Past Presentations

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Discussant/Panelist          :  Dr. Asrul Ismail
Affiliation       :  University of Portsmouth

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Cross-Border Payment (CBP) is pivotal in the global economy. It offers diverse advantages and carries significant significance through its four payment models—corresponding banking, infrastructure, closed loop, and peer-to-peer—all vulnerable to cyber threats. Using

tools like STRIDE, DREAD, OCTAVE, and LINDDUN, cyber threat modeling is imperative to identify risks within the CBP model. This study applied the STRIDE method to conduct cyber threat modeling on SWIFT, PayPal, ApplePay, and Ripple, representing corresponding banking, infrastructure, closed loop, and peer-to-peer models. Adapting cyber threat modeling stages from Khalil et al., initially designed for Cyber-Physical Systems (CPS), revealed that the closed loop model, with fewer Data Flow Diagrams (DFD) elements outside the trust

boundary, is relatively less susceptible to cyber threats. Using the STRIDE method, the CBP corresponding banking model exhibited the highest threat impact among the four due to numerous transaction elements, each with its threat risk during a cyber attack.

Discussant/Panelist          :  Dr. Asrul Ismail
Affiliation       :  University of Portsmouth

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This study examines the impact of Special Economic Zones (SEZs) on Global Value Chain (GVC) participation in a cross-country setting. SEZs are strategically designed to attract foreign investments and bolster trade integration and have garnered significant attention in recent decades, yet their interaction with GVCs remains underexplored. Utilizing cross-country data from 1990 to 2017 and a causal inference framework, this study disentangles the effects of SEZ laws and operationalization on GVC participation. The study found a positive causal relationship between SEZ establishment and GVC participation, with SEZ operationalization exerting a stronger influence. Notably, the impact of SEZs primarily stems from enhancing domestic value added (DVA) rather than foreign value added (FVA) in the GVC. This paper contributes by constructing a novel dataset that separates SEZ phases, focusing on the manufacturing sector and GVC components. We employ a causal inference estimation framework to accommodate unobserved variables and diverse treatment timings to enhance the robustness of the findings. Overall, this study highlights the importance of effectively operationalizing SEZs to maximize their impact on GVC participation and economic growth.

Discussant/Panelist          : Ilmiawan Auwalin , SE., M. App. Ec., Ph.D.

Affiliation       : Universitas Airlangga

Abstract

Manuscript type: Research paper

Research aims: The aim of this research is to examine a conceptual model of digitalization's influence on value added, productivity, internal policy, ecosystem, and entrepreneurship, as well as its impact on the performance of livestock MSMEs.

Design/Methodology/Approach: We conducted quantitative survey research using structured questionnaires administered uniformly to all respondents. Our sample comprised 140 MSMEs involved in beef cattle, laying hens, and broiler chickens, distributed across 19 Indonesian provinces. Data analysis was performed using WarpPLS software for variant-based and Partial Least Squares Structural Equation Modelling (SEM).

Research Finding: The findings indicate that value-added, internal policies, and entrepreneurship strengthen the impact of digitalization on livestock MSME performance. However, the findings also reveal that productivity and ecosystem do not mediate the relationship between digitalization and MSME performance.

Theoretical contribution: This study contributes theoretically to the understanding of livestock MSMEs. Digitalization impacts livestock sales, value added, productivity, internal policies, ecosystem, and entrepreneurship within these MSMEs. Findings indicate that increased digitalization positively influenced these factors, although perceptions varied regarding sales and production volume. These findings may differ in other MSME sectors.

Practitioner/policy implications: This study generated various practical implications for government intervention, including: digitalization of marketing for the livestock sector, digitalization of payment access, a breeder data update policy, and the building of a community of practices.

Research limitation: This research confirms that digitalization significantly impacts value-added, productivity, internal policies, ecosystems, and entrepreneurship in agriculture. It primarily focuses on digitalizing the payment sectors, excluding exploration of production-side digitalization. Future research should investigate how technologies, especially in livestock, reshape the industry's landscape for both small-scale and large-scale operations.

