International Conference on Entrepreneurship, Management, Accounting and Social Sciences

Malang, 25 October 2018

THE GLOBAL NEW ECONOMY: SOME THOUGHTS

Ameen Talib
Singapore University of Social Sciences

Synopsis:
Technology and the resultant disruptionis changing our lives. Today’s economy is very much skills
and technology based. Competition has become global. As many industries have been disrupted, so
has our lives.
The Small and Medium Enterprises (SMEs) are trying to cope with the changes. Some countries, for
example Singapore, are providing assistance for SMEs to globalise and undergo technology
transformation.
This presentation will touch on some of the issues and challenges the smaller businesses are facing in
the new economy. We will also mention the role business schools can play to help the small
businesses to compete and sustain themselves.

We shall specifically talk about 3 areas:

1. Topic 1: Small-Owner-Managed-Enterprises (SOME)

Small-Owner-Managed-Enterprises (SOME) have their own issues and challenges and provide ample
opportunity for research. SOME tend to lack having a professional management team and are very
much owner-centred. Business Schools can provide assistance in this regard.
Most business schools currently are training graduates to be managers of large companies. Maybe we
should do better in preparing graduates to be entrepreneurs and small business owners.

2. Topic 2: Inclusivity and the Informal Sector

One of the buzzwords of the new economy is inclusivity. However, in a sense, it is also inclusion of
the informal sector into the ‘formal’ sector; where transactions are captured and recorded. This could
result in diminishing on the informal sector. This sector thrived on market inefficiencies and lack of
access/information.
Could this lead to increased income gap? Or is lack of knowledge and skills main driver for income
gap widening? The business school academics could research the impact of the new economy on the
informal sector and how it affects society. Is there a way skills can be ugraded to help reduce the
income gap?

3. Topic 3: Cultural Intelligence

Globalisation means businesses deal in different cultural settings. The significance of cultural
intelligence and sensitivity will be discussed.

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

MBA STUDY TOURS AS TOURISM PRODUCTS

Bradley S. Brennan, Kyung Mi Bae

Inha University, South Korea

Abstract
Utilizing interviews conducted with 16 administrators of MBA programs from four countries, this
paper investigates the current trend of internationalization of Western and Asian MBA programs and
postulates why graduate business schools are increasingly offering international study tours. Also
examined are how relevant stakeholders perceive these trips and how internal and external pressures
are affecting business schools as they evolve to remain solvent. This paper contemplates the MBA
study tour through a tourism lens, which leads one to see these hands-on out of the classroom learning
opportunities as a niche segment of educational travel, belonging to the broader category of youth
tourism. Three significant findings emerged. First, primary motivations for the internationalization of
MBA curriculum, faculty and student bodies. Second, how students, faculty, and administrators view
study trips. Third, specific travel preferences that will assist the tourism industry in attracting these
tours in the future. Also, how graduate business schools are coping with the dramatic increase in
market pressures. Key factors include the immense influx of international students into MBA
programs, the diversification of faculty, hyper-competition among MBA programs, growing
popularity of substitute programs, the increased power of yearly global MBA rankings, student desire
for more international focused programs and the commodification of MBA programs.

Keywords : MBA, Study Tours, Educational Travel, Niche Travel, Internationalization

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

RISK IN TAM MODEL: APPLICATION OF E-GOVERNMENT IN THE STATE OF

KUWAIT

Hasan A Abbas
Kuwait University

Abstract
Studies regarding and towards E-government are still growing in GCC area and not yet fully is been
used to its fully advantages. Our study disclosures antecedents of actual usage among users Kuwait
official site. We used TAM model with external variable (risk) to study the effects on actual usage.
Results proves that all study hypotheses were significant. Furthermore, we found the associations of
riskover perceived ease of use is statistically significant, perceived usefulness, and actual usage.

Keywords: Risk, perceived usefulness, perceived ease of use, TAM, actual usage.

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EFFECTS OF BOARD COMPOSITION AND OWNERSHIP STRUCTURE ON

EARNINGS QUALITY AND AUDIT FEES SURROUNDING THE INTRODUCTION OF
THE CORPORATE GOVERNANCE CODE IN JAPAN

Hiroshi Uemura
Kochi University of Technology, Japan

Abstract
The Tokyo Stock Exchange (TSE) revised some of the rules for listing securities, and a new version
of the Japanese corporate governance code (J-Code) was applied in June 2015. The TSE argued that if
firms appropriately practiced the J-Code, it would enable the development of firms, investors, and the
Japanese economy as a whole because J-Code adoption prompts firms to make autonomous efforts to
increase their valuation and thereby leads to sustainable growth. As a result of this change, many
listed companies have submitted corporate governance reports to the TSE. Using a sample of Japanese
listed firms, this study investigates how board composition (e.g., board independence) has changed
and whether there has been an improvement in firms’ earnings quality since the introduction of the J-
Code. The results indicate that after J-Code adoption, the ratios of outside directors, institutional
shareholders, and foreign shareholders have increased. However, these external pressures have no
effect on the improvement of earnings quality and the decline of control risk assessed by external
auditors. On the other hand, the main bank shareholders and outside directors from main banks affect
the improvement of earnings quality and the decline in control risk.

Keywords: Corporate governance code; Board composition; Earnings management; Audit fees

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EFFECT OF CREDIBILITY, ALTRUISME, AND CSR INFORMATION QUALITY ON

BANK REPUTATION: A STUDY ON INDONESIA BANKS UNDER THE CATEGORY OF
BUKU 3 AND BUKU 4

Lindiawati
STIE Perbanas Surabaya, Airlangga University
Indrianawati Usman, Sri Wahyuni Astuti
Airlangga University

Abstract
Reputation is important since customers are getting smarter in evaluating brands before making
decision to buy. In banking industry, reputation reflects an aspect determining bank risks. In
marketing area, the role of CSR is considered more important due to its altruistic values for society. If
banks are able to manage the way they conduct their CSR activities through their credibility, then they
are willing to expose or inform their CSR activity in a proper way or in a good information quality.
Variables are controlled by the range on initial capital and the business coverage of the banks which
are in Indonesian banking regulation are falling into the categorizations called BUKU or Bank Umum
Kelompok Usaha. All Indoensia banks fall into four categories ranging from BUKU 1, 2, 3 and 4
reflecting the lowest to the highest level successively. The categories used in this research are BUKU
3 and BUKU 4 considering that these categories have already conducted and reported the banks CSR
activities. The respondents are personnel who are in charge of CSR and they are the members of
Corporate Forum for Community Development who respond on the bank CSR report to contribute
the data for the variables of altruism, credibility, and CSR information quality; while the data on
reputation are secondary data from Otoritas Jasa Keuangan which is responsible for controlling the
business of Indonesian banks. All data are processed using Structural Equation Modelling

Keywords: Altruism, credibility, CSR information quality, bank reputation

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

OIL AND PRICE

INDONESIAN ECONOMIC GROWTH

Sultan
UPN "Veteran" Yogyakarta
JJ. Sarungu, AM. Soesilo, Siti Aisyah Tri Rahayu
UNS Surakarta

Abstract
Oil Price and Economic Growth are important indicators to see the performance of a country's
development success. The use of oil as the world's main energy source in general and Indonesia in
particular is driven by industrialization. The more industries in a country, the greater the energy
source it needs. In the same context, economic growth will also encourage increased demand for oil.
This research uses time series data from 1971-2016 period (46 observations), simultaneous equation
model analysis with two stages of least squares method (Two Stage Least Square / 2SLS). The
purpose of this study is to test and create empirical evidence of world oil price relations and economic
growth on domestic oil prices. Furthermore, to test and create empirical evidence of the relationship
of domestic oil prices, agriculture, trade, investment, inflation, interest rates, industry, labor, exchange
rate and balance of payments to economic growth. The method used is descriptive and econometric
approach simultaneous equation model analysis. The expected results from this research will provide
information on the oil price transmission mechanism mechanism and economic growth in Indonesia.
The results show that there is a two-way relationship between oil prices and economic growth.
Economic growth, world oil prices and domestic oil prices in the previous year had a positive effect
on domestic oil prices. The second equation shows that the price of domestic oil, agriculture,
investment, interest rate, industry, exchange rate, balance of payments and economic growth in the
previous year had a positive effect on economic growth. While trade, inflation, and labor negatively
affected economic growth during the period 1971-2016.

Keywords: Oil Price, Economic Growth, Simultaneous Equation

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

OVERCOMING THE NEEDS TO PROVIDE OTHER BENEFITS:

HOW THE MARKOWITZ APPROACH CAN OPTIMIZE THE INVESTMENT
PORTFOLIO OF PENSION FUND IN INDONESIA

Sovi Savira Miftah, Sylviana Maya Damayanti

Bandung Institute of Technology

Abstract
The penetration level of pension fund in Indonesia is low with only 6.26% in 2016, but the current
economic and employment system is growing. Thus, the Government see that they need adjustment in
the benefit that could be given to improve the retiree’s welfare. In 2017, Otoritas Jasa Keuanga (OJK)
release a regulation number 5/POJK.05/2017, encouraging pension fund institution to provide other
benefit besides the existing benefit. This new regulation has been a concern for Pension Fund in
Indonesia since they have to gain more return in order to provide other benefits, especially for
Employer Pension Fund that cannot do anything to get additional funding if the employer stop giving
fund contribution. So, the most possible solution is by focusing on optimizing the investment portfolio.
To find the optimum portfolio, efficient frontier, Capital Allocation Line, and Global Minimum
Variance will be analyzed using Markowitz Optimization Theory and Solver Microsoft Excel add-in
as the tool. Using the historical data from 2013 to 2017, the result showing that the portfolio of the
pension fund in Indonesia still not optimal yet, and they could gain higher return with lower standard
deviation compare to the past performance if they adopt this optimization theory.

Keywords: Portfolio Optimization, Investment Portfolio, Pension Fund.

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

VILLAGE FUNDS AND GOOD GOVERNANCE

Marita, Windyastuti, Lita Yulita Fitriani

UPN “Veteran” Yogyakarta

Abstract
To support the village administration in running their responsibilities for developing villages, Law No.
6 of 2014 has provided a mandate to the national government to allocate village funds. Village funds
carry tremendous potentials to accelerate the growth and development of a village. Aside from this
positive impact, village funds might trigger corruption. To minimize this risk, village administrators
must implement good governance to realize an accountable village fund management. Through the
implementation of good governance, misuses of village funds can be eliminated. In addition, all
stakeholders need to monitor the allocation of the funds to ensure that the funds are well-managed.

Keywords: village funds, risk, corruption, good governance

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

PROFITABILITY AND TARIFF ANALYSIS OF WASTE MANAGEMENT SERVICE: CASE

OF SPECIAL SERVICES DEPARTMENT OF PD KEBERSIHAN KOTA BANDUNG

Sandra Faninda, Yunieta Anny Nainggolan

Institut Teknologi Bandung

Abstract
Economic development basically centered on the process of making community to survive. Thus, any
action taken to increase it should not sacrifice the survival of the community itself. In contrast there
are a lot of people in the name of economic development conducting irresponsible business practice
and environmental degradation coming as a consequence. What seen as a paradox to the sole meaning
of economic development. As there is an increase in awareness of triple bottom line or also popular
with sustainable development, many company in the world (including Indoensia) start to focus on
managing waste resulted from their business process. But, in doing so large capital needed and not all
company is able to do it. As an alternative waste management company become their solution. PD
Kebersihan Kota Bandung tries to grab this opportunities by establishing commercial and industrial
waste transportation service. Later, several concern raise into the surface such as profitability and
relevancy of tariff as currently company does not maintain its cost at service level. This research tries
to address this concern by analyzing cost structure of waste transport service and the result is later use
in analyzing the profitability and tariff of this service, and proposing new tariff. Based on analysis
conducted by using cost accounting method, this service currently facing a loss due to tariff per unit is
lower than cost per unit. The new tariff with price per m3 of Rp 92,695 proposed in order to pull this
service from loss condition.

Keywords: Sustainable Development, Waste Management, Cost, Cost Allocation, Profitability

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

INNOVATION MEASUREMENT METRICS FOR BUSINESS GROWTH

Sapto Benarimo, Yulianto Suharto

Institut Teknologi Bandung

Abstract
Corporate Mortality is very high. When come to business, only paranoids achieve success. From the
article in Harvard Business Review, businesses have one in three chance of being delisted in the next
five years because they are failing to adapt to the growing complexity of their environment. The
decline in natural gas reserves in East Kalimantan effects on the decline of feed gas supply to PT
Badak NGL, therefore currently LNG production is in its half of maximum capacity. If there is no
new significant supply in the future, it is estimated that by 2027, the LNG plant will only operate
12.5% of its capacity, or will stop its operations. With business scheme as LNG Plant operator, PT
Badak NGL has no control over entire LNG business chain and cannot create a new profit. Even
though it has been operating for more than 40 years, PT Badak NGL has no experience to run an
entire business cycle. Therefore it is more important for self-recognizing the capability to create and
run new business processes than directly jump into a new business competitions. In this study, there
are three methods of Innovation Measurement Metrics: Qualitative Analysis (by online survey),
Quantitative Analysis (by data collection and calculation), and Comprehensive Analysis (by
combining Qualitative and Quantitative Analysis). Company is then recommended to realize and
monitor the implementation plan, and conduct regular Company Innovation evaluation using the
method of Innovation Measurement Metrics for Business Growth.

Key words: innovation, quality, business survival, business growth, measurement metric

10
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

FUND RAISING ENGINEERING TO CREATE THE REQUIRED EQUITY PORTION IN

OBTAINING BANK LOAN FOR THE ACQUISITION OF A 75,000 DWT OIL TANKER
VESSEL IN SERVING PT PERTAMINA (PERSERO) RENTAL PROJECT

Sherley Agustine, Uke Marius Siahaan

Bandung Institute of Technology

Abstract
Indonesia market has potential US$90 billion-US$120 billion additional GDP from oil and gas
industry sector for next decade or equal to 1%-4% adding of growth rate. There are still a lot of
opportunities in increase capacity of production as well as decrease dependency on import and further
create employments within supply chain activities as major responsibility of PT Pertamina (Persero)
as state-owned oil and natural gas corporation. This momentum is exactly captured by PT Duta
Marine Perdana (DMP) as one of companies that experienced in offering of oil and gas business
solution, that one of its services is oil-tanker vessel leasing to enable PT Pertamina (Persero) deliver
oil across islands in Indonesia. Based on strategy development, the best decision for PT DMP is to
execute vessel funding strategy with combination of debt and equity to fulfill oil-tanker vessel leasing
contract with PT Pertamina (Persero). Equity funding will be served by China SDHG in form of 1-
year loan for 30% from total of vessel purchasing price while debt funding will be served by Bank X
for the rest of vessel purchasing price until period to do repayment to China SDHG in next one year
and to Bank X for four years later that sourced from sinking fund of monthly leasing payment from
PT Pertamina (Persero). Capital budgeting as the material for assessment on project advisability is
using Pay Back Period (PBP), Net Present Value (NPV), Internal Rate of Return (IRR), and Return on
Equity (ROE) in three scenarios: pessimistic, most likely, and optimistic.

Keywords: oil and gas, oil-tanker vessel, leasing, capital budgeting, fund-raising engineering

11
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

ANALYSIS OF FINANCIAL FACTORS AFFECTING PROFITABILITY OF SHARIA

COMMERCIAL BANKS IN INDONESIA

Dudi Rudianto
Bakrie University Jakarta

Abstract
This study aimed to analyze the financial factors which influence the level of profitability of Sharia
Commercial Banks (SCB) in Indonesia. It is known that these factors are the level of liquidity proxied
by Financing to Deposit Ratio (FDR), operating efficiencies proxied by the Operating Costs and
Operating Incomes (OCOI), credit risk proxied by Non Performing Financing (NPF) and the capital
proxied by Capital Adequacy ratio (CAR) influence on the level of profitability that is proxied by
Return on assest (ROA). The data used in this study are quarterly data on five (5) SCB listed in
Indonesia Stock Exchange period 2010 - 2015. The results showed that overall all the variables
studied had an average value in accordance with the provisions of Bank Indonesia, so that the overall
financial performance is said to be good except efficient operations that have an average value under
the provisions of Bank Indonesia. Simultaneously all the variables studied had a significant impact on
the level of profitability SCB. Partially only operating efficiency have a negative and significant effect
on the level of profitability SCB. Thus, to increase the level of profitability, SCB need to consider
carefully any changes in its financial performance and immediately take anticipatory measures when
there is a change in mind because it will impact the level of profitability. Similarly SCB need to
consider every kind of source of funds raised by considering the amount of the allocation of the cost
of funds and operational costs. Efficiency must be applied to the various lines and all operational
aspects.

