ETIKONOMI ETIKONOMI is an international journal published by Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah Jakarta in cooperation with The Indonesian Association of Islamic Economist (IAEI). This journal focusing on Research about Economics in Developing Countries. ETIKONOMI is published twice a year (April and October), and it aims to disseminate Economics research conducted by researchers. Papers published by ETIKONOMI have been using English since 2016. Etikonomi has become a CrossRef Member since year 2015. Therefore, all articles published by Etikonomi will have unique DOI number Etikonomi had accredited Tier 1 by Ministry of Education, Culture, Research, and Technology No. 158/E/KPT/2021 on December 9, 2021, Valid from Vol. 20(1), 2021 until Vol. 24(2), 2025 (Renewal of Accreditation No. 51/E/KPT/2017 on December 4, 2017 (Amendment of No. 48a/KPT/2017 on October 30, 2017). Etikonomi indexed by Emerging Sources of Citation Index, CrossRef, Dimensions, Sinta (S1), Goggle Scholar, Garuda-Dikti, Moraref, Indonesia One Search, ISJD LIPI, ASEAN Citation Index (ACI), etc. Etikonomi has been selected for coverage in Clarivate Analytics. Beginning with Vol. 16(1) 2017, Etikonomi will be indexed and abstracted in Emerging Sources Citation Index. Journal Metrics (2022) Journal Impact Factor (WoS) 0.8 Citedness in Web of Science 92 Citedness in Scopus (secondary document) 186 Citations in Google Scholar 6,012 h-index (Google Scholar) 37 i-10 index (Google Scholar) 151 ISSN Print: 1412-8969 Online: 2461-0771
Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah Jakarta
Does the National Health Insurance Program Affect Life Insurance Demand in Indonesia?
Research Originality: This research pioneers a macro-institutional approach to life insurance demand by empirically proving a definitive crowding-out effect induced by Indonesia's universal healthcare mandate. Research objectives: To investigate the dynamic impact of the state-mandated JKN program and national income on private LID in Indonesia. Research methods: This study utilizes a Vector Error Correction Model (VECM) and structural break analysis on annual data from 2002 to 2022 to rigorously capture regime shifts, short-run frictions, and long-run equilibria. Empirical result: The findings reveal a definitive crowding-out effect: the JKN mandate and rising compulsory insurance penetration significantly depress private LID, whereas income maintains a significant positive elasticity in the long run. Furthermore, structural break tests confirm a fundamental, permanent shift in consumer purchasing behavior post-2014, coinciding with the introduction of the JKN program. Implications: Policymakers must orchestrate a regulatory environment that protects universal healthcare while actively sustaining the development of the private life insurance market. Insurers must innovate beyond state-overlapping benefits by developing investment-linked products and optimizing Coordination of Benefits (CoB) frameworks. JEL Classification: D12, G22, G28, I13, I18
Copyright (c) 2026 Kristio Rapi, Dominicus Savio Priyarsono, Siti Jahroh, Toni Bakhtiar https://creativecommons.org/licenses/by-sa/4.0
Macroeconomic Shocks and Market Persistence: A VECM Approach to the Indonesian Financial Sector
Research Originality: This study offers fresh insights by analyzing how inflation, exchange rates, and economic growth affect Indonesia’s IDX Finance sector, addressing a key gap in understanding the market's internal dynamics. Research Objectives: This study quantifies the impact of inflation, exchange rates, and economic growth on the Indonesian IDX Finance sector. Research Method: This study uses 62 monthly observations and a VECM to analyze short- and long-run relationships among variables. Empirical Results: Long-run VECM estimates reveal that the Consumer Price Index (CPI) and Exchange Rate (ER) exert significant positive pressures on IDXFINANCE, suggesting that moderate inflationary environments often catalyze credit expansion and heightened demand for financial intermediation. Conversely, Economic Growth (EG) exhibits a statistically negligible long-term impact. Implications: The findings indicate that IDX Finance is largely driven by its own past dynamics rather than by external macroeconomic shocks. As a result, internal market trends provide more reliable short-term predictions than traditional economic indicators, especially when the sector’s persistence is taken into account. JEL Classification: C5, E31, F31
Copyright (c) 2026 Thomas Sumarsan Goh, Erika Erika, Henry Henry, Albert Albert https://creativecommons.org/licenses/by-sa/4.0
From Certification to Compliance: Halal Compliance Rating in Indonesian Restaurants
Research Originality: This study extends halal restaurant research by reframing halal compliance from a binary certification issue into a multidimensional managerial construct. It does so through a Halal Compliance Rating (HCR) framework based on the Indonesian Halal Assurance System (IHAS). Research Objectives: This study aims to measure the importance and performance of implementing IHAS-based HCR in halal restaurants in Indonesia Research Method: The study applied a cross-sectional survey involving 40 halal-certified restaurants purposively sampled. A structured 20-item questionnaire was developed based on the IHAS and was administered to restaurant operators. The data were then analyzed using Importance Performance Analysis (IPA). Empirical Results: Halal-certified restaurants performed well in operational aspects of halal, including thayyib and halal practices, hygiene, branding, customer trust, and halal supply chains. However, lower ratings were recorded in the human resource, cultural, and sustainability dimensions. Implications: Halal restaurant operators are expected to improve post-certification halal governance by developing staff, incorporating Islamic service values, and adopting sustainability practices. Policy implications point to the halal authorities to strengthen capacity, provision, and monitoring systems, and to ensure substantive compliance. JEL Classification: M14, L66, Z12
