International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya,

TRIO ABG MODEL AND COMPETITIVE ADVANTAGE GROWING IN CREATIVE INDUSTRY IN EAST

Gendut Sukarno1)*), Sri Mulyaningsih1), Lia Nirawati2) and Mei Retno Adiwaty1)

1) Lecturer FEB UPN "Veteran" Jawa Timur, Surabaya, Indonesia 2) Lecturer FISIP UPN "Veteran" Jawa Timur, Surabaya, Indonesia *) E-mail : [email protected]

ABSTRACT In the face of the ASEAN Economic Community (AEC) era of free markets in Southeast Asia, the business community must take strategic steps in order to face competition from other ASEAN countries, not least the business sector of the creative industries. Fourteen principal creative industries sector which has mapped the Ministry of Trade of the Republic of Indonesia has contributed to GDP is still relatively low, but have the potential for creative industries in is huge. One subsector "performing arts" quite alarming only able to contribute to the creative industries as a whole amounted to 0.10%. Trio ABG often called Triple Helix which is a synergy between Academia, Business, Government is one of the concepts in an effort to boost the growth of the creative industries. In addition, the establishment of creative industries also determined the competitive advantage of the creative industries. This study aims to assess the contribution TRIO ABG and Competitive Advantage on the growth of the creative industries in East Java performing arts. The population in this study are all owner / manager of 14 creative industry sectors with a sample of 42 creative arts industry. The analysis technique used in this study is a PLS (Partial Least Square) which is an alternative method of analysis with Structural Equation Modelling (SEM) based variance. Results of the study found that the competitive advantage of having a significant influence on the growth of the creative industries. While TRIO ABG has a non significant effect on the growth of the creative industries with the direction inverse relationship.

Keyword: Trio ABG, Competitive Advantage, creative industries performing arts

INTRODUCTION Craft, Design, Fashion, Video-Film-and The presence of the ASEAN Economic Photography, Interactive games, Music, Community (AEC) was already difficult to avoid. Performing arts, Publishing and Printing, Computer Indonesia should begin to prepare if does not want services and Software, Television and Radio, to become an easy export target by the member Research and Development. group of ASEAN. ASEAN Economic Community With the election of Joko Widodo as VII (AEC) era in 2015 brings an opportunity as President, the ministry of tourism and creative challenges for economic of Indonesia. economy had been eliminate, and to Implementation of EAC at the end of 2015, the accommodate the existence of a creative member group of ASEAN will have an experience industries that growth, finally the government a free flow of goods, services, investment, and officially establishes Badan Ekonomi Kreatif (BEK). educated workforce which to sent to his country or BEK is an institution as the same as the ministry, the others country member of ASEAN. the Head of BEK is directly responsible to the AEC will through the integration of "Free President. BEK which was formerly part of the Trade Area", removal taxes of trade among Ministry of tourism is in charge of assisting the ASEAN of members as well as labor market and President in formulating, define, coordinate, and free capital markets, it will be greatly affect growth synchronize the various policies in the field of for the economic and development for each creative economy. member of ASEAN. To deal with free market era in Based on Presidential Decree 6th/2015 about Southeast Asia, The business should take a a BEK, this institution perform the functions of the strategic step for order to face the competition with the design, formulation, determination, and AEC of members, also the creative industries implementation of program in creative econimic sector. sector, also coordination and synchronization of The Government made a Presidential planning in the implementation of policies in the Instruction 6th of 2009 about Creativity of creative economic sector. Economic Development as the basis for all Badan Pusat Statistik (BPS) said the creative stakeholders in 14 sectors economic developing industries contribute to Gross Domestic Product creative. Sub-creative of industries sectors are: (GDP) on the 9th of the 10th sectors of the Advertising, Architecture, Art and antique market, business. The contribution of creative industries to

90 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

GDP is still relatively low, but according to Adi specifically the existence of the creative industries Suryo who is The Head of Creative Industries, art and performances whose fate is increasingly Information Technology, and Media Hipmi Java on marginalized. SURYA ONLINE, 26/2/2013 said that the potential Most of protection perceived, still only in the for the creative industries in East Java is very industries of music and film, where there is a lot large, even creative industries could full filled the kind of creative industries. Contributions of export of non-oil in East Java. At now the creative academics and government seems to be improves, industries contribute about 7% of GDP Surabaya’s as the business carry a role for the creative total. On the 14 sectors, the value of produced industries. (Gibbons et al (1994) dalam The New Fashion and craft subsectors is quietly dominant, Production of Knowledge dan Nowotny et al (2001) respectively on 43.02% and 25.12% from total of in Re-Thinking Science). the contributions creative industries sector. As a concept in the main idea of Triple Helix Both of them have become lokomotof industry or Trio ABG are the power of synergy between in the development of creative industries at the academia, business, and government. Academia nation. “ The contribution of fashion and craft far have resources, science, and technology to be surpass from other types of small industries. Both focus on geberating findings and innovations. The in the value added, labor number of companies, capitalization can be provide benefit. The and the exports “ (Small and Medium government had to guarantee and maintain the Dirjen.Industry in the opening of exhibition of stability of their relationship with conducive fashion and crafts themed” Indonesia arid Craft regulatory (Etzkowitz & Leydesdorff, 2000). 2013” Thursday[27/06] This phenomenon appears that the creative industries are to survive in an industrial environment to be more superior than its competitors. The Chinese products that battered FILM, VIDEO, & ADVERTISING; PHOTOGRAPHY; PUBLISHING 7,18% local products demanding industrial / creative 0,60% & PRINTING; 4,86% INTERACTIVE industries must to be competitive advantage of GAMES; 0,37% rival products. Porter (1994) explains that the RESEARCH& DEVELOPMENT; competitive advantage is the heart of marketing 0,72% performance to face the competition. Competitive

FASHION; advantage is defined as a strategy to benefit from 43,02% CRAFTS; 25,12% companies that cooperated to create a more COMP.SERVI CE & effective competitive advantage. This strategy SOFTWARE; 1,13% should be designed to achieve continuous

MUSIC; 5,30% competitive advantage so that the creative SHOW industries can dominate the market both existing DESIGN; ART & ARCHITECTURE; TV & RADIO; ART; ANTIQUES 6,06% 3,52% 1,57% 0,10% and new markets. Competitive advantage is MARKET; 0,45% Figure 1. Average Contributions Subsector Creative th basically grew out of values or benefits created by Against the Creative Industries 2006-2013 the creative industries that exceed / dominant than Sumber : SURYA Online, SURABAYA, (27/06/2013) any other industry.

Based on empirical studies on the writer However the creative industry subsectors that interested to synergize the concept Trio ABG concern about subsector are ‘performing arts’, (triple helix) and a competitive advantage to the where the only sub-sector to contribute in the growth of the creative industries and the creative industry is only 0.10%. This deserves to performing arts in a researches. get the attention of all parties for the existence of these subsectors. The attention can be excepted METHODOLOGY from the participation of several parties, the Researches sites academic, the business, the Government, and they The location of this research is in East often called Trio ABG or Triple Helix. World of Java with the metropolis cities, so there are nine academia can contribute the researches, The cities, namely: Surabaya, Pasuruan, Probolinggo, business can contribute to the development of , Batu, Mojokerto, Kediri, Blitar, and business insight and capitalization, and the Madiun. Consideration chosen the area because in government were needed to provide protection and reality most of the creative industries flourish in the regulation of the creative industries. More

91 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia city of Metropolis, the province to municipalities large. This is in accordance with the number of that support the creative industries activity that samples in this study were 42 respondents. requires a lot of elements of information, technology, creativity, innovation. RESULTS AND DISCUSSION Soutces and data collection Data Characteristic of Respondent

The type of data required in this research are Tabel 1. Data type of 9 Cities Performing Arts in East primary data and secondary data. The primary Java data obtained directly from respondents with direct Cities Objects Type Performing Arts interview with the leaders approach the manager No. Research of creative industries art show. This interview was 1 Surabaya1 2 Surabaya2 Tradisional dance intended as a step approach to obtain data that is 3 Surabaya3 Kontemporer dance more comprehensive and clearer. 4 Surabaya4 Drama teater In addition to interviews conducted by 5 Surabaya5 Balet 6 Surabaya6 distributing questionnaires to obtain data through 7 Surabaya7 charging questions directed to creative industries 8 Surabaya8 Tradisional dance art show. While secondary data obtained from the 9 Surabaya9 Drama Teater Department of Art East Java and other related 10 Surabaya10 Campur Sari 11 Pasuruan1 Tradisional dance agencies. 12 Pasuruan2 Drama Teater The population in this study are all creative 13 Pasuruan3 Ludruk industries businesses in East Java, which consists 14 Pasuruan4 Art Jaranan 15 Probolinggo1 Topeng Tengger dance of 14 sectors. The sample in this study are the 16 Probolinggo2 Art Glipang manager / head of creative industries "Performing 17 Probolinggo3 Sapi Pajengan dance Arts" in nine cities in East Java, namely: Surabaya, 18 Probolinggo4 Jaran Bodhag Pasuruan, Probolinggo, Malang, Batu, Mojokerto, 19 Malang1 Art Bantengan 20 Malang2 Topeng dance Kediri, Blitar, and Madiun. with a sample of 42 21 Malang3 Tradisional dance respondents (small sample). The use of small 22 Malang4 Kontemporer dance sample was based on analytical techniques Partial 23 Batu1 Sanduk dance Least Sequare (PLS) which have specifications 24 Batu2 Ludruk 25 Batu3 Campur sari include: the sample size should not be large 26 Batu4 Kontemporer dance (Herman Wold, 1985). 27 Mojokerto1 Ludruk Mechanical Analysis. 28 Mojokerto2 Mayang Rontek dance 29 Mojokerto3 Art Bantengan Data analysis technique in this research is by 30 Mojokerto4 Kontemporer dance using a Partial Least Sequare (PLS). The new 31 Kediri1 Art Jemblung approach introduced by Herman Wold (1985), are 32 Kediri2 Art Jaranan Partial Least Square (PLS) and is often called soft 33 Kediri3 Art Drama 34 Kediri4 Tradisional dance modeling. PLS is made possible by using structural 35 Blitar1 Art Mocopat equation modeling with a relatively small sample 36 Blitar2 Art Jaranan size and does not require the assumption of 37 Blitar3 Art Wayang Orang 38 Blitar4 Art Drama multivariate normal. In addition to assuming the 39 Madiun1 Reog problems of distribution and the number of data, 40 Madiun2 Tradisional dance another obstacle facing structural modeling using 41 Madiun3 Kontemporer dance LISREL are an indicator (manifest variables) 42 Madiun4 Wayang Orang research is only possible reflective (latent variables Characteristic of respondent by gender explain the manifest variables), it is not possible to Based on the results of questionnaires to 42 be formative indicators (manifest variables performing arts manager of the creative industries explaining latent variable). By using PLS the gained an overview of respondents by gender is as research are reflective and formative. follows. PLS method has its own advantages such as: data does not have a multivariate normal distribution (with a scale indicator categories, ordinal, interval until the ratio can be used on the same model) and the sample size should not be

92 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

Diagram 2. Data characteristic of respondent by gender Diagram 4. Data Charasteristic respondent by age

Pria Wanita 30-40 th > 40-50 th > 50-60 th 19,04% 26,19% 23,81%

76,19% 54,76%

Based on the above diagram is known that

Based on the above diagram is known that the age of creative industries performing arts most of the respondents are male as much as managers mostly aged between 40-50 years of as 76.19%, and as much as 23.81% of female sex. much as 54.76%, age 30-40 years of as much as Although the creative industry sub-sectors related 26.19%, while the remaining age of 50-60 years of to the many performing arts of dance, however as much as 19.04%. An interesting thing is that the sub-sectors are managed by men as well as age is in the range of half a century (age> 40-50 leaders and coaches. years) is no longer young age actually occupy the highest portion. It can be understood that the sub- Characteristic of respondent by level of sector of the performing arts is an art that is not education much in demand by the public as actors and Based on the results of questionnaires to 42 audience, especially as consumers. performing arts manager of the creative industries gained an overview of respondents by level of Characteristic respondent by the number of education was as follows. employees who are empowered Based on the results of questionnaires to 42 Diagram 3. Data Characteristic of respondent by level of performing arts manager of the creative industries education gained an overview of respondents by the number SMA S1 of employees who are empowered is as follows.

28,57% Diagram 5. Data Characteristic respondent by the number of employees who are empowered 71,43% s/d 5 orang 2,38% 33,33% 64,29%

Based on the above diagram that the level of education of creative industry manager of the performing arts most of the respondents have a Based on the above diagram is known that high school education level as much as 71.43%, the number of employees who are taken and 28.57% had education level S1. The advantage of performing arts manager of the interesting phenomenon is that the performing arts creative industries most of which are just a few to 5 managers mostly just high school, which is not employees as much as 64.29%, 6-10 employees higher education is expected to have no impact on as much as 33.33%, while the remaining 11-15 the growth of the creative industries art show. employees as much as 2.38% , This phenomenon Characteristic respondent by age can indeed be understood that the sub-sector of Based on the results of questionnaires to 42 the performing arts did not have to empower performing arts manager of the creative industries employees to use in large quantities, usually a gained an overview of respondents by age is as common employee as helpers / assistant coach. follows. Characteristic respondent by marketing reach Based on the results of questionnaires to 42 performing arts manager of the creative industries

93 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia gained an overview of respondents by marketing specific area missal Cultural Park Cak Durasim reach is as follows. Surabaya, or at Taman Mini Indonesia Indah.

Diagram 6. Data Characteristic respondent by Discription The Research Variables marketing reach Trio ABG Lokal Trio ABG is a concept which is the creation of 7,14% synergy of three poles, such as academics, 30,95% business, and government has a goal of 61,90% sustainable economic development based on knowledge, the description of these variables can be seen in the following table. From the following table it appears that the response of respondents to the existence of TRIO ABG in the creative Based on the above diagram is known that industries has not touched the performing arts as the marketing range of creative arts industry well as questions on the spread. It is apparent from results largely still be in range of local as much as the 6 point to questions mostly range in a score of 61.90%, 30.95% as much as a bona fide regional 2 (disagree) with an average (mean) of 2.55. This marketing reach, and the remaining 7.14% have a implies that the role of TRIO ABG (Triple Helix), national reach. The above figures may be clarified both from the academia, business, and that the performing arts is mostly to be enjoyed government does not yet appear in his involvement among the people around, if it can reach a regional in the support / fostering creative industry sub- or national is usually because there is an agenda / sector performance art. invitation from the government to perform in a

Table 2. The Frequesncy of Trio ABG Assessment Score No. The statement in question 1 2 3 4 5 Average STS TS N S SS 1. My business is often used as a 0 24 15 3 0 2,50 research and development of high- perguruan (College of care) 2. My efforts often get a help resource 0 24 17 1 0 2,45 (HR, tools/work facilities, funding) of universities 3. My business often gets the 0 21 19 2 0 2,54 assistance in the production / produce works of art from the manufacturer / per company 4. Business I often get a relief in komer 0 25 16 1 0 2,43 clicking sialkan artwork from the manufacturer / company 5. The Government as a regulatory / 0 16 21 5 0 2,74 regulatory, often mengutungkan for the purposes of performing arts 6. The Government often gives the 0 18 20 4 0 2,67 coaches an entrepreneurial spirit for the purposes of performing arts TOTAL AVERAGE 2.55 Source : primary data 2016

Competitive advantage considered as an advantage, as the questions in Competitive advantage is defined as a the spread. It is apparent from 7 points to strategy to benefit from companies that cooperated questions mostly range in a score of 2 (disagree) to create a more effective competitive advantage in with an average (mean) of 2.62. It implies that the the market, the description of these variables can competitive advantage existing in the sub-sector be seen in the following table. creative industry performance art has not From the following table it appears that the appeared to say as a competitive advantage that respondent's response to competitive advantage in should be reliable, both in terms of promotion, the creative industries performing arts can not be

94 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia product / work to be produced, competitive prices, product variation, as well as product distribution.

Table 3. Competitive adantage Assessment Score No. The statement in question 1 2 3 4 5 Average STS TS N S SS 1. Promotion of performing arts have done 0 23 15 4 0 2.55 quite often, and have no trouble 2. Products / works that will be generated 0 23 17 2 0 2.50 by art and performances tailored to the demands or consumer tastes 3. Prices were sold always adjusted to the 0 21 19 2 0 2.55 quality of work of the performing arts 4. Produce the product / artwork of various 0 18 21 3 0 2.64 types / variations / models based on the order of candidates subscriber / viewer 5. Products pertunjuk an artwork produced 0 16 21 5 0 2.74 the market to various places 6. Marketing of products to the air like the 0 18 20 4 0 2.67 area right selectively dilaku 7. Mastery areas / sales regions performing 0 18 20 4 0 2.67 arts products is a matter that must be considered for marketers art pertunukan TOTAL AVERAGE 2,62 Source : primary data 2016

Growth of Creative Industries performing arts can not be considered to grow well The growth of the creative industries is a as questions on the spread. It is apparent from change that comes from increased industrial point 5 to questions mostly range in a score of 2 utilization of creativity, skills and individual talents (disagree) with an average (mean) of 2.48. This to create wealth and jobs by generating and implies that the growth of performing arts exploiting the creativity and inventiveness of the subsector good views of earnings growth, sales individual, which is a description of these variables growth, new product launches, employment can be seen in the following table. From the opportunities for new employees, as well as the following table it appears that the respondent's growth of creativity. response to the growth of the creative industries

Table 4. Growth of Creative Industries Assessment Score No. The statement in question 1 2 3 4 5 Average STS TS N S SS 1. My efforts, have strong profit 0 25 15 2 0 2.45 growth 2. My business has increased sales 0 24 15 3 0 2.50 growth 3. My efforts, melaku the launch of 0 19 20 3 0 2.62 new products in accordance with the targeted 4. My efforts, provide employment 0 19 20 3 0 2.62 opportunities for new employees increased from time to time 5. The growth of my business, 0 19 19 4 0 2.19 resulting in increased creativity from time to time TOTAL AVERAGE 2.48 Source : primary data 2016

Statistical Results Relationship model with dimensions variable Outer Loading (Model Measurement and in the variable Trio ABG is a form Reflective, as validity) well as relations with the indicator variable in the First Order (Model with Dimensional variable Competitive Advantage and Creative Measurement Indicators and Indicators Variable) Industries Growth is Rfelektif, then I rate measurement model is to look at the value of factor loading on the outer table loading.

95 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

Tabel 6. Outer Loadings (Factor Loading) Academic Business Government Keunggulan Bersaing Pertumb Industri Kreatif Ak2 1.000000 Bus2 1.000000 Gov1 0.859717 Gov2 0.705484 KB2 0.708055 KB4 0.773167 KIK2 0.716178 KIK4 0.853146 Source: the results if the data

Validity Indicator: Factor Values greater than KB2 and KB4 is becoming gauge / indicator 0.5 Loading Loading Factor is a correlation variable Competitive Advantage between the indicator variable, if it is greater than Growth of Creative Industries in the variable 0.5 indicators are becoming gauge / indicator of indicates that the indicator is having a KIK4 KIK2 variables. loading factor greater than 0.50, the indicator KIK4 Based on outer loading table above, the KIK2 is becoming gauge / indicator variable dimension AK2 Academic indicate that the Creative Industry Growth. indicator is having a loading factor greater than 0.50, the indicators AK2 is becoming gauge / Second Order (Variable Dimensional indicator Academic dimension. On the dimension Measurement Model) Business shows that bus2 indicators that have loading factor greater than 0.50 then the bus2 Variables relationship model with variable indicator is becoming gauge / indicator dimensions dimensions in the Trio ABG, is Model Reflective, Business. On Competitive Advantage variable then to see the model of measurement to see indicates that the indicator KB2 and KB4 is having significant value in the outer table of weight each a loading factor greater than 0.50, the indicator dimension.

Tabel 7. Outer Weight (Model T-Statistic) Original Sample Sample Mean Standard Deviation Standard Error T Statistics (O) (M) (STDEV) (STERR) (|O/STERR|) TRIO ABG -> 0.722764 0.482084 0.497370 0.497370 1.453171 Academic TRIO ABG -> 0.699206 0.531150 0.444633 0.444633 1.572545 Business TRIO ABG -> -0.569959 0.153538 0.626845 0.626845 0.909251 Government Source: the results if the data

The test results in table loading has pointed Academic, Business and Government, has a value out that only the outer dimensions of Academic, greater than 0.5, so valid. Business and Government at ABG Trio variable has a value of loading factor greater than 0.5. So it Tabel 8. Average variance extracted (AVE) can be concluded that all three dimensions are as AVE Academic 1.000000 dimensions and variables forming Trio ABG. Business 1.000000 The next measurement model is the avarage Government 0.618410 value Variance Extracted (AVE), a value showing Keunggulan Bersaing 0.549564 Pertumb Industri Kreatif 0.620384 the amount of variance indicators contained by the TRIO ABG 0.644547 latent variables. Convergent value greater AVE Source: the results if the data adequacy 0.5 also shows good validity for the latent variables. In the reflective indicator variables In high overall estimation results have met can be seen from the avarage variance extracted Convergen vailidity and validity either. (AVE) for each construct (variable). Required a The next measurement model is the reliability good model when the value AVE of each construct of the construct measured by the value of is greater than 0.5. The test results show that the composite reliability, construct reliable if the AVE to construct (variable) Trio ABG, Competitive composite value reliability above 0.70 then the Advantage and Industrial Growth and dimensions indicator is called consistent in measuring latent variables. The test results indicate that the

96 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia constructs (variables) Trio ABG, Competitive free) in the model is able to explain the Advantage and Industrial Growth and Dimension endogenous variables (dependent / dependent). Academic, Business and Government, have the reliability of composite value of greater than 0.7. Tabel 10. R-square So reliable. R Square Keunggulan Bersaing Pertumb Industri Kreatif 0.738292 Tabel 9. Composite Reliability TRIO ABG Composite Reliability Source: the results if the data Academic 1.000000 Business 1.000000 Value R2 = 1- (1- 0.7383) = 0.7383. It can be Government 0.762474 Keunggulan Bersaing 0.708916 interpreted that the model is very good and is able Pertumb Industri Kreatif 0.764361 to explain the phenomenon / problem Creative TRIO ABG 0.712936 Industries Growth of 73.83%. While the rest Source: the results if the data (26.17%) is explained by other variables (besides

Inner Model (Pengujian Model Struktural) Trio ABG, Competitive Advantage) that have not Tests on the structural model is done by been entered into the model and error. This means looking at the value of R-Square which is a test for that growth is affected by the Creative Industries goodness-fit model. Testing of the model can be Trio ABG, and the Competitive Advantage of seen the inner workings of the R-square value on 73.83% was at 26.17% influenced by other equality between latent variables. The R2 explain variables besides Trio ABG, and Competitive how big an exogenous variable (independent / Advantage. Path Analysis

Furthermore, it can be seen on the inner path coefficient models.

