East Java Economic Journal

Spatial Decision Support System Model for Economic Resilience in East Java Province

2024-03-11T04:11:39+00:00

Economic resilience has many dimensions and aspects to consider. The complexity of studying resilience ultimately requires simplification in the form of a model that can be applied in spatial decision-making. This study aims to find a model and simulation of economic resilience policy priorities for East Java Province in the form of a Spatial Decision Support System. The calculation is done by applying the TOPSIS algorithm on the vectorMCDA plugin in a geographic information system and qualitative descriptive analysis. The results of the calculation indicate that the focus of economic resilience policy is on the aspects of recovery and transformational innovation, while the ideal resilience policy alternative is the most appropriate priority policy alternative.

Modeling of the Policy Design to Build Public Confidence Facing Recession Issues

2024-03-11T04:11:34+00:00

The condition of global economic uncertainty initiated the news that Indonesia is predicted to have the potential for recession. This study presents a model for designing policies to create public Confidence in East Java in the face of recession. The method used in this study begins with grounded theory and continues with modeling and policy simulation. Grounded theory is carried out with netnographic studies to find concepts and quantitative studies to test these concepts in the people of East Java. The netnography study was conducted by extracting sample data totaling 3,827 netizen comments using Nawala software and processed using NVIVO software. Quantitative studies are carried out by testing data collected with instruments in the form of questionnaires. The sample size amounted to 120, with respondents from East Java. Quantitative data were obtained using SPSS software to see how much influence factors affect public Confidence in East Java. Modeling is done using Powersim software, and policy simulation is done using Promethee software. The results show that low interest rates in optimistic simulations and Business as Usual (BAU) decisions can be made by Bank Indonesia (BI). The latest update in this research is that the modeling is carried out not only based on East Java's macroeconomic conditions but also on grounded theory studies in East Java community studies

From Cash to Central Bank Digital Currency: Can Gen Z Adopt It?

2024-03-11T04:11:22+00:00

This study aims to examine the intention of youth in Indonesia to adopt Central Bank Digital Currency (CBDC). A sample of 285 respondents was analyzed using SEM-PLS and in-depth interviews. The results of the study found that involvement facilitation, institutional trust, and technology trust had a significant effect on youth's intention to use CBDC. These findings emphasize the importance of building trust in technology and institutions, as well as increasing public confidence in the ability of central banks to launch and regulate CBDC systems. Empirical evidence also shows that facilitation and literacy provided by the authorities need to be a significant focus in addressing potential barriers to technology use among the public. Furthermore, there are maximum literacy facilities and consultation given can increase public confidence in CBDC provider authorities to continue to develop technology to the fullest.

Analyzing The Implementation of Green-Economy Inclusive Strategy in East Java Province Through Urban Good Governance in Green-Economy Framework: The Case of Surabaya

2024-03-11T04:11:18+00:00

The global uncertainty has forced countries including Indonesia to look on ways to stabilize themselves, one of them being the implementation of green-economy development. The lack of inclusive and environmental-oriented policy has created an urgency for East Java Province to prioritize the green-economy implementation. Therefore this paper analyzes a possible implementation of green-economy through Surabaya City’s green-economy concept. This city is chosen due to its status being the only city in East Java to have the Green Sister City Surabaya-Kitakyushu program. This paper uses green economy city development which has four main dimensions which are; decision making process, Implementation Capacity, green economy system and the socio-ecological dimension. A qualitative-descriptive method will be used in this paper, along with a thematic analysis technique to deeply explain the topic at hand. The result of this research is a strategy that can be referenced by Surabaya to develop the green-economy city as the city already has its basis, especially in its society’s system in approaching green-economy aspects. Aside of that, this research also presents 3 strategies of implementing green-economy policies for cities throughout East Java Province. These strategies are intended for those cities to be able to take the first step in developing a green-economy city by deeper understanding of local context, policy & capacity development, and monitoring & evaluation.

Is There J-Curve Phenomenon and Asymmetric Effects of Exchange Rate on Trade Balance in East Java?

2024-03-11T04:11:13+00:00

This study aims to analyze the effect of exchange rate asymmetry on the trade balance between East Java Province and the largest trading partner countries (China, Japan, and the United States) in the short-run and long-run and to detect the J-Curve phenomenon. This study uses the Nonlinear Autoregressive Distributed-Lag (NARDL) method with 2010Q1 - 2023Q1 time-series data. The results of the study show that in the short-run, both the appreciation (NEG) and depreciation (POS) of the exchange rate have no effect on East Java's trade balance in all models. However, in the long-run, exchange rate appreciation and depreciation have a significant negative effect on East Java's trade balance across all models. Based on the estimation results, it can be concluded that there is no J-Curve phenomenon in East Java's trade balance with trading partner countries. Because in the asymmetry model, the J-Curve phenomenon can occur if depreciation or appreciation has a significant positive effect and is cointegrated in the long-run, regardless of the short-run coefficient being positive or negative and significant or not significant. From these conditions, it can be concluded that the trade industry in East Java is called inelastic. That is, price changes do not affect demand for export and import volumes. Therefore, the policy of depreciating the Rupiah exchange rate is not the best strategy to be implemented as an export promotion for East Java because only a few sectors benefit.

Big Data Review of the Influence of Agricultural Sector Development on Economic Resilience

2024-03-11T04:11:30+00:00

The agricultural sector in the East Java's GDP structure has been stable at around 11% over the past 5 years, despite disruptions caused by the Covid pandemic. The stable development of the agricultural sector has contributed to the region's increased resilience. This study aims to identify the relationship between factors influencing agricultural development and resilience in East Java and to formulate related development strategies. The method used in this study is Correlation and Regression. Regional resilience is viewed as the output of changes in the rate of GDP growth. Factors in agricultural development are viewed from Agricultural Production, Land Factors using Big data, including LST, NDVI, and NDWI, Internet User Farmers and Farmer Populations. The results of the study indicate that significant influential factors in agricultural development are found in NDVI, NDWI, and Farmer Population. The study shows that for East Java, development strategies through digital farming have not yet been able to increase regional resilience, and conventional agricultural development methods still dominate.

The Effect of Financial Inclusion on Inequality Income in East Java

2024-03-11T04:11:27+00:00

This study analyzes the impact of financial inclusion on the level of income inequality 38 districts/cities in East Java from 2015 to 2021. Using the Generalized Method of Moment (GMM) analysis, its is known that financial inclusion has a negative influence on the level of income inequality in East Java. That is, the more financially inclusive in East Java, the lower the income inequality that occurs. Based on these results, the efforts that have been taken so far by the East Java government to increase financial inclusion must continue to be increased so as to reduce the level of income inequality between districts/cities in the province.