Optimum: Jurnal Ekonomi dan Pembangunan

Measuring poverty of province of Java using micro data, are the results the same as macro data?

Dania Hellin Amrina, Ferdian Badri, Rodhiah Umaroh, Didit Welly Udjianto — Thu, 20 Mar 2025 00:00:00 +0000

Poverty is a problem that still occurs in many countries, both developed and developing countries. One of the important pieces of information from using microdata is to provide a map of the characteristics of the target households. Characteristics of poor households obtained through analysis of micro poverty data. The data used in this study is IFLS (Indonesian Family Life Survey) 5 data using data from the Provinces of DI Yogyakarta, West Java, Central Java, East Java, DKI Jakarta, and Banten. The variables used are characteristic variables from the Multidimensional Poverty Index (MPI) indicators, namely household health, health insurance, school level, and quality of household life in the form of sanitation, drinking water, electricity, cooking fuel, vehicles, electronics, and savings. This study found that there are differences in poverty calculated by applying monetary and multidimensional poverty. This research shows that monetary (consumption) alone is not enough to explain the deprivation faced by the poor. The low level of education, health, and household quality in the form of drinking water is a concern for the government to evaluate existing programs and policies.

Blockchain acceptance and deployment: A catalyst for microeconomic stability with financial performance as a mediator

Komang Widhya Sedana Putra P — Thu, 20 Mar 2025 00:00:00 +0000

The study assesses blockchain technology acceptance and diffusion with its resultant impact on microeconomic stability, mediated by financial performance. It highlights blockchain's role in enhancing efficiency, transparency, and security, potentially increasing microeconomic stability. The questionnaires were administered to SME managers on the Indodax exchange platform, grounded in the Technology Acceptance Model (TAM) framework and Trade-off theory. Partial Least Squares Structural Equation Modeling (PLS-SEM) used for data analysis to establish the relationship among blockchain acceptance and deployment, financial performance, and microeconomic stability. The results indicated a significant positive consequence of blockchain acceptance and deployment on the financial performance of companies. Financial performance acted as the mediating variable between blockchain acceptance and deployment and microeconomic stability. Managerial implications show that commitment from top leadership, risk management, and stakeholder engagement are crucial for sustainable blockchain acceptance and deployment. This work elaborates on how blockchain technology can strengthen microeconomic stability and improve financial performance by providing practical guidance for organizations. However, it excludes considerations of operational costs, license fees, government regulations, cold chain management integration, demographic diversity, geographic expansion, alternative variables, sustainability, Bitcoin mining, longitudinal data collection, theoretical advantages for SMEs, supply chain efficiency, specific fintech subsectors, interoperability, scalability, macroeconomic variables, or ownership identity impacts. Despite these gaps, this research remains instrumental by providing foundational insights into the beneficial impacts of blockchain technology on financial performance and microeconomic stability, highlighting key areas for future investigation and guiding practice for current and potential adopters.

Analysis of the socio-economic impacts of Jatigede reservoir development on the Wado village community in Sumedang regency

Febby Andini, Winarno Winarno, Fadiarman Fadiarman — Thu, 20 Mar 2025 00:00:00 +0000

Climate change impacts changes in water availability for agricultural activities and water supply for household needs. Many regions in Indonesia and especially in West Java are already limited by the amount and quality of available water. Freshwater ecosystem are vulnerable to climate change and build reservoir is one of the solutions for water supply. This research analyzes the impact of the Jatigede reservoir inundation on the Wado Village community, including changes in population, education, employment, income, economic growth, and social community. The reservoir was built to overcome flooding in Indramayu and support irrigation in Cirebon and surrounding areas. Using a purposive sampling method, the study found a decline in community income with a sharp drop between 2022 and 2023. Proposed solutions include community empowerment, local infrastructure investment, and development of sectors such as tourism, agriculture, and fisheries to create employment opportunities. Socially, the relocation of residents led to changes in communication patterns, with houses now far apart. The implications of the research show significant economic and social impacts, such as the need for skills upgrading and job stability, as well as investment in local sectors. Inclusive and participatory approaches to development are also needed to enable communities to adapt to the social changes brought about by relocation.