Keywords: Level of Liquidity, Operating Efficiency, Credit Risk, Capital, Level of Profitability

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EFFECTIVENESS OF “PLANS (PERSONALITY FIT BUSINESS)” TRAINING ON

CHOOSING BUSINESS CATEGORIES

Farhanah Fitria Mustari, Henndy Ginting

School of Business and Management ITB
Annisa Fitria
Center of Knowledge for Business Competitiveness (Ck4bc) SBM ITB

Abstract
Many entrepreneur students run their businesses which are not congruent with their personality and it
will affect the effectiveness of business performance. According to Holland (1985), congruency
between personality and occupation can create personal satisfaction, increase productivity, and
successful career. The research aims to assess the effectiveness of “PLANS (Personality fit Business)”
Training to increase congruency between chosen business category and personality using Holland
theory among entrepreneurship student candidates batch 2018 (N = 85). All of them got the "PLANS"
Training which was divided into four sessions: (1) Self Exploration, (2) Business Insights, (3)
Business Fields Exploration, and (4) Exploration of Business Potential and Planning. The research
was conducted quasi-experimental using pre-test and post-test without a control group. The
measurements were based on personality SDS (Self Directed Search) Holland test and newly designed
business category questionnaire based on the Standard Classification of Business Field in Indonesia
2015. Data were analyzed using Paired t-test with significance level α = 0.05. The result showed a
significant difference of congruency between personality and chosen business category before and
after the training (t = 4.544, p = 0.00 (< 0.05)), (SD) pre-test = 34.71(29.857) and (SD) post-test =
51.71 (32.383). It means “PLANS” Training is effective in increasing congruency between
personality and chosen business category among entrepreneurship college student candidates.
Therefore, this research suggests the training to be integrated into entrepreneurship and other business
school's curriculum such as the School of Business and Management ITB as a guideline before
starting their study.

Keywords: Training Effectiveness, Holland Theory, Business Category, Entrepreneurship

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

COMPETITIVENESS OF THE AIR CONDITIONING INDUSTRY IN INDONESIA

(CASE STUDY OF PT GMT)

Junianto M, Yudo Anggoro

Institut Teknologi Bandung

Abstract
Indonesia presents promising potential for AC business. Various aspects of the country have driven
the attractiveness of the industry, among others, tropical climate, population growth, and the agenda
of government in pushing for economic growth. However, the weak capabilities of local industry have
caused the business to depend much on imports. Certainly, the local business in the AC industry
would face strong competition, especially from foreign brand which has the technological advantage.
This final project focused on how the local AC manufacturer could compete in the Indonesia market
which dominated by the import products. In outline, the study discussed about the AC business
environment in Indonesia, how a local company build their strategy for competitive advantage among
the rivalry, and the business model suitable to that strategy.
The research analyses internal and external environment of the business to understand the factors for
strategy formulation. For primary data, qualitative approach conducted through interviews with
credible experts from the company and industry experts, while the supporting information are 2
collected from various resources (literature, website, news, etc.). The strategy recommendation as the
result of this research include vertical integration, diversification, and differentiation to build the
competitive advantage in the AC business in Indonesia.

Keywords: AC industry, business model, differentiation, diversification, vertical integration

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

ASSESSMENT OF KNOWLEDGE MANAGEMENT IMPLEMENTATION

AT OPERATION DIRECTORATE PT. JASA MARGA (PERSERO) TBK
A CASE STUDY

Ferdian Farouq Fahlevi

Institut Teknologi Bandung

Abstract
The availability of proper infrastructure connected directly with economic growth. However condition
of infrastructure in Indonesia has becoming hindering factor toward investment in the area which
actually has potential economy that can be developed. Therefore, connectivity between some areas
becoming very urgent need that has to be fulfilled. Construction of toll road can be a problem solution,
because toll road service makes transportation become more efficient and reliable. Those condition
will contribute in faster goods and people movement that promote equal economy development
among the regions.
As a state owned company of Indonesian government, PT. Jasa Marga has to focus on providing more
and better road infrastructure that benefit most to people of Indonesia. However, after changing its
business became open public company, PT. Jasa Marga forced by shareholder to be a high performing
and profitable company. Realizing the new situation, PT. Jasa Marga continuously strengthening its
business structure by rolling out many program to improve quality and performance. One of those
initiative is implementation of knowledge management. Objective of knowledge management is to re-
use company knowledge to solve business issues and create innovation that bring values to the
company.
Research that was focused on knowledge management implementation has several objectives as
following; to find out the establishment of knowledge management elements, to assess knowledge
management level, and to provide business solution that can be used in order to make successful and
sustainable knowledge management implementation. Research was carried out by using knowledge
management framework created by APO (Asian Productivity Organization). The framework consists
of practical guidelines how a company can design and conduct maturity assessment of knowledge
management in the company.
Research results shows that the company has already had some knowledge management element that
at good level of implementation, however some other element are still need to be improved. Proposed
business solution were grouped base on implementation time duration and based on action
responsibility owners from organization. Besides those proposed business solution, implementation of
knowledge management must be able to synergize with the existing business program and relations
among internal organization sub division to support knowledge flow in the organization.

Keywords: Knowledge management, KM implementation, Business solution.

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

SELECTION OF A JACK UP DRILLING RIG USING ANALYTICAL HIERARCHY

PROCESS (AHP) METHOD: A CASE STUDY OF
PT. SAKA ENERGI INDONESIA

Tommy, Yos Sunitiyoso

Institut Teknologi Bandung

Abstract
PT. Saka Energi Indonesia (“SAKA”) as an upstream oil and gas company, would require drilling rigs
to support its drilling program in the effort of fulfilling oil and gas production target. The suitable type
of drilling rig for SAKA blocks is the jack up drilling rig type because the blocks operated by SAKA
are offshore blocks with water depth range 0 – 90 meter. A jack up drilling rig could be used to drill
for water depth range 5 – 150 meter.
Selecting a drilling jack up rig for exploration or exploitation program is a crucial decision since the
rig will cost half of the drilling cost. And the rig itself will determine other type of services such as
cementing services, tubular handling services, etc. Finding a good performance jack up drilling rig
with an economical rate is a challenging work in Indonesia, especially when the procurement process
of goods and services in upstream oil and gas is regulated by Government of Republic of Indonesia
represented by SKK MIGAS in the form of Working Guideline named PTK-007 including its last
applicable revisions.
The PTK-selection process is normally consisted of 3 steps of evaluation: administrative, technical
and commercial in a sequential process. In administrative and technical, normally a set of minimum
requirement must be fulfilled by the bidders. Once they passed the minimum requirement, the final
selection will be based on commercial. The best commercial in terms of lowest cost will be selected
disregard their technical capability is better or worse than the other bidders. There’s no recognition on
the higher specification or extra benefit provided by bidders.
This final project is focusing on designing a selection model based on Analytical Hierarchy Process
(AHP) to select a drilling jack up rig. This model could eliminate the disadvantage of the PTK-007
model which focusing more on commercial only. AHP model starts with determining the criteria and
sub-criteria needed by key decision makers for selecting the jack up drilling rig. Then key decision
makers made pair-wise comparison for all the criteria and its sub-criteria to get the level of priority or
importance. In this research, there are four (4) criteria: Administrative, Technical, HSE (Health,
Safety and Environment) and Commercial, meanwhile administrative criteria has two (2) sub-criteria,
technical criteria has seven (7) sub-criteria, HSE has four (4) sub criteria and commercial criteria has
two (2) sub-criteria. So there are total fifteen (15) sub-criteria. Total respondents involved in the pair-
wise comparison were six (6) persons with different position and background. Total alternatives
available for the selection were three (3) jack up drilling rigs. These rigs represented the rigs
participated earlier in SAKA tender.
The research has resulted priority of each criteria as follow: Administrative (0.085), Technical (0.371),
HSE (0.344) and Commercial (0.200). Three (3) sub-criteria whose priority are the highest, are Rates
(0.162), Management Commitment on HSE (0.134) and HSE Performance (0.090). Testing on the
three (3) alternatives are giving result as follow: Rig A (0.416), Rig B (0.235) and Rig C (0.349). Rig
A has been nominated as the best candidate.
This AHP method in sourcing jack up drilling rig could be implemented in Gross Split PSC
(Production Sharing Contract) owned by SAKA i.e. Pekawai PSC and West Yamdena PSC. In Gross
Split PSC, contractor could do the procurement process independently and PTK-007 is no longer
required to be followed. It is recommended to have three (3) phases in implementing this AHP
method: Preparation phase, Collecting Data phase and Evaluation phase. Estimation of the process
would take up twelve (12) weeks overall.

Keywords: jack up drilling rig, Analytical Hierarchy Process (AHP), criteria, sub-criteria, alternatives,
priority.

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

PROBLEMATICS OF TECHNICAL IMPLEMENTATION UNIT

BECOMESPUBLIC SERVICE AGENCY (BLU)

Suraji, M. Nizarul Alim, Prasetyono

Trunojoyo Madura University

Abstract
The purpose of this study is to analyze the readiness of the Hydrodynamic Technology Unit
(BTH) becomes a Public Service Agency (BLU). The research method used is a qualitative
comparative method with a case study approach. Research data collection techniques with interviews,
observations and document review. Respondents in this study were Head of Administration Sub-
Section, Head of Technical Facilities and Technology merit Services, Human and Resources
Coordinator, Treasurer and State Property (BMN) Officer. The results showed that BTH is a non tax
revenue (PNBP) work unit that provides hydrodynamic technology services to the public. BTH has
industrial-scale testing facilities so that the performance of PNBP revenues can continue to be
improved. BTH has annual PNBP income of around Rp. 5 billion. The results related to the findings
of the 3 requirements to become Public Service Agency (BLU), BTH according to the substantive and
technical requirements meet the requirements to be proposed as Public Service Agency (BLU), but the
administrative requirements have not fulfilled it to be proposed as Public Service Agency (BLU)
because non tax revenue (PNBP) income is less than the required minimum of Rp. 15 billion per year.

Keywords: Theory of Enterprise, Stakeholders, BTH, Public Service Agency (BLU)

17
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

IMPLEMENTATION OF PRODUCT MARKETING ACTIVITIES CULTURE BASED

TOURISM

Nawangsih
STIE Widya Gama Lumajang

Abstract
Culture-based tourism marketing is increase to developing, the uniqueness of traditional values and
culture is an attraction of cultural-based tourism marketing activities. The purpose of this study was to
determine the implementation of marketing activities of tourism products carried out and to find out
the uniqueness and appeal of culture. The research method uses qualitative descriptive. Data
collection techniques through interviews, observation and documentation. The research location is at
Mandara Giri Semeru Agung Temple, on Jl. Serma Dohir, Sumberagung, Senduro District, Lumajang
Regency. Data collection method uses purposive sampling with research informants are people who
are competent in their respective fields. Analysis of the data used consists of four stages, including:
data collection, data reduction, data presentation and conclusion drawing. The results showed that: the
implementation of tourism product marketing activities was viewed based on 4 (four) basic aspects of
tourism product offerings, that is: attraction / attractiveness, accessibility / transportation, amenities /
facilities and ancillary / institutional, which had been implemented in several elements still need to be
improved again, one of them is amenities where there are still some supporting facilities available that
are still not maximal, for example currency exchange facilities, and other supporting facilities related
to activities carried out by tourists at a tourist destination. Whereas the uniqueness and cultural appeal
of the Mandara Giri Semeru Agung Temple is realized in the form of traditional arts, traditional
ceremonies, various interesting cultural attractions and local community wisdom.

Keywords: tourism, tourism products, culture

18
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

STOCK VALUATION OF PT. TEMPO SCAN PACIFIC TBK.

Berni Rahman Iskandar, Sylviana Maya Damayanti

Institut Teknologi Bandung

Abstract
Global prescription drug sales are to grow at an annual compound rate of 6.5 percent in the next five
years with worldwide sales of drugs are expected to be USD 1.06 trillion in 2022. The main driver of
growth in the pharmaceutical industry is expected to be in emerging markets. PT Tempo Scan Pacific
Tbk, one of the largest pharmaceutical companies in Indonesia, is experiencing a decline in stock
price during mid-April 2017 until mid-April 2018. Although many Indonesian pharmaceutical
companies are also suffered from depreciating Indonesia Rupiah exchange rate to the US Dollar, only
PT. Tempo Scan Pacific Tbk. stock price that is steadily dropping down. To evaluate the future
prospect of the company, stock valuation is performed to figure the intrinsic value of the company and
provide investment recommendation for investors whether to buy or sell the company's stock.

Keywords: Stock Valuation, Intrinsic Value, Absolute Valuation, Relative Valuation, Sensitivity
Analysis

19
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

EMPLOYEE RETENTION STRATEGY FOR HR CONSULTING FIRM

A CASE STUDY IN ABC INDONESIA

Maria Stephanie Widjaja, Yuni Ros Bangun

Institut Teknologi Bandung

Abstract
ABC Indonesia is a part of ABC Global, which the main business is to provide professional services
in various areas of expertise. HR consulting is one of its service offerings. Aligned with ABC global
strategy, one of ABC Indonesia targets is to have leading growth and competitive earnings sufficient
to attract and retain world-class talent. ABC Indonesia HR Consulting Division has been successful in
growing the business and becoming the market leader in HR consulting industry in Indonesia.
Lately, in the midst of highly competitive industry and inevitable talent war, ABC Indonesia HR
Consulting Division has been starting to lose some projects to its competitors and lost half of their
employees within a few months, including those who held the key position and expertise. As people is
the main asset in consulting business, ABC Indonesia HR Consulting Division need to retain its
employees in order to ensure business continuity and sustainability.
A series of interview to current and former employees was conducted in order to identify employee’s
motivation to stay or leave based on combined employee engagement model. It is found that the work,
working environment and collaboration are the top three reasons for employee to stay. Meanwhile,
rewards & recognitions, benefits and relationship with supervisor/management are the top three
reasons for employee to leave. Based on those results, a suitable employee retention strategy and its
implementation plan is being proposed.

20
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

BUILDING BRAND AWARENESS FOR O-RANGER’s NEW SERVICES

Alvin Natanael, Herry Hudrasyah

Institute Technology of Bandung

Abstract
Business in courier and logistic services is the one business that have good prospect in this year. O-
ranger is a team that is formed by Pos Indonesia to conduct a pick-up service which collect the parcel
by come over to customers. The issue in this research is, the declining of mail and package sales and
the challenge to implement the new services (O-Ranger). Analyzing the business situation through
consumer analysis using importance-performance analysis (IPA) aims to evaluate and identify the
major strengths and weaknesses of the new services PT Pos Indonesia through O-Ranger. This
research identified a list of 17 indicators from the literature reviews that was categorized in marketing
mix and each indicator was rated using a 7-point Likert scale. Responses were obtained from 125
questionnaires. The result from IPA Matrix shows that 4 items fall into the Quadrant I (Keep up the
good work), 6 items fall into the Quadrant II (Concentrate here), 4 items fall into the Quadrant 3 (Low
priority), 3 items fall into the Quadrant IV (Possible overkill). The findings help PT. Pos Indonesia to
determine an appropriate the business solution through the marketing strategy for O-Ranger.

Keywords: O-Ranger, courier and delivery services, important performance analysis, marketing mix.

