Advances: Jurnal Ekonomi & Bisnis

Explainable Artificial Intelligence (XAI) in Personalized Marketing: A Systematic Literature Review of Algorithms, Interpretability Techniques, and Consumer Trust Implications

2026-04-27T08:34:47+07:00

Purpose: This study aims to systematically review the role of Explainable Artificial Intelligence (XAI) in personalized marketing by examining AI algorithms, interpretability techniques, and their implications for consumer trust.

Research Method: A systematic literature review was conducted by analyzing peer-reviewed journal articles and conference papers related to AI, XAI, and personalized marketing. The study synthesizes findings across technical and behavioral dimensions to provide an integrated understanding of the research domain.

Results and Discussion: The results indicate that machine learning, deep learning, and recommender systems are the primary algorithms used in personalized marketing. However, increasing model complexity reduces interpretability, creating a need for XAI techniques such as LIME, SHAP, and attention mechanisms. The findings further reveal that XAI enhances consumer trust by improving transparency, understandability, and fairness, although contextual factors, including privacy concerns and user characteristics, influence this relationship.

Implications: This study contributes theoretically by integrating technical and behavioral perspectives into a unified framework. In practice, it provides managers with guidance on designing transparent and trustworthy AI systems and highlights the need for ethical, user-centered AI implementation.

Originality: This study is original in integrating technical perspectives on XAI with behavioral perspectives on consumer trust in personalized marketing. It offers a unified framework explaining how explainability supports transparency, fairness, and trust in AI-driven marketing.

Determinants of Purchase Decisions for Physical K-pop Albums: Evidence from Starship Entertainment Consumers in Indonesia

2026-05-05T10:02:17+07:00

Purpose: This study aims to analyze the influence of Service Quality, Brand Image, Promotion, and Product Quality on Customer Satisfaction and their implications for Purchase Decisions related to physical K-pop albums associated with Starship Entertainment artists.

Research Method: This study employed a quantitative explanatory approach using survey data collected from 114 respondents in Indonesia who had previously purchased physical albums from Starship Entertainment artists. Respondents were selected using purposive sampling. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS software, including measurement and structural model evaluation.

Results and Discussion: The findings indicate that Service Quality, Brand Image, Promotion, and Product Quality positively influence Customer Satisfaction. Furthermore, Customer Satisfaction positively influences Purchase Decisions for physical K-pop albums. The results suggest that consumers’ evaluations of product quality, promotional communication, service performance, and agency reputation contribute to purchasing behavior in the entertainment industry.

Implications: The findings provide practical insights for entertainment agencies regarding the importance of maintaining product quality, effective promotional communication, service reliability, and positive brand reputation to strengthen consumer purchasing decisions.

Originality: This study develops a structured marketing-based model that examines Purchase Decisions in the context of physical K-pop album consumption using measurable consumer behavior constructs.

Pengaruh Motivasi dan Budaya Organisasi Terhadap Kinerja Pegawai Dimediasi Organizational Citizenship Behavior

2026-04-27T09:05:57+07:00

Tujuan: Penelitian ini bertujuan untuk menganalisis pengaruh motivasi kerja dan budaya organisasi terhadap kinerja pegawai dengan organizational citizenship behavior (OCB) sebagai variabel mediasi pada Dinas Kesehatan Provinsi Sulawesi Selatan. Fenomena penelitian didasarkan pada kondisi kinerja pegawai yang belum optimal meskipun motivasi kerja dan budaya organisasi telah diterapkan.

Metode Penelitian: Penelitian ini menggunakan pendekatan kuantitatif dengan desain survei. Populasi penelitian adalah seluruh pegawai ASN, dengan sampel sebanyak 72 responden yang ditentukan menggunakan teknik stratified random sampling. Data dikumpulkan melalui kuesioner skala Likert dan dianalisis menggunakan metode Partial Least Squares-Structural Equation Modeling (PLS-SEM) dengan bantuan SmartPLS.

