. However, coverage ratio average on Indonesian agricultural export is only 13% implies that NTMs policy on agriculture products imposed by Indonesian FTA/CEPA trading partners impacted only 13% of Indonesian agriculture products export to its FTA/CEPA trading partners. The regulatory distances between Indonesia and her agricultural export partners is 0.43 indicates that 43% of Indonesian NTMs on agriculture products are different with its main FTA/CEPA trading partners. Indonesia is encouraged to address NTMs issues with its FTA/CEPA trading partners, particularly on any stringent NTMs and procedural obstacles as they often burden exporter related to SPS and TBT implementation.

Keywords
Non-Tariff Measures; Regulatory Distance Analysis; coverage ratio

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/Vrp6fDMgANhw

Corresponding Author
Ratnaningsih Hidayati

Institutions
Center for Trade Education and Training
Ministry of Trade Republic of Indonesia

Abstract
The development of information technology (IT) has disrupted the world business. E-commerce significantly increases effectiveness and efficiency in trade. This research analyzed factors affecting e-commerce adoption by the Small Medium Enterprises. A quantitative approach was applied in this study, with a questionnaire as a tool to determine the impact of internal and external factors regarding to the e-commerce adoption to the SMEs performance. A multiple linear regression analysis was used to test the hypothesis. The results showed that the variables of organizational support, technology competence, and external environment, simultaneously affect the performance improvement on e-Commerce adoption by SMEs in Jabodetabek Area.

Keywords
Keywords: organizational support, technology competence, external environment, e-commerce, performance improvement, SMEs.

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/zKfFNwvmup6P

Corresponding Author
Bachtiar H Simamora

Institutions
a) Sekolah Kajian Stratejik dan Global Universitas Indonesia
b) Universitas Pelita Harapan, Banten Indonesia
c)Management Department, BINUS Business School Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia 11480

Abstract
To succeed in the retail banking business, the bank must continue to innovate and apply the latest technologies into their business to meet the various needs of customers. Generation Y (Gen Y) is a very potential market segments, especially with the latest technology that are already phenomenal, so-called e-money or electronic money with a smartphone device. This study was conducted to evaluate the factors that affect on intention to use Sakuku e-money of Gen Y. Based on the Technology Acceptance Model, and previous research journals, we propose a model research with five direct and indirect factors that affect on intention to use Sakuku e-money of generation Y. This research was conducted in Indonesian territory involving 100 respondents aged 16 s / d 35 years, have a smartphone and non Sakuku users. The data collection is done by distributing a questionnaire containing 26 questions with Likert scale of 1 - 5. The data was analyzed using SEM-based PLS. The results showed five factors are significant, and two of them have the most powerful affect to increase intention to use Sakuku e-money of the Y generation in Indonesia. We recommend some strategy on how to increase the number of Sakuku e-money users of the Gen Y in Indonesia.

Keywords
Perceived usefulness, Perceived ease of use, Attitude towards behavior, Intention to use.

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/kj3qb82cNBKv

Corresponding Author
Nyayu Lathifah Tirdasari

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

Abstract
Family business as the most business practice in the agricultural sector faces a challenge from global business via the Free Trade Agreement (FTA). The purpose of this paper is to provide business strategies that support the competitiveness of the family business in the global value chain. We reviewed related literature on family business and agriculture to describe the challenge and propose strategies that can bridge agricultural family business to become competitive. The study highlighted two challenges, namely labor usage, and capital usage. The amount of labor usage in Indonesia family business was higher than the global business. However, the competitiveness by labor usage was determined by knowledge transfer and farmers cooperation. Thus, the total value of capital usage in Indonesia family business was lower than the global business. The capital usage was driven the competitiveness by social capital reinforcement, capital allocation, and capital availability. In this case, Indonesian family business was found not able to take advantage of capital usage. The study proposed a strategy for the family business was to overcome the threat of labor usage by using its capital usage strength. These findings highlighted the importance of strengthening family business in agriculture sector based on each strength to overcome global trade challenge and take the opportunity from it. This paper may avail governments in drawing up policies for assisting the family business in the agriculture area to get global. It also contributes to the limited source of references literature regarding family business in agriculture in Indonesia.

Keywords
family business, agriculture, business strategy, global trade, global value chain

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/M6aCVr4w7Fyv

Corresponding Author
Dikky Indrawan

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

Abstract
Nowadays, one health awareness in the global value chain is increasing. Since, the threat of global occurrence of zoonotic diseases, and pathogens is higher due to global trade. Therefore, the trend of global food trade is driven by food security, sustainable agriculture, and healthy nutrition to foster the long-lasting well-being of the human population. However, food control and biosecurity as proactive and dynamic strategies were not having a clear aim between supporting producers or safeguarding consumers. These aims had a trade-off in policy impact resulting in possible lapses in food production and economic chaos. This paper aimed to describe the food control and biosecurity policy in the global value chain and its impact on global trade. We reviewed the literature on zoonotic diseases, and pathogens related to food production, biosecurity strategies and practices. Then, a comparative analysis was employed collated with the value chain governance to match its impact on supporting producers or safeguarding consumers. The results show that food control operational designs were inherently supported by biosecurity procedures. Moreover, the international regimes drove awareness, technical capacity and its impact on the policy dynamic in the global trade. The policy in Indonesia concerned more to support producers competitiveness in the global trade, while safeguarding consumers had less attention. This paper concluded that a more balanced policy is needed to implement food control and biosecurity in the global value chain.

