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Journal : Journal of International Conference Proceedings

The Impact of Financial Accountability, Internal Control and Government Expenditure on Social Welfare Baries Ferryono; M. Pudjihardjo; Ferry Prasetyia
Journal of International Conference Proceedings (JICP) Vol 5, No 2 (2022): BEFIC Conference Proceeding
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/jicp.v5i2.1678

Abstract

One of the goals of the Indonesia is social welfare. However, there are still Indonesian people who suffer for living. The local government expenditure, which is expected to encourage welfare, still hasn`t show satisfactory results. This study aims to determine the impact of financial accountability, internal control and government expenditure on social welfare. This research was conducted in 508 districts/cities in Indonesia within period between 2015-2019. The results indicate that financial accountability has various effects on welfare. Only the unqualified opinion has a significant effect on all welfare indicators. The audit findings were not proven to have a significant effect on welfare. The results also indicate that internal control has a significant influence on all welfare indicators. The higher the internal audit capability and the internal control system maturity level, the greater the impact on promoting welfare. Government expenditure, in aggregate, has a significant effect on most welfare indicators. The results of this study further strengthen the role of internal control to promote welfare. Therefore, it is important that the local government considered improving the internal audit capability and the internal control system. Keyword: Accountability, Government Expenditure, Internal Audit Capability, Internal Control System, Welfare
Harnessing The Internet for Inclusive Development: Evidence from Spatial Panel Data Analysis in Indonesia Karmila Maharani; Munawar Ismail; Ferry Prasetyia
Journal of International Conference Proceedings (JICP) Vol 5, No 2 (2022): BEFIC Conference Proceeding
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/jicp.v5i2.1691

Abstract

Technology utilization is often considered one of the main drivers promoting inclusive development. As a form of technology utilization, whether using the internet can promote inclusive development has been a concern for researchers and policymakers. Considering geographical connectivity characteristics, we examine the effects of internet penetration on inclusive development by applying spatial econometric models and using data from 34 provinces in Indonesia from 2015 to 2020. This study reveals that encouraging the internet penetration can significantly improves the inclusive development in a province. However, the increase of internet penetration leads to the decrease of inclusive development in neighboring provinces. The digital divide among provinces in Indonesia can be attributed to this phenomenon. This study also indicates a strong positive spatial correlation of inclusive development. Our findings point to the need for policies to promote people's use of the internet to achieve more benefits from development, balance the digital development to reduce the harmful effects of the digital divide, and consider the spatial aspects when making policies to promote inclusive development.Keywords: Inclusive Development; Internet Penetration; Spatial Analysis
Fiscal Decentralization and Per Capita Income Convergence between Regencies/Municipalities in Java Island Rima Melati Anggraeni; Mohamad Khusaini; Ferry Prasetyia
Journal of International Conference Proceedings Vol 5, No 4 (2022): FEBIC International Conference Proceeding
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/jicp.v5i4.1906

Abstract

This study aims to analyze the existence of beta absolute convergence and beta conditional convergence, the impact of fiscal decentralization in terms of income and expenditure side on per capita income and the process of accelerating the per capita income convergence using 2015-2019 panel data of 113 regencies/municipalities obtained from Central Bureau of Statistics and the Directorate General for Fiscal Balance. Using fixed effect regression models, this study confirms that there are beta absolute convergence and beta conditional convergence in Java Island during 2015-2019. Other findings are Local Own Source Revenue and Fiscal Balance Fund have a significant positive effect on per capita income growth, while Personnel Expenditure and Capital Expenditure have a significant negative effect on per capita income growth. The results also show that all indicators of fiscal decentralization play significant role in accelerating the convergence of per capita income. Based on the results of estimates, Local Government Own Source Revenue should be optimized and quality of government spending have to be improved to foster income per capita convergence between regions in Java Island.Keywords: income per capita convergence, fiscal decentralization regional inequality, absolute beta convergence, conditional beta convergence
Flypaper Effect: The Shifting Unconditional Transfer and Private Income in Indonesia Sherlita Nurosidah; Mohamad Khusaini; Ferry Prasetyia
Journal of International Conference Proceedings Vol 5, No 4 (2022): FEBIC International Conference Proceeding
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/jicp.v5i4.1935

Abstract

This study aims to analyze the behavioral pattern of local government as seen from their spending regarding unconditional transfer and private income. Flypaper effect has been a major phenomenon in academic research. Nevertheless, in Indonesia, such research, especially the one focusing on the shift of unconditional transfer and private income, never been caried out. Over 22 years, Indonesia has been implementing decentralization which makes it more intriguing to see local governments’ budget and spending decisions’ motives. This paper uses a panel data from 476 districts and cities in Indonesia for 11 years. Classical assumption tests, endogeneity test as well as instrumental validation test were caried out before doing the regression. The result from two-stage least square regression shows that flypaper effect does not present in total spending yet appears in four other kinds of spending. Asymmetric response of those five are quite varied. Total expenditure and capital expenditure have symmetrical response. Meanwhile, operational spending and transfer spending have a fiscal replacement type of asymmetry. On the other hand, unexpected spending shows a fiscal restraint asymmetry. The direction of private income’s influence to spending also seen to be different from one another.
Agriculture Supply Chain Optimization in East Java Ferry Prasetyia; Farah Wulandari Pangestuty; Andhika Paratama Herlambang
Journal of International Conference Proceedings Vol 5, No 4 (2022): FEBIC International Conference Proceeding
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/jicp.v5i4.2184

Abstract

The goal of this study is to look at the value chain for strategic agricultural commodities in East Java and optimize the supply chain. Input-output analysis, supply chain descriptive analysis, institutional pattern analysis, trading margin analysis, value chain analysis, root cause analysis, and the Analytical Hierarchy Process are among the analytical methods used. According to the findings of this study, sugar cane, cayenne pepper, and corn are three strategic agricultural commodities in East Java with a relatively long supply chain. However, the study discovered that among other supply chain actors, farmers and breeders have the lowest price margins, while collectors and wholesalers have the highest. This implies that there may be opportunities to improve the supply chain for these commodities by addressing the problems that farmers and breeders face.
Does the VR Experience Influence Visit Intentions? Case Study of Ijen Crater in Indonesia Nur Halimah Halimah; Dias Satria; Ferry Prasetyia
Journal of International Conference Proceedings Vol 6, No 3 (2023): 2023 ICPM Penang Proceeding
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/jicp.v6i3.2432

Abstract

Tourism plays a crucial role in the Indonesian economy. However, the Covid-19 pandemic has substantially impacted the tourism industry. One of the destinations that have been heavily affected is the Ijen Crater. Virtual tourism has emerged as a crucial tool for promoting destinations, including the Ijen Crater, and is helpful to both tourists and tourism managers. This study examines the influence of information access, flow, and telepresence, representing the virtual reality (VR) experience of the Ijen Crater, on tourists' intention to visit the site. Hedonic value mediates the relationship between the VR experience and visits intention on the Ijen Crater. The study involved 117 respondents who had experienced Ijen crater virtual reality, and the SEM-PLS method was used for analysis. The research findings indicate that flow and telepresence have a significant influence on hedonic value, and flow itself has an indirect effect on visit intention. While information access does not significantly impact hedonic values, information access and telepresence do not indirectly influence visit intention to The ijen crater. These findings contribute new insights for researchers, stakeholders, and managers of Ijen tourism.