Discussant/Panelist 1        :  Dr.rer.pol. Wildan Syafitri, S.E.,M.E
Affiliation       :  Universitas Brawijaya

Discussant/Panelist 2      :  Dr. Tony Seno Aji, S.E., M.E., 
Affiliation       :  Universitas Negeri Surabaya

Abstract

Discussant/Panelist        :  Dhiana Puspitawati, SH., LLM., P.hD
Affiliation     :  Universitas Brawijaya

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This empirical research seeks to unravel the linkage between digitalization and economic growth in BRICS and Indonesia from 1995 – 2020 using annual data from the World Bank and Our World in Data. Digitalization is proxied by two indicators namely the percentage of individuals using the Internet (IUI) and mobile phone subscriptions per 100 people (MPS). Pooled Mean Group (PMG) is applied to examine the dynamic relationships, followed by the Dumitrescu-Hurlin (DH) causality test. The results denote that both IUI and MPS were found to be engines of economic growth. A 1% rise in IUI is associated with a 0.025% advance in GDP per capita whereas a 1% rise in MPS leads to a 0.058% advance in GDP per capita. Additionally, there is bidirectional causality between digitalization and GDP per capita. The study's findings shed light on the importance of digital technology dissemination in fostering economic development.

Discussant/Panelist        :  Prof. Wiwiek Rabiatul Adawiyah, Ph.D
Affiliation     :  Universitas Jenderal Soedirman

Discussant/Panelist       :   DR Tauhid Ahmad

Affiliation   :   INDEF/ FEB Universitas Pembangunan Nasional Veteran Jakarta

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Digital technology is the latest innovation, having formed Industry 4.0, which offers automation, better productivity, accuracy, and real-time data, leading to higher industry performance. Micro-small-medium enterprises (MSMEs) are left behind in digital technology adoption compared to large enterprises due to a lack of capital, human resources, and access to productive resources. The study aims to observe the state of digital technology readiness of MSMEs based on Indonesian MSMEs' characteristics. Our findings have contributed to MSME's digital technology literature from developing countries' perspectives through dependency MSMEs on support from digital ecosystem.

We employed quantitative analysis using the digital technology readiness index sourced from 600 surveys of MSMEs in the food and beverages sector located in eight regions/ cities in Indonesia. The results show that MSMEs in Indonesia are at a transitional level due to a weak leadership dimension and the transformation of employees to adopt digital technology. The study finds an indication that business size fosters the probability of adopting digital technology, which supports the previous studies on the digital divide by business size in MSMEs.

Keywords: MSMEs, readiness, digital technology, adoption, Indonesia

Discussant/Panelist       :  Prof Handry Imansyah
Affiliation   :   Lambung Mangkurat University

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We examine the effects of political stability and institutions on bank liquidity creation. Theory suggests that a strong state that is able to maintain the civil liberty of its populace, or a Shackled Leviathan, creates political stability that ultimately stimulates investment and economic activities. In turn, intensified economic activities increase demand for financial services and encourage banks to create liquidity in the economy. We empirically test this conjecture and find a strong effect of state capacity on liquidity creation when civil liberty is high. We conjecture that state capacity and civil liberty affect liquidity creation via political stability, as well as innovation and entrepreneurship channels. Our findings confirm the presence of both channels, thus offering novel insights into the significant effect of political stability and democracy on the banking sector.

Discussant/Panelist       :  Dr. Yohanes Eko Riyanto
Affiliation : Nanyang Technology University

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This study seeks to examine the impact of Product Knowledge (PK), Riba Knowledge (RK), and Sharia Compliance (SC) in shaping the attitude toward behavior (ATB) of prospective Muslim Investors to purchase Sukuk issued by Small and Medium Enterprises (SMEs) via the Fintech Securities Crowdfunding (SCF) platform. Using data from 350 potential investors and employing the Partial Least Square - Structural Equation Modeling, we found that Subjective Norm (SN) and Perceived Behavioral Control (PBC) have a positive and significant influence on Behavioral Intention (BI) to purchase SCF sukuk. The main findings also prove that PK, RK, and SC can shape positive perceptions about investing in sukuk. This study recommends the implementation of regular education and literacy on sukuk products through collaboration between the Financial Services Authority (OJK), crowdfunding service associations, SCF players, and issuers with related agencies and ministries in order to strengthen the positive stigma of investors to support financing and expansion of SME businesses.

 
Discussant/Panelist   : Dr. Zainuri
Affiliation : Universitas Negeri Jember

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Purpose – This research explores the financial attribute role of Hello Gold (HGT) and X8X Token (X8X) against digital assets (Bitcoin, Ethereum, UCRY Price, UCRY Policy, ICEA) and traditional assets (conventional stock indices, government bonds, foreign exchange, Islamic stock indices) within Organization Islamic Cooperation (OIC) countries.