Keywords
global trade, global value chain, chain governance, food control, biosecurity, one health, policy

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/PgNxFb3uApLU

Corresponding Author
Vera Bararah Barid

Institutions
Indonesian Institute of Sciences

Abstract
The development of Franchise business in Indonesia have positive impacts, especially followed by many employment opportunities. Although economic growth tends slowly, as well as fluctuations exchange rate, but it does not have an impact for franchise business because this business can continue until now and encourage informal workers and franchisee to improve their life. The growth of franchise business averages 12-16 percent per year and foreign franchise dominates in Indonesia. Many types of franchise in Indonesia ranging from small to large capital, but the small franchise which can absorb more informal workers than the big one. This franchise business is expected to increase human capital productivity both formal workers and informal workers, whereas the number of unemployed growing gradually. This article uses descriptive analysis methods with secondary data which see further the impact of development franchise in the absorption of informal workers. The result is franchise business give the good impacts especially for informal workers in Indonesia and it can help them to survive their life.

Keywords
Franchise, Empower, Informal Workers

Topic
Human Capital Development Strategies

Link: https://ifory.id/abstract/K3GcQqkb9Nuz

Corresponding Author
Khristian Edi Nugroho Soebandrija

Institutions
Industrial Engineering Department, Faculty of Engineering, Bina Nusantara University, Jakarta, Indonesia 11480.
Emails: Knugroho[at]Binus.Edu and Khristian.Edi.Nugroho[at]gmail.com

Abstract
Major portions of global trades occur via global value chains (GVCs) through production and service crosses multi countries borders. Countries, including Indonesia, as global citizens and GVCs participants, play vital role through ambidexterity methodology within exploitation of continuous improvement and exploration of breakthrough in in escalating complexity of GVCs. As part of the methodology, this paper elaborates both theoretical and empirical approaches on global trade, in order to generate formulas, input and considerations to Indonesian Government, in particular to Minister of Trade. Precisely, this paper elaborates the GVCs through its perspectives on Business Strategies, Industrial and System Engineering. The result of this paper prioritizes the provision of mentioned formulas, input and considerations to Indonesian Government; not limited to economic issues and trade policies. Subsequently, those considerations involve the disruptive innovation in digital transformation era in which Indonesia plays vital role as major player in global citizen of Industrial Revolution 4.0 and Making Indonesia 4.0.

Keywords
Global Trade; Global Value Chain; Ambidexterity; Business Strategies; Industrial and System Engineering

Topic
Business Strategies on GVC Participation

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

Corresponding Author
Lailan Tawila Berampu

Institutions
1.Student at the Doctoral Program in Management Sciences,Universitas Sumatera Utara
2.Senior Lecturer at the Faculty of Mathematics and Natural Sciences, Universitas Sumatera Utara
3,4. Senior Lecturer at the Faculty of Economics and Business,Universitas Sumatera Utara

Abstract
The GVC analysis which was previously called global commodity chain analysis was first developed to analyze trends in global manufacturing, and specifically to increase the role of retailers and brands in the name of companies in creating global production, distribution and marketing networks. In this study the authors analyzed the concept of glocalization on the global value chain in North Sumatra. The glocalization variables in this study were built on the basis of the hegemonic landscape in which there are cultural elements given by certain coffee brands and consumer experience of coffee. Conditions in North Sumatra, the global coffee shop is still the flagship coffee shop since the second wave of coffee industry to date. When anti-hegemonic discourse began to emerge in the third wave coffee industry, local coffee shops began to compete with global coffee brands through aesthetic diversity, communal solidarity, social values and adaptation to local coffee beans. The third wave coffee businessmen began to build their businesses by educating consumers to value local coffee shops as non-commercial environments where consumers are expected to be able to enjoy the servicescape of local coffee shops as a social and aesthetic interaction. However, based on the research results, the tendency for glocalization in North Sumatra is still in the form of creative consumption. The inconsistency of glocalization of the global value chain is also caused by global brands still embedded in consumer social networks and becoming integrated into the social world of consumers. The significance of this study is also due to the fact that it is still contradicted whether glocal and global studies are different studies or the same form of study.