Copyright (c) 2026 Inas Afifah Zahra, Mohammad Nur Rianto Al Arif, Muniaty Aisyah, Yuke Rahmawati https://creativecommons.org/licenses/by-sa/4.0
Role of Content and Influencer Attributes in Smartphone Purchase Intention
Research Originality: This research extends the elaboration likelihood model (ELM) by examining the effect of long-form smartphone reviews on purchase intention on YouTube in Indonesia. Research Objectives: The study aimed to examine the role of content and influencer attributes in smartphone purchase intention in Indonesia. Research Method: The ELM was employed to analyze long-form smartphone reviews by tech-influencers. Data were obtained using an online survey distributed to 477 YouTube users who watched smartphone review content. Data were analyzed by using partial least squares structural equation modeling. Empirical Results: The study's results show that purchase intention is directly and positively associated with content originality, uniqueness, and informativeness, as well as with influencer’s trustworthiness and self-presence, with content uniqueness having the strongest effect. Influencer expertise, physical attractiveness, and social attractiveness indirectly affect purchase intention positively through content attributes. Implications: This study extends the ELM theory by examining social media and products reviewed by YouTube tech influencers. It provides managerial implications for influencers and companies in the technology sector, aiming to enhance their content quality, particularly uniqueness, and personal branding. JEL Classification: M30, M39, D91
Copyright (c) 2026 Josia Rajagukguk, Ignatius Heruwasto https://creativecommons.org/licenses/by-sa/4.0
Corruption as a Key Transmission Channel Linking Governance and Investor Protection in ASEAN
Research Originality: The Originality lies in integrating governance quality and macroeconomic variables within a unified framework while explicitly modeling corruption as a mediating variable, a focus that remains underexplored in prior studies. Research Objectives: This study examines the role of corruption as a transmission mechanism linking governance and macroeconomic factors to investor protection in ASEAN countries. Research Method: Using panel data from six ASEAN countries over the period 2010–2023, this study applies panel-data-based path analysis with bootstrapping to estimate both direct and indirect effects. Robustness checks are conducted using fixed-effects, random-effects, and System GMM estimators to ensure the consistency of the results. Empirical Results: The findings show that governance significantly enhances investor protection, while portfolio investment and interest rates exhibit varying effects depending on institutional conditions. Importantly, corruption is found to play a significant mediating role, indicating that improvements in governance and macroeconomic performance do not automatically strengthen investor protection without effective corruption control. Implications: This study suggests that policymakers should integrate governance reforms with anti-corruption strategies to improve investor protection. Strengthening institutional quality, transparency, and regulatory enforcement is essential to create a more secure and sustainable investment environment in ASEAN economies. JEL Classification: D73, G38, F21, E44
Copyright (c) 2026 Muhammad Firmansyah, Sri Budi Cantika Yuli, Fika Fitriasari, Zainal Arifin, Stanislaw Flejterski https://creativecommons.org/licenses/by-sa/4.0
Health Worker Retention in Faith-Based Hospitals: A Mediated–Moderated Framework of Employee Engagement and Islamic Work Ethic
Research Originality: This study addresses the gap by developing an integrated framework that incorporates employee engagement and Islamic work ethic into health worker retention strategies. Research Objectives: This study investigates the effects of talent management and employer branding on health worker retention through employee engagement and Islamic work ethic in private faith-based hospitals. Research Methods: Primary data were collected from 210 health workers employed at private hospitals across Aceh Province using a multi-stage random sampling design. This study uses PLS-SEM to estimate direct, indirect, and moderating effects. Empirical Results: The findings indicate that talent management and employer branding significantly strengthen employee retention both directly and indirectly through employee engagement, confirming partial mediation. Islamic work ethic further reinforces these relationships, highlighting that retention is shaped by the interaction between psychological engagement and religiously grounded work values. Implications: The study highlights the importance of integrating human resource practices, employee engagement, and ethical values to sustain workforce retention in faith-based healthcare institutions. JEL Classification: M12, J28, Z12
Copyright (c) 2026 Siti Maqfirah, M. Shabri Abd. Majid, Teuku Roli Ilhamsyah Putra, Maulidar Agustina https://creativecommons.org/licenses/by-sa/4.0
Determinants of Indonesia’s Economic Growth:Short-Run and Long-Run Analysis