Uji Kausalitas (Results for inner weights)

Tabel 11. Path Coefficients (Mean, STDEV, T-Values) Original Sample Sample Mean Standard Deviation Standard Error T Statistics (O) (M) (STDEV) (STERR) (|O/STERR|) Keunggulan Bersaing - 1.143089 0.998254 0.183674 0.183674 6.000238 > Pertumb Industri Kreatif TRIO ABG -> Pertumb -0.331065 -0.126467 0.234151 0.234151 1.326746 Industri Kreatif Source: the results if the data . Competitive advantage significant positive effect on the growth of the creative industry with a path coefficient of 1.1020, where the value of T-Statistic = 6.0002 is greater than the value of Z α = 0.10 (10%) = 1.645 . TRIO ABG Non Significant influence on the growth of the creative industries with a path coefficient of -0.3106, where the value of t-statistic = 1.3267 less than the value of z α = 0.10 (10%) = 1.645

97 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

DISCUSSION production and commercialization of works of Competitive Advantage Effect on Growth of performance art. The same thing was also found Creative Industries weak role of the government in terms of regulation The test results indicate that the competitive works and the development of fields of advantage of having a significant influence on the entrepreneurship. growth of the creative industry in the direction of With the weakening of the ABG TRIO positive relationships. That is a competitive dimension will take effect changes weakened advantage really able to effect change or increase against the growth of creative indistri. to the growth of the creative industries. The This is not in accordance with the research stronger the competitive advantages possessed conducted by Sukarno (2014), "Fashion Creative components, increasing the growth of creative Industry Growth Through Human Capital and industries. It is to be expected because of the Institutional Change TRIO ABG" produced strong competitive advantage reflected indicators findings: Institutional Change Trio ABG is able to include: excellence in the field of promotion, contribute significantly to the growth of fashion's excellence in the areas of price, excellence in creative industries in Surabaya. This phenomenon product / artwork on the basis of customer needs, shows that the role and sinergytas TRIO ABG is excellence in product variants / artwork, excellence still weak and not able to give a positive change on in the field of marketing distribution. With the the growth of the creative industries. growing primacy of these indicators will take effect changes to the growth of creative indistri. CONCLUSIONS AND IMPLICATIONS This is according to research conducted by Conclusion Sukarno (2009): "Increasing Performance Through 1. Competitive advantage significant positive Small Business Sources of Competitive Advantage effect on the growth of the creative industries. for Marketing" produced findings: The sources of Competitive advantage in the creative competitive advantage to improve the performance industries performing arts in East Java has of small businesses is significant. The same thing been able to become a competitive advantage by Sukarno and Sari (2012): Competitive to compete with other industries and contribute Advantage Through "SANTRI" Community In to the growth of the creative industries art show. Improving Performance "produced findings: 2. Trio ABG is still not able to contribute to the Competitive Advantage is able to improve the growth of the creative industries in East Java performance of the small cap industry. performing arts. The role of the helix to the 3 actually exist but it is minimal and without any TRIO ABG Effect on Growth of Creative sinergytas, thus Trio ABG's role has not been Industries able to contribute to the growth of the creative The results show that TRIO ABG non industries art show. Significant influence on the growth of the creative Implications and Recommendations industries with the direction of the relationship is 1. Weak Trio ABG's role in the creative industries not unidirectional. ABG TRIO That is really not including performing arts related to the research been able to effect change or increase to the and development as an indicator of Trio ABG. growth of the creative industries, even the changes Should the creative industries, the government are not unidirectional. The stronger the dimensions could soon meralisasikan tax incentives through TRIO ABG, increasingly less able to increase the reduced costs incurred when the research and growth of the creative industries. It is to be development into a deduction from taxable expected because of weak TRIO ABG reflected income. Thus, the competitiveness of creative dimension among others: Academic, Business, industries in the country could be better. Government, namely: Academic: R & D, human Likewise associated with the commercialization resources; Business: production, of products dihararapkan role of industrial commercialization; and Government: regulatory, (business) in partnership with the creative arts and entrepreneurship. That phenomenon occurs industry was further enhanced and intensified. as a result of a lack of concern for the academia to Performing arts creative industries in East Java the performing arts in terms of research and appreciate and need all the attention to the development and human resource development. improvement and enhancement of the role of Likewise, in terms of the businesses lack Trio ABG. Creative industries performing arts in awareness of the performing arts in terms of 98 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

East Java appreciated and needed once the Inga A. Ivanova and Loet Leydesdorff.(2014). Rotational role of all three institutions (Trio ABG) is, but Symmetry and the Transformation of Innovation Systems in a Triple Helix of University-Industry- more important is not only the role of the three Government Relations. Technological Forecasting institutions that do partially tend to be static, but and Social Change 86 (2014) 143 the role sinergytas with the change of each - 156;http://dx.doi.org/10.1016/j.techfore.2013.08.02 masing institutions (academics, binis, and 2 Leydesdorff, Loet (2005), The triple helix model and the government). study of knowledge-based innovation systems, International Journal of Contemporary Sociology, o The role of the institution Academia (A) to Vol. 42, no. 1, pp 1- 16 provide transfer of knowledge in the creative Mulyaningsih, Sri, 2012, Strategi Pengembangan Pasca industry business actors can not act alone, but Peningkatan Kinerja pada UKM Sandang di required the institution of business (B), as well Sidoarjo, Hasil Penelitian Mandiri Idola LPPM UPNV.Jatim as the role of government (G). Not only Mulyaningsih, Sri, 2014, Penelitian Fundamental: involvement Trio ABG, but necessary changes Strategi Relationship Marketing Terhadap Retensi to the institution of the helix 3. 3 Changes to Pelanggan: Studi Restoran di Surabaya, Hasil the institution should be done immediately, Penelitian Skim Hibah Fundamental university research to SMEs do not just target Porter, Michael E. (1994). Keunggulan Bersaing: research grants, but needs to be followed up Menciptakan dan Mempertahankan Kinerja by the Focus Group Discussion and mentoring Unggul. Terjemahan BinaRupa Aksara. : constant effort. Businessman / Industrial in Bina Rupa Aksara giving attention to SMEs / creative industry Sukarno, Gendut, Permanasari, Resi, (2012). Competitive Advantage Through “SANTRI” players have to change the mindset that SMEs Community In Improving Performanve, GLOBAL not sebgai object but as a partner in the NETWORK International Journal Of Business commercialization of a business venture. Role Management, Volume 5, Number 2 August 2012 of Government (G) for not taking its populist Sukarno, Gendut, 2009, Meningkatkan Kinerja Usaha policies but policies are now significantly in Kecil Melalui Sumber2 Keunggulan Bersaing favor of the bargaining position of creative Bidang Pemasaran, Seminar Nasional Teknik industries in the face of the MEA. What needs Industri & Manajemen Produksi IV ”Improving to be understood that creativity creative Competitiveness Through Strategic Alignment, 20 industries are not only based on talent alone Agustus 2009, MMTI ITS Surabaya Sukarno, Gendut, 2010,Kendala Mencapai Keunggulan but it is possible through education on the role Bersaing Usaha Kecil Menengah di sinergytas Trio ABG. Need maximized the role Surakarta, Call For Papers Sidang Pleno ISEI XIV of financial institutions supporting the creative Revitalisasi UMKM untukMenggerakkan industries to better gain access to venture PerekonomianNasional, 20-22 Juli 2010, Bandung capital funds and funds Corporate Social Sukarno, Gendut, 2013, Menumbuhkan Industri Kreatif Responsibility. Di Surabaya, Seminar Nasional & Sidang Pleno ISEI XVI “Mempercepat Penguatan Daya BIBLIOGRAPHY Saingekonomi Daerah Menghadapi Masyarakat Barney, J.B.,, 1991. Firm Resources and Sustained Ekonomi Asean 2015”, 18–20 September 2013, Competitive Advantage, Journal of Management, 18–20 September 2013, Abadi Suite Hotel Jambi Vol.17, No.1, pp.99-120. Sukarno, Gendut, dan Nirawati, Lia, 2013, Model Adiwaty, Mei Retno, (2012), Terpuruknya Community Development Dalam Pola Corporate Pemberdayaan Pedagang Kaki Lima Dalam Social Responsibility Untuk Meningkatkan Kinerja Implementasi Otonomi Daerah, Hasil UKM, Hasil Penelitian (SKIM Hibah Bersaing, DIPA PenelitianFakultas Ekonomi UPN “Veteran” Jawa Kemdikbud Kopertis Wil VII), 2013 Timur, 2012. Sukarno, Gendut, 2014, Pertumbuhan Industri Kreatif Fesyen Melalui Human Capital Dan Perubahan Departemen Perdagangan Republik Indonesia, (2008). st “Pengembangan Ekonomi Kreatif Indonesia Institusi, Call For Paper Bank Indonesia 1 East 2025 :Rencana Pengembangan Ekonomi Kreatif Java Economic Forum 2014 (EJAVEC) : Indonesia 2009 – 2025”. Mendorong Transformasi Ekonomi Jawa Timur Etzkowitz, H & L. Leydesdorff, (2000). The Dynamics of Menuju Masyarakat Mandiri dan Dinamis, 28 Innovation: from National Systems and ‘Mode 2’ to Oktober 2014, Universitas Airlangga a Triple Helix of University-Industrygovernment. SURYA Online, SURABAYA, (27/06/2013), Diakses : Research Policy 29: pp. 109-123. 2013-07-18, pukul 10.20 Gibbons et al, (1994).The New Production of Knowledge Surabaya Post Online, Kamis, 08/03/2012 | 12:51 WIB, dan Nowotny et al (2001) dalam Re-Thinking Industri Kreatif Jatim Belum Maksimal, Diakses Science : 2013-07-10, pukul 09.07 Helen Lawton Smith and Loet Leydesdorff. (2012). The Triple Helix in the Context of Global Change: Dynamics and Challenges, Prometheus (in press).

99 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

INVESTMENT INCENTIVES MODELS AND STRENGTHENING INSTITUTIONAL CAPACITY IN THE DISTRICT NGAWI EAST JAVA

Saiful Anwar1)*), Dhani Ichsanuddin Nur1), Sulastri Irbayuni1) and Nurjanti Takarini1)

1) Lecturer Faculty of Economics and Business UPN Veteran East Java *) Email: [email protected]

ABSTRACT In an effort to increase investment, institutional capacity, and the welfare of the people in Ngawi, require real acts to optimize the management of available resources, both natural resources, human resources, and the infrastructure. Therefore, efforts to prepare and formulate policies and strategies that lead to the development model of investment incentives and the strengthening of institutional capacity investment in Ngawi. The aim of this study is to formulate a model of investment incentives and institutional capacity to improve the welfare of society and local revenue Ngawi accordance with the potential and the problems faced. The study was conducted in the relevant agencies in Ngawi as well as the Investment Board and Integrated Licensing Services, Board of Food Security, the Department of Industry and Investors. Results can be summed value development investment in the industry is increasing, and it has considerable potential for businesses to invest so it can absorb more manpower Key Words: Investment Incentives, Strengthening Institutional Capacity

INTRODUCTION improvement is expected to open up opportunities Development success is often attributed to the and development priorities as well as stimulating growth rate of industrial sectors that are linkages of development among regions mover considered closely related to the productivity of the prime accelerated development. workforce (Todaro, 2000). The whole sector is In this regard the potential of natural expected to contribute significantly to the resources should be developed for economic availability of jobs, which in turn is expected to activities based on natural resources that can increase the production sectors of the economy improve regional development, raise living which will increase local revenue anyway. High standards of the people, and create jobs. The ability of the economic sector in absorbing the strategy needs to be supported by a variety of workforce in increasing productivity is an indicator aspects, among others, capital, role of local of the progress of a region. Basically, it is the government, entrepreneurs and local businesses economic development of a region that is to performers, as well as the coordination of the improve productivity and the increase in local various involved agencies in supporting the revenue as real. community economy by improving the Economic development in Indonesia which is competitiveness of products. The condition above growing rapidly been giving increasing public describes the natural resource management welfare. This indicator can generally be seen from policies that are less than optimal. Therefore, it the increase in per capita income over time as well needs to be maintained and enhanced in the future as an increase in a variety of infrastructure and through the creation of an investment climate that public facilities. The industrial sector both services is conducive to achieve the regional vision and and manufacturing growing rapidly in supporting mission. In other words, there is a reciprocal non-oil exports and agribusiness. However, if relationship between the natural resources observed more deeply, the increase in per capita potential and the investment policy. In this case, income over time is basically concentrated in the factor NR is a pull factor that can stimulate or certain groups. So in fact the level of social welfare invite investment; otherwise the investment could cannot be enjoyed equally by the public. This be seen as a push factor that can provide value condition if sustained would have a negative added to the abundant potential NR If this can be impact on the continuance of national done, then the investment has been able to bring development. the transformation process from the comparative The economic potential of Ngawi district advantage base of a region into the competitive mainly found in agriculture, forest resources, advantage. trades and services sectors. The huge potential An investment incentive policy can be requires efforts in a way that people can drive the assessed its effectiveness through: the people economic growth. The systems approach development of the volume and value of the and efforts to increase investment and institutional investment after the policy is applied, and the

100 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia impact of investment of the regional economic 1) Standards of achievement can be measured growth, the employment and the growth of other quantitatively. economic support. 2) Standards of achievement above can be LITERATURE REVIEW used as the basis for remuneration which is Policies aimed at increasing investment will measured in terms of money. stimulate economic activity of a region. Many 3) Employees should be more active in order to benefits will be gained from investing activities, receive more money. namely employment, output increase, and the Investment increase of foreign exchange. By paying attention Consumption and investment are two closely to the development of SMEs that more work force related activities. Postponement of current intensive so that the rapid development in this consumption can be interpreted as an investment sector will positively impact to the reduction of the for future consumption. Although the sacrifice of unemployment rate and reduce inequality. This will present consumption can be defined as the encourage increased investment of an area consumption to investment for the future, but the (Department of Cooperatives and UMK in East sense of extensive investment requires the Java, 2011). efficient production opportunity to convert one unit Incentive of consumption resulting be postponed for more It is a wage that give the different rewards than one unit upcoming consumption. Jogiyanto because the different achievements. Two people (2008) defines investment is a delay current with the same job title can receive different consumption to use in the efficient production incentives because it depends on achievement. during a particular time period. According to Incentives are a form of financial impetus to Tandelilin (2001), investment is the commitment employees as the remuneration of company to its over a number of funds or other resources were employees on the employee performance. The done at this time, with the goal of obtaining a incentive is a sum of money that is added to the number of advantages in the future. Someone’s basic wage given by the company to employees aim to make an investment is to increase the value (Ranupandojo and Husnan, 1984). Meanwhile, of the total utility of a product. according to Panggabean (2002) incentive is a There are two kinds of investments: compensation linking salaries to productivity. An a. Outonomous Invesment incentive is an award in the form of money given to Fixed investment is an investment in the those who can work beyond the standards set. The amount which not dependent on the amount of main function of the incentive is to give income. Fixed investment is generally used to responsibility and encouragement to employees. obtain the factors of production are fixed, such Incentives guarantee that the employee will direct as: machinery, buildings, land, investment to its efforts to achieve organizational goals. While set up businesses. These investments are not the main purpose of the incentive is to increase determined by income, but it can increase labor productivity of individuals and groups national income. (Panggabean, 2002). b. Inoced Invesment More specifically the purpose of incentives investment is encouraged investment amount can be divided into two groups, namely: depends on income. inoced investment that a. For Company. depends national, meaning that if the income The purpose of the implementation of incentive increases, the investment will also rise. in the company, especially in production Factors That Affect Investment activities is to increase employee productivity a. Expected Rate Of Return by means of encouraging/stimulating in order to The ability of the company determines the employees: expected investment level, is heavily influenced 1) Work more vibrant and fast. by the internal and external conditions. 2) Work more disciplined. 1. Internal Conditions Company 3) Work more creatively. Internal conditions are factors that are under b. For Employees the control of the company, for example, the Given the incentives the employees will benefit level of efficiency, quality of human of: resources and the technology used. 2. External Conditions Company

101 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

External conditions that need to be Institutional more aimed at organization in considered in the decision to invest primarily which an organization to function as a place or is an estimate of the level of production and container which includes rules, code of ethics, economic growth domestically and attitudes and behavior of a person or organization internationally. in a system. Institutions can be divided into two b. The investment costs types, namely he formal institutions and non-formal The most determines the level of investment institutions (http://mardianpratama10.blogspot). costs is the rate of interest on the loan; the Institutional is a relationship and order among higher the interest rate, the cost of the members of the public or organizations attached, investment is more costly. As a result, interest contained in a network or organization that can in investing decline. But not infrequently, determine an organization relationship is despite the low interest rate loan, ask the determined by the limiting factors. Institutional investment will remain low. This is due to the system includes procedures based on the total investment cost is still high. Factors provisions, the instruments established by the law, affecting primarily an institutional problem. and the institutions that related in it are also based c. Marginal efficiency of capital (MEC), tingkat on public law. bunga, dan Marginal Efficiency of Investment Financial institutions have a strategic function (MEI) in the economy, in which the function can be 1) Marginal Efficiency of Capital (MEC), considered as intermediation in business activity. If investment, and interest rate. as an intermediary function is well, then the What is meant by the marginal efficiency of financial institution in question can provides capital (MEC) or marginal capital efficiency economic added value in a business. Thereby, the (EMM) is the expected rate of return more develop of business activities will require a (expected rate of return) of any additional compliance with capital or funds for businesses capital goods. performers will also increase. Thus, the means and 2) Marginal efficiency of capital (MEC) dan facilities of funds provision required by the marginal efficiency of investment (MEI) entrepreneurs will also be greater, considering the Similarly, the demand curve for investment, financial institutions as the potential alternative nationally MEC curve can be derived by financing in supporting the national economy. summing horizontally. MEC curves of Djogo et.al (2003) also mentioned that in general, companies that exist in the economy but the definition of institution included the concept of there are some economists who do not social behavior patterns entrenched and ongoing disagree with how the decline curve MEC or recurring. Institutional also include regulations and So it can be concluded that the investment legislation applicable to both the central (Investment) is spending or shopping planters government and local government as well as capital or companies to purchase capital goods socio-economic institutions in the region. and production paraphernalia to increase the According to Law No. 32 of 2004 is the regional ability to produce goods and services available in autonomy is the autonomous regional authority to the economy. Investment or capital formation is the regulate and manage the interests of the local second component that determines the level of community at its own initiative based on the aggregate expenditure. aspirations of the people in accordance with the Investment incentives legislation. Thus the regional government has the Incentives offered or something offered by the authority to regulate and manage the interests of government though and the local governments to society by using existing potentials in the area and stimulate to do of the investment or the so-called is also expected to explore the sources of finance, investors in all sectors, especially the private especially to meet the financing needs of sector, both generally and in specific areas, where government and regional development through the government provides stimulus in the form of revenue (PAD). capital assistance (subsidy) for equipment, tax RESEARCH METHOD exemptions of any revenue. The aid depends on The Model of Investment Incentive and The each region. Strengthening of Institutional Capacity were Institutional implemented in 2 approaches, namely:

102 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

1. Data Collection sustainable in order to boost the economy and - The identification of the economic potential welfare of the community. condition in the region of Ngawi Regency of Originally industrialization relied upon as a both primary and secondary data. model of development that will be able to solve the Secondary data were in the forms of backwardness problem of developing countries. economic potential, competitiveness, However, after the crisis, it is precisely the infrastructure, spatial, institutional, icons of development of the agricultural sector into a new the town and the investment potential in the hope in the construction of a third world country, Ngawi cities, which was obtained by especially Indonesia (Soetrisno; 1999) exploring the data from the Central Bureau With the enactment of Law No.32 / 2004 and of Statistics, Master-plan Ngawi cities, Law No.33 / 2004 on regional autonomy policy, Ngawi cities Medium-Term Development has pushed regions in Indonesia to develop the Plan, and several predecessor studies. territory with all the potential and available While for the primary data it was made field resources. The regional autonomy policy survey on the state of municipal emphasizes the Regency / City to manage local infrastructure, market potential, hustle knots development in accordance with their own needs of the town, in order to be obtained validity and abilities. and confidence on data then it made Firman (1999), area development must be confirmation by conducting in-depth oriented to local development (local development) interviews on stakeholders. in order to encourage the participation of local - Institutional Identification in the city of Ngawi communities, in order to develop existing , included the financing facilities from the resources more independently, with initiatives that supporting financial institutions, as well as grow locally anyway. The last monetary crisis, has the existing infrastructure in the town of managed to also prove the toughness of Ngawi Indonesian agricultural sector which over the years 2. Obtain a potential description yielding of ratcheted by industrialization development sustainability, industrial critical point through a paradigm. Agricultural development in Indonesia is description of the data obtained from the still considered the most important of the overall survey, observation and interviews to determine economic development. Some of the reasons the key factors and variables related to the underlying the importance of agriculture in preparation of a model of investment incentives. Indonesia, and in particular for those areas in THE RESULTS ACHIEVED Indonesia, namely: Regional economic growth is, basically, 1. The potential resources are large and varied. influenced by the comparative excellence of a 2. The share of the national income is large region, area specialization, as well as economic enough. and natural potentials possessed by the region. 3. The amount of people who depend on Therefore, utilization and development of all the agriculture. natural and economic potentials to be a top priority 4. Become a growth base in the countryside that must be explored and developed in implementing the local economic development as There is the potential for superior products at Ngawi.

103 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

Table 1.products featured of Ngawi Product Categories Types of products 1 Wood Craft Unique Primitive - Crafts and wood furniture - Wall of Wood - Various furniture of teak wood wastes - Variety and furniture teak wood stump Crafts - Variety wood crafts roots 2 Polypropylene Webbing Bags - Webbing bags 3 Batik - Handmade batik - Cain jumputan, painted veils 4 Variety of refined foods - Tempe crips - Sambel Pecel - Lele Crispy dan Abon Lele - Banana crips, cassava, purple sweet potato - Snail Crispy - Nata De Coco - Rambutan (Ace) rasa Kurma - ketchup - Tea 5 Handicraft - Grafir Glass - Painting bag

The investment potential in Ngawi as follows: a touch more exclusive designs to attract a. The Agricultural Sector consumers abroad. For an investment of Potential investments in the agricultural sector processed foods, one of them crispy Tempe in the form of commodities: rice, soybeans, already have a product quality similar to export bananas, melons, sugarcane and tobacco, quality, but it's just not exporting independently, because of any of these commodities have still on behalf of employers crispy Tempe of harvested area and production quantities are Malang. And crispy Tempe produced is not a very large compared to other agricultural pure product of superior because the raw commodities. Basically, agriculture is still the materials are imported. The development of mainstay sector for Ngawi. of the total 129 589 industrial sector in Ngawi a running slowly but hectares, of which 50 566 ha, or approximately steadily increasing. Small industrial sectors / 39.02% is large enough to absorb labor for Crafts of household labor absorbing 40 826 Ngawi district population. Paddy is the largest people in 2014, increased 0.61 percent in production followed by the production of 2013, as much as 40 577. Industrial goods from cassava, maize, soybean, potatoes, peanuts wood and the like as a subsector which the and green beans. This potential is large enough most labor absorb to 20 795 workers. because of agriculture in Ngawi in addition to Investment incentives meeting the needs of area residents Ngawi Incentives offered or something offered by the itself well to the needs of other areas (such as government nor local governments to stimulate to Madiun, Sragen and Solo) and some the conduct of the investment or the so-called commodities have been exported. Regarding investors in all sectors, especially the private business opportunities, Ngawi prioritize the sector, both generally and in particular field, where agricultural business with organic-based the government provide stimulus in the form of a integrated farming systems that are capital aid (subsidy) for equipment, exemption environmentally friendly. from any income tax. The aid depends on each b. Small Industrial Sector region. As for investment incentives in Ngawi in the Investment potential in small industrial sector in agricultural sector investment only in rice yields, in the form of superior products, some of them is the form of loans PUPN in the form of a loan with Woodwork Unique, webbing Bags, Batik, and no interest for 6 Gapoktan (Farmers Group) in processed meals. Investment potential unique Ngawi. As for sales in the form of paddy, farmers wooden crafts, and webbing bags , the quality in collaboration with designated partner. As for the has been penetrate the export, however to industrial sector there has been a relief institution unique wood still on behalf of employers from that provides investment incentives in the form of Jepara. As for a webbing bags plastic still need industrial equipment, to loan funds its small

104 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia industry filed own, without going through the investment, in addition to the development of the relevant institutions. Investment incentives in the banking financial institutions for the investment form of tax, currently at Ngawi not available, still finance cannot be separated from the refers to the tax law. characteristics of financial institutions that provide Institutional System convenience to entrepreneurs in accessing In decisions taking related to the public financing sources. This institution is very important interests, it needed legitimacy for the institutional because the as formal and legal it will support and system to support the role of systems in underlying the business operations of investment implementing the process of planning and fields. Nevertheless, it should be avoided the development. The good institutional system will provisions that may hinder the development of directs the efforts to achieve the goals of financial institutions of investment financing. development and its formation. Legitimacy here is Another aspect needed to note is that the banking the agreement of all stakeholders to facilitate the financial institutions to put the trust factor as the steps and stages of an institutional system. Some main thing in the economy. Likewise, the important elements in institutional matter are the government and Bank Indonesia must develop and institution, which is the foundation for building a strengthen banking institutions into a formidable social behavior of society, with the enforcement of financial industry to support investment financing. regulations, codes of conduct, contracts and The Model Results as follows: incentives. Understanding the institutional potential in the Economies of Scale: Economic Costs; relevance to the development of all sectors is very Regulation important because it can speed up the transfer of information and technology transfer. The potential of an institution as the entry-point of development Economic Linkage: Infrastructure, processes can be identified by first understanding Technology, Labor its role in the social life of local communities. The existence of financial institutions cannot be separated from investment development of an Cross-Sector and Region: Cross-Regional area/region. Investment role can be seen as a Infrastructure; The savior in the recovery process of national availability of human resources; Land of Tenure; economy, both in encouraging both the economic Policy & Institutional growth and the employment. The development of System the investment value in Ngawi Regency mentioned above indicated that there is considerable Economic Cooperation: potentials and employment are relatively large, The Integrated Incentives which is the strength of the region. If it is well Policy managed and developed in focus, of course, it will be able to realize the public welfare of Ngawi Forms Regency. Investment While, if viewed from the formal financial Incentives institutions are identical to banking, the provision of various credit to help the investments finance in Reduction / Waivers: Ngawi Regency is relatively large. Even within the Local tax - Regional Retribution period of January to December 2013 loans based Stimulant Fund Granting Or on the usage increased, so it needed more to Capital Assistance, Acceleration Licensing, develop the alternative financing sources that able Land Provision / Location to increase the need for investment in Ngawi cities. Banking institutions in Ngawi cities, that are, Bank Jatim, Bank Rakyat Indonesia (BRI), Bank Negara CONCLUSION Indonesia (BNI), Bank Danamon and Bank Central 1. Regarding the business opportunity, Ngawi Asia (BCA). Regency prioritizes agriculture business with The development of the banking financial the organic-based integrated farming systems institutions in line with the development of that are environmental friendly.