Keywords
Glocalization, Global value chain, Coffee business, and third wave coffee

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/KgnpMf64uEbL

Corresponding Author
Aminah Aminah

Institutions
a) Mahasiswa Fakultas Ekonomi dan Bisnis Universitas Brawijaya
*ammyaminah1210[at]yahoo.co.id
b) Dosen Fakultas Ekonomi dan Bisnis Universitas Brawijaya

Abstract
The purpose of this study was to determine the effect of household characteristics on ecotourism and its impact on poverty alleviation in Lubuk Beringin Village. Ecotourism development is one of the keys to economic improvement towards poverty alleviation. The methodology used in this study is descriptive quantitative with a survey method approach. The characteristics of households have a large impact on the development of ecotourism and poverty alleviation. Gender of the head of the household is an important aspect of the development of ecotourism and poverty alleviation.The average of the asset, health, and education of household members become the assets for the ecotourism development, however, the household size, dependency ratio, and employer also provides an important influence on the development. The research hypothesis are 1. There is a significant influence of household characteristics on ecotourism; 2. There is a significant influence of household characteristics on poverty alleviation; 3. There is a significant influence of household characteristics through ecotourism on poverty alleviation. The implications of this study can be used as a basic consideration for local government or private sector for the ecotourism development as one of the programs on poverty alleviation in Lubuk Beringin Village.

Keywords
Eco-tourism, regional characteristic, poverty alleviation

Topic
Human Capital Development Strategies

Link: https://ifory.id/abstract/tQBKhrq4uxnJ

Corresponding Author
Avif Haryana

Institutions
Center For Domestic Trade Analysis, Trade Center and Policy Agency, Ministry of Trade
*vifhary[at]gmail.com

Abstract
Inter regions price disparity of cement in Indonesia has negative impact on infrastructural development. One of ways to minimise the above impact is by proposing one price policy for cement commodity. This study aims to address barriers that will arise if a single price cement policy is implemented and propose policy to reduce cement prices disparity between regions. Questionnaires and Focus group Discussion (FGD) are the instruments to collect data. These data were analysed using Regulatory Impact Assesment (RIA). The study found that the cement price disparity only occurs in some remote and border areas where logistics facilities are far behind. Also, it was found that one price cement policy would be difficult to be implemented. The reasons were due to 6 barriers: (i) logistical costs from factories to consumers; (ii) differences in the policies for regulating freight transport that vary between regions; (iii) production centers in Java while consumption spread throughout Indonesia; (iv) ownership status of private cement factories; (v) limited and varied frequency of transportation of transportation modes; (vi) consumers perceptions of cement brands vary in each region. However, from the perspective of CBA of RIA approach, there are only two policies that need to be considered seriously, those are, regional targeted subsidy and ceiling regional retail price policies.

Keywords
cement, price disparity, one-price policy, cost and benefit analysis

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/Xb6zZY7jArML

Corresponding Author
Nina Amelia Sasmita

Institutions
(a) Faculty of Psychology University of Indonesia & BMKG
Jl. Angkasa I No. 2 Kemayoran Jakarta Pusat
ninasasmita[at]gmail.com
(b) Faculty of Psychology University of Indonesia
Depok, Jawa Barat

Abstract
Revolution industry 4.0 changing the way people live and work. The organization has to do innovation to keep them competitive advantage. The process of innovation in organizations cannot be separated from the role of employees. Innovation arises when an employee develops, promotes, and implements new ideas which are key components of employees innovative work behavior (IWB). IWB is influenced by many factors, one of them is psychological capital (PsyCap). This study aims to look at the relationship between employees IWB and PsyCap and figure out the impact of the PsyCap intervention program in increasing employees IWB. The research was conducted in one of the government agencies, using quantitative and correlational methods. The study took 424 sample data and seek the relationship between PsyCap and IWB, and also took 18 random samples of employees for intervention program. Based on the regression analysis, it was found that PsyCap was positively related to IWB and the intervention result in the form of the Im Superhero in the workplace program show a significant change in the mean of PsyCap and IWB before and after the program. These results imply that organizations can improve their employees IWB by having PsyCap intervention. However, as the data was collected from the same source, the common method variance is a potential issue. The findings suggest that the organization can developing employees PsyCap, given its unique effect on the outcome variables of IWB. Originality/value from this study identified the broad and unique effect of PsyCap intervention in government institution.