Research Originality: The originality of this study lies in its integrated approach to analyzing Indonesia’s economic growth from a long-term structural perspective, capturing dynamic interactions among key macroeconomic variables within a cointegrated framework, and emphasizing the interconnected effects of policy reforms, external shocks, and macroeconomic forces. Research Objectives: This research aims to analyze the short-run and long-run effects of government expenditure, gross fixed capital formation, foreign direct investment, exports, and inflation on Indonesia’s economic growth. Research Method: The study uses annual time-series data from 1993 to 2024 (32 observations) and applies the ARDL model to analyze both short- and long-run dynamics. Empirical Result: Short-run analysis shows that government spending, investment, and exports have positive effects on economic growth, while inflation has a negative effect, and foreign direct investment has no significant effect. Long-run analysis indicates that government spending and exports have positive effects, while all other factors have a negative impact on economic growth. Implications: Policy implications highlight the need to strengthen institutional quality, enhance investment effectiveness, ensure targeted government spending, and maintain inflation control to support long-term macroeconomic stability. JEL Classification: E62, F43, O11
Copyright (c) 2026 Zhena Nofhatiaz Zahra, Dian Fitria Anggraini, Nazla Atikah Hikmatias, Farid Kausar https://creativecommons.org/licenses/by-sa/4.0
Trade Creation and Diversion in Overlapping ASEAN+6 Agreements
Research Originality: This study provides a unified, directly comparable evaluation of six overlapping ASEAN+6 trade agreements within a single structural gravity framework, thereby overcoming the fragmentation of earlier studies that typically focused on individual agreements, specific commodities, or highly aggregated trade flows. Research Objectives: This study examines whether overlapping trade agreements are associated with trade creation and trade diversion at the regional level and in Indonesia’s bilateral trade across aggregate and sectoral dimensions. Research Methods: Using panel data for 1993–2020, the study applies a structural gravity model estimated with Poisson pseudo-maximum likelihood and fixed effects to address zero trade flows, heteroskedasticity, and unobserved bilateral heterogeneity. Empirical Results: Trade effects differ substantially across agreements. At the regional level, ACFTA and AKFTA exhibit the strongest intra-bloc trade creation, whereas AIFTA, AANZFTA, and AJCEP produce weaker or negative effects. For Indonesia, AKFTA is associated with the most consistent positive export and import performance, while sectoral gains are more concentrated in manufacturing than in primary products. Implications: Overlapping trade agreements should be treated as differentiated policy instruments. Their benefits depend on industrial capability, effective utilization of preferences, harmonized rules of origin, and lower non-tariff barriers. JEL Classification: F14, F15, C23
Copyright (c) 2026 Gandri Narandu, Agus Sriyanto https://creativecommons.org/licenses/by-sa/4.0
Uncovering Indonesia’s Sectoral Interdependencies in Global Value Chains: A Hypothetical Extraction Approach
Research Originality: This study extends the multiregional input-output approach by longitudinally decomposing Indonesia’s sectoral and intercountry linkages with major ASEAN FTA partners, providing a dynamic perspective on Indonesia’s evolving role in global value chains over a 15-year period. Research Objectives: This study aims to assess the economic interdependence between Indonesia and five ASEAN FTA partners, focusing on sectoral contributions and spatial trade dynamics. Research Methods: This study applies the Hypothetical Extraction Method (HEM) to panel data from the World Input-Output Database (WIOD) spanning 2000 to 2014 to measure sectoral and spatial linkages. Empirical Results: This study shows that the construction sector has the strongest backward linkages, while mining and manufacturing dominate forward linkages. Mining’s forward linkages tripled between 2000 and 2014, indicating rising global dependence on Indonesian commodities. Intercountry backward linkages declined from 25.46% to 19.95%, suggesting increased domestic input substitution, whereas intercountry forward linkages rose, reinforcing Indonesia’s role as a global supplier. Additionally, China has overtaken Japan and Australia as Indonesia’s main trading partner. Implications: The findings highlight the need to strengthen key sectors and pursue selective import substitution to boost Indonesia’s competitiveness and resilience. JEL Classification: F14, F15, C67
Copyright (c) 2026 Maura Bintang Potenza, M. Al Farisi , Alicia Ramadhani Putri Suwarno, Fitri Kartiasih, Rita Yuliana https://creativecommons.org/licenses/by-sa/4.0
Digital Financial Inclusion and Economic Growth: Nonlinear Evidence from Economies with High and Low Levels of Financial Development
Research Originality: This study contributes to the literature by showing that digital financial inclusion is not always a linear and uniform driver of economic growth. Its effect depends on the level of financial development and may generate diminishing returns after a certain threshold. Research Objectives: This study examines the nonlinear effect of digital financial inclusion on economic growth, identifies its optimal threshold, and compares its effects across low- and high-financial-development economies. Research Method: Using balanced panel data from 117 countries from 2007 to 2022, this study constructs a digital financial inclusion index through principal component analysis and applies Bayesian regression. Empirical Results: The results show clear heterogeneity. In low-income economies, digital financial inclusion has a strong, almost linear positive effect on growth, with a posterior probability close to 100%. In highly developed financial economies, the relationship follows an inverted U-shaped pattern. The estimated threshold is approximately 27.7, after which the marginal growth effect declines. Implications: Low-financial-development economies should expand digital financial services, while high-financial-development economies need stronger fintech regulation and consumer protection. JEL Classification: O47; G21; O33
Copyright (c) 2026 Huy Nguyen Quoc, Dinh Le Quoc https://creativecommons.org/licenses/by-sa/4.0
Does Governance Quality Mediate the Relationship Between Green Innovation and Economic Performance in China?
