Jurnal Ijrr Full - Wahyu Indah Sari

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INDEXING AND ABSRACTING
International Journal of Research and Review
Vol. 9; Issue: 11; November 2022
Website: www.ijrrjournal.com
Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237
Interest in Using Go Pay for Yogyakarta Students

Sigit Handoyo1, Afiifah Zakiyyah2, Kinanthi Putri Ardiami3, Endah Utami4
1,2,3
Accounting Department, Universitas Islam Indonesia
4
Department of Industrial Engineering, Universitas Ahmad Dahlan
Corresponding Author: Sigit Handoyo [Email: sigit.handoyo@uii.ac.id]
DOI: https://doi.org/10.52403/ijrr.20221118
ABSTRACT and expanded to other business scopes,

including go-pay. Other services or services
Electronic wallets such as Go-Pay are offered in the Go-jek application are Go-
increasingly popular because they make all med, Go-massage, Go-food, Go-tix, and
transactions easy and fast. In this study that used others. Several technology-support domestic
students as respondents, there was evidence that
banks also cooperate with go-pay, such as
the perception of convenience did not affect
interest in using go-pay. However, perceived Bank Mandiri and Bank BNI (Priyono,
benefits and trust affect interest in using go-pay. 2017).
It proves that students have accepted the Go-Pay According to Idris (2019), the results of
application because it is considered easy to use. research conducted by the independent
At the same time, the benefits and trust factors research institute FT Confidential Research
are still the primary considerations in choosing Mobile Payment show that the most
this application. The sampling technique used superior electronic money used in Indonesia
was random convenience sampling by is go-pay compared to users of electronic
distributing questionnaires. Data analysis was money issued by other companies. Nearly
carried out by classical assumption test and three-quarters of all electronic money users
multiple regression analysis.
are recorded. Go-pay also continues to
Keywords: go-pay, perceived convenience, develop itself and reach more types of
perceived benefits, trust payments. To date, 240,000 business actors
in various parts of Indonesia, of which 40%
BACKGROUND are MSMEs, have received it. In addition,
Electronic money prioritizes speed, 28 financial institutions have accepted go-
convenience, and efficiency when pay as a colleague. It shows that go-pay
conducting transactions and aims to reduce significantly contributes to increasing public
the growth rate of cash use. Its development understanding of digital money services.
encourages a less-cash society, the behavior Fintech 2018, in its report, explains that
of people who take advantage of the 70.63% of the public understands financial
conveniences offered by non-cash services in digital form.
transaction tools (Parastiti, Mukhlis, & In its use, some factors or variables
Haryono, 2015). influence a person's interest in using
An electronic wallet or electronic wallet is electronic money applications. Based on
an account that contains funds in an online previous studies, several factors influencing
application used by consumers to make a person's interest in using electronic money
transactions or payments in the form of non- are perceived convenience, perceived
cash. Go-pay is one of the electronic wallet benefits, and trust.
services offered by Go-jek. They started Perceived convenience is the extent to
their services with transportation services which a person believes using technology
International Journal of Research and Review (ijrrjournal.com) 108

Sigit Handoyo et.al. Interest in using go pay for yogyakarta students
will be free of effort. Juhri & Dewi's using. Meanwhile, the results of research
research (2017) conceptualizes that from Ramadhan et al. (2016) prove that the
perceived ease of use can be measured perception of benefits does not positively
through easy-to-use, simple and affect interest in using.
understandable, and trouble-free indicators. The following variable from previous
The logic used in previous studies is that the research is trust. Andriyano & Rahmawati
perception of ease positively influences (2016) define trust as how someone
interest in using. Previous studies that considers their business partners to have
discussed this logic include research from credibility and integrity, so they are willing
Ramadhan et al. (2016), Anjelina (2018), to depend on their business partners. The
Hutami & Septyarini (2018), and Aritonang logic used in previous research is that trust
& Arisman (2018). Research results from positively influences interest in using.
Ramadhan et al. (2016), Andriyano & Previous research that discusses this logic is
Rahmawati (2016), Hutami & Septyarini research from Andriyano & Rahmawati
(2018), and Aritonang & Arisman (2018) (2016) and Anjelina (2018). The results
prove that perceived ease of use has a obtained from research from Andriyano &
positive influence on interest in using. At Rahmawati (2016) prove that trust
the same time, research from Rahayu (2015) positively influences one's interest when
proves that the perception of convenience using technology. Meanwhile, Anjelina
has a negative effect on interest in using. (2018) proves that trust does not affect
According to him, the high perception of interest in using.
ease of use will reduce a person's behavioral From the description of several previous
interest in using mobile banking. It is studies above, some variables are not
because the system is often offline or has consistent. Research conducted by Rahayu
errors when accessing mobile banking, so in (2015) proves that the perception of
its use, it causes disappointment and worries convenience negatively influences interest
for customers to reuse. in using. While the results of the research of
The second variable from previous research Andriyano & Rahmawati (2016), Ramadhan
is the perception of benefits. Candraditya et al. (2016), Hutami & Septyarini (2018),
(2013) defines perceived benefits as a and Aritonang & Arisman (2018) prove that
person's level of trust in specific subjects perceived ease of use has a positive effect
that are considered to be able to speed up on interest in using. In addition to the
and facilitate work to improve their work perception of convenience, the variable that
performance and performance. The logic has not been consistent in previous studies
used in previous studies is that the is the perception of benefits. Candraditya
perception of benefits positively influences (2013), Rahayu (2015), Priambodo &
interest in using. Previous studies that Prabawani (2016), Andriyano & Rahmawati
discussed this logic include research from (2016), Hutami & Septyarini (2018), and
Candraditya (2013), Rahayu (2015), Aritonang & Arisman (2018) state that
Priambodo & Prabawani (2016), Andriyano perceived benefits have a positive influence
& Rahmawati (2016), Ramadhan et al. on interest in using. Meanwhile, research
(2016), Anjelina (2018), Hutami & from Ramadhan et al. (2016) and Anjelina
Septyarini (2018) and Aritonang & Arisman (2018) prove that perceived benefits do not
(2018). The results of the research of positively affect interest in using.
Candraditya (2013), Rahayu (2015), Furthermore, Andriyano & Rahmawati's
Priambodo & Prabawani (2016), Andriyano (2016) research states that trust positively
& Rahmawati (2016), Hutami & Septyarini influences interest in using. At the same
(2018) and Aritonang & Arisman (2018) time, Anjelina's research (2018) proves that
prove that the perception of benefits has a trust does not influence interest in using.
positive influence on interest in someone in

Based on the results of previous studies' Accounting Information System

exposure, this study aims to re-examine the Gunawan (2014) defines an information
inconsistent variables in previous studies, system as a system that can convert
namely perceptions of convenience, information into data into information that
perceived benefits, and trust. can be used in decision-making for its users.
Information systems can be divided into 3.
Technology Acceptance Model (TAM) The first is the transaction processing
Technology Acceptance Model, commonly system. This system records financial
abbreviated as TAM, is one of the models transactions, converts economic activities
created to determine whether a factor affects into financial transactions, and distributes
technology acceptance. TAM is an essential financial information to external
extension of the TRA (Theory of Reasoned and internal parties. Second, the financial
Action) model, in which an individual's reporting system or general ledger. This
reaction and perception of something can system reports and measures conditions and
determine the individual's behavior. changes in financial resources. Moreover
Likewise, with technology, a person can the third is the management reporting
determine his attitude and behavior from the system. This system also provides internal
reaction and perception of the technology. financial data needed in business
User perception of the benefits and ease of management.
using information technology is one factor The three subsystems are a unit, which later
that gives someone a reason for using the developed and combined with advances in
technology or as a benchmark in its use. technology, especially those based on
The TAM model, which was developed computers, and carried out online and
from psychological theory, explains the offline. E-banking, widely used in banking
behavior of computer users, namely based needs, is one of the samples of the
on beliefs, attitudes, intentions, and user combination of technologies used in
behavior relationships. The purpose of this accounting information systems. The Bank
model is to explain in more detail the provides service facilities in the form of e-
acceptance of information technology with banking for its customers through various
certain factors that can influence users to media such as mobile phones, telephones,
accept the technology. These factors are televisions, or computers. At this time, the
placed with two variables: ease of use and development of e-banking is centered on
usefulness. These variables can explain internet intermediaries, which we usually
aspects of user behavior (Wibowo, 2006). call internet banking, and this falls into the
A model will be ideal in the form of banking accounting information systems
predictions and explanations so that it can category.
be identified that some systems will be
unlikely to accept it. Then it is necessary to Mobile Payment
take corrective steps to overcome them. Mobile payment is a payment system for
TAM is intended to achieve the goal of various bills, services, or goods using
providing a basis for knowing the influence smartphones or other digital devices using
of external factors on intentions, attitudes, cellular devices or wireless communication
and internal beliefs by identifying several technology. The concept is a process in
main variables obtained from previous which a transaction occurs using a mobile
research on theories and factors that device capable of securely conducting
determine technology acceptance and using financial transactions via a cellular network
TRA as a theoretical background for model or various wireless technologies such as
the relationship between variables (Siregar, NFC and QR Code. Mobile payment
2011). transactions are classified into two types,
namely remote payments, where users

connect using the internet to a server for to him, when the benefits received by
payments such as go-pay, funds, or ovo to consumers are high, it will increase
make payments, and proximity payments behavior to use mobile banking.
which can only make payments via This result is also supported by Priambodo
cellphones at the place of transactions such & Prabawani (2016). In his research, the
as using NFC and Tcash Tap (Labib & perception of benefits shows that users feel
Wibawa, 2019). that electronic money provides them various
advantages such as speed and accuracy in
Hypothesis Development conducting transactions in small and large
The Influence of Perceived Ease on amounts, efficiency, and more practicality.
Interest in Using Go-pay So, the hypotheses to be developed are:
Perceived convenience describes how a H2: Perception of benefits has a positive
person believes that when they use effect on interest in using go-pay
something like technology, it will be effort-
free. They will use the technology if they The Effect of Trust on Interest in Using
feel it is easy to use (Ramadhan et al., Go-pay: Trust is a form of affirmation of
2016). The results of research from the relationship between the two parties. In
Priambodo & Prabawani (2016) state that the relationship between the two parties, of
the perception of convenience positively course, there are those controlling assets or
influences interest in using electronic providing services or merchandise and
money. According to him, this perception others who become users or who use these
has a positive effect because the instructions services or goods. It is, of course, based on
for use are listed, and users can learn how to the belief in the benefits of a service/good.
use the service themselves. In addition, This trust or belief will undoubtedly
according to him, when making transactions strengthen the relationship between the two
at various merchants (stores) that have parties and encourage them to maintain the
supported this service, it also affects relationship. In the end, a flourishing or
respondents' perceptions. successful relationship cannot be separated
This research is also supported by Aritonang from the trust, which is an essential part of a
& Arisman (2018), which state that the relationship. Trust can be seen from various
perception of convenience positively sides. In this case, honesty indicates user
influences interest in using. According to certainty for business matters, promises,
him, the easier it is for consumers to use the sincerity, and reality (Wibowo & Suryoko,
application, it will attract consumers to 2018).
continue using the service. Andriyano & Rahmawati's (2016) research
Then the hypotheses to be developed are: proves that trust positively influences
H1: Perception of convenience has a interest in using. This study states that the
positive effect on interest in using go-pay better the consumer trust in their business
partners or service providers who are
The Influence of Perceived Benefits on considered to have credibility and integrity,
Interest in Using Go-pay the more interest in using mobile phone
Candraditya (2013) defines perceived accounts for CIMB Niaga customers will
benefits as a person's level of trust in also increase. It is supported by research
specific subjects that are considered to be from Wibowo & Suryoko (2018), which
able to speed up and facilitate work to states that users or respondents will feel safe
improve their work performance and if the level of trust is high.
performance. The results of Rahayu's So, the hypotheses to be developed are:
research (2015) state that the perception of H3: Trust has a positive effect on interest in
benefits positively affects a behavioral using go-pay
interest in using mobile banking. According

RESEARCH METHODS Trust

The population in this study were active According to the KBBI, trust is an
students majoring in accounting in assumption or belief that something that is
Yogyakarta. At the same time, the sample in believed is true or real. Trust is an important
this study was obtained using a random variable in making decisions using go-pay.
convenience sampling method. Random One must believe and trust to be able to use
sampling is sampling from the population this go-pay service. This trust is
done randomly, and convenience sampling undoubtedly influenced by several factors,
is at the right place and time based on including reliability, security, convenience,
availability, or anyone can be a respondent. can be used for various things, and so on,
The data source used is primary data which will later be described in the
obtained directly from the source in the indicators on the questionnaire submitted to
form of respondents' responses to the respondents.
questionnaire. This study uses a survey The analytical method used to test the
research strategy, using questionnaires as hypotheses of this research is multiple
data collection distributed to respondents regression analysis which previously tested
online by including links on social media. the classical assumptions and the
Respondents are expected to provide an questionnaire using validity and reliability
assessment of the statements in the tests.
questionnaire.
In this study, the variables used consisted of Interest in Using
independent variables and dependent The dependent variable in this study is
variables. The dependent variable in this interest in using. Interest is a pleasure to do
study is interest in using. At the same time, activities. Interest in using technology
the independent variables are perceived relates to how companies plan and manage
convenience, perceived benefits, and trust. information technology to achieve its
potential and effective benefits. Information
Interest in Using technology is applied in accordance with
The dependent variable in this study is business strategy (Arthana R &
interest in using. Interest is a pleasure to do Rukhviyanti, 2015).
activities. Interest in using technology
relates to how companies plan and manage Perception of Ease
information technology to achieve its Perceived ease of use is the level of user
potential and practical benefits. Information confidence that the system can be used
technology is applied in accordance with easily and learned independently (Laihad,
business strategy (Arthana R & 2013).
Rukhviyanti, 2015).
Benefit Perception
Perception of Ease
Perceived ease of use is the level of user Perceived usefulness is the extent to which a
confidence that the system can be used person believes using specific information
easily and learned independently (Laihad, systems will improve their performance
2013). (Priambodo & Prabawani, 2016).
Benefit Perception Trust

Perceived usefulness is the extent to which a According to the KBBI, trust is an
person believes using specific information assumption or belief that something that is
systems will improve their performance believed is true or real. Trust is an important
(Priambodo & Prabawani, 2016). variable in making decisions using go-pay.
One must believe and trust to be able to use

this go-pay service. This trust is Reliability Test

undoubtedly influenced by several factors, Ghozali (2018) explains that reliability is a
including reliability, security, convenience, tool used to measure a questionnaire
can be used for various things, and so on, indicator of a variable. The questionnaire is
which will later be described in the reliable if a person's answer to the statement
indicators on the questionnaire submitted to is consistent or stable from time to time.
respondents. The Cronbach Alpha value that will be used
The analytical method used to test the in this study is 0.70. So, an instrument is
hypotheses of this research is multiple declared reliable if the Cronbach alpha
regression analysis which previously tested value is > 0.70.
the classical assumptions and the
questionnaire using validity and reliability Table 2. Ease of Perception Reliability Test Results
Cronbach Alpha N of Items
tests.
0,776 5
Source: Data processed, 2020
RESULTS AND DISCUSSION
The reliability test on this convenience
Validity test
perception variable resulted in a Cronbach
The validity test is used to measure whether
alpha value of 0.776. This figure is greater
or not the questions in the questionnaire are
than 0.70. So, the variables in this study can
valid. This study uses 101 samples, so the r
be said to be reliable.
table used is 0.1956. So, if the calculated r-
value of each question is positive and Table 3. Benefit Perception Reliability Test Results
Cronbach Alpha N of Items
greater than 0.1956, it means that the
question item can be declared valid. 0.840 5
Table 1 Result of Validity Test Results
Variable Item r table r count Result The reliability test on this benefit perception
Kemudahan (X1) Q1 0.1956 0.644 VALID
Q2 0.1956 0.547 VALID variable resulted in a Cronbach alpha value
Q3 0.1956 0.538 VALID of 0.840. This figure is greater than 0.70.
Q4 0.1956 0.651 VALID
Q5 0.1956 0.455 VALID
So, the variables in this study can be said to
Manfaat (X2) Q1 0.1956 0.616 VALID be reliable.
Q2 0.1956 0.728 VALID
Q3 0.1956 0.701 VALID Table 4. Trust Reliability Test Results
Q4 0.1956 0.661 VALID Cronbach Alpha N of Items
Q5 0.1956 0.723 VALID
Kepercayaan (X3) Q1 0.1956 0.709 VALID 0.808 5
Q2 0.1956 0.637 VALID
Q3 0.1956 0.614 VALID
Q4 0.1956 0.763 VALID The reliability test on this confidence
Q5 0.1956 0.560 VALID variable resulted in a Cronbach alpha value
Minat Menggunakan (Y) Q1 0.1956 0.540 VALID
Q2 0.1956 0.707 VALID of 0.808. This figure is greater than 0.70.
Q3 0.1956 0.654 VALID So, the variables in this study can be said to
Q4 0.1956 0.643 VALID
Q5 0.1956 0.673 VALID
be reliable.
Table 5. Reliability Test Results Interest in Using
From the data above, it can be seen that all Cronbach Alpha N of Items
questions from the convenience, benefit, 0.828 5

and trust variables are declared valid
because the calculated r-value is greater The reliability test on the variable of interest
than 0.1956. So, this study's perceived using this resulted in a Cronbach alpha
convenience, benefit, and trust variables can value of 0.828. This figure is greater than
be said to be valid. 0.70. So, the variables in this study can be
said to be reliable.

Classic assumption test normally distributed or not. Using the

Normality test Kolmogorov-Smirnov Test, the following
A normality test was conducted to test are the results of the normality test:
whether, in this study, the variables were
Table 6. Normality Test Results

Unstandardized Residual
N 101
Normal Parametersa,b Mean 0.0000000
Std. Deviation 2.23001125
Most Extreme Differences Absolute 0.066
Positive 0.049
Negative -0.066
Test Statistic 0.066
Asymp. Sig. (2-tailed) 0.200
Based on the test results above, the resulting data is 0.2. The significance level used is 5% or
0.05. So, 0.2 > 0.05, and it can be said that all variables in this study are normally distributed.
Multicollinearity Test
Table 7. Multicollinearity Test Results
Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients t Sig. Collinearity Statistics
B Std. Error Beta Tolerance VIF
1 (Constant) .121 2.118 .057 .954
X1 .066 .128 .050 .517 .606 .559 1.788
X2 .279 .117 .261 2.391 .019 .442 2.261
X3 .537 .118 .461 4.559 .000 .517 1.934
a. Dependent Variable: Y
Based on the test results, the tolerance value Autocorrelation Test

of all variables shows a number above 0.1, This test aims to test whether, in the linear
and the VIF value of all variables also regression model, there is a residual
shows a number below 10, so the data in (interference error) that is not independent
this study can be declared free from of one observation to another. This study
multicollinearity problems. uses the Durbin-Watson Test to detect the
presence or absence of autocorrelation.
Table 8. Autocorrelation Test Results
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson
1 .699a .488 .472 2.264 2.201
a. Predictors: (Constant), X3, X1, X2
b. Dependent Variable: Y
Model Durbin-Watson
1 2,201
Based on the test results above, the number from the residuals of one observation to
obtained is 2.201, which is greater than the another observation. If it is fixed, it is called
value of dU (2.201 > 1.7374). So, it can be homoscedasticity; if it is different, it is
stated that it is free from autocorrelation called heteroscedasticity. The model that
problems. should be homoscedasticity or not
heteroscedasticity occurs. The basis of the
Heteroscedasticity Test analysis is that if there are points that form a
Conducted to test whether in the regression specific regular pattern, then
model, there is an inequality of variance heteroscedasticity has occurred.