Keywords
Psychological capital, innovative work behavior, intervension

Topic
Human Capital Development Strategies

Link: https://ifory.id/abstract/Em9dbnKp2t7x

Corresponding Author
Naufa Muna

Institutions
*Trade Analysis and Development Agency, Ministry of Trade
Jakarta, Indonesia
naufa[at]yahoo.com

Business Economics Faculty, Prasetya Mulya University
Jakarta, Indonesia
wr_susila[at]yahoo.com

Abstract
Increasing the participation of Indonesian leading sectors or products in the Global Value Chain (GVC) is a strategic approach to improve Indonesia export and to promote economic growth. Following this argument, the objectives of this study are to (i) identify leading products to be increased in the GVC; (ii) identify the strength, weaknesses, opportunity, and challenges, and (iii) formulate policy recommendations to increase their participation in the GVC. The study used combination of domestic value added, product matching and literature reviews. The results of the analysis showed 9 leading sectors have been identified, namely, basic metals (7 products), chemicals and pharmaceuticals (33), electricals (12), food products (29), information and communication technologies (ICT) (20), non-metallic minerals (7), other manufacturing (12), and textiles (54). Positive trend exports of these products is the main strength, while their main weaknesses are high dependency of foreign import of raw materials, low labor skill, difficulty of local firm in finding trade partners abroad. Positive trend of world import demand is an opportunity, while the main challenge is inadequate availability and compatibility of supporting domestic services needed for trade and ICT as well as ensuring cost competitiveness. Therefore, policy recommendations for increasing participation in the GVC are (i) improving the availability and compatibility of domestic infrastructure and services needed for export operations and ICT, (ii) easing the supply chain for intermediate products whether from domestic or import, (iii) capacity building of labors, and (iv) attracting more FDIs.

Keywords
Global Value Chain, Domestic Value Added, Product Matching, Leading Products

Topic
Business Strategies on GVC Participation

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

Corresponding Author
Ngadi Ngadi

Institutions
Pusat Penelitian Kependudukan LIPI

Abstract
Indonesia and Japan have established cooperation in various fields including investment and export-import in the oil palm sector. This research aims to explore the cooperation of Japan-Indonesia in the oil palm sector mainly in export-import and investment. Indonesias palm oil exports to Japan are still low as 90 percent of demand for palm oil in Japan is imported from Malaysia. The total CPO export to Japan in 2016 was 241 tons with a value of 166,000 $US. While the export value of other palm oil is 200,823 tons with a value of 136.43 million US dollars. Various obstacles faced by entrepreneurs are mainly related to procedures for managing exports that take a long time. Some investments in the palm oil sector by Japan have also been carried out in Indonesia.

Keywords
Japan-Indonesia Cooperation; Oil Palm Sector; Export-Import; Invesment

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/C6KnBgTAtU74

Corresponding Author
Kumara Jati

Institutions
(a)Indonesian Trade Promotion Center-Chennai-India, Ministry of Trade of Republic of Indonesia.
kumara_jati[at]yahoo.com.

(b)Trade Analysis and Development Agency,
Ministry of Trade, Jakarta, Indonesia,
zizasalam[at]gmail.com.

(c)Trade Analysis and Development Agency,
Ministry of Trade, Jakarta, Indonesia,
dian.laksani[at]yahoo.com

(d)Trade Analysis and Development Agency,
Ministry of Trade, Jakarta, Indonesia,
rep.ci2e[at]gmail.com

(e)Trade Analysis and Development Agency,
Ministry of Trade, Jakarta, Indonesia,
ridho.meyrandoyo[at]gmail.com

(f)Trade Analysis and Development Agency,
Ministry of Trade, Jakarta, Indonesia,
b.sumarjono[at]yahoo.com

Abstract
Indonesia and India are two countries that have direct maritime borders. In 2019, the two countries celebrate 70 years of diplomatic relations. The two governments are also determined to increase the business opportunities, prosperity and improve the economy. The inter-sectoral linkages can provide a better understanding regarding the Global Value Chain (GVC) participation of two countries. The Input-Output Table Analysis found that bilateral trade of two countries was dominated by intermediate input commodities (Indonesia 94% and India 85%). Both countries have to increase the value added of export commodities, to strengthen the Global Value Chain (GVC) participation. The deregulation and debureaucratization of certain regulations is one of the business strategies to increase the bilateral trade of both countries. Indonesia and India bilateral trade analysis show that from 2014-2018 there was a trend of increasing trade by 5.13%, but in 2018 there was a decline in non-oil and gas exports from Indonesia to India, one of which was an increase in palm oil rates. There needs to be a diversification of export products from intermediate input commodity to final products commodity whose trade barriers are relatively low.

Keywords
Indonesia and India, Business Strategies, Global Value Chain (GVC), Input-Output Analysis, Bilateral Trade Analysis

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/LBNz8tvTYfCq

Corresponding Author
Fithriyyah Shalihati

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

Abstract
The coffee business is rising globally which is indicated by the growing number of coffee companies, coffee shops, and customers. This rising trend also includes the Indonesian coffee business, but Indonesian coffee bean production could not benefit from this trend. This paper aims to map the Indonesian coffee business positioning in the global value chain. We performed a strategic analysis using the BCG matrix approach by looking at the local coffee business growth rate and market share in Indonesia. The study identified two coffee business types, namely macro-scale business, and micro-scale business. Each group was differed by two categories: business characteristics and its impact on the Indonesia coffee bean production. The result shows that the Indonesian coffee business was still as a follower in the global coffee business trend. Thus, they need a strategic plan to move from a follower to be a global player. The study shows that the BCG matrix was a useful tool to map the Indonesia coffee business positioning and their future strategic plan.

