Traditional shipping plays a crucial role in the national sea transportation system, serving inland areas, remote areas, and outer islands that are widely distributed throughout the country. However, there is still limited research on the problems of traditional shipping empowerment and its implementation. This research aims not only to analyze the obstacles encountered in empowering traditional shipping but also the implementation of the traditional shipping grant program. This study employed a quantitative descriptive approach, utilizing a likert scale, to analyze the issues that arise in the empowerment of traditional shipping. Additionally, for policy implementation analysis, the Hellmut-Wollmann policy analysis was used. The findings indicate that the most significant issues arise in the area of human resource development, such as a lack of competent teaching staff, insufficient short courses, complicated testing procedures, and the lack of crew certification. In the ex-ante stage, the variable of empowering traditional shipping transportation programs experienced the highest implementation rate. During the ongoing stage, the variable empowering traditional shipping services achieved the highest implementation score. And in the ex-post stage, traditional shipping services had the highest implementation score. This paper emphasizes the significance of collaboration and coordination among all levels of government, from the central to the local, in order to effectively implement the traditional shipping empowerment program. These findings also highlight the necessity of extending the traditional shipping grant program while making improvements in areas such as ship safety management regulations, the management and supply of traditional shipping terminals, the division of transportation types, and route determination policies.
This article delves into an examination and analysis of leadership models within local government institutions in Indonesia, employing the conceptual framework of new institutionalism. We contend that informal local institutions within communities not only influence the behavior and identity of leaders as actors but, within the context of decentralization, have also undergone a process of reinstitutionalization regarding roles and functions, employing distinct patterns of appropriation. Employing an interpretive approach, this article focuses on phenomena within the management of local governance in the West Nusa Tenggara province. Data were collected through in-depth interviews, literature studies on local history, and online news searches. Through a case study of local governance in West Nusa Tenggara province, particularly Lombok, the article reveals that the Tuan Guru, an informal local institution in Lombok society, has experienced reinstitutionalization through vertical and horizontal appropriation. The conclusion drawn is that decentralization has created opportunities for informal institutions to re-establish their roles within formal governance through appropriation patterns.
The focus of this research is the task of assistance from the government in improving agriculture in the region and analyzing the obstacles that occur. However, there has been a decrease in the number of assistance tasks given by the central government to the local government of Rokan Hulu, Riau Province, Indonesia in 2022. This study aims to evaluate and find out the obstacles to the implementation of assistance tasks in Rokan Hulu Regency in 2022. This study uses a qualitative method with an exploratory type and is analyzed using Nvivo 12 Plus software. The results of this study show that the Rokan Hulu regional government only gets one implementation of assistance tasks, namely from the Ministry of Agriculture through the Director General of Infrastructure and the Director General of Food Crops whose performance achievements have been maximized. The findings in this study are that in its implementation there are obstacles, one of which is the relatively short period of implementation of assistance tasks, making it difficult to implement assistance tasks by regional apparatus organizations as recipients of assistance tasks. The conclusion in this study is that the implementation of assistance tasks there is one assistance task received from the Ministry of Finance whose implementation in the region is carried out by the Food Crops and Horticulture Service. This research contributes to the government of Rokan Hulu, Indonesia, namely as a basis for policymaking, especially in the use of the budget for assistance tasks.
Papua, one of the provinces in Indonesia, is recognized for its limited infrastructure and high poverty rates. This limitation undoubtedly emphasizes the government’s special attention toward augmenting foreign and domestic investments by expanding industrial sectors to absorb more labor, thereby aiming to enhance the region’s economic performance. The focus of the study seeks to assess the extent to which foreign and domestic investments, industrial employment, and the proliferation of industries in Papua contribute to increasing the Gross Development Product (GDP) and reducing poverty. By employing secondary data from 2016 to 2022 and utilizing the Regression Data Panel method, it encompasses 29 districts. The findings reveal that domestic investment, employment in the industrial sector, and the number of industries significantly influence poverty rates. However, as conclusion, foreign investment, surprisingly, demonstrates no substantial impact on economic performance. This unexpected result might be attributed to issues linked with the inadequate quality of financial performance, which doesn’t align with the available investment funds. Utilizing the analytical network process (ANP), the study outlines two primary strategies. The first involves prioritizing investment expansion by focusing on both domestic and foreign investments. The second strategy emphasizes industrial revitalization through augmenting the number of industries and enhancing labor participation in the industrial sector.