Figure 1. Heteroscedasticity Test Results
Based on the results of the scatterplot above, ability of the independent variable will be
it can be concluded that there is no clear very limited in explaining the variation of
pattern, the points are also spread above and the dependent variable if the R-square value
below the number 0 on the Y axis, so there is small. The results of the determination
is no heteroscedasticity. test can be seen in the following table:
Multiple Regression Analysis Table 10. Coefficient of Determination Test

Model R Square Adjusted R Square
Regression analysis measures the
relationship between two or more variables 1 0,488 0,472
and shows the direction of the relationship
between the independent and dependent
Based on the test, an Adjusted R-square of
variables.
0.472 was obtained. So it can be concluded
The following regression model is used in
that the effect of perceived convenience
this study:
(X1), perceived benefits (X2), and trust
Y = a + b1X1 + b2X2 + b3X3 + e
(X3) on interest in using go-pay (Y) is
Table 9. Regression Analysis Results 47.2%. Moreover, the rest, 52.8%, is
Model Unstandardized Coefficients
influenced by variables other than this
B Std. Error study.
1 (Constant) 0.121 2.118
Ease 0.066 0.128
Benefit 0.279 0.117 T-Statistic Test
Trust 0.537 0.118 The t-test was conducted to determine the
effect of each independent variable on the
dependent variable. The significance level
Based on the regression analysis table
will be used at 5% or 0.05, and the t table is
above, the regression equation regarding the
1.98373. The following are the results of the
effect of convenience, benefits and trust on
statistical t-test:
interest in using go-pay as a non-cash
payment instrument is as follows: Table 11. T-Test Result
Model T Sig.
Y = 0.121 + 0.066X1 + 0.279X2 + 0.537X3 (Constant) 0.057 0.954
+e Ease 0.517 0.606
Benefit 2.391 0.019
Trust 4.559 0.000
Coefficient of Determination Source: Data processed, 2020
The value of the coefficient of
determination is between zero and one. The

From the test results above, the conclusions of 0.000 <0.05. Thus, the perception of trust
that can be drawn are: (X3) is stated to have a significant positive
1) Perception of Ease (X1) shows the t- effect on the interest in using go-pay (Y).
count result of 0.517 < 1.98373 and a
significance value of 0.606 > 0.05. Thus, the F - Test
perception of convenience (X1) does not The F test is used to test how the
affect the interest in using go-pay (Y). independent variables have a combined
2) Benefit Perception (X2) shows the t- effect on the dependent variable. The f test
count result of 2.391 > 1.98373 and a is carried out by comparing the significance
significance value of 0.019 <0.05. Thus, the value, so if the significance value obtained
perception of benefits (X2) significantly is less than 5% or 0.05, it can be said that
positively affects the interest in using go- the variables in this study are significant.
pay (Y). Here are the results of the f-test:
3) Confidence (X3) shows the t-count result
of 4.559 > 1.98373 and a significance value
Table 12. F Uji test
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 474.151 3 158.050 30.829 .000b
Residual 497.295 97 5.127
Total 971.446 100
a. Dependent Variable: Y
b. Predictors: (Constant), X3, X1, X2
From the table above, the significance result affect every individual in using go-pay. It is
obtained is 0.000 < 0.05, then the perception because most accounting students at FBE
of convenience (X1), perceived benefits UII are probably already literate with
(X2), and trust (X3) together have a android-based technology, so they already
significant influence on interest in using go- consider it very easy to operate android-
pay (Y). based applications.
The results of this study follow Anjelina's
DISCUSSION (2018) research on Consumer Perceptions of
Perception of convenience has a positive the Use of E-money, which proves that the
effect on interest in using go-pay. perception of convenience does not
The data that has been processed shows that positively affect interest in using e-money.
the perception of ease produces a t count of Because according to him, the distribution
0.517 < 1.98373 and a significance value of of e-money has not been evenly distributed
0.606 > 0.05. Thus, the perception of to all people in Indonesia, so they cannot
convenience (X1) does not affect the judge whether e-money is easy to use or not.
interest in using go-pay (Y).
Based on the test results, the logic of H1, The perception of benefits positively
which states that the perception of ease affects the interest in using go-pay.
affects students' interest in using go-pay, is The perception of benefits shows the t-count
not proven or rejected. Thus, it states that result of 2.391 > 1.98373 and a significance
the various conveniences offered by go-pay value of 0.019 <0.05. Thus, the perception
as a non-cash payment tool do not affect the of benefits (X2) significantly positively
desire of each individual to take advantage affects the interest in using go-pay (Y).
of its services. Based on the results, the logic of H2, which
The conclusion that can be drawn from this states that the perception of benefits has a
study is that the many or small positive effect on interest in using go-pay, is
conveniences provided by go-pay cannot proven or accepted. It means that

accounting students benefit more when proves that trust has a positive influence on
deciding to use something. They filter all interest in using mobile phone accounts. It
the information and technology currently means that the better the trust, the more
developing and prioritize benefits over other interest in using mobile phone accounts for
things. CIMB Niaga customers will also increase.
This study is in line with the results of
research from Rahayu (2015) regarding CONCLUSION
Customer Interest in Using Mobile Banking Perception of convenience does not affect
Using the Technology Acceptance Model student interest in using go-pay. It means
(TAM) Framework (Case Study of PT Bank that many or fewer conveniences provided
Syariah Mandiri Yogyakarta Branch). This by go-pay cannot affect every individual
study proves that perceived benefits using go-pay. At the same time, the
positively influence interest in using mobile perception of benefits positively affects
banking. According to him, when the student interest in using go-pay. It means
perception of benefits increases, behavioral that each individual can feel the benefits
interest in using mobile banking will they receive in using the services provided
increase. by go-pay. Likewise, trust also positively
affects student interest in using go-pay. It
Trust has a positive effect on interest in means that someone will use the technology
using go-pay if the level of trust is high, and vice versa. If
Confidence shows the t-count result of the level of trust is low, it will reduce
4.559 > 1.98373 and a significance value of interest in using it.
0.000 < 0.05. Thus, the perception of trust
(X3) is stated to have a significant positive Suggestion
effect on the interest in using go-pay (Y). This study could only reach 107
From the test results above, the logic of H3 respondents. So, it is hoped that further
that trust positively affects an interest in research can add more respondents to
using go-pay can be stated as proven or provide even better results. In addition, the
accepted. It means that someone will use the convenience variable shows that the results
technology if the level of trust is high, and do not positively affect interest in using go-
vice versa. If the level of trust is low, it will pay. It is because there may be other factors.
reduce interest in using it. For example, students can easily learn and
Trust is an asset in all things, even though get used to various new technologies
some say that trust is more expensive than currently developing, so convenience is not
honesty. It certainly shows that trust is a determining factor for someone to use the
crucial. FBE UII accounting students technology. For further research, it is
showed their level of trust in go-pay possible to use this variable and prove
technology, which means that go-pay can be whether students are not affected by the
trusted to carry out all balance storage and convenience of technology because they are
payment processes. They trust even in terms used to learning and using it.
of security, in terms of assurance, and in
terms of reliability, as well as in other Acknowledgement: None
aspects when using it.
It is similar to the research conducted by Conflict of Interest: None
Andriyano & Rahmawati (2016) regarding
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******

Analysis of the Socioeconomic Characteristics of the

People of Kutalimbaru Sub-District Deli Serdang
Regency
Dewi Mahrani Rangkuty1, Suryani Sajar2, Ahmad Yazid3, Tarisya Alfadhilla4
1,4
Economics Department, Universitas Pembangunan Panca Budi, Indonesia
2
Agrotechnology Department, Universitas Pembangunan Panca Budi, Indonesia
3
Information Technology Department, Universitas Pembangunan Panca Budi, Indonesia
Corresponding Author: Suryani Sajar
ABSTRACT INTRODUCTION
Basically, development is an activity or
The purpose of this study was to analyze the effort carried out in order to create a better
socioeconomic characteristics of the people of situation in the future. However, the results
Kutalimbaru District, Deli Serdang Regency.
of the development that has been
This study used primary and secondary data
types with data collection techniques, namely
implemented have not been seen to be able
direct interviews with respondents with the help to increase the prosperity of the community.
of questionnaires that had been prepared. The The Indonesian government has focused its
data analysis method used in this study is a development strategy on improving and
quantitative descriptive analysis method. The improving the quality of life of the
results of the study found that the Indonesian people to be more equitable and
socioeconomic characteristics of rural at the same time to achieve an adequate
communities in the Kutalimbaru District, Deli level of socio-economic growth (Yuliti &
Serdang Regency, were farmers, breeders, Mangku, 2003).
private employees, and entrepreneurs. The Socioeconomics is a socially regulated
village community is classified as a productive position that places a person in a certain
age of work and with an education level with the
position in society and has the meaning of a
majority of high schools is a fairly good level of
education. The level of public welfare is seen situation that shows the financial ability of
from their income, the majority of which is a the family and the material equipment
monthly average income is a fairly good possessed, where this situation is of good,
income. The research is recommended to be a sufficient, and lacking standard.
reference material in policy-making to local Socioeconomics also concerns everything
governments related to other economic sectors related to the fulfillment of the needs of
in the sub-district as a support for the society. A person's economic condition is a
socioeconomic characteristics of the community determining factor in deciding the welfare
as well as a reference and information on of society related to people's daily lives.
opportunities to increase the income of rural Meanwhile, the social conditions of society
communities.
will affect a person in determining the
Keywords: Characteristics, Income, desired social environment. The social and
Kutalimbaru, Society, Socioeconomics economic conditions of a person tend to be a
reference and a change in the determination
of his status in society. People who are used
to living in rural communities will tend to

Dewi Mahrani Rangkuty et.al. Analysis of the socioeconomic characteristics of the people of Kutalimbaru sub-
district Deli Serdang Regency
want economic life as well as a social the community, in general, has not reached
environment that is almost the same as in the same level of income equality. In fact,
the city (Kifli, 2016). there are still a number of shortcomings,
Socioeconomics aims to improve the including gaps between districts/cities in
standard of human life through efforts to lift achieving economic levels (Rasing, 2014).
people from backwardness to well-being. Kutalimbaru Subdistrict has intended in the
This welfare can be reflected in the income deli Serdang regency, North Sumatra
of people who meet their living needs. province. The natural condition of
In practice, society or each person has a Kutalimbaru District generally has 2 (two)
different and stratified level of seasonal climates, namely the dry season
socioeconomic circumstances, some of and the rainy season, both climates are
which are high, medium, and low influenced by a sea breeze and mountain
socioeconomic conditions. Socioeconomics wind. Administratively, Kutalimbaru
is the position or position of a person in a District is bordered by several areas,
human group which is determined by the namely: the north is bordered by Sunggal
type of economic activity, income, level of and Pancur Batu Districts, the south is
education, age, type of residential house, bordered by Sibolangit District, is bordered
and wealth owned (Abdulsyani, 2013). by the east of Pancur Batu District, the west
However, the occurrence of income is bordered by Langkat Regency (BPS Deli
disparities (differences) in the midst of Serdang, 2021).
society, results in the economic condition of
Figure 1. Map of Kutalimbaru Subdistrict Area Deli Serdang District
The community in Kutalimbaru District area of Kutalimbaru District is 174.92 Km2,

consists of various Cultural Tribes, such as which consists of 14 villages. The villages
Batak, Karo, Javanese, Mandailing, etc. The in Kutalimbaru District are as follows :

Source: Data, Village Offices in Kutalimbaru sub-District

Figure 2. the Name of the Village and the Number of Inhabitants in Kutalimbaru Subdistrict of Deli Serdang District
Kutalimbaru Subdistrict is one of the areas officials, namely the village head and
where most of the people have a livelihood hamlet head as well as through the regent
as farmers and ranchers. Agriculture and and or head of the sub-district. Become a
animal husbandry in this region have reference and information on opportunities
enormous potential to be developed to meet to increase the income of rural communities.
the basic needs of the community,
especially in the Deli Serdang Regency. LITERATURE REVIEW
Agricultural land in this region is dominated The Socioeconomics of the Community
by crops and oil palm plantations. While the Socioeconomics is a condition or state of
farm consists of goats, cows, beef, and the population that includes the level of
laying hens as well as pigs. The education, income level, health level, level
management of agriculture and animal of consumption, housing, and the
husbandry in the Kutalimbaru Subdistrict community environment. Another definition
still uses traditional methods. People sell says socioeconomic is the position of a
their agricultural and livestock products to person in society about others in the sense
collectors (Middlemen) in a raw state or of the social environment, his achievements,
there is no processing at all. In addition, the and his rights and obligations regarding
lack of knowledge of farmers and ranchers resources.
in terms of agricultural and livestock land Based on the above opinions, it can be
management is also one of the obstacles that concluded that socioeconomic is the
result in the lack of maximum results position of a person or group in society
obtained by farmers and breeders. This has whose conditions allow each individual or
an impact on the lack of income from group to make an effort to meet the needs of
farmers and ranchers. There needs to be life (Basrowi & Juriyah, 2017). The
education for farmers and breeders. socioeconomic condition of the population
The author feels the need to study and can be observed from the level of education,
analyze the Socioeconomic Characteristics the level of health, and the economic
of the People of Kutalimbaru District, Deli condition of the population. The
Serdang Regency. So that it can be a socioeconomic conditions of the population
reference material in policy-making to local affect the level of its well-being. Residents
governments related to other economic with a high economic level can adequately
sectors in the sub-district as a support for meet their living needs. Meanwhile,
the socio-economic characteristics of the residents who have a low economic level
people of Kutalimbaru District, Deli are unable to adequately meet their living
Serdang Regency, both through village needs.

To see the socioeconomic conditions Melly A person's income can be related to the type
G. Tan said can be seen in work, education, of work he does according to his respective
health, and the fulfillment of the needs of profession, for example, entrepreneurs,
life in the household. Based on this, the laborers, employees, handymen, and others
family or community group can be (Giang, 2013). The Central Statistics
classified as having low, medium, and high Agency defines income as a person who has
socioeconomic (Zunaidi, 2013). worked by obtaining wages or income for a
predetermined period in the form of both
Income Theory money and goods (Fitriyah, 2016).
Income is all receipts, both cash, and non-
cash that are the proceeds and sales of goods MATERIALS & METHODS
or services within a certain period (Sholihin, The material in this study uses quantitative
2013). Income is compensation for material, namely material related to data
providing services to others, everyone earns that describes the components of the socio-
income because they help others (Putong, economic characteristics of the community
2015). Meanwhile, personal income is a located in Kutalimbaru District, Deli
whole kind of income, one of which is Serdang Regency. The data collection
income obtained without doing anything techniques used are primary and secondary
received by the residents of a country. data. Data sources are obtained from
Personal income includes all people's observations, questionnaires, interviews/
income regardless of whether the income is interviews, literature, and related
obtained from providing production factors agencies/institutions/organizations that
or not (Sukirno, 2002). According to support research related to the problems
Kadariyah, the money a person receives is studied. Details of the indicator data used
in the form of wages, profits, rent, etc, and and the sources of indicator data needed in
is obtained within a certain period (Ratna & this study can be seen in the following table.
Nasrah, 2015).
Table 1. Research Indicators Data Source
Indicators Descriptive Data
Type
The gender indicator is used to see the large percentage of each sex in Kutalimbaru District, Deli Serdang
Gender Regency. Primary
The age indicator is used to see the percentage of age that is still productive in Kutalimbaru District, Deli
Age Serdang Regency. Primary
The job indicator is used to explain the percentage of types of work found in Kutalimbaru District, Deli
Occupation Serdang Regency. Primary
Education indicators are used to see the percentage of community education levels in Kutalimbaru District, Deli
Education Serdang Regency. Primary
Income Income indicators are used to see the size of people's income in Kutalimbaru District, Deli Serdang Regency. Primary
The concept of this research can be seen in the following scheme:
Socioeconomic
Characteristics of Society
1. Gender
2. Age
Income
3. Education
4. Occupation
Figure 3. Research Concepts

STATISTICAL ANALYSIS the study locations in this study. The area of

The data analysis method used in this study Kutalimbaru District is 178.81 Km2, of
is a quantitative descriptive analysis which 85% is land and 15% is hilly. The
method. Descriptive research is research in distance between the sub-district office and
the form of data collection whose picture the district capital is 124 km while the
uses a size, number, or frequency related to distance between the sub-district office and
current circumstances and events and then the provincial capital is 68 km. Kutalimbaru
reported the state of the object or subject Subdistrict has a climate like other villages
under study according to what it is without in Indonesia a dry climate that lasts for 222
any manipulation treatment or changes in days and a rainy last for 143 days (Data:
free variables (Sukmadinata, 2011). Central Statistics Agency of Kutalimbaru
This research method observes communities Subdistrict in 2020 Figures).
in 14 villages in Kutalimbaru District and The economic situation of the people of
interacts with the community to find Kutalimbaru Subdistrict has different
information related to the socioeconomic categories, starting from the categories of
characteristics of the people in the region. very poor, poor, moderate, and rich. This is
The sample used in this study was 219 because his livelihood comes from different
respondents. business sectors, some in non-formal sectors
such as Construction Workers, Farm
RESULT Workers, Rainy Farmers, Rubber and Palm
Geographic State and Monthly of Affairs Plantations, Cattle Farmers, Goats, Sheep,
Administratively, Deli Serdang Regency has and Pigs. While the other small part is in the
22 sub-districts, one of the sub-districts of formal sector such as civil servants,
Deli Serdang Regency is Kutalimbaru honoraries, teachers, medical personnel,
District. In Kutalimbaru Subdistrict, there TNI/Polri, and others.
are 14 villages, of which these villages are
Table 2. Crop Area and Production of Smallholder Plantations According to the Type of Plant in Kutalimbaru District
No. Type of Plants Plants Area (Ha) Production (Ton)
1. Palm Rubber 1,068.20 3,198.31
2. Coconut 441.88 124.33
3. Rubber 549.78 321.19
4. Coffee 231.50 144.80
5. Cacao 1,134.00 1,034.35
6. Big Chili Peppers 19 1,847
7. Cayenne Peppers 28 5,065
8. String Beans 6 1,413
9. Cucumber 29 2,817
10. Petsai/Mustard Greens 33 3,735
11. Eggplant 23 5,714
12. Tomato 5 1,032
Data Source: Kutalimbaru sub-District Agriculture Office in 2020 Figures
Table 3. Livestock and Poultry Populations by Type of Livestock in Kutalimbaru sub-District (Head) in 2017-2019
No. Types of Cattle 2017 2018 2019
1. Dairy 42 42 40
2. Beef Cattle 7,385 7,459 7,533
3. Buffalo 317 320 150
4. Goat 5,142 15,293 14,930
5. Sheep 347 350 675
6. Pig 4,445 4.489 3,503
7. Native Chickens 16,188 16,350 18,476
8. Broilers 1,267,692 1,280,369 1,293,173
Data Source: Kutalimbaru sub-District Livestock Office in 2020 Figures
Characteristics of Respondent
In this study, there were 219 respondents spread across 14 villages in the Kutalimbaru
district. The distribution of the characteristics in this study is as follows.

