Paper for Issue

ISLAMIC BANKING AND CORPORATE GOVERNANCE

Abstract

The corporate governance in Islamic banking industry has multilayer governance systems, because Islamic banks implement Islamic Law or Shari’ah on top of conventional banks governance regulations. Shari’ah Supervisory Board plays important roles in Islamic baking corporate governance and creates differentiation from conventional banking corporate governance. Moreover, as the biggest Muslim population country, Indonesia government promotes the most comprehensive and advanced version of Islamic banking to attract Islamic business and finance from Middle East countries. Therefore, the purpose of this study is to examine the corporate governance implementation of 11 Islamic banks in Indonesia through a focus research question: ‘Is state-own Islamic banks have better corporate governance implementation compared with national Islamic banks in Indonesia’. Research methodology of this study is literature study from corporate governance statement and published annual report year 2014-2015. This study finds that national Islamic banks in Indonesia have slightly better compliance rate in governance implementation compared with state-own Islamic banks in Indonesia. Furthermore, the final compliance rate of governance implementation in Indonesian Islamic banks is less than 50%. It is an alarm that Indonesian Islamic banks need to improve their good corporate governance practices as soon as possible.

THE PROBLEM OF CASH COURIER UNDER ANTI MONEY LAUNDERING REGIME AND ITS EFFORT TO CUT ECONOMIC CRIME

Abstract

The regulation of cash courier in Law on Money Laundering in Indonesia is explicitly mentioned in the Article 34, 35, and 36, without further explanation on how to implementing it in practice. As it is known, the problem of cash courier is not only dealing with the work of money laundering law, but also customs law. There is still unclear distinction between the implementation of cash courier and cash smuggling, in especially relate with the money laundering implementation. Under the law of customs and the law of money laundering, there is unclear process whether it is proceeds with law of customs or law of money laundering. This paper will assess how can the elaboration between law of anti-money laundering and law of customs work together to solve the handicap problem of the duties of customs and PPATK, and seek solution whether customs information networking will strengthen the way to combat money laundering as a part of an economic crime. This legal research is a qualitative research that based on inductive way of thinking through hermeneutic interpretation in order to get a theory and then conducting analysis process to solve the problem comes dealing with issue of Cash and Barier Negotiable Instruments (BNI) carrier, the loopholes to proceeds with the characteristic of money laundering, and the idea to request the customs to be united to work on hadling problem of money laundering through cross border cash courier. In the end, this paper will assess how the laws can be optimized to handle cash courier problem regarding with money laundering, and regarding with ASEAN Economic Community issue to strengthen the Customs Union Security.

THE INFLUENCE OF ORGANIZATIONAL CHARACTERISTICS, COMPETENCE, AND DISCIPLINE OF LECTURER PERFORMANCE IN STMIK DIPANEGARA MAKASSAR

Abstract

This research aims to analyze the direct and indirect influence of organizational characteristics on the performance of lecturers in STMIK Dipanegara. It also analyze the direct and indirect influence competence on the performance of lecturer in STMIK Dipangera; and (3) analyze the influence of discipline on the performance of lecturers in STMIK Dipanegara. The population of this research is the entire lecturer in the environment of STMIK Dipanegara Makassar. Sampling is done by simple random sampling with consideration of members equal chance of being selected with homogeneity. The number of samples is determined by a Slovin formula the number of samples taken was accomplished with 100 people. By using analytical techniques Structural Equation Modeling (SEM), the results showed that the organizational characteristic positive and significant direct and indirect influence on the performance of lecturers STMIK Dipanegara, Competence have positive, significant, and direct influence on the performance of lecturers STMIK Dipanegara. The discipline also has significant positive influence on the performance professor STMIK Dipanegara.