Hasil dan Pembahasan: Hasil penelitian menunjukkan bahwa motivasi kerja dan budaya organisasi tidak berpengaruh langsung terhadap kinerja pegawai. Sebaliknya, OCB berpengaruh terhadap kinerja serta berperan sebagai variabel mediasi dalam hubungan antara motivasi kerja dan budaya organisasi terhadap kinerja. Selain itu, motivasi kerja dan budaya organisasi terbukti berpengaruh terhadap OCB.

Implikasi: Penelitian ini menegaskan bahwa peningkatan kinerja pegawai lebih efektif dilakukan melalui penguatan perilaku ekstra peran. Oleh karena itu, organisasi perlu mendorong terbentuknya OCB melalui lingkungan kerja yang kolaboratif dan suportif.

Originalitas: Penelitian ini mengintegrasikan variabel motivasi kerja dan budaya organisasi sebagai faktor internal dan eksternal dalam perspektif teori atribusi, dengan menempatkan OCB sebagai variabel mediasi dalam konteks organisasi publik.

Peran Moderasi Gaya Kepemimpinan dan Motivasi: Pengaruh Implementasi New Public Management Terhadap Kinerja Manajerial Sektor Publik

2026-04-27T09:18:42+07:00

Tujuan: Penelitian ini bertujuan menganalisis pengaruh implementasi New Public Management terhadap kinerja manajerial sektor publik dengan gaya kepemimpinan dan motivasi sebagai variabel moderasi pada Satuan Polisi Pamong Praja dan Pemadam Kebakaran Kabupaten Sinjai.

Metode Penelitian: Penelitian menggunakan pendekatan kuantitatif dengan teknik sampling jenuh, sehingga seluruh pegawai dijadikan responden. Data dikumpulkan melalui kuesioner dan dianalisis menggunakan SPSS melalui uji validitas, reliabilitas, serta analisis regresi.

Hasil dan Pembahasan: Hasil penelitian menunjukkan bahwa implementasi New Public Management berpengaruh terhadap kinerja manajerial. Gaya kepemimpinan dan motivasi mampu memperkuat hubungan tersebut, sehingga efektivitas penerapan New Public Management tidak hanya ditentukan oleh sistem, tetapi juga oleh faktor perilaku organisasi.

Implikasi: Penelitian ini menegaskan pentingnya penguatan kepemimpinan dan motivasi dalam mendukung reformasi manajemen sektor publik. Hasil ini dapat menjadi dasar bagi instansi pemerintah dalam meningkatkan kinerja manajerial secara lebih efektif dan kontekstual.

Originalitas: Keaslian penelitian ini terletak pada pengujian gaya kepemimpinan dan motivasi sebagai variabel moderasi dalam hubungan antara implementasi New Public Management dan Kinerja manajerial.

The Role of Artificial Intelligence and HR Analytics in Enhancing Strategic Human Resource Decision-Making

2026-04-27T08:40:32+07:00

Purpose: This study aims to systematically analyze the roles of Artificial Intelligence (AI) and HR Analytics in enhancing strategic human resource decision-making, focusing on their integration, impact, and implementation challenges.

Research Method: This research employs a Systematic Literature Review (SLR) to analyze peer-reviewed journal articles on AI, HR Analytics, and strategic HR decision-making. Relevant studies were identified, screened, and synthesized to ensure a structured and comprehensive evaluation.

Results and Discussion: The findings indicate that AI and HR Analytics significantly enhance decision quality, speed, and predictive accuracy, enabling a shift from reactive to proactive decision-making. HR Analytics plays a mediating role in transforming workforce data into actionable insights. However, the impact varies depending on organizational readiness, data quality, and analytical capability. Key challenges include data integration, skill gaps, and ethical concerns such as algorithmic bias and transparency.

Implications: This study provides theoretical contributions by offering an integrated framework linking AI, HR Analytics, and strategic decision-making. Practically, organizations should strengthen data governance, analytical capabilities, and leadership support to maximize the benefits of AI-driven HR systems.