Keywords
Coffee Business, Coffee Bean, BCG Matrix, Global Value Chain

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/gG46UHMchuep

Corresponding Author
Steven Raja Ingot

Institutions
Trade Analysis and Development Agency, Ministry of Trade, Republic of Indonesia
*sri.bako[at]gmail.com

Abstract
The Global Value Change (GVC) has proved to be an important factor that encouraged trade in the last 30 years. About two-thirds of world trade involves intermediate goods that cross the border during production through GVC and shown significant improvement of foreign content of export from 18% to 25% within 1995-2014. Economic cooperation is proven as a way to boost GVC participation within its member in the region, including the Regional Comprehensive Economic Partnership (RCEP) due to regulation uniformity. The study used Trade in Value Added (TiVA) data aims to identify Indonesias GVC participation within RCEP as well as its position in GVC participation. Specifically, this study uses the participation index, the index of the number of production stages and index of the distance of the final product. The study shows that Indonesias GVC participation is higher than neighboring countries such as Malaysia and Thailand however, compared to other East Asian countries Indonesia is still low. Most of Indonesias GVC participation is as a supplier of raw material. Within RCEP, Indonesias participation in GVC is still dominated by Low Technology Industries. To maximize Indonesia GVC participation within RCEP and boost trade, public-private cooperation and predictable trade, as well as investment climate reforms, is required.

Keywords
RCEP; GVC; Trade in Value Added

Topic
Business Strategies on GVC Participation

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

Corresponding Author
Iwan Hermawan

Institutions
Research Center, Secretary General and Expertise Body of Indonesian House of Representative

Abstract
Indonesian digital economy is projected to become the largest in Southeast Asia, promising more jobs, and more consumer choices for an emerging tech-savvy generation. One of efforts to realize that path, Indonesia has signed the 10th Package of ASEAN Framework Agreement on Services (AFAS). The commitment increases to trade in services cooperation for approximately 15 sub-sectors. However, the Indonesian readiness is highlighted by many parties, such as lack of human resources skill, poor infrastructure condition, and affordability uneven. So it is worrying that it would become a boomerang for national economic growth. The purpose of this study is to analyze Indonesian readiness for digital economy through trade in service in the ASEAN market. This study employs a quantitative approach with Gravity Model. The secondary data in the form of panel data period year 2014-2016 (annual) and includes ASEAN-6 countries. The variable digital economy readiness is a main explanatory variable interest and represented by networked readiness index. While the data sources come from Comtrade, IMF, World Bank, World Economic Forum, and Indonesian Ministry of Trade. The analytical method uses Poisson Pseudo Maximum Likelihood (PPML) and it is resolved with software of Stata 13. Based on the interim results indicate that the level of Indonesian readiness for digital economy; includes infrastructure, affordability, and skills of human resources; would effect positively the flow of trade in services in the ASEAN market. Therefore, it is important for the Government of Indonesia to ensure that there are prerequisites that must be prepared in grabbing benefits of the momentum of the digitalization era.

Keywords
Trade, Service, Digitalization, Gravity Model

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/NvzfYpytF7ur

Corresponding Author
Siti Miratul Khasanah

Institutions
Trade Analysis and Development Agency, Ministry of Trade, Republic of Indonesia
*sitimiratulkhasanah[at]gmail.com

Abstract
Global Value Chain (GVC) is a useful tool to track shifting patterns of global production. To boost trade, an economic cooperation is proven helpful as it can increase added value trade within members. This study aims to analyze the position of Indonesia in the GVC in ASEAN-Canada region. The study used backward forward linkage indicators based on TiVA (Trade in Value Added) database. The study shows that within ASEAN, Indonesia has forward participation level equal to 0.3%. This number is equal to the Philippines but lower than Cambodia at about 0.4%. Indonesia is higher than other ASEAN countries average such as Malaysia, Thailand and Singapore at 0.2%. This implies that Indonesia is good in terms as supplier to Canada. Indonesia will be able to supply raw materials to Canada compared its ASEAN peers. This is supported by the facts that Indonesia is country graced with natural as well as human resources. Indonesia should continue to take active role on GVC to provide raw material for global products. In the future, Indonesia should be proactive as production based to be able to increase added value in becoming a forward country. Indeed it will positively impact Indonesias economy in a sustainable manner.