Table 4. Frequency Distribution Characteristic of Respondents

Characteristic of Respondents Population Percentage
Gender
Male 99 Soul 45.2 %
Female 120 Soul 54.8 %
Total 219 Soul 100 %
Age
< 20 Years 20 Soul 9.1 %
31 – 40 Years 87 Soul 39.7 %
41 – 50 Years 58 Soul 26.5 %
> 50 Years 54 Soul 24.7 %
Occupation
Self Employed 42 Soul 19.2 %
Private Employees 10 Soul 4.6 %
Farmer 76 Soul 34.7 %
Breeder 9 Soul 4.1 %
Others (Civil Servants, TNI/POLRI, etc) 82 Soul 37.4 %
Education
No School 12 Soul 5.5 %
Primary School 22 Soul 10 %
Junior High School 39 Soul 17.8 %
High School 117 Soul 53.4 %
Bachelor 28 Soul 12.8 %
Graduate 1 Soul 0.5 %
Income
< Rp 1.000.000 65 Soul 29.7 %
Rp 1.001.000 – Rp 3.000.000 99 Soul 45.2 %
Rp 3.001.000 – Rp 5.000.000 39 Soul 17.8 %
> Rp 5.000.000 16 Soul 7.3 %
From table.3 by gender, it is known that DISCUSSION

most of the respondents were women, The differences in the socioeconomic
namely 120 people (54.8%). Based on age, situation of the people in the Kutalimbaru
it can be seen that the highest number of sub-district have different categories, which
respondents is at the age of 31-40 years as are then categorized as very poor, poor,
many as 87 people (39.7%), while the moderate, and rich people. This is due to
fewest are respondents aged < 20 years as differences in people's livelihoods, which
many as 20 people (9.1 %). Based on eventually occurs differences in income and
employment, it is known that the highest welfare. The factors causing the income gap
number of respondents is in other jobs include gender, age, occupation, and
(Civil Servants, TNI / POLRI, etc.) which education.
are 82 people (37.4%) followed by farmers Sex indicators can affect a person's income
as many as 76 people (34.7 %) while lowest level because of the differences between
is respondents with breeder jobs as many as men and women as has been exemplified in
9 people (4.1 %). Based on education, it is the theory of nature and nurture in terms of
known that the highest number of biological, social, cultural, and thought that
respondents is in high school education, are dominant in society, creating a division
namely 117 people (53.4%), while the of labor that then becomes a demand for
lowest is the respondents with Postgraduate different roles, duties, positions, and
Education as many as 1 person (0.5%). obligations between men and women.
Based on income, it is known that the Differences in the obligations that must be
largest amount is in the income of IDR done by men or women cause productivity
1,001,000 – R0 3,000,000, - which is as among them to be different so the income
many as 99 people (45.2 %). obtained can be different (Akbariandhini &
Prakoso, 2020).

Age indicators are one of the causes of 1,001,000 – Rp. 3,000,000 is a pretty good
income differences in society. The income.
productive age ranges from 15-64 years This research is recommended to be a
which is the ideal age for workers. As can reference material in policy-making to local
be seen in table 4, the average age of the governments related to other economic
people in Kutalimbaru District is the sectors in the sub-district as a support for
productive age of the workforce. So, it can the socio-economic characteristics of the
be said that people in Kutalimbaru District people of Kutalimbaru District, Deli
with a productive age work. Serdang Regency, both through village
Employment indicators are a factor officials, namely the village head and
affecting income. A person's education is hamlet head as well as through the regent
very influential on the type of work. It can and or the head of the sub-district. As well
be seen in table 4, people in Kutalimbaru as being a reference and information on
District have the most dominant level of opportunities to increase the income of rural
education in Senior High School (SMA) as communities.
much as 53.4% while with an undergraduate
education level of 12.8% and a post- Conflict of Interest: None
graduate level of 0.5%. Then the majority
of people's jobs are farmers and ranchers. REFERENCES
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******

Determination of Fundamental and Technical

Factors on Share Prices in Large-Capitalized
Companies Listed on the Indonesia Stock Exchange
for the 2015-2019 Period
Hasudungan Turnip
Master of Management Study Program on Postgraduate School of University of Sumatera Utara
ABSTRACT dividend Payout Ratio (DPR) partially has a

significant effect on stock prices. Trading
The share price is the value of shares in the volume partially has a significant effect on stock
capital market which is expressed in currency prices. Investors are advised to obtain more
during buying and selling on the stock extensive information about the fundamental
exchange. Many factors affect stock prices and technical factors that affect stock prices so
including fundamental factors such as ROE, that investment decisions can provide better
PBV, EPS, and DPR and technical factors such results.
as sales volume. This study is a quantitative
study that aims to examine the effect of Keywords: Determination, Fundamental Factors,
fundamental and technical factors on the stock technical factors, the stock price
prices of large capitalization companies listed
on the IDX for the 2015-2019 period, where the BACKGROUND
data obtained is realized in the form of The capital market is an activity related to
secondary data obtained from the company's public offerings, securities trading, public
financial statements. The research population is
companies related to securities issued, as
large capitalization companies listed on the
Indonesia Stock Exchange from 2015-2019.
well as institutions and professions related
Determination of the sample using the to securities. The development of the capital
probability sample method with special criteria market in Indonesia has experienced rapid
and obtained 16 companies for 5 years (2015- growth, both in the form of shares and debt
2019) so that there are 80 valid data issuers. The instruments. Investors who invest their
data collection instrument used the secondary funds in the capital market must be able to
data documentation method in the form of time use all information to analyze the market
series and data analysis using multiple linear and their investments in the hope of making
regression. The results of the study prove that a profit. The capital market acts as a liaison
Return on Equity (ROE), Price to Book Value between investors and companies or
(PBV), Earning per Share (EPS), Dividend
government institutions through trading in
Payout Ratio (DPR) and trading volume
long-term instruments such as bonds,
simultaneously have a significant and positive
effect on the dependent variable (stock price). stocks, and others. The most common forms
This is indicated by the value of F-count of capital market investment are stocks and
(26.741) > F-table (2.25) and sig-p (0.000) < bonds. This normative goal is not easy to
0.05. Return on Equity (ROE) partially has a achieve because almost every day there are
significant effect on stock prices. Price to Book fluctuations in stock prices that reflect
Value (PBV) partially has a significant effect on changes in stock prices on the Indonesia
stock prices. Earning per Share (EPS) partially Stock Exchange. Investors need to first
has a significant effect on stock prices. The assess the stocks that will be chosen in

Hasudungan Turnip. Determination of fundamental and technical factors on share prices in large-capitalized
companies listed on the Indonesia Stock Exchange for the 2015-2019 period
making investment decisions, and then Fransisca (2003) and Hartono and
determine whether these stocks will provide Raymundus (2009) that ROE has a
a level of return that is by the expected rate significant effect on stock prices. If a
of return. By knowing the influence of these company has a PBV above 1 (> 1), the
factors, investors can choose a strategy to company's share price is valued higher than
choose a company that is truly considered its book value, which illustrates the better
healthy as a place to invest. Tjiptono and performance of the company in the eyes of
Hendy (2014) state that every company investors. Companies that run well generally
must improve performance in managing have a PBV ratio above one, which
share capital invested in all of its assets to indicates that the market value of the stock
generate very large profits because investors is greater than its book value. The greater
assume that the higher the EPS, the higher the PBV ratio, the higher the company is
the company's ability to generate profits. assessed by investors (investors) relative to
Where the higher the profits generated by the funds that have been invested in the
the company will make investors interested company. Thus, the higher the PBV, the
in the value of the stock. Technical analysis stock returns will increase. Empirical facts
uses the assumption that the market price of that link PBV with stock prices or returns,
stock already reflects all information related among others, carried out by Siddharta
to fundamentals, politics, psychology or all Utama and Anto Yulianto BS (1998)
other information that has an impact on researching the study between price to book
price changes, including stock trading value and stock returns on the IDX, showing
volume which can be used to see the market that PBV hurts stock returns (1996)
reaction to stock trading through demand researching political risk, economic risk,
volume ( bid) and volume of bids (offers). and financial risk, found evidence that PBV
Fundamental analysis techniques focus on is the only fundamental factor that is
financial ratios and events that directly or positively related to stock returns in both
indirectly affect the company's financial developed market and emerging capital
performance. Some experts argue that this markets. The results of Ferson & Harvey's
technique is more suitable for making (1996) research also show that PBV is
decisions in choosing company shares positively related to stock returns (1995)
purchased for the medium and long term. indicating that PBV has no significant effect
This fundamental factor can be seen from on stock returns. EPS (Earnings per Share)
several financial ratios, including is a ratio that shows how much profit the
profitability ratios, namely Return on Assets shareholders get per share (Sinaga, 2009:
(ROA), Return on Equity (ROE), the stock 115).
market price ratio, namely Price to Book The greater the success of the business the
Value (PBV), the ratio of earnings per does so that the returns that will be received
share, namely earning per share (EPS), and by investors are higher and investors will be
the dividend payout ratio (DPR). ROE interested in buying the shares and this
(Return on Equity) is a ratio to measure net causes the stock market price to tend to rise
profit after tax with own capital. (Indriana, 2009). The DPR (Dividend
The influence here shows that if the Payout Ratio) affects changes in stock
resulting ROE value is greater, the stock prices based on the theory of the share of
price will be greater because the ROE profits received by shareholders even
indicates that the return that investors will though it will slightly increase the existence
receive will be high so that investors will be of the issuer in the capital market. The
interested in buying the stock and this distribution of dividends consistently by a
causes the stock market price to tend to company will have a positive effect on the
increase. This statement is supported by price of shares outstanding on the stock
research conducted by Subiyantoro and exchange (Zeyn, 2007). The existence of the

influence of dividend distribution on stock research conducted by Siddharta Utama and

prices is to research conducted by Zeyn Anto Yulianto BS (2008) and the results of
(2007) and Sudaryanti (2010). Factors overseas research conducted by Claude et al
outside of company fundamentals that (2006) and Ferson & Harvey (2006)
technically affect stock prices include the regarding PBV, where Siddharta Utama and
stock trading volume and stock Anto Yulianto BS (2008) showed that PBV
buying/selling saturation. Stock trading was negatively related to stock returns,
volume is one of the indicators used in while Claude et al. (1996) and Ferson &
technical analysis on stock price Harvey (1996) show that PBV is positively
assessments and an instrument that can be related to stock returns.
used to see the reaction of the capital market
to information through the parameters of the
movement of stock trading volume activities
in the market, namely the volume of
demand (bid) and volume of supply (offer).
In general, stock trading volume is the
number of shares of an issuer that are traded
in the capital market every day at a price
level agreed upon by the seller and the
buyer of the shares. Trading volume can be
used as a reference for studying information
on the capital market and stock valuation.
Data regarding trading volume is important In 2016 the increase in the value of
to observe because when compared to the fundamental factors (ROE, PBV, EPS and
total number of shares outstanding, it can DER) and technical factors (volume) was
indicate whether or not the shares are being accompanied by an increase in stock prices
traded on the stock exchange. Stock trading of 1325. However, the increase in the value
volume is used to see the market reaction to of fundamental factors (ROE, PBV, EPS
information through observing changes in and DER) and technical factors (volume) in
trading volume in the capital market. Stock 2017 was followed by a decrease in share
trading volume is used to measure whether prices by 1318 from 1325 in 2016.
individual investors know the information Meanwhile, in 2018, there was a fluctuation,
issued by the company and use it in buying namely a decrease in ROE value to 2.28
or selling shares so that they will get above- from 2.41 in 2017, a decrease in PBV value
normal profits. By knowing the influence of to 2.44 in 2017 from 3.45 in 2017, an
these factors, it can be seen which increase in EPS became 474.25 in 2017
companies are truly considered healthy. from 395.73 in 2017, an increase in DER to
Another reason is that there are still gaps in 2.32 in 2018 from 1.91 in 2017, a decrease
the results of previous studies regarding the in trading volume to 46253915 but
influence of fundamental and technical accompanied by an increase in stock prices
factors on ROE, PBV, EPS, DPR and to 1796 from the previous year of 1318 in
trading volume. Several previous studies 2017. Likewise in 2019, fluctuations
show that there is a gap in research results, occurred, namely an increase in ROE value
where there is research that proves that to 2.43 from 2.28 in 2018, an increase in
ROE, PBV, EPS and DPR have a significant PBV value to 2.57 in 2019 from 2.44 in
influence on the company's stock price, but 2018, an increase in EPS to 491.37 in 2019
there are also previous studies that prove from 3474.25 in 2018, a decrease in DER to
that ROE, PBV, EPS and DPR have no 2.29 in 2019 from 2.32 in 2018, an increase
significant effect on price share. The in trading volume to 52374941 but
research gap between the results of domestic accompanied by a decrease in stock prices

to 1683 from 1796 in 2018. This empirical The influence of DPR on Stock Prices
fact shows the diversity of the influence of According to Pranata et al (2015) "Dividend
factors fundamentals and technicals on Payout Ratio (DPR) is a comparison
stock prices. Starting from the phenomenon between dividend per share and earnings per
of the gap in the results of the study, the share (EPS). A high DPR indicates that the
researcher assesses the importance of level of profit sharing made by the company
researching the determination of the is also high so that it will increase investor
fundamental and technical factors that affect interest in buying the company's shares for
the stock prices of large capitalization dividends, the higher the demand from the
companies listed on the IDX for the 2015- market, the higher the share price. The
2019 period. results of Rheza's research (2016) Analysis
of the Effect of DPR, Der, Roe, and Tatoo
The Effect of ROE on Stock Prices on Stock Prices (Case Study on Basic
Return on Equity (ROE) measures what Industrial and Chemical Companies Listed
percentage of net profit is obtained when on the IDX Period 2010-2014) prove that
measured from the ner's capital. According investors will choose companies that have a
to Darmadji and Fakhrudin (2011: 158) high DPR ratio. The higher the stock, the
"Return on Equity is a ratio to measure the more investors buy the stock, and the stock
ability of the company's return on capital". price will also increase.
Meanwhile, according to Harahap (2009:
305), "the bigger the ratio, the better Effect of Trading Volume on Stock Price
because it is considered the ability of an Stock trading volume can be interpreted as
effective company to use its equity to the number of shares of an issuer or
generate profits". company that are traded in the capital
market every day at a price level that has
The Effect of PBV on Stock Prices been agreed upon by the seller and buyer of
According to Tryfino (2009: 11) “Price to shares through a stock trading broker
Book Value (PBV) is a calculation or (intermediary). Susanto and Sabardi (2010)
comparison between the market value and stated that "historically, stock trading
the book value of a stock. With this PBV volume has a relationship with market
ratio, investors can immediately find out prices on the stock exchange because stock
how many times the market value of a stock trading volume is considered a measure of
has been valued from its book value. This market strength or weakness by the law of
ratio can provide an overview of the supply and demand. Many studies have
potential movement of a stock's price so that proven the relationship between trading
from this description, indirectly this PBV volume and stock prices (Kim and
ratio also influences stock prices. Verrecchia, 1991; Smirlock and Starks,
1988; Brailsford, 1994 Mahajan and Singh,
The Effect of EPS on Stock Prices 2008). The relationship between stock price
According to Tryfino (2009: 11-12) and volume can be used as the basis of a
“Earning Per Share (EPS) is the ratio used trading strategy and as evidence of the
to calculate the net profit or profit obtained efficiency of the stock market. (Mahajan
from a share. The greater the EPS, it can be and Singh, 2008; Admati and Pfleiderer,
concluded that the company's performance 1988). Research conducted by Abidin et al.
is more effective or better so in the end this (2016) stated that trading volume partially
ratio can also be used to predict the price hurts stock prices. Research conducted by
movement of a stock. In other words, the Dwi Wulandari (2009) also states the same
magnitude of the Earning Per Share (EPS) thing.
ratio can influence stock prices.

research population is large capitalization

companies listed on the Indonesia Stock
Exchange from 2015-2019. The method
used in the sample selection is the random
sampling method, which is part of the
sampling technique using the probability
sampling method which provides equal
opportunities for members of the population
to be selected as research samples with the
following criteria;
1. The company has been listed on the IDX
for the 2015-2019 period.
Figure 1. Conceptual Framework
2. The company publishes complete
financial report data for the 2015-2019
Hypotheses
period.
H1 = Return on Equity (ROE) partially
positive and significant effect on stock
The selection resulted in the number of
prices of large capitalization companies
companies that met the criteria as many as
listed on the IDX for the 2015-2019 period.
16 companies each issuing financial
H2 = Price to Book Value (PBV) partially
statements within 5 years so that the number
of samples became 16 x 5 = 80 samples.
The data in this study were sourced from the
official IDX website through
H3 = Earning per Share (EPR) partially
www.IDX.co.id. The data collection method
has a positive and significant effect on the
used by researchers in this study is to use
stock price of large capitalization companies
the method of literature and documentation.
The library method is used to complete the
H4 = Dividend Payout Ratio (DPR)
theoretical basis by reading books and the
partially positive and significant effect on
results of previous research as well as
stock prices of large capitalization
articles related to the title of this thesis.
companies listed on the IDX for the 2015-
Documentation Method, data collection
2019 period.
technique by quoting directly from the
H5 = Trading volume partially has a
financial information of large capitalization
companies listed on the Indonesia Stock
Exchange (IDX) through the website
www.idn.co.id to collect the data needed for
writing this thesis.
RESEARCH METHOD
The statistical analysis technique in this
The type of research used is quantitative
study uses multiple linear regression
research. This study aims to examine the
because there is more than one independent
influence of fundamental and technical
variable. Regression analysis is an analysis
factors on stock prices of large
that aims to determine a variable against
capitalization companies listed on the IDX
another variable. before performing multiple
for the 2015-2019 period, where the data
linear regression analysis, the descriptive
obtained is realized in the form of secondary
statistical assumption test and the classical
data obtained from the company's financial
assumption test were first performed.
statements. This research was conducted on
the Indonesia Stock Exchange through the
RESULT AND DISCUSSION
internet with the site www.IDX.co.id. This
The research at this stage will test the
study took observations for 5 years starting
Determination of Fundamental and
from 2015 to 2019. In this study, the