Originality: This study offers originality by integrating AI and HR Analytics into a unified framework that explains how both technologies support strategic human resource decision-making while addressing organizational and ethical implementation challenges.

The Impact of Cash Management and Fund Revenue on the Financial Performance of Gereja Masehi Advent Hari Ketujuh (GMAHK)

2026-04-29T10:30:28+07:00

Purpose: This study aims to examine the effect of cash management and public support on the financial performance of nonprofit religious organizations, specifically the Gereja Masehi Advent Hari Ketujuh (GMAHK) in Eastern Indonesia. The study tests whether liquidity and external funding influence financial sustainability and financial independence.

Research Method: This research employs a quantitative design using multiple linear regression with AR(1) autocorrelation correction. The study uses 115 financial statement observations from GMAHK for the period 2013–2025. The dependent variables are the operational reserve ratio and the self-reliance ratio, while the independent variables are the cash ratio and the public support ratio.

Results and Discussion: The findings show that cash management does not significantly affect either operational reserves or financial independence. In contrast, public support has a significant but different effect on the two indicators: it negatively affects operational reserves and positively affects financial independence. This indicates that external funding is more likely to be used for operational needs than for reserve accumulation.

Implications: The findings suggest that nonprofit religious organizations need balanced funding strategies that support both program implementation and reserve building to strengthen long-term financial sustainability.

Originality: This study contributes by providing empirical evidence on financial performance determinants in nonprofit religious organizations in Eastern Indonesia.

Anteseden dari Conspicuous Consumption Kosmetik Ramah Lingkungan pada Generasi Z

2026-05-05T13:11:43+07:00

Tujuan: Penelitian ini bertujuan menganalisis pengaruh Social Media Influencers (SMIs) terhadap perilaku conspicuous consumption pada produk kosmetik ramah lingkungan melalui Influencer Effects Consumption Model (IECM). Penelitian ini menguji peran motivasi intrinsik berupa desire to mimic dan materialism, serta motivasi ekstrinsik berupa social comparison dan Fear of Missing Out (FOMO).

Metode Penelitian: Penelitian ini menggunakan pendekatan kuantitatif dengan metode Structural Equation Modeling (SEM). Data dikumpulkan dari 200 responden Generasi Z di Indonesia berusia 15–28 tahun melalui teknik purposive sampling. Responden merupakan pengguna aktif media sosial yang pernah menggunakan kosmetik ramah lingkungan dan terpapar konten influencer terkait produk tersebut. Analisis data dilakukan menggunakan IBM SPSS 25 dan AMOS 21.

Hasil dan Pembahasan: Hasil penelitian menunjukkan bahwa paparan SMIs berpengaruh positif terhadap desire to mimic dan social comparison. Selain itu, desire to mimic berpengaruh terhadap materialism, sedangkan social comparison memengaruhi FOMO. Materialism dan FOMO terbukti meningkatkan conspicuous consumption.

Implikasi: Temuan ini membantu perusahaan kosmetik mengembangkan strategi pemasaran digital berbasis influencer dan keberlanjutan.

Originalitas: Penelitian ini memperluas IECM pada konteks kosmetik ramah lingkungan sebagai bentuk konsumsi simbolik Generasi Z.

Profitability as a Mediator of the Effects of Green Accounting, CSR, and Environmental Performance on Firm Value in Indonesia’s Raw Materials Sector

2026-05-06T13:23:28+07:00

Purpose: This study examines the effects of Green Accounting, Corporate Social Responsibility (CSR), and Environmental Performance on firm value, with profitability as a mediating variable, in basic materials companies listed on the Indonesia Stock Exchange during 2021–2023.

Research Method: This study uses a quantitative approach with secondary data from annual reports, sustainability reports, and PROPER ratings. The sample includes 57 observations selected through purposive sampling. Data were analyzed using multiple linear regression, path analysis, and the Sobel test with SPSS.