Keywords
ASEAN-Canada FTA; GVC; Added Value

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/8tTNrkUmqavZ

Corresponding Author
Ngadi Ngadi

Institutions
Research Center for Population, Indonesian Institute of Sciences

Abstract
The use of internet has expanded widely in Indonesia, including Micro Small and Medium Enterprices (MSMEs). The remote areas that initially experienced barriers to marketing of their products and services could be helped by digital technology. This paper aims to discuss the internet marketing challenges of MSMEs in Yogyakarta. The data for the analysis is the result of research in Yogyakarta Province, 2017. Data collection was done by interview, FGD and literature review. The results show that internet has been used in most of MSMEs in Yogyakarta. Internet has expanded the market network so as to increase the demand of product. Increased demand of product have implications for the increase in income and welfare of workers in MSMEs. Some policies have been implemented by the government and the private sector in improving internet capabilities among prospective entrepreneurs such as Yogya creative homes, integrated business service centers, movements of 1000 startups and digital kampong.

Keywords
Internet marketing, MSMEs, and Yogyakarta

Topic
Human Capital Development Strategies

Link: https://ifory.id/abstract/GPBv8UNmnrTJ

Corresponding Author
Asaduddin Abdullah

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

Abstract
A current change in green economy and sustainability perspective and policy has impacted the crude palm oil price in global trade. The CPO Price and volume of trade have been decreased, trapped and fluctuating in short price range. Thus, Indonesia CPO producers become unfavorable by foreign investment. The paper objective is to investigate the correlation between the daily closing price of CPO and CPO futures with the Stock Prices of Oil Palm Producers that listed in Jakarta Composite Index. We modelled market reaction based On Balance Volume and Bill Williams Market Facilitation Index. The model used the daily closing price of three major CPO producers stock of CPO and CPO futures (CPO F) for the period ranging from 2008 to 2018. Three simulation scenarios were performed to indicates simulated CPO price that give the best investment for CPO Producers Stocks. This study gave information for the policy maker to protect the Indonesian CPO industry.

Keywords

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/qktf4n8dLA2E

Corresponding Author
Nyayu Lathifah Tirdasari

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

School of Business and Management ITB, Jl. Ganesha No. 10, Bandung, Indonesia 40132

Abstract
Despite the importance of business succession in a family business, the study with regards its key success factors is often neglected. Moreover, the key success factor before and after entering the global value chain might be different for a family business. The key success factors in succession with regards to the family business in Indonesia were explored to provide lessons that ease the succession process to be more effective in order to participate in a global value chain. This study employed a qualitative study approach with a structured interview to three family businesses involved in the food industry in Bogor, Indonesia. The results clustered key success of business succession into three factors, namely organization, successor, and predecessor. Each key success factor of business succession was associated with different attributes. The attributes of the organization were existence, development, family unity, and sustainability. The attributes of a successor were the commitment, leadership, communication skills, and persistence manner as well. The attributes of a predecessor were commitment, mentoring, persistence, and communication skill. This study found that the important attributes of key success factors were the commitment, leadership and mentoring process. This implies the successor was the main key success factor in business succession for a family business to compete in the global value chain.

Keywords
family business, succession, key success factor, business continuance, global value chain

Topic
Human Capital Development Strategies

Link: https://ifory.id/abstract/h4LmuzMKerVY

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
Building good human capital can be based on how the Education scheme and sustainable Long-term programs are built. In entering current market share, business organizations face a diverse work environment with sustainable change and development and with the speed to respond to change effectively. In addition, for Indonesia with its diversity, it has a duty to create competitive advantage based on the existence of quality human resources that contribute to the creation of organizational sustainability in the trade sector. The emergence of a series of challenges in the knowledge economy has had a clear reflection on business organizations that have begun to look for new mechanisms to compete and ensure their existence in the business world. Therefore, the importance of the concept of competitive advantage, based on human resources, is a requirement needed to face challenges faced by local, regional or international organizations (Global Institute, 2011). competitive advantage based on human resources is the main producer of new ideas, development of old ideas, and contributions to help in the ability of organizations to expand their current market share and maximize value. On the other hand, placing someone in the right position is also an optimization in productivity. This study aims to see the impact of competitive advantage through investment in intellectual capital and regional specificity as one of the elements in the creation of sustainable organizations in the export sector. Simple and multiple regression is used for data analysis and testing the hypothesis of this study. This research has achieved a series of results reinforced by previous studies in this field such as: Competitive advantage based on different capital is the optimal method that must be used because it contributes to the optimal investment of human resources. This leads to optimal organizational sustainability for companies in various fields and also contributes to the achievement of the companys mission and vision in the future.

Keywords
Competitive Advantage, Human Capital, Labor, Sustainable

Topic
Human Capital Development Strategies

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

Corresponding Author
Annisa Ramadanti

Institutions
School of Business IPB University
Jl. Raya Pajajaran, Babakan, Bogor 16151

Abstract
Floriculture is a blooming venture globally especially for many developing countries including Indonesia. In Indonesia, the current floriculture trend is driven by the Korean style flower arrangement and online shop. This trend has increased imported flowers; however, there is limited knowledge on the Indonesian flower that demanded locally and globally by this trend. This paper aims to map Indonesian floriculture in the global value chain. The strategic analysis was carried out by Business Model Canvas (BMC) in combination with a business model environment analysis and Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis to describe the whole map and its building block perspective. The study revealed that Indonesia floriculture export faces great competition from Thailand and Vietnam despite the remarkable opportunities in global and local trade. Consequently, Indonesia floriculture needs a strategic plan to increase their flower export and becoming a major global floriculture player. Based on the study, BMC helps in mapping the flower export, thus business model environment analysis and SWOT analysis are helpful in designing its future strategic plan.