Research Originality: This study advances macro-level evidence by testing governance quality as an explicit mediation channel through which green innovation is translated into income gains, rather than treating institutions only as control variables. Research Objectives: It examines the long-run effect of green technological innovation on GDP per capita and tests whether governance quality mediates this relationship after controlling for R&D expenditure, renewable energy, emissions, labor participation, and trade openness. Research Method: Annual data for 1996–2024 are analyzed using a harmonized cointegration-based mediation framework, with FMOLS, CCR, robust least squares, and additional HAC/DOLS robustness checks. Empirical Results: Green technological innovation and R&D expenditure show positive long-run associations with GDP per capita across the main estimators. Governance quality is positively related to GDP per capita and partially mediates the innovation-growth relationship. Renewable energy is generally supportive but less stable, while the carbon indicator reflects continued reliance on carbon-intensive production during the transition. Implications: The findings suggest that stronger regulatory quality, implementation capacity, and institutional coordination can increase the economic returns from green innovation and support more balanced, high-quality growth. JEL Classification: O31, O44, Q55, Q56, C22
Copyright (c) 2026 Jawad Khan, Lin Ying, Kashif Raza Shah, Alweena Hasan https://creativecommons.org/licenses/by-sa/4.0
Interconnectedness of Financial Assets across the ASEAN-5 in Crisis Periods
Research Originality: This study advances the financial connectedness literature by integrating a multi-asset (Bitcoin–stocks–sovereign bonds) and time-varying framework within the ASEAN-5 context. Unlike prior studies, this study uncovers a hierarchical and asymmetric spillover structure that evolves across market regimes, providing new evidence on cross-asset transmission channels in emerging markets. Research Objectives: The study aims to investigate the magnitude, direction, and dynamics of volatility spillovers among Bitcoin, stock, and bond markets, and to assess whether these interconnections change between normal and crisis periods. Research Method: Using daily data from January 2018 to April 2026, volatility is estimated through a GARCH model. A generalized VAR-based forecast error variance decomposition (G-FEVD), combined with a rolling window approach, is employed to capture both directional and time-varying spillovers. Empirical Results: The findings show a hierarchical spillover pattern: sovereign bonds act as net transmitters to Bitcoin, while Bitcoin transmits risk to stock markets. Spillover intensity increases significantly during crisis periods, peaking during COVID-19, indicating strong state-dependent connectedness. Cross-asset diversification weakens under market stress. Implications: These findings imply that financial stability cannot be assessed in isolation, as shocks propagate across asset classes in a structured, time-varying manner. This study underscores the importance of integrated cross-market surveillance frameworks that include digital assets alongside traditional markets. JEL Classification: G15, N25, H5
Copyright (c) 2026 Sumani, Siti Saadah https://creativecommons.org/licenses/by-sa/4.0
Determinants of the Adoption of Digital Finance: Evidence from Indonesia
Research Originality: This study offers novelty by analyzing the underexplored influence of customer-perceived value on the intention to use digital finance, and how this relationship is uniquely moderated by digital financial literacy and perceived risk. Research Objective: The research investigates the effect of the customer value proposition on the intention to use digital finance, and whether this relationship is strengthened by digital financial literacy and the perceived risk. Research Method: Using a quantitative explanatory design, the data from 409 Indonesian respondents were analyzed employing PLS-SEM. Empirical Results: The findings indicate that convenience, economic benefits, security, and seamless transactions significantly enhance CPV, which in turn positively affects the intention to use digital finance. DFL strengthens the relationship between CPV and the intention to use digital finance (quasi-moderator), whereas the perceived risk weakens it (pure moderator). Implication: These results imply that strengthening the value propositions, improving people’s digital financial literacy, and mitigating the perceived risk are critical strategies to accelerate the responsible adoption of digital finance in emerging economies. JEL Classification: O33, G20, G53, D14, D91
Copyright (c) 2026 Vera Intanie Dewi, Teressia Debby, Sri Dharwiyanti https://creativecommons.org/licenses/by-sa/4.0
The Mediating Impact of Institutional Trust on Family Takaful Participation Behavioural Intentions
Research originality: This study fills a gap in Islamic finance research by examining how institutional trust mediates the relationship between TPB constructs and the intention to participate in family takaful products. While TPB is widely used, few studies have tested the role of institutional trust as a mediator in the family takaful context. Research objectives: The study investigates how institutional trust mediates the effects of attitude, subjective norms, and perceived behavioural control on consumers’ intentions to participate in family takaful. Research methods: A cross-sectional survey was conducted among 272 academicians from private Islamic universities in Malaysia, with hypotheses tested using partial least squares structural equation modelling (PLS-SEM). Empirical result: The results reveal that all TPB predictors, attitude, subjective norm, and perceived behavioural control, have significant direct effects on the intention to participate in family takaful products. Additionally, institutional trust demonstrates a partial mediating effect on the relationships between these endogenous and exogenous variables, underscoring its role in strengthening consumer behavioural intention. Implications: The study offers practical insights, emphasising institutional trust as a vital marketing and strategic component for takaful operators seeking to enhance consumer confidence and expand participation. JEL Classification: G22, G40, G41, G52