Results and Discussion: The findings show that Green Accounting has a negative and significant effect on profitability but a positive effect on firm value. Environmental Performance positively and significantly affects profitability, while CSR has no significant effect on profitability or firm value. Profitability significantly affects firm value but does not mediate the relationships among Green Accounting, CSR, Environmental Performance, and firm value.

Implications: The findings encourage companies to strengthen environmental management and transparent sustainability disclosure to improve firm value and investor confidence.

Originality: This study simultaneously examines Green Accounting, CSR, Environmental Performance, and profitability in Indonesian basic materials companies.

Pengaruh Profitabilitas, Likuiditas dan Solvabilitas Terhadap Nilai Perusahaan melalui Kebijakan Dividen

2026-04-28T08:11:12+07:00

Tujuan: Penelitian ini bertujuan untuk menganalisis pengaruh profitabilitas, likuiditas, dan solvabilitas terhadap nilai perusahaan dengan kebijakan dividen sebagai variabel mediasi pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia periode 2022–2024.

Metode Penelitian: Menggunakan pendekatan kuantitatif. Populasi penelitian adalah seluruh perusahaan manufaktur sektor industri dasar dan kimia. Teknik pengambilan sampel menggunakan purposive sampling sehingga diperoleh 20 perusahaan sebagai sampel. Data yang digunakan merupakan data sekunder yang bersumber dari laporan keuangan perusahaan. Teknik analisis data menggunakan regresi data panel dan uji mediasi Sobel dengan bantuan software EViews.

Hasil dan Pembahasan: Profitabilitas dan likuiditas berpengaruh positif terhadap nilai perusahaan, sedangkan solvabilitas tidak berpengaruh signifikan. Kebijakan dividen berpengaruh positif terhadap nilai perusahaan serta mampu memediasi hubungan antara profitabilitas dan likuiditas terhadap nilai perusahaan, namun tidak mampu memediasi pengaruh solvabilitas terhadap nilai perusahaan.

Implikasi: Perusahaan perlu memperhatikan profitabilitas dan likuiditas sebagai faktor utama dalam meningkatkan nilai perusahaan, serta mengoptimalkan kebijakan dividen sebagai sarana meningkatkan kepercayaan investor.

Evaluate the Effectiveness of the Inventory Accounting Information System in Supporting Internal Control

2026-05-08T22:24:09+07:00

Purpose: This study aims to evaluate the effectiveness of the inventory accounting information system in supporting internal controls at PT Harapan Indah, which still uses manual and semi-computerized systems.

Research Method: This study employed a qualitative descriptive case study design. Data were collected through interviews, observations, and documentation from five informants, including members of the accounting and financial management departments and warehouse staff. Data analysis was conducted through data reduction, thematic coding, data presentation, and the drawing of conclusions using the COSO Internal Control Integrated Framework and the Information System Success Model.

Results and Discussion: The research findings indicate that the inventory accounting information system has supported the company’s operational activities; however, its effectiveness in supporting internal controls remains moderate. Key weaknesses include a lack of system integration, access restrictions, audit trails, and documented risk assessment procedures.

Implications: This study underscores the importance of integrating digital systems and strengthening risk-based internal controls.

Originality: The novelty of this research lies in integrating the COSO framework and the Information System Success Model in the context of semi-computerized systems.

The Role of Interest Rate Policy in Controlling Indonesian Government Debt

2026-05-16T11:50:49+07:00

Purpose: This study analyzes the role of the benchmark interest rate policy implemented by Bank Indonesia in controlling Indonesia’s government debt burden through monetary and fiscal policy coordination.

Research Method: This study uses a qualitative descriptive approach based on secondary data from Bank Indonesia reports, Ministry of Finance of the Republic of Indonesia publications, DJPPR reports, state budget documents, and macroeconomic policy reports during the 2020–2025 period. Data were analyzed through document review, descriptive interpretation, and source triangulation.