Urban poverty and rural poverty in different countries: A systematic literature review

Silvia Tri Rahayuningrum — Thu, 20 Mar 2025 00:00:00 +0000

The complex issues on poverty is widespread globally and affecting countries at various levels of economic development. This study examines urban and rural poverty disparities using measurement, comparison, multidimensional analysis, and identifying contributing factors. Rural poverty shows significant reduction, while urban poverty is more complex. Cross-country comparisons reveal widespread rural poverty, influenced by human resources, nutrition, housing, and reproduction. India, China, and Indonesia have conducted more poverty-related research. Poverty reduction exhibits an inverted U-pattern relationship between Urban-Rural Income Ratio (URI) and rural poverty in several countries, with non-agricultural productivity impacting urban areas. Sustainable public policies and managing urban population growth are essential for poverty alleviation. Urban and rural poverty impact children's cognitive abilities and food consumption. Integrated policies are crucial, necessitating further research and community engagement. Longitudinal research and cross-country comparisons provide insights into effective poverty policies in diverse contexts.

Trends and dynamics of islamic invesment decision factors: A bibliometric analysis and comprehensive literature review

Siti Ikmatul Munawaroh, Taufiqur Rahman — Thu, 20 Mar 2025 00:00:00 +0000

Investment as part of economic development affects macroeconomi indicators, including the level of economic growth as measured by Gross Domestic Product (GDP). Indonesia as a country with an Islamic majority continues to experience an increase in the development of Islamic investment. This shows the strong role of Islamic investment in the formation of Islamic capital market capitalisation which has a major impact in encouraging Indonesia's economic growth. This study aims to map the factors associated with Islamic investment decisions on 829 publications articel in a period of 12 years starting from 2012 to 2023. This research method uses quantitative methods through Vosviewer Bibliometric Analysis and qualitative methods through literature studies. The results showed that 5 clusters with a total of 161 topic. Based on the keywords used, research trends indicate that sharia investment, motivation, and financing are the most frequently occurring terms. The implications of this research can help practitioners to design more effective investment strategies, and provide insight to future researchers in finding research novelty. In addition, for policy makers, this research provides a foundation to develop more effective regulations and policies to support Islamic investment as a driver of economic development.

Finance literacy, digital literacy and Micro, Small, Medium Enterprise (MSME) performance

Latifah Dian Iriani, Nurul Hidayah, Febry Jein Andjar — Thu, 20 Mar 2025 00:00:00 +0000

The low level of female participation in the labor market affects the income gap between men and women. However, the informal sector tends to be of interest to women, especially in the Micro, Small, and Medium Enterprises sector (MSMEs). MSMEs have a very vital role in Indonesia's economic growth. However, the development of MSMEs for women entrepreneurs has obstacles such as low access to business capital and marketing of MSME products. This is influenced by the low level of financial literacy and digital literacy for women in the MSME sector. This paper aims to ascertain the relationship among financial literacy and the performance of women MSMEs specifically with the variable of digital literacy as a moderator. This paper uses primary data through the distribution of questionnaires to women entrepreneurs (MSMEs) in Sorong Regency. The data analysis technique uses Structural Equation Model (SEM) and Partial Least Square (PLS). The results show that financial literacy has positive and significantly affect MSME performance. While, digital literacy has a positive effect on MSMEs performance. In addition, digital literacy has a positive effect in moderating the relationship between financial literacy and MSMEs performance for female entrepreneurs. However, financial literacy is not significantly effect on the performance of MSMEs for women.

Analysis of base sector and non-base sector on economic growth in Pagar Alam city

M. Ramadhan Pasandi, Muhammad Subardin — Thu, 20 Mar 2025 00:00:00 +0000

This study aims to examine the effect of the base sector and non-base sector on economic growth in Pagar Alam City, using time-series data from 2010 to 2022. The study employs Static Location Quotient (SLQ) and Dynamic Location Quotient (DLQ) analyses, followed by typology klassen analysis, to identify both base and non-base sectors. This study also uses multiple linear regression to estimate how different sectors influence economic growth. The gap of research is analyze in detail in combining these methods to evaluate sectoral impacts in Pagar Alam, a highland city with significant untapped potential. The result show that key sectors like agriculture, construction, and education play a crucial role in driving economic growth in Pagar Alam city, while non-key sectors tend to have a weaker or even negative impact. The implication of the study government should ensure the sustainability of Pagar Alam's agriculture, forestry, and fisheries sectors, which are vital to the local economy and tourism.