Copyright (c) 2026 Mohd Faizuddin Muhammad Zuki, Muhammad Arif Fadilah Ishak, Muhammad Hafiz Hassan https://creativecommons.org/licenses/by-sa/4.0
Market Anomalies and Investor Behavior: The January Effect in ASEAN Countries
Research Originality: This study provides a fresh contribution to the literature on market anomalies, specifically the January Effect, within ASEAN capital markets. Research Objectives: The objective of this research is to investigate the presence and extent of the January Effect by analyzing stock returns and abnormal returns of publicly listed companies in ASEAN capital markets. Research Methods: Data were obtained through purposive sampling, resulting in a final sample of 153 companies. The research hypotheses were tested using paired sample t-tests. Empirical Results: The findings indicate that the January Effect is evident in certain capital market indices within ASEAN but is not consistently observed across all markets. The presence of higher stock returns and abnormal returns in January does not conclusively confirm the January Effect in every instance. Implications: Investors are advised to exercise caution and not rely solely on seasonal anomalies, a comprehensive approach that includes broader market fundamentals and macroeconomic indicators is essential for sound decision-making within ASEAN capital markets. JEL Classification: E22, F21, G14
Copyright (c) 2025 Afiq Chamim Mubaroq, Christina Tri Styorini, Ascaryan Rafinda, Pangeran Fajar Ramdhani, Osama Alhendi, Muhammad Arif Ikhsanudin https://creativecommons.org/licenses/by-sa/4.0
Corruption and Environmental Degradation: Evidence from the EECCA Region
Research Originality: This research introduces a novel analytical approach to examine the interactions among corruption, per capita income, and the environment across the member countries of the GREEN Action Task Force platform. The study finds that lower-income countries experience a larger reduction in environmental degradation when corruption declines. Research Objective: The study aims to determine the effect of corruption on CO2 emissions and to examine how this relationship changes with economic development. Moreover, the research tests the validity of the Environmental Kuznets Curve hypothesis within this specific context. Research Method: The study used the Driscoll-Kraay and FGLS methods to address potential cross-section dependence, heteroskedasticity, and autocorrelation issues that commonly arise in panel data analysis. Empirical Results: Corruption has a significant negative effect on CO2 emissions. The interaction between corruption and per capita income reveals that the impact of reduced corruption on CO2 emissions is more apparent in countries with lower per capita income. The study also confirms the validity of the Environmental Kuznets Curve hypothesis. Implications: Policymakers, particularly in lower-income countries, should prioritize anti-corruption policies to protect the environment during economic development. JEL Classification: D73, Q42, Q53, Q56
Copyright (c) 2026 Abdulmecit YILDIRIM https://creativecommons.org/licenses/by-sa/4.0
Multidimensional Poverty in Indonesia: The Role of Economic, Social, Educational, and Political Factors
Research Originality: This study advances the field by employing a comprehensive, multidimensional framework that examines the synergistic interactions between economic, social, educational, and political factors. This study also provides a more nuanced and evidence-based perspective on poverty dynamics, moving beyond the oversimplified, single-dimensional analyses that have dominated prior scholarship. Research Objectives: This study aims to examine the impact of educational participation, crime rates, unemployment, access to Islamic financing, and the democracy index on poverty levels in Indonesia. Research Methods: Panel data from 2015 to 2022 is examined using a fixed effects model to identify the key determinants of poverty. Empirical Results: The findings indicate that higher net enrolment rates and increased access to Islamic financing significantly contribute to poverty reduction y, while rising crime rates and unemployment are associated with increased poverty levels. Interestingly, the democracy index shows no statistically significant effect on poverty during the examined period. Implications: The findings have significant policy relevance, emphasizing the need to enhance access to quality education, promote job creation, and expand Islamic financing as an inclusive economic tool. JEL Classification: I32, E24, G21
Copyright (c) 2025 Ali Rama https://creativecommons.org/licenses/by-sa/4.0
Mediating Role of Self-Efficacy: Resiliency and Entrepreneurial Intention in Young Generation
Research Originality: While combining the TPB and Linan Model, this study provides novelty through its analysis of the underexplored role of financial resources and self-efficacy in shaping entrepreneurial intentions among the young generation. Research Objectives: The research investigates the resilience factors that shape entrepreneurial ambition, focusing on the direct effects of entrepreneurship education, creativity, and financial resources, as well as the indirect effect of entrepreneurial self-efficacy on the relationship between these factors and entrepreneurial intention. Research Methods: This study utilizes a questionnaire survey from 312 college students in Jakarta. Structural equation modeling (SEM) was used to analyze the data. Empirical Results: The findings show that financial resources, entrepreneurial education, and creativity influence self-efficacy. The associations between creativity and entrepreneurial intention, as well as between entrepreneurship education and entrepreneurial intention, are significant for the indirect paths that use self-efficacy as a mediator. Implications: We recommend that universities, governments, and other stakeholders prioritize initiatives that offer financial assistance and focus on educational programs and support systems that enhance confidence and belief in entrepreneurial capabilities. JEL Classification: L26, I23, O10
Copyright (c) 2025 Regina Zaviera Anggi Kurniawati, Christian Haposan Pangaribuan, Agung Stefanus Kembau, Edric Budiman Nilam https://creativecommons.org/licenses/by-sa/4.0