Results and Discussion: The findings indicate that benchmark interest rate policy influences debt-servicing costs, sovereign bond yields, exchange-rate stability, SBN auction effectiveness, and investor confidence. Global monetary tightening and exchange rate volatility also affect refinancing conditions and government debt management strategies.

Implications: The findings emphasize the importance of monetary-fiscal coordination in maintaining fiscal sustainability and financial market stability.

Originality: This study integrates benchmark interest rate dynamics, sovereign financing conditions, and fiscal sustainability within Indonesia’s post-pandemic economic context.

The Effect of Digital Literacy on Entrepreneurial Intention via Locus of Control: A Study of Accounting Students

2026-05-14T14:34:36+07:00

Purpose: This study aims to empirically examine the direct effect of digital literacy on entrepreneurial intention and its indirect effect, mediated by locus of control, among accounting students.

Research Method: This explanatory quantitative research involved 98 accounting students at STIE Yapis Dompu, selected through purposive sampling. Data were collected using an offline questionnaire with a 5-point Likert scale. The variables examined were digital literacy, locus of control, and entrepreneurial intention. Data were analyzed using SEM-PLS to test both direct and mediating effects.

Results and Discussion: The findings show that all hypotheses were accepted. Digital literacy has a positive and significant effect on locus of control and entrepreneurial intention. Locus of control also has a positive and significant effect on entrepreneurial intention and significantly mediates the relationship between digital literacy and entrepreneurial intention. These results indicate that students’ technological competence, supported by strong self-belief and internal control, can strengthen their commitment to entrepreneurship.

Implications: Higher education institutions should integrate practical digital literacy training and character-building programs into the curriculum to strengthen students’ internal locus of control. Future studies may include moderating variables such as subjective norms or family entrepreneurial background.

Originality: This study contributes by explaining how locus of control bridges digital literacy and entrepreneurial intention among accounting students in Dompu.

Analysis of the Effectiveness of Chicken Egg Distribution in Maintaining Food Price Stability

2026-05-16T15:41:24+07:00

Purpose: This study aims to analyze the effectiveness of chicken egg distribution in maintaining food price stability and to identify factors influencing distribution efficiency within the national food system.

Research Method: This study employed a qualitative library research approach using content analysis. Secondary data were collected from academic journals, books, and policy reports via Google Scholar, ScienceDirect, SpringerLink, and the Garuda database, using keyword searches, screening, and thematic coding.

Results and Discussion: The findings indicate that the distribution of chicken eggs in Indonesia remains inefficient due to long distribution chains, high logistics costs, weak coordination among supply chain actors, unequal market information, and intermediary dominance. Geographic fragmentation and seasonal demand fluctuations also contribute to regional price disparities and food price instability.

Implications: The study emphasizes the importance of strengthening logistics infrastructure, institutional coordination, market transparency, and digital distribution systems to improve food price stability.

Originality: This study integrates perspectives on distribution effectiveness, supply chain coordination, intermediary structures, and value chain inequality within a single analytical framework.

Pengaruh Biaya Operasional dan Likuiditas Terhadap Profitabilitas Pada PT PLN (Persero) Unit Pelaksana Pelayanan Pelanggan (UP3) Kupang Tahun 2020-2024

2026-05-14T10:57:22+07:00

Tujuan: Penelitian ini bertujuan untuk menganalisis pengaruh biaya operasional dan likuiditas terhadap profitabilitas PT PLN (Persero) UP3 Kupang.

Metode Penelitian: Penelitian ini menggunakan pendekatan kuantitatif dengan data sekunder berupa laporan keuangan tahunan periode 2020–2024. Variabel penelitian meliputi biaya operasional, likuiditas, dan profitabilitas. Data dianalisis menggunakan regresi linier berganda dengan bantuan SPSS.