A CONCEPTUAL FRAMEWORK: THE IMPACT OF SOCIAL TIES ON SMES’ WILLINGNESS TO APPROACH THE FORMAL BANKING SECTOR IN ACEH, INDONESIA

Abstract

Social ties have an important role in Indonesia. It permeates into many sectors including SMEs (Small-Medium Enterprises) and banks. Such SMEs in the country are known to have problems in accessing finance from the formal banking system. In many cases, an obstacle for SMEs to access bank finance is that they do not meet the formal requirements set out by banks such as collateral or audited accounts. The selection process of banks for many SMEs may constitute a defensive strategy to minimise risk associated with SME borrowers. Such bank requirements and selection processes deter qualified SMEs from applying for bank credit due to high transaction costs and fear of rejection – discouraged borrower. Therefore, the objective of this study is to find out the impact of social ties on SMEs willingness to approach the formal banking sector in facing the banking assessment. However, whether the social ties impact on SMEs willingness have not been explored. This study emphasises on building a robust conceptual framework for SMEs and banks in augmenting credit access. Research methodology of this study applies wide scientific literature study which allows perceiving suitable indicators of social ties for SMEs willingness in Indonesia. This study finds that the social ties, by patron-client, - vertical and horizontal - are considered as a feasible influencing indicator of SMEs willingness in accessing the formal banking credits.

IMPLEMENTATION OF E-COMMERCE IN MICROFINANCE COMPANIES

Abstract

This study seeks to inspect the level of E-commerce within Pakistani microfinance companies and to empirically test the factors that affecting the successful implementation of E-commerce. The study also investigates how Pakistani microfinance companies’ benefit from the generous advantages created by such applications and avoid the barriers that hinder E-commerce implementation. Data was gathered using a questionnaire survey. The questionnaire was distributed to a sample of 250 senior employees and employees who carry managerial positions in microfinance companies in Pakistan. Multiple regression analysis (stepwise regression) was used to analyses the data. The study found that only 10 variables out of 12 have positive effect on E-commerce adoption. The most important influence was ease of use and access to the internet. The two unsupported variables involved employee’s skills and training and suppliers’ pressure. In addition, the most important benefit that encourage E-commerce adoption is found to be building trust with customers and the most important barrier that inhibit its adoption is found to be the lack of electronic payment systems.

FACTORS AFFECTING THE PERFORMANCE OF EMPLOYEES IN PT. FAJAR MAKASAR

Abstract

There are several factors influences employee satisfaction in organizations. Some are intrinsic to the employees while others are extrinsic. A study was conducted in PT FAJAR, Makassar to identify multiple factors that influence employee job satisfaction. To explore the reality the study follows quantitative research with the support of multiple regression analysis. Major variables correlated with the employee satisfaction in the research include training, incentives and awards. An employee placed in the organization should have the ownership attitude towards the work as well as towards the organization itself to evaluate whether these correlations effectively work with or not. Reflection of dissatisfaction or satisfaction is closely knit with what an employee observe, experience and further evaluate it. Based on reviews, analysis and discussions the study conclude that the overall training factors, factors of employment, incentive factor and factor rewards has strong influence on employee satisfaction in PT FAJAR, Makassar. The research observations support the Human Resource division of this organization further to look into its implications and fine tune the work and work organization towards better company performance.

EFFECT OF COMPANY SIZE, AND FINANCIAL RATIO ON AUDIT REPORT LAG

Abstract

Financial statements are those statements which include the income statement, balance sheets, statement of retained earnings and the statement of sources and uses of funds. The income statement includes the trading account and the profit & loss account of the business concern and the balance sheet includes the assets and liabilities of the business. Audit report lags are quiet familiar term across the corporate which affect the in time assembly of financial statements. The audit report lag is often called the audit delay in some studies, and is defined as the time difference between the end of the fiscal year to the date of publication of the audit firm or in other words, the time period required to issue audit reports. Timeliness of companies in publishing financial reports to the general public depends on the timeliness of auditors in completing its audit work (audit report lag). There are several factors connected to audit report lag as well as financial statements. The purpose of this paper was to determine the effect of firm size, income, profitability, and debt to equity ratio in its influence simultaneously on audit report lags. The method used is quantitative research with regression analysis. The results of simultaneous test were done using analysis of multiple linear regressions with variables of firm size, income, profitability and debt to equity ratio on audit report lag. This study is expected to put in insight and knowledge both in theory and practice to analyze this finance reports.