Economic Turbulence in Indonesia: The Effects of Instability and Crisis
Research Originality: This study presents a novel perspective by examining Indonesia’s economic growth over three crisis periods. It uniquely highlights how global economic uncertainty can strengthen Indonesia’s growth resilience when met with credible domestic policy responses. Research Objectives: The research investigates the effects of exports, imports, production value, interest rates, economic globalization, exchange rates, and state obligations on Indonesia’s economic growth at constant prices. Research Methods: Using quarterly time-series data from 1991Q1 to 2024Q1, the study employs a Dummy Variable–Autoregressive Distributed Lag model. Empirical Result: Exports have a direct negative effect on economic growth but when influenced indirectly by the global crisis and the pandemic, exports can actually contribute to growth. On the other hand, imports directly boost growth, but their impact is negatively affected by the global crisis. Additionally, interest rates support long-term growth but hinder it in the short run; however, crises may moderate this impact positively. Implications: These findings underscore the need for policymakers to craft dynamic, adaptable economic strategies that can safeguard Indonesia’s growth against future global shocks and uncertainties. JEL Classification: F41, E32, O53
Copyright (c) 2025 farawi ghannili https://creativecommons.org/licenses/by-sa/4.0
Untapping the Determinants of Islamic Financial Behaviour among Young Generations
Research originality: The originality of this research lies in its integrated examination of psychological, social, and educational determinants of Islamic financial behaviour within a localized Malaysian context. Research objectives: Grounded in the Theory of Planned Behaviour, the research investigates how Islamic financial literacy, financial risk attitude, parental financial socialization, and financial self-efficacy influence financial behaviour. Research methods: A structured questionnaire was distributed to 358 respondents aged 18 to 30, and the data were analyzed using covariance-based Structural Equation Modelling (CB-SEM). Empirical result: The study reveals two significant findings: parental financial socialization and financial self-efficacy strongly predict Islamic financial behaviour, while financial literacy and risk attitude show insignificant relationships. Implications: Policymakers should embed Islamic financial literacy in national youth programs, educators must integrate hands-on financial training into curricula, and Islamic finance providers are encouraged to offer youth-friendly, Shariah-compliant products supported by educational outreach and family-involved financial awareness initiatives. JEL Classification: D10, D14, D91, G41
Copyright (c) 2025 Muhammad Arif Fadilah Ishak, Mohd Faizuddin Muhammad Zuki, Muhammad Hafiz Hassan https://creativecommons.org/licenses/by-sa/4.0
Do Macroeconomic and Green Factors Influence Stock Returns in Indonesia?
Research Originality: This study adopts a multidimensional framework that integrates environmental sustainability and macroeconomic pressures to assess stock market behavior over the period 2018 to 2022, encompassing both pre-pandemic and post-pandemic economic contexts. Research Objectives: This research explores the impact of inflation, economic growth, green accounting, and environmental performance on stock returns of energy companies registered on IDXENERGY from 2018 to 2022. Research Methods: This study uses panel data regression analysis based on secondary data from 33 energy sector companies over five years. Empirical Result: Inflation has a statistically significant negative effect on stock returns, indicating that rising inflation tends to reduce investor returns in the energy sector. In contrast, economic growth, green accounting, and environmental performance do not show significant effects on stock returns, suggesting that these variables have no observable impact on firm performance in the capital market within the scope of this study. Implications: The findings emphasize the need for enhanced green reporting standards, stronger policy incentives for sustainable practices, and increased investor awareness regarding environmental performance. JEL Classification: E31, O47, M41, Q56, G12
Copyright (c) 2025 Mimelientesa Irman, Sarli Rahman, Yenny Wati https://creativecommons.org/licenses/by-sa/4.0
Financial Development and Unemployment in OECD Countries: Evidence from Pre- and Post-Pandemic Periods
Research Originality: This study systematically analyzed the relationship between financial development and the unemployment rate using data from 38 OECD countries from 2000 to 2024. It not only examines differences across income levels but also deeply investigates the impact of the COVID-19 pandemic, thereby overcoming the limitations of previous studies that relied on alternative indicators of economic growth. Research Objectives: The purpose of this study is to assess whether a robust financial market can reduce unemployment rates, as well as how this effect changes under different economic backgrounds. Research Method: This study, using panel data from the World Bank and the OECD for the period 2000 to 2024, employs the fixed-effects model to test the direct impact of financial development level and the moderating effect of the epidemic. Empirical Results: The pandemic has weakened the effect of financial development on reducing the unemployment rate by optimizing capital allocation, but fiscal stimulus measures have boosted economic recovery. Therefore, even after excluding the data from the crisis period, the research findings remain robust. Implications: High-income countries must focus on improving the efficiency of fiscal resource allocation while maintaining labor-market stability. In contrast, middle- and high-income countries need to support the development of manufacturing and small and medium-sized enterprises while reducing financial instability risks, especially during times of crisis. JEL Classification: E24, G20, O40
Copyright (c) 2026 Zhang Yan, Naziatul Aziah Mohd Radzi, Normaizatul Akma Saidi https://creativecommons.org/licenses/by-sa/4.0