Design/methodology/approach – Quantile via moment was employed, followed by feasible generalized least square and difference generalized method of moment as robustness tests. The research term spanned from August 6, 2018, until June 30, 2023, focusing on five OIC countries.

Findings – Three key findings were discovered: (1) HGT and X8X primarily function as strong diversifier, particularly for BTC and ETH, (2) HGT acts as strong safe haven for Islamic stock indices in all market conditions, (3) during high cryptocurrency price uncertainty, HGT could functions as a strong diversifier.

Practical Implications – The uncovered roles of HGT and X8X suggests that the inclusion of Islamic gold-backed cryptocurrencies in investment portfolio allows investor, especially for faith-based investors, to maximize profits while minimizing risk for the Islamic stock indices.

Originality/Value – This research distinguishes itself by revealing and comparing the financial attribute role of HGT and X8X across nine types of financial assets, either digital or traditional. The incorporation of digital and traditional assets, especially involvement of UCRY Price, UCRY Policy, ICEA, provides a comprehensive analysis that has not been previously undertaken.

 
Discussant/Panelist  : Dr. Raden Aswin  Rahadi
Affiliation               :  School of Business and Management ITB

Abstract

This article investigates how online gig workers are embedded into the local context to reap the benefit of urban agglomeration. In the absence of a traditional workplace, workers tend to develop a continuous process of becoming part of the city. By drawing on 50 interviews with online platform workers residing in five secondary cities in Indonesia, this study structures the notion of regional embeddedness into three main mechanisms. First, online gig workers organize remote tasks ‘on the ground’ by utilizing multiple locations of workplaces. Second, they actively cultivate face-to-face interactions within their social networks for exchanging knowledge and sharing similar identity. Finally, they operate as micro-entrepreneurs who leverage urban density as a business ecosystem to scale up their services. Although theoretically, work can be done from anywhere, online gig workers in Indonesia show a significant concentration in specific secondary cities. It suggests that the presence of platform-based work does not yield equal opportunities across all cities; rather, it is those cities characterized by specific attributes that can fully leverage this phenomenon. The decision to stay in or move to secondary cities are driven by the strong social connections, the reliability and accessibility of urban amenities, the vibrant urban atmosphere, the reputation of creative cities, and the strength of local communities in these cities.

 
Discussant/Panelist  :  Galuh Syahbana Indraprahasta PhD
Affiliation                     : BRIN & IPB University

Abstract

This study examines the factors influencing the utilization of e-commerce, with a specific focus on socio-economic and cultural dimensions. Survey data collected from the National Socio Economic Survey (SUSENAS) in 2022 serve as the basis for analysis, utilizing logistic regression methodology. The approach aims to identify the impact of variables such as income, education, and cultural aspects on e-commerce adoption. The research findings reveal a correlation between online selling and buying activities. Those engaged in online sales, including SMEs, tend to also make online purchases for personal needs at a rate of 58,99%. Conversely, for respondents not involved in online selling, the tendency not to engage in online purchases reaches 93,35%. The implications of these findings are discussed to provide guidance for industry stakeholders and policymakers to optimize the penetration and adoption of e-commerce in society.This study examines market power in banking, focusing on Islamic banks (IBs) in dual-banking systems, where both IBs and conventional banks operate. Excessive market power in banks can lead to consumer welfare losses and affect bank stability and efficiency. Traditional measures of market power, such as the Lerner index, do not accurately capture the unique business models of IBs, which combine traditional intermediation with funds management, involving profit-sharing with depositors whose principal is not guaranteed.

To address this, the study proposes separate evaluation of market power in each business line and introduces a new measure specific to the funds management business of IBs, based on the profit-sharing ratio (PSR). The model accounts for the sequence of PSR setting and distribution of returns, considering stochastic returns on managed assets and the bank's profit share.

Key model features include:

1. The bank's fee income from managed assets is treated as an infinite series of call options due to profit-sharing without bearing losses.

2. Participatory deposits change in response to realized returns relative to conventional deposit rates, influencing fund volumes at the end of each period.

The optimal PSR balances three effects: attracting more funds, paying higher returns to attract funds from conventional banks, and retaining less of the realized returns. The optimal PSR is where the marginal gains from attracting funds equal the marginal cost of higher payouts.

