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Supply Chain Management for Value Added In Agriculture Sector of Indonesia Hadi Setiawan; Sofia Arie Damayanty; Rita Helbra Tenrini
International Journal of Supply Chain Management Vol 9, No 3 (2020): International Journal of Supply Chain Management (IJSCM)
Publisher : International Journal of Supply Chain Management

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Abstract

Abstract— macroeconomic aspects of preferred value chains. This paper introduces the concept of SCM and illustrates its applications in agroindustries, with a focus on Value Added Tac (VAT) in Indonesia. VAT is one of the main sources of tax revenue in Indonesia, which is a percentage applied to the sale price charged for goods or services at every point in the supply chain. Currently, the tax revenue is one of the fiscal risks that must be mitigated by the Government, since it never reached the target in the last ten years except in 2008. One discourse being raised to increase tax revenue is to charge VAT on all goods and services, including the agriculture sector. This paper uses the latest of Indonesian social accounting matrix (SAM) multiplier model to quantify the economic impact of the supply chain system for imposition of VAT on the agriculture sector. The overview of agriculture value chain in Indonesia was done and supply chain risk management and logistics cost were described. Then, the recommendation was provided for optimizing the agricultural value chain. The results is the imposition of VAT on agricultural sector in all supply chains will give a positive impact if all VAT revenue distributed to the poor
Labour Standards in the Global Supply Chain; Village Fund and Labour Working Hours in Indonesia Bondi Arifin; Rita Helbra Tenrini; Eko Wicaksono; Arif Budi Rahman; Irwanda Wisnu Wardhana; Hadi Setiawan; Sofia Arie Damayanty; Akhmad Solikin; Maman Suhendra; Acwin Hendra Saputra; I Gede Agus Ariutama; Praptono Djunedi; Rudi Handoko
International Journal of Supply Chain Management Vol 9, No 5 (2020): International Journal of Supply Chain Management (IJSCM)
Publisher : International Journal of Supply Chain Management

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Abstract- In the recent years, fashion brands and retailers in the West have introduced supplier’s codes of conduct to strengthen international labour standards in their supply chain. Village funds have been allocated since 2015, and increase overtime. In 2015, the allocation of village funds amounting to Rp.28.8 trillion increased to reach Rp60 trillion in 2018. Village funds were used to finance government administration, implementation of development, community development, and community empowerment. This research uses the difference-in-difference (DID) which is adapted to continuous treatment method to analyze the impact of village funds on the work of rural communities. The analysis uses "repeated" cross section data from SUSENAS 2012-2017. We found that an increase in village fund per capita was more likely to raise the labor hours in agriculture and service industries, primarily on non-Java islands. The recommendation of this study is the need for regulation to standardize the proportion of village funds allocation based on the demographic (or number of poor people) and geographical (land area) conditions of the regions. Moreover, increasing the effectiveness of organizational management can be implemented by increasing the capacity of village officials.