Hasil dan Pembahasan: Hasil penelitian menunjukkan bahwa biaya operasional berpengaruh negatif dan signifikan terhadap profitabilitas, sedangkan likuiditas memiliki hubungan positif tetapi tidak signifikan secara parsial terhadap profitabilitas. Secara simultan, kedua variabel tersebut berpengaruh terhadap profitabilitas perusahaan.

Implikasi: Temuan ini menunjukkan pentingnya efisiensi biaya operasional dan pengelolaan likuiditas dalam menjaga kinerja keuangan perusahaan.

Originalitas: Penelitian ini mengkaji hubungan antara biaya operasional dan likuiditas terhadap profitabilitas pada unit operasional PLN yang masih terbatas diteliti.

The Role of Sustainability Risk in the Relationship Between Profitability and Firm Value in Indonesia

2026-05-14T14:27:50+07:00

Purpose: The study aims to determine whether, for IDX-listed companies, sustainability risk mitigates the correlation between profitability and firm value.

Research Method: The following metrics are used to assess the worth of a company: Tobin's Q for profitability, ESG Risk Ratings for sustainability risk, and imbalanced panel data from 84 businesses spanning 2022–2024 (140 firm-year observations). Controlling for business size, age, leverage, and liquidity, the research employs REM GLS with robust standard errors and moderated regression.

Results and Discussion: Profitability is positively related to firm value. The profitability–sustainability interaction is negative but not statistically strong in the linear model, indicating limited evidence of moderation. However, simple slopes analysis showed that the effect of profitability on firm value declines as sustainability risk increases, suggesting a conditional pattern rather than a direct moderating effect.

Implications: Sustainability risk may influence how the market interprets profitability signals. Managers should manage sustainability risk to maintain valuation credibility, while investors may consider it contextual information when evaluating performance.

Originality: This study provides an early exploration from Indonesia that sustainability risk acts as a contextual factor that conditions, rather than directly determines, the profitability–firm value relationship.

Analisis Kinerja Keuangan Berdasarkan Keputusan Menteri Dalam Negeri Nomor 47 Tahun 1999 Pada Perusahaan Umum Daerah (PERUMDA) Air Minum Wair Pu’an Kabupaten Sikka

2026-05-14T11:01:13+07:00

Tujuan: Penelitian ini bertujuan untuk menilai kinerja keuangan Perusahaan Umum Daerah (PERUMDA) Air Minum Wair Pu’an Kabupaten Sikka pada periode 2022–2024 berdasarkan Keputusan Menteri Dalam Negeri Nomor 47 Tahun 1999, serta mengidentifikasi faktor-faktor penyebab fluktuasi kinerja keuangan selama periode tersebut.

Metode: Penelitian ini menggunakan pendekatan deskriptif kuantitatif. Data yang digunakan berupa laporan neraca dan laporan laba rugi PERUMDA Air Minum Wair Pu’an tahun 2022–2024. Analisis dilakukan menggunakan sepuluh rasio keuangan yang mengacu pada pedoman penilaian kinerja Perusahaan Daerah Air Minum sebagaimana diatur dalam Keputusan Menteri Dalam Negeri Nomor 47 Tahun 1999.

Hasil dan Pembahasan: Hasil penelitian menunjukkan bahwa nilai kinerja keuangan PERUMDA Air Minum Wair Pu’an pada tahun 2022 sebesar 21,74, pada tahun 2023 sebesar 21,74, dan pada tahun 2024 sebesar 24,75. Ketiga nilai tersebut berada pada kategori tidak baik dengan nilai kinerja 1. Kondisi ini dipengaruhi oleh tingginya beban operasional, belum produktifnya pengelolaan aset lancar, serta belum optimalnya penagihan piutang.

Implikasi: Temuan ini menunjukkan perlunya peningkatan efisiensi biaya operasional, optimalisasi aset lancar, serta penguatan penagihan piutang secara rutin.

Originalitas: Penelitian ini memberikan gambaran empiris mengenai kinerja keuangan PERUMDA Air Minum Wair Pu’an, Kabupaten Sikka, dalam konteks evaluasi perusahaan daerah air minum.