Technical Factors on Stock Prices in Large The Effect of Return on Equity (ROE) on
Capitalized Companies Listed on the IDX Stock Prices
for the 2015-2019 period which includes 5 x Table 3 shows that the t-count value of X1
16 = 80 issuers’ valid data (ROE) = 3.095 with a significance (p-value)
of 0.003. When compared with the value of
Test Results and Data Analysis t-table = 2.01 (for N = 80 or df = 74) and
Simultaneous F Test Results sig-p = 0.05, it can be seen that the value of
The F test was simultaneously carried out to t-count X1 (3.095) > t-table (2.01) and p-
determine whether the 5 independent value (0.003) <0.05. The results of this
variables were X1 (ROE). X2 (PBV), X3 analysis meet the requirements of
(EPS), X4 (DER) and X5 (trading volume) hypothesis testing where if t-count > t-table
have a significant effect on the dependent and p-value <0.05. This means that Ha is
variable Y (Stock price) accepted or Ho is rejected. Thus, it can be
concluded that the variable X1 (ROE)
partially has a significant effect on the
dependent variable Y (Stock price).
The Effect of Price to Book Value (PBV)

on Stock Prices
Table 3 shows that the t-count X2 (PBV) =
3.763 with a significance (p-value) of 0.000.
When compared with the value of t-table =
2.01 (for N = 80 or df = 74) and sig-α =
F-test = 26,741 with a significance value (p- 0.05, it can be seen that the value of t-count
value) = 0.000. When compared with the X2 (3.763) > t-table (2.01) and p-value
value of F-table = 2.25 (for N = 64 or df = (0.000) <0.05. The results of this analysis
58), it can be seen that the value of F-count meet the requirements of hypothesis testing
(26,741) > F-table (2.25) and sig-p (0.000) < where if t-count > t-table and p-value <0.05.
0.05, so it can be concluded that the 5 This means that Ha is accepted or Ho is
independent variables X1 (ROE), X2 rejected. Thus, it can be concluded that the
(PBV), X3 (EPS), X4 (DPR) and trading variable X2 (PBV) partially has a significant
volume simultaneously have a significant influence on the dependent variable Y
and positive effect on the dependent (Stock price).
variable Y (stock price).
Effect of Earning per Share (EPS) on
Partial T-Test Results Stock Price
To determine the effect of each of the 5 Table 3 shows that the t-count X3 (EPS) =
independent variables on the dependent 2.531 with a significance (p-value) of 0.014.
variable Y (Stock price) When compared with the value of t-table =
0.05, it can be seen that the value of t-count
X3 (2.531) > t-table (2.01) and p-value
(0.014) <0.05. The results of this analysis
meet the requirements of hypothesis testing
where if t-count > t-table and p-value <0.05.
This means that Ha is accepted or Ho is
rejected. Thus, it can be concluded that the
X3 (EPS) variable partially has a significant
influence on the dependent variable Y
(Stock price).

The Effect of Dividend Payout Ratio variable, Price to Book Value (PBV),
(DPR) on Stock Prices Earning per Share (EPS), Dividend Payout
Table 3 shows that the t-count X4 (DPR) = Ratio (DPR) and trading volume while the
2.264 with a significance (p-value) of 0.027. rest (38.0%) is explained by other factors
When compared with the value of t-table = not examined.
0.05, it can be seen that the value of t-count Multiple linear regression equations can be
X4 (2.264) > t-table (2.01) and p-value arranged according to the following
(0.027) <0.05. The results of this analysis calculated coefficient values:
meet the requirements of hypothesis testing Y = a + b1X1 + b2X2 + b3X3 + b4X4+
where if t-count > t-table and p-value <0.05. b5X5 + e
This means that Ha is accepted or Ho is Y = 1.421 + 0.820X1+ 0.928X2 +
rejected. Thus, it can be concluded that the 0.998X3+ 0.689X4 + 0.959X5 + e
X4 variable (DPR) partially has a significant
influence on the dependent variable Y Interpretation:
(Stock price). 1) Y = 1.421 + 0.820X1
This equation shows that each increase in
The Effect of Dividend Payout Ratio ROE by 1 point, can increase the stock price
(DPR) on Stock Prices by 1.421 + 0.820 = 2.2 points. In other
Table 3 shows that the t-count value of X5 words, each increase in ROE can increase
(trading volume) = 6.682 with a significance the share price by 2.2 times.
(p-value) of 0.000. When compared with the 2) Y = 1.421 + 0.928X2
value of t-table = 2.01 (for N = 80 or df = This equation shows that every 1-point
74) and sig-α = 0.05, it can be seen that the increase in PBV can increase the stock price
value of t-count X5 (6.682) > t-table (2.01) by 1.421+0.928 = 2.3 points. In other
and p-value (0.000) <0.05. The results of words, each increase in solvency can
this analysis meet the requirements of increase the stock price by 2.3 times.
hypothesis testing where if t-count > t-table 3) Y = 1.421 + 0.998X3
and p-value <0.05. This means that Ha is This equation shows that every 1-point
accepted or Ho is rejected. Thus, it can be increase in EPS can increase the stock price
concluded that the variable X5 (trading by 1.421 + 0.998 = 2.4 points. In other
volume) partially has a significant effect on words, each increase in EPS can increase
the dependent variable Y (stock price). the share price by 2.4 times.
4) Y = 1.421 + 0.689X4
R Determination Test Results This equation shows that every increase in
DPR by 1 point, can increase the stock price
by 1,421 + 0.689 = 2.1 points. In other
words, every increase in DPR can increase
the share price by 2.1 times.
5) Y = 1.421 + 0.959X2
This equation shows that each increase in
trading volume by 1 point, can increase the
stock price by = 1.421 + 0.959 = 2.3 points.
In other words, each increase in trading
volume can increase the share price by 2.3
Adjusted r-square value = 0.620. This
times.
means that the influence of the independent
variable on the dependent variable Y (Stock
CONCLUSION
price is 0.620 x 100% = 62.0%. In other
Return on Equity (ROE), Price to Book
words, 62.0% of the stock price variable can
Value (PBV), Earning per Share (EPS),
be explained by the Return on Equity (ROE)

Dividend Payout Ratio (DPR) and trading Manajemen Keuangan Perusahaan. PT. Raja
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******

Analysis of Optimal Stock Portfolio Investment on

The LQ45 Index Using the Markowitz Model and
Single Index Model
Fadlan Alkindi1, Isfenti Sadalia2, Iskandar Muda2
1,2
Magister of Management Study Program on Postgraduate School of University of Sumatera Utara
Corresponding Author: Fadlan Alkindi
ABSTRACT generate a profit of 14.86% with a risk level of

8.73% compared to the Risk-Free Assets Return
This Markowitz model can overcome the rate of 5.17%. Meanwhile, the Markowitz model
weakness of random diversification. The can generate a portfolio return of 0.74% with a
assumption that increasing the number of shares portfolio risk of 4.28% not providing optimal
in a portfolio continuously will provide greater returns because the expected return from the
benefits is different from the Markowitz model. Markowitz model portfolio is lower than the
This model believes that the addition of stocks Risk-Free Asset Return Rate.
continuously in one portfolio, at a certain point,
will further reduce the benefits of diversification Keywords: Markowitz Model, Single Index
and will increase the level of risk (Tandelilin, Model, Portfolio Optimal, Stock
2010). The Markowitz portfolio also provides
quite efficient results because it has a positive BACKGROUND
expected return value from each portfolio To reduce the accepted risk, investors can
(Supriyadi and Hadmar, 2009). Single Ithe avoid or reduce the risk. In avoiding risk,
single model is one method for forming a investors do not sell or buy, while reducing
portfolio that can be used by investors. The
risk can be done by diversifying.
optimal portfolio analysis technique using the
Single Index Model is a security analysis Diversification is combining various
technique that is carried out by comparing the securities in investment to form a portfolio.
excess return to beta (ERB) to the cut off rate A portfolio is a combination of securities
(Ci) of each stock. This study uses a population with an expected rate of return and several
of issuers that are included in the LQ45 risks that can be minimized by dispersing
calculation for the period February 2018 - July risk through various assets (Ferlistya 2014).
2020 with a total sample using the purposive Rational investors will choose the most
sampling method of 31 samples. Based on the efficient portfolio among existing portfolios
optimal portfolio formation of the Markowitz before investing. By determining an
Model, 4 stocks form a portfolio
efficient portfolio, investors can determine
exexpectedeturn of 0.0074 while for portfolio
the optimal portfolio.
risk of 0.0428 and the proportion of funds
formed is BBCA 50.81%, E XCL 9.83%, ICBP There are several types of portfolios, one of
30, 59%, and KL B F 8, 77. The formation of a which is a stock portfolio. A stock portfolio
single index model portfolio obtained 2 optimal is a collection of investment assets in the
portfolio formations with a portfolio return of form of shares, both individual shares and
0.1486 and a risk of 0.0873 while the proportion company shares. Shares registered in The
of funds formed by ANTM was 10.5%, and Indonesia Stock Exchange are classified
BBCA was 89.5%. Based on the results of the into 10 sectors according to industry
study proves that the single index model can classification. These sectors include the

Fadlan Alkindi et.al. Analysis of optimal stock portfolio investment on the LQ45 index using the Markowitz
model and single index model
Agriculture Sector, Mining Sector, Basic The single Index Model

and Chemical Industry Sector, The Single index method assumes that the
Miscellaneous Industry Sector, Consumer rate of return between two or more effects
Goods Industry Sector, Property Sector, will be correlated, that is, they will move
Real Estate and Building Construction, together and have the same reaction to a
Infrastructure Sector, Utilities and single factor or index. Included in the
Transportation, Finance Sector, Trade method (Halim, 2014). The single index
Sector, Services and Investment, and method can be used in determining the
Manufacturing Sector. optimal portfolio by comparing the excess
return to beta (ERB) with the cut-off rate
The Markowitz model (Ci). Excess return to beta (ERB) is the
This Markowitz model can overcome the excess of stock returns over risk-free asset
weakness of random diversification. The returns (risk-free rate) which is called the
assumption that increasing the number of return premium per unit of risk as measured
shares in a portfolio continuously will by beta. The cut-off rate (Ci) is the quotient
provide greater benefits is different from the of the market variance and the return
Markowitz model. This model believes that premium on the stock variance error of the
the addition of stocks continuously in one market variance on the individual sensitivity
portfolio, at a certain point, will further of the stock variance error. The calculation
reduce the benefits of diversification and concept is based on Gruber's (2003)
will increase the level of risk (Tandelilin, calculation method, namely by determining
2010). The Markowitz model introduces a the ranking (sequence) of stocks that have a
portfolio diversification model. Non- high ERB to a lower ERB. The ranking
systematic risk reduction is carried out by aims to determine the excess of stock
diversification so that only systematic risk is returns to risk-free returns per unit of risk.
left behind, known as the insurance Stocks that have excess return to beta (ERB)
principle. The optimal portfolio with the there with or greater than the cut-off point
Markowitz model selected from many (C*) are candidates for optimal portfolio
alternative efficient portfolios can provide a formation.
certain level of return according to the risk
that investors are willing to bear (Ticoh, The LQ45 index
2010). The Markowitz portfolio also The LQ45 index is the market capitalization
provides quite efficient results because it value of the 45 most liquid stocks and has a
has a positive expected return value from large capitalization value, it is an indicator
each portfolio (Supriyadi and Hadmar, of liquidation. The LQ45 index, using 45
2009). The Markowitz model is the first stocks selected based on stock trading
model used to predict the price or return of liquidity and adjusted every six months
securities by using input parameters in the (beginning) February and August). Thus the
form of the expected return of each security, stocks contained in the index will always
the variance of each security and the change. The LQ45 index fluctuates from
covariance between securities (Hunan, year to year but is generally growing. These
2003:102). Portfolio theory with the fluctuations occur as a result of systematic
Markowitz model is based on three risk and non-systematic risk. Systematic risk
assumptions, namely: is a risk that cannot be avoided. Examples
a. Single investment period, for example, of systematic risk are an increase in interest
one-year rates (interest rate risk), an increase in
b. No transaction fees inflation (inflationary risk) and high market
c. Investor preferences are based solely on volatility (market risk). Non-systematic risk
the expected return and risk. (Hartono, is often referred to as specific risk, corporate
2015:312). risk or unsystematic risk. In general, non-

systematic risk can be managed using a model in the formation of an optimal

portfolio. Examples of non-systematic risk portfolio of lq45 shares on the Indonesian
are liquidity risk, financial/credit risk and stock exchange showed that of the 45 shares
operational risk. Two models can be used in in lq45, 13 optimal shares would be
forming an optimal portfolio, namely the purchased by investors.
Markowitz model and the single index
model. Conceptual Framework
Yunita (2018) through his research In the initial stage of investing in stocks,
Markowitz model in optimal portfolio investors need to assess the performance of
formation (case study in Jakarta Islamic each stock seen from the level of risk and
Index) shows that 10 stocks are included in return contained in it. The method used to
the optimal portfolio, including AKRA calculate the level of risk and return is the
(3.4%), ADRO (3.3%), ICBP (4.7%), INCO Markowitz Method and the Single Index
(2.6%), MYRX (13.6%), PTPP (4.9%), Method. By using this method, an optimal
PWON (11.3%), TPIA (1%), UNTR portfolio will be produced. The results of
(15.7%) and UNVR (39.5%). The average the analysis from this study will be
portfolio return rate is 1.22% and the recommended to investors and are expected
portfolio risk is 0.0312, the risk is below the to be information for investors for reference
risk of each stock forming the optimal and consideration in choosing and making
portfolio. Tania (2019) Through his decisions to invest in stocks.
research, the application of the single index
Figure 1. Conceptual Framework
RESEARCH METHOD this study include data on the monthly

The type of data used in this research is closing price of companies that have gone
descriptive research with quantitative data public on the Indonesia Stock Exchange,
analysis techniques and is secondary data, monthly JCI, and interest rates for Bank
namely data that has been published and Indonesia Certificates (SBI). The data was
processed previously. The data collected in obtained from IDX Statistics 2017 – 2020,

the Indonesia Stock Exchange website. The RESULT AND DISCUSSION

research was conducted at the North Value of Return & Market Risk
Sumatra Representative Office of the Determining the value of return and market
Indonesia Stock Exchange from February risk in this study is based on the closing
2020 to July 2020. The population in this price of the LQ 45 Index on the Indonesia
study are all issuers who are included in the Stock Exchange with an observation period
LQ45 calculation for the period February from February 2018 to July 2020, in
2018 - July 2020. Based on the population calculating the market index using market
observations on the LQ45 Index on the realized return (Rm), market expectation
Indonesian Stock Exchange from February return E(R( m)) and market risk (σ2) with
20218 - July 2020 totalling 59 shares. In this the market price index in the LQ 45 Index
study, the author will use the purposive as the input variable.
sampling method and get as many as 31
samples with the following criteria the Table 2. Market Realized Return, Market Expected Return
and Market Risk
company does not take corporate action
during the observation period that directly
affects the stock price on the IDX and
Companies that are consecutively listed in 5
periods of the LQ 45 index.
The data analysis methods used to
determine the optimal portfolio are According to Jogiyanto (2017: 322), the
Markowitz and the Single Index Method. In relationship between market expectations
this study, the data analysis method used and market risk has a positive relationship,
was the Markowitz Model and the the greater the risk of a security or market,
Mathematical Single Index Model. the greater the expected return and vice
versa, this positive relationship only applies
to returns that have not yet occurred, but In
this study, this positive relationship did not
occur so that the value of market
expectations in the LQ 45 Index in Table
4.1 shows a low value for market risk,
which means that a positive relationship
does not always occur.
Calculating changes in stock prices to the

market and changes in prices on the
other hand and calculating unsystematic
risk
After obtaining the value of the return and
market risk described in the previous
section, and then looking for the value of
beta, alpha and residual error variance, this
calculation in addition to market risk and
return, also requires the value of individual
returns and risks of each stock which has
also been determined. described in the
results of the optimal portfolio analysis of
the Markowitz Model, beta is the sensitivity
of a security's return to returns from the
market and beta is used to calculate the

excess return to beta (ERB) and (Bi), the

value of (Bi) is also used to calculate (Ci),
the beta calculation is done by using the
excel program with the slope formula,
which calculates the realized return of stock
and calculates the realized return of the
market index in a certain period. Alpha,
which is the change in market prices for
securities, is used to find the value (Ai)
needed in the calculation (Ci), the alpha
value calculation is carried out using the
excel program with the intercept formula,
while the residual error variance is used to
calculate the value (Ai=Aj), (Bi=Bj) and the
proportion of funds.
It can be seen that the value of alpha (𝛼)

ranges from -0.0349 to 0.1383, if a positive
alpha value indicates that the stock's
performance is better than the market index,
the higher the value of course the better if
the alpha value is negative then indicates
that the performance of the stock is worse
than the market index and the lower it is, the Risk-Free Asset Return
worse it is. beta (𝛽) of each share ranges Risk-free assets are assets that have a
from 0.2081 to 2.2886 if the stock has a beta certain expected return with a risk equal to
value equal to or more than -0.009 then the zero (Jogiyanto: 2008: 301), meaning that if
sensitivity of the stock is the same as the an investor invests his funds in an asset
market sensitivity in other words if the type, the amount of profit that will be
market index decreases by -0.009 or 1% obtained in the future can be known. In this
then the stock is also decreased by 1%. In study, the return on risk-free assets is
the context of this study, the highest beta sourced from Bank Indonesia for the period
value was obtained by PP (Persero) Tbk February 2018 to July 2020, the average
(PTPP) of 2.2886, which means the monthly return value of risk-free assets will
sensitivity level of PP (Persero) Tbk (PTPP) be used as the value (Rf) for the calculation
shares was 228% or above the LQ45 index. of the optimal portfolio formation. the
If the LQ 45 index rose by 1% then PP average growth of risk-free assets from
(Persero) Tbk (PTPP) share price could 2018 to 2020 has increased by a difference
increase by 2.2886 or 228%. The risk (𝜎2) of 0.45%, while the average growth of risk-
in Table 4.2 is the variance of the stock free assets from 2019 to 2020 has decreased
residual error (i) which is also a unique or by a difference of 1.16%.
unsystematic risk, the greater the value of
the variance ei, the greater the unsystematic Optimal Portfolio Forming Stocks
risk that will be borne by investors and vice Based on the results of the study (ERB) the
versa unsystematic risk is a risk that can be highest obtained by Aneka Tambang Tbk of
eliminated by diversifying, the factors at 0.0426 for the highest (Ci) value obtained
this risk such as capital structure, asset by Bank Central Asia Tbk of 0.0039 which
structure, liquidity level, profit level and so will be used as the limiting point (C*)
on. because it has the highest (Ci) value.