21
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE DESCRIPTION OF PSYCHOLOGICAL WELL-BEING IN JODIPAN MALANG

COMMUNITY AFTER REVITALIZATION INTO 'JODIPAN TOURISM VILLAGE'

Norberta Fauko Firdiani, Seta Nur Furqan

Universitas Negeri Malang

Abstract
One of the goals of individual life is to achieve psychological well-being (Psychological Well-Being).
Psychological Well-Being is a condition in which individuals have a positive attitude towards
themselves and others, able to control behavior and make decisions towards themselves, able to create
and manage a suitable environment, have a purpose in life, and have the desire to continue to develop
self-potential. One aspect of psychological well-being is a person's ability to create and manage an
environment that suits their needs.This study aims to determine the description of psychological well-
being of the Jodipan Village community in Malang after the revitalization of 'Kampung Jodipan'.The
research uses qualitative method and phenomenological approachment, with deep interview. This
deep interview use to get informations excessively about psychological well-being of the Jodipan
Village community in Malang after the revitalization of 'Kampung Jodipan'. The result indicates that
revitalization in Jodipan Village have a positive impact towards community well-being. In addition,
the revitalization caused Jodipan Village has been dubbed as ‘Jodipan Tourism Village’ that makes
positive impact on individual welfare, especially in the economic field.

Keywords: Psychological Well-Being, Revitalization, Jodipan, Malang

22
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

BUSINESS STRATEGY TO GAIN COMPETITIVE ADVANTAGE

IN LEADING MULTI FINANCE INDUSTRY IN INDONESIA
(CASE ANALYSIS OF PT ASTRA MULTI FINANCE)

Aditya Septiana, Yudo Anggoro

Institut Teknologi Bandung

Abstract
Indonesia is among the top 5 most populated countries in the World. However, Indonesia is still
behind of any developing countries in terms of financial inclusion. Multi Finance Companies present
as alternative to increased financial inclusion in Indonesia. Finance companies have grown
dynamically over the past few years. The financing value increased from IDR208 trillion in 2013 to
IDR374 trillion in 2017. APPI recorded the highest growth in 2017 from non-automotive sector,
which electronic sales is one of them. PT Astra Multi Finance (AMF) is one of the finance companies
that focus on electronic financing. Through the SPEKTRA brand, electronic financing milestone in
PT AMF can be said as a good progress. Strict competition in finance industry, and the presence of a
substitute products such as fintech and e-commerce caused market share of SPEKTRA decreased over
the last 3 years. This research focused on proposed business strategies for SPEKTRA. First,
researcher needs to know the challenges faced by SPEKTRA. PESTEL & Porter 5 Forces analysis are
used to gain opportunities and threats. While from the internal analysis, researcher find out the
SPEKTRA’s strengths and weaknesses. After SWOT is obtained, researcher formulating new
business strategy. Hope this strategy have a sustain competitive advantage for PT Astra Multi Finance,
especially SPEKTRA brand.

Keywords: Business strategy, competitive advantage, financial inclusion, financing, multi finance

23
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

MARKETING STRATEGY FOR FOODCOURT BUSINESS

CASE STUDY OF FOODSTEP PARAHYANGAN RESIDENCES BANDUNG

Beni Adi Santoso, Mustika Sufiati Purwanegara

Bandung Institute of Technology

Abstract
Foods, nowadays, is also part of bigger human needs, which is social life. With the increasing trends
of foods and innovations, the competition in the industry become very tough there research is needed
to win the marketshare. FoodStep as the case study is a foodcourt business held under subsidiary of
Agung Podomoro Group located in apartment sites near UNPAR colleges. FoodStep needs to increase
its revenue and decrease tenants turnover rate. Analysis is done by qualitative research and supported
by quantitative method. Internal and External analysis is done which results in SWOT Analysis.
External analuysis inlcudes consumer insight collected by survey to understand potential consumer
attitude and existing consumer satisfaction. FoodStep is still lacks in many of its marketing mix which
needs improvement. The proposed solution is to improve STP and Marketing Mix, using TOWS
Matrix. The solutions are mostly allocated for Promotion Mix to capture target market. The action
plan is arranged by considering UNPAR academic calendar which is used by the prioritized target
market, students.

Keywords: consumer behavior in foodcourt, foodcourt business, Foodstep, marketing strategy,

Parahyangan Residences

24
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

STRATEGIC ALLIANCE FOR PT INDONESIA ASAHANALUMUNIUM, PT ANEKA

TAMBANG TBK, AND ALUMUNIUM CORPORATION OF CHINA LIMITED IN
CONSTRUCTING ALUMINA SMELTER
(CASE STUDY: SMELTER GRADE ALUMINA REFINERY MEMPAWAH PROJECT)

Torang Arthur Nabiel, Uke Marius Siahaan

Institut Teknologi Bandung

Abstract
Aluminum business is a prospective in the future due to increasing demand of global industry for the
commodity. Aluminum industry is also supported by its vast bauxite in Indonesia. Through Act No.4
of 2009 and Government Regulation No. 23 of 2010 on the Execution of Mineral and Coal Mining,
Government encourages bauxite mining companies in Indonesia to build their own smelter for the
purpose of refining bauxite to create added value before selling in the domestic and overseas market.
Aluminum production requires a huge investment, including technological aspect and electrical
support. PT. Aneka Tambang Tbk. as a domestic bauxite producer to plan construction of a smelter
grade alumina plant. This plant has a capacity of 1,000,000 tons of alumina annually by processing
2,499,999 tons of bauxite ore. The plan with a project value of US$750 million will produce alumina
as aluminum raw material for PT. INALUM. There are several objectives that will be accomplished in
this project which are to create favorable business scheme between PT INALUM, ANTAM, and
CHALCO in order to develop Smelter Grade Alumina Refinery (SGAR) Mempawah and to calculate
the profitability for PT INALUM, ANTAM, and CHALCO through this project. The alternative
business scheme used are Build-Operate-Own-Transfer (BOOT) scheme and leasing scheme.
Sensitivity analysis also used in this paper as bauxite and aluminum price as commodity sure change
through times. The favorable business scheme resulted by compare the two business scheme by each
NPV, ROE, IRR and payback period.

Keywords: bauxite, aluminum, smelter grade alumina, financial analysis, BOOT, Lease, sensitivity
analysis.

25
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EFFECT OF FINANCIAL LITERACY, PARENTAL INCOME AND SELF CONTROL

ON CONSUMPTIVE BEHAVIOR OF NTT STUDENTS IN SURABAYA

Martina Delfiana Rosniati Halek Bata, Rr. Iramani

STIE Perbanas Surabaya

Abstract
Consumptive behavior has become a very important issue at this time. The high and low consumptive
behavior can be associated with an understanding of financial, self control, and income. This study
aims to examine the effect of Financial Literacy, Parental Income, and Self Control on Consumptive
Behavior of NTT students in Surabaya. The sample consists of 200 respondents, in Surabaya in which
they were taken by means of Accidental Sampling and Purposive Sampling. The characteristic of
respondents such as NTT students in Surabaya, majoring in economics, and have lived in Surabaya
for more than six months. Using Partial Least Square (Smart PLS 3), this research found that no
dirrect effect on Consumptive Behavior by Financial Literacy and Parental Income. Self Control is
negatively related to Consumptive Behavior and Self Control mediates the effect of Financial Literacy
on Consumptive Behavior.

Key words: Consumptive Behavior, Financial Liteacy, Self Control, Parental Income.

26
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

INFLUENCE OF QUALITY, EXPERIENCE, VALUE AND SATISFACTION ON

CUSTOMER LOYALTY IN CAFÉ SHOP IN SURABAYA

Yosef Aristo Besinleon, Yudi Sutarso

STIE Perbanas Surabaya

Abstract
This study aims to examine the effect of quality, experience, value and satisfaction on customer
loyalty in a café shop in Surabaya. This study proposes a quality hypothesis, and experience will
influence value. Value will affect satisfaction. and satisfaction, will affect customer loyalty at the café
shop. This study took samples of customers who were visitors or buyers at Starbucks and Excleso in
Surabaya with purposive sampling technique. There are 350 respondents in the second café shop,
where the data analysis used is Structural Equation Model with Partial Least Square approach. The
most prominent finding in this study is that product quality, service quality, value and satisfaction
have a positive influence on customer loyalty while product quality does not have a positive effect on
functional value and experience does not have a positive effect on functional value and symbolic
value.

Keywords: product quality, experience, functional velue, symbolic velue, customer satisfaction and
coustomer loyalty.

27
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

INDONESIAN BOARD GAMER PREFERENCE AND THEIR KNOWLEDGE AND

AWARENESS OF INDONESIAN PUBLISHED BOARD GAME

Mohammad Ridwan Gunawan Wibisono

Institut Teknologi Bandung

Abstract
Board game has been in the market even longer than video games, this gives them advantage of being
more authentic than video games. Their history made them harder to classify their genre, what types
of board game is popular? How do you know that board game is popular because of how it is played?
The board gamer perception about the product is different from one another and their drive to buy the
product is surely different too from one another. Indonesian market is being invaded by foreign board
game product and Indonesian published board game which has been growing for the past few years
has a hard time to find its way to the market. This research is conducted to understand what the
customer really perceived about existing board game in the market, what makes them prefer some
board game over the other, what drives them into buying and owning a product. This research also
brings light to what do the customer in the fields know about Indonesian board game product, who
publishes them, what they feel about it, and how can Indonesian board game prosper in the
convoluted market of foreign board game products. The research conducted in the form of qualitative
research using Forum Group Discussion (FGD) and in-depth interview to a group of board gamer in
Jakarta and Bandung, a board game developer and distributor, and a family segmented board gamer.

Keywords: Indonesian published board game, Board gamer knowledge, Board gamer preference,
Indonesian board gamer brand awareness

28
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

OVERHAULING THE CULINARY DIGITAL PLATFORM BUSINESS MODEL, LESSON

LEARNED FROM EATEVER CULINARY BUSINESS

Aprillina Sanjaya, Deddy Priatmodjo Koesrindartoto

Institut Teknologi Bandung

Abstract
Food business becomes one of the sectors in e-commerce that experienced growth. Eatever is a start-
up in the culinary field that offers online catering by using the platform to connects the curated
homechef with the customer. In running its business, Eatever always suffered losses since it was
established in July 2017 to January 2018. Evaluation the business model that has been applied
because the business required a business model that led to the effort to make money and achieve a
vision. Evaluation the business model through internal analysis and external analysis to know the root
cause of the problem. The internal analysis of the business is to identify value propositions, value
architecture, value network, and value finance as critical elements for evaluating platform business
models. Meanwhile, external analysis consists of competitor analysis, market analysis, and PESTLE
analysis. Based on the analysis, it is known there are problems in the business model that is applied,
and there is a discrepancy between the business model and external factors that cause Eatever suffered
losses. There needs to be a change in every aspect of the business model applied by Eatever consist of
value proposition, value architecture, value network, and value finance in order to become a profitable
business.

Keywords: Business Model, Value Proposition, Value Architecture, Value Network, Value Finance,
Competitor Analysis, Market Analysis, PESTLE Analysis

29
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

DEFECT PRODUCT AND WASTE REDUCTION FOR ELHIJAB USING SIX SIGMA
METHOD

Zahra Qalbi Imani Antadiredja, Nur Budi Mulyono

Institut Teknologi Bandung

Abstract
Fashion industry growth in Indonesia is emerging, including Muslim fashion. Because Muslim
fashion demand increases each time, it pushes muslim apparel manufacturer to deliver a high-quality
product to the customers. One of the muslim fashion manufacturers in Indonesia is Elhijab. In 2017,
the actual productions of Elhijab were under the target, and it tends to decrease each month. Thus it
makes their actual revenue always under the plan, and it makes them lose their revenue. This situation
is affected by the high number of defect product and waste in Elhijab.This research deals with the
application of Six Sigma methodology (DMAIC steps) to the production process in Elhijab to reduce
the number of defect product and waste. This research also proposes solutions for the improvement
through making better scheduling, building a supplier relationship management with key suppliers,
and starting in-house production for the seasonal product while outsourcing the sewing process for
basic product. The implications of the proposed solutions for the company are job order, and the raw
material request will be accepted by fabrics and garments manufacturers, product delivery to
customers will be on-time, the production process will be more controllable, solve the problem
together with suppliers, enhance supplier’s performance, and increase customer satisfaction.

Keywords: defect product, in-house production, outsourcing, scheduling, Six Sigma, supplier
relationship management.

30
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EFFECT OF FIRM SIZE ON CORPORATE FINANCIAL PERFORMANCE: THE

ROLE OF SHARI’AH CORPORATE SOCIAL RESPONSIBILITY AS INTERVENING
VARIABLE
(EMPIRICAL EVIDENCE FROM JAKARTA ISLAMIC INDEX)

Ririn Irmadariyani1, Isti Fadah, Diana Sulianti K. Tobing, Siti Maria Wardayati
University of Jember

Abstract
Purpose – The purpose of this study is to investigate the role of shari’ah corporate social
responsibility on the relationship between firm size and corporate financial performance.
Design/methodology/approach – This study uses explanatory research method. This study uses a
sample of 78 firm-year observations from 13 firms listed on the Jakarta Islamic Index from 2011 to
2016. Partial Least Square (PLS) has been used to analyze the data.
Findings– This study finds that there is no effect of firm size on corporate financial performance both
directly and indirectly through shari’ah corporate social responsibility. Furthermore, there is no
evidence that shari’ah corporate social responsibility can increase corporate financial performance.
However, the empirical result show that firm size has positive impact on shari’ah corporate social
responsibility.
Research limitions/implications – For future research, thatshari’ah corporate social responsibility as
measured by Islamic Social Reporting (ISR) should be applied to companies that are purely Islamic.
The application of shari’ah corporate social responsibility is expected to giveshari’ah value added that
is corporate financial performance and corporate non-financial performance. For future research is
expected to investigate the effect shari’ah corporate social responsibility on corporate non-financial
performance.
Originality–The concept of shari’ah corporate social responsibility is developed by researchers from
the concepts that exist in the shari’ah enterprise theory, stakeholder theory, and business ethics.

Keywords: Firm Size, Shari’ah Corporate Social Responsibility, and Corporate Financial
Performance

31
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

TWISTING THE END FATE OF TREASURY SHARES:

HOW THE OPTIMAL CAPITAL STRUCTURE CAN IMPROVE THE CORPORATE
ACTION OF TELKOM INDONESIA

Muhammad Afif, Deddy Priatmodjo Koesrindartoto

Institut Teknologi Bandung

Abstract
According to POJK No.30/POJK.04/2017 that regulate Repurchase Shares By Public Company,
Telkom Indonesia has an obligation to divert 1,737,799,800 of the remaining of treasury shares until
the due date in November 2018, that have been held for almost 6 years. The remaining of the treasury
shares might divert through reselling in or outside the stock exchange and/or cancel by means of
capital reduction. The objective is to give the best suggestions to Telkom Indonesia to end the treasury
shares program by also achieving the optimal capital structure that could maximize the company’s
value. This research begins by identifying and examining the internal and external factors of the
business. Afterward, this research will examine the simulation of the company’s capital structure
proportion, including the scenario of the remaining treasury shares, through every possibility in the
capital structure condition, in order to assess which kind of optimal capital structure that would
maximize the company’s value. After conducting the optimal capital structure simulation, Telkom
Indonesia is in under levered situation. Therefore, the company should cancel the remaining of the
company’s treasury shares. The result suggests to Telkom Indonesia to use more debt for good
investment project such as merger and acquisition or any capital expenditure to support the
aggressiveness of infrastructure development.

Keywords: corporate action; optimal capital structure; telecommunication sector, trade-off theory;
treasury shares.