In the human and economic development context, this study examines the relationship between human capital, life expectancy, labor force participation rate, and education level in Indonesia, Malaysia, and Thailand. The World Bank’s 2001–2021 data are examined using a panel vector autoregressive model. The findings demonstrate the substantial influence of health expenditure from the prior period on present health expenditure. Though not significantly different, life expectancy and education levels from earlier periods also impact present health spending. A slight positive correlation exists between prior labor force involvement and present healthcare costs. An increase in current health expenditure supports an increase in life expectancy. Health expenditure in the previous period had a significant positive effect on education, although insignificant. Life expectancy in the previous period harms current education but is also insignificant. Education in the previous period significantly positively affects current education, indicating a sustained impact of education investment. Labor force participation in the previous period also positively affected education, although not significantly. The prior period’s health spending, life expectancy, and educational attainment impact the current labor force participation rate. The length of life has a significant favorable impact on entering the labor sector. Currently being in the job field has a good correlation with prior education as well. These findings support that higher education levels lead to higher labor force participation rates. Life expectancy, health care costs, education level, and prior work experience all influence current life expectancy. While prior life expectancy significantly influences current life expectancy, health expenditures have a negligible negative impact. Prior education positively impacts life expectancy but negatively impacts prior labor force engagement. These results reject the hypothesis that increasing life expectancy causes current health expenditure to increase.
This study aims to evaluate the relationship between financial resilience, exchange rate, inflation, and economic growth from 1996 to 2022 using secondary data from the World Bank. The analysis method uses vector autoregressive to understand the causality dynamics between these variables. The results show that past economic growth positively impacts current economic conditions, but an increase in the exchange rate can hinder economic growth. The exchange rate also tends to be influenced by previous values, but high economic growth does not always increase the exchange rate. Previous conditions significantly affect financial resilience and can be strengthened by a strong currency. Meanwhile, inflation has an inverse relationship with economic growth, where past inflation seems to suppress current inflation, which price stabilization policies can cause. From an institutional economics perspective, this study provides an understanding of the interaction between various economic factors in the structural framework and policies that regulate economic activities. The impulse response function (IRF) shows that economic growth can react strongly to sudden changes, although this reaction may not last long. The exchange rate fluctuates with economic changes, reflecting market optimism and uncertainty. Financial resilience may be strong initially but may weaken over time, indicating the need for policies to strengthen the financial system to ensure economic stability. Furthermore, the role of social capital in economic resilience is highlighted as it can amplify the positive effects of a robust institutional framework by fostering trust and collaboration among economic actors. Inflation reacts differently to economic changes, challenging policymakers to balance growth and price stability. Overall, the IRF provides insights into how economic variables interact with each other and react to sudden changes, albeit with some uncertainty in the estimates. The forecast error decomposition variance (FEVD) analysis in this study reveals that internal factors initially influence economic growth, but over time, external factors such as the exchange rate, financial resilience, and inflation come into play. The exchange rate, which was initially volatile due to internal factors, becomes increasingly influenced by economic growth, indicating a close relationship between the economy and the foreign exchange market. From an institutional economics perspective, financial resilience, which was initially stable due to internal factors, becomes increasingly dependent on global economic conditions, suggesting the importance of a solid institutional framework for maintaining economic stability. In addition, inflation, which was initially explained by economic growth and exchange rates, has gradually become more influenced by financial resilience, indicating the importance of effective monetary policy in controlling inflation. This study highlights the importance of understanding how economic variables influence each other for effective economic governance. Integrating institutional economics and social capital perspectives provides a comprehensive framework for enhancing financial resilience and promoting sustainable economic development in Indonesia.
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