105 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

2. The development of the investment value in LaporanAkhir (KerjasamadenganPemda Barito Utara), Ngawi Regency mentioned above indicated that 2009, Penyusunan dan Analisa Data Informasi Perencanaan Pembangunan Ekonomi Daerah there is considerable potential and employment Kabupaten Barito Utara. are relatively large, which is the strength of the LaporanAkhir (Kerjasama denganPemda Kota region. Balikpapan), 2010, Potensi Investasi di Kota SUGGESTION Balikpapan. LaporanAkhir (KerjasamadenganDinasKoperasidan 1. To increase the investment in district Ngawi, it UMKM), 2011, Program Kemitraan Pengembangan needed to be given the investment incentives in EkonomiLokal (KPEL) bidang UMKM the form of levy reduction, ease of obtaining KabupatenNganjuk). Manullang. M, 1981. Manajemen Personalia. Penerbit land. Ghalia Indonesia, Jakarta. 2. The development of the value of investment in Panggabean, 2002, Manajemen Sumberdaya Manusia, district Ngawi mentioned above indicated that Ghalia Indonesia, Jakarta there is considerable potential and employment Ranupandojo, Heidjrachman&Husnan, are relatively large, which is the strength of the (1984),Manajemen Personalia dan Sumber Daya region. Manusia, BPFE, Sasana, Hadi, 2008, Analisis Faktor-Faktor yang Mempengaruhi Investasi Swasta di Jawa Tengah, REFERENCES Jurnal JEJAK, Volume 1, No 1, September. http://mardianpratama10.blogspot Suliyanto, 2010, Studi Kelayakan Bisnis, Penerbit Andi, http://ryanc4rd5blogspot.com/2013/05/teori- Yogyakarta. investasi.html Jogiyanto, Hartono, 2008, Teori Portofolio Dan Analisis Investasi, BPFE, Yogyakarta

106 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

THE SUPPORT PROGRAM CHARACTER OF THE COUNTRY (PKBN)

Zawawi1) and Chrystia Aji Putra1)

ABSTRACT One contained in arts education dantri State college dharma is his devotion to people. Activity implementation of community service can be performed by students include lectures work real (KKN). KKN implementation done by the students in groups to the place / desater course. The series of events is goal give understanding to the students that the dedication to the community in the form of thematic KKN is one manifestation of defending the country can be carried out. PKBN activity is the theme Lecture Work Real (KKN) Thematic to support the education of defending the country. Some of the things that became the target of the implementation of this activity to train participants on the knowledge and dedication to the community to defend the country. This activity is also a formation of character through a game simulation conducted outside the classroom. This PKBN activities involving the various parties to take on the role and purpose in attainment. Parties involved are LPPM UPN "Veteran" Java, internal Lecturer UPN "Veteran" Java and also elements of TNI. LPPM as executive coordinator so that these activities can be well coordinated. Lecturer element as the giver of material to the participants in the activity. Further involvement of the TNI as forming the character of the participants to be more spirited defend the country and have high morale.

PRELIMINARY take up arms if there is an attack on the Background sovereignty of foreign countries nation .just, non- Real Working Lecture (KKN) is one form of physical defense of the country is defined as all community service performed by students in an efforts to keep the nation and the sovereignty of interdisciplinary manner, institutional, and the country through the process of increasing partnership as one manifestation of Tridharma nationalism. Nationalism is a series of love and college. consciousness in the process of livers in the state Thematic KKN is a Real Working Lecture and nation, as well as attempts to cultivate the love (KKN) that the orientation program of activities of the homeland. In addition, the defense can be focused on specific areas according to the social done by growing activity in an active role in problems and development policy which the realizing the advancement of the nation. government organized a specific region (district / The cornerstone of the concept of defending city). Thematic KKN-based Problem Solving to the country is the mandatory militer.Subyek of this solve the problem with a particular theme that concept is the army or any other country's defense, student activities are focused to solve specific either as the selected job or as a result of the draft problems and to achieve certain targets. without knowing (conscripts) .Some countries Bela State is a concept drawn up by (such as Israel, Iran) and Singapore enforces legislative means and officials of a country on compulsory military service for residents who are patriotic person, group or all components of a eligible (except with dispensation for specific country in the interest of maintaining the existence reasons such as physical, mental or religious of the country. beliefs) .A nation with a fully volunteer military, Physically, it can be interpreted as an attempt usually does not require compulsory military defenses against physical attack or aggression service of its citizens, unless faced with a crisis of from those who threaten the existence of the recruitment during wartime. country, while non-physical concept is interpreted Defending the countryis the attitude and as an attempt to actively participate in advancing behavior of citizens imbued with affection for the the nation, either through education, moral, social Unitary Republic of Indonesia based on Pancasila as well as improving the welfare of the people who and the Constitution of 1945 in establishing the make up the nation. viability of the whole nation. Every citizen has the same duties in matters Every citizen is entitled and obliged to of defense of the country. This is a form of love of participate in the defense of state enterprises and a citizen in the country that has given life the terms of the plea shall be regulated by law. padanya.Hal this happens after a person is born, Awareness willingness to defend the state was grew up, and in his quest for life. Inside essentially devoted to country and willingness to implementation of state defense, a citizen can do sacrifice to defend the country's defense country. both physical and non-physical. The defense Spektrum very wide, from the the most refined, to states physically such as by way of the struggle to the most hard .Start of good relations among

107 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia citizens to jointly counteract the real threat arm. The material obtained can be used as stock in Cover enemy in it is to be and do what is best for community service activities based education to the nation and the state. defend the country. In Indonesia the process of state defense is PKBN activity is the theme Real Working set formally to the Act. Among them already Lecture (KKN) Thematic to support the education tersebutkan into Pancasila and the 1945 of defending the country. Some of the things that Constitution, especially article 30.In the the became the target of the implementation of this chapter, explained that the defense of the nation is activity to train participants on the knowledge and the duty of the entire people of Indonesia without dedication to the community is also a martial terkecuali.Dengan obligations nation's defense, the country. Activity character formation through game evidence and the process for all citizens to show simulations are conducted outside the classroom. their willingness to serve the country and nation, This PKBN activities involving the various as well as awareness to sacrifice themselves in parties to take part in the achievement and aim. order to defend the country. Understanding of Side involved are LPPM UPN "Veteran" Java, defending the country itself is so vast, ranging from internal Lecturer UPN "Veteran" Java as well as subtle understanding until firm. the executive coordinator TNI.LPPM elements so Among terbinanya starts with good relations that these activities can be coordinated with among fellow citizens to the process of baik.Unsur lecturer as a giver of materials to cooperation to face the threat from foreign parties participants in activity. next involving TNI as significantly. This is a proof of their sense of forming the character of the participants to be nationalism embodied into the attitudes and more spirited defend the country and have high behavior of citizens in his position as a citizen. In morale. defense of the concept of the state, there is a philosophy about how to behave and act the best Issues for the country and nation. Based on the description above, it can be KKN thematic nature is institutionalized, described the problems faced by students of coordinated, interdisciplinary, sustainable and potential participants in the Thematic KKN UPN based social. Implemention Thematic KKN has the Veteran East Java, namely: following characteristics: 1. The weak participation of students in service 1. The program is designed thematic activities, learning activities that support TEMATIK State institutionalized, sustainable and based on Defense Education. competence. 2. Lack of mental and physical readiness of 2. Reflecting the complexity of the issues and the students in the implementation of service direction of government policy development. learning activities that support TEMATIK State 3. Implemented by students, DPL and society. Defense Education. 4. Implemented a limited time, efficiently, effectively by promoting academic interests and SOLUTION AND TARGET OUTPUTS public interests. Solutions Offered Based on the priority issues that have been One of the things contained in defending the identified, then the solutions offered to address the country and Tridharma education college is a problems faced by students of KKN Thematic community service. Activity implementation of candidates are as follows: community service can be performed by students 1. Provide education to provide insight and include community work (KKN). KKN comprehension basic values of defending the implementation done by the students in groups in country was held in the classroom. places / villages tertentu.Rangkaian This activity 2. Training through character formation defend the aims to provide insight to students that dedication state held outside the classroom with present to the community in the form of thematic KKN is resource persons from outside. one manifestation of defending the country can be carried out. Target Outcomes Students can take advantage of this event to PKBN activity is the theme Real Working explore the science of real work Lecture thematic Lecture (KKN) Thematic to support the education and educational defend the country. of defending the country. Some of the things that became the target of the implementation of this 108 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia activity to train participants on the knowledge and Activity Field Work Experience (KKN) is one of dedication to the community to defend the country. the activities that provide learning experiences This activity also as character formation through for students to live in the midst of the game simulations are conducted outside the community outside the campus. As well as a classroom as a means of shaping the character of learning process and serve the people who are the participants. Character formation participants building and directly identify and help address are trained and developed through simulations of development problems being faced. the game is teamwork, process intelligence, build KKN is a form of dharma activity that combines brilliant ideas, leadership, and organizational. education, research and community service in a Plan targets proposed PKBN achievement activity. As education activity and teaching, can be seen in the following table: service learning function as a movement to revive the mutual cooperation in the community No. type of outcome indicators of to build a family life which is conducted achievement independently by people's expectations can be 1. Scientific Publications be 2. Character Formation be self-sufficient .Activity KKN invite atudent to State Defense participate observe, analyze, draw conclusions from the data and the situation of the working METHOD OF EXECUTION area of corruption. Methods of Implementation The solution is offered in addressing priorities for student applicants Thematic KKN in UPN Veteran East Java are as follows: 1. State Defense Character Education in the classroom. Strengthening the character of defending the country for students to prepare the students participating in education organized Thematic KKN debriefing form to students with insights material and fundamental values of defending the country. Held in class. Activity was conducted over one day in the speaker Lecturer Picture 1. Giving Knowledge of Location corruption. coaches defend country .Metode course aims

to provide supplies to students in the form of Giving knowledge of the target area of value-base defending the country, so they have corruption is very important. Through the the analytical skills and a high concern to the provision of this knowledge, participants are problems that faced by the community. expected to know the target area will be the 2. Character Training Defend Countries outside location of KKN. Giving briefing is done in the the classroom. classroom sessions. This is done in order to This activity is an attempt to make the formation create discussion among members of the group of character to defend the state in practice will carry out corruption. outside this kelas.Kegiatan guided by 2. Providing Material Introduction State Defense professional instructors from the TNI was At this stage of the State Defense described the assisted by Student Regiment UPN "Veteran" sense that it contains the rationale, goals and Java. This activity aims to establish and objectives, the scope of the State Defense increase the character to defend the country in Education, State Defense Education foundation preparation for the students in carrying out the that includes foundation juridical, philosophical, Thematic learning programs. historical, sociological and religious.

ACTIVITIES Character Education in the State Defense In Classroom 1. Knowledge of Target Areas Area Real Work Lecture

109 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

3. Discussion of Independent Group The group discussion is one of the measures undertaken in preparation for departure KKN.Kegiatan group discussion is an activity undertaken by a group involving corruption. This group discussion activities can be an alternative in helping to solve the problems that will be encountered at the site of KKN.

Picture 2. Giving Material Introduction State Defense.

It should be realized fully that awareness to defend the country is not something that grows by itself in every citizen. Efforts are conscious and planned carefully to instill in citizens a foundation and values of defending the country as follows, namely: (a) .love of the homeland, (b) .concisious nation and state, (c). sure to

Pancasila as the state ideology and (d). willing Picture 3. Discussion Participants Independently to to sacrifice for the nation of Indonesia as well produce planning corruption as (e). have the ability to defend country. Fifty Method is essentially centered discussion to initial base value of defending the country participants of corruption, where the activities should be seen as virtues of life that must be undertaken in the implementation of unstructured lived by citizens at all levels. education is seen discussion up to activity structured where as a road or the most appropriate means to members can express opinion. Issue corruption sensitize the citizens about the importance of and problems discussed in accordance with the values to defend the country. Because as a target location KKN. With the discussion of the means of awareness (konsientisasi), education students will be working hard, working together illuminate copyright (sense), stirred and trying to solve the problem by asking the opinion warmed sense (emotion), and reinforce and the right arguments. intention (will) the citizens so that they have a And the end of this discussion process sense-own (sense of belonging), a sense of produced as following things: responsibility (sense of responsibility) and a a. Make the subject of the discussions as a high commitment to the fate of the nation and conclusion according to the results of the the country. "Outcome" or the expected results discussion. of educational awareness to defend the country b. Conduct a review of the discussion by asking are citizens who are aware of the rights and the opinion of all the participants as feedback obligations of defending the country, and are for further improvement. capable of maintaining state sovereignty, c. Generate the key points that will be territorial integrity, and safety of the entire implemented at the site of KKN. nation.

The materials given in Education State Defense Character Training in Foreign State Defense began to foundations, growing awareness to Class defend the country, to defend the state itself As the UN Material Strengthening Discipline (which includes the level and position of Value Participants defending the country in the national defense Understanding of the UN is an activity system), a threat that must be faced, and undertaken to inculcate the habit of discipline in matters relating to civil defense including Widya the way of life of a community organization geared Mwat Yasa which is the identity of UPN towards the formation of a certain disposition. This "Veteran".

110 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia is important so that participants have the character Problem solving simulation program designed of discipline in learning activities. specifically for the participants need the ability to think and be creative and innovative, daring attitude to train a decision, train responsiveness, fast and precise, hone skills in problem solving (problem solving), etc. Problem solving simulation program is designed to explore more deeply about the values of cooperation and basic attitudes of leadership is the focus of participants so that the activities in this training will be tailored to the participant level corruption. Simulations conducted are some games that require not only a physical power, but also requires the ability to think quickly and under pressure.

Picture 4. One UN raining material.

The purpose and objectives of the implementation of the United Nations, among others, the provision of material in order to foster an attitude of physical well-built agile, sense of discipline and sense of responsibility. 1. Growing a physical attitude makes his fielding is directing the growth of the body that are required by the main tasks, so physically able to carry out basic tasks perfectly. 2. A sense of unity is a sense of camaraderie and bonding that is so necessary in performing their duties. Picture 5. One problem solving simulation activities. 3. A sense of discipline is a priority task interest Problem solving simulation program above personal interests are in fact none other undertaken aim shaping personality traits and the than the sincerity of the preliminary selection of superior quality, training, positive attitudes in their own hearts. themselves, form a formidable personality traits, 4. The sense of responsibility is the courage to act maintaining the balance of physical and mental containing the risks to himself, but rewarding spiritual thoughts, build mental attitude in order to task or otherwise not easily perform actions that have a new spirit (new spirit). would be detrimental.

Strengthening Mental and Spiritual It is also done to prepare students for learning is coaching first spiritual. Activity, religious guidance is given in the form of Salat in congregation is done by all participant. Second, religious guidance given in the form of lectures and providing motivation by instructors who have competence in terms of spiritual formation, Spiritual foundation is very important to realize once again the welfare of society, so that all activities undertaken more meaningful and with full sincerity. Belence between elements of life

Picture 4. One UN training materials combined with Religious Spiritual Guidance can be used as a basis for the public welfare. Social and Strengthening Solidarity Through Problem spiritual foundation of society should be an Solving Simulation important part to support the smooth learning programs Defend State.

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designed to be implemented in the location of KKN. 2. Out-Class Activity material can run well and conducive. Student participants perform tasks and their role both in problem-solving activities, the United Nations training activities, and activities of spiritual formation. Suggestion There is advice given to PKBN activities that will be implemented in future. Expected PKBN program implementation can be done with a much longer time for the participants to be able to absorb

Picture 6. Spiritual development activities conducted in knowledge students are provided with either. the mosque. Absorption science baikakan generate the planning and implementation of the program as Spiritual strengthening is not only important to KKN State Defense are good als ensure the sustainability of the program is done but also beneficial in minimizing social conflict and DAFTAR PUSTAKA jealousy that arise in the community. Social capital Akhmad Fauzi, 2005, Kebijakan Perikanan dan as the values of trust, mutual assistance and joint Kelautan: isu, sintetis, dan gagasan, PT Gramedia social responsibility should be developed. If the Pustaka Utama, Jakarta Insentif Peningkatan Peneliti Dan Perekayasa spiritual and social capital that exist in students Kementerian Riset Dan Teknologi (2012). getting stronger, then this would be capital in the Kartasasmita, Ginandjar. 1996. Ekonomi Rakyat: implementation of the work program to be Memadukan Pertumbuhan dan Pemerataan ; performed when KKN. CIDES, Jakarta. Moser, C.O.N. 1993. Gender planning and developmnet: Theory, practice, and training, Lonon. Roudledge CONCLUSION Resimen Induk Kodam V/Brawijaya, 2011, Panduan After going through two kinds of activities that Penyelenggaraan Diklatsar LXIV dan Suskalak have been carried out, both in class and out XVII Menwa Tahun 2011. Resimen Induk Kodam V/Brawijaya, 2013, Panduan activity class, PKBN activity is therefore Kesiapan Satuan Pendidikan Pada Penyelenggara considered to be going well. Elaboration of Oprasional Diklatsar Menwa Angkatan LXVI dan conclusions points, among others: Suskalak Menwa Angkatan XXIX T.A. 2013. Tim Dosen MPK Dik Bela Negara, 2012, Bahan Ajar 1. Activity In-Class material can run good and Pendidikan Bela Negara, Universitas conducive. Student participants carry out Pembangunan Nasional “Veteran” Jawa Timur seriously and come up with ideas that can be

112 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

TESTING PECKING ORDER THEORY IN JAKARTA ISLAMIC INDEX

Ira Wikartika1)*) and Zumrotul Fitriyah1)

1) Faculty of Economics and Business UPN “Veteran” Jawa Timur *) Email : [email protected]

ABSTRACT Company is an important pivot in building the Indonesian economy system. The funding decision will determine the company’s operating activities that affect the value of the company. A company funding is closely related to the selection and combination of both internal and external funding sources.This study aims to analyze the influence of factors of capital structure policy according to the pecking order theory of capital structure financing decision. Factors studied as independent variables are profitability and firm size. The population in this study using sharia-based companies in Jakarta Islamic Index. The sample used is 30 companies during the period from Desember 2015 to May 2016. Data used is secondary data.Statistical analysis shows that the profitability variable positively influences the funding decisions. However, the results of these tests reject the hypothesis since the hypothesis profitability is in the opposite direction. Statistical analysis shows that the variables of firm size do not affect the funding decisions which eventually results in the rejection to the hypothesis of the study. It can be concluded that sharia-based companies in Jakarta Islamic Index do not follow the pecking order theory hierarchical.