32
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EFFECT OF SHIFTING IN SHANGHAI STOCK EXCHANGE COMPOSITE, NIKKEI

225, DOW JONES, S & P BSE SANSEX, STRAITS TIMES IN INDONESIA COMPOSITE
INDEXON THE INDONESIA STOCK EXCHANGE DURING
JANUARY 2012 - DECEMBER 2017

Mia Laksmiwati, Ivo Rolanda

Univesitas Budi Luhur

Abstract
One that is often echoed by various parties is that the ICI is an economic leading indicator (first
economic indicator). The economic indicators that are widely discussed by various parties are
inflation, interest rate, unemployment number, stock price index, money supply, large trade index,
farmer exchange rate index, export, import and economic growth and channeled credit. The ICI is the
main indicator used by traders or investors who invest in the stock market. With the increasing
number of investors investing in Indonesia, it will help accelerate the development process in all vital
sectors of the country, including public facilities and education, which in turn will increase
Indonesia's economic growth rate. It is undeniable that investment is the driving force of economic
growth and greatly influences the high and low economic growth of a country. This study aims to
determine the effect of the Shanghai Composite, Nikkei 225, Dow Jones, S & P Bse Sansex, Straits
Times and their effects on Indonesia Composite Index. In this study, we used multiple linear
regression analysis method using Statistical Product for Social Science (SPSS) version 22 program.
The results showed no influence of the Shanghai Composite Index on the ICI. But, there is some
influences of the Nikkei 225 Index, Dow Jones Index, Sansex S & P BSE Index and Straits Times
Index on (ICI) on the Indonesia Stock Exchange (IDX) during January 2012 - December 2017.

Keywords: Shanghai Composite Index, Nikkei 225 Index, Dow Jones Index, S & P BSE Sansex
Index, Straits Times Index and ICI (ICI)

33
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

INTEREST RATE RISK OF BANKING SECTOR: THE EFFECT OF MATURITY GAP

MANAGEMENT ON NET INTEREST INCOME IN INDONESIA

Andewi Rokhmawati
University of Riau

Abstract
Although there is an interest rate fluctuation due to global uncertainty, there has been an increase in
investment growth in Indonesia. The investment increase leads to the rise of the amount of credit
distributed by Indonesian banks. Nevertheless, the increase is not followed by the increase in banks’
net interest margin (NIM). This study aims to examine the effect of maturity gap management of
Indonesian banking firms as the reflection of interest risk of banks on Net Interest Income (NII). The
study employs multiple regression analysis with panel data covering 57 banks that provide the
complete data of maturity gap from the year 2013 to 2017. Maturity gap management is measured
with interest rate sensitivity (IRS) and measured with maturity gap. The maturity gap is calculated as
the difference between Risk Sensitivity Assets (RSA) and Risk Sensitivity Liabilities (RSL). Maturity
gap management is measured with a dummy variable. The positive gap is scored with one and zero
for otherwise. The study includes Loan to Deposit Ratio, net Non-Performing Loans. It also groups
the banks based on the ownership (state banks, private domestic banks, and foreigners) and based on
the years of their financial reports. The results of the study show that maturity gap has a negative
effect on NII and banks with positive gaps have higher NII than banks with negative gaps. These
results imply that when there is a decrease in interest rate, the positive wider gap will lower NII.

Key words: Interest Rate Risk, Maturity Gap, Net Interest Income, Indonesian Banking Sector

34
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE INFLUENCE OF PROFITABILITY, LEVERAGE, FIRM SIZE, OUTSIDER

OWNERSHIP, AUDITOR’S REPUTATION AND FINANCIAL RISK ON THE TIMELINESS
OF FINANCIAL REPORTING SUBMISSIONS

Enni Savitri, Andreas, Raja Adri Satriawan Surya

Universitas Riau

Abstract
Companies need actual information to run their business. Actual information is able toprovide
accurate information relevant to current business conditions. Information is said to be relevant if the
information is capable of making a difference in a decision. Information that is most important for the
company is information in the form of financial reports. The financial report is the final stage of an
accounting process. The financial report has an important role in measuring and evaluating the
performance of a company.
The purpose of this study is to examine the effects of profitability, leverage, firm size, outsider
ownership,the reputation of the public accounting firm and financial risk on the timeliness of financial
report submissions. This study used a sample of all trade, services and investment companies listed in
Indonesia Stock Exchange in 2014-2016. A total of 78 companies were examined. Multiple linear
regression was used to test the hypotheses. Results show that profitability, outsider ownership, the
reputation of the public accounting firm and financial risk have significant effects on the timeliness of
financial report submissions, but leverage and firm size do not have effect.

Keywords: Profitability, Leverage, Firm Size, Outsider Ownership, Reputation of the Audit Firm,
Financial Distress, Timeliness of Financial Reporting.

35
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

INITIAL PUBLIC OFFERING ANALYSIS OF PT PHAPROS TBK

Nadhila Fajrina, Yunieta Anny Nainggolan

Institut Teknologi Bandung

Abstract
Indonesia as the fourth most populous country in the world, certainly has a high need for health.
Therefore to improve the health level of the Indonesian population, starting in 2014 the government
has started a national health insurance program (JKN). Currently the application of JKN continues to
be continued so that if this program has covered all Indonesian people, this health insurance will be
the largest health insurance in the world. Procurement of pharmaceutical or drug products is a critical
point of concern to the government. The pharmaceutical industry is required to be able to meet
national drug needs. In addition, since 2017 the government also continues to encourage SOE’s
subsidiaries to be able to conduct initial public offerings (IPOs). Seeing the great potential for the
advancement of the health sector and the opportunities, especially for the pharmaceutical industry,
Phapros as a subsidiary of the state-owned PT. Rajawali Nusantara Indonesia (RNI) plans to conduct
an IPO by releasing 48% of the portfolio shares to the public and is expected to obtain funds of Rp500
billion from this IPO. The funds obtained will be used as organic and inorganic growth for the
company. This study aims to determine the intrinsic value of PT Phapros and possible IPO price
ranges for investors. In this study, the determination of intrinsic value uses absolute valuation with the
Discounted Cash Flow method. Relative valuation with the P/E ratio method is also used as a
supporting analysis for absolute valuation. Based on the calculations, Phapros intrinsic value with
95% degree of confidence level will fall or estimated in the price range of Rp1,653 as the lowest price
and Rp 3,002 as the highest price. The most likely intrinsic value will fall in Rp2,641 based on
absolute valuation and supported by relative valuation.

Keywords: Discounted Cash Flow, Initial Public Offering, Intrinsic Value, Pharmaceutical Industry,
Valuation

36
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

INFLUENCE OF INVESTMENT DECISION, FUNDING DECISION, DIVIDEND POLICY,

RETURN ON EQUITY AND EARNING PER SHARE AGAINST PRICE TO BOOK VALUE
(EMPIRICAL STUDY OF COMPANIES INCORPORATED IN THE JAKARTA ISLAMIC
INDEX LISTED ON THE INDONESIA STOCK EXCHANGE PERIOD 2016-2017)

Astrid Dita Meirina Hakim, Slamet Mudjijah

Universitas Budi Luhur

Abstract
The aim of a company is to maximize shareholder value, by increasing the rate of return on the
investment carried out. Company value can be measured from the amount of Price to Book Value
(PBV). The high value of price to book value is the desire of the owners of the company, because the
high price to book value indicates the prosperity and welfare of shareholders is also high. Some
factors that influence price to book value include investment decisions, funding decisions, dividend
policies, debt to equity ratio (DER), return on equity (ROE), and earnings per share (EPS). This study
aims to determine the effect of debt to equity ratio, return on equity, sales growth, and earnings per
share on price to book value in companies whose shares are incorporated in the Jakarta Islamic Index
on the Indonesia Stock Exchange for the period 2012-2016. The population in this study amounted to
30 while the sample numbered 26. The method used was panel data regression using E-views
program.. The results show that funding decisions, return on equity, and earnings per share affect
price to book value. While investment decisions and dividend policy do not affect the price to book
value of companies whose shares are incorporated in the Jakarta Islamic Index on the Indonesia Stock
Exchange for the 2016-2017 period.

Keywords: Influence Investment Decisions, Financing Decisions, Dividend Policy, return on equity,
earnings per share and price to book to value.

37
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE INFLUENCE OF LIQUIDITY AND ASSET STRUCTURE TO PROFITABILITY

MEDIATED BY CAPITAL STRUCTURE.

Slamet Mudjijah, Astrid Dita Meirina Hakim

Universitas Budi Luhur

Abstract
This study aims to analyze the effect of liquidity and asset structure on corporate profitability with the
role of capital structure as a mediator. The population in this study are tourism sub-sectors, hotels and
restaurant listed on the Indonesia stock Exchange. The sampling technique used purposive sampling
technique, the criteria determind were touristm sub-sector companies, hotel, and restaurant that
publish complete financial statements during the period 2012-2016. Financial report data is obtained
from the Indonesia stock Excange website. Data analysis method is multiple linear regression analysis.
Hypothesis testing using t-test, F-test, Sobel test. The results show that liquidity and asset structure
directly affect Profitability. Capital structure cannot mediate the effect of liquidty and asset structure
on Profitability.

Keyword: Liquidity,Asset structure, Capital structure, Profitability.

38
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE ROLE OF SOCIAL AND ENVIRONMENTAL PERFORMANCE IN MEDIATING THE

EFFECT OF GENDER ON FINANCIAL PERFORMANCE (A CASE STUDY ON PUBLIC
COMPANIES IN INDONESIA)

Agnes Apriani Diaz, Muazaroh

STIE Perbanas

Abstract
This research was built from gender theory stating that femininity and masculinity have different
characteristics in decision making so that it will have an impact on achieving certain outcome. The
attempt to equalize gender in various positions in the company continues to be carried out to achieve
the balance of gender positions believed to have a positive impact on the company. This research
aimed to prove whether gender will have effected on the company's performance regarding the
financial, social, and environmental aspects. Moreover, this research will also prove whether social
and environmental performance can be mediators to improve financial performance of the company.
This research used samples from Public companies that participating in Indonesian PROPER Award
period 2016. The variables in the research were Gender (female composition), Social Performance
(CSR disclosure score), Environmental Performance (PROPER ranking), and Financial Performance
(ROE) that were obtained from the company's annual report published on the website of Indonesia
Stock Exchange (IDX), website of each company, or from Indonesian Ministry of Environment. Data
were analyzed using regression analysis and path analysis. The results of the research prove that
Gender had a significant direct effect on financial performance, but did not have a significant effect
through the mediation of social and environmental performance. However, this research also
succeeded in proving that Environmental Performance could significantly affect the Financial
Performance. This indicates that gender equality efforts by improving the composition of women in
companies are things that companies in Indonesia need to pay attention to.

Keywords: Gender, social performance, environmental performance, financial performance.

39
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

FACTORS AFFECTING FINANCIAL PERFORMANCE OF VILLAGE OWNED

ENTERPRISES
(A CASE STUDY IN THE DISTRICT OF ROCK SUMENEP)

Syahril, Akhmad Faiz Alif Ghufron, Mohammad Herli

University of Wiraraja

ABSTRACT
Village-owned enterprises (BUMDes) is a container for the villagers to manage the potential of the
village so the village can become a self-sufficient village that does not necessarily rely on the town
APB. The existence of village-owned enterprises could help the town regarding the industrial city. In
realizing the necessary independent village-owned financial performance was the great village. The
object of this study conducted in the town located in the District of Rock. The research aimed to
Know the constraints experienced by the village-owned enterprises and knowing that affect the
financial performance of village-owned enterprises in the District of Batuan District Research
Sumenep. A method used is qualitative with the phenomenological approach. The author will collect
data by observation, interview, and documentation.
The results of the study are contained in the District BUMDes rocks have obstacles, such as capital,
the lack of information about local government, as well as the lack of honor given to employees
BUMDes. Also, there are also constraints factors affecting financial performance BUMDes namely
capital, responsibility, public education, beliefs, as well as the type of business. The findings of this
study all aspects that need to work together in building BUMDes around the village of Sumenep.
Previous research on the financial performance BUMDes not associate with factors BUMDes but with
the financial statements.

Keywords: Factors, Performance, Finance, Agency, Business, Belonging, village.

40
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

KIFAYAH ACCOUNTING: FINANCIAL MANAGEMENT OF THE DEATH OF

TRADITION MADURA INDONESIA

Syahril, Ibn Fajar, Mohammad Herli

University of Wiraraja

Abstract
This study aims to determine the model of financial management deaths Madura tradition. The study
is based on the reality that is happening in the community about the implementation of the culture that
made the heir to the family members who died. This study uses a type of qualitative interpretative
research, which in this study more emphasis on the in-depth understanding of a problem that occurred.
Based on these results, the financial management of Madura tradition deaths could be found in the
accounting equation. Where not all of the accounts contained in the accounting equation is used as a
whole and is reported as generally financial statements. In this case, the source of funds in carrying
out the death tradition comes from private money, donations from family, money from Moslem,
borrow money or goods, and money or goods from the Alphabet. The outcome was the incidence of
both short-term debt and long-term. While expenditure in the form of costs in taking care of the
bodies, the price for tahlilan (petto'arean), pa'polo, nyatos, nyataon, nyaebu, mangaji, ngin-tangin,
nyaleninmayyid, and ajege (kep-sekep).

Keywords: Accounting, Kifayah, Tradition, Management, Finance, and Madura.

41
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

TAXATION REFORM WITH EMPLOYEE PERFORMANCE AND THE IMPACT OF TAX

RECEIPT
(STUDY OF THE SPECIAL DIRECTORATE GENERAL OF JAKARTA, INDONESIA TAX
OFFICE REGIONAL OFFICE)

Sugeng Riyadi, Prita Andini, Pradipta Imandityo

Universitas Budi Luhur

Abstract
This study aims to analyze the effect of tax reform (human resources, remuneration, and
organizational structure) in improving employee performance and its impact on tax revenue. Object of
research is Regional Office of the Directorate General of Taxation, Jakarta. Number of research
sample is 211 respondent. In this study the authors took 211 respondents from the Regional Office of
the Directorate General of Taxation Jakarta using a saturated sampling. Author using Structural
Equation Model with Partial Least Square approach assisted with SmartPLS analysis software version
2.0. Based on the results of the study can be concluded as follows (1) fostering human resources,
especially employees whose tenure is under 10 years to qualified employees, (2) maintaining a
remuneration policy towards a fair and efficient manner and in accordance with the ability of the
government, (3) the organizational structure is always updated in accordance with the progress of
science and technology to be responsive to changes, (4) employee performance is always monitored to
obtain effective performance in accordance with the goals or targets set, (5) the results of this study
are able to confirm the theory of motivation, and organizational theory, (6) this research still contains
an scientific truth for that for the next researcher to add other variables or the number of respondents
such as variable job satisfaction, motivation, internal system of defense, and leadership.

Keyword: Tax Reform, Tax Revenue, Employee Performances.

42
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EFFECT OF LOVE OF MONEY AND TYPES OF REWARDS ON THE ESCALATION

OF COMMITMENTS: EXPERIMENTAL STUDIES

Isna Putri Rahmawati, Y Anni Aryani, Nasyiah Hasanah Purnomowati

Universitas Sebelas Maret

Abstract
Escalation of commitment is a tendency to make decisions to survive or increase its commitment to
failed actions. This can be motivated by factors that are intrinsic or extrinsic. This study aims to
examine empirically the effect of love of money (intrinsic) and type of reward (extrinsic) on the
escalation of commitment. The types of rewards divided into financial and non-financial awards. The
experimental method is used with a 2x2 design between subjects and business students as project
manager surrogates. Participants are undergraduate students in accounting program at Sebelas Maret
University who have taken Management Accounting and or Financial Management subject. The
results show that someone with higher love of money tend to do escalate commitment. In addition,
managers will tend to escalate commitments when they get financial rewards.

Keywords: love of money, escalation of commitment, reward and experiment.