Keywords
Business Model Canvas, Floriculture, Flower Export, Global Value Chain, SWOT Analysis

Topic
Business Strategies on GVC Participation

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

Corresponding Author
Darwin Simanjuntak

Institutions
Universitas Esa Unggul and Universitas Advent Indonesia

Abstract
The very core problems of the study are essential to determine the competitive marketing strategy of Furniture Enterprises. The study was generally using the descriptive method of research. Data were obtained by using a questionnaire ,and followed by an interview to obtain further opinions of each of the respondents. Relevant tables and matrices were generally presented to interpret and analyze the study. In addition, the percentage was used to compare the proportion of the frequencies of responses to the total number of responses to denote the order of importance of an item in the questionnaire. The study shows the following findings: living room sets, bedroom furnishings, dining room sets, chairs, tables, accessories, and decors are types of products produced. Quality of material used is a major factor of product attribute desired by the buyers. Lower prices, product quality, good design, and craftsmanship and on-time delivery are the competitive strategies of the products. Catalog, trade fairs, correspondence are more common methods of introducing the products to the buyers. United States of America, Australia, Japan, Sweden, England, Netherland, France, Germany, Canada, and the United Emirates Arab are major export destinations. Among the most severe problems are price control, unpredictable demand situation, and lack of market information. In addition, high interest rates and stringent collateral requirement prescribed by the financial institution and unfavorable tax rate was also reported as the severe problems as the result of government rules and regulations. Considering the significant contribution of the furniture industry to the economy, the government should continue to make the furniture industry as a priority industry. Reappraisal of present incentives toward the industry will have to be made. The government should help the industry to gather market information along with new design and technology and demands of the foreign market.

Keywords
Marketing Strategy, Customer Orientation, Furniture Industry

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/4cTHLg6eybuq

Corresponding Author
Maya Kuswaty

Institutions
Universitas Pendidikan Indonesia

Abstract
Determining the price of the lower limit and the upper limit of chicken meat from breeders produces a dilemma for small-scale independent farmers. Because the price that appears on the market sometimes falls and is far from the reference price. In addition, the cost of production is also at the upper limit of the upper limit of prices, so that farmers scream in arranging price strategies to reduce production costs. Based on a descriptive study of several independent farmers, the pricing should be balanced with the day old chicken (DOC) price policy and animal feed that must be stable. Independent breeders hope that alternative policies will be presented in tackling the deterioration in market prices and tend to be more profitable for integrated livestock companies. Thus, there needs to be a review of the policies rolled out by the minister of trade in embracing independent farmers, traders and consumers so that the trading system is stable.

Keywords
regulation of the minister of trade, livestock, and price stability.

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/uPJDfCeK37N8

Corresponding Author
Djoko Pitoyo

Institutions
Universitas Sangga Buana

Abstract
This study aims to determine the relationship of performance improvement through employee empowerment that is influenced by leadership factor and organizational culture in PT PLN Unit Induk Pembangunan(UIP) Jawa Bagian Barat, which move in the field of development project Transmission and Substation network of Banten, DKI Jakarta and West Java provinces . This research used questionnaire method with 47 respondents. The data collected were analyzed by using path analysis, in order to know the relationship between variables. From the results of this study found that leadership has no direct or indirect effect through employee empowerment variables significantly to the performance of PLN UIP JBB employees. This may be due to lack of leadership to communicate well to subordinates vice versa, in terms of solving a problem does not involve subordinates and how to find the best solution, and lack of employees who are experts in each field placement in relation to external parties PLN. Organization culture has a direct influence significantly on employee performance of 0.339, and organizational culture has a significant indirect influence on employee performance through employee empowerment 0.657577. This means that if there is an increase in the quality of organizational culture through employee empowerment then the performance of PLN UIP JBB employees will increase by 0.657577. Employee empowerment can significantly be influenced directly by the organizational culture variable of 0.641. This means that if there is an increase in the quality of organizational culture then the empowerment of PLN UIP JBB employees will increase by 0.641. Employee performance can be affected directly by employee empowerment variable of 0.497. This means that if there is an increase in employee empowerment quality then the performance of PLN UIP JBB employees will increase by 0.497.

Keywords
employee performance, empowerment, leadership, organizational culture.