Keywords : capital structure, pecking order theory, profitability, firm size

INTRODUCTION Overleveraged Issuers will issue new shares A Company is an important pivot in building because it wants the target of optimal debt ratio the Indonesian economy system. Each company is and the fact that many research results that prove required to manage the management functions adjustments of debt ratio target is running very well so the growing and developing company can slow, among other research (Shyam Sunder and provide a positive impact to the Indonesian Myers, 1999) and Welch (2004). The Company economy. Each of the company in its operations has not issued shares as a company financing for will face problems meeting the needs of funds. these expenses (cost of equity) are very expensive Funding for the company is closely related to the compared to the cost of other sources of financing selection and combination of funding sources that which financing through shares is on the third come from within (internal) ie equity or from order (pecking order theory). outside (external) that is long-term debt (Brealey, The funding decision that is not made et. Al, 2008). The decision to determine capital carefully will cause fixed costs in the form of high structure funding will determine the company in its capital costs which in turn can result in lower operating activities that affect the value of the profitability of the company (Prabansari and company. There are two views to determine the Kusuma, 2005). Companies that have high structure of capital, namely the pecking order profitability will reduce debt. This is due to the theory (Myers and Majluf, 1984) and the trade-off company allocates the majority of its profits in theory (Myers, 1984). retained earnings that rely on internal resources Capital structure policy is influenced by many and relatively low use of debt (Hardianti and factors both inside and outside of the company. Gunawan, 2010). The size of the company proved Factors that may influence the company's to have an important role in determining the decisions on the financing of the company's capital selection of capital structure that will be used. structure are factors that may affect the usage Harjanti and Tandelilin (2007) research results proportion of internal funds in the form of equity or showed that the size of the company has negative external funds in the form of long-term debt. effect on the company's capital structure. Shyam Sunder explained when operating cash According to the conditions described above, it can flows are insufficient to cover the investment cash be obtained the picture of situational, conditional, flow, debt maturities and dividend payments, the and experimental backgrounds about issuers’ company will seek external funding through debt, capital structure problems in Indonesia capital while market timing developed by Baker and market, so the researchers were interested in Wurgler (2002) describes as stock prices rise or testing the capital structure in the view of the overvalued companies tend to issue shares, and pecking order theory by using a sharia-based vice versa when the company is undervalued company those are companies listed in the Jakarta companies prefer loans (Myers, 1984). Islamic Index. The problem formulation of the

113 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia research is how to apply the hierarchy of pecking suggested pecking order theory of financing order order theory on companies listed in the Jakarta on changes. Stigliz in 1969, Haugen and Papas in Islamic Index? Based on the formulation of the 1971, and Rubenstein discussed the theory of problem, the objective of this research was to capital structure (trade off theory). Jensen and analyze the influence profitability and firm size in Meckling in 1976 proposed the theory of agency the view of the pecking order theory on the funding costs. Asymmetric Information by Myers in 1984. decisions at companies in Jakarta Islamic Index. The latest development of capital structure theory and empirical evidence regarding the agency cost, THEORITICAL REVIEW asymmetric information, product or input market Capital structure interaction and corporate control is summarized by The capital structure is permanent financing Harris and Raviv 1991 and, Booth.et.al. in 2001 consists of long-term debt, preferred stock and proposed capital structure in developing countries stockholders' equity. The main component of the (Manurung, 2004) capital structure is long-term debt and equity Pecking Order Theory capital (Weston and Copeland, 2010). The capital Pecking order theory introduced by structure is a mix use of funds from equity and Donaldson in 1961 and naming the pecking order debt. The consequences of the company if the theory performed by Myers in 1984 (Pransari and company uses debt must comply with debt Kusuma, 2005). This theory states that companies covenants. If the company uses a source of funds prefer internal financing that the funding of the in the form of the issuance of shares, the company company's operating results are in form of retained must provide compensation to investors in the form earnings. If external funding is needed (external of dividends. The capital structure of the company financing), the company will publish the safest is closely related to investment so that in this case securities in advance that began with the issuance would involve the source of funds used to finance of bonds followed by the issuance of option- the investment projects. Source of funding can characterized securities and if it is still insufficient, come from the issuance of shares (equity the new shares will be issued. So the order of use financing), the issuance of bonds (debt financing), of a funding source that refers to the pecking order and retained earnings. Issuance of shares and theory is internal funds, debt and equity. bonds are often referred to as the source of funds Internal funds are preferred over external from outside the company (external financing), funds for internal funds allow the company not to while funds from retained earnings referred to as "open up again" to the glare of outside investors. funds originating from within the company (internal Besides, the influence of asymmetric information financing). The capital structure is measured using and stock issuance costs tend to push the pecking the ratio of capital structure called the leverage order behavior (Prince, 2010). Companies are ratio. The calculation of the leverage ratio is a more likely to use funding from internal capital that long-term debt to equity ratio indicates the funds derived from cash flow, retained earnings percentage of their own capital as collateral long- and depreciation (Kaaro, 2001). External funds in term debt that is calculated by comparing the long- the form of debt may be preferable than the capital term debt with its own capital. itself, for two reasons, the first is the emission cost The development of Capital Structure Theory considerations. Bond issuance costs less than the In 1958 Modigliani and Miller wrote the theory cost of new stock issuance (Husnan, 2005). The of capital structure (Theory MM). MM theory met second is the possibility of asymmetric information harsh criticism and in 1963 Miller modifying these between management and the investors. works were then developed a theory called the Managers are concerned if the issuance of new pecking order theory and trade off theory. Pecking shares will be interpreted as bad news by order theory states that companies prefer internal investors, thus making the price of the stock has financing in the form of retained earnings, decrease (Harahap, 2009). however, if needed external financing, the Pecking order theory focuses on the company will issue debt first and then issuing new motivation of corporate managers rather than on shares. Capital structure theory was started by the principles of assessment of capital markets Duran in 1952, later Modigliani and Miller in 1958 (Prince, 2010). Pecking order theory is based on issued MM theory, and is considered the beginning the of asymmetric information. The managers have of the theory of capital structure. Donalson in 1961 superior information. The managers are believed

114 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia to have better preliminary information. Therefore, in retained earnings that rely on internal resources studying the market behavior of the manager. The and relatively low use of debt. By using the above assumption of asymmetric information implies that theory, the higher the profit of a company then its managers develop and discover new attractive debt (leverage) would be lower. This is supported investment opportunities with positive NPV, but by research done by Riswan and Nina (2015) as they can not deliver the information properly to well as research done by Nuswandari (2013). The shareholders for managers’ statements are not first hypothesis is the profitability has negative trusted by investors. Pecking order theory explains effect on the capital structure. why very profitable companies generally have Firm size and Capital Structure fewer debts. This happens not because the Firm size describes the size of a company. company has a low debt ratio targets, but because The Company will require substantial funds. Large the company does not need funds from external companies generally have greater sales levels and parties (Steven and Lina, 2011). generating greater profit level. The funding needs Trade off Theory met by using internal resources. This is in line with Trade off theory is a model of capital structure the pecking order theory which shows the direction that is based on a trade off (exchange) between of the negative relationship between firm size and the advantages and disadvantages of the use of capital structure. If the company is faced with the debt. This theory has the assumption that the need of increased funds due to sales growth, and company's capital structure is a balance between funds from internal sources already used all, then the benefits of using debt to the cost of financial there is no other option for the company but to use distress (financial difficulties) and agency cost the funds that come from outside the company, (agency). Debt raises interest expense that can either debt or by issuing new shares. The larger save on taxes. Interest expenses can be deducted the size of the company, the lower the capital from income, so that profit before tax becomes structure. Riswan and Nina’s research results smaller, thus the tax is also getting smaller. The (2015) as well as Margaretha and Sari´ research use of increasingly large debt will lead to financial results (2005) found evidence that the size of the difficulties or bankruptcy. The problems associated company negatively affect the company's capital with bankruptcy will likely arise when companies structure. The second hypothesis is firm size put more debt in their capital structure. Bankrupt negatively affects the capital structure. company will have very high accounting and legal burdens and are also difficult to sustain the METHODOLOGY customers, suppliers, and employees. Because the Population and Sample cost of bankruptcy withstand companies use debt This research was explanatory research is at an excessive rate (Brigham and Houston, 2006). research that is based on theory or hypothesis Capital decision theoretically based on a trade off which will be used to test a phenomenon (Cooper theory assumes that the company seeks to and Schindler, 2009). The data used is the cross maintain the targeted capital structure with the section data. The data source of this research is objective of maximizing the value of the market secondary data in the form of financial statements (Prince, 2010). Trade off theory predicts each of companies listed in the Jakarta Islamic Index company adapts slowly toward the optimal debt (JII) obtained via the website www.idx.co.id. This ratio. The optimal capital structure can be found research population is all companies listed in the with the balance between advantages over the use Jakarta Islamic Index. Samples are 30 companies of debt with bankruptcy costs and capital costs, the listed in the Jakarta Islamic Index period so-called static trade off. December 2015 until May 2016. Profitability and Capital Structure Operational Definition and Measurement of Profitability aims to measure the company's Variables ability to earn profits, both in relation to sales, The dependent variable in this study is the assets, or against their own capital. According to capital structure. The capital structure is a balance the pecking order theory, firms have a preference between its own capital and foreign capital. The to use internal sources of funds, then the debt and capital structure is measured by using leverage. the last is through stock issues. Companies that Leverage is projected by using a Debt to Equity have high profitability will reduce debt. This is due Ratio (DER). DER = long-term debt / total equity to the company allocates the majority of its profits (Nuswandari, 2013).

115 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

The independent variables in the research are The analysis results show all the variables profitability and firm size. Profitability is a measure studied have Asymp. Sig (significance) value that to determine the effectiveness of management in is greater than 0.05. It can be concluded that the managing the company. Profitability is projected by data did not meet the assumption of normal using Return on Equity (ROE), which is the distribution. company's ability to generate profits by using total Multicollinearity test own capital. ROE = net income / total equity Multicollinearity: there is correlation among (Nuswandari, 2013). Firm size is the size of the independent variables in the regression. company that describes the size of a company Multicollinearity Detection: based on the total sales, the average level of a. The amount of VIF (Variance Inflation Factor) sales, total assets, and average of total assets. and Tolerance. If the VIF number exceeds 10, Firm size is proxied by using the natural logarithm then the variable indicates a multicollinearity of net sales is the size of the company based on (Gujarati, 2005). the total sales (Nuswandari, 2013). The use of b. Eigenvalue value close to 0 natural logarithms meant to reduce excessive c. Condition Index exceeds 15 fluctuations in the data so that it will be able to reduce the skewness of distribution as well as Table 3. Multicolinearity Test Results minimizing the standard error of the regression Profitability Firm size Variance Inflation Factors 1,088 1,088 coefficient (Harjanti and Tandelilin, 2007). Analysis Mechanical The analysis results show all independent This study uses multiple regression analysis variables have VIF value less than 10. It can be with Ordinary Least Square (OLS) method. The concluded that there are no symptoms at all of regression equation as follows : Multicollinearity in the independent variables. DER = a + b1 profitability + b2 Firm size + ei Heteroskedastity Test Heteroskidastity: a variant of the residuals of RESULTS AND DISCUSSION the observations to other observations have Outlier test different variants. When it is the same, it is so- Outlier detection: there is an outlier when it is called homoskedastity. Mahal. Maximum Distance> Probability & number Heteroskidastity Detection of variables [= ChiInv (Prob; Jum.variabel)]. a. From the Scatter Plot Residual: if there is a

Table 1. Outlier Test Results specific pattern (like dots / points that form Maximum N regular certain patterns (wavy, spread later Mahalanobis Distance 12,683 30 narrowed) b. If there is no clear pattern, as well as the points Table 1 presents the mahal value. Maximum spread above 0 on the Y axis, then there is no distance of 12,683 is less than 16.266 12.683 heteroscedasticity. [ChiInv (0,001; 3)]. The value shows there is no c. In linear regression, residual value should not outlier on observation data, which means the be any connection with the variable X. It can be observation data has good quality so it can do identified by calculating the Spearman rank further processing. correlation between residual and all Normality test independent variables. Spearman rank formula Normality: A regression model where the is: dependent and independent variables or both have 2 a normal distribution or not. Detection of normality  d i rs = 1 – 6 using the Kolmogorov-Smirnov test which showed NN 2 1 that all the variables have a normal distribution if Information: : the value of Asymp. Sig (significance) is smaller d = the difference in rank between residual than 0.05. i and independent variables to-i

Table 2. Results of Normality Test N = the number of data Capital Profitability Firm size heteroscedasticity Testing in this study using the Structure Spearman rank correlation between residual and Asymp. Sig. 0,422 0,406 0,856 all independent variables. (2-tailed)

116 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

Table 4. Heteroskidastity Test Results Based on the analysis results, it is obtained the Profitability Firm size regression equation: Sig. (2-tailed) 0,385 0,385 DER = 0,363 + 0,011Profitability + 0,31Firm size + e

The analysis results show that Sig. value for Discussion of Research Results correlation on the profitability variable and firm size Profitability influence on Capital Structure variable is greater than 0.05. It can be concluded The results of the analysis show that the that there are no symptoms heteroskedastity. profitability variables have a significance value of Autocorrelation Test 0.015 (<0.05) and has a positive direction. This Autocorrelation: correlation between bullies means profitability affect the capital structure, but error in period t with bullies error period t-1 reject the hypothesis for the opposite direction. (previous). Autocorrelation Detection: This is not in line with the pecking order theory. The magnitude of the numbers of Durbin Companies that have high profitability tend to Watson using the following benchmark, if D-W is borrow larger amounts of loans because the profit below -2 there is positive autocorrelation, D-W will serve as collateral to make creditors feel more above +2 there is negative autocorrelation, and D- secure in giving loans to the company. Creditors W is between -2 to +2 there is no autocorrelation. will be easier to grant loans on the assumption that

Table 5. Test Results of autocorrelation and Coefficient companies with high profitability has a relatively of Determination small probability to default. The results support the Model R R2 Durbin-Watson research done by Misbach (2014), whose results 1 0,454 0,206 1,737 showed that profitability has positive effect on of capital structure. The analysis results show Durbin Watson Effect of Firm Size on Capital Structure value of 1.737. It can be concluded that there are The results of the analysis show that the firm no symptoms of autocorrelation. size variable has a significance value of 0.811 (> Determination Coefficient Test 0.05). This means that firm size has no effect on The correlation coefficient (R) of 0.454 the capital structure. This is likely due to that the indicates that the relationship between the number of assets owned by the company is no independent variables, profitability and firm size longer a concern for creditors in lending. In with the capital structure is weak. The coefficient of general, creditors tend to prefer the liquidity of the determination (R2) of 0.206 means that the company regardless of large and small companies. dependent variable, which is the capital structure is High liquidity will serve as the safest guarantee for influenced by independent variables, those are creditors to provide loans to the company. The profitability and firm size by 20.6 percent while the results support the research done by Ghazouani remaining 74.9 percent is influenced by other (2013), whose results show that firm size has no variables besides the two independent variables in effect on the capital structure. the model.

CONCLUSIONS AND SUGGESTIONS Model Compliance Test (F Test) Conclusion Table 6. F Test Results Model Significant Based on the analysis and discussion can be Regression 0,44 concluded that the profitability has significant positive effect on the capital structure, but in view The test results show a significance value of pecking order theory, the profitability variable (Sig) of 0,044 is smaller than 0.05, which means has no effect on the capital structure due to the significant, so it can be concluded that the use of coefficient is in the opposite direction. Likewise the the regression model in this study have been variable firm size that in view of the pecking order appropriate or correct. theory also has no effect on the capital structure. Implication Hypothesis Testing This research can help financial managers in Table 7. Results of Multiple Regression decisions about appropriate capital structure for Unstandardized Model Significant Coefficients the company in order to minimize the cost of (Constant) 0,363 0,870 capital so that will maximize the company's stock Profitability 0,011 0,015 price. Firm size 0,031 0,811

117 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

Limitations Harjanti, Theresia Tri dan Eduardus Tandelilin. 2007. a. The research time range is limited on the period Pengaruh Firm Size, Tangible Assets, Growth Opportunity, Profitability dan Busniess Risk pada of December 2015 until May 2016, which lasted Struktur Modal Perusahaan Manufaktur di for six months. Indonesia: Studi Kasus di BEJ. Jurnal Ekonomi dan b. Object of research is limited to companies-firms Bisnis, Vol. 1, No. 1, hal 1-9. in Jakarta Islamic Index. Husnan, Suad. 2005. Dasar-dasar Teori Portofolio dan Analisis Sekuritas, Edisi Keempat, UPP AMP c. The independent variables used in the research YKPN, Yogyakarta. are only profitability and firm size. Kaaro, Hermeindito, 2001, Analisis Leverage dan Suggestions Dividen dalam Lingkungan Ketidakpastian: Pendekatan Pecking Order Theory dan Balancing a. The research time range can be extended up to Theory, Simposium Nasional Akuntansi IV, Hal. several periods. 1067-1083. b. Object of research can use the companies Manurung, Adler Haymans. 2004. Teori Struktur Modal: listed on the stock exchanges of Indonesia both Sebuah Survei. Usahawan, No.04.Th XXXIII April 2004, Hlm. 20-26 Sharia and non-Sharia-based or classify the Margaretha, Farah dan Lina Sari. 2005. Faktor-faktor Sharia-based companies in certain sectors yang Mempengaruhi Struktur Modal pada such as: Islamic stocks in manufacturing Perusahaan Multinasional di Indonesia. Media Riset Bisnis & Manajmen, Vol. 5. No. 2, Hal. 230- companies. 252. c. Should add other independent variables such Misbach, Fuady, 2014, Pengujian Trade off Theory : as: the structure of assets, dividends, business Apakah Perusahaan di Indonesia Melakukan risk, sales growth, and taxes. Optimalisasi Hutang?, Jurnal Media Ekonomi dan Teknologi Informasi, Vol. 22, No. 1, Hal. 42-55. d. Should consider the use of short-term debt and Myers, S. C. 1984. The Capital Structure Puzzle, Journal long-term debt. f Finance,34, pp. 575-592. Myers, S. C. dan N. S. Majluf. 1984. Corporate REFERENCES Financing and Investment Decisions When Firms Baker, M. and J. Wurgler. 2002. Market Timing and Have Information That Investors Do Not Have, Capital Structure, Journal of Finance, Vol. 57, pp. Journal of Financial Economics, 13, pp. 187-221. 1-32. Nuswandari, Cahyani. 2013. Determinan Struktur Modal Brealey, Myers dan Marcus. 2008. Fundamentals Of dalam Perspektif Pecking Order Theory dan Corporate Finance. Edisi Kelima. Terjemahan Oleh Agency Theory. Dinamika Akuntansi, Keuangan Bob Sabran, MM. Jakarta: Erlangga. dan Perbankan, Vol. 2, No. 1, Hal. 92-102. Brigham dan Houstan. 2006. Fundamentals of Financial Pangeran, Perminas, 2010, Pemilihan Sekuritas dan Manajement (Dasar-dasar Manajemen Keuangan. Arah Kebijakan Struktur Modal : Pecking Order Buku 2 Edisi 10. Jakarta: Salemba Empat. ataukah Static Trade Off?, Jurnal Akuntansi dan Cooper, Donald R dan Schindler, Pamela S. 2009 Manajemen, Volume 21, Nomor 1, Halaman 1-16. Business Research Methods 10th edition. McGraw- Prabansari, Yuke dan Hadri Kusuma. 2005 Faktor-faktor Hill. yang memengaruhi Struktur Modal Perusahaan Ghazouani, Tarek, 2013, The Capital Structure Through Manufaktur Go Publik di Bursa Efek Jakarta. The Trade off Theory : Evidence from Tunisian Sinergi, Edisi khusus on Finance, hal 1-15. Firm, International Journal of Economic and Riswan dan Nina Permata Sari, 2015, Factors Affecting Financial Issues, Vol. 3, No. 3, Pp. 625-636. Capital Structure in Manufacturing Companies Go Ghozali, Imam. 2009. Aplikasi Analisis Multivariate Public in Indonesia Stock Exchange in The Year dengan Program SPSS, Penerbit Universitas 2011-2013, Jurnal Akuntansi dan Keuangan, Vol. Diponegoro, Semarang 6, No. 2, Hal. 177-201. Gujarati, Damodar N. 2005. Basic Econometrics, 4th Shyam-Sunder, Lakshmi and Steward C. Myers, 1999, Edition, Internasional Edition, Mc.Graw Hill Testing static tradeoff Against Pecking Order Companies, Inc.New York. Models of Capital Structure, Journal of Financial Harahap, S.S., 2009, Analisis Laporan Keuangan, Raja Economics, No. 51, Hlm. 219-244. Grafindo, Jakarta. Steven dan Lina, 2011, Faktor-faktor yang Hardianti, Siti an Barbara Gunawan. 2010. Pengaruh Mempengaruhi Kebijakan Hutang Perusahaan Size, Likuiditas, Profitabilitas, Risiko, dan Manufaktur, Jurnal Bisnis dan Akuntansi, Volume Pertumbuhan Penjualan Terhadap Struktur Modal 13, Nomor 3, Halaman 163-181. (Studi Empiris pada Perusahaan Manufaktur di Welch, Ivo. 2004. Capital Structure and Stock Returns. Bursa Efek Indonesia). Jurnal Akuntansi dan Journal of Political Economy, Vol.112, No.1, Hlm. Investasi, Vol. 11, No. 2, hal 138-154. 106-131. Weston dan Copeland, 2010, Managerial Finance, Edisi Kesembilan, Binarupa Aksara, Jakarta.

118 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

FACTORS AFFECTING THE SATISFACTION OF LEARNING TEACHING STUDENTS WITH PERSPECTIVE AS A CONSUMER OF HIGHER EDUCATION

Luky Susilowati1)*) and Pandji Sugiono-

1) Fak Economy UPN "Veteran" JawaTimur *) E-mail: [email protected]

ABSTRACT Competition in college also intensify the growing number of university, courses and programs offered, This situation requires every university creates a competitive advantage to compete in the market with the private university , State University and foreign universities, especially from Malaysia and Singapore. What competitive advantage possessed by a university needs to be understood so they can build a strategy for improving the quality and simultaneously improve quality This study was conducted to aim analyze multiple factors that affect student satisfaction in teaching and learning in the UPN "Veteran" East Java. The sample in this research are the students UPN "Veteran" East Java is still active. The sampling technique used in this study is a probability sampling technique with proportional stratified random sampling method, data analysis was conducted using the method of SEM-based components by using Partial Least Square (PLS) selected as an analytical. Research shows that, Facilities, Administration Staff, Academic Staff and Academic Processes able to contribute to improve the satisfaction of students in the learning process.

Keyword:, Administrative Staff, Academic Staff and Academic Process

INTRODUCTION process of institution services consumption by Competition in college to become more college students is an important thing to be known intense with the growing number of universities, by university. With the aim to find out what things study program and the various programs offered, are affecting the satisfaction of the learning choice of time, and the current financing system. process in the context of university in Indonesia This situation requires every university create a UPN "Veteran" East Java in October 6, 2014 competitive advantage in order to compete in the changed its status Universities must continue to market with the private university , State University improve the quality of academic services in order and foreign universities, especially from Malaysia to satisfaction of the learning process to the and Singapore. What competitive advantage university students is increasing as well. UPN possessed by a university needs to be understood "Veteran" East Java included in the five colleges so that university can build a strategy for improving featured in East Java. the quality and the quality of the universitythat is Of the 20 study programs, are accredited A as good and simultaneously improve quality and 6 study programs, and accredited B as 13 study quality is still weak. In short, armed with this programs and only one accredited C. Accreditation understanding, the university can perform is required to guarantee the quality of an continuous improvement. educational institution. In addition to the public, The university Starting in 1996, efforts to accreditation could also be a tool to measure the improve the quality of Indonesia began to develop readiness of a university to conduct the their accreditation. In 2006, university developing educational process. But whether a college or an accreditation institutions, the implementation of accredited study program A always correlate with quality management systems, and business student satisfaction? Customer satisfaction is one valuation becomes class national and world-class. of the important things in companies engaged in If the above is the result of a survey of services, including in universities. Satisfaction accreditation agencies to universities, then in obtained student learning will cause the loyalty to marketing we also need to do a survey of student the university where they are studying so that their satisfaction, as a major stakeholder of university. students would recommend to others. To achieve In consumer behavior, more satisfaction these conditions needed revamping / readiness of defined from the perspective of the consumer all components of academic and non-academic, experience after consuming or using a product or among other amenities, administrative staff, service (Schifman and Kanuk, 2007). Study the academic staff and academic process. factors that affect student satisfaction in the This research was conducted for the purpose context of university in Indonesia, how the analyze the factors that affect student satisfaction satisfaction of teaching and learning, which is the

119 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia in teaching and learning in the UPN "Veteran" East Relations between the Administrative Staff Java .. with Satisfaction Learning Process Factors administrative staff who provide METHODOLOGY administrative services to the students of higher Relations between facilities with Satisfaction education. The administrative staff in universities Learning Process can be referred to as an employee of the college. The first factor to be explored is the According Martensen and Grønholdt (2005) to satisfaction factor facility. June (2006) states that produce quality graduates as expected the the facilities are preferred by students is related to organization of work, personnel who have a good academic facilities, not the administration. The competence at all levels of management of the facility is a classroom, a library, a technology that organization. Markwick and Fill (1995) found that supports the teaching and learning process. both management and employees can Furthermore, the facility is a bookstore, facilities for communicate the strategy and values of the sports training, dormitories, student recreation organization to the public. This is also corroborated facilities, facilities for the practice of engineering by Pelsmacker., Et.al. (2004) which states that the students, and audio-visual room. management and employees is one component of Other conditions needed to support the learning the three organizations, namely communication process is the availability of facilities and marketing communication, organizational classrooms that have a sound damping from communication and public relations. Based on the outside the class. So that students are more explanation above, it can be concluded focused in the classroom listening to lectures as administrative staff have an important role in expressed by Earthman and Lemasters (1998). influencing student satisfaction. The administrative The better the damping power, then students are staff provides services that support student more satisfied with the university. satisfaction in the learning process Buckley (2005) states that the physical H2: Suspected administrative staff who provide facilities provided by the university as classrooms good service will increase student satisfaction are quiet, the air temperature is maintained in the in the learning process. classroom, the air circulation in the classroom, the lighting, and the quality of the room to drown out Relations between Academic Staff Satisfaction the noise from the outdoors are all factors that are Learning Process important to maintain the satisfaction of academic The Administrative staff providing services in staff in teaching and learning in schools. McHarg., organizing teaching and learning, while providing Et.al. (2006) stated that the facilities provided in services in the teaching is academic staff. Another the library book remains the top choice of students opinion on the importance of academic staff to borrow books, although already provided access expressed by Henning-Thurau., Et.al. (2001), he to loan e-books through the online library. Students stated in the learning process, student care and still borrow books hard copy and no significant see the offer (the quality of teaching is perceived increase in borrowing e-books even though the by students, motivation and competence of number of e-books may be borrowed increased its professors and all things related to teaching) quota. proved to be a major quality and most relevant in Clemes (2001) used the approach of service improving student loyalty. quality Zeithaml., Et.al. (1985) in a test of student Kusku (2003) provide a clear definition of the satisfaction on the quality of the university. In this difference in administrative staff and academic study, Clemes defines the physical environment is staff. This is done by considering that the ranks of part of the technical quality dimension as students' the deans and deputy deans are administrative perceptions of the physical facilities and the staff and teachers at the university. Chen Chen campus environment. Various reviews of the (2008) explains that the evaluation of student literature obtained above can be concluded that satisfaction of the academic staff is required to the facility has positive influence on satisfaction of understand the needs of students to the students in the learning process. performance of the academic staff. Evaluation of H1: Suspected good facilities will increase the academic staff is made up of a competency satisfaction of students in the learning evaluation and the evaluation of teacher process. performance.