43
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

NON-DISCRETIONARY FACTORS AND LOAN LOSS PROVISIONS: COMPARISON

BETWEEN CONVENTIONAL BANKS AND ISLAMIC BANKS

Atik Isniawati, Rahmawati, Ari Kuncara Widagdo, Agung Nur Probohudono

Universitas Sebelas Maret

Abstract
Loan loss provisions (LLP) is an estimate of the number of future losses on loans granted by a
bank as part of its credit risk management function. LLP is one of the accrual items in a bank's
financial statements which is one type of cost that has the largest proportion in the income statement.
The determination of the amount of LLP by the bank is strongly influenced by non-discretionary
elements which are factors outside the bank's environment and cannot be controlled by the manager.
Some previous literature states that the bank's response to non-discretionary factors differs between
conventional banks and Islamic banks. Therefore, this paper tries to determine the moderating
variables of bank institutional characteristics as an attempt to close the research gap from previous
literature that is relevant to the topic of this study. This variable is expected to explain the difference
in the influence of non-discretionary factors on the determination of the amount of bank’s LLP. The
framework offered in this research concept is in accordance with the economic conditions and
regulations that apply in Indonesia. The strength of the influence of non-discretionary components on
the determination of LLP is very important. Regulators are very interested in the factors that influence
LLP to establish regulations that can minimize adverse impacts on management's behavior in
responding to conditions outside the bank on the determination of LLP that might harm customers.
This research framework requires empirical testing in the future to clarify the significance of the
influence of moderation variables used.

Keywords: Macro Economic Conditions, Credit Risk, Loan Loss Provisions (LLP), Non-
discretionary Allowances.

44
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

TAX AMNESTY AND CAPITAL MARKET REACTIONS

Trisninik Ratih Wulandari, Juliati

Universitas Sebelas Maret Surakarta

Abstract
The tax amnesty policy launched by the government will make the capital market respond to that
information. This is because the stock market is sensitive to events around it. The purpose of this
study is to test and analyze investor reactions to tax amnesty policy events at the time of
announcement, end of period I, II and III.

The research was conducted on companies listing the Indonesia Stock Exchange (IDX). The research
sample was 555 companies, with purposive sampling method. This study is an event study, the time
used in the study is 11 days in vulnerable time when the announcement of tax amnesty policy and at
the end of period I, period II and period III tax amnesty in the capital market, which is transformed
into numbers -5, -4, -3, -2, -1, 0, 1, 2, 3, 4, 5. The observation period is 11 days, namely 5 days before
the announcement, before the end of the tax amnesty I, II and III (t-5) periods, 1 the day of the
announcement, the end of the tax amnesty I, II and III (event date, t = 0) period and 5 days after the
announcement date, the end of the tax amnesty I, II and III period (t + 5). The object of the research is
abnormal stock returns on companies listed on the IDX. The research analysis technique is paired
sample t-test and wilcoxon signed rank test.

The results showed that there were differences in the average abnormal return before and after the
announcement period, the first and third periods of tax amnesty implementation, but there was no
difference in the average abnormal return before and after the second period of tax amnesty.

Keywords: Tax Amnesty, Market Reactions, Companies Listing on the IDX.

45
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

ANALYSIS OF REGIONAL FINANCIAL PERFORMANCE, UNEMPLOYMENT,

POVERTY AND HUMAN DEVELOPMENT INDEX AFTER TRANSITION OF PBB AND
BPHTB TO DISTRICTS

Juliati, Trisninik Ratih Wulandari, Hanung Triatmoko

Sebelas Maret University

Abstract
This study examined whether regional financial performance (the regional independence ratio, the
degree of fiscal decentralization ratio, the regular capability index and the harmony ratio) has an
effect on unemployment, poverty and human development index after the transition of the PBB and
BPHTB. Data used in this research is financial report of regional government of regency / city.
Sample of this study used 224 financial report (2013-2014) of regional government and represented
western, central and eastern of Indonesia . The method to analyze was regression. The results of this
study were that the regional financial performance have negative effect on unemployment and poverty
except harmony ratio and have positive effect on human development index except harmony ratio.

Keywords: PBB, BPHTB, regional financial performance, unemployment, poverty and human
development index

46
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

MOTIVES FOR FIXED ASSET REVALUATIONS: EMPIRICAL STUDY IN INDONESIA

STOCK EXCHANGE

Sri Hastuti ,
Universitas Pembangunan Nasional “Veteran” Yogyakarta, Universitas Sebelas Maret
Bambang Sutopo, Ari Kuncara Widagdo, and Doddy Setiawan
Universitas Sebelas Maret

Abstract
This study examinesthe motives of fixed asset revaluations. Along with fair value measurement
methods, firms have the opportunity to revalue the assets. Gain or losses from the revaluation of fixed
assets will be reported in other comprehensive income. This study uses a sample of Indonesian listed
firms for the period 2012-2017. Using logistic regression analysis, the results of this study show that
the firm size, tax period, and market to book ratio have influence on the company’s decision of asset
revaluation.Other findings showthat the motives of fixed asset revaluations depend on leverage. These
results suggest that temporary tax cut policy in Indonesia is effective to influence the decision of fixed
asset revaluations.

Keywords: asset revaluations, firm size, leverage, tax period, market to book ratio

47
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

MODELING AND FORECASTING CREDIT GROWTH USING ARIMA

Kurnia Insyiani Putri, Lutfi Lutfi

STIE Perbanas

Abstract
The Indonesia Financial Service Authority, namely OJK, projects that the credit growth disbursed by
Indonesian banks increase to 9% up to 11% in 2018, which is triggered by the infrastructure
development plan. As a bank which initial objective is to provide financing for the implementation of
regional development efforts, and in accordance with the vision and mission of RDB) Regional
Champion that is refined into RDB Transformation Program, Regional Development Bank (RDB)
should have the ability as an Agent of Regional Champion by actively contribute to the regional
development through credits. Based on this condition, RDB credit growth forecasting was performed
using ARIMA which was compared to the situation analysis to minimize prediction errors caused by
both global and domestic environment changes. The research results showed that in 2018, BPD credit
growth tended to fluctuate with an increasing trend compared to the same period in the previous year.

Keywords: Regional Development Bank (RDB), ARIMA, Credit Growth, Situational Analysis.

48
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

MODERATION EFFECT OF STRATEGIC INFORMATION SYSTEM DEVELOPMENT ON

THE RELATIONSHIP SOCIAL SUSTAINABILITY IN THE SUPPLY CHAIN AND FIRM
PERFORMANCE.

Titik Kusmantini
Universitas Pembangunan Nasional “Veteran” Yogyakarta, Universitas Sebelas Maret
Ahmad Ikhwan Setiawan
Universitas Sebelas Maret
Hendri Gusaptono, Hadi Oetomo
Universitas Pembangunan Nasional “Veteran” Yogyakarta, Universitas Sebelas Maret

Abstract
This paper aims to explore the determinants of social sustainability in the supply chain (SSSC) of the
company and examine the role of strategic information systems development as moderating variables
in the relationship of SSSC and firm performance. The research setting used a sample of small and
medium sized companies of “Batik Tulis” in Bantul Regency, using a sample of 106 SMEs of natural
color batik. Testing the hypothesis in this study using hierarchical regression analysis techniques. The
results of the study proved that determinant variables such as environmental uncertainty, regulation of
environmentally friendly proved to have a significant effect on SSSC, while interdependency
determinant variables consisting of three dimensions namely interdependency task, interdependency
goal and interdependency reward identified that the three dimensions had no significant effect on
SSSC. While the influence of SSSC on firm performance proved to have a significant effect, also the
ability of the strategic information system development variable to prove significant was able to
strengthen SSSC's influence on firm performance. The results of this study have a theoretical
contribution to the development of institutional theory and dynamic capability theory because the
research is able to produce business modeling that essential role of strategic information systems
development as a strategic effort of SMEs in order to increase the influence of SSSC capability. More
specifically, the results of the study provide empirical evidence about the social concept of
sustainability in supply chain (SSSC) in order to develop a new theory of Sustainability Supply Chain
Management.

Keyword: Social Sustainability in Supply Chain (SSSC); Determinants of SSSC; Firm Performance;
strategic information system; Hierarychal Moderation Regression.

49
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EFFECT OF WEBSITE QUALITYAND SOCIAL MEDIA TOWARD BRAND IMAGE

AND ONLINE PURCHASE DECISION MAKING

Ayunda Eka Widiyanti, Tatik Suryani

STIE Perbanas Surabaya

Abstract
The development of online marketing in Indonesia has increased significantly along with the growth
of internet users. There are two marketing tools which common There are two marketing promotion
tools commonly used by small and medium enterprises, namely website and social media. The
objectives of this research are to examine: (1) the influence of website quality towards brand
awareness and brand image, (2) the effect of social media on brand awareness and brand image, (3)
the effect of brand awareness on E-WOM, and (4) the effect of EWOM on brand image, (5) the
positive influence of E-WOM on online purchase decision making, and (6) the effect of brand image
on online purchase decision making. The researcher involved 260 respondents online products which
selected byrandom sampling technique. By using Structural Equation Modeling (SEM) the results
found that: (1) website quality has positive effect on brand awareness and brand image, and (2) there
was a significant influence of social media on brand awareness. The results also showed that (3) there
was strong significant influence brand awareness towards E-WOM. Beside it the influence of brand
image on E-WOM was positive significant, effect of E-WOM online purchasing decision was
moderate significantly and (6) the influence of brand image on line purchase decisions is weak. The
implication of the research, it is very important for small and medium enterprises improve their
quality of website and media social.

Keyword: website quality, social media, brand image, brand awareness, e-wom, purchasing decisions

50
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

EFFECT OF GOOD CORPORATE GOVERNANCE, RISK, EFFICIENCY,

PROFITABILITY, AND BANK SIZE ON STOCK RETURN AT PUBLIC BANKS IN
INDONESIA

Manda Floressa Septiani Kore, Rr. Iramani

STIE Perbanas Surabaya

Abstract
This study aims to examine the effect of Good Corporate Governance (GCG), Risk, Efficient,
Profitability, and Size to the Stock Returns at the banking company in the Indonesia Stock Exchange
period 2011-2016. Data were collected using nonparticipantobservation. The study population was the
whole banking companies listed in Indonesia Stock Exchange period 2011-2016. By using purposive
sampling obtained a sample of 16 banking companies. The analysis technique used in this research is
multiple linear regression analysis. Hypothesis testing results show that the eficienct have negative
and significant effect on the stocks return and size have positive and significant on the stock returns.
GCG, risk, and profitability have no significant effect on stock returns. Advice can be given, future
studies are expected to add another independent variable that can measure the soundness of banks will
also be an effect on stock returns.

Keywords: Good Corporate Governance (GCG), Risk, Efficient, Profitability, and Size to the Stock
Returns

51
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

BUILDING A TRUST IN INDONESIA’S E-COMMERCE THROUGH INFORMATION

PRIVACY PROTECTION : ACTOR-FACTOR PROBLEM’S IDENTIFICATION

Jumiati, Haula Rosdiana, Retno Kusumastuti

University of Indonesia

Abstract
The increasing of data breach in Indonesia’s electronic transaction, the low level of Indonesia’s cyber
maturity and e-commerce’s consumer concerns in information privacy make its protection requires
involvement from many actors. On the other side, national regulations on the protection of personal
data have not been adequately implemented in Indonesia, different interests and resource’s allocation
between actors. The protection of consumer information privacy in Indonesia’s e-commerce is one of
prerequisites for a safe and trusted ecosystem for Indonesia’s digital economy. This paper aims to
identify actor-factor problem to build a trust in Indonesia’s e-commerce through consumer’s
information privacy protection. Through literature study, document review and online media/site
analysis is discovered that information privacy protection in Indonesia’s e-commerce can minimized
uncertainties and risks by implementing data security standards, the establishment of watchdog
institutions, and actors engagement in the governance of information privacy protection. The
information privacy protection has become mutual symbiosis in Indonesia’s e-commerce that each
actor should aware and contribute on the implementation of cybersecurity
so this will encourage the security of electronic’s transactions, the increasing of consumers’s trust and
Indonesia’s revenues in digital economy.

Keywords: E-commerce; Information privacy protection; Trust

52
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

DEVELOPING OPTIMAL PORTFOLIO FOR BANKING PENSION FUNDS IN INDONESIA

Sheba Lydia Wardhana, Yunieta Anny Nainggolan

Institut Teknologi Bandung

Abstract
Every employee deserves to have guarantee to fulfill their need after the retirement. The establishment
of pension fund is crucial to manage because this program promises retirement benefits. In general,
the investment type of pension fund is a long-term investment, because it takes at least ten years
(Undang-Undang No. 11 Tahun 1969). As a leading state-owned financial institution in Indonesia,
Bank Rakyat Indonesia (BRI) Pension Fund needs to increase return from their stocks investment to
fulfill the benefit for their participants. ROI of Stock investment on BRI Pension Fund from 2013
until 2017 showed a poor performance compare with IHSG, so there is a chance to increase the
performance of stock investment in BRI Pension Fund with the implementation of Markowitz Method.
The author runs performance analysis on BRI Pension Fund and five other pensions funds with large
capital, i.e. Bank Indonesia, Bank Mandiri, Bank Central Asia, Bank Negara Indonesia, and Bank
Tabungan Negara Pension Fund. For the stock performance of these six pension funds, the return is
sort from the highest average return to the lowest average returns: return on 2014 at 25.87%; 2017 at
18.62%; 2016 at 13.76%, 2013 at -7.74, and 2015 at -15.36%. The banking pension fund with highest
average return is the Bank Negara Indonesia Pension Fund at 14.43% and the pension fund with the
highest standard deviation is Bank Tabungan Negara Pension Fund at 22.99%. From the analysis of
banking pension fund performance for the past five years, the return given by implementation of
Markowitz Method using Solver tools can beat the actual return in 2013 and 2015, which is those
years the market is in low condition. So, BRI Pension Fund must adjust their weighting of stocks
based on the optimal portfolio developed using Markowitz Method in 2018 to get optimal return.

Keywords: optimal portfolio, stocks, banking pension fund, Markowitz Method, Indonesia Stocks
Market

53
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

PROPOSED MARKETING STRATEGY TO INCREASE BRAND AWARENESS OF

LOCAL WATCH BRAND: CASE STUDY OF GROOTWATCH

Anissa Karina Fuadi, Sonny Rustiadi

Institut Teknologi Bandung

Abstract
The creative economy is a concept that emerges as a discourse to focus the creativity as one of the
drivers to run contemporary economic activity. Grootwatch is one of the creative economy businesses
started in Bandung, Indonesia. Established in 2014, Grootwatch is a small business that offers
innovative watch products made from cow’s bones and bull’s horn. However the current target market
of Grootwatch (male and female of millennial generation) is not aware about the product. Also, the
sales from the beginning of 2016 until 2017 were decreased. In order to deal with the problem,
Grootwatch needed to validate their target market as well as the product/market fit. A suitable
marketing strategy is also needed to reach that market. Internal and external analyses are done in the
research. The external analysis consists of PESTEL analysis, Porter’s Five Forces, and Competitor
Analysis. The internal analysis consists of Marketing Mix, Segmenting, Targeting, and Positioning
(STP) analysis, Value Propositon Canvas, and Business Model Canvas. The research resulted in
crystallization of target market of Grootwatch by adding occupation attributes based on millennial
generation in Indonesia, which are employees and entrepreneurs. The Value Proposition Canvas
validation shows that there is an incompatibility between the target market and the product offered by
Grootwatch. To resolve the problem, a new marketing mix strategy is proposed. The author also
proposed to use AISAS model implementation and brand activation strategy to help increase brand
awareness of Grootwatch.

Keywords: value proposition, positioning, marketing strategy

54
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

BUILDING CORPORATE REPUTATION THROUGH CORPORATE SOCIAL

RESPONSIBILITY (CSR), CORPORATE CULTURE AND VALUE CREATION
IN THE INDUSTRY OF SHARIA BANKING IN INDONESIA

Chandra Zaky Maulana, Yuyus Suryana S, Dwi Kartini, Erie Febrian

Universitas Padjadjaran Bandung

Abstract
The aim of this research is to find influence between CSR and corporate culture on the corporate
reputation through value creation as intervening variable in the sharia banking industry (Sharia
Commercial Banks and Sharia Subsidiary Unit) in Indonesia. There is a paradox phenomenon
showing that amidst huge market share potential as a Muslim majority country, the market share of
sharia banking is still very insignificant compared to the conventional banking.

This research used explanatory survey method. The approach in the modeling and the technical
solution as the tool analysis is Structural Equation Modelling (SEM). Datas were processed using
Lisrel 8.5.