Factors Influencing Accounting Students’ Intentions to Use Generative AI (ChatGPT)

2026-05-16T10:58:32+07:00

Purpose: This study aims to analyze the factors influencing accounting students' intention to use AI, specifically ChatGPT. This study employs a quantitative approach, adopting the Technology Acceptance Model (TAM) with perceived usefulness and perceived ease of use, and expands it to include the variables of trust and social influence. The research hypothesis states that these four variables have a positive and significant effect on the intention to use GenAI.

Research Method: Data were collected via a questionnaire administered to accounting students who had used or were familiar with ChatGPT. The sample was selected through purposive sampling among students at Tarumanagara University in West Jakarta, yielding 125 respondents. Data analysis was conducted using Structural Equation Modeling-Partial Least Squares (SEM-PLS).

Results and Discussion: The study indicates that perceived usefulness, perceived ease of use, trust, and social influence have a positive and significant effect on behavioral intention. These findings underscore the importance of improving digital literacy, providing guidelines for ethical use, and securing support from instructors and institutions in integrating ChatGPT into accounting education.

Implications: This study makes a theoretical contribution to the development of AI-based technology adoption models and a practical contribution to educational institutions by informing the design of GenAI integration strategies to optimize accounting education.

Originality: A study of the factors influencing the intention to use ChatGPT GenAI among accounting students in Indonesia, specifically at Tarumanagara University, as research on GenAI in accounting education remains limited.

Minimum Wage Determinations in The Regional Economic Development Structure: Central Java’s Longitudinal Analysis in 2020-2024

2026-05-16T16:06:05+07:00

Purpose: This study aims to analyze the factors influencing the MW and assess its role in regional economic development.

Research Method: This study uses a quantitative approach with panel data regression. The estimation models used are the Fixed Effects Model (FEM) and the Random Effects Model (REM), with the independent variables being Regional Gross Domestic Product (GDRP), Labor Force Participation Rate (LFPR), Average Years of Education, Open Unemployment Rate (OUR), and Dependency Ratio.

Results and Discussion: The results show that GDRP, LFPR, and the dependency ratio have a significant positive effect on the MW, while the LFPR has a significant negative effect. Average years of education has a positive but insignificant effect. Simultaneously, all variables have a significant effect on the Minimum Wage MW.

Implications: These findings emphasize that determining the MW requires considering economic, employment, and demographic conditions in proportion.

Originality: This study integrates regional economic, employment, and demographic factors to analyze minimum wage determination across 35 regencies/cities in Central Java Province, using panel data for the 2020–2024 period.

Adjustment in Indonesia’s Exports to the United States: A Perspective from the Partial Adjustment Model

2026-05-16T22:22:51+07:00

Purpose: This study analyzes the short-run and long-run adjustment dynamics of Indonesia’s export value to the United States by examining the effects of the exchange rate, Industrial Production Index (IPI), COVID-19, and geopolitical conflicts across several commodity groups.

Research Method: Monthly time-series data from 2018–2025 obtained from the International Trade Center (ITC), Bank Indonesia, and Badan Pusat Statistik (BPS) are analyzed using the Partial Adjustment Model (PAM) and Ordinary Least Squares (OLS). Lagged export variables are included to capture dynamic adjustment processes, supported by classical assumptions and diagnostic tests.

Results and Discussion: The findings show that the exchange rate has no significant short-run effect on export value, whereas IPI has a positive and significant effect on all commodity groups. COVID-19 and geopolitical conflicts also demonstrate positive effects with varying significance levels. The results further confirm the existence of partial adjustment mechanisms with different adjustment speeds across commodities.

Implications: The study suggests that export policies should prioritize industrial strengthening and adaptive sector-based trade strategies under global uncertainty.

Originality: This study integrates domestic macroeconomic factors and global shocks within a commodity-based PAM framework.