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Kozanitis (2007) explains that the perception students and faculty in an informal interaction was of student evaluation of the reaction of the not always enhance the academic value. academic staff have a positive direct effect on the Results of research Marlin (1987) pointed out: desire of students asking for referrals. Roediger First, the procedure has been carried out now as a (2006) explains that the results of this exploratory lecturer writing on paper evaluation is sufficient. show students want teachers who have a deep Students also do not have the intention to provide understanding of the field being taught, results that are dishonest to please faculty or enthusiastic in teaching, friendly, and lecturers. That is, the answer given is indeed an approachable. Besides Marsh (1993) in research objective answer. Second, although the results of on student evaluation of the effectiveness of this evaluation be presented to the faculty and teaching explains that the academic staff, the level administrative staff, but they did not give special of the lecture, and their interactions have a attention to the results of the evaluation. Third, the relationship that is proven to increase the results of the evaluation of the students did not effectiveness of teaching. Okwilagwe (2002) points have a significant impact on the administrative staff out that evaluation of students to study the career faculty. environment such as the commitment of academic Conrad and Conrad (2001) conducted a study staff in the timeliness of teaching consistency in to examine the factors that affect academic teaching academic staff presence affects their reputation and its relationship with the desire of motivation to learn. Kember (2006) pointed out that students to come to college. Terenzini., Et.al. the environment in which learning is influenced by (1984) conducted a study to understand the the role of academic staff who helps students in students 'perceptions of influence to develop college, motivate them to learn, and proactively academic skills Results of this study showed no making techniques that can increase the interest of significant relationship between the duration of students to learn. college students to the accumulation of students' Academic staff interacts with the students and academic ability. Based on the various communicate the knowledge to the students. The descriptions above, concluded that the academic process of knowledge transfer is the one which is process is also one of the factors affecting the enjoyed by students and assessed their level of satisfaction of the learning process. satisfaction, by keeping the tersbut study it can be H4: Suspected excellent academic process will concluded that the staff Aksdemik positive effect increase student satisfaction in the learning on student satisfaction in the learning process. process H3: Suspected academic professional staff will increase student satisfaction in the learning The population in this study were all students process is the UPN "Veteran" East Java is still active as a student amounts to 6864 (source Relations between Academic Process with www.pdpt.upnjatim.ac.id). The sample in this study Satisfaction Learning Process was 100 students. The sampling technique used in Academic Process described by Fedor and this study is a probability sampling technique in Bettenhausen (1989) also indicates that the which each element of the population has an equal instructor pleased with the short-term feedback opportunity to be sampled. While the methods system. Morstain (1977) conducted a study used is proportional stratified random sampling analyzing student satisfaction on the campus method, academic program. The results of this study Data analysis was performed using SEM- indicate that students are not satisfied have to based components by using PLS selected as an learn different orientation with students who are analytical tool in this research. Partial Least satisfied and quite satisfied. Pascarella., Et.al. Square (PLS) have been selected for this device is (1978) investigated the relationship student widely used for causal analysis - Predictive interaction with faculty and its relation to academic complicated and is a suitable technique for use in performance. The results of this study indicate the applications such predictions and the development relationship of informal interaction with student of theory in this study. teachers may improve students' academic achievement. In addition the relationship between

121 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

RESULTS AND DISCUSSION 3. Academic Staff (X3) have a positive influence on student satisfaction in the learning process (Y) with a path coefficient of 0.235331, where the value can be accepted T-Statistic = 3.610019 is greater than the value of Z α = 0.05 (5 %) = 1.96, then Significant (positive). 4. Academic Process (X4) have a positive influence on student satisfaction in the learning process (Y) with a path coefficient of 0.298526, where the value can be accepted T-Statistic = 4.531622 is greater than the value of Z α = 0.05 (5 %) = 1.96, then Significant (positive).

Based on the research that has been done to to know the factors that can influence student satisfaction in the learning process the obtained results that the Facility, Administrative Staff, Figure 1. Line Output PLS Academic Staff and Academic Processes affect Structural Model (Inner Model) the Student Satisfaction. Tests on the structural model is done by Variable Facility significant and positive looking at the value of R-Square which is a test for impact on student satisfaction in the learning goodness-fit model. Testing of the model can be process, this condition indicates that the better and seen the inner workings of the R-square value on the facilities provided will further increase student equality between latent variables. The R2 explain satisfaction in following the teaching and learning how big an exogenous variable (independent / process. This is consistent with the results of the free) in the model is able to explain the June (2006) that the facilities are preferred student endogenous variables (dependent / bound is related to academic facilities. The facility is a The value of R2 = 0.584869. It can be classroom, a library, a technology that supports the interpreted that the model is able to explain the teaching and learning process. Furthermore, these phenomenon of student satisfaction in the learning facilities are communal facilities untyk students. process that is influenced by independent Variable Administrative Staff with indicators, variables with variance of 58.48%. While of administrative services, accept criticism and 41.52% is explained by other variables (besides suggestions, timeliness of work, ability to Facilities, Academic Staff, Administrative Staff and communicate and speed work processes positive Academic Process) that have not been entered effect on student satisfaction in the learning into the model. process, this condition indicates that the better Testing the hypothesis in this study can be attitude and service provided by all administrative seen from the table Path Coefficients (Mean, staff in support the teaching and learning process STDEV, T-Values) below by comparing the value that will increasingly student satisfaction. This is of T-Statistic value Z α (5%) consistent with the results of Martensen and 1. Facilities (X1) a positive effect on student Grønholdt (2005) to produce quality graduates as satisfaction in the learning process (Y) with a expected the organization of work, personnel who path coefficient of 0.317168, where the value have a good competence at all levels of can be accepted T-Statistic = 4.686534 is management of the organization. Furthermore it is greater than the value of Z α = 0.05 (5% ) = said that the administrative staff have an important 1.96 then Significant (positive). role in affecting student satisfaction. The 2. Administration Staff (X2) have a positive administrative staff providing services that support influence on student satisfaction in the learning the satisfaction of the learning process. process (Y) with a path coefficient of 0.124100, The next variable is the variable Academic where the value can be accepted T-Statistic = Staff positive effect on student satisfaction in the 2.395433 is greater than the value of Z α = 0.05 learning process, this condition indicates that the (5 %) = 1.96, then Significant (positive). better attitude, communicative, motivated and services in the learning process provided by all the

122 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia academic staff will increase mhasiswa satisfaction. Bloemer, J., Brijis, T., Vanhoof, K. and Swinnen, G. This is consistent with the results of the study (2002) Comparing Complete and Partial Classification for Identifying Customers at Risk, Henning-Thurau., Et.al. (2001), he stated in the International journal of research in marketing, learning process, student care and see the offer 20, 117-131. (the quality of teaching is perceived by students, Buckley, Jack., Schneider, Mark., Shang, Yi. (2005) Fix motivation and competence of professors and all It and They Might Stay: Quality and Teacher Retention in Washington DC. Teachers College things related to teaching) proved to be a major Record Volume 107, Number 5, May 2005, pp. quality and most relevant in improving student 1107–1123 loyalty. Chen Chun Chen (2008). Differences in Student Evaluation of Core and Elective Courses. Academic Process Variable positive effect on Dissertation. San Diego student satisfaction in the learning process. This Clemes, Michael., Ozanne, Lucie K., Tram, Lam (2001). shows that the better the academic process yamg An Examination of Students’ Perceptions of given, including assessment tests, assignments, Service Quality in Higher Education. Journal of Marketing for Higher Education, Vol. 10(3) 2001 papers, suitability of the material the more increase Conrad, Michael J., Conrad, Maureen. (2001). Factors student satisfaction in following the teaching and That Predict Academic Reputation Don’t Always learning process. This condition is in accordance Predict Desire to Attend. Journal of Marketing for Higher Education, Vol. 11(4) 2001 with the results of the research. Fedor and Crosby, L. A., Stephens, N., 1987. Effects of Bettenhausen (1989) who said that an academic Relationship Marketing on Relationship process conducted by higher education to test the Satisfaction, Retention and Prices in the Life ability of students. The academic process Insurance Industry, Journal of Marketing Research, 24(November): 404 - 411. described also indicates that the instructor pleased Marketing Association Chicago: American Marketing with the short-term feedback system. Furthermore Association, 1975: 119-123. Reprinted in Japan in Morstain (1977) conducted a study analyzing YTV Report, No. 98 (May 1975): 64-69. student satisfaction on the campus academic Earthman, G. I., and L. Lemasters. 1998. Where children learn: A discussion of how a facility affects program. The results of this study indicate that learning. Paper presented at the annual meeting of students are not satisfied have to learn different the Virginia Educational Facility Planners, orientation with students who are satisfied and Blacksburg, Va., February. (ERIC Document Reproduction Service No. ED419368) quite satisfied. Based on the various descriptions Elliott, Kevin M & Margaret A. Healy (2001). Key factors above, the academic process is also one of the influencing student satisfaction related to factors affecting the satisfaction of the learning recruitment and retention. Journal of Marketing for process. Higher Education, 10(4):1-11. Erdogan, Mehmet., Usak, Muhammet., Aydin, Halil. (2008). Investigating Prospective Teacher’ CONCLUSION Satisfaction with Social Services and Facilities in 1. The better and the facilities provided will further Turkish Universities. Journal of Baltic Science increase student satisfaction in following the Education, Vol. 7, No. 1, 2008 Fedor, D.B. & Bettenhausen, K.C. (1989). The impact of teaching and learning process. purpose, participant preconceptions and self- 2. Attitude and services by all administrative staff serving bias on the acceptance of peer evaluations. in support of teaching and learning process is Group and Organization Studies, 14, 182-19 able to contribute to the satisfaction mhasiswa. Helgesen, Oyvind and Erik Nesset, (2007), Images, Satisfaction and Antecedents:Drivers of Student 3. The better attitude, communicative, motivated Loyalty? A Case study of Norwegian University and services in the learning process provided College. Corporation Reputation Review, vol. 10 by all the academic staff will increase mhasiswa No. 1,pp. 38 - 59 June, Audrey Williams (2006), Facilities Play a Key Role satisfaction. in Students' Enrollment Decisions, Study Finds. 4. The better the academic process yamg given, Chronicle of Higher Education, Vol. 52 Issue 40 including assessment tests, assignments, Kember, David., Leung, Doris YP. (2006) Characterising papers, suitability of the material the more a teaching and learning environment conducive to making demands on students while not making increase student satisfaction in following the their workload excessive. Studies in Higher teaching and learning process Education Vol. 31, No. 2, April 2006, pp. 185–198 Kotler, Philip and Keller (2007). Consumer Behaviour. REFERENCES Prentice Hall Inc Baker, T.L, Taylor, S.A (1997), "Patient satisfaction and Kotler, Philip dan A.B. Susanto. (2000). Manajemen service quality in the formation of customers’ future Pemasaran di Indonesia. Salemba Empat. purchase intentions in competitive health service Kozanitis, Anasstasis., Chouinard, Roch., Desbiens, settings", Health Marketing Quarterly, Vol. 15 No.1, Jean Francois., (2007). Perception of Teacher pp.1-15. Support and Reaction Towards Questioning: Its

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Relation to Instrumental Help-seeking and Marsh, Herbert., Bailey, Michael. (1993). Motivation to Learn. Multidimensional Student Evaluation of Teaching International Journal of Teaching and Learning in Higher Effectiveness. Journal of Higher Education Vol 64, Education. 2007, Volume 19, Number 3, 238-250 No 1. Markwick, N. & Fill, C., (1995)., Towards a framework for Martensen & Grønholdt (2005)., Driving profitable managing corporate identity, European Journal of growth: A study of essential management practices Marketing, no. 31, number 5/6 , p. 396-409. McHarg, Jane., Goding, Lois., Caldarone, Lois., De Marlin, James W. (1987). Student Perceptions of End-of- Bere, Sam Regan., McLachlan, John. (2006). Course Evaluations. The Journal of Higher Availability of a virtual learning environment does Education, Vol. 58, No. 6 (Nov. - Dec., 1987), pp. not compensate for the lack of a physical facility. 704-716 Published Medical Teacher, Vol. 28, No. 3, 2006, pp. 258– 263

124 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

DEVELOPMENT OF CHIPS FISH SKIN PAYUS UMK GUNUNG ANYAR TAMBAK SURABAYA

Luky Susilowati1)*), Sulastri Irbayuni1) and Nuruni Ika KW1)

1) Economic and Bussiness Faculty UPN “Veteran” Jatim *) Email : susilowatiluky @gmail.com

ABSTRACT Fish processing industry is an activity that creates added value for fisheries commodities. Efforts processing of fishery products that lead to industrial activity is the processing of fishery products into food is bark chips payus fish. Gunung Anyar Pond is a place known as the village center or crackers in Surabaya. Current conditions for the quality of product branding and packaging design chips payus fish skin can not lift the image of the product and the value of the product as unique souvenirs of the city of Surabaya. Activities undertaken is to provide management training and product branding, how to improve the quality of bark chips fish payus, then by giving two machine tool spinner and 8 tool blander it is hoped they can practice and the sales can be increase. The results of these activities, bark chips fish payus be better quality , dry, crisp, and easy to rancidity, has a package design attractive, and airtight so that it can last longer and online marketing systems more effectively, efficiently with wider marketing area

Keyword : Quality, Packaging and ChipsFish Skin Payus

INTRODUCTION. follow the exhibitions held by the Industry and Development of UMK in Surabaya through the Trade. UMK plans to create a new packaging development and improvement of business variants with small size, the quality remains good opportunities and support can improve quality and but the prices in accordance with the ability of the production process in order to increase productivity consumer. while people's lives. The thing to note is the need Supervision of the quality of a program or to innovate production technologies are activity that is integral with the industrial world, the appropriate and progressive, which can lead to the world of business which includes the process of diversification of new products or the development production, processing and marketing of modern, of higher quality products effectively and efficiently. industries closely linked to the quality control Product development in UMK are often not because only the results of industrial products followed by the package is inadequate, making it quality to fulfill market needs is a consumer society less able to compete and penetrate broader in general. Packaging is one solution to attract market., Eg super market or the export market. As consumers because dealing directly with it is known that in order to explore the market consumers, as the development of the times and needed some requirements that packaging is increased competition, the packaging function hygienic, attractive, quality and shape of products. which used only as a container or a protector now Gunung Anyar Tambak is the center of industry turned into a selling tool that can provide and crackers. One is a superior production of fish skin create the image of the product that we sell. The chips payus. Payus fish skin chips produced by the major key to making a good packaging design is UMK still contains a lot of oil, oil content is high the packaging must be simple and nice so have enough this constraint. Moreover, consumers are added value, in addition to a bundle must have now increasingly clever in choosing a product both charm, a package will be successful there must be of their role and of his health for him. Payus fish a blend of marketing with design outer skin or the skin chips that contain too much oil contain no appearance of a product to attract consumers into cholesterol, so less so favored by consumers as it buying these products (Kotler, 2006). relates to health. Besides these chips is difficult to Based on the above analysis of the situation expand and it becomes less palatable. often faced problems as follows: On the other side of the packaging that held • Issues related to production: no names and labels as well as less attractive, 1. Quality of bark chips payus fish less than the chips wrapped in plastic production simple maximum, easily or quickly charred fried time, quickly become rancid and less crisp practical packaged in the form of 1 kg and 0.5 kg, 2. Design of packaging used was simple and ready to sell. For sales made with a variety of • Issues related to management: marketing models namely direct sales at home , or 1. Low market access through orders from consumers as souvenirs and

125 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

2. Limited capability in managing the business together and take advantage of this program as group well as possible. The next activity was held • The program aims to: Extension and Training on the management of 1. Technical training to improve the quality of marketing and packaging design and online fish skin chips payus 2. Giving spinner machine (Oil Filters) and business in the residence of Mrs Inayah and Mrs blander for production process Muniroh held on. 3. Practice appropriate technology. Below extension materials provided: 1. Effective Marketing Strategies Activities offered at this unit is to provide 2. Packaging Design management training and product branding, as 3. Online Marketing System well as training and mentoring on how to improve the quality of bark chips fish payus expected UMK RESULTS AND DISCUSSION can manage businesses bark chips fish payus able Aspects of Production and Micro bussines to increase its production by administering two Sumber Rejeki and Jaya Abadi machine tool spinner (Filters Oil), and 8 blander a. Making chips payus fish skin by using a spinner tools for these chips UMK group, hopefully they machine that is useful to reduce the oil content can practice and run so well that the sales in the chips, the chips production quality results increases can be widely known by the public / payus fish skin is getting better. So the fish skin consumers. payus chips are packaged in plastic becomes more dry, crisp and not moldy and durable. METHODOLOGY b. Effective Marketing Management Training. Methods / concepts that used to overcome Training given once and for 2 hours, the the problems of UMK is:cooperate with; training aims to improve the knowledge and 1. UMK chips in Gunung Anyar Tambak as well practical skills in marketing and strategies to as implementing activities targeted program. get market through better management. So 2. The Chairman of the UMK as a support that sales target can be achieved which can activity. further improve operating income. The training 3. LPPM UPN 'Veteran "Java as a patron of provided includes Pricing, Quality Products, science and technology activities as a whole. sales promotion, and distribution channels.

Transfer Model of Science and Technology for c. Training Packaging Design Training given once UMK chips Fish payus is through counseling and and for 2 hours. To display the image and view training on: the contents of the product. Packaging is 1. Training marketing management how to do usually molded or designed such that the marketing the product required a clear message that will be delivered will be captured knowledge of the product, pricing, and how to by the user of the product well. This training distribute their products and promotions that aims to provide insight on the chips business attract so consumers seem to come back to partners in order to better understand the buy. usefulness and the importance of packaging 2. Training on how to create attractive packaging used. designs. d. Training Online Business Through 3. Training on online marketing system. Internet. Training given once and for two 4. To support all the activities referred to then be hours, this training was given in order to expand given two units of machines Spinner and the marketing network reach, and facilitate the several blenders for improving product quality. marketing system more effective and efficient.

The program begins with the IbM conducted Both UMK become a partner in the activities Socialization Program IbM in the house chairman of this science and technology play an active role of the group UMK Crackers in Gunung Anyar in each of the activities organized. Besides Tambak Surabaya conducted on 28 April 2016 by participating as attendees, partners also play an inviting as many as 8 people UMK as chips active role to provide training places, and strongly business owners. Socialization is intended to supported by enthusiastic about science and convey to the UMK crackers on Program Hibah technology activities as a whole. After marketing Dikti IbM , so UMK crackers can understand the assistance through various exhibitions marketing relief of Higher Education, which in turn can work network and micro enterprises Sumber Rejeki and

126 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

Jaya Abadi become more widely among their REFERENCES booking from Jakarta and outside the island. Arpan M,1993. Pengawasan Mutu Pangan ,Tarsito ,Bandung Direktorat Pendidikan Tinggi, 2013. Panduan Penelitian CONCLUSION Dan Pengabdian Masyarakat Dikti Edisi IX Tahun 1. The existence of two (2) units spinner engine 2013 results bark chips payus fish better quality , Mubyanto,2003. Peluang Kerja dan berusahaan di more dry, crisp, and easy to rancidity. pedesan, Yogjakarta BPE Kotler Philip,2006 “ Manajemen Pemasaran, 2. Training on marketing and packaging are given Prenhallindo,Jakarta two UMK has meant more attractive packaging Soekarto, S.T., 1990. Peranan Pengemasan dalam design, and airtight so that it can last longer. Menunjang Pengembangan Industri, Distribusi dan Ekspor Produk Pangan di Indonesia. Di dalam : 3. The existence of online marketing training S.Fardiaz dan D.Fardiaz (ed), Risalah Seminar system product marketing more effectively and Pengemasan dan Transportasi dalam Menunjang efficiently to reach a wider marketing area Pengembangan Industri, Distribusi dalam Negeri dan Ekspor Pangan. Jakarta. Syarief, R., S.Santausa, St.Ismayana B. 1989. Teknologi

Pengemasan Pangan. Laboratorium Rekayasa Proses Pangan, PAU Pangan dan Gizi, IPB

127 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

MODEL FUNCTION ESTIMATED CONSUMPTION IN SURABAYA BASED APPROACH EXPENDITURE

M. Taufiq1), Wiwin Priana1) and Djohan Mashudi1)

1) FEB UPN Veteran Jatim

ABSTRACT In a country's economic activity, consumption patterns have an important role in it as well enormous influence on the stability of the economy. The higher the level of consumption, the higher the rate of change in economic activity and changes in the national income of a country. Family consumption is one of the economic activities of the family to meet the various needs of goods and services. of the commodity that will have its own satisfaction. Therefore, consumption is often used as an indicator of the welfare of the family. The welfare of society is the goal and aspiration of a country The level of prosperity of a country is one measure to determine the success of development in the country and is one of the supporting consumption. The greater the expenditure on consumption of goods and services, the higher the level of welfare of the family. This study uses primary and secondary data obtained from 100 respondents and the relevant agencies, namely Bank Indonesia and the Central Statistics Agency (BPS), East Java. The analysis used in this study is a model of simple regression analysis and hypothesis testing by t-test. Based on the results of the analysis obtained Constants (β0): Y = 253874,164 Shows, If Revenue (X), is constant, then Consumption (Y) will increase by 253874,164 rupiah. While the X1 Regression coefficient (β1): Y = 0,548, when Revenue Shows (X) increases 1%, the consumption (Y) will increase by 0,548 rupiah. Revenue (X¬¬) influence on Consumption (Y). This means that if the level of income increases, consumption will also increase. Meanwhile, when revenues are declining, consumption will also decrease.