Primary datas were collected via distribution of questionaires through email, considering distance,
time and funding limitation. Unit of analysis are Head Offices and Branch Offices, since this research
took Branch Manager and Operational Manager as unit of observation. Observation were made using
cross section/one shot time horizon. Respondents were set based on judgment sampling, drawed from
population of 1.242, whereas200 respondents proportionally took from each province.

The results showed that CSR disclosure and Corporate Culture significantly influenced the reputation
of sharia banking in Indonesia through Value Creation as the intervening variable.. This was proved
by the correlation score of 2.73 (t-count is higher than 1.96) for CSR and 3.01 for Corporate Culture,
as for Corporate Culture proved to show the highest correlation with Corporate Reputation. Therefore,
the research drawed a conclusion that, CSR disclosure and Corporate Culture positively and
significantly influenced the reputation of sharia banking industry in Indonesia and Value Creation
variable mediates the correlation..

Keywords: CSR, corporate culture, value creation, corporate reputation, sharia banking industry

55
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE CONTRIBUTION OF CORPORATE SOCIAL RESPONSIBILITY FOR INCREASING

CORPORATE IMAGE AND WORD OF MOUTH IN INDONESIA ISLAMIC BANK

Tatik Suryani, Suhartono, Lindiawati

STIE Perbanas Surabaya

Abstract
Recently Corporate Social Responsibility (CSR) is highlighted as an important factor to make figure
in many industries, including in banking industry. Interestingly, there are not many research in Islamic
banking industry focus on that area. The purpose of this research is to analyze whether CSR has a
significant relationship toward Corporate Image (CI) and Word of Mouth (WOM) in Islamic bank.
Furthermore, this research also to examine the effect of CI toward WOM in Islamic banking industry.
The data is collected using questionnaire method involving 238 bank’s customer who get chosen for
CSR program from bank. The data is analyzed using Partial Least Square. The result from this
research showed that CSR has a positive significance effect towards CI and CI has positive has
positive significant effect towards Word of Mouth. In the end, this research revealed that banking
industry should focus more on implementing effective CSR because it shows positive correlation
toward creating positive CI and WOM which could persuade customer decision toward choosing their
personal Bank.

Keywords: CSR, Corporate Image, WOM, Islamic Bank

56
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE NUMBER OF BOARD MEETINGS, THE BOARD MEETING ATTENDANCE LEVEL

AND ITS IMPACT ON THE PERFORMANCE: A STUDY OF LISTED MANUFACTURE
CORPORATES IN INDONESIA

Yaumil Fauziyyah, Sholatia Dalimunthe, IGK Agung Ulupui, Agung Buchdadi

State University of Jakarta

Abstract
We investigate the impact of The Number of Board Meetings (NBM), The Board Meetings
Attendance Level (BMAL), Firm Size (FZ) as the variables used on corporate performance for a
sample of 135 listed corporations from 2013 to 2016 in Indonesia. The analysis technique employed
in this study is stage least square (LS) panel data regression using return on asset (ROA) as the
proxies of Manufacturing companies performance. The data used are listed Manufacture corporates in
Indonesia. The findings reveal that The Number of Board Meetings (NBM) and The Board Meeting
Attendance Level (BMAL) has a positive impact on Return On Asset (ROA). This results provide
empirical support for agency theory, which suggests that corporate boards that meet more frequently
have increased capacity to effectively advise, monitor and discipline management, and thereby
improving corporate financial performance.

Keywords: Indonesia, Board Meeetings (BM), Firm Size (FZ), Manufacturing, Return on Assets
(ROA)

57
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

EXECUTIVE COMPENSATION AND ITS IMPACT ON THE PERFORMANCE : A STUDY

OF LISTED MANUFACTURE COMPANIES IN INDONESIA

Bagas Gusti Pamungkas, Sholatia Dalimunthe, IGK Agung Ulupui, Agung Buchdadi
State University of Jakarta

Abstract
This study determines the effect of executive compensation on the performance of manufacture
companies in Indonesia. The variables used are executive compensation (EC), firm size (FZ), and the
return on asset (ROA) of the company. The analysis technique employed in this study is least square
(LS) panel data regression using return on asset (ROA), as the proxies of bank performance. The data
used are listed manufacture company in Indonesia Capital Market between 2013 and 2016. The
findings reveal that the executive compensation has a positive impact on return on asset of
manufacture company. Regarding these results the stakeholders could maintain the role of executive
compensation to make the firm better performance.

58
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

DO INDIVIDUAL REGULATORY FOCUS AND CODE OF ETHICS AFFECT THE

ETHICAL JUDGMENT REGARDING BUDGETARY SLACK?

Jurica Lucyanda
Universitas Bakrie Jakarta
Supriyadi, Mahfud Sholihin, Slamet Sugiri
Universitas Gadjah Mada

Abstract
This paper proposes to understand the role of individual regulatory focus and code of ethics in ethical
judgment regarding budgetary slack within the organization. Previous researches found that budgetary
slack had traditionally been viewed from the perspectives of organizational and behavioural issues.
This paper tries to view budgetary slack from the perspective of ethical issues. Using regulatory focus
theory (Higgins, 1997, 1998) from psychology and social norm activation model (Bicchieri, 2006),
this paper tries to develop propositions about the role of individual and organizational factors in
ethical judgment regarding the budgetary slack for the purpose of experimental research design in the
future. The regulatory focus theory based on individual factors and social norms activation model –
organizational factor – are important because these have never been used and adopted in the previous
research about budgetary slack related to ethical judgments.

Keywords: budgetary slack, code of ethics, ethical judgment, regulatory focus theory, social norm
activation

59
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

SOFT INFORMATION AS A COMPLEMENT TO HARD INFORMATION: TRADE OFF

BETWEEN IMPRESSION MANAGEMENT AND INCREMENTAL INFORMATION

Julianto Agung Saputro

YKPN School of Business Yogyakarta
Jogiyanto Hartono, Zaki Baridwan, Sumiyana
Universitas Gadjah Mada

Abstract
An annual report is an important source of information for investors to make decisions. The annual
report presents information in the form of soft (qualitative forms) and hard information (quantitative
forms). The amount of soft information disclosed in the annual report from year to year is getting
higher. The impact of the increasing amount of soft information disclosed is that the information
presented becomes increasingly pronounced and thorough. However, on the contrary, the increasing
amount of soft information can also confuse the readers and make the information disclosed unclear
and biased. The two motivations that underlie managers disclose soft information are the motivation
to provide additional (incremental) information or motivation for impression management, i.e.
managers try to conceal their unfavorable performances by giving positive impressions on the
information disclosed. This paper discusses why managers decide to choose one of these two
motivational choices and how investors react to both motivations.

Keywords: Hard information, soft information, qualitative information, quantitative information,

motivation management, impression management, incremental information.

60
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

HOW TO BRING NEGATIVE CSR INTO LIGHT?

Poppy Dian Indira Kusuma

Universitas Jenderal Soedirman
Supriyadi, Mahfud Sholihin, Zuni Barokah
Universitas Gadjah Mada

Abstract
Prior studies revealed that most companies are reluctant to disclose the negative aspects of their social
responsibilities (e.g. Aktar, 2013; for Indonesian case, see: Gunawan et al., 2011). The reluctancy may
be due to the companies concern to avoid from losing legitimacy. Given that pressures for
transparancy have been increasingly stronger and including negative aspects of corporate social
responsibility has been claimed disclosure quality, there is a need for strategies to disclose negative
aspects of corporate social responsibility. The strategies are intended to address the bad impact of
having negative information on company performance. This paper proposes a conceptual model on
the effective use of impression management strategies to minimize the bad impact of disclosing
negative information of corporate social responsibility. Based on signaling and impression
management theory, we propose that symbolic and substantial legitimacy strategies can be useful to
communicate negative corporate social responsibility to investors. In addition, compared to symbolic
strategy, we also propose that the substantial strategy will give a better impact to reduce the bad
impact.

Keywords: corporate social responsibility, disclosure, symbolic, substantial.

61
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

BUSINESS STRATEGY FOR THE SUSTAINABLE GROWTH OF AIRCRAFT

MAINTENANCE, REPAIR, AND OVERHAUL (MRO) COMPANY IN INDONESIA

Putu Gevani Saraswati , Harimukti Wandebori

Institut Teknologi Bandung

Abstract
The improvement in global GDP growth and the digitalization era are affecting the global industry
performance including aviation industry. Higher air travel demand lead to the increasing number of
aircraft and Maintenance, Repair, and Overhaul (MRO) activities. The global MRO market growth
will be at approximately 3.8% compound annual growth rate (CAGR) over the 10 year period (from
2017-2027) and this opportunity creates higher competitive landscape especially in Indonesia MRO
business. Purpose of this paper is to seek and identified MRO business strategy for the sustainable
growth in Indonesia market. The fundamental MRO business of PT GMF AeroAsia have been
identified and analyzed through an extensive literature review, observation, in depth interview and
experts group discussion. The proposed strategy is basically derived from the SWOT analysis based
on PESTLE, Porter’s Five Forces, and Resources Based View (RBV). Development of differentiation
strategy becomes the key to support GMF’s sustainable growth in Indonesia market. The
differentiation strategy originates from cost advantage and business expansion. Besides providing
analysis of cost drivers to optimize company’s performance, the analysis of differentiation strategy to
be the total solution MRO provider lead to the tendency of cooperative strategy through strategic
partnership to expand the market penetration and product/service development.

Type of Paper: Empirical

Keywords: Business strategy, Aircraft MRO, Cost Drivers, Differentiation Strategy

62
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE RELATION BETWEEN COMPENSATION OF BANKING EXECUTIVES, CHARTER

VALUE, CAPITAL REQUIREMENTS AND RISK TAKING

Tafdil Husni, Rida Rahim, Yurniwati, Desyetti

Andalas University

Abstract
This study aims to analyze the effect of compensation, charter value, and capital requirements on risk-
taking as measured by non-performing loans (NPL), loan-to-deposit ratio (LDR), and operational risk
(OR). This study used a sample of 30 banks listed on the Indonesia Stock Exchange (IDX) in the
period 2006-2017 with 360 observations. The analytical method of the study employed random
effects model (REM) and partial least squares (PLS) regression. The results of this study indicate that
compensation and charter value tend to have a significant negative impact on NPL, LDR, and OR.
This study has limitations because it used a measure of compensation with cash incentives and risk-
taking with an accounting risk approach.

Keyword: risk-taking, charter value, capital requirements.

63
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

DEVELOPING THE HUMAN RESOURCES SHARED SERVICE CENTER MODEL FOR

INDONESIA’S LEADING AGRIBUSINESS AND FOOD COMPANY TO INCREASE
COMPETITIVENESS IN GLOBAL MARKET

Sarah Felicia, John Welly

Institut Teknologi Bandung

Abstract
Business strategies and organizational forms are more complex than ever, one of the reason is due to
changing business models and the need to manage a portfolio of varied business models, and
efficiency pressures to increase volume, reach and capability without adding overhead expense. In the
case study of Indonesia’s leading agribusiness and food company, the company feels the needs to
implement HR Shared Service Center (SSC) model to consolidate various HR policies, standard, and
practice within its multiple business units operating from different locations, including small
operations in other countries. The implementation of HR SSC is an important milestone in its growth
plan as a key enabling infrastructure to support the expanding business operations in the future years,
with its vision to be the strategic and sustainable partner to increase the competitive edge and value,
for the business and all stakeholders. It is believed that SSC can provide high value, standardized, and
scalable services and solutions in the most innovative ways to deliver valuable business insights and
best-in-class customer experience. By utilizing Kates-Kessler’s Five Milestone Design Process, this
final project will elaborate the business case for HR SSC, create a basic structure and tie the pieces
together through strategic grouping and integration, as well as defining what capabilities, structure,
process, rewards, and people practice required for SSC model based on Galbraith’s STAR Model. At
last, Kates-Kessler’s Six Design Driver is applied to ensure a holistic, efficient, and inclusive
approach in determining the optimal HR SSC Model for the company.

Keywords: Centralization, Shared Services, Reorganization, and Efficiency.

64
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

DEMAND ANALYSIS OF DIENG TOURISM OBJECTS USING THE TRAVEL COST

METHOD

Irma Suryahani, Indah Susilowati, Nugroho SBM

Diponegoro University

Abstract
This research was conducted with the aim to determine the factors that influence visitor demand for
Dieng tourism objects. The next goal is to estimate the amount of demand for Dieng tourism objects.
In addition, this study is also to estimate the economic value of Dieng tourism objects. The findings in
this study are divided into three, namely: based on the above calculation is known that Travel Cost of
Dieng variables affect the number of tourists visiting attractions Dieng and has a negative relationship
where the higher costs to attractions to Dieng will decrease the number of tourist visits to Dieng.
Travel Cost Baturraden variables have an influence on the number of tourist visits to Dieng with a
positive coefficient where if there is an increase in costs to Baturraden tourism objects will increase
the number of tourist visits to Dieng tourism objects.

Keywords: deman economics, travel cost, attraction, information

65
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE IMPACTS OF LOCAL CONTENT REQUIREMENTS AND IMPORT QUOTA IN THE

INDONESIAN COMMERCIAL EXPLOSIVES INDUSTRY

Rudianto Sitanggang, Yudo Anggoro

Institut Teknologi Bandung

Abstract
The most widely used explosives in the modern era are manufactured by using ammonium nitrate as
the main raw material (75 – 95% of the explosives content). On average, the consumption or demand
on ammonium nitrate in the Indonesian mining industry is not less than 450,000 tons in a year. Some
world major and domestic explosives companies are compete to secure the Indonesian market share.
Prior to 2012, most of ammonium nitrate used in the Indonesian commercial explosives industry was
sourced from overseas, such as Russia, Ukraine, China, Australia or the country origin of the foreign
explosives companies. Since the implementation of local content requirements (LCRs) in the mining
industry and import quota, the explosives companies and mining industry were pushed to prioritise the
domestic ammonium nitrate. For the government, both policies were aimed to protect and encourage
the national industry. However, it was the fact that the domestic ammonium nitrate traded at a higher
price compared to the imported ones. The increase in the price of the main raw material consequently
increases the price of commercial explosives supplied to the mining industry, thus increase the
blasting cost of the mine operation. Some discussions on this situation have been around the
stakeholders, mainly the explosives companies and mining industry, but there was no official
complaint made to the government so far. The win-win solutions will keep the Indonesian commercial
explosives industry benefitted to all stakeholders.

Keywords: ammonium nitrate, business sustainability, explosives, policies, national industry

66
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EFFECT OF PERCEIVED DESIRABILITY AND PERCEIVED FEASIBILITY

TOWARDS ENTREPRENEURIAL INTENTION AMONG STUDENTS OF
INTERNATIONAL PROGRAM

Soepatini, Wafiatun Mukharomah

Universitas Muhammadiyah Surakarta

Abstract
The aim of this study is to investigate the effect of perceived desirability and perceived feasibility
towards entrepreneurial intention. The research study upon which this research is based has employed
descriptive and causal approach. The primary data obtained from thirty- three students of double
degree program in UMS by using survey. Purposive sampling method applied for this research. The
analysis of the questionnaires found that students perceived career in entrepreneurship is good for
them. In line with this, students found high support from parents to start their own business. Although
the score for entrepreneurial intention indicate strong commitment for being entrepreneurs, students
found themselves not quite capable in handling main aspects of running business. The regression
analysis shows that there are positive significant effects of perceived desirability and perceived
feasibility on entrepreneurial intention.

Keywords: entrepreneurial intention, perceived desirability, perceived feasibility, students of double

degree program.