Abstract

This study examines the factors influencing the utilization of e-commerce, with a specific focus on socio-economic and cultural dimensions. Survey data collected from the National Socio Economic Survey (SUSENAS) in 2022 serve as the basis for analysis, utilizing logistic regression methodology. The approach aims to identify the impact of variables such as income, education, and cultural aspects on e-commerce adoption. The research findings reveal a correlation between online selling and buying activities. Those engaged in online sales, including SMEs, tend to also make online purchases for personal needs at a rate of 58,99%. Conversely, for respondents not involved in online selling, the tendency not to engage in online purchases reaches 93,35%. The implications of these findings are discussed to provide guidance for industry stakeholders and policymakers to optimize the penetration and adoption of e-commerce in society.

Discussant/Panelist : Dr. Zaafri Ananto Husodo

Affiliation       : Faculty of Economics and Business, Universitas Gadjah Mada

Abstract

This paper develops a new toolbox for multiple structural break detection in panel data models with interactive effects. The toolbox includes tests for the presence of structural breaks, a break date estimator, and a break date confidence interval. The new toolbox is applied to a large panel of US banks for a period characterized by massive quantitative easing programs aimed at lessening the impact of the global financial crisis and the COVID–19 pandemic. The question we ask is: Have these programs been successful in spurring bank lending in the US economy? The short answer turns out to be: “No”. Keywords: Panel Data; Structural Breaks; Cross-Section Dependence; Bank Lending; Quantitative Easing. 

Discussant/Panelist : Prof. Dr. Ir. Yuli Hariyati. MS.

Affiliation       : Universitas Negeri Jember

Abstract

Rural households in Indonesia predominantly relies on small-scale agricultural activities for their primary income source. These particular households are particularly susceptible to the repercussions of the Covid-19 pandemic. This study examines financial resilience in terms of liquidity among rural farming households. A total of 400 farming households were included in the research. The study was conducted within the districts of Kediri, Nganjuk, Blitar, and Tulungagung, situated in the East Java Province of Indonesia, during a period of March to June 2023. In this research we employed the Structural Equation Model (SEM) for the data analysis. The research result reveal that farmers' ability to maintain financial liquidity is significantly influenced by their spending behavior, particularly how they utilize financial aid for consumption, healthcare, agricultural ventures, and savings. Although there is a positive correlation between variables such as the allocation of financial assistance for consumption, education, and agricultural pursuits, its impact on the financial liquidity resilience of rural farming households in East Java in the aftermath of Covid-19 is not statistically significant. Conversely, the effect of directing financial aid towards savings and the level of meeting essential needs significantly contributes to the liquidity resilience of rural farming households in East Java, post Covid-19. Based on the findings of this study, it is recommended that the government consider implementing financial management training programs for farming households. These programs should encompass skills in calculating financial requirements for agricultural undertakings, healthcare, and education.  

Discussant/Panelist :  Rahmatina Awaliah Kasri, Ph.D.
Affiliation                   :  Universitas Indonesia

Abstract

AI’s impact has traditionally been assessed in terms of occupations. However, an occupation is comprised of interconnected tasks, and it is these tasks, not occupations themselves, that are affected by AI. To evaluate how tasks may be impacted, previous approaches utilized manual annotations or coarse-grained matching. Leveraging recent advancements in machine learning, we replace coarse-grained matching with more precise deep learning approaches. Introducing the AI Impact (AII) measure, we employ Deep Learning Natural Language Processing to automatically

identify AI patents that impact various occupational tasks at scale. Our methodology relies on a comprehensive dataset of 19,498 task descriptions and quantifies AI’s impact through analysis of 12,984 AI patents filed with the United States Patent and Trademark Office (USPTO) between 2015 and 2020. Our observations reveal that the impact of AI on occupations defies simplistic categorizations based on task complexity, challenging the conventional belief that the dichotomy between basic and advanced skills alone explains the effects of AI. Instead, the impact is intricately linked to specific skills, whether basic or advanced, associated with particular tasks. For instance, while basic skills like scanning items may be affected, others like cooking may not. Similarly, certain advanced skills, such as image analysis in radiology, may face impact, while skills involving interpersonal relationships may remain unaffected. Furthermore, the influence of AI extends beyond knowledge-centric regions. Regions in the U.S. that heavily rely on industries susceptible to AI changes, often characterized by economic inequality or a lack of economic diversification, will experience notable AI impact.

Discussant/Panelist :  Dr. Tony Irawan, , SE, M.App.Ec

Affiliation                    :