Keywords: Consumption (Y), Revenue (X)

PRELIMINARY Theories about consumption expenditures In the economic activity of a country, advanced by. J.M Keynes proposed that consumption has an important role in it as well i consumption of a person will depend on the level enormous influence on the stability of the of income that has been received. First, Keynes economy. The higher the level of consumption, the conjectured that the marginal propensity to higher the rate of change in economic activity and consume (the marginal propensity to consume) the changes in the national income of a country. amount consumed in any additional income is Family consumption is one of the economic between zero and one. Marginal propensity to activities of the family to meet the various needs of consume is crucial to Keynes policy goods and services. i of the commodity that will recommendations to reduce unemployment that have its own satisfaction. Therefore, consumption are increasingly widespread. Fiscal policy is often used as an indicator of the welfare of the strength, to affect the economy as indicated by the family. (Mizkat, 2005: 127) fiscal policy multipliers arise from feedback Household consumption expenditure is the between income and consumption. Second, value of expenditure made by households to Keynes stated that the ratio of consumption to purchase various types of its needs in a given income, which is called the average propensity to year. Household income received will be used to consume (average propensity to consume), falls as buy food, pay for transportation services, paying income rises. He believes that saving was a luxury, children's education, paying rent and buying so he rich people put money in a higher proportion vehicles. The goods were purchased household to of their income than the poor. Third, keynes found meet its needs, and is called consumption income is an important determinant of expenditures consumption and interest rate does not have an Formulation of the problem important role. Keynes proposed that influence the Based on the above, the formulation of the level of consumption only a theory. The conclusion problem in this research is: How is the that the short-term effect of the interest rate on consumption function model community of individual expenses of the income is secondary Surabaya and how big the multiplier effect of and relatively not three this allegation, keynes consumption to the GDP of Surabaya. consumption function is often written as: Overview Theory C = a + bY, a> 0.0

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Consumption and the Consumption Function variables in this study are income is total The consumption function is a curve that acceptance of the money and not the money a describes the nature of the relationship between person or household during certain periods of household consumption with national income. The rupiah unit. consumption function can be expressed in the Mechanical Sampling equation: C = a + bY. Where a household The population in this study is all households consumption when national income is 0, b is the in the city of Surabaya and taken a sample of 100 marginal consumption heeling, C is the level of Households can be classified into high-income consumption and Y is the national income. households, medium and low. The data used in There are two concepts to determine the this study is a type of primary and secondary data. relationship between the consumption of 1. Primary data is data obtained from the disposable income and savings income with the interviews to respondents using a questionnaire concept of consuming heeling and heeling saving. (questionnaire) on income, consumption and The inclination to consume can be divided into two: saving of respondents. the inclination to consume marginal and the 2. Secondary data is data obtained from the inclination to consume on average. consume relevant agencies of the Central Statistics marginal can be expressed as MPC (marginal Agency (BPS) covers. a wide range of socio- propensity to Consume), can be defined as the economic data population, and data obtained ratio between the increase in consumption (ΔC) from reference books and numerous articles. due to the increase of disposable income (ΔYd). Data collection technique MPC value can be calculated using the formula: In collecting the data, conducted through MPC = ΔC / ΔYd. consume an average expressed several steps in accordance with the applicable as APC (Average propensity to Consume), which procedures, among others: is the ratio between consumption expenditure (C) 1. Types of Data with income. APC value can be calculated using The data used in this study is a type of primary the formula: APC = C / Yd and secondary data obtained or collected from Heeling saving can be divided into two save respondents and questionnaire data from marginal and the inclination to save on average. agencies or institutions associated in this study Heeling save marginal expressed by MPS later this data is reprocessed. (marginal propensity to save) is the ratio between 2. Data Sources the increase of savings (ΔS) with increasing The data used in this study were obtained from revenues (ΔYd). MPS value can be calculated questionnaires the respondents and the using the formula: MPS = ΔS / ΔYd. While the relevant agencies, through the study of inclination to save on average represented by APS literature to get information, a picture and as (Average propensity to save), implies a theoretical basis with some of the literature in comparison between savings (S) with income (Yd). the form of journals, papers, and reports related APS Values can be calculated using the formula: to this research. APS = S / Yd. (Sadono Sukirno, 2003: 94-101). Mechanical Analysis and Testing Hypotheses Data were analyzed with quantitative RESEARCH METHODOLOGY methods and simple linear regression analysis . The operational definition and measurement This simple linear regression analysis using OLS Variable (Ordinary Least Square) with SPSS version 17 In this study the variables that are used can which can be written as follows: be divided into two types, namely: Y = β0 + β1 X1. Nachrowi, et al (2005: 315) 1. The dependent variable / dependent variable (Y) RESULTS AND DISCUSSION The dependent variable in this study is the The economic growth of Surabaya can be consumption (C), the amount of expenditure seen from the growth of Gross Domestic Product made by households to purchase various types (GDP) of the city. Surabaya city's economy in 2011 needs within one month measured in rupiah. was based on a group of the tertiary sector, 2. Variables / independent variable (X) especially trade, hotels and restaurants accounting The independent variables are variables that for 42.63%; manufacturing industry sector 21.37%, explain (explanatory variable). The independent as well as the transport and communications

129 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia sector amounted to 11.75%. Number three sectors analysis results that 0,548 is the benchmark to in 2011 contributed to the Gross Regional determine how much influence the consumption in Domestic Product (GRDP) Based on Constant the GDP Kota Surabaya, with the following Prices (ADHK) Surabaya respectively by 42.63% formula: for trade, hotels and restaurants with the value of . C = C0 + MPC.Y GDP ADHK Rp40.25 trillion ; the manufacturing After knowing each of these results the next step is sector with a value of GDP ADHK Rp20.19 trillion, to add these results. From these results it can be with a contribution of 21.37%; as well as the seen in private consumption of Surabaya. As for transport and communications sector which the other formulas to search for public contributed 11.75% to the value of GDP ADHK consumption, namely the GDP - [I + G + (X-M)] = Rp11.09 trillion. C. Economic growth in the city of Surabaya in Income per capita in Surabaya from the year 2015 is relatively higher than the economic growth 2010 - 2015 has increased growth. The highest per of the province of East Java (7.22%) and national capita income increased in 2012, reaching 12.67% (6.46%). This causes the GDP number ADHB city amounting to 58,644,845 from 52,049,538 the of Surabaya in 2015 increased by 14.67% previous year. And the lowest growth occurred in compared to 2014 which reached Rp235.26 trillion. 2010 to 2011 which amounted to 1.57%. Based on Likewise with the GDP number ADHK city of the results of the questionnaire after the data is Surabaya in 2011 also increased to Rp94.44 processed and found levels of CO (constant) of trillion, higher than the 2014 value of Rp87.83 253,874.164 and a regression coefficient of 0.548 trillion. With the increasing number of population of with a significant level of 5%. Then it can be the city of Surabaya in 2015 that reached 3 million, formulated a model of consumption of these the value of GDP per capita (based on the value results with MPC (marginal propensity ADHB) to Rp77.78 million. Consumption) and MPS (marginal propensity to Estimates of household consumption of Saving). MPC and MPS = 0.548 = 1 - MPC, Surabaya, East Java and National from year to namely MPS = 1 - 0.548 = 0.452 year is stable. Judging from the real contribution of With both models can be used to make household consumption estimates Surabaya City estimates of potential savings as a source of and it can be said almost exactly the same as the investment and can also be used to measure the national consumption estimates ranged between pattern of economic capacity in the city of 55-56%. Meanwhile, when compared with the Surabaya. MPS can be seen from the formula estimated consumption of the East Java city of MPS = 1 - MPC. Surabaya and national levels far below, namely East Java's share ranges from 70%. This is Hypothesis Testing and Discussion because East Java province which is very This analysis was conducted to determine the influential as the spearhead of the trade, so that effect of independent variables Income (X), the the private consumption becomes high. consumption (Y). Based on the results of the Description of Research Results calculation processing of the data obtained by Description of the results of this study provide simple linear regression equation as follows: an overview of the estimated consumption in the Y = 253874.164 + 0.548 X city of Surabaya and Surabaya pattern of From the equation above can be described as economic capability. follows: Household consumption expenditure is the a. Constants (β0) = 253874.164 value of expenditure made by households to Shows, if Revenue (X), is constant, then purchase various types of its needs in a given Consumption (Y) will increase by 253874,164 year. Household income received will be used to rupiah. buy food, pay for transportation services, paying b. Regression coefficients X1 (β1) = 0,548 children's education, paying rent and buying Shows that if Revenue (X) increases the vehicles. The goods were purchased household to consumption of 1 rupiah (Y) will increase by meet its needs, and is called consumption 0,548 rupiah. And the results of hypothesis expenditures (Sukirno, 1994: 38) testing showed a significant result that the Estimates of sectoral contribution to the GDP significance level of 0.05. of Surabaya, MPC has been known from the

130 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

Based on the partial test can be concluded consumption is one of the sectors that contribute that the revenue in the period a significant and between 50% and 70% to GDP both national and positive effect on consumer spending in Surabaya. local. These test results are in accordance with the theory that according to Keynes in Sukirno (1981: CONCLUSION 104) states that an important factor that From the description of the research, analysis determines the level of consumption and saving is and discussion in chapter IV before, it can take household income. some conclusions as follows: Based on testing together we concluded that a) From the above analysis results obtained MPC the consumption of the previous period, disposable and MPS = 0.548 = 0.452. MPS obtained from income disposable income a certain period and MPS = 1 - MPC. MPC and MPS is used to prior periods have positive influence and significant determine how the contribution of consumption impact on consumer spending in Indonesia. The to the GDP. findings of this study in accordance with the b) From the analysis above it can be concluded opinion of Dornbusch (2004: 35) that define the that the pattern of the economic capacity of the functions of modern consumer by combining the city of Surabaya are in the consumer sector. formation of expectations of consumption as emphasized by the theory of consumption with the Suggestion permanent income hypothesis (permanent-income From the above conclusions, the few hypothesis) with the variables of wealth and suggestions that can be delivered by the authors is demographic as emphasized by the theory the as follows: consumption cycle hypothesis (life-cycle a) For parties advised the government to improve hypothesis). income distribution patterns for the better so Surabaya can be seen that the GDP is that multiplier effect of consumption to strongly influenced by private consumption ranged economic growth is greater. between 55% up to the year 2011 consumption BIBLIOGRAPHY greatly affect the GDP of Surabaya. On the other Anonymous, 2012, "Surabaya in Figures", Publisher hand Export and Import also very influential in the Statistics Agency of East Java, Surabaya GDP Surabaya. Export and Import accounted for , 2000-2012, "Gross Domestic Product of more than 30% of total GDP in that year. Export Surabaya", Publisher Central Bureau of Statistics , 2012, "Financial Statistics Indonesia", Publisher import here in question is exported to overseas or Central Statistics Agency Surabaya East Java outside the area. This is due to the location of the , 2007: 10. "Consumption of the Community", city of Surabaya is a very strategic location of the Publisher Central Statistics Agency Surabaya East city. Namely as a trade route in eastern Indonesia. Java Deliarnov.1995. "Introduction to Macro economy". First This is in line with Keynes's theory that relies Edition. Jakarta: University of Indonesia (UI-Press). on statistical analysis, and also made allegations Diulio, Ph. D, Eugene A. 1993. "Macroeconomic about consumption based on introspection and Theory". Fourth mold. Jakarta: Erland Dornbusch, Rudiger, Stanley Fischer, and Richard casual observation. First Keynes conjectured that Startz. "Macroeconomics 7th edition". New York: the marginal propensity to consume (the marginal Mcgraw-Hill. propensity to consume) the amount consumed in Irawan, Kakung Ronny, 2005. "Factors Affecting any additional income is between zero and one. Penghimnpunan Savings On Commercial Bank Government In Surabaya", Thesis Faculty of Marginal propensity to consume is crucial to Economics "UPN Veteran" East Java Keynes policy recommendations to reduce Mishkin, Frederic S. 1998. "The Economics of Money, unemployment that are increasingly widespread. Banking and Financial Markets, 5th edition". The strength of fiscal policy to influence the Addison-Wesley Publishing Company Sumarwan.1993. "Family Future and Change economy as indicated by the fiscal policy Consumption Patterns". News Demographics. multipliers arise from feedback between income Jakarta: LD.FEUI and consumption. This means that consumption Sukirno, Sadono.2004. "Introduction to Microeconomic Theory". PT. King Grafindo Persada, Jakarta: 2000 has a huge impact on the economy because

131 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

ECONOMIC GROWTH MODEL LOCATION QUOTIENT (LQ) IN EAST JAVA PROVINCE

Wiwin Priana, Dewi Krishna, Ira Wikartika

SUMMARY Sector Economic region is the engine of national development, because without the support of the region - an area that is the national development will be difficult to achieve. Similarly carried by national development, regional development was also of, by, and for the region. Regional development is the fruit of a combination of innovation and the area it self to the achievement of progress and prosperity. One indicator of the achievement of a regional development is economic growth continues to increase towards significantly. This means that economic growth can continue to increase along with improvements - improvements that exist in the driving sectors of the economy. The success of regional development are also assessed on the ability of the area to meet community needs and develop all the existing potential In the study is a continuation of the first research on the growth sectors of Shift Sahare in the county and city on East Java, it can be seen the results Shift Share PR (Potential Regional) of counties and cities have the advantages sectors driving GDP growth in East Java PR 1 then the sector Sector Base and When LQ < 1 sectors such non sector basis,

Key-worth : Basis, Non Basis Sector

BACKGROUND Efforts to increase the per capita income of Development is a process of change that is the community, where the growth rate of Gross implemented by all nations - nations that exist in Domestic Product (GDP) exceeds the rate of the world, since development is an integral part of population increase in a year. the effort to achieve progress for the nation itself. Regional development is a sub-system of the While national development is a series of national development and is a part that can not be development efforts conducted continuously and separated from the development nasional.Oleh covers all aspects of society, nation and state. The therefore regional development carried out at main purpose of a national development is to various aspects of life, which among other things realize a just and prosperous society that is sought to implement economic development (BPS equitable based on Pancasila and the Constitution- East Java Province 2006: 2) the Constitution of 1945. The national development In connection with the desire to realize carried out jointly by all components, such as the development would be expected, there are two people and government. Society is a key actor in conditions that need to be considered because it the development as the motor, while the can affect the regional development planning government is as a director or controller which in process, namely: (1) the pressure that comes from turn can create an atmosphere that supports one the environment in the country and abroad that another. affect the needs of the region in the process of The main element of development lies in an building its economy; (2) the fact that perekonoiam effort to make new combinations in economic regions within a country is influenced by each activities in which there are various possibilities sector differently, suppose some areas that exist in a state of growing and steady. This experiencing growth in the industrial sector, while new combination appears in the form of what is other areas decreased. referred to as innovation (Anonymous, 2000: 103). This is what explains the difference in the National development is of, by, and for the people perspective of local communities about the who were held in all aspects of life and directed to direction and meaning of regional development achieve progress and prosperity. Development is (Kuncoro, 2005: 47) .In general it can be said that done in a planned, thorough, effective, integrated, the regionalization of economic activity are closely and sustainable in order to improve people's lives. related to the pattern of development, the economy The national development focuses on the and changes in the type of role that the various economic sector is the primary engine of economic activities in the overall activity ekonomic development and encouraged the development of this, the analysis of the development of other fields are implemented harmoniously and development of a region, the smaller one it would integrated. So basically, the construction (Aditia be easier to identify the problems and sources of 2010 ) are: potential, so that it will facilitate the preparation of

132 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia the plan comprehensive (multi-sectoral) and the is very big influence on the size of public easier it is to set goals to be achieved. There are consumption. (Kuncoro, 2006: 27) nine sectors of the economy or business groups 2. Gross Domestic Product (GDP-Gross Domestic that generally can be counted in GDP or the GDP Products) is the total value on all the final if within the scope of regional / local, namely: output produced by an economy (whether 1. The agricultural sector conducted by resident citizens as well as 2. The mining and quarrying sector people from other countries who live in the 3. The manufacturing sector country). (Todaro and Smith, 2004: 56) 4. The electricity, gas and water supply 3. Definition of Gross Domestic Product by the 5. The building sector Central Bureau of Statistics is the value of 6. Trade, hotels and restaurants 7. The transport and communications sector production of goods and services produced in a 8. The financial sector, leasing and business region (regional) within a certain time within a services year.(Anonymous, 2002: 6) Economic growth 9. The services sector (BPS East Java, 2010: 12). could come from growth in the AD or AS. Anatara curve intersection point with the US From the calculation of the economic sectors, Army is the point of economic balance the condition of the economic structure of a region (equilibrium) which produces a number of or country can be determined. An area is said to aggregate output (Gross Domestic Product) be agricultural if the role of the agricultural sector is with a certain specific general price level. very dominant in its GRDP and vice versa, said to be an industrial area when the more dominant East RESEARCH METHODOLOGY Java industrial in. Provinsi sector is the largest Analysis of LQ (Location Quotien) contributor to the GDP after , because In this analysis used some of the data of the location of economic resources ever separated Gross Regional Domestic Product (GDP) of East by spatial / space, then the economic development Java Province, and the GDP per sector Kbaupaten of a region is always different from other regions. / city and Manpower persektor Similarly, zoning issues of development in East a. GRDP is the reference area Java Province (Anonymous, 2010: 1). Is the average total value of production of Formulation of the problem goods and services produced in a region 1. Sectors whether each area has the advantages (regional) and in particular certain time (within of growing economic sectors in East Java is a one year) is the reference area. In this case the sector basis or non bases.The research objective province of East Java and is expressed in units aim of this study researchers wanted. Each area of millions of rupiah. has a sector of excellence that fosters economic b. Labor growth in East Java that sector basis or non bases Is a person who has worked in various sectors in the region. in a region in units of the, Types and Sources of Benefits of research Data The data used in this research is This research is expected to benefit secondary data, such as time series data taken 1. As a reference for further research from 2010 to 2014.Sumber the data obtained 2. As consideration for the relevant agencies take from the Office for National Statistics Agency of a role in local planning policies East Java Province, and other libraries either it Theoretical basis belongs to educational institutions or the local Definitions related to Gross Domestic Product, government of East Java. according to some opinions, including: 1. Gross Domestic Product is the total value of Techniques of Data Collection In this study production of goods and services produced in a data collection techniques done in two ways, given area in a given time is usually within one among which: year. Therefore, the regional gross domestic 1. Studies Library product showed the ability of a particular region Data collection is done by reading books of in generating revenue or services to the factors literature as library materials that can support which participate in the production process of input discussed in this thesis. the local area. Economic growth in the country 2. Field Study as reflected in regional gross domestic product

133 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

The field research is intended to obtain Of the 38 City and Region have 27 region secondary data required for thesis writing, data in the East Java district then the number of the reports, records related to the issues discussed District Agricultural Sector Base 27/38 x 100% at the institutions mentioned above. =71.05% This means that most districts Easter Java is Agricultural Base Mechanical Analysis Data Processing Data Mining Sactor related to the object of research prepared for Base Sector Mining sector County / city in further processed using mathematical analysis East Java Mining Sector Value LQ Regency / City tools in the form of Location Analysis Quotien / LQ in East Java then be observed for a certain period. The notation 1. LQ 1.90 Gresik used in both engineering analysis of this study are: 2. LQ 19.68 Bojonegoro Analysis of LQ (Location Quotient) the GRDP 3. LQ 8.08 Tuban persektor district / city or GRDP persektor East 4. LQ 4.51 Sampan Java 5. LQ 4.71 Sumenep LQ = 6. LQ 1.57 Pacitan 7. LQ 1.06 Kediri

8. LQ 1.10 Tulungagung When the LQ <1 is the sector of non Base 9. LQ 2.15 Banyuwangi When the LQ> 1 is the sector sector Base 10. LQ 1.32 Jember

RESULTS 11. LQ 1.03 Situbondo The Results of this paper is Analysis Location 12. LQ 1.26 Biltar Quotien (LQ) in Region/city in East Jawa. There are 12 areas that are Base Mining I Agriculture Sector East Java is the mining means there are 12/38 x The Based Agli cultere Sector in East Java 100% = 34.21% have 27 region Industry Manufacture Sector 1. LQ 1.29 Mojokerto Region Sector Base Manufacturing Sector regencies / 2. LQ 2,67 Lamongan Region cities in East Java LQ Value Manufacturing Sector 3. LQ 1.33 Bojonegoro Region Regency / City in East Java 4. LQ 1.58 Tuban Region 1. LQ 1.71 Sidoarjo Regency 5. LQ 1.90 Probolinggo Region 2. LQ 1.86 Gresik 6. LQ 1.66 Pasuruan Region 3. LQ 1.22 Pasuruan 7. LQ 1.87 Bangkalan Region 4. LQ 2.67 Kediri 8. LQ 2.69 Sampang Region 5. LQ 1.19 Malang 9. LQ 3.18 Pamekasan Region Industry sector which becomes sector basis in 10. LQ 3.10 Sumenep Region the districts / cities in East Java region turned out 11. LQ 2.39 Madiun Region to be only 5 or 13.15% 12. LQ 2.36 Ponorogo Region Electricity, Gas, Water. Sector 13. LQ 2.05 Magetan Region Sector Base sectors Electricity, Gas, Water 14. LQ 2.42 Ngawi Region District / town in East Java LQ Value Sector 15. LQ 2.46 Pacitan Region electricity, gas, water districts / municipalities in 16. LQ 1.78 Kediri Region East Java 17. LQ 2.52 Trenggalek Region 1. LQ 1.07 Sidoarjo Regency 18. LQ 1.06 Tulungagung Region 2. LQ 1.23 Gresik 19. LQ 1.82 Jombang Region 3. LQ 2.60 Tuban 20. LQ 1.83 Nganjuk Region 4. LQ. 1.67 Mojokerto 21. LQ 2.89 Banyuwangi Region 5. LQ. 2.20 Surabaya 22. LQ 2.28 Jember Region. 6. LQ 1.54 Pasuruan 23. LQ 1.87 Situbondo Region 7. LQ 1.69 Pasuruan City 24. LQ 2.80 Bondowoso. Region turned out that only 7 regions with a base sector 25. LQ 1.65 Malang Region on gas water electricity sector, 7/38 x 100% = 26. LQ 2.86 Blitar Region 18.42% 27. LQ 1.25 Batu City Construction Sector

134 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

Sector Base Construction sector regency / city Financial, rental, services of the Company in East Java LQ Value Construction Sector Sector. Regency / City in East Java Sector Financial sector Base regencies / cities 1. LQ 1.47 Surabaya in East Java LQ Value Financial Sector Regency / 2. LQ. 1.25 Pasurua City City in East Java 3. LQ. 2.06 Bangkalan 1. LQ 1.03 Tuban 4. LQ 1.13 Pamekasan 2. LQ 1.18 Surabaya 5. LQ. 1.20 Madiun 3. LQ 1.41 Probolinggo City 6. LQ. 1.50 Magetan 4. LQ 1.51 Pasuruan. Region 7. LQ. 1.17 Ngawi 5. LQ 1.29 Pameksan 8. LQ. 2.06 Pacitan 6. LQ 1.49 Ponorogo So have 8 base area Construction or 8/38 x 100% = 21.05% 7. LQ 1.07 Ngawi Trade, and Hotel. Sector 8. LQ 1.60 Pacitan Base Sector Trade sector, Hotel Regency / 9. LQ 1.73 Tulungagung City in Jawa Teams LQ Value Sector Trade and 10. LQ 1.07 Jember Hotel Regency / City in East Java 11. LQ 1.59 Malang 1. LQ 1.14 Lamongan 12. LQ 2.49 Blitar City 2. LQ 1:31 Mojokerto In the Financial sector, leasing the base as much 3. LQ. 1.72 Surabaya as 12 regional or 31.57% 4. LQ. 1.45 Kota Probolinggo Services Sector 5. LQ. 1.25 Pasuruan Sector Base Notably, the services sector is 6. LQ. 1.13 Madiun City district / city in East Java Mining Sector Value LQ 7. LQ. 1.37 Madiun Regency / City in East Java 8. LQ. 1.23 Tulungagung 1. LQ 1.09 Mojokerto 9. LQ 1.22 Jombang 2. LQ. 1.24 Lamongan 10. LQ1.23 Nganjuk 3. LQ. 1.07 Bojonegoro 11. LQ 1.20 Situbondo 4. LQ. 2.40 Mojokert 12. LQ 1.26 Malang 5. LQ 1.60 .Probolinggo City 13. LQ 1.83 Blitar City 6. LQ. 1.45 Pasuruan 14. LQ 1.59 Batu City 7. LQ. 1.25 Pasuruan In the sector of Trade, Hotel there are 14 areas 8. LQ. 2.14 Bangkalan that basis, or 14/38 x 100% = 36.84% 9. LQ. 1.62 Sampang Transportation and Communicates Sector 10. LQ. 1.71 Pamekasan Sector Base the transportation sector 11. LQ 1.24 Kabapaten Sumenep regencies / cities in East Java Transportation 12. LQ. 1.91 Madiun Sector Value LQ Regency / City in East Java 13. LQ. 1.88 Madiun 1. LQ 2:08 Regency Sidoarjo 14. LQ.1.27 Ponorogo 2. LQ 2.35 Mojokerto 15. LQ. 2.52 Magetan 3. LQ 1.72 Surabaya 16. LQ.1.70 Ngawi 4. LQ 2.28 Kota Probolinggo 17. LQ. 2.29 Pacitan 5. LQ 1.03 Probolinggo 18. LQ.2.03 Kediri 6. LQ 2.09 Pasuruan Region 19. LQ. 1.96 Trenggalek 7. LQ 1.18 Bangklan 20. LQ. 1.52 Trenggalek 8. LQ 1.37 Madiun 21. LQ. 1.34 Jombang 9. LQ 1.06 Pacitan 22. LQ. 2.33 Nganjuk 10. LQ 1.23 Tulungagung 23. LQ. 1.50 Malang 11. LQ 83 Kota Blitar 24. LQ 1.64 Malang For the transport and communications sector da 11 25. LQ. 1.49 Blitar area aritnya basis 28.94% of the entire area in 26. LQ. 2.64 Kota Blitar East Java 27. LQ. 2.08 Kota Batu The services sector so there are 27 Region / City which is a sector basis, or 71.05%.