Banking in the Digital Era: Charting the Path from Transformation to Performance in Indonesian Banks
Research Originality: This research develops a new digital transformation adoption measure based on the number of products and services provided by a bank. Research Objectives: This study examines the impact of digital transformation, specifically the adoption of digital services and products, on bank performance in Indonesia. Research Methods: This study used hand-collected data from commercial bank annual reports to determine their digital transformation adoption and the BankFocus BvD database for the banks’ financial data for 2014–2023. This study employed fixed- and random-effects models and the two-step generalized method of moments to address endogeneity. Empirical Results: Digital transformation positively affects banking performance, and the significant effect is heterogeneous in nonstate-owned commercial and small and medium-sized banks. Implications: This study provides policymakers and banking executives with insights into the critical role of digital product and service adoption in overcoming the increasing challenges of modern business. The heterogeneity test results suggest that targeted policies and incentives are needed to create a supportive climate for digital transformation. JEL Classification: G21, G23, G33
Copyright (c) 2026 Bimo Saktiawan, Resfita Dewi, Tastaftiyan Risfandy, Bowo Setiyono https://creativecommons.org/licenses/by-sa/4.0
The Role of Economic and Social Safety Nets in Extreme Poverty in Indonesia
Research Originality: This study focused on addressing the goal of reducing extreme poverty (EP) to 0% by 2024 in Indonesia, an objective that has been underexplored in global literature. Research Objectives: This study examined convergence in EP across Indonesia and analyzed the impact of economic as well as social variables on poverty reduction. Research Methods: Panel data from 34 Indonesian provinces (2017–2022) were analyzed using Generalized Method of Moments (GMM) and K-means Cluster analysis for regional classification. Empirical Result: The results showed that provinces in Indonesia were reducing EP at an annual rate of 1.19%, with a half-life of 1.6 years. This process signified that the country was on a path to achieve near-zero EP by 2024. Major socioeconomic drivers identified during the study included employment expansion and investments in education. Moreover, K-means Cluster analysis identified Cluster 1 (Central Sulawesi, North Maluku, Papua) with the highest EP rate of 1.52%, showing critical geographic disparities. Implications: The Government should adopt a multilevel strategic framework prioritizing regions with the highest poverty rates. Job creation and better access to education played a crucial role. Additionally, Indonesia's success could serve as a model for sustainable EP eradication in developing nations. JEL Classification: I32, P46, Q01
Copyright (c) 2025 Sugeng Setyadi, Lili Indriyani, Anita Widiastuti https://creativecommons.org/licenses/by-sa/4.0
When Markets Talk: Volatility Spillovers Between the UK and China
Research Originality: This study uniquely examines spillover effects among stock returns, gold prices, and exchange rates within the UK and China, as well as between them. Research Objectives: This study aims to examine volatility spillover effects among stock, gold, and exchange rate returns within and across the UK and China. Research Method: This study exploits monthly data from January 2000 to December 2024 and employs a bivariate GARCH model to analyze cross-market and cross-border volatility spillovers. Empirical Results: The results demonstrate significant ARCH and GARCH effects, necessitating persistent volatility in markets to be studied. No evidence of mean spillover is observed in UK markets. However, volatility spillover persists from the exchange rate to gold within the UK and China. Cross-country analysis reveals one-way mean spillover from the UK to the Chinese equity market and bidirectional volatility spillovers in exchange rates and gold. Implications: For investors and portfolio managers, deciphering volatility spillover improves diversification strategies and helps to mitigate systemic risk. JEL Classification: C32, G11, G15
Copyright (c) 2026 Rajib Ali https://creativecommons.org/licenses/by-sa/4.0
Clustering Indonesian Neobanking Users Through Extended UTAUT 3 for Retention Campaign Strategy
Research Originality: This study develops a behavior-anchored segmentation framework for Indonesian neobank users by extending the Unified Theory of Acceptance and Use of Technology (UTAUT-3) with trust and marketplace application usage, providing deeper insights into user behavior. Research Objectives: The research aims to identify distinct neobank user segments and key behavioral drivers to support targeted strategies in digital financial services. Research Method: An extended UTAUT-3 model incorporating trust and marketplace usage was validated through Structural Equation Modeling (SEM). Balanced Iterative Reducing and Clustering using Hierarchies (BIRCH) clustering was applied to data from 386 active users, with segment validity confirmed using Elbow, Gap, and Silhouette methods. Empirical Results: The results revealed that trust, habit, and marketplace usage emerged as primary drivers of engagement and user recommendations. This study identifies four user segments: transitioning explorers, urban occasionalists, rural digital enthusiasts, and cost-conscious digital natives. Implications: Urban Occasionalists and Rural Digital Enthusiasts show strong potential for long-term growth. Targeted engagement and personalized retention strategies for these segments can enhance customer lifetime value and strengthen user advocacy. JEL Classification: G21, M31, C38
Copyright (c) 2025 Febriandi Rahmatulloh, Ujang Sumarwan, Hartoyo Hartoyo, Bagus Sartono https://creativecommons.org/licenses/by-sa/4.0
Drivers of Cryptocurrency Adoption in Iran: Evidence from the Baluchistan Region