DELONE MODEL EMPIRICAL TEST SUCCESS AND MCLEAN REGIONAL MANAGEMENT INFORMATION SYSTEM (SIMDA) IN THE FRAMEWORK OF REGIONAL FINANCIAL TRANSPARENCY (STUDY IN PALOPO CITY)

Abstract

This study aims to examine the factors that affect the successful implementation of information systems (IS) with indicators of user satisfaction and utilization SIMDA by municipalities Palopo using a combination model of success TAM developed by DeLone and McClean (2003), and Seddon and Kiew (1995). This study was to demonstrate empirically that satisfaction SIMDA application utilization is influenced by the perception of usefulness and perceived ease of which are part of the TAM model and influenced by the quality of service both to the treasurer or external parties related to the utilization of government SIMDA. Applications SIMDA as support to Government Regulation No. 56 of 2005 which requires local governments to hold a regional financial information system to support the management and financial reporting, as the Government Regulation No. 60 of 2008 Article 2 paragraph (1).

OPTIMIZATION OF LAND UNDER THE PALM TREE PLANTING WITH CORN (Zea mays)

Abstract

The main goal of coconut farming polyculture is to improve the efficiency of land use, agricultural commodities program, and integrated agricultural development implemented by the government as an effort form agricultural development. The research aims to improve the knowledge, skills and attitudes of farmers in optimizing land under coconut trees for planting corn. A research was carried in the Village Romanglompoa Bontomarannu District of Gowa. Data analysis followed B/C ratio. The research was conducted to compare the growth and production of corn in optimizing land pattern under palm trees with coconut crop production (monoculture to polyculture). The results showed that planting polyculture systems in addition to has provide additional revenue, it also increased oil production and reduce costs of maintenance of coconut. Subsequently the technology is feasible to develop. Optimization of land under coconut trees to plant corn economically benefit in increasing farmers 'income. This research provided new knowledge about land use so as to improve the welfare and farmers' income as a result of land using under coconut trees.

INFLUENCE OF INDIVIDUAL MOTIVATION ON EMPLOYEE PERFORMANCE

Abstract

The development of credit assistance to community agencies poses strong competition in providing services to its customers. Various attempts have been made for improving the efficiency and effectiveness of employee performance and organizational culture by applying leadership role in the company as a guide in doing the job. Based on the formulation of the problem, the objective of the study was to examine and analyze the effect of motivation and leadership style on the performance of employees simultaneously on PT. Pawnshop (Persero) Branch of Makassar. This study used quantitative research approach, with deductive reasoning. The type of research is a descriptive cross sectional study. The observation indicates that motivation and leadership style influence the performance of employees partially in Employee PT. Pawnshop (Persero) Branch Makassar. This means that employee’s performance can be achieved by motivating them at work. This indicates that better motivating culture can improve the performance of employees in carrying out the job. This study is about the effect of leadership styles on employee performance which majorly focused on employees.

REVERSE INNOVATION AND INCLUSIVENESS IN EMERGING ECONOMIES: CASE STUDY

Abstract

The clear shift in the focus from developed economy to emerging economies makes frugal and reverse innovation absolutely relevant. By comparing the American and Indian companies approach to achieve sustainable competitive advantage (Johannessen, Olaisen & Olsen, 2001) by serving the bottom of the pyramid through reverse innovation and inclusive growth. This concept holds its grip on sustainability from a mere fact that innovations caused by the frugal approach in the emerging markets later benefits the developed markets.

BOOK REVIEW: Kumar, D. M. Ismail A.N. & Normala S. (2016). Say No to Precarious working Condition (1stEdn). NFCT Publication, Malaysia. ISBN: 978-967- 14082-0-9, 83pages, 39 MYR

Abstract

This book provides thought - provoking acumen and practical elucidations in relation to plantation management, with specific reference to precarious working conditions existing in oil palm plantations of Malaysia. Prof. Dileep, Prof. Azizi and Ms. Normala have given thrust to the practical approach in students learning and development process by incorporating real social and managerial issues with the due involvement of oil palm plantation management, government and non-governmental organizations. The book incorporate issues of oil palm plantations detailing precarious working conditions, unethical work climate, poor level psychological contract and ergonomics issues leading to workers premature departure from the oil palm plantations. The teaching notes added in the book, support the faculty members facilitate this case study in the class rooms and there be support the students in developing managerial decision-making and problem solving ability. A brief outline of this book through its case titles can be detailed as follows.