The criteria for determining the inclusion of

a security in the optimal portfolio are if the
value (ERB) of a share is equal to or greater
than the limiting point value (C*) so that the
shares that enter the optimal portfolio are
Aneka Tambang Tbk and Bank Central Asia
Tbk. Calculating the Value of Changes in the
Stocks that are included in the optimal Price of a Securities Portfolio to the
portfolio have a positive value, which Market and the Value of Changes in the
means that each individual's expected return Price of a Portfolio on the other hand
is greater than the return on risk-free assets Before calculating the return and risk of a
higher than investing in risk-free securities single-index portfolio, the beta and alpha of
or assets, namely Bank Indonesia the portfolio must be known, the beta and
Certification (SBI), excess return to beta alpha of the portfolio are inputs in
(ERB) is used to measure stock premium calculating the return and risk of the
returns relative to a unit of risk that cannot portfolio, the beta value is also called the
be diversified as measured by beta. (ERB) sensitivity of changes in securities to the
shows the relationship between return and market, while portfolio beta is the beta of
risk which is a determining factor for individual stocks that included in the
investment. formation of the optimal portfolio with the
proportion of funds invested, while the
alpha portfolio is the alpha of individual
securities selected in the optimal portfolio
with the proportion of funds invested
The highest portfolio alpha value (𝛼𝜌) is

Aneka Tambang, Tbk, while the highest
portfolio beta value (𝛽𝜌) is obtained by
Bank Central Asia, Tbk while portfolio
alpha and beta are used in the calculation of
portfolio return and risk, portfolio alpha and
beta are influenced by the proportion of
each fund securities, the greater the
proportion of funds in a security, the greater
The proportion of Funds in Optimal the beta and alpha values of the security
Portfolio Formation portfolio and vice versa.
After determining the selected securities in
the formation of the optimal portfolio, then Return and Risk Portfolio Single Index
determining the proportion of funds that will Model
be invested by investors in each selected
security in the optimal portfolio using a
single index model.

the portfolio return value (𝐸𝑅𝜌) of the not be included in the next calculation,
Single Index Model is 0.1486 while the which means that it does not provide a profit
portfolio risk (𝜎𝜌2) is 0.0873, this means during the period from February 2018 to
that the formation of an optimal portfolio July 2020, it was determined that the 7
using the Single Index Modcan to produce a issuers included in the optimal portfolio
portfolio return of 14.8% with 2 different calculation were as follows.
types of issuers if investors invest their
funds at the level of risk that will be borne
by 8.7%.
Markowitz Model Portfolio Analysis

Determining the value of the return and risk
of each stock using the Markowitz model
can be used to measure realized returns,
expected returns and standard deviations on
each security, realized returns are used to
measure actual profits based on historical
data on stock prices in the past, while Based on the results of research using the
expected returns measure the level of profit Markowitz model, the optimal portfolio
expected obtained in the future using with a portfolio return of 0.0074 while
historical data on stock prices in the past. To portfolio risk is 0.428 and the proportion of
measure the risk borne by investors in the funds formed is BBCA 50.81%, E XC L
future, stand tthirddeviation is used by using 9.83%, ICBP 30.59%, and KL B F 8, 77%
historical data of realized returns and for yield. The Single Index model research
expected return data from each stock, the obtained two stocks forming the optimal
data processed is monthly closing stock portfolio with a portfolio return of 0.1486
price data for the period February 2018 to and a risk of 0.0873 while the proportion of
July 2020, as for return expectations and the funds formed by ANTM was 10.5%, and
risk of each stock that is the research BBCA 89.5%, as for the comparison of the
sample. results of the Markowitz Model and Index
Based on the relationship between return Model research. Single as follows:
expectations and risk according to Jogiyanto
(2017: 322), the greater the risk of a
security, the greater the expected return, the
opposite is also true, namely the smaller the
expected return, the smaller the risk borne,
this positive relationship only applies to
expected returns -ante return (before the
fact) which is for returns that have not
occurred, but in Figure 4.1 a positive
relationship only occurs in BBCA shares,
which means that the relationship between
Based on the comparison of the expected
return and risk does not always show a
return of the Markowitz model and the
positive relationship.
single index model in Table 4.10 the
According to Jogiyanto (2017: 388), the
expected return of the Markowitz model is
optimal portfolio of the Markowitz model is
0.0074 and the portfolio risk is 0.0428,
in the efficient set, which means that the
while the expected return of the Single
stock must show a positive expected return
Index model is 0.1486 and the portfolio risk
value, so in this study stocks that have a
is 0.0873, these results show that portfolio
negative or zero expected return value will
using a single index model in analyzing the

optimal portfolio produces a higher return Merek. Jakarta: PT Gramedia Pustaka

than the Markowitz model with a greater Utama.
risk value. The proportion of shares that are 4. Eko, Umanto. (2008). Analisis dan
more in the Markowitz model thereby Penilaian Kinerja Portofolio Optimal
reducing the level of risk is greater. Saham- Saham LQ-45.Bisnis dan
Birokrasi, Jurnal Ilmu Administrasi dan
CONCLUSION Organisasi, FISIP Universitas Indonesia;
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Singapore: Mc.Graw Hill Inc; p.1.
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6. Jogiyanto. 2017. Teori Portofolio dan
1. Based on the optimal portfolio
Analisis Investasi. Edisi Kelima. BPFE.
formation of the Markowitz Model, 4 Yogyakarta
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return of 0.1486 and a risk of 0.0873 Index Model and Its Application to
while the proportion of funds formed by Construct Optimal Portfolio: An
ANTM is 10.5%, and BBCA is 89.5%, Empirical Study. Great Lakes Herald,
3. Based on the research results prove that Vol.7, No.1.
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profit of 14.86% with a risk level of Selection.The Journal of Finance, Vol.7,
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Markowitz model can generate a Kemampuan Selectivity dan Market
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portfolio risk of 4.28% not providing Indonesia.
12. Nancy, M.Szigethy. (2012). Investment
optimal returns because the expected
Bulletin for Endowment and Foundation
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Community.The NMS Exchange. Ni
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Asset Return Rate. Penentuan Portofolio Optimal dengan
Model Markowitz pada Saham Perbankan
Conflict of Interest: None di Bursa Efek Indonesia
13. Priyo.P, Eko; Nugraha, Ubaidillah; Arlina,
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******

Effects of Regional Financial Independence, Total

Assets, Intergovernmental Revenue and
Inspection Findings on Financial Performance
with Capital Expenditure as Moderating Variable
in Provincial Government of North Sumatera
Windy Syafira Lubis1, Erlina2, Sirojuzilam Hasyim3
1,2,3
Department of Accounting, Faculty of Economics and Business Universitas Sumatera Utara, Indonesia
Corresponding Author: Windy Syafira Lubis
ABSTRACT Keywords: Regional Financial Independence,

Total Assets, Intergovernmental Revenue, Audit
This study aims to determine and analyze how Findings, Local Government Financial
the effect of regional financial independence, Performance, Capital Expenditure.
total assets, intergovernmental revenue, and
audit findings on the financial performance of INTRODUCTION
local governments in North Sumatra Province. Government Regulation Number 12 of
In addition, this study also aims to determine 2019 explains that Regional Financial
whether capital expenditure can be used as a Management is all activities that include
moderating variable in the research model.
planning, implementation, administration,
This type of research is causal associative
research that uses a quantitative approach. The
reporting, accountability, and supervision of
population in this study were all district/city regional finances. Regional financial
governments in the Province of North Sumatra, management that has been carried out
consisting of 25 regencies and eight cities. The correctly following government regulations
number of observation samples in this study was can improve the region's economic
165 data. Meanwhile, the data analysis performance.
technique used in this research is panel data Regional autonomy can be said to be
regression and moderating test carried out with successful if it cannot be separated from the
the help of Eviews software. performance of the Regional Government
The results of this study indicate that regional in managing finances independently, as
financial independence and intergovernmental
expected, and does not violate the
revenue have a positive and significant effect on
the financial performance of local governments.
applicable laws and regulations. The
Meanwhile, the audit findings have a negative management is carried out in an integrated
and significant impact on the financial system embodied in the APBD, which is
performance of local governments. Other results annually stipulated by regional regulations
in this study indicate that capital expenditure (Government Regulation Number 12 of
can moderate the effect of regional financial 2019)
independence and total assets on the financial Local government financial performance is
performance of local governments in North one measure of a region's ability. The form
Sumatra Province. of assessment is in the form of financial
ratio analysis which is formed from the
elements of the Regional Head's

Windy Syafira Lubis et.al. Effects of regional financial independence, total assets, intergovernmental revenue
and inspection findings on financial performance with capital expenditure as moderating variable in provincial
government of North Sumatera
accountability report in the form of an Sumatra Province deserves to be called the
APBD report (Halim, 2012). Financial largest Province in Indonesia after West
performance analysis is carried out to assess Java, East Java, and Central Java. So the
past performance by conducting various local government, especially the North
analyzes to obtain a financial position that Sumatra provincial government, needs to
represents the reality of the entity and its know what variables can affect the low
performance potentials that will be achievement of the financial performance.
sustainable. Several things are thought to affect the
North Sumatra Province is the largest financial performance of local governments,
Province outside Java in terms of one of which is regional financial
population, which has a very strategic role independence. Regional financial
in the western part of Indonesia as a center independence means that the government
of economic activity, especially plantations, can carry out its financing and financial
industry, trade, mining, tourism, finance, accountability and implement it within the
and services. North Sumatra is the Province principle of decentralization. A region is
with the fourth largest population in considered independent if the use of
Indonesia, after the provinces of West Java, Regional Original Income in regional
East Java, and Central Java. development is greater than transfer funds.
This independence ratio also shows the role
of the community in regional development.
The higher the independence ratio, the
higher the part of the community in paying
retribution and local taxes, which are the
most crucial components of Regional
Original Income. With the low dependence
between local governments on the central
government, an area can be considered
independent to produce better financial
performance.
Source: Directorate General of Fiscal Balance, Ministry of
Finance (2022) The phenomena that occur regarding the
Figure 1. Phenomena About Financial Performance of North
Sumatra Province 2016-2020 financial independence of local
governments in North Sumatra Province are
The graph above shows that in 2016 the as follows:
financial performance of North Sumatra
Province obtained excellent results. Then in
2017, the financial performance increased
and reached 107.35. However, in 2018
financial performance experienced a
significant decline compared to the previous
year, 2017. Furthermore, in 2019 financial
performance also declined to 75.97.
Meanwhile, in 2020 the financial
performance of North Sumatra Province
experienced a slight increase at 92.69.
By this phenomenon, it can be concluded Source: Directorate General of Fiscal Balance, Ministry of
Finance (2022)
that the financial performance of North Figure 2. Phenomena of Regional Financial Independence
Sumatra Province in recent years has shown Level North Sumatra Province 2016-2020
no optimal results. It needs to be addressed
and improved in the following years. North The graph above illustrates that the level of

regional independence for North Sumatra The graph above clearly shows that the total
Province in 2016 was 90.32, which then assets owned by the Province of North
decreased significantly to 76.11 in 2017, Sumatra appear to have decreased in 2019
then increased slightly in 2018, and again and 2020. It causes a decline in financial
reduced for the following year, namely performance, as shown in Figure 1.1. This
2019-2020. Associated with the same phenomenon strengthens the theory that
phenomenon experienced by the financial total assets can affect the financial
performance of North Sumatra Province, as performance of local governments.
shown in Figure 1, it can be seen that the Furthermore, the variable that is thought to
decline in financial independence that be able to affect the financial performance
occurs will affect the decline in financial of local governments is intergovernmental
performance that the Province of North revenue. Intergovernmental revenue or
Sumatra also experiences. balancing funds is one source of regional
The following variable that is thought to be revenue that significantly contributes to the
able to effect the financial performance of provincial revenue budget.
local governments is total assets. Total Intergovernmental revenue is intended to
assets describe the size of the local assist regions in funding their authority,
government, which can be seen from the reduce the gap in government funding
number of natural resources owned by the sources between the center and areas, and
area. The larger the size of an area, the reduce the funding gap between regions.
greater the assets owned by the local
government. Assets owned by a region will
impact the performance of local
governments in providing services and
facilities needed by the community.
Therefore, regions with large total assets
are expected to provide operational
convenience for the government in carrying
out their duties and functions as public
servants.
It is also inseparable from the phenomenon
that occurs regarding total assets in North Source: Directorate General of Fiscal Balance, Ministry of
Sumatra Province, which shows that there Finance (2022)
Figure 4. Phenomena of Intergovernmental Revenue North
has been a significant decline for the 2019 Sumatra Province 2016-2020
and 2020 fiscal years, as shown by the
following graph: Based on the graph above, it can be seen
that the intergovernmental revenue of North
Sumatra Province seems to have decreased
in 2018 compared to 2017. Then it increased
slightly in 2019 and 2020. It is suspected as
the cause of the decline in financial
performance, as shown in Figure 1.1. This
phenomenon strengthens the theory that
intergovernmental revenue can affect the
financial performance of local governments.
The last variable that is thought to affect
local government financial performance is
Source: Directorate General of Fiscal Balance, Ministry of the audit findings. The findings on the
Finance (2022)
Figure 3. Phenomena of Total Assets of North Sumatra
examination of financial statements are a
Province 2016-2020 form of accountability of the local

government to the DPRD, which is very achievement of the implementation of an
important in assessing the government's activity/program/policy in realizing the
financial performance based on the prepared goals, objectives, mission, and vision of the
financial statements. The Supreme Audit organization (Wana and Juniartika, 2021).
Agency Regulation Number 1 of 2007 states In general, performance is an achievement
that audit findings can be in the form of achieved by the organization in a certain
internal control weaknesses, fraud, period. All organization activities must be
irregularities, or non-compliance with recorded and measured to measure the
statutory provisions that have the potential success/failure of an organization.
to harm state finances. Thus, audit findings Minister of Home Affairs Regulation
that are the results of BPK audits can affect Number 77 of 2020 states that performance
the financial performance of local is a measure of success achieved from
governments. planned programs, activities, and sub-
To distinguish it from Wahyudin's (2020) activities, including inputs, outputs, and
research, the researcher added another results. Meanwhile, local government
independent variable, Total Assets, and financial performance is the level of
Examination Findings. In addition, to add achievement of work in regional finance,
novelty to this study, the researchers also which includes provincial revenues and
added a moderating variable which is expenditures using financial indicators
thought to be able to moderate the effect of determined through a policy or statutory
the independent variable on the financial provision for one budget period.
performance of local governments. The Financial performance in this study was
moderating variable used is capital measured using the effectiveness ratio. This
expenditure. regional financial effectiveness ratio shows
Capital expenditure is the total realization of the ability of local governments to realize
all development expenditures, such as local revenue compared to the target set
infrastructure and direct and indirect based on the real potential of the region
expenditures. Capital expenditure includes (Sari et al., 2020). The ability of the areas to
land, buildings, equipment and machinery, carry out their duties is categorized as
roads, irrigation and networks, and other effective if the ratio achieved is at least
fixed assets. Local governments must be 100%. The higher the effectiveness ratio,
able to allocate capital expenditure properly the better the area's ability to describe.
because capital expenditure is one step for
local governments to provide services to the Regional Financial Independence
public (Abba et al., 2015). Financial independence in the region is
By the explanation of the phenomenon, the the ability of local governments to
results of previous research, and the finance their government activities,
background, the study entitled " Effects of accountability, and development, as well
Regional Financial Independence, Total as services provided to people who have
Assets, Intergovernmental Revenue And paid levies and taxes, which are sources
Inspection Findings on Financial of income that are needed by the region.
Performance With Capital Expenditure As The size of locally-generated revenue
Moderating Variable In Provincial shows regional financial independence
Government of North Sumatera" becomes compared to regional income from other
interesting to do. sources, such as central government
assistance or loans.
LITERATURE REVIEW Regional financial independence can be
Local Government Financial used to see whether or not a region can
Performance carry out its duties properly or not, as
Performance is a description of the well as to see how much the region is

dependent on sources of funds other than Intergovernmental Revenue
those that can be generated on its own. Intergovernmental revenue (balancing
An area can be considered independent if fund) is a fund sourced from APBN
the site can finance government activities revenues allocated to regions to fund
and development independently without regional needs in implementing
relying on funds from the central decentralization. It aims to create a
government. Regional independence is financial balance between the central and
one of the goals of regional autonomy. local governments. Intergovernmental
The ratio of regional financial revenue is income received by local
independence in this study is seen from governments from external sources and
the total local revenue compared to the does not require any repayment. To
total central assistance and loans support the implementation of national
obtained. The higher the ratio of regional development, the government provides an
financial independence, the lower the opportunity to implement regional
level of dependence of the provincial autonomy by issuing Law Number 12 of
government on the central government. 2008.
Conversely, the lower the ratio of Intergovernmental revenue is intended to
regional independence, the higher the assist regions in funding their authority
regional dependence on central and reduce the gap in government sources
government assistance. to fund between the center and the
regions. Moreover, balancing funds can
Total Assets empower and improve the capacity of the
Total assets describe the size of the local regional economy, create a fair,
government, which can be seen from the accountable payment system, and provide
number of natural resources owned by the regional financial certainty from the
area. The larger the size of an area, the region concerned. Intergovernmental
greater the assets of the local government revenue is not only intended to assist
(Siregar, 2020). Assets owned by a region regions in funding development but also
will impact the performance of local to reduce government funding sources
governments in providing services and inequality between the center and the
facilities needed by the community. provinces.
Therefore, regions with large total assets If the realization of regional expenditure
are expected to provide operational is higher than regional income, a deficit
convenience for the government in will occur. Therefore, to cover the
carrying out their duties and functions as shortage of provincial spending, the
public servants (Aulia and Rahmawaty, central government transfers funds by
2020). balancing funds with local governments.
Ease of operation will provide The greater the transfer of balancing
smoothness in obtaining original regional funds received from the central
income, simultaneously encouraging government, the more dependent it is on
regional facilities and infrastructure the central government to meet regional
development. Regional development needs. It will reduce the regional financial
carried out through the construction of performance.
facilities and other infrastructure can help
and support the community to be more Audit Findings
productive to have a good impact on The financial statements need to be
regional development (Maulina et al., audited by the Supreme Audit Agency to
2021). improve the quality of transparency and
accountability of government financial
reports. State financial audits conducted

by the Supreme Audit Agency consist of purchase price/build of the investment
financial audits, performance audits, and plus all spending related to the
audits with specific objectives. The procurement/development of the asset
examination results conducted by the until the asset is ready for use. Regional
Audit Board are in the form of opinions, Heads set a minimum capitalization limit
findings, conclusions, or to impose capital expenditures. In
recommendations (Djuniar et al., 2021). addition to meeting the minimum limit,
The results of the examination in the form budget expenditures for goods
of the Audit Board audit findings are expenditures must provide benefits for
cases found by the Audit Board in local more than one accounting period that is
government financial reports for not routine (Gede, 2019). This provision
violations committed by a region against is in line with Government Regulation 71
internal control provisions as well as of 2010 concerning Government
against applicable laws and regulations Accounting Standards, especially PSAP
(Ditasari and Sudrajat, 2020). The Number 7, which regulates accounting
findings on the examination of financial for fixed assets.
statements are a form of accountability of
the local government to the Provincial Framework
Legislative Council, which is very
important in assessing the accountability
of financial reports prepared by the
government.
The Audit Board Regulation Number 1 of
2007 concerning Standards for State
Financial Audit states that audit findings
can be in the form of internal control
weaknesses, fraud, irregularities, or non-
compliance with the provisions of laws
and regulations that can harm state
finances. Thus, audit findings that are the
Figure 5. Framework
results of The Audit Board audits can
affect the financial performance of local
H1: Regional Financial Independence has
governments.
a positive on Local Government Financial
Performance.
Capital Expenditure
H2: Total Assets have a positive effect on
The capital expenditure, as referred to in
Local Government Financial
the Regulation of the Minister of Home
Performance. H3: Intergovernmental
Affairs Number 77 of 2020, is used for
Revenue has a positive impact on Local
expenditures carried out in the context of
Government Financial Performance.
procuring tangible fixed assets that have a
H4: Audit Findings Have a negative effect
practical value of more than 12 (twelve)
on Local Government Financial
months to be used in government
Performance.
activities. Meanwhile, according to PSAP
H5: Capital Expenditure moderates the
Number 2, capital expenditures are
effect of Regional Financial Independence
budgetary expenditures for acquiring
on Local Government Financial
fixed and other assets that provide
Performance.
benefits for more than one accounting
H6: Capital Expenditure moderates the
period.
effect of Total Assets on Local
The value of tangible fixed assets
Government Financial Performance.
budgeted in capital expenditure is the