Topic
Human Capital Development Strategies

Link: https://ifory.id/abstract/xMLEjDCJK8Xb

Corresponding Author
Immanuel Manurung

Institutions
a*) International Agribusiness and Rural Development, the University of Goettingen, Germany
b) Department of Agricultural Economics and Rural Development, the University of Goettingen, Germany

Abstract
Over the past decade, there have been fluctuations in the global price of CPO. These variations in global CPO price are likely to affect the local CPO price as well. To overcome this, the Indonesian government has implemented an export tax on CPO in order to maintain stability in the business of the CPO producers. The aims of this research are to assess the market integration and the price transmission between the international CPO market and the domestic CPO market of Indonesia as well as the effects of the Indonesian export tax on the domestic and on the international prices. The analysis uses weekly prices and estimation of Error Correction Model as an analysis method. The results of analysis show that the domestic CPO market of Indonesia is integrated with the international market. The domestic CPO market in Indonesia responds to price fluctuations in international market. In addition, although the imposition of the export tax of CPO in Indonesia slightly reduces instability of the domestic CPO price, the overall influence is still small. It can be inferred that the policy is effective to increase government revenue as a fiscal instrument at the expanse of oil palm farmers and producers of CPO. In practice, even though the policy maker has attempted to reduce the dependency of the Indonesian CPO producers on the world market by creating a demand market, but the Indonesian government still need to optimize the policy under the new format of the export tax of CPO.

Keywords
CPO, ECM, Export Tax, Market Integration, Price Transmission

Topic
Trade policies strategic Responses

Link: https://ifory.id/abstract/9aRgK32fPLWC

Corresponding Author
Khristian Edi Nugroho Soebandrija

Institutions
Industrial Engineering Department, Faculty of Engineering, Bina Nusantara University, Jakarta, Indonesia 11480.
Emails: Knugroho[at]Binus.Edu and Khristian.Edi.Nugroho[at]gmail.com

Abstract
Organization for Economic Cooperation and Development (OCED) indicates that services have contributed two-thirds of Global Gross Domestic Product (GDP). As part of methodology, this paper elaborates trade policy analysis from perspectives of Business, Industrial and System Engineering (BISYE). The objective of this paper is to provide the utmost analysis for Indonesian Government, in particular Minister of Trade. The mentioned utmost analysis refers to the attempts to answer the question of Quo Vadis Indonesia? Precisely, how Indonesia implements Service Trade Policies in the future to cope with global competition among trilogy on Society 5.0 (SC 5.0), Hallyu 2.0 (HY 2.0) and Making Indonesia 4.0 (MI 4.0). In the future, the implementation of service trade policies become more challenging within digital transformation. In narrower attention, the challenges constitute the scope of macroeconomic outcomes, in which trends of manufacturing industry augments into services-dependent. As consequences, these trends enhances participation in Global Value Chains (GVCs). This paper expands its analysis based upon OECD Services Trade Restrictiveness Index (STRI) that convey comprehensive regulations of service trade in 22 sectors across 44 countries. Ultimately as its extra mile analysis, this paper elaborates OECD and its STRI changes in Indonesia during Policy Reforms in Indonesia from 2014 until 2016. It is expected by having this ultimate extra mile analysis, this paper contributes to Indonesian Government, in particular Minister of Trade, including Policy makers in determining in the future on disruptive innovation in digital transformation and competitive service trade policies in global constellation toward Quo Vadis Indonesia.

Keywords
Trade Policy; Service Trade Policies; Services Trade Restrictiveness Index; Society 5.0; Hallyu 2.0; Making Indonesia 4.0

Topic
Trade policies strategic Responses

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

Corresponding Author
Mustofa Kamal

Institutions
Pusdiklatwas BPKP, Jalan Beringin II,Pandansari, Ciawi, Kab Bogor 16720 dan FH Unida Bogor

Abstract
This study aims to examine the development strategy and increase the role of small businesses in the E-market place for the procurement of government goods and services. One of the objectives of the procurement of government goods and services is to increase the participation of Micro, Small and Medium Enterprises. At least there are three government policies related to efforts to encourage the achievement of these objectives in the form of; provide opportunities for Micro, Small Business and Medium Enterprises, use information and communication technology and electronic transactions, and develop three Goods / Services Procurement E-marketplaces in the form of electronic catalogs, online stores, and Electronical tendering. Qualitative research is carried out using the applied law research approach. Secondary data analysis is carried out through a literature study of the mandatory policies and theories related to E-market place for procurement of government goods, small business development, and innovation. The results show that small businesses can use Strength, Weakness, Opportunity and Treath analysis to increase their role in E-marketplace procurement of government goods and services. Two strategies can be carried out by small enterprise, namely; strategies for improvement internal weaknesses in the form of strengthening business legality and innovating through information technology and strategies for cooperation or partnerships with business associations, online stores, medium-sized businesses and large enterprises, government cooperatives and micro, small and medium in the city /regency /province, and government procurement policy institutions.

Keywords
E-market place, small business, and innovation

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/ht4VdMXAvKm7