67
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE STUDY OF THE INFLUENCE OF STRATEGIC FLEXIBILITY AND

ENTREPRENEURIAL ORIENTATION ON MARKETING PERFORMANCE, WITH
MEDIATION MARKET ORIENTATION AND LEARNING ORGANIZATION
(CASE STUDY IN PHARMACEUTICAL INDUSTRY EAST JAVA INDONESIA)

Hario Adji Pamungkas

University of Brawijya

Abstract
Purpose - Strategic flexibility and Entrepreneurial orientation are supporting the achievement of
successful marketing performance, and seeing the mediating effects of market orientation and learning
organization in the face of dynamic external challenges. This paper aims to show and conclude
aspects that influence marketing performance in the case of the pharmaceutical industry in East Java
Indonesia.
Design / method / approach - The review of marketing performance is based on paper related to
strategic flexibility and entrepreneurial orientation on company performance, especially
pharmaceuticals in Indonesia, from science direct, emerald, journal with keyword strategic flexibility,
entrepreneurial, market orientation, learning organization and marketing performnace
Finding - From the literature review found that strategic flexibility and entrepreneurial mediation
with the market orientation and learning organization affect significant to marketing performance.
Marketing performance is a benchmark for the success of company performance. In dealing with
environmental changes that always occur and even pressure companies to continue to develop, the
influence of strategic flexibility and entrepreneurial selection is crucial in answering challenges.
Research limitation / value - This paper presents a variable strategic flexibility and entrepreneurial
orientation that has significant aspects in marketing performance, with mediation market orientation
and learning organization.

Keywords : strategic flexibility, entrepreneurial orientation, market orientation, learning organization,

marketing performance

68
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

ANALYSIS THE EFFECT OF EFFECTIVE TAX RATE, TUNNELING INCENTIVE,

BONUS MECHANISM AND DEBT COVENANT TOWARDS COMPANY’S TRANSFER
PRICING DECISION

Ivani, ASL Lindawati

Binus University

Abstract
This study aims to investigate the influence of effective tax rate, tunneling incentive, bonus
mechanism and debt covenant towards transfer pricing decision in agriculture and mining companies.
The population used is main sector companies listed in Indonesia Stock Exchange period 2014-2016.
The sample was taken by purposive sampling and resulted in the final sample of 42 companies. Data
were taken from the company's annual report and analyzed by logistic regression analysis tool. The
results of the logistic regression show that tunneling incentive has a positive effect on transfer pricing
decision. While others variables have no effect on transfer pricing decision. (I)

Keywords: transfer pricing, tunneling incentive, bonus mechanism, debt covenant

69
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE RELATIONSHIP AMONG FINANCIAL LITERACY, FINANCIAL ACCESS, AND

BUSINESS PERFORMANCE

Desyetti, Tafdil Husni, Rida Rahim, Yurniwati

Universitas Andalas

Abstract
This study aims to examine the impact of financial literacy and financial access to the business
performance of creative industries in West Sumatra. The sample of this study is the craft and fashion
industry with a sampling method using purposive sampling technique. Data were collected using
questionnaires and analyzed using multiple regression analysis. The study finds that financial literacy
is still low and the results of the regression equation test prove that financial literacy has a significant
effect on business performance and financial access strengthens the relationship between financial
literacy and business performance. This study contributes to the concept of theory about the
relationship of financial literacy with financial access and business performance.

Keyword: financial literacy, business performance, financial access, creative industry

70
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

JOB SEGMENTATION IS A TOOL TO IMPROVE YOUR WORKFORCE PLANNING

Harry Trisna, Yudo Anggoro

Institut Teknologi Bandung

Abstract
Business environment is changing drastically in these past 10 years. The rise of internet and mobile
application are changing the whole business ecosystem. The uncertainty for business becoming higher
than before. Therefore the company need to rethink their strategy especially in allocating their
resources. Human capital as one of critical aspect within the company need to evolve in order to keep
their competitiveness in the Dynamic business environment like now. Investing on right talent and
foreseen the future needs of certain skills are now becoming part of human capital job in terms of
workforce planning. Job segmentation method is one of the tool that can be used by company to
improve their sense in preparing their workforce to face the fierce competition in this dynamic
business environment. With Job segmentation we can categorize the job within our company based on
their skill value and uniqueness in the company. Each of segmentation will need different different
strategy and playing different role in the company strategy.

Introduction: this journal is to introduce the usage of job segmentation framework to improve
workforce planning within company.
Methods: We used the framework of job segmentation that developed by Lepak and Snell and
incorporates it with current business condition using skill-based segmentation approach. Results:
based on this writing we hope that we can helps company to know their important job within the
organization and develops comprehensive plan that build based on the characteristics of each job
segment. Conclusion: The conclusion of this journal is with the implementation of job segmentation
we can help company to know their important jobs within the organization and helps them to develop
better workforce planning initiatives based on the charateristics of each job.

Keywords: Human Resources; Workforce Planning; Human Capital; Job Segmentation.

71
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

INTERDEPENDENCE OF DEBT POLICY, DIVIDEND POLICY AND MANAGERIAL

OWNERSHIP

Yurniwati, Desyetti, Tafdil Husni, Rida Rahim

Andalas University

Abstract
This research aimed to find evidence empirical interdependence between debt, dividends and
managerial ownership in testing agency theory. Studies was conducted on manufactory companies
registered in Indonesia Stock Exchange during period 2010 -2017 by using purposive sampling
method. The analysis method used is Equation Simutan with Two stage least square (TSLT). The
results showed that managerial ownership and dividend had a negative and significant
interdependence, while between managerial ownership and debt policy and between debt policy and
dividend policy there was no significant interdependence. The results of this study indicate an
alignment effect and do not support the Pecking Order theory. The contribution of this research is to
develop agency theory concepts with conditions of concentrated ownership structures.

Keyword: Debt Policy, Divident Policy, Managerial Ownership, Agency Conflict, Pecking Order

72
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

IMPLEMENTATION LEVEL OF LEAN MANAGEMENT PRINCIPLES IN THIRD PARTY

LOGISTICS INDUSTRY

Yeni Sumantri
Universitas Brawijaya

Abstract
The implementation of lean principles in Third Party Logistics (TPLs) Industry is needed. The
purpose of this study is to evaluate the level of lean implementation in Third Party Logistics Industry.
This study applied the survey method to explore the object. The questionnaire is expanded from 4P
Model of Liker. The study results show the evaluation of leanness level is necessary for organizations.
By using 4P model can provide an opportunity for the improvement of organization. The lean
principle application in TPLs in East Java is quite intensive. As many as 35% of the TPLs have
implemented it well, 45% of TPLs are quite implementing, and 20% of TPLs are still lacking in
application. On a scale of 5, the philosophy criteria got 3.4; process criteria reach 3.58; criteria for
people and partners reach 3.2 and problem solving criteria achieve 3.29. It can be concluded that most
of the TPLs are more implementing category 2 (process category) compared to the other categories.
This means that TPLs prioritize the process as a means to achieve quality results. In order to achieve
more generalized results, a more extensive study covering more TPLs are needed. This study gives
increased knowledge about lean implementation in term of 14 management principles.

Key words: Third Party Logistics, Lean, Innovation

73
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE ROLE OF GREEN PRODUCT INNOVATION IN EFFORT TO IMPROVE THE

CREATIVE INDUSTRY PERFORMANCE

Hadiah Fitriyah
Airlangga University, Muhammadiyah University of Sidoarjo
Bambang Tjahjadi, Noorlailie Soewarno
Airlangga University

Abstract
The creative batik industry is one of the creative industries in Indonesia which is a condition of
Indonesian culture and traditional values. In improving the performance of creative batik industry,
innovation is needed. Strategic innovations that can be applied in the creative batik industry is through
green product innovation. So the aim of this research is to prove the role of green product innovation
in effort to improve the performance of the creative batik industry in East Java. The approach in this
research is quantitative research. In this research uses cluster sampling technique. The data analysis
method used in this research is to use PLS-SEM by using Smart-PLS Software. The result of this
researchis that the green product innovation has an effect on improving the performance of the
creative batik industry in East Java.

Keywords: green product innovation, organizational performance, creative industry

74
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

VECM ANALYSIS BETWEEN BITCOIN, THE VALUE OF CURRENCY AND GOLD

INDEX PERIOD 2014-2017

Rony Joyo Negoro Octavianus, Paskalis Kevin Sutiono

University of Ma Chung

Abstract
Gold and currency values are derivatives that have long been known and used by many to invest.
With the emergence of bitcoin as the cryptocurrency of the world language, the which previously only
look to the gold and currency value. Bitcoin offers security and anonymity to its users where there are
no customary institutions.
The convenience provided by bitcoin has the goal of reducing the cost of third parties, and rapid
reduction Compared to the conventional ones. The purpose of this research is to see the difference,
influence, and relations between the index of gold, index value of foreign currency, and index of
bitcoin period 2014 until 2017. This type of this research is a quantitative research with comparative
and correlational approach. The research methods used to test One Way Anova F test to measure
different of three variables, the Vector Error Correction Model (VECM) test to measure the which one
have more influenced than another, and Granger Causality test to measure one-way relationship or
two way relationship between three variables. In the VECM test there are stationary test, optimal lag
test, cointegration test, granger causality test, and VECM estimation, The results Showed that there
was significant difference between the index of gold, index value of foreign currency, and index of
bitcoin. Besides that, influenced no variables between the three of them. There is a one-way or two-
way relationship between EUR to GOLD, GOLD to EUR, GOLD to BTC, BTC to EUR, and EUR to
BTC.

Keywords: Derivative, Gold Index, Index EUR / USD, Index Bitcoin

75
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

EFFECT ANALYSIS OF INTELLECTUAL CAPITAL AND INVESTMENT OPPORTUNITY

SET TOWARDS RETURN INDEX LQ45 PERIOD 2012-2016

Marcella Giovani Tandio, Sahala Manalu

University of Ma Chung

Abstract
This study aims to analyze the influence of intellectual capital calculated from Value Added
Intellectual Coefficient (VAIC) to stock return of company LQ45 index period 2012 to 2016 and to
analyze influence of investment opportunity set variable consisting of market to book value of asset
(MV / BVA) , the market to book value of equity (MV / BVE) and earnings per share per price (EPS /
P) to the stock return of LQ45 index period 2012 to 2016. The object of this research is the LQ45
Index of companies listed on the Indonesia Stock Exchange during the period 2012 to 2016 in a row.
In this research, writer use sampling technique with purposive sampling which determine sample with
certain consideration. The sample used is a company listed in the LQ45 index period 2012 to 2016.
The author uses quantitative data whose data is expressed by numbers and shows the value of the
variables it represents. Sources of data in this study using secondary data sourced from the financial
statements of LQ45 index companies listed on the Indonesia Stock Exchange in 2012 to 2016. The
data obtained from the Investment Gallery Indonesia Stock Exchange (GI BEI) Ma Chung University.
The results showed that the VAIC variable did not affect the stock return. Furthermore EPS / P has a
significant positive effect on stock return, while MV / BE and MV / BVA variables have no effect on
stock return.

KeyWords: Intellectual capital, Investment Oppurtunity Set, Stock Return, LQ 45 Index

76
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

COMPARATIVE ANALYSIS OF INTERNAL RATE OF RETURN BETWEEN LUMP SUM,

DOLLAR COST AVERAGE, AND VALUE COST AVERAGE INVESTMENT STRATEGY
ON ISLAMIC MUTUAL FUNDS IN INDONESIA

Rony Joyo Negoro Octavianus, Andika Pratama Hadirijanto

Ma Chung University

Abstract
Very important to use investing strategy because of the Fluctuation price in capital market. With the
right choice, investing strategy can help investors to the make investing Become Easier and get higher
returns. Dollar Cost Average, Average Cost Value, and Lump Sum are common investing strategy
used by investors. This research Shariah choose as the object Mutual Fund Mutual Fund Shariah
Because never studied before and Shariah Mutual Fund have chance to growth into bigger markets.
This research use historical NAV price of data within the period 2013-2017. There are two objectives
of this research, first is to analyze the difference Internal Rate of Return value between Lump Sum,
Dollar Cost Average, and Value Cost Average on Indonesia Shariah Mutual Fund within 2013-2017
period and the second is to understand the which strategy can get the highest IRR. The conclusion of
this research based on hypothesis test using One Way ANOVA, there is no value IRR Significantly
difference between Lump Sum, Dollar Cost Average, and Value Cost Average on Indonesia Shariah
Mutual Fund within 2013-2017 period. Even According to statistical Significantly, there is no
difference but According to investing simulation, Average Cost Value can get the highest IRR value
Followed by Dollar Cost Average and the last is Lump Sum.

Keywords: IRR, investment strategy, Dollar Cost Average, Average Cost Value, Lump Sum

77
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

COMPARATIVE ANALYSIS OF INTEREST RATE LOANS AND INCREASE PRICES AND

APARTMENTS IN SURABAYA MALANG 2014-2017

Vicky Saputra, Stevi Jimry Poluan, Rony Joyo Negoro Octavianus

Ma Chung University of Malang

Abstract
The housing needs increasing because the number of students in Malang and Surabaya making the
need for land is increasing. Indonesia's economic growth showed a positive trend Gross Domestic
Product (GDP) increased by 5.18 percent. Increasingly high price of land and and the number of
vacant tanahyang in big cities like Malang and Surabaya. The purpose of this study was to analyze the
differences in the level of mortgage interest rates and rising apartment prices of apartments in the city
of Malang and Surabaya in 2014-2017. The variables of this research is the increase in lending rates
KPA and rising prices of apartments in the city of Malang and Surabaya. This study is a quantitative
study using data analysis techniques used are different t test analysis, Independent sample test. The
results showed that there were significant differences for all the different variables, the variable rate of
interest rate hikes KPA and variable rate of rise in prices of apartments in the city of Malang and
Surabaya. City research results poor rate of increase in mortgage interest rates are significantly
different apartments with a percentage increase in the price of apartments and Surabaya rate of
increase in lending rates did not differ significantly apartment with a percentage increase in the price
of apartments.

Keywords: KPA interest rate, rate of increase in the prices of apartments, Malang and Surabaya.

78
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

CHILD CONSUMER AND CONSUMPTION: THE STUDY OF MAPPING MODEL AND

THE IMPLICATIONS IN RESEARCH OPPORTUNITIES OF CHILD CONSUMER
DECISION MAKING

Anna Triwijayati
University of Ma Chung

Abstract
Specific researchs on children consumer decision-making were still not widely applied. In Indonesia,
there has been no research on children consumer decision-making. Studies in other countries about
children consumer are also very diverse and partial; have not yet to find a specific model of decision
making from children consumer’s perspective. This condition encourages researcher doing the
mapping study. The questions of how children make decisions, whether impulsive or planned, or take
the other models have not been answered clearly. This article was based on study of consumer
behavior research using two kind of research: exploratory qualitative and fenomenology. The aim of
study was to map out research on children consumer purchase decision especially on food purchase,
and also to find the theory of children consumer decision making quadrant of the map of the study
was based on the type of research, themes, objects and subjects. This mapping study provides research
opportunities on children consumers and also indicates that researchers are still focusing on
behavioral factors. Research themes of children spread on various topics and in particular, research
conducted in Indonesia has been the partial studies on Consumer decision-making especially the
relationship between consumption and nutrition. Researchs were still dominated by quantitative than
qualitative whereas children's behavior are unique and individualistic. There are no qualitative study
raised the overall theme of the children consumer decision-making. All models of consumer decision-
making model is applied to the consumer in general, do not look at specific consumer segments.This
research result that children consumer decision making are unplanned, inconsistent and without
deeply product alternative evaluation.

Key words: consumer decision making, children consumer, purchasing, snack

79
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

EMPIRICAL STUDY AT MADIUN DISTRICT REGIONAL GOVERNMENT BUDGET

CORRUPTION CASE

Daniel Sugama Stephanus, Velicia Gabby Sidharta

Universitas Ma Chung

Abstract
This research aims to apply forensic accounting and investigative audit on corruption case of APBD
Kabupaten Madiun in 2014. The research method used is descriptive and ex post facto method. The
results of the research are (1) the identification of red flags in the form of document anomalies,
accounting anomalies, weaknesses of internal control structures, unusual behavior, and
complaints/complaints. (2) Profiling is done by analyzing the tasks and functions violated by the
perpetrator as Superintendent of Madiun Regency and Budget User. (3) The modus operandi used are
misuse of position, borrowing of flags, making transactions and SPJ fictitious, giving money to shut
up and bribe money. (4) Corruption committed by Drs. Benny Adiwijaya, M.Si., caused the state
financial loss amounting to IDR 1,319,414,065. After the calculation of state financial losses, found
difference of IDR 16,968,311 compared with that listed in the file case. The state financial loss in the
study was calculated by the method of total loss, the method considered most effective in this case. (5)
Follow the money can be prepared based on the data obtained, (6) and the sunburst is prepared
according to follow the money.