H6: Capital Expenditure moderates the distributed. Normality tests can be detected
effect of Intergovernmental Revenue on from the method developed by Jarque Bera
Local Government Financial (JB). If the probability value of Jarque Bera
Performance. (JB) > 0.05, then the data has been normally
H7: Capital Expenditure moderates the distributed. However, if the probability
effect of Audit Findings on Local value of Jarque Bera (JB) < 0.05, then the
Government Financial Performance. data is not normally distributed. This study's
normality testing results can be seen based
MATERIALS & METHODS on the following output results.
This type of research is causal associative
24
research that uses a quantitative approach. Series: Standardized Residuals
Sample 2016 2020
According to Sugiyono (2015), 20
Observations 165
quantitative research is a research method
16 Mean -1.35e-18
based on the philosophy of positivism, Median 0.009880
used to examine certain populations or 12
Maximum 0.591365
Minimum -0.488911
samples, data collection using research Std. Dev. 0.189984
instruments, and data analysis are 8 Skewness 0.255297
Kurtosis 3.280626
quantitative/statistical, intending to test 4
Jarque-Bera 2.333770
predetermined hypotheses. This study Probability 0.311335
uses 4 (four) independent variables (X), 1 0
-0.4 -0.2 0.0 0.2 0.4 0.6
(one) dependent variable (Y) and 1 (one) Source: data processed by Eviews
moderating variable (Z). Figure 6. Normality Test Results
The independent variables consist of

regional financial independence, total As seen in the picture above, it can be seen
assets, intergovernmental revenue, and that the probability value of Jarque Bera
audit findings. The dependent variable is (JB) is 0.311, which is greater than 0.05
the financial performance of the Regional (0.311 > 0.05). So it can be concluded that
Government, and the moderating variable the data used in this study were normally
is Capital Expenditure. distributed.
The population used in this study were all
regencies/cities throughout North Sumatra 2. Multicollinearity Test
from 2016 to 2020. The population of this The results of multicollinearity testing in
study was all district and city this study can be seen based on the
governments in the Province of North following results.
Sumatra, amounting to 33 of which 25 Table 1. Multicollinearity Test with VIF
regencies and eight cities. The sample in Variable Centered VIF
this study was selected using a purposive X1 3.615606
X2 3.917418
sampling method—the determination of X3 1.993264
the research sample using specific X4 1.057736
Source: data processed by Eviews
considerations or criteria. These
provisions obtained 33 regencies and
Based on the table above, it can be seen the
cities as samples in this study. So the
value of the correlation coefficient between
number of observations used in this study
the independent variables used in this study.
was 33 × 5 = 165.
Based on these results, it can be concluded
that there is no multicollinearity problem
RESULT
because the VIF value produced by each
A. Classic assumption test
independent variable is smaller than 10. So
1. Normality test
this research model is free from
The normality test aims to determine
multicollinearity symptoms.
whether each variable is normally

3. Autocorrelation Test 1. Coefficient of Determination Test
The autocorrelation test shows the The results of the coefficient of
correlation between the members of the determination test can be seen in the
observations ordered by time or space. The following table:
autocorrelation hypothesis testing in this
study is as follows: Table 4. Coefficient of Determination Test Results
R-squared 0.497833
H0: no serial correlation (serial Adjusted R-squared 0.356599
correlations). S.E. of regression 0.215047
H1: serial correlation occurs (serial
correlations).
Based on Table 5.10, the value of R Square
Table 2. Autocorrelation Test Results (R2) is 0.4978, which means 0.4978 or
Obs*R-squared 3.927099 (49.78%) independent variables, namely
Prob. Chi-Square (2) 0.1404
Source: data processed by Eviews regional financial independence, total assets,
intergovernmental revenue, and audit
Based on the autocorrelation test of the findings, can explain the financial
Breusch-Godfrey Serial Correlation LM performance of Regency/City governments
Test, it can be seen that the probability in the Province. North Sumatra. At the same
value of Obs*R-square is 0.1404 > 0.05, so time, the remaining 50.22% is effected or
H0 is rejected, which means that there is no explained by other variables not included in
autocorrelation problem in this research this research model.
model.
2. Simultaneous Hypothesis Test Results
4. Heteroscedasticity Test (Statistical Test F)
This heteroscedasticity test is used to The F test is used to see the effect of
determine whether there is variance regional financial independence, total assets,
heteroscedasticity in the regression model intergovernmental revenue, and audit
from the residual of one observation to findings on the financial performance of
another. If the variance from one local governments simultaneously.
observation to another is the same, it is
Table 5. Simultaneous Test Results
called homoscedasticity. Meanwhile, if the F-statistic 3.524871
variance is different, it is called Prob(F-statistic) 0.000000
heteroscedasticity. Source: data processed by Eviews
Table 3. Heteroscedasticity Test Results Based on the above, it can be seen that the
Variable Probability results of the simultaneous test (statistic
X1 0.1111 F) indicate that the significant value
X2 0.6283
X3 0.7246 produced is 0.000 less than 0.05. These
X4 0.1309 results indicate that all independent
variables, namely regional financial
independence, total assets,
The probability value <0.05 indicates a
intergovernmental revenue, and audit
heteroscedasticity problem in the research
findings together (simultaneously)
model. Meanwhile, based on the table
significantly effect the dependent
above, it can be seen that the probability
variable, namely the financial
value generated by each independent
performance of local governments in
variable is greater than 0.05. So it can be
North Sumatra Province. The test is
concluded that the data used in this study is
continued with the t-test (partial test) to
free from heteroscedasticity symptoms.
see what independent variables partially
affect the financial performance of
B. Hypothesis Testing

district/city local governments in North financial performance of the district/city
Sumatra Province. government in North Sumatra Province.
3. Results of Partial Hypothesis 4. Test Moderated Regression Analysis

Testing (Test Statistical t) Moderated Regression Analysis (MRA) test
The t-statistic test shows how much one was conducted to see whether the
independent variable's effect individually moderating variable could strengthen or
explains the dependent variable. weaken the effect of the independent
Acceptance or rejection of the hypothesis variable on the dependent variable.
in a study can be done with the following
Table 7. Interaction Test Results Moderating Variables
criteria: Variable Coefficient t-Statistic Probability
1. If the significance value of t statistic > X1*Z 1.156707 2.084975 0.0391
0.05, then H0 is accepted. It means that an X2*Z -0.483711 -3.831749 0.0002
X3*Z 0.243482 0.283045 0.7776
independent variable does not effect the Source: data processed by Eviews
dependent variable.
2. If the statistical significance value of t Based on the table above, it can be seen that
< 0.05, then H0 is rejected. It means that each of the interactions between the
an independent variable individually moderating variables, namely capital
affects the dependent variable. expenditures, and the independent variables,
Table 6. Partial Test Results
namely regional financial independence,
Variable t-Statistic Probability
total assets, intergovernmental revenue, and
C 1.242583 0.2163 audit findings. Based on these results, it can
X1 5.541723 0.0000 be concluded that the interaction of capital
X2 -1.592212 0.1138
X3 4.643150 0.0000
expenditure (moderating variable)
X4 -2.045325 0.0429 significantly effects local governments'
Source: data processed by Eviews financial performance, namely the
interaction of X1*Z and X2*Z. At the same
Regional financial independence (X1) has a time, the X3*Z interaction is not significant
significance value of 0.0000 < 0.05. These at the 5% level.
results indicate that regional financial X1*Z, the interaction between capital
independence (X1) partially effects the expenditure and regional financial
financial performance of district/city independence, has a significance value of
governments in North Sumatra Province. 0.0391, which is smaller than 0.05. X2*Z,
Total assets (X2) have a significance value the interaction between capital expenditure
of 0.1138 > 0.05. These results indicate that and total assets, has a significance value of
the total assets (X2) partially do not 0.0002, which is smaller than 0.05. X3*Z,
significantly affect the financial the interaction between capital expenditure
performance of the district/city government and intergovernmental revenue, has a
in North Sumatra Province. significance value of 0.7776, greater than
Intergovernmental revenue (X3) has a 0.05. With these results, it can be concluded
significance value of 0.0000 < 0.05. These that capital expenditure can moderate the
results indicate that intergovernmental effects of regional financial independence
revenue (X3) partially effects the financial and total assets on the financial performance
performance of district/city governments in of Regency/City regional governments in
North Sumatra Province. North Sumatra Province. But not with
The examination findings (X4) have a intergovernmental revenue.
significance value of 0.0429 < 0.05. These
results indicate that the audit findings (X4) CONCLUSION
partially also significantly effect the The results of this study provide several
conclusions that can be drawn based on the

discussion of the problems that have been Province. These two factors will
carried out. The following are the determine the optimization of local
conclusions that the author has summarized government financial performance. So
in this study: it is hoped that the district/city
1. Regional financial independence has a government in North Sumatra Province
positive and significant effect on the will maintain the level of regional
financial performance of Regency/City financial independence and the
local governments in North Sumatra intergovernmental revenue they have.
Province. In addition, the examination findings
2. Total assets have no significant effect also have a significant effect but in a
on the financial performance of negative direction. It means that if the
district/city governments in North audit findings obtained by the BPK are
Sumatra Province. increasing, the financial performance
3. Intergovernmental revenue positively of the regional government is described
and significantly effects the financial as decreasing. For this reason, the
performance of district/city district/city government in North
governments in North Sumatra Sumatra Province must also improve
Province. its internal control system so that the
4. The audit findings negatively and audit findings produced are decreased.
significantly impact the financial In the end, the local government's
performance of district/city financial performance will also
governments in North Sumatra increase.
Province. 2. Future research is expected to re-
5. Capital spending can moderate the examine the effect of other variables
effects of regional financial that can affect the financial
independence on the financial performance of the district/city
performance of Regency/Municipal government in North Sumatra
governments in North Sumatra Province. Some variables that can be
Province. studied include audit opinions,
6. Capital spending can moderate the economic growth, legitimate local
effect of total assets on the financial revenues, and SiLPA.
performance of district/city 3. In the results of this study, it can be
governments in North Sumatra seen that capital expenditure cannot be
Province. used as a moderating variable in the
7. Capital spending cannot moderate the effect of intergovernmental revenue on
effect of intergovernmental revenue on the financial performance of
the financial performance of district/municipal governments in
Regency/City local governments in North Sumatra Province. So that
North Sumatra Province. further research is expected to re-
examine the moderating variable of
SUGGESTION capital expenditure in other Provincial
Based on the conclusions of this study, Governments of Indonesia to determine
suggestions can be given whether capital expenditure can be
which are as follows: used as a moderating variable on the
1. In the study results, it can be seen that financial performance of local
regional financial independence and governments as a whole.
intergovernmental revenue have a
positive and significant effect on the Conflict of Interest: None
financial performance of Regency/City
local governments in North Sumatra

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******

Case Study E-ISSN: 2349-9788; P-ISSN: 2454-2237
Solutions for Tourism of Chau Giang Brocade Weaving

Village, An Giang Province
La Nguyen Thuy Dung1, Le Kim Thanh1, Nguyen Quoc Nghi1
1
School of Economics, Can Tho University, Vietnam
Corresponding Author: Nguyen Quoc Nghi
ABSTRACT development project" in A Giang Province,

there are still aspects to be explored to develop
Craft village tourism plays an essential role in the local tourism sustainably. Therefore, the
preserving and promoting local cultural values, authors applied the service provider-oriented
contributing to local socio-economic development.
approach to finding out solutions to develop
This study aims to analyze the actual situation and
propose solutions to develop tourism in Chau Giang
Chau Giang brocade weaving village tourism
brocade weaving village. The study collected data towards sustainability.
from 67 households in Chau Giang brocade
weaving village. From the actual survey results and 2. RESEARCH METHODOLOGY
expert consultation, the study suggests several Research data: This study uses primary data
solutions for tourism development in Chau Giang collected by stratified random sampling based
craft village. (1) Strengthen the connection between on criteria such as the type of tourism services
tourism service suppliers with local authorities and provided and demographic characteristics. The
travel agencies. (2) Invest in designing new and direct interview method is used to approach 67
unique products to attract more tourists. (3) households providing tourism services in Chau
Improve the quality of tourism services by the
Giang brocade weaving village.
professionalism of the community. (4) Develop
suitable marketing strategies.
Analytical method: The research team uses a
Keywords: solution, Chau Giang brocade weaving descriptive statistics method with values such
village, craft village tourism. as mean, frequency, and proportion to reflect
the reality of tourism services provision in
1. PROBLEM STATEMENT Chau Giang brocade weaving village. At the
The Mekong Delta region has great potentials same time, the key informant panel (KIP) is
for tourism development, especially craft applied to identify the shortcomings and
village tourism. Most craft villages in the limitations, thereby proposing practical
Mekong Delta locate in rural areas and each solutions for the development of tourism in the
village has its local characteristics (Nghi, village.
2010). The province of A Giang holds the
leading role in exploiting the potential of craft 3. RESEARCH RESULTS AND
village tourism, especially Chau Giang brocade DISCUSSION
weaving village. The development of Chau 3.1. Status of tourism service providers
Giang brocade craft village tourism has Reasons for the participation in tourism
decreased the high number of idle farmers in services provision: Most households in craft
the region. Also, it increases the income for the villages participate in providing tourism
Cham community in the craft village, thereby services because they expect to increase their
preserving the Cham culture in the area of four incomes (86.56%). This is their main purpose
ethnic groups (Nghi and Phung, 2010). to offer tourism services because currently, the
Although the local authority has supported the income sources of the Cham community have
village by the "Craft village tourism low diversity (Nghi, 2013). The second-most
La Nguyen Thuy Dung et.al. Solutions for Tourism of Chau Giang Brocade Weaving Village, An Giang Province
common reason is that the residents follow tourism activities because of the family's
their community movements (29.41%). The occupation accounts for 26.86%. Improving
Cham community lives with a solidarity spirit, knowledge is also a reason for the community
so they tend to participate in social campaigns. to participate in providing tourism services
The number of households participating in (22.39%).
Table 1: Reasons for the participation in tourism services

Reason Frequency (household) Percentage (%)
Increase income 58 86.56
Follow the community’s movements 20 29.41
Inherit their family business 18 26.86
Improve knowledge 15 22.39
Time of participation: Tourism organization support of local authorities, the number of

activities in Chau Giang brocade weaving households participating in tourism services
village formed a long time ago. However, the has instantly increased. The residents who have
number of households providing tourism a participation time lower than four years
services at the beginning was small (8.96%). In account for 67.16%, from four to eight years
recent years, thanks to the fast development of accounts for 23.88%.
An Giang's tourism industry, along with the
Table 2: Participation time in providing tourism services

Participation time Frequency (household) Percentage (%)
Less than 4 years 45 67.16
From 4 to 8 years 16 23.88
More than 8 years 6 8.96
Conditions for participation: The conditions entertainment, relaxation, and must ensure
for households in the craft villages to basic living conditions and security for visitors.
participate in providing tourism services Besides, households that provide tourism
depend mainly on four factors. They include services have to meet the education level and
the traditional business of their families, information ability condition. In which,
characteristics of the apartment, facilities in the family's traditional occupation is the most
apartment, and social relationships. These concerning factor in the provision of tourism
factors are appropriate because the tourism services.
industry's goal is to meet the needs of
Table 3: The importance level of conditions to participate in providing tourism services

Participation condition Min Max Mean Standard deviation
Family traditional occupation 2 5 3.94 0.924
Characteristics of the house 2 5 3.87 0.847
Facilities in the house 2 5 3.84 0.845
Social relationship 1 5 3.70 0.890
Education level and information ability 1 5 3.32 0.856
Note: 1=Very unimportant, 5 = Very important
Benefits of participation: According to survey workers. The remaining households consider

data, 89.55% of households believe that the benefits of the participants include support
participating in tourism services helps create policies from local authorities (26.86%),
more income and improve their lives. Also, training courses on tourism knowledge and
56.72% of households confirm that tourism skills (11.94%), high qualifications and
services create more jobs for household understanding (22.39%).
Table 4: Benefits of participating in tourism activities
Benefit Frequency (household) Percentage (%)
Increase income 60 89.55
Create jobs 38 56.72
Get support from local authorities 18 26.86
Improve knowledge and skills 15 22.39
Take part in training courses 8 11.94

Support policies of the local government: communication skills with tourists, tourists'
The local authorities offer many support psychology, cooking skills (47.76%).
policies for households as follows. (1) Furthermore, the government also has
accessing official credit sources to develop policies to promote the craft village and
the traditional occupation or improve improve the area's infrastructure for
household facilities (56.72%). (2) open community tourism development (41.79%).
training classes on tourism knowledge,
Table 5: Local authority’s support policies