Research Originality: This study explores the key factors influencing the acceptance of cryptocurrencies in Iran, focusing on the under-researched Baluchistan region. In contrast to previous studies focusing on developed or technologically advanced economies, this research explores a socioeconomically disadvantaged region experiencing economic instability and restricted access to formal financial services. Research Objectives: The main goal of the study is to identify and analyze the key factors influencing cryptocurrency acceptance in this region. Research Methods: Using data from 200 active cryptocurrency users, we employed exploratory factor analysis followed by multiple regression analysis to identify and test predictive factors. Empirical Results: The findings reveal six primary drivers: financial constraints, national economic volatility, personality traits, social influences, managerial factors, and trust. Among these, income-related motivations and macroeconomic instability emerged as the strongest predictors of adoption. Implications: The study contributes to the literature by contextualizing cryptocurrency behavior within a developing country’s marginalized setting and provides insights for policymakers to enhance financial inclusion. It also highlights the need for regulatory clarity and user education to support safe and effective participation in digital finance. JEL Classification: G1, G4, G10, G41
Copyright (c) 2025 Majid Karimzadeh, Farzad Yousefi, Razieh Goldarzehi, Atefeh Delgarm https://creativecommons.org/licenses/by-sa/4.0
Bitcoin, Economic Freedom, and Underground Economies: A Tax Evasion Nexus
Research Originality: Our research uniquely integrates the dimension of economic freedom to assess its moderating effect on tax evasion in G-7 countries. This study also provides the latest tax evasion estimates in G-7 countries using the currency demand approach to measure the effectiveness of policies employed by the regulators to reduce large numbers of tax evasion. Research Objectives: This study estimates tax evasion in G-7 countries and measures the impact of cryptocurrencies on tax evasion at different levels of economic freedom. Research Method: This study employs the Currency Demand Approach to estimate tax evasion and then utilizes asymmetric/symmetric panel techniques (ARDL/NARDL) to confirm the impact of cryptocurrencies and all indicators of economic freedom on tax evasion. Empirical Results: Our investigation unveils that cryptocurrencies significantly impact tax evasion. This study also finds economic freedom indicators' asymmetric/symmetric impact and confirms the moderating impact. Economic freedom indicators significantly increase/decrease the impact of cryptocurrencies on tax evasion. Implications: Cryptocurrencies may be given due importance while drafting tax-related policies, and policymakers must maintain the optimum levels of economic freedom where cryptocurrencies do not support tax evasion. JEL Classification: H26, E42, O17, E26, C33
Copyright (c) 2025 Allah Ditta Nawaz https://creativecommons.org/licenses/by-sa/4.0
Assets, Activity Choice, and Policy Implications for Social Protection Systems
Research Originality: People in countries like Zimbabwe face ongoing economic challenges, underscoring the importance of improving social protection systems that help households build and own assets. However, there is still a limited understanding of how owning assets affects household economic activities. Without this knowledge, programs may be poorly designed, leading to little improvement in people’s lives and inefficient use of public funds. Research Objectives: This study examines how various livelihood assets affect the participation of urban and rural households in paid employment, non-farm business, and farm business activities in Zimbabwe. Research Method: This paper applies a modified multinomial logistic regression specification on a representative sample of 51,114 observations from the 2012 and 2017 Poverty, Income, Expenditure, and Consumption Survey (PICES) pooled cross-sectional data. Empirical Results: We found a strong association between assets owned and economic activity choices, but with rural-urban differentials. The findings confirm that natural assets such as land and cattle are central to rural livelihoods, and farm business remains the dominant livelihood activity. Secondly, it reveals a critical social or public policy aspect: that education is central to livelihoods in both rural and urban areas, as higher levels of education increase participation in paid employment and non-farm businesses, even across gender. Implications: Zimbabwe would benefit more by boosting social support to cover more secondary and tertiary students, rather than focusing mainly on primary education social grants. JEL Classification: D80, E58, F31
Copyright (c) 2026 Godfrey Gwatinyanya https://creativecommons.org/licenses/by-sa/4.0
Examining Underpricing in Initial Public Offering: Deepening Insights on Non-Financial Information
Research Originality: The nominal value variable from the prospectus in this study is the novelty, as no previous research has been found. Investors indicate the nominal value as a positive signal from the company to reduce existing information asymmetry. Research Objectives: This study examines the phenomenon of IPO underpricing on the Indonesia Stock Exchange, resulting in suboptimal IPO fund-raising. Research Method: Using a quantitative approach with descriptive and causality designs, the study analyzed 251 companies from 2017 to 2023 through multiple linear regression analysis. Empirical Results: Indonesia has a high IPO underpricing rate of 37.17%. Most IPOs (68.54%) were Shariah-compliant. The reputation of underwriters changed each year, and the free float ratio declined over time. On average, IPOs were oversubscribed by more than 28 times each year. Although COVID-19 affected market sentiment, it did not impact underpricing. The nominal value of IPO stocks varied each year but generally declined. Regression results show Shariah compliance and strong underwriters reduce underpricing, while higher free float, oversubscription, and nominal value increase it. Implications: The implications of this research theoretically support signaling theory and information asymmetry. Practically, this research can be a reference for further researchers, investors, companies, and the government as regulators. JEL Classification: G10, G24, G32, D82
Copyright (c) 2025 Dikanio Muhammad Rezky, A. Jajang W. Mahri, Suci Aprilliani Utami https://creativecommons.org/licenses/by-sa/4.0