135 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

CONCLUSIONS AND RECOMMENDATIONS ______, 2009. Gross Regional Domestic Product of From these results above it can that the area East Java Province, the Bureau of East Java Province and Regional Development Planning having the largest base sector In East Jawa is the Agency of East Java Province. agricultural sector 27 region or 71.05% and the Adisasmita, Raharjo, 2010. The Regional Development services sector by 27 Regional or (71.05%.) Sector and Spatial Planning, Graha Reader, Yogyakarta. is the sector least 5 Region l industry or sector Anwar, M. Arsyad, 1999. Thought, Implementation, and Planting Economic Development. Gramedia, 13.15% and electricity, gas, water by 7 region or Jakarta. 18,14% Arsyad, Lincolin, 1999. Introduction to Local Economic Suggestion Development and Planning, First Edition, BPFE, Jogjakarta. The government is expected to boost the ______, 2006. Analysis of Potential Areas, cited sector of small value base such as industry sector, Training Module District and Provincial Economic and electricity, this means that the infrastructure Development, Yogyakarta. has not been evenly distributed, the need for Bayu, Septian, 2009. Regional Economic Analysis On Regional Unit Development (SWP) East Java government spending to boost the sector that Province IX (Kab. Bojonegoro district. Tuban), development is evenly distributed throughout the Thesis Faculty of Economics National province of East Java Development University "Veteran" East Java. Chumaidy, Yanuar, 2006. Potential Analysis in the

Development Sector Unit Development Region VI BIBLIOGRAPHY Year 1996-2003, Thesis Faculty of Economics, Anonymous, Gross Regional Domestic .The products of University of Airlangga, Surabaya. East Java 2009 Shifting Base Year and Estimated Fembyantara, Fhenda, 2009. Regional Typology Gross Regional Domestic Product of East Java in Analysis on Regional Unit Development I 2013, the Central Statistics Agency Region of East Gerbangkertasusila East Java, Thesis Faculty of Java, Surabaya. Economics National Development University ______, 2004 GRDP Regency / City - the period 2009 "Veteran" East Java, Surabaya. East Java, Surabaya East Java BPS. Herwindo, Nice, 2000. Against Economic Analysis of ______, 2009. Gross Regional ProdukDomestik Regional Economic Development in Unit Regency / City Se East Java from 2004 to 2008, Development Region VII East Java 1993-1998), the Bureau of East Java Province and Regional Thesis Faculty of Economics, University of Development Planning Agency of East Java Airlangga Province.

136 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

INFLUENCE POLICY TO BE PTN UPNV JATIM TO PERFORMANCE REVENUE AND LECTURER

Niniek Imaningsih, Muchtolifah, Sishadiyati

ABSCTRACT Policies and election UPNV status Jatim formerly nauangan dKotertis PTS under the VII region after the presidential decree RI no. 122 of 2014 on UPN Veteran penegrian of East Java to change the status of PTS into PTN will affect mekarisme administration salaries, wages and allowances, educational activity honorarum Lecturer in their duties in the field of education-teaching, research and community service have a big responsibility that can be seen from his attitude in perceiving how the work that has been done. Satisfaction lecturer in work can be seen of how far he had felt prosperous subjectively. Subjective wellbeing is seen its influence in terms of the number he received (basic salary and allowances of the lecturers certification) every month in carrying out his work as a lecturer and emotional intelligence he had. With this Penegrian the researchers will examine how performance is measured from Gosen activities in the learning process as outlined in the faculty satisfaction in work, income she receives, welfare subiektif, emotional intelligence Total samples taken are 100 lecturers UPN "Veteran" East Java. Of the 445 lecturers and civil servants PTY.Data processed using SPSS statistical technique of multiple regression with Karl Pearson. This study provides results

Keywords: Performance professors, lecturers revenue,

PRELIMINARY manage emotions and others in a positive and Basically, this man wants to live in peace and productive (Anand, R. & Suriyan, GU, 2010), is every human being must able to get the to earn needed in dealing with problems-masalh that often money by working. To be able to make ends meet arise in implementing a job as a lecturer. Lecturers in this world, man will choose one of the few jobs with high emotional intelligence have the ability to that exist even according to his ability. There are manage the emotion in a positive way so that hundreds of jobs that can be done and one of them those concerned can avoid the negative behaviors is a lecturer. Lecturer, as a lecturer, in carrying out such as anger in the classroom, act violently its functions are professional educators and against students or colleagues, etc. With its scientists with the main task of transforming, emotional intelligence, a lecturer can process developing and disseminating science, technology different emotions into something productive and and the arts through education, research and beneficial to themselves or others. community service (PERMENPAN, 2013). Thus, In addition to the above, a lecturer at the being a professor is not an easy job for the university are also required to make a report individuals concerned to perform three things at Lecturer Workload each semester in an effort to once, namely: educators, researchers and public improve the performance of lecturers according Tri servant. Dharma College. Moreover, the magnitude of the In carrying out the profession as a lecturer, an number of credits in each of faculty performance individual will be faced with various challenges also resulted in the opportunity that faculty to be associated with the world of education-teaching, able to take care of the functional rank and also research and community service. In duna certified lecturers (lecturers certification) education-teaching, a teacher interacts with Certification lecturers is the process of granting students who have a complex personality certificates to lecturers in office (the game, 2007). (introvert, extravert, etc.), variations in education According to the regulations of the minister, (ranging from SMU, private, vocational, etc.), lecturer certificate held through competency testing family upbringing (which vary from permissive, related to: authoritarian, and a combination of both), the a. Academic qualifications and work ujuk academic abilities of different, sometimes Tridharma college conflicting, etc. of teaching and learning in the b. Perception superiors, peers, students and classroom. Lecturers also interact with fellow ourselves about the ownership of pedagogical, professors in a professional working relationship professional, social and personality which not infrequently can also cause problems. c. Self-declaration on the contribution of the On that basis, aspects of emotional intelligence as lecturer in the implementation and development the ability to effectively understand, express and of three responsibilities of higher education.

137 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

Serdos a dream of all the lecturers for the Judging by contributions from the salaries of lecturers who have been certified lecturers the lecturers in East Java UPNV the employee lecturers are entitled to a professional allowance who has the status of civil servant lecturers earn corresponding legislation (the game 18 of 2008). Same with lecturers PTY (with a record of each For lecturers are certified and have the registration lecturer does not have a structural position). Many number of lecturers with academic hierarchy studies have found a positive correlation between Expert Assistant, Associate Professor danLektor income individuals with subjective well-being of a Head and Professor or Professor will get an person (Diener, 1984; Diener et al., 1985; allowance of 1 (one) times the basic salary with Easterlin, 1974 in Diener et al., 1993). According to certified educators. Diener et al., (1993) happiness and income of a Lecturer at the Faculty of Economics of UPN person in a correlated state because the rich are "Veteran" East Java, with various levels of more likely to exceed some standard variable for academic lecturers certification program has been the good life. In addition, in accordance with the implemented, the following data is specified: relative standard approach, people with an income Table 1. Comparison of Total Dose UPN The comparable (and probably the same level of lecturer certificate or not lecturers certification satisfaction of the needs of default), may feel happy or sad if it depends on their income in the NO Status lecturers Number of lecturers Serdos past or those around them. yet serdor Wellbeing and performance are the two variables are not biased separated when welfare is No Status Total Certificate Un good then performance will also be high, thus Lecture Lecture Serdos Certificate always trooped performance is Tridarma college 1 PNS 233 229 4 2 PTY 116 25 91 professors and lecturers welfare is the income TOTAL 349 254 95 received each month. UPNV Java are turning into PTN PTS status In addition, the status of lecturers in UPN of this will affect the performance and revenue "Veteran" East Java is divided into two, namely the increases lecturer if the performance or otherwise Department of Defense civil servant lecturers and and Revenue received also increased or even professors with the status of permanent employee decreased after the transition status of PTS into of the Foundation for professors who have PTN tersertifikasipun get a different amount of allowances C. Perumusan Problems Table 2. Table Comparison of Percentage of Based on the background of the above Acquisition Salaries and Serdos Lecturer and problems, it dapaat formulated as follows: Lecturer Department of Defence civil servants PTY 1. What are the perceptions of lecturers with a displacement of the PTN PTS associated with Description Pns Lecturer Lecturer PTY the performance of lecturers From the above data it can be concluded that 2. How where the perception of teachers about the lecturer UPNV Java certified by statu sdeosen earnings after the displacement of the PTN PTS obtain certification benefits greater than lecturers lecturers PTY PTY whereas only receive the Theoretical Basis benefits of certification three months when understanding policy compared with the faculty of civil servants who From the published literature can be revealed received an allowance every month. that public policy in the International literature Table 3. Comparison Table Reception PTY called public policy, which is a set of rules that Lecturer and PNS monthly visits must be adhered life together and are binding all of base salary and Tunj. Serdos Status Payment citizens. Each violation will be sanctioned in certificate lecturer basic salary per month accordance with the weight of the offense Acceptance of each month : committed and the sanctions imposed in front of PNS Rp.3.400.500 Rp.3.400.500, - Rp.6.801.000, the public by the agency that has the task of - imposing sanctions (Nugroho R., 2004: 1-7). PTY Rp.3.400.500 Rp.3.400.500 Rp.6.801.000, - Source: The Financial UPNV Jatim

138 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

Rule or regulation is simply we understand as model, incremental model, the model of game public policy, public policy so can we interpret the theory and public choice model, and a model of the law. But not only the law, but we must understand system. it fully and correctly. When an issue of common Furthermore, recorded three proposed models interest is deemed necessary to set the formulation Thomas R. Dye, namely: observation model of an of the issue into public policy that must be done integrated, democratic models and strategic and prepared and agreed upon by the competent models. Associated with the organization, authorities. When public policies are set to become according to the policy of George R. Terry in his a public policy; does become law, would be book Principles of Management is an overall government regulation or regulation, including guidance, both written and oral are on a common regulation Regional President, the public policy is boundary and the direction of the target actions to changed into a law that must be obeyed. be performed leaders (Terry, 1964: 278). Meanwhile public policy experts define that General policy according to Said Zainal Abidin public policy is anything done or not done by the (Said Zainal Abidin, 2004: 31-33) can be divided government, why a policy should be conducted into three levels: and whether the benefit to the common life must 1. General policies, ie policies that guide or be considered holistic that the policy contains a manual execution of whether they are positive great benefit for its citizens and have little impact or negative that covers the entire area or and should not to cause adverse issues, however agency concerned. there must be winners and there are harmed, the 2. The policy is a policy that described the location where the government should be prudent implementation of common policies. For the in setting a policy (Thomas Dye, 1992; 2-4). central level, the government decree on the To understand the strategic position and role implementation of a law. of the government as a public actor, linked to 3. Technical policy, operational policy under the public policy it is necessary to mengaktualisasinya policy implementation. However, based on a understanding that we need a policy that is historical perspective, the policy at the level of oriented to the interests of the people. One expert scientific activity called policy analysis, did said: (Aminullah in Muhammadi, 2001: 371-372): attempt to synchronize between knowledge and That policy or action is an attempt to influence action. Said William N. Dunn (William N. Dunn, the system meet the desired objectives, efforts and 2003: 89) actions are intended to be long-term strategic and comprehensive. Similarly, with regard to the policy Analysis of Policies (Policy Analysis) in the says there is a saying: (Ndraha 2003: 492-499). historical sense of the most comprehensive an that the word comes from the translation of approach to solving social problems begin at one the policy of the policy, which has the meaning as milestone when knowledge consciously explored the best choice within the limits of the competence for possible testing done explicitly and reflective of actors and institutions concerned and formally possibility of linking knowledge and action. Having binding. explained the meaning of the policy, then simply Nevertheless said policies derived from the policy public policy described by Bill Jenkins in the book is considered a relative concept (Michael Hill, The Policy Process as public policy is a decision 1993: 8): based on the relationship of activities undertaken The concept of policy has a particular status by the political actors to determine the goals and in the rational models are relatively durable as the get results based on consideration of the particular element against the which of premises and actions situation. Bill Jenkins defines public policy as: are supposed to be tested for consistency. (Michael Hill, 1993: 34) A set of interrelated Thus the policy referred to in Kybernology and is a decisions taken by a political actor or group of value system policy and wisdom born of wisdom actors concerning the selection of goals and the actor or institution concerned. Furthermore, the means of Achieving them within a specified policy after going through a profound analysis situation where Reviews These decisions should, appropriately formulated into a product policy. In in principle, be within the power of Reviews These formulating policies Thomas R. Dye formulate actors to Achieve. policy models include being: the institutional Thus public policy is closely related to the model, elite model, the model group, the rational state administration when public actors to

139 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia coordinate all activities related to the task in order implanted are slowly starting by evolution to meet the various needs of the community (Ardiningsih, 2009). through a variety of public policy / public to meet The previous study as a reference comparator the needs of society and the state. For that we research is conducted by: need an administration that is known as the "state a. Teak Ariati (2010) entitled "Subjective administration." According to Nigro Nigro and M. Wellbeing (Welfare subjectively) and job Irfan Islamy in the book "Principles of State Policy satisfaction in the teaching staff (lecturers) in (Islamy, 2001: 1), the state administration has an the Faculty of Psychology, University of important role in formulating state policy and this is Diponegoro". This study uses a quantitative part of a process of development. method through Pearson Correlation analysis. Job satisfaction In the present study found a positive correlation Job satisfaction is an emotion that is pleasant between the two variables. or unpleasant for a job (Hani Handoko; 2011) is b. Herien Puspitawati, Megawati Simanjuntak and closely related to job satisfaction among employee Latifatul Conservation (2012) in "The economic attitudes toward various job factors, among others: contribution and the dual role of women and the the employment situation, social influence in effect on subjective well-being" by using employment, remuneration, as well as other Pearson Correlation and Multiple Regression. factors. Job satisfaction is the general attitude The results showed a positive correlation toward a person's individual work (Robbins, 2005: between balancing work and family with 24). According to Robbins, each individual has a subjective wellbeing. different level of satisfaction in accordance with the c. Ed Diener, Sandvik Ed, Larry Seidlitz and system of values prevailing in himself and what he Marissa Diener (1993) in "The Relationship felt such an individual may be positive or negative, between income and Subjective Wellbeing: depending on the perception of the work Relative or absolute". The results showed a performed. significant correlation between subjective well- Subjective wellbeing being and income in the United States. Subjective wellbeing (Subjective well-being) is a person's perception about his life experiences RESEARCH METHODOLOGY consisting of cognitive evaluation and effectively to Operational definitions and measurement live and to represent it in the psychological well- variables being (Jati Ariati, 2010). Subjective wellbeing The policy of the PTN PTS (Diener, in M.Nisfiannor, Rostiana, and Triana Performance (Y1) is like the one's perception Puspasari, 2004) is an evaluation form about the of the activity as a lecturer support to move lives of the individuals concerned which can be forward Revenue (Y2) is the perception of teachers done in two ways cognitive assessments such as about the revenue received. After the change of life satisfaction and emotional response to events status of college into PTN PTS such as feeling positive emotions Population Income The population used in this study are all UPN According to Robbins et al., (2003), income Veteran Lecturer in East Java. Surabaya. refers to the amount of compensation obtained for Samples a specific job. Luthans (in Robins, 2003), states Sampling technique used is the technique that, "Income and salary multimensional of non-probability sampling with purposive understood to be a significant predictor of job sampling means that sample by taking a lecturer at satisfaction, but complex. the Faculty of Economics and Business in UPN Emotional intelligence "Veteran" Jwa East have specifications as According Ardiningsih (2009), emotional professor of civil servants and professors PTY who intelligence is the ability to perceive, understand, already had the rank of a function with the number and effectively apply the power and sensitivity of of 74 lecturers, emotions as a source of energy, information, Mechanical Analysis connections and influence human. In addition, The analysis technique used to answer the emotional intelligence is the impetus to act, plan formulation of the problem is using Chi Square immediately to address the issues that have been statistical methods (to see differences Revenue

140 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia and Performance Lecturer UPNV East Java after To view the performance of lecturers UPN being PTN) veteran East Java, the results of the questionnaire found answers like this RESULTS ACHIEVED 2 Productivity Lectures In this study the researchers wanted to see the perception of lecturers UPN East Java On two Table 2. lecturers perceptions about the performance of lecturers things: Group Productivity Level Total 1. Income derived income here is: lard principal + Lectures lectures Sampel Benefits + tinjangan Serdos lecturer certificate. UPER DWONER PNS (a) 23 (b) 27 50 2. The performance of the lecturer in question PTY (c) 26 (d) 24 50 here is; Teaching activities, community Service Total 49 51 100 activities, research activities. Ho: There is no difference in performance UPN In this penlitian samples taken lecturer UPN veteran Lecturer in East Java after policy Veteran East Java, about 100 faculty consists of Penjadi state universities (PTN) 50 professors and 50 lecturers PNS PTY. Hi: There is / there are differences in performance UPN Veteran Lecturer in East In this study, the lecturers were questioned Java after policy into domestic universities about performance and the income (Salary + (PTN) Benefits Serdos). Whether increases or decreases after the change into the country. From the Chi Quare formula: questionnaires it can be made tahubalsi as follows: 2 2 X = n( ad – bc – ½ n) 1. Income Level Lecturer UPN Veteran East Java (a+b)(a+bc)(b+d)(c+d) After being PTN 2 Table: 1 Income Level Lecturer UPN V East Java 2 (100 ((23 x 24)-(27 x 26) - ( 50)) Group Income level Lecture Total X = ------= 64,002 Lecture Meningkat Menurun Sampel (23+27) (23 +26) (27 +24)(26 + 24)

PNS (a) 16 (b) 34 50 t 64.02>. t abel to 6.66 then Ho is rejected it PTY (c) 22 (d) 28 50 Total 38 62 100 means there is a difference of faculty performance Ho: There is no income differences Lecturer UPN UPNV East Java Having no policy to Lecturer veteran East Java after policy Penjadi state PTN. This means that the performance of lecturers universities (PTN) UPN V East Java changed after UPN Veteran Hi: There is / there are differences in income become state universities (PTN), is due to the Lecturer UPN Veteran East Java after policy encouragement of officials uni8versitas in every into domestic universities (PTN) apples and ceremonies to improve faculty

performance UPN V East Java so that the Formula Chi Square 2 2 response by the entire faculty to improve X = n( ad – bc – ½ n) Ki8nerjanya. (a+b)(a+bc)(b+d)(c+d) 2 CONCLUSIONS AND RECOMMENDATIONS 2 (100(16.28)-(34.22) (- 1/100)) a. Revenue UPN Veteran professors either civil X = ------= 1,44 servants or PTY unchanged because (16 + 34) (16+22)(34+28)(22+62) allowances are still there, and paid although

With t table then t 1.44 6.66 allowances paid lecturer certificate at the end of Ho reception area so there are no income the month and even receive a full (100%, differences lecturer in East Java means UPN before the State paid 50%) veteran despite being a lecturer PTN level of b. UPNV faculty performance jatim tidaka no income has not changed. change actually increased due to related BKD (expense lecturer activities) when not doing all 2. The level of Lecturer Performance UPN Veteran three activities then do not get the functional after being PTN benefits and allowances Serdos.(Sertifivation Lacture ) Recomendetions

141 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia a. No Excess paid teaching that lecturers will Herien Puspitawati, Megawati Simanjuntak and Latifatul make eager to teach. Hayati.2012. "The economic contribution and the dual role of women and their effect on subjective b. Adanya incentives for faculty who make the well-being. Journal of Family and Consumer textbook so that lecturers UPN Veteran East Sciences. Vol 5. 1. January 2012: 165-175 Java excited to make textbooks Teak Ariati.2010. Subjective Wellbeing (Welfare subjectively) and job satisfaction in the teaching staff (lecturers) in the Faculty of Psychology, BIBLIOGRAPHY University of Diponegoro. Journal of Psychology Nature, M.Masroor. 2009. The Relationships Between Undip Vol 8, No. 2, October 2010 the Emotional Intelligence and Job Satisfaction: Hong Lu, Alison E. While, K. Louise Barriball. 2007. Job Emprical Findings From the Higher Education satisfaction and its related factors: A questionnaire Institution in Malaysia. Journal of Management and survey of hospital nurses in Mainland China. Social Science, Vol. 5, No. 2 (Fall 2009) 124-139 International Journal of Nursing Studies 44, 574- As'ad, Moch. 2007, Industrial Psychology, publisher XIII 588 edition of the Liberty, Yogyakarta M.Nisfiannor, Rostiana, Triana Puspasari. 2004. The Agus Dharma 2005 Management Supervision, PT. King relationship between religious commitment and Grafindo Jakarta. subjective wellbeing in the late teens at the Diener et al., The Relationship between Subjective University Tarumanegara. Journal of Psychology wellbeing and income: relative or absolute? Social Vol.2 # 1, June 2004 Indicators Research 28: 195-223, 1993. Martoyo, Susilo. 2000. Human Resource Management, Fred Luthan 2005 Organization Behavior, Issue 7, Mac Publisher BPFE, Yogyakarta. Graw Hill International Edition New York, USA Regulation of the Minister of Administrative Reform 17 Gomes, Drs Faustino Cardoso 2005. Human Resource Year 2013 on Functional Lecturer and credit figures Management 12th Edition Publisher BPFE. Ministerial Regulation No. 18 of 2008 on on the Yogyakarta. distribution of Professional Allowance Lecturer. Handoko. Hani.2010. Personnel Management and Robins, Stephen. 1996. Organizational Behavior: Human Resources Publisher Andi, Yogyakarta. Concepts Controversies, Applications Indonesian edition, Publisher PT Prehallindo, Jakarta.