Keywords: forensic accounting; investigative audit; fraud; corruption; regional governement budget

80
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

SKILL IMPROVEMENT OF SMALL AND MEDIUM SCALE SNACK INDUSTRY IN

SINGOSARI SUB-DISTRICT

Adinda Rahajeng Putri, Felik Sad Windu Wisnu Broto

Universitas Ma Chung

Abstract
Small and Medium Industry (SMI) plays a strategic function as a strategic company as a company that
producing new goods and the latest techniques in the market through innovation. Skills is a demand in
the field of human resources to develop the company in a highly competitive environment, especially
in the field of the snack industry with high competitiveness. The purpose of this study is to identify
problems and to explore and find efforts to improve the skills of workers in the SMI. This research
was conducted in three companies in Singosari District in Malang Kabupaten, such as; Rizqa Tahu,
PT Wijaya Kusuma Langgeng, and CV Mie Biting Dua Udang by interviewing 1 person every
company. This research is based on a case study approach with qualitative descriptive model and
through data collection and interview. Data collection is done by observation, interview, and
documentation by showing the result that there are 5 problems that often occur in a company that is
work hour, discipline, skill, work motivation, and fulfillment target. The need for skilled labor in the
field of materials selection and processing, and mechanical engineering. In addition, as for the
problems or constraints in the production process in the company of machinery, electricity, and
weather. While efforts to improve skills such as training, rotation, giving holidays, bonus, and
motivation.

Keywords: Small and Medium Industry, Skills, Manpower.

81
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

INFLUENCE OF INTELLECTUAL CAPITAL AND SIZE ON COMPANY PERFORMANCE

STUDY IN KOMPAS 100 INDEX FOR THE PERIOD 2011-2013

Sendy Cahyadi
Universitas Ma Chung Malang

Abstract
This study aims to test and prove empirically: (1) the effect of intellectual capital on enterprise
performance. (2) the effect of size on the performance of the corporate. Theoretically the results of
this study are expected to contribute to the knowledge in the field of Accounting Theory, so it is
useful for practitioners and academics.
The study population is a corporate listed on the Indonesia Stock Exchange with a sample of 300
companies included in the index compass 100 during 2011 to 2013. Sampling using purposive
sampling and analysis of research data by multiple linear regression method.
Results of this research is to show that: the simultaneous intellectual capital, size significantly affect
the performance of the corporate and partially (1) intellectual capital (VAIC) positive effect on
performance (ROA) corporate. (2) no evidence of size (Ln Total Asset) positive effect on
performance (ROA) corporate.

Keywords: Intellectual Capital, Size, Corporate Performance.

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 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

BEHAVIORAL FACTOR INFLUENCING INDONESIAN MICRO, SMALL AND MEDIUM

(MSME’S) OWNERS DECISION-MAKING IN ADOPTING E-COMMERCE

Elya Kurniawati
Ma Chung Malang University
Mario Chrissendy Dian Saputra
Bina Nusantara University

Abstract
The internet has made tremendous change in various sectors. The internet plays a pivotal role in our
daily lives. Business and economic are growing rapidly due to vast and current information from the
internet. E-commerce is one of the applications on the internet. This application transcends space,
time and space and therefore, makes business transaction between sellers and buyers easier. Because
of its convenience, business practitioners, including actors of Micro, Small and Medium Enterprises
(MSMEs) in Indonesia use E-commerce. MSME is an individually-owned business or business entity
where decision making is dominantly carried out bybusiness owner. The purpose of this study was to
describe factors that influenced MSME business owners decisions to use e-commerce. The research
method was library study examining theories related to the application of e-commerce and reviewing
the findings of previous related. The finding showed that there are 4 (four) factors that influenced
MSME owners’ decision-making in using e-commerce, namely value, personality, tendency to take
risks and potential uncertainty. The most dominant factor affecting the MSME owners’ decision to
adopt was the tendency to take risks.

Keywords: e-commerce, MSME, decision-making

83
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

SELF-ESTEEM ANALYSIS OF YOUNG WOMEN CONSUMER BASED ON COSMETIC

PRODUCT ADVERTISING EXPOSURE

Etsa A. Setiyati, Daniela Anggita K. Br. Purba

Universitas Ma Chung

Abstract
This research aims to analyze whether there is significant difference in the level of self-esteem among
female adolescent before and after exposed to cosmetic produc advertisement. Research was
conducted with quantitative approach and experimental design. Primary data was collected through
personally administered questionnaire (PAQ) with Rosenberg Self-Esteem Scale (RSES). Laboratory
experiment was conducted to 200 samples consist of 100 samples aged 12-16 (early adolescence) and
100 samples aged 17-22 (late adolescence). Samples answered the questionnaire before and after the
exposure of cosmetic advertisements. Paired sample t-test was employed for data analysis. Result
shows that there is a significant difference in self-esteem level before and after the exposure of
cosmetics advertisements. Self-esteem level among female adolescents is lower after the exposure.
Self-esteem is also lower more drastically among female in early adolescence age compared to female
in late adolescence age. Result indicates that the greater the exposure, the lower the self-esteem level.
This research findings implied that cosmetics marketers should give more realistic and more educative
content in advertisements.

Keywords: self-esteem, female adolescents, advertising, cosmetics

84
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

WORK FAMILY CONFLICT ON THE PERFORMANCE OF FEMALE EMPLOYEES

Uki Yonda Asepta, Raymond Adrian

Universitas Ma Chung Malang

Abstract
The increase of female work force in Indonesia is an interesting phenomenon to study. The increase of
female work force in career world will result in many consequences for female employee, especially
in their household and professional lives. Working women, both as entrepreneurs and as employees
working in companies, are prone to various problems due to the double roles that they have to play.
Such problems are indicated by the decline of employee's performance at work. This study aims to
discover and analyze the impact of work family conflict on the performance of female employees of
PT XYZ in Malang Regency, East Java. In this study, the researcher applied the causal associative
method with quantitative approach. The sampling in this research was conducted with saturated
sampling. The samples used in this research were all female employees in the production department
of PT XYZ, totaling 32 individuals. The data was obtained directly from respondents by using
questionnaires. This study applied the linear regression analysis to test the impact of work family
conflict on the performance of employees. This research discovered that work family conflict has
negative and significant impacts on employee's performance.

Keywords: work family conflict, female employee, employee's performance

85
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EFFECT OF JOB INVOLVEMENT AND CAREER DEVELOPMENT ON EMPLOYEE

PERFORMANCE IN SAVINGS AND LOANS COOPERATIVES IN MALANG REGENCY

Lidia Halim, Natasha Wahyudi

Universitas Ma Chung

Abstract
Employee is a very important asset for an organization. Employees have an important role for the
organization to achieve an organizational goal. In maintaining employee performance to remain
productive then an organization needs to pay attention to several factors such as work engagement and
career development on employees. This study was purposed to determine the effect of job
involvement and career development on employee performance. The method used is associative
research with multiple linear regression analysis technique. The data used in this study were the
primary data obtained from questionnaires distributed to 63 permanent employees on the three
Savings and Loans Cooperatives located in Tumpang District, Malang Regency consist Citra Abadi
Cooperative, Makmur Sejati Cooperative and Mitra Jaya Cooperative. Sample collection technique
used is census. The results of this study indicate that job involvement significantly influences
employee performance and career development significantly influences employee performance. In
addition, job involvement has the most dominant effect on employee performance.

Keywords: job involvement, employee performance, career development

86
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE GROWTH OF MIDDLE CLASS: OPPORTUNITIES AND INNOVATION

CHALLENGES FOR INDONESIAN SMES

Stefanus Yufra M. Taneo

Universitas Ma Chung

Abstract
The global middle class including Indonesia is increasing in line with development success.
Indonesia's middle class is 74 million in 2012 and is predicted to increase to 141 million people in
2020 with the characteristics of young age, living in urban areas, and born in the digital generation.
This brings business opportunities and also challenges for SMEs which constitute the largest
proportion of businesses in Indonesia. This paper analyzes the opportunities and challenges for
innovation faced by SMEs in the face of the growth of the middle class in Indonesia and proposes
some agenda ahead. The results of the analysis show that the growth of the middle class provides
opportunities for SMEs through expanding both domestic and global markets, changing life styles,
and increasing consumption of various types of businesses. But the growth of the middle class brings
challenges for SMEs to be able to innovate (products, processes, and business innovations) based on
digital to meet the needs of the middle class. Another challenge is the implementation of green
economy which has become a world issue. To improve the ability of SMEs to take advantage of
business opportunities and face these challenges optimally, cooperation between government, SMEs,
universities and related institutions is needed.

Keywords: middle class, SME, millennial generation, business opportunities, innovation challenges.

87
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

PROTOTYPE PROGRAM:
REGIONAL ASSET MANAGEMENT INFORMATION SYSTEM FOR SUPPORTING
ACCRUAL BASED ACCOUNTING REPORTING

Yuswanto, Yudhi Kurniawan

Ma Chung University

Abstract
The study was made with the purpose of designing a software Regional Asset Management
Information System to support the accounting accrual-based reporting. The expectations of the design
software that can later be used to inventory and evaluation of regional assets. Ease of inventory and
evaluation reporting will support accrual-based accounting.
The existing process includes recording the procurement of regional assets, usage, maintenance, status
of regional assets, and evaluation of regional asset data resulting in accrual-based accounting
reporting. The initial data used is derived from a study of regional assets and accrual-based
accounting reporting that is made in the form of an analysis document and system requirements. From
the initial data, then implemented into the design and information systems software to be used in
reporting on the accrual-based accounting.
This study activity is emphasized in the documentation needs analysis and software design so that the
resulting blue print of the Regional Asset Management Information System is produced. This study
can be developed include the implementation of documentation needs analysis and software design
into the Regional Asset Management Information System application. At the end of the study it is
expected that software can be obtained in the form of Regional Asset Management Information
Systems to support accrual based accounting reporting.

Keyword: Management Information System, Regional Assets, Accounting Reporting, Accrual Based

88
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

CAPITAL MARKET REACTIONS TOWARDS

IMPROVEMENT IN UNITED STATES BONDS YIELDS

Wihelmina Dea Kosasih, Asri Rahayu, Tarsisius Renald Suganda

Universitas Ma Chung

Abstract
The aimof this study is to analyze the market and trade movements toward the increase in United
States bond yields. Event studyis used as methodologies in this study. 43 companies are used as the
sample of the research. The indicators of market reaction used in this research are abnormal return and
trading volume activity. The window period used in this study is 7 days. The study found that there
are negative significant abnormal return at t+1 period, which is in line with the signaling theory
explaining that the event of the increase in United States bond yields is hoped to have the negative
information content and also found no change in trading volume activity before and after the event.
The result shows that Indonesian capital market gives the reaction toward the increase in United
States bond yields, it indicates that the increase in United States bond yields has the information
content but still considered as a bad news.

Keywords: abnormal return, trading volume activity, increase in US bond yields, Indonesian capital
market

89
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EVALUATION OF THE ASSESSMENT METHOD OF THE GLOBAL VIRTUAL

TEAM (GVT) MODEL (CASE STUDY: NUSANTARA PROJECT )

Liem Gai Sin

Ma Chung University

Abstract
This research presents a theoretical discussion and the evaluation of the assessment method of the
Global Virtual Team (GVT) model. The concept of GVT model as explained in this study is defined
as a pedagogy for international business (IB) students to enhance their learning. The GVT model is a
common practice in the current international business however the effectiveness of the assessment
method of GVT model to educate IB students has been not evaluated. Thus, this is very importance to
evaluate the effectiveness of the assessment method of the GVT model to develop the IB students’
competency. This research is qualitative research to find out the issues in the assessment of the GVT
model and provide the solutions. The findings revealed that the assessment of GVT model has several
issues such as lack of industry involvement, lack of objectivity, no channel to report the issue and
fairness and also the availability feedback. In this research project the authors recommended several
strategies to solve these issues: regular progress report; Anonymity individual evaluation form, well-
designed peer- and self- assessment, business representative’s involvement in designing the
assessment

Keywords: Global Virtual Team model, higher education, international business, pedagogy,
Indonesia

90
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EFFECT OF INCENTIVES SCHEMES AND TASK ATTRACTIVENESS

INTERACTION ON TASK PERFORMANCE

Dian Wijayanti, Daniel Robert Budihardjo

Universitas Ma Chung Malang

Abstract
This study aimed to examine the effectiveness of the financial incentive scheme to improve individual
performance. Task attractiveness is added variable to test its influence on individual performance.
Financial incentives schemes used in this research are piece rate scheme and quota scheme. The
research method is quantitative research using experiment method which is the participants is student
of Ma Chung University on semester 2 and semester 4. Total participants are 55, and there are 34
analyzed data. Results from this study showed that performance with incentive using quota scheme is
higher than incentive using piece rate scheme. But, from this research, task attractiveness is not
proved that affected significantly to performance. But from this research result, proved that financial
incentive is significantly affected to person which is assuming the task is not attractive.

Keywords: Financial Incentives, Task Attractiveness, Performance, Piece Rate Scheme, Quota
Scheme

91
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE EFFECT OF AUDIT QUALITY AND AUDIT TENURE ON AUDIT LAG REPORT
(EMPIRICAL STUDY: PROPERTY COMPANY IN INDONESIA STOCK EXCHANGE 2015-
2017)

Jerico Chandra Makmun, Sendy Cahyadi

Universitas Ma Chung Malang

Abstract
This study aims to prove whether there is influence of audit quality and audit tenure toward audit
report lag. Audit quality is measured by earnings surprise benchmarks. Tenure audit is measured by
the work contract conducted by the Public Accounting Firm with the company. While audit report lag
is measured by the length of audit settlement based on the last fiscal year up to the date of audit report.
Large audit report lag will affect the decision making that will be used by users. The sample used in
this research are 61 property companies listed on the Indonesian stock exchange for three consecutive
years in 2015-2017. The multiple regression is used to address the research questions. The results of
this study indicate that audit quality and audit tenure does not have an effect toward audit report lag.
This is because the audit quality measured by the earnings surprise benchmarks value has a result of
completion that is not much different from the audit quality that not measured by earnings surprise
benchmark. While tenure audit, which is measured by the duration of employment contract, also does
not affect the audit report lag. This is because the tenure audit is limited by Regulation of the Minister
of Finance No. 17 / PMK.01 / 2008 regulating the limitation on the duration of assignment of auditors
with its client companies, the longer of tenure audit will cause the auditor to lose its independence.

Keywords: Audit Report Lag, Audit Quality, Audit Tenure, Earnings Surprise Benchmarks.

92
 International Conference on Entrepreneurship, Management, Accounting and Social Sciences
Malang, 25 October 2018

THE MEASUREMENT OF LIQUIDITY RISK OF THE RURAL BANKS IN THE

FINANCIAL SERVICES AUTHORITY OFFICE

Tarsisius Renald Suganda, Tommy M.H. Hutapea, Dian Wijayanti, Sahala Manalu
Universitas Ma Chung

Abstract
This research is conducted to establish the software related to BPR liquidity risk assessment in the
area of the Financial Service Authority (OJK), Malang Office along with assessment stages and
corrective actions on the results of measurement of liquidity risk. According to the POJK No. 13/
POJK.03/ 2015 concerning Application of Risk Management for Rural Banks, Chapter IX Article 20,
BPRs are required to implement an action plan for risk management implementation in 2019. The five
indicators will be used as a basis for determining the amount of liquidity risk namely non-performing
loan (NPL), third party funds stability, pasiva bank interface (ABP) and core deposance, loan to
deposit ratio (LDR), and cash ratio. The researcher will determine the weight of each indicator and
will consider several matters related to the corrective action plan.

93