Analysis of stock liquidity in banking development: Evidence from Bank Jago

Adhelia Shury Ayunda, Vidya Purnamasari — Thu, 20 Mar 2025 00:00:00 +0000

This study is based on the development of digital banks that have begun to increase along with the emergence of many digital banks and the increase in the value of digital bank transactions since the Covid-19 pandemic in Indonesia. One of the digital banks that has become a pioneer of success is Bank Jago with the highest market capitalization value of other digital banks. This study aims to determine the growth pattern of Bank Jago's success which causes several factors to influence stock liquidity, namely company value, stock trading volume and stock trading frequency. The analysis method used is VECM (Vector Error Correction Model), a statistical technique that captures both short-term and long-term dynamics in a system of variables, making it particularly suitable for studying stock liquidity. The data used is monthly data with a time span from January 2020 to December 2023. The results of the VECM estimation test show that the variables of company value, stock trading volume and stock trading frequency have an effect on stock liquidity in the long-run due to the emergence of speculation that digital banks have positive prospects during the Covid-19 pandemic which caused an increase in Bank Jago shares from various aspects and had no effect in the short term due to a decline in investor views and company performance in the period at the end of 2022. The dynamic pattern between variables only occurs in quarters 1 to 5. In addition, shocks to the stock liquidity variables, company value and stock trading volume resulted in increasingly negative frequencies in stock liquidity. However, shocks to stock trading frequency have a positive effect on stock liquidity. The results of this study can be used to formulate strategies to increase stock liquidity at Bank Jago and can be implemented in other digital banks.

Analysis of the implementation of the minimum wage policy in Batu city

Wahyu Hidayat Riyanto, Muhammad Firmansyah, Zainal Arifin — Thu, 20 Mar 2025 00:00:00 +0000

A minimum wage policy is essential to maintaining economic stability and encouraging growth. A well-implemented minimum wage can increase employment opportunities and support industrial growth. Therefore, policymakers must consider local economic conditions and industry characteristics when setting minimum wage levels. This study analyzes the implementation process of minimum wage policy in Batu city. In addition, this study also identifies the impact of the policy on worker welfare and economic dynamics and evaluates the challenges and opportunities in implementing the minimum wage policy. This study is qualitative. Data analysis in this study uses a flow model validated through triangulation techniques to ensure accuracy and reliability. The results of this study indicate that 46% of employers comply with the minimum wage policy in Batu City. Workers who receive wages according to the minimum wage positively impact worker welfare; for the MSME category, entrepreneurs in the production and tourism sectors feel that minimum wage changes every year do not affect their ability to pay workers. Therefore, the Batu City government must actively disseminate the minimum wage policy with more optimal supervision.

The impact of globalization, macroeconomic variables, and financial development on economic growth: Evidence from ASEAN countries

Putri Eliza Syahda, Nora Ria Retnasih — Thu, 20 Mar 2025 00:00:00 +0000

Globalization in the modern world is behind the formation of emerging market countries through the transition in economic growth. ASEAN is considered as the driving force of the world economy, including the emerging market countries that grow within it. However, economic growth in ASEAN emerging market countries still has to face many challenges. In macro analysis, the parameter of economic growth is GDP. Over time economists have highlighted that there are many other indicators, one of which is globalization, macroeconomic performance and financial development. The aim of this research is to analyze the impact of globalization, inflation, public spending, human capital and financial development on economic growth. This research is relevant because it relates to factors that affect economic growth amid increasingly complex global challenges by providing a comprehensive view of the relationship between variables. This type of quantitative research is based on secondary data. The sampling procedure employed is purposive sampling, which was applied to 5 countries. Data analysis using the PVECM or panel VECM method. The results showed that in the long run globalization, inflation, physical capital, and financial development affect economic growth, but government spending has no effect. While in the short term both lag 1 and 2 all variables affect economic growth. The implication of the study that government to prioritize the effective allocation of public spending, ensuring that funds are directed toward productive sectors such as infrastructure, education, and health.