142 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

ANALYSIS OF ECONOMIC SECTORS IN THE DISTRICT BORDERS BETWEEN EAST JAVA AND

Patrap Wiprapto1), Wiwin Priana1), Niniek Imaningsih1) and Muchtolifah1)

1) Faculty of Economic, UPN Veteran Jawa Timur, Surabaya, Indonesian

ABSTRACT This study aimed to analyze the economic impact on the economy sector development in the District that borders between East Java and Central Java. The method used in this research is quantitative research and using secondary data. In analysis leading sectors or potential in order to focus on the subject matter, then used the comparison of the GDP, Sector Contribution, Location Quotient (LQ) and analysis Multiplier and field types with a focus on analyzing the impact of economic development on regional development that borders between east East and Central Java. By looking at the problem above, we can compare progress The districts bordering on East Java and Central Java. Districts in East Java, which borders Central Java district of Ngawi, Magetan Ponorogo, Pacitan, Tuban and Bojonegoro. Meanwhile, in Central Java regency bordering the East Java Wonogiri district, Karang Anyar district, Sragen, Blora and Rembang

Keywords: GRDP. Contributions, Sector Base and Non-Base, Multiplier efect., Regional Typology

BACKGROUND inter-city, inter-village and village between sectors Spearhead national development lies in local as well as the opening and accelerated development in Indonesia is still happening development of the region, remote deficit areas, because development gaps between the Sar. critical areas, border areas and backward regions Regional development has the goal of equitable more which is adjusted to the priority areas distribution of income and welfare of the 3concerned so will manifest a pattern of community. The welfare of society is closely development that embodies archipelago insight. related to improving the quality and standard of Regional development aimed at improving the living as measured among others by the Gross living standards and prosperity in the region Domestic Product (GDP) at the national level and through the development of integrated and the Gross Domestic Product (GDP) at the local harmonized across sectors and inter-sectoral level either province, the District and the City. development planning by the county efficient Muslim-majority Indonesia where people carry out towards achieving the independence of the region development activities can not be separated from and the progress evenly across the country. One that view. National development must consider the potential area can be identified through the leading condition of the community (Muslim majority), sectors in each region. Viewed from a wide range however, still must consider minority equally have of analysis and approaches to economic activity the right to enjoy the fruits of development. In from the point spread in many regions, local addition, the national development also should pay sayings can be divided into three terms. The first attention to the condition of regions throughout sense of an area regarded as a space or room Indonesia for regional development can not be where the prevailing economic activity and in generalized to the reasons for differences in different parts of the space is its properties are the characteristics, culture, social situation and so on. same. So the boundaries between the areas with Therefore, the success of national development other areas determined points where the similarity can be seen from the development of the various of these properties is already changing. Equation regions. Progress of regional development will properties can be viewed in terms of per capita spur an increase in national development. So in income of the population, in terms of religious or essence, the rapid development of national ethnic community or in terms of its economic development can be noticed in the area, especially structure. The second sense, and the most ideal areas far from the capital of the country, let alone for use in the analysis of the economics of space, regional development is the overall activities in defines the region as economic space. As said by order to exploit the potential of existing areas to Allen and Maclellan: "The border between the get the conditions and order of a society better. different regions of the centers of economic activity Regional development as an integral part of was replaced with influences from other centers national development is aimed to develop the area (Sukirno, 1994: 2). and harmonizing growth rate of inter-regional,

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When talking about economic growth, of Finally, data on the national economy became course, it should be understood that the intent is to apparent / bias resulting streams of incoming and increase national production of physically or in out of an area is very difficult to obtain. common terms is an increase in national product. Determines the flow of capital and trade from National development is a series of continuous one region to other regions is one example of development effort covering the entire life of the aspects of this proposed. Also in the analysis of community, the nation and the country realize the factors affecting regional economic growth national development duties enshrined in the from time to time, the writing can be distinguished preamble of the 1945 Constitution organized a among the theories about economic issues and gradual national development in the long term of regional development derived from the existing 25 years and the short term of 5 years by utilizing theories regarding the national economy which is all resources to realize the national development then adjusted with the state of the area, and creating a just and prosperous society both theories developed specifically for analyzing materially and spiritually. One indication of the economic issues and regional development With a development is the economic growth (Economic variety of approaches that national development growth) addressed by the incremental production and regional development has made progress very or national income. The success of the means. No areas are advanced without exception, development will enhance the nation's ability to but in reality there are considerable differences change in4. Other fields. One of the long-term between the sharp progress of a region and other development goals of economic growth is the areas. Differences in the pace of development creation of the field of economic stability in across the country led to gaps between prosperity agriculture and industry (Sukirno, 1994: 400). and progress of the region, especially between Accelerate the development area, the central Java and outside Java, between the western and government has granted autonomy to dig funds eastern regions and between urban and rural and administers the funds to finance development areas. As a result of the level and pace of in their respective regions (Anonymous, 1992: 4). development is not balanced, although all areas The above statement clearly indicates that will make progress as a result of the construction, regional economic analysis is essentially to but because the foundation level is different, then discuss the economic activity in terms of the angle without a special effort with growth trends there is spread of economic activities to various locations a gap to be enlarged. Overcoming this situation is within an economic space or a particular economic not an easy task because it will oppose efforts to space, for example in a country or a province. But "current" strong constraint that is not easily besides that, a regional economic analysis overcome. involving him also in analyzing the economics of a That regional development objectives and its region in terms of sectoral and macro. The area business can be managed by either the local can be a single province, one district, one government needs to function properly. Therefore, particular special area or a major city that the regional development is an attempt to develop and development will be encouraged. The analysis of strengthen local governments in the increasingly the economy of large cities is a specialized branch consolidated real autonomy, dynamic, harmonious of regional economic analysis and is known as the and responsible. Overall economic growth rate is analysis of urban / urban economic. calculated from the Gross Regional Domestic Analyzing the regional economy is a more Product, a weighted average of the growth rate of difficult job by analyzing the national economy. the sector. This means that if a sector has a major Such circumstances arise due to limited data on contribution and growth is slow, then this will the area once, especially if regions are hinder the rate of the overall economy. Conversely, distinguished based on the understanding of nodal if a sector has a major contribution to the totality of areas. With the very limited data are difficult to use the economy, so if the sector has a high growth methods that have been developed to provide an rate, then the sector will become the locomotive of overview of the economy of a region. Second, the growth in total economic growth rate to be great. available data is generally not in accordance with Until now it can be seen that there are three the necessary data in the analysis area because dominant economic sector contribution in East the data collected is mostly meant to meet the Java and Central Java, namely the sectors of needs of specific economic data for analysis.

144 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia agriculture industry, processing, trade, hotels and words, the GDP showed Overview Production restaurants. Originated (Anonymous, 2009: 2). Based on the background that has Gross Domestic Product is the total value of researchers pointed out, researchers will outline final goods and services produced by a unique the economic development of sectoral and range of production in an area within a certain economic potential of the two East Java Province period (one year). (Anonymous, 2013: 6) and Central Java in the districts bordering. Hence the title in the lift is "Analysis of Economic Sectors Approach calculation of Gross Regional in the District that borders between East Java and Domestic Product (GRDP) The way of calculating the GDP can be Central Java. obtained three approaches, namely: a. Production approach Problem Formulation The GDP is the total value of final goods and 1. What is the amount of the GRDP in the District - services produced by a production unit in a region District that borders between East Java and within a certain one (year). Central Java? The production units in the presentation may be 2. whether the sector that has contributed most in grouped into 9 sectors or field of business, namely: 1. Agriculture the District-District that borders between East 2. Mining and quarrying Java and Central Java? 3. Processing Industry 3. Are the sectors that became the base sector 4. Electricity, Gas, and Water and non bases in the districts bordering 5. Construction between East Java and Central Java? 6. Trade, Hotel and Restaurant 4. What is the multiplier effect-district bordering 7. Transportation and Communications district of East Java and Central Java?. 8. Financial Services, Real Estate, and Business Services 5. Why Tipe in Regency-City that borders 9. Services between East Java and Central Java? b. According to the Expenditure Approach 2. LITERATURE The GDP is the sum of all the components of Gross Regional Domestic .Product final demand, namely: Gross Domestic Product is the total value 1. Household consumption expenditures and added created by the various economic sectors / private institutions are not looking for profit; activities that do business in an area / region (in 2. Government consumption this case the District / City), regardless of the 3. The gross domestic fixed capital formation; ownership of the factors of production. Thus the 4. Changes in the stock; and GDP is aggregatif demonstrate the ability of a 5. Net exports, exports minus imports in a certain region to generate income / remuneration to the period (usually one year) factors of production that participate in the production process in the area. In other words, the c. According to the income approach GDP showed Overview Production Originated GRDP is the amount of remuneration received (Anonymous, 2009: 2). by production factors participate in the production Gross Domestic Product is the total value of process in a region preformance given time period final goods and services produced by the various is usually one year production units in a region within a specified period (one year). (Anonymous, 2013: 6) Definisis-definition related to Gross Domestic Product, according to some opinions, including: Definition of Gross Regional Domestic Product 1. Gross Domestic Product is the total value of Gross Domestic Product is the total value production of goods and services produced in a added created by the various economic sectors / given area in a given time is usually one year. activities that do kegiaatan business in an area / Therefore, the regional gross domestic product region (in this case the District / City), regardless of showed the ability of a particular region in the ownership of the factors of production. Thus generating revenue or services to the factors the GDP is aggregatif ability of a region to income which participate in the production process of / remuneration to the factors of production are the local area. Economic growth in the country involved proser production in the area. In other is reflected in the regional gross domestic

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product is very very big influence on kecilya the better the area to economy. (Mudrajat large public consumption. (Kuncoro, 2006: 27) Kuncoro: 2010 case 98). 2. Gross Domestic Product (GDP Gross Domestic The Multiplier formula is:

Product) is the total value on all the final output r1 = produced by an economy (whether conducted by resident citizens as well as people from Where: other countries who settled the country). r1 = Impact multiplier (multiplier effect) (Todaro and Smith, 2004: 56) Esi = non bases sector activity Ebi = Activity sector basis LQ (Location Quotien) Is a tool used to assess the GDP by taking Regional Typology Analysis into account which sectors are not a sector basis Progress and economic growth in every what. LQ basis used to determine how much the region of each different course. There are areas level of specialization sectors of the seeded region. that could stimulate economic activity so that it can LQ can also be used to increase the productivity of grow rapidly. On the sidethere are other areas that the area. LQ in the formulation of comparing can not do much so the economic cycle remained certain sectors in the district compared to the same at one point or even negative growth. To be able to sector in the province divided by total Regency compare the level of advancement of a region. GRDP compared to Total GRDP with other regions in a same scope of 1. Locationt Quatient (LQ) reference, it can be used as an analytical tool This analysis technique is used to determine Tipology Klassen. Tipology Klassen did region the category of a sector included in a sector basis based on two characteristics of the region, namely or not the base. Formulation of the analytical GDP per capita and economic growth. Sjafrizal techniques are: (Iwan Jaya Azis, 1993) (1997: 27-38) explains that by using analytical Vaji / Vaii tools can be obtained from four classifications

LQJi = growth in each region, namely:

1. Quadrant I is the area fast forward and fast Information: growth (high growth and high income) or also LQJi = Location Quatient sector i in region J known as the area developed and grew rapidly Vaji = value added in the sector i J (rapid growth region), an area that has Vaii = Value-added sector i at district level economic growth rate and per capita income is PDRBJ = Gross Domestic Product in the area J higher than the mean Avg. PDRBI = Gross Regional Domestic Product 2. Quadrant II is a fast-growing area (high growth district but low income) or also referred to as a forward but depressed area (retarded region), an area From the calculation results, can be with higher economic growth but per capita interpreted in two categories, namely: When the income is lower than the average. LQ value less than or equal to 1, indicating that the 3. Quadrant III is advanced but depressed areas sector is not a sector basis. When the LQ values (low growth but high income) or also referred to to greater than 1, indicating that the sector is a as a fast growing area (growing region), an sector basis. area that has a lower economic growth but per capita income is higher than the average. 2. Multiplier Effect 4. Quadrant IV is relatively underdeveloped areas The linkage of the sector with other sectors is (low growth and low income) or also referred to a matter that needs to be shown in the as the relatively underdeveloped regions (are determination of strategic sectors. The linkage relatively backward region), is an area of between sectors can be seen from the multiplier economic growth and income per capita is effect multiplier effect of a sector that can generate lower than average. activity in other sectors. Determining the impact multiplier of a sector based on the theoretical Building on the two basic characteristics of foundation of economic analysis basis (economic every region are economic growth and GDP per base analysis) multiplier impact of a sector by capita, the regions can be grouped into four groups sector basis non multiplier greater base of an area,

146 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia so that each group has a pattern and a different participate in local area production process. structure of economic growth. Economic growth in the country as reflected in regional gross domestic product is very big Regional Clasification with Tipologi Region influence on the size of public consumption.Gross y yi > y yi < y Domestic Product (GDP-Gross Domestic Products) R is the total value on all the final output produced by ri> r Fast Growth Growing Region Region an economy (whether conducted by resident ri< r Depressed areas Disadvantage citizens as well as people from other countries who Relatively Region Regions live in the country).

Definition of Gross Domestic Product by the Description: Central Bureau of Statistics is the value of ri: The pace of economic growth in the region production of goods and services produced in a yi: GDP per capita region i region (regional) within a certain time within a year. r: reference region's economic growth rate y: GDP per capita reference region (Mudrajad Analysis of Contributions :2004 231) To see what is the sector in the respective

RESEARCH METHODOLOGY districts in East Java and Central Java who Definisi Operational and Measurement Variable occupied the highest contribution. using the The operational definition and measurement formula : of the variables is a statement about the definition Total GRDP persektor / Total GRDP x 100% and measurement of research variables are operationally by the existing theory and empirical Location Quotient experiences. It is intended to prevent This analysis uses some data of Gross misunderstanding on the variables which are Regional Domestic Product (GDP) of East Java discussed as well as facilitate the implementation Province with the Province of Central Java is of the data used. based on the GDP per sector. Besides used the To clarify to each variable were observed, the GDP of each region and the City of per sector. measurement of these variables can be described GRDP expressed in units of millions of rupiah. as follows: GRDP of the data can be in the know the basic Analysis GRDP sector and non basis of each district / city. From According to the Statistics Agency of East the calculation results, can be interpreted in two Java Province, Gross Regional Domestic Product categories, namely: LQ <1 or LQ = 1 then the can be defined as follows: sector is not a sector basis, when LQ> 1 then the In terms of production, the amount of the value of sector is a sector basis, expressed in absolute the final product or the added value of goods and figures. The LQ calculation formula is as follows: services produced by the production units owned LQ = (vaji / Vaii) / (GRDPj / GRDPi) by residents of the area in a given time period. Where: Vaji = Number of sector GDP Regency / In terms of revenue, the amount of income or City, Vaii = Number of sector GDP Province, remuneration received by factors of production GDRPj = Total GRDP Total District / City and owned by residents of the region who participated GDRPi = Number of total GRDP Province in the production process in a given time period. In terms of spending, the household consumption Analysis of Multiplier Effect expenditure and private institutions, non profit, This analysis uses the calculation of Location government consumption, fixed capital formation Quotient (LQ) for a known activity and activity and net exports stock changes. sector basis the non base. Basis of activity sector Definitions related to Gross Domestic Product, and non-sector activity can be determined base according to some opinions, including: multiplier impact of a sector and linkages between Gross Domestic Product is the total value of sectors can be seen on the Multiplier Effect of a production of goods and services produced in a sector that can generate activity in other sectors given area in a given time is usually within one expressed in terms of percentage. Determining the year. Therefore, the regional gross domestic impact multiplier of a sector based on the product showed the ability of a particular region in theoretical foundation of economic analysis basis generating revenue or services to the factors that

147 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

(economic base analysis) multiplier impact of a Building on the two basic characteristics of every sector defined as follows: region are economic growth and GDP per capita, r_1 = Esi / Ebi the regions can be grouped into four groups so Where : r_1 = multiplier impact (multiplier effect), that each group has a pattern and a different E_si = total bases sector and E_bi = total non structure of economic growth sector basis. From the calculation results, can be interpreted in Analisis Growth two categories, namely: if the value of ri <1, This growth of GRDP in year to year in indicating that the sector has a multiplier effect. If economic activity region or city in east Java ri> 1, suggesting that the sector has a multiplier Province. The Growt Economic calculation formula effect is as follows:

G = Regional Typology Analisis Data Collection Techniques Progress and economic growth in every Data is an important part in this study used region of each different course. There are areas secondary data, secondary data is data obtained that could stimulate economic activity so that it can indirectly from the object of research. The study grow rapidly. On the other hand there are also obtained data that has been reported by others, areas that can not do much so the economic cycle while the source of the data obtained from the remained at one point or even negative growth. To office of East Java, Central Bureau of Statistics be able to compare the level of progress of a (BPS), region to another within a scope of the same reference, it can be used as an analytical tool Literature study (library Research) Tipology Klassen. Tipology Klassen did region Data obtained by reading books, magazines, based on two characteristics of the region, namely Internet browsing and writings, the reports related GDP per capita and economic growth. Sjafrizal to this research: (1997: 27-38) explains that by using analytical tools can be obtained from four classifications Field Studie growth in each region, namely: The field study is intended to get the 1. Quadrant I is the area fast forward and fast necessary secondary data . Data obtained reports, growth (high growth and high income) or also records related to the issues discussed concerning known as the area developed and grew rapidly economic growth, Gross Domestic Product (rapid growth region),an area that has Developments and Economic sector basis. economic growth rate and per capita income

higher than the average. Data Analysis Techniques and Hypothesis 2. Quadrant II is a fast-growing area (high growth Testing but low income) or also referred to as a forward Technique is based on information obtained but depressed area (retarded region), an area from various studies and the data collected and with higher economic growth but per capita reprocessed. The technical analysis of the income is lower than the average. employed are: 3. Quadrant III is advanced but depressed areas 1. Comparing the GDP by District in East Java (low growth but high income) or also referred to Border Middle Jawa as a fast growing area (growing region), an 2. Comparing the largest contribution in the area that has a lower economic growth but per District-District bordering East Java and capita income is higher than the average. Central Java 4. Quadrant IV is relatively underdeveloped areas 3. Comparing Sector Base in the district that (low growth and low income) or also referred to borders between East Java and Central Java as the relatively underdeveloped regions (are 4. Comparing multiplier effect in the District- relatively backward region), is an area of District that borders between East Java and economic growth and income per capita is Central Java lower than average. 5. Comparing the type of area in the district

regency East Java border with Central Java

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RESEARCH RESULT Analysis of sectoral Pacitan Ponorogo, Wonogiri a. Comparative Analysis of the Border Region Analisys Pacitan Ponorogo Wono Giri GDRP 1.551,15 4.212,50 3.024,96 Economic Sector. In this analysis, researchers Milyar Milyard Milyar used data the GDP in 2012 and 20133 while the Economic 13,68% 15,82 % 4,60 variable to be measured are: Growth Contribution Agriculkture Agriculture Agricultu 1. GRDP Sector sector sector 2,48 re 45,4 2. Economic Growth Rate 30,3% % % LQ Agriculter Agricultur Agricultur 3. The contribution of the largest sectors BASIS Mining Finance Transpo 4. Location Qoutien (LQ) contruction rtation 5. Multiplier effects sector. Finace Services Finance Sevices Services 6. Regional Typology Multiplier 2,3 1,6 1,8 effect The results in Bojonegoro and Blora Tipology Kwadran IV Kwadran IV Kwadran Analisys Bojonegoro Blora Region IV Region Region Income 7,84 Milian 11,02 Milian 7,88 percapita Milian PDRB 31.414.257,19 5.641.343 population 548.444 863.890 1.105.313 Economic Growth 8,96 % 10,77 % Appendix Contribution Mining Agriculture Sector 40,78 % 49,47 % LQ Agriculture Agricultur GDP is the largest in the region Ponorogo, BASIS Mining Mining Wonogiri, Pacitan Finance • Population growth Pacitan Ponorogo Wono giri Multiplier effect 1,53 1,66 • Contributions of all World Agriculture Wono giri Tipologi Kuadran IV Kuadran IV Dis Advantage Dis Pacitan Ponorogo Region Advantage • LQ: Pacitan 5 sectors, Wononogiri n 4 Region .Ponorogo sector 3 sector, Income percapita 23.283.563.05 7.163.389,58 • Multiplier effect of more than 1 Pacitan, Population 1.408.089 833.768 Wonogiri, Ponorogo.

The above table shows that the largest GDP • Tip [ology All regions in Quadrant IV underlayer is Bojonegoro Rp. 31,414,257.19 while Blora developing regions and less sejah tera Regency Rp. 5641343. so Bojonegoro richer than • Income per capita. Blora. Analysis of the Tuban area with Rembang • The economic growth of 8.96% Bojonegoro and

Blora Blora 10.77% so the faster development The results in Tuban with Rembang Regency of Bojonegoro. Analisys Tuban Rembang • The sector's contribution Bojonegoro is the GDRP Rp 9.683.984,07 Rp. 2.503.910,54 Milyar Milyar mining sector with 40.78%, while the average – Economic 7,03 % 5,04 % rata biggest sector is agriculture with the Growth Contribution Mining 23,98 % Agricukture 30,2 % average - average 49.47% so the contribution Sector of the sector is greatest Blora district in the LQ Agricultur Agriculture agricultural sector. BASIS Mining Mining , Gas, Water, Contruction • sector base in Bojonegoro are agriculture and Transportation mining sectors while Blora Regency base is Services Multiplier 1,64 3,02 agriculture, mining, and finance. effect • area mode Bojonegoro and Blora Regency Tipologi Kuadran IV Kwadran I terrain type quadrant IV is relatife lagging Developed Region Income Rp.24.192.074 81.668.550 regions. percapita Population 1.141.497 612.552 Analysis of Pacitan, Ponorogo in East Java Apendix Wonogiri in Central Java Analisys Potential District Tuban with and Ashdod is that these two regions have the same potential but lately in Tuban area discovered oil so Kab. Tuban

has an advantage in its GRDP of the Rembang

149 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia district while still potential in the agricultural sector, on the mining sector as well as Karanganyar but Apex has a terrain type quadrant 2 advanced from the manufacturing sector. areas but still depressed while Tuban Quadrant IV- 4. Average sector base in the Central Java district type regions and less developed regions . superior except Ngawi in East Java and Pacitan. Analysis of Potential Economic Sector Magetan 5. In view of the multiplier effect, the basic sector with Karang Anyar throughout the District has the ability to mobilize

The results in Magetan with Kab Karang Anyar and encourage the development of the Sar. Karang 6. Typology regency in East Java and Central Analisys Magetan anyar Java is located in quadrant IV is relatively GRDP Rp.10.598.186 Rp.12.857.290 underdeveloped area and underdeveloped Economic Growth 13,98 % 12.12 % Contribution PERTANIAN : Industri except Rembang Regency is located in Sector 29,99 % PENGOLAHAN quadrant I, which developed and prosperous 43,98 % region and Sragen in quadrant II is advanced Pertanian Industri LQ Konstruksi Pertanian but depressed area. BASIS Bangunan Keuangan 7. The per capita income districts in East Java Jasa-jasa Konstruksi was higher than in the Central Java district Multiplier effect 2,7 3,2 Tipologi Kwadran IV Kwadran I which borders except Pacitan and Wonogiri, Under Developed Karanganyar bordering Magetan. Income percapita Rp.16.938.036, 15.303.180 Population 625.703 840.171 REFERENCE Apendix : which has the potential for industry and trade co Surakarta Anonim,1993,Garis-Garis Besar Haluan Negara,Penerbit adjacent to which is the widening of industry and trade sector of the city of Surakarta, being fixed in Magetan on agriculture Beringin Jaya,Semarang . sector. Economic Sector Analysis Ngawi regency of Sragen ,1999,Undang-Undang Otonomi Daerah 1999,Penerbit Kuraiko Pratama,Bandung. The results in Ngawi with Sragen Regency ,2005,Statistik Keuangan Pemerintah Daerah Analisys Ngawi Sragen Kabupaten/Kota di Indonesia,Badan Pusat Statistik GRDP Rp 10.331,392 9.394,739 Daerah Tingkat I Jawa Timur,Surabaya . Economic Growth 