Support policy Frequency (household) Percentage (%)
Loans for tourism development 38 56.72
Training classes on tourism knowledge 32 47.76
Promote tourism image and improve facilities 28 41.79
Relationship with tour operators: The what community tourism is, and what
relationship between tour operators and the standards that a tourism business needs.
households providing tourism services is Secondly, the connection between
mainly cooperation and profit sharing households, local authorities, and tour
(56.72% and 41.79%). Travel agencies sign operators is still fragmented. Even though
contracts directly with people and divide households are familiar with tour operators
profits according to the agreement between and have good relations with the local
parties. The tour operators offer few courses government, they have not combined the
on skill and professional training for the advantages and strengths of the parties
community (17.91%). The rest of the effectively. As a result, the cooperation does
households offer their services without not bring high efficiency, not ensuring long-
cooperating with tour opẻators (13.43%), term cohesion.
usually selling souvenir items. Thirdly, the Chau Giang brocade village
carries the characteristics of Cham culture
3.2. Limitations in tourism development with strange and unique lines of patterns.
of Chau Giang brocade weaving village They have a variety of brocade products
The analysis results on the current situation such as sarongs, shawls, hats, coats, etc.
of the Cham community's tourism However, the development of tourism also
development, the research team uses the key requires creativity and suitability to meet the
informant panel to identify some limitations needs of different tourist groups. Therefore,
in the tourism development process of Chau diversifying tourism products is essential to
Giang brocade weaving villages. increase income, attract and retain tourists.
Firstly, the professionalism and Fourthly, the promotion activities for the
communication skills of households craft village and craft tourism are still not
involved in providing tourism services are focused on by households, and the local
still limited. The quality of human resources tourism's marketing strategies are
is a core issue that needs to be focused on in ineffective. Most households do not pay
any field, especially in the tourism sector. attention or understand how to invest in
The current situation shows that most marketing campaigns to promote the village.
households do not communicate in foreign The local tourism industry has taken action
languages, while visitors to the craft village on promotion programs for Chau Giang
are mainly international tourists. Therefore, brocade weaving village tourism; however,
households involved in tourism services the frequency and the depth of programs
must have a basic level of foreign languages have not been much concerned due to the
to understand and meet the needs of tourists. limited resources. This somewhat reduces
Not only the limitation in foreign languages, the effectiveness of the program.
but households have a low understanding of

3.3. Solutions for tourism development of catch the needs of tourists. Thus, to develop
Chau Giang brocade weaving village sustainable craft village tourism, training the
With the above limitations, several solutions on-site human resources should be
are suggested to develop a sustainable considered. Training units should offer
tourism system in Chau Giang brocade easy-to-understand and accessible training
weaving village. programs for households. Besides training
classes, the training unit also needs to open
Firstly, strengthen the linkage of the periodic seminars to help the community
household providing tourism services with adapt to the change in the tourism market.
the local government and travel agencies. Also, the community should enhance soft
The local authorities need to support people skills in tourism services such as
with infrastructure and facilities, to act as a presentation skills, management skills,
"bridge" that connects households and travel organizing skills, and cooking methods
agencies inside and outside the province. following food safety and hygiene
Besides, administration units should ensure standards. It is important to focus on
safety and security for all tourists. cultural value preservation and
Furthermore, promoting the image of craft environmental protection issues.
village tourism and cooperating with tour Fourth, strengthen the promotion activities
operators to open training classes for on craft village tourism. The promotion of
households are suitable solutions. In the tourism image of Chau Giang brocade
addition to this, travel companies need to village should be implemented
cooperate with households to find potential professionally. The community can
partners. This also helps the residents easily introduce it through guidebooks, the
carry out product promotion programs. This internet, or travel fairs. For tourists to easily
“tripartite” association may create a basis access the complete and detailed tourism
for the stable development of craft village information, the service providers should
tourism, avoiding the spontaneity which build an impressive and effective marketing
affects the village’s image. plan. Besides, travel agencies and
Secondly, invest in designing new and households should actively participate in
unique products, increasing product programs to promote and build a tourism
identification. Households involved in brand for Chau Giang brocade weaving
providing tourism services need to pay more village. The whole promotion process
attention to the activities to serve tourists. requires the cooperation of all stakeholders
These programs have to be novel and in the tourism industry to bring the image of
attractive, avoiding duplication among Chau Giang to domestic and overseas
households. Moreover, creating typical tourists.
tourist products should go along with
psychological characteristics and the needs 4. CONCLUSION
of tourists. Tourism products have to be The sustainable development of Chau Giang
diverse and attractive while remaining the brocade weaving village tourism not only
core cultural values of the Cham ethnic brings economic benefits to the community
community. but also preserves the traditional cultural
Thirdly, improve the quality of tourism values of the Cham ethnic group. However,
services based on the professionalism of this is a complex problem to solve. With the
the community. Currently, people's solutions proposed in this study, the
perception of the economic and social research team expects the "involvement" of
benefits of community-based tourism all stakeholders, so that the tourism brand of
models is still vague. Therefore, most Chau Giang brocade weaving village will be
households have not designed appropriate more and more popular with travelers.
activities and services because they do not

Declaration by Authors 3. Nghi, N. Q., & Phung, P. V. (2010).

Acknowledgement: None Developing cultural tourism of Cham village in
Source of Funding: None An Giang Province. Viet Nam Tourism Review,
Conflict of Interest: The authors declare no 12, 56-57.
conflict of interest.
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tourism in the Mekong Delta. Viet Nam Tourism Solutions for Tourism of Chau Giang
Review, 9, 17-18. Brocade Weaving Village, An Giang
2. Nghi, N. Q. (2013). Factors affecting Province. International Journal of Research
the satisfaction of the residential community and Review. 2022; 9(11): 427-431. DOI:
participating in providing community services in https://doi.org/10.52403/ijrr.20221158
An Giang Province. Duy Tan University Journal
of Science & Technology, 3(8), 79-87.
******

Optimization of Monetary Policy Transmission

Through Credit Channels to Foreign Direct
Investment
Wahyu Indah Sari1, Ade Novalina2, Annisa Sanny3
1,2
Department of Development Economics, 3Department of Management
University of Pembangunan Panca Budi, Medan of North Sumatra, Indonesia
Corresponding Author: Ade Novalina
ABSTRACT There are several channels, namely the

interest rate channel, the asset price channel,
This study aims to analyze the variable Amount the credit channel, the exchange rate channel,
of Money in Supply, Exchange Rate, Interest and the expectation channel.
Rate, Credit, Exports and Tax on Foreign Direct
Like which put forward by Andriy
Investment (FDI). This study uses secondary data
(Andriyani, 2008) that mechanism
or time series data for the period 2009-2020. The
data analysis model used is ARDL Panel transmission is channel which connect
Regression. The results of the ARDL panel data Among policy monetary with economy.
analysis show that the Money Supply, Exchange The monetary policy delivery mechanism
Rate and Interest Rates can be the leading begins when the monetary authority or the
indicators of Foreign Direct Investment (FDI) in Indonesian bank acts using monetary
the Five Southeast Asian Countries of Emerging instruments to enforce monetary policy
Markets in the short term seen from the short run. until its impact on economic activity is
So that it can be concluded that a monetary policy visible. Economists argue that the
transmission that can be recommended is through transfer mechanism is an intermediary
the management of Foreign Direct Investment process that changes real GDP and
and the Money Supply, Exchange Rate and
Interest Rate which is much better.
inflation through the monetary policy
mechanism.
Keywords: Monetary Policy, Credit, Foreign Currently, Southeast Asia's emerging market
Direct Investment economies are among the world's economies
that are still experiencing positive growth
INTRODUCTION despite the global economic crisis. As one of
Monetary policy is the policy of the the sectors that can increase domestic
monetary authority or Bank Indonesia in the strength is domestic banking credit, it is
form of controlling monetary amounts to necessary to analyze the status of the credit
achieve the desired development of channel of the Indonesian monetary policy
economic activity. This monetary policy delivery mechanism as one of the pieces of
works on a procedure that is considered to information for implementing optimal
use the monetary policy transmission monetary policy according to the situation.
procedure. The monetary policy transmission The global economic crisis is not over. It can
mechanism is a procedure that describes the be concluded that policy instruments can
stages through which a policy instrument influence the real economy through credit
passes to the final target, namely inflation. change mechanisms.

Wahyu Indah Sari et.al. Optimization of monetary policy transmission through credit channels to foreign direct
investment
Picture 1.1 Development Credit period year 2009-2020 in Asia Southeast Of emerging Market Countries
On the picture above show that credit still Dynamics from variables monetary like
dominate enhancement that is in country inflation, level ethnic group flower, GDP (Gross
Indonesia, Singapore and Thailand. In line with domestic product) and which other on in fact has
condition the, Bank central as holder authority push holder authority monetary which in Thing
highest in field monetary has Secrete policy this is bank central in Secrete policy monetary
which lead on optimization function for then could applied in period which will
intermediation banking as step concrete come.
constructive for push development sector real. Mechanism policy monetary which through
Government no no once make an effort for track credit this also will take effect to FDI on
develop sector real, however policy which Asia Southeast Of emerging Market Countries
enforced by government on period past still not the. Problems economy from corner investment
yet felt maximum. Management which not view in Asia Southeast Of emerging Market
enough good from banking plus again issue Countries no will stop so just. Following data
corruption which very loaded on period order FDI on period year 2009-2020 in Asia Southeast
new, finally capable counter formula policy Of emerging Market Countries.
which built by government on moment that.
Picture 1.2 Development FDI period year 2009-2019 in Asia Southeast Of emerging Market Countries
Viewed picture in on that fluctuation FDI Thing the noticed in apply policy monetary
very diverse in Asia Southeast Of emerging the is how much accurate policy the related
Market Countries that is Indonesia, Thailand, with problem time and impact which will
Malaysia, Singapore and Philippines. In occur. decline FDI on period crisis global and
Indonesia on year 2009 investation as big slow growth FDI on post crisis often called
11.1 and in 2014 fell to 10.8 and always fell as wrong one factor which cause process
in 20019, which was 9.8 and experienced recovery economy every country the walk
very good growth in 2020 to 14.2. with slow compared with country other

investment
which also experience crisis like Korea economics theory it is often referred to as a
South. after from crisis global crisis which "black box". exports and imports so that this
caused by pandemic very influence change monetary policy influences economic growth
investation on Asia Southeast Of emerging and inflation which is the final target of the
Market Countries the. policy. The monetary policy transmission
mechanism is a complex process, and
LITERATURE REVIEWS therefore in monetary economics theory it is
1. Monetary Policy Transmission often referred to as a "black box". The
Monetary policy is all the efforts or actions complexity of the monetary policy
of the Central Bank in influencing the transmission mechanism is influenced by
development of monetary variables (money three factors, namely:
supply, interest rates, credit and exchange 1) Changes in the behavior of the central
rates) to achieve certain economic goals bank, banking and economic actors in
(Litteboy, 2016). The monetary policy their various economic and financial
transmission mechanism basically describes activities. This is related to the
how the monetary policy pursued by the anticipatory behavior of banks and
central bank affects various economic and economic actors in any changes in the
financial activities so that in the end it can behavior of the central bank.
achieve the set goals. Specifically, the 2) The length of time since monetary policy
monetary policy transmission mechanism is was pursued until the inflation target was
"the process through which monetary policy achieved. This is because monetary
decisions are transmitted into changes in real transmission has a lot to do with the
GDP and inflation". The monetary policy pattern of relationships between various
transmission mechanism starts with central economic and financial variables which
bank actions by using monetary instruments are always changing in line with the
that affect economic and financial activity economic development of the country
through various monetary policy concerned.
transmission channels, such as money 3) Changes occur in the monetary policy
channels, credit, interest rates, exchange transmission channels in accordance with
rates, asset prices and expectations. In the the economic development of the country
financial sector, monetary policy influences concerned.
the development of interest rates, exchange The monetary policy transmission
rates and share prices in addition to the mechanism shows the interaction between
volume of public funds deposited in banks, the central bank, banks, other financial
extended loans to the business world and institutions and economic actors in the real
investments in bonds, stocks and other sector through a two-stage process of money
securities. In the real sector, this policy circulation, namely:
influences developments in consumption, 1) Interaction in financial markets, namely
investment, exports and imports so that this the interaction between the central bank
monetary policy influences economic growth and financial and banking institutions in
and inflation, which is the ultimate goal of financial transactions. Interaction
the policy. The monetary policy transmission through financial markets occurs
mechanism is a complex process, and because, on the one hand, the central
therefore in monetary economics theory it is bank exercises monetary control through
often referred to as a “black box”. exports financial transactions conducted with
and imports so that this monetary policy banks in accordance with the direction
influences economic growth and inflation and targets of monetary policy that have
which is the final target of the policy. The been set. On the other hand, other
monetary policy transmission mechanism is banking financial institutions carry out
a complex process, and therefore in monetary investment portfolio transactions for

investment
their own interests as well as for 4) From the export-import side, the
customers. This interaction can occur influence occurs through developments
through the rupiah money market, in the exchange rate as well as the volume
foreign exchange market and capital and interest rates on loans, issuance of
market. The interaction between the stocks and bonds needed to finance these
central bank and the banking sector will export-import activities. The interaction
directly or indirectly affect volume and between banking and economic actors
price developments (interest rates, will ultimately determine the inflation
currency rates, rate, real output and employment
2) Interaction through the intermediation opportunities in the economy.
function, namely the interaction of
banking and other financial institutions Monetary Policy Transmission Channels
with economic actors in the real sector. namely:
This is due to the banking intermediary 1) Money line
function in mobilizing deposits from the The mechanism for transmitting
public and channeling them in the form monetary policy through the money
of credit and financing to the business channel begins with the action of the
world. This interaction will affect the central bank controlling the money
volume and interest rates on demand base in accordance with the ultimate
deposits, savings and time deposits, goal to be achieved, with the money
affecting the money supply, demand for multiplier being transmitted to the
money and public savings. In addition, money supply according to public
this interaction will also affect the demand. In the end, this money supply
development of the capital market, both will affect the economy, namely
in terms of investment by investors and inflation and real output.
financing by issuer companies. 2) Credit Line
Interactions between banks and In the mechanism of transmitting
economic actors, both through the monetary policy through the credit
financial intermediary function and channel, the credit market greatly
through the capital market, will have a influences the transmission of finance
major impact on the economy, namely: from the monetary sector to the real
sector. The credit market is not always
1) On the production side, developments in in a state of balance due to unbalanced
financing in the form of bank credit and information or other reasons. There
stock issuance will affect the production are two credit channels that influence
capacity of the business world so that it the transmission of monetary policy
will determine the level of real output in from finance to the real sector, namely
various economic sectors. the bank credit channel which is more
2) On the demand side, developments in concerned with bank behavior which
bank lending rates, stock prices and bond is more selective in making credit
yields will determine the cost of capital selection due to asymmetric
which will affect investment interest in information or other reasons and the
the business world. company balance sheet channel which
3) On the consumption side, the effect can is more concerned with the leverage
occur through income derived from conditions of companies that are
investment in the form of bank deposits, influential in granting credit. The
bonds and stocks (income effect) as well development of bank credit will affect
as costs that must be incurred if inflation and real output through two
consumption is made through credit things,
(substitution effect). 3) Interest Rate Line

investment
The interest rate channel is more country due to foreign trade activities
concerned with the price aspect in the and the presence of investment
financial market towards economic capital, which in turn will affect the
activity in the real sector. Monetary inflation rate and real output of the
policy adopted by the central bank country concerned.
will influence the development of 5) Asset Price Line
interest rates in various financial The transmission mechanism through
sectors which in turn will affect the the asset price channel occurs through
inflation rate and real output. In the its influence on consumption demand
first stage, the monetary policy for investors, both due to changes in
pursued by the central bank will affect wealth owned and changes in income
short-term interest rates on the rupiah consumed arising from the investment
money market, which in turn will of these financial assets. The effect of
affect deposit rates provided by banks assets on the real sector also occurs
to public deposits and credit interest investment demand by companies,
rates charged by banks to their this is due to changes in asset prices
debtors. In the second stage, the which affect the cost of capital that
transmission of interest rates from the must be spent in production and
financial sector to the real sector will investment by companies. The two
depend on their impact on effects of these asset prices will then
consumption demand and investment affect aggregate demand which will
in the economy. The influence of affect the inflation rate and real
interest rates on consumption demand output.
occurs because deposit interest is 6) Expectation Line
derived from public income and credit With increasing uncertainty in the
interest is used as consumption economy and finance, the channel of
financing. The effect of interest rates expectations is becoming increasingly
on investment occurs because lending important in the monetary policy
rates are a component of the cost of mechanism to the real sector.
capital in addition to bond yields and Economic actors will form certain
stock dividends, in investment perceptions regarding future
financing. The two influences above economic prospects in carrying out
will in turn affect the amount of their business actions. With regard to
aggregate demand which ultimately monetary policy, what is paid the most
determines the inflation rate and real attention to is the inflation
output. expectations that arise in society.
4) Exchange Rate Line Inflation expectations are influenced
The exchange rate channel places by developments in inflation that have
more emphasis on the importance of occurred and the influence of
the effect of changes in financial asset monetary policy by the central bank as
prices on various economic activities. indicated by developments in interest
The importance of the exchange rate rates and exchange rates. The more
channel in the transmission of credible monetary policy, as indicated
monetary policy lies in the influence by its ability to control interest rates
of financial assets in the form of and stabilize exchange rates, the
foreign currency arising from the stronger the impact on inflation
economic activities of one country to expectations in society. The effect of
another. The effect occurs through inflation expectations on aggregate
changes in exchange rates and the demand occurs because of its impact
large flow of funds into and out of a on real interest rates which are

investment
considered in determining the amount collateral, credit multifunction, etc scheme

of demand for consumption and installment permanent and flat.
investment in society. The influence 3.Interest-free and installment-free business
of inflation expectations on aggregate loans
supply occurs through changes in the Credit this provided especially for effort
pattern of formation of product prices small nor medium. Credit like this very
by companies. The effect of inflation relieve for business owner however stages
expectations on aggregate demand selection the melting very strict, like Credit
and supply will affect real output and Effort People (KUR). Scheme installment
the inflation rate in the economy. permanent or decrease and flat.
2. Credit Types of Credit Based on Time:

Credit is a financial facility that allows 1. Revolving Credit
individuals or companies to borrow money to Credit which futures time short (1 year)
buy a product and repay it within a certain and over and over again (could be
period of time. UU no. In 1998, lending was extended). Wrong one example product
defined as "using money or receivables bank which use credit revolving is Card
equivalent to that which obligates the Credit.
borrower to repay the debt and interest after
a certain period of time, based on an 2. Non-Revolving Credit
agreement or loan agreement between the Credit which futures time long and no
bank and another party. That is to allow." could be extended. Restructurisation
Time”. When someone uses a credit service, Credit when creditor face problem in
they are charged interest. Thing payment instalment credit, so
Of course, when a bank lends money to a party bankor institution finance To do
customer, it expects the money to be repaid, Restructurisation Credit.
so to minimize risk (pay) and solvency (pay),
the bank needs to repay the loan and interest 3. Foreign Direct Investment (FDI)
to its customers. It consists of personality, According to Stephen Hymer's Theory The
abilities, capital, collateral, and economic theory of foreign direct investment was first
conditions, and is sometimes called 5C developed by (Hymer, 1965) by developing
analysis (Panca C). the theory of modern monopolistic advantage
which shows that foreign direct investment
Types of credit based on the scheme: occurs more in oligopolistic industries than
1.Investment Credit in industries that operate in almost perfect
Medium to long term loans for investment in competition. (near perfect competition).
capital goods such as factory construction, Hymer argued that the essence of direct
purchase of machinery, purchase of investment is maximum profit, which can
shophouses/shops, renovation of factories/ lead to acts of controlling resources, reducing
shops/shops/rent. The installment payment the degree of competition between foreign
system is decreasing and effective. Working investors and operational cooperation
capital loans Short or medium term loans for between them (Nusantara, 2014).
financing/purchasing raw materials. Fixed or Then Hymer's thinking was developed by
reduced cost structure and effective (Buckley, 1976) who assumes that foreign
2. Consumer Credit investment decision making is based on: (1)
Credit for individual for financing goods companies must maximize profits during
personal like house (credit ownership house imperfect market conditions, (2) when
and credit ownership apartment), vehicle market conditions are imperfect,
(credit vehicle motorized), like credit without opportunities for creating internal markets
open up. to cut the impact of market

investment
imperfections, (3) efforts to internalize According to JHDunning's theory, the

international markets resulted in the creation approach "The OLI Framework" put forward
of multinational companies (MNCs). (Dunning, 1995) explains the factors
According to Theory (Vernon, 1996) influencing foreign investment through
explains the theory of foreign investment electical design theory. In this theoretical
with a theory called the Product Life Cycle design, a set consisting of three requirements
(PLC) Model in his article entitled is determined if a company is to enter into
International Investment and International foreign investment. The three requirements
Trade in the Product Cycle (1996). This are:
model suggests that a product undergoes 1. Company Specific Advantages
three stages, namely: (Ownership Specific Advantages), where
1. The first stage is the innovation stage, in companies must have specific
this stage the product is developed and advantages, especially net ownership
marketed for the first time. It requires a advantages when dealing with companies
close relationship between the of other countries in serving certain
production design and marketing groups markets, especially foreign markets. In
of the company and the market that this this case related to ownership
product will serve. Therefore production technology, managerial skills, marketing,
and sales are still carried out product differentiation, trademarks,
domestically. economies of scale and large capital
2. The second stage is that the company requirements for factories with minimum
begins to think about the possibility of efficient size.
finding new markets in other relatively 2. Internalization of Advantage It is in a
developed countries and export activities company's best interest to exercise
begin to be carried out with the aim of unique proprietary advantages rather
third world countries. The company's than licensing to foreign owners.
advantage lies in economies of scale in 3. Country Specific Advantages
production, transportation and (Locational Advantages) are things that
marketing. Pricing and location strategies can be utilized by companies located
are based on the actions and reactions of abroad or the host country. For example,
other multinational corporations and not natural resources, labor with low costs
on competitive costs. and certainty.
3. The third stage is where the product has The OLI Framework put forward by Dunning
been standardized so that research and above has several weaknesses, including not
management skills are no longer being able to further explain the existence of
important. Unskilled and semi-skilled foreign companies (MNCs), particularly
workers are starting to get a place and regarding developments in FDI. Therefore
consequently products are moving to comparing the data with existing theory.
developing countries because labor costs Developments in the global economy
are still low. Then the products produced indirectly influence the understanding of
in these developing countries will be re- what and how FDI is and what variables
imported to their countries of origin and influence it. This is based on the fact that the
also to the markets of more developed dynamics of the economy will continue to go
countries. Therefore, the location of hand in hand with existing developments.
production will be determined more by The theory of FDI, based on empirical
the difference in cost and market studies that have been conducted in several
distance. Investment abroad will be seen countries, has led to several new approaches
as a way to maintain the company's to understanding FDI (Sarwedi, 2002).
competitiveness in its innovative
products.

investment
MATERIALS & METHODS Where:

The method used in this study is a type of Credit : Rate Credit (%)
quantitative method with the ARDL Panel SB : Interest rate (%)
Regression approach using Eviews 10 ER : Exchange rate (Eye Money per
software with cross section data in five country/US$)
Emerging Market Countries namely JUB : Amount of money in circulation (%)
Thailand, Malaysia, Philippines, Indonesia
and Singapore. FDI : foreign Direct Investments (%)
ARDL panel regression is used to obtain Taxes : Tax revenue (Billion us$)
estimation results for each individual Ex : Export (%)
characteristic separately by assuming € : error term
cointegration in the long run lag of each β : coefficient regression
variable. Autoregressive Distributed Lag α : constant
(ARDL) introduced by (Rusiadi, 2014). This i : amount observation
technique examines each variable lag located t : many time
at I (1) or I (0). On the other hand, the ARDL
regression result is a statistical test that can Model Panel ARDL which accepted is model
compare two asymptotic critical values. which have lag cointegrated, where
Panel Regression Testing with the formula: assumption mainly is score coefficient
onShort run Equation have slope negative
FDIit with level significant 5%. Terms Model
=α+β1KREDITit+β2SBit+β3EKSit+β4KU Panel ARDL: value negative (-0.597) and
RSit+β5JUBit +β6TAXit+ e significant (0.012 < 0.05) so model received.
Following ARDL panels formula regression
based on country RESULTS
FDITHAILANDt Results analysis Panel ARDL test data
=α+β1KREDITit+β2SBit+β3EKSit+β4KU pooled that is combined data cross section
RSit+β5JUBit +β6TAXit+ e with data time series, results panel ARDL
FDIMALAYSIAt = more good compared with panel normal,
α+β1KREDITit+β2SBit+β3EKSit+β4KUR because capable cointegrated period Long
Sit+β5JUBit +β6TAXit+ e and have distribution lag which most in
FDIPHILIPINAt = accordance with theory, variable which used
α+β1KREDITit+β2SBit+β3EKSit+β4KUR in panel ARDL this is variable FDI, JUB,
Sit+β5JUBit +β6TAXit+ e Credit, Exchange rate and Ethnic group
FDIINDONESIAt = Flower because variable Export and taxes has
α+β1KREDITit+β2SBit+β3EKSit+β4KUR degraded because data no normal on Panel
Sit+β5JUBit +β6TAXit+ e ARDL this so will next use variable which
FDISINGAPURAt = normal with use software eviews 10 so
α+β1KREDITit+β2SBit+β3EKSit+β4KUR obtained results as following :
Sit+β5JUBit +β6TAXit+ e
Table 4.1 output Panel ARDL

Variables coefficient std. Error t-Statistics Prob.*
Long run Equation
JUB -1.23E+09 5.19E+08 -2.365332 0.0277
CREDIT -15010813 1854006. -8.096420 0.0000
EXCHANGE RATE 9009756. 1262812. 7.134679 0.0000
SB -2.17E+09 5.05E+08 -4.295792 0.0003
Short run Equation
COINTEQ01 -0.570519 0.165729 -3.442484 0.0024
D(JUB) 3219987. 5.24E+08 0.006148 0.9952
D(CREDIT) 1277811. 13443456 0.095051 0.9252
D(EXCHANGE) 1.64E+10 2.03E+10 0.810968 0.4265
D(SB) 6.94E+08 6.67E+08 1.039902 0.3102

investment
Table 4.1 To Be Continued…

C 1.65E+10 1.23E+10 1.340898 0.1943
Means dependent var -2.09E+09 SD dependent var 7.47E+09
SE of regression 5.40E+09 Akaike info criteria 42.73875
sum squared resid 6.12E+20 Schwarz criteria 43.97965
Logs likelihood -1141316 Hannan-Quinn criter. 43.21861
Model Panel ARDL which received is model Based on reception model, so analysis data
which have lag cointegrated where conducted with panel per country.
assumption mainly is score coefficient have
slope negative dreluctantly level 5% a. Analysis Panel Country Indonesia
condition model panel slope ARDL : score
the negative – 0.57 and significant with score Following results though data panel ARDL
prob 0.05 < 0.54, so could stated that panel for country Indonesia with help program
ARDL which used in study this rejected. eviews 10:
Table 4.2 output Panel ARDL country Indonesia
Variables coefficient std. Error t-Statistics Prob. *
COINTEQ01 -0.435570 0.004127 -105.5414 0.0000
D(JUB) -1.28E+09 5.17E+16 -2.48E-08 0.0000
D(CREDIT) 24358011 4.38E+12 5.56E-06 0.0090
D(EXCHANGE) -737101.0 1.84E+11 -4.00E-06 0.0000
D(SB) 6.16E+08 5.27E+15 1.17E-07 0.0230
C -2.38E+10 3.69E+19 -6.43E-10 0.0000
Results test Panel ARDL show: coefficient and score probability which
1. The amount of money in circulation more small from 0.05.
matters negative significant to foreign 4. Ethnic group Flower take effect positive
Direct Investments. Thing this could is significant to development FDI in
known from score coefficient and score Indonesia which proven with score
probability variable that alone which as coefficient which positive and score prob
big < 0.05 < 0.05.
2. Credit give influence positive and
significant to FDI which showed by score b. Analysis Panel ARDL Country
probability sig which smaller from 0.05 Thailand
that is as big 0.00. Following results though data Panel ARDL
3. Exchange rate find results take effect in country Thailand with help program
negative significant to development FDI. eviews 10:
Decision that could seen from score
Table 4.3 output Panel ARDL Country Thailand
COINTEQ01 -0.942059 0.284621 -3.309868 0.0454
D(JUB) 3.56E+08 1.00E+18 3.55E-10 0.3000
D(CREDIT) -47403121 3.47E+15 -1.36E-08 0.1200
D(EXCHANGE) -1.31E+08 4.42E+18 -2.96E-11 0.0463
D(SB) 3.21E+09 4.04E+18 7.93E-10 0.0120
C 4.40E+10 6.48E+20 6.79E-11 0.1280
Results Panel ARDL show: 2. Credit give influence negative however

1. Amount money circulating no take effect no significant to FDI which showed by
and no significant to foreign Direct score probability sig which more big
Investments in country Thailand. Thing from 0.05 that is as big 0.12.
this could is known from score 3. Exchange rate find results take effect
coefficient and score probability variable negative significant to development FDI.
that alone which as big > 0.05. Decision that could seen from score

investment
coefficient and score probability which c. Analysis Panel ARDL Country

more small from 0.05. Malaysia
4. Ethnic group Flower take effect positive Following results though data Panel ARDL
significant to development FDI in in country Malaysia with program Eviews
Indonesia which proven with score 10 :
coefficient which positive and score prob
< 0.05.
Table 4.4 output Panel ARDL Country Malaysia
COINTEQ01 -0.555666 0.032498 -17.09869 0.0004
D(JUB) -7.77E+08 5.36E+16 -1.45E-08 0.1041
D(CREDIT) 1289445. 5.00E+11 2.58E-06 1.0000
D(EXCHANGE) -1.41E+10 1.30E+19 -1.08E-09 0.0203
D(SB) 2.90E+08 1.54E+17 1.88E-09 0.0302
C 2.26E+10 5.94E+19 3.80E-10 0.0040
Results test Panel ARDL show: coefficient and score probability which
Amount money circulating take effect more small from 0.05.
negative however no significant to foreign 3. Ethnic group flower take effect positive
Direct Investments. Thing this could is significant to development FDI in
known from score coefficient and score Indonesia which proven with score
probability variable that alone which as big < coefficient which positive and score prob
0.05. < 0.05.
1. Credit give influence positive and no
significant to FDI which showed by score d. Analysis Panel ARDL Country
probability sig which more big from 0.05 Singapore
that is as big 0.00.
2. Exchange rate find results take effect Following results though data panel ARDL
negative significant to development FDI. in country Singapore which helped by
Decision that could seen from score program eviews 10:
Table 4.5 output Panel ARDL Country Singapore

COINTEQ01 -0.888758 0.036449 -24.38337 0.0002
D(JUB) 1.77E+09 5.35E+17 3.30E-09 0.3130
D(CREDIT) 27939591 4.40E+13 6.34E-07 0.1000
D(EXCHANGE) 9.68E+10 1.67E+21 5.79E-11 0.0398
D(SB) -7.46E+08 1.58E+18 -4.71E-10 0.0000
C 3.71E+10 2.15E+20 1.73E-10 0.2031
Results test Panel ARDL show: 4. Ethnic group Flower give influence
1. Amount Money Out of circulation give positive and significant to FDI which
influence positive and no significant to showed by score probability sig which
FDI which showed by score probability more small from 0.05.
sig which more big from 0.05.
2. Credit give influence positive and no e. Analysis Panel ARDL Country
significant to foreign Direct Investments Philippines
which showed by score probability sig Following results though data panel ARDL
which more big from 0.05 in country Philippines which helped by
3. Exchange rate give influence positive program eviews 10 :
significant to FDI which showed by score
probability sig which more big from 0.05.

investment
Table 4.6 output Panel ARDL Country Philippines

COINTEQ01 -0.030545 0.000174 -175.7108 0.0000
D(JUB) -47224452 2.64E+15 -1.79E-08 0.0207
D(CREDIT) 205129.2 5.71E+10 3.59E-06 0.7219
D(EXCHANGE) -3.36E+08 8.71E+16 -3.86E-09 0.0000
D(SB) 1.03E+08 4.48E+16 2.30E-09 0.0000
C 2.63E+09 1.63E+18 1.61E-09 0.0000
Results test Panel ARDL show: 4. Ethnic group Flower take effect positive
1. Amount money circulating take effect significant to development FDI in
negative significant to foreign Direct Indonesia which proven with score
Investments. Thing this could is known coefficient which positive and score prob
from score coefficient and score < 0.05.
probability variable that alone which as
big < 0.05. DISCUSSION
2. Credit give influence negative and no Based on all results which obtained could
significant to FDI which showed by score seen that which significant in period long
probability sig which more bigfrom 0.05. influence foreign Direct Investments in Asia
3. Exchange rate find results take effect Southeast of emerging Market that is JUB,
negative significant to development FDI. Exchange rate, Ethnic group Flower whereas
Decision that could seen from score in period short no there is which influence
coefficient and score probability which foreign Direct Investments. Following table
more small from 0.05 summary results test Panel ARDL:
Table 4.7 Summary of ARDL Panel Data Processing Results

Variable Indonesia Thailand Malaysia Singapore Philippines Short Runs Long Run
JUB 1 0 0 0 1 0 1
Credit 1 0 0 0 0 0 1
Exchange rate 1 1 1 1 1 0 1
SB 1 1 1 1 1 0 1
Results analysis test Panel prove: in mechanism transmission policy

a. Leading Indicators Effectiveness monetary through track credit is
Foreign Direct Investments In Asia (JUB, Exchange rate and SB)
Southeast Of Emerging Market 5. leading indicators foreign Direct
Countries Investments (FDI) country
1. leading indicators foreign Direct Philippines in mechanism
Investments (FDI) country Indonesia transmission policy monetary
in mechanism transmission policy through track credit is (JUB,
monetary through track credit is Exchange rate and SB.
(JUB, Credit, Exchange rate and SB).
2. leading indicators foreign Direct Could our see from explanation on that
Investments (FDI) country Thailand leading indicators foreign Direct
in mechanism transmission policy Investments (FDI), in mechanism
monetary through track credit is transmission policy monetary through track
(Exchange rate and SB) credit to FDI on every country will
3. leading indicators foreign Direct experience difference. Results study on same
Investments (FDI) country Malaysia with study which conducted by Brams First
in mechanism transmission policy (2015) which say that Amount Money Out of
monetary through track credit is circulation take effect positive and
(Exchange rate and SB) significant to foreign Direct Investments
4. leading indicators foreign Direct (FDI) in Singapore in line with study by and
Investments (FDI) country Singapore Nurimalasari (2017) that Amount Money

investment
Out of circulation take effect significant to goods and market money) so that no occur
foreign Direct Investments (FDI) in something risk systemic which make crisis
Indonesia. On study by Rizly Indrawa (2017) finance. For Thing the, which must
find results that Exchange rate take effect conducted government is roll out something
significant to foreign Direct Investments meeting for discuss development condition
(FDI). On study amrin, Rahma Wati Daily finance latest.
(2016) obtain results that Amount Money
Out of circulation (JUB) take effect negative CONCLUSION
significant to foreign Direct Investments 1. Ethnic group Flower and Exchange rate
(FDI). From results discussion which on Becomes leading indicators in Asia
could concluded that every country have Southeast Of emerging Market Countries
method respectively respectively in (Indonesia, Thailand, Malaysia,
application mechanism transmission policy Singapore and Philippines), however
monetary through track credit including position no stable on short run.
control foreign Direct Investments (FDI). 2. leading indicators main mechanism
In control stability system finance, transmission policy monetary through
transmission policy monetary run together track credit in control FDI in Asia
with policy supporters other which enter into southeast of emerging Market Countries
the model the. Transmission policy monetary that is JUB, Credit, Exchange rate and
if conducted with good so will more effective Ethnic group Flower seen from long run,
to control foreign Direct Investments (FDI) whereas variable JUB, Credit, Exchange
through Amount Money Out of circulation Rate, Tribe flower no significant on
(JUB), Exchange rate and Ethnic group period short in control foreign Direct
flower. Mechanism Transmission Policy Investments seen from the short run.
Monetary could defined where something
track could control and influence something Declaration by Authors
economy like on rate change price. It means Acknowledgement: None
monetary policy transmission mechanism is Source of Funding: None
wrong one policy government which Conflict of Interest: The authors declare no
function for arrange and control system conflict of interest.
economy especially on field credit.
REFERENCES
b. Kindly Panel 1. Andriyani, D. (2008). Analysis of Bank
kindly panel it turns out Amount Money Out Lending Channels in Monetary Policy
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Economics and Management Bogor
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Agricultural Institute.
leading indicators for control country 2. Buckley, P.a. (1976). The Future of
Indonesia, Thailand, Malaysia, Singapore Multinational Enterprises. Macmillan,
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which very important if conducted with good Enterprises and the Global Economy,.
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Medan: USU PRESS. How to cite this article: Wahyu Indah Sari, Ade
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and International Trade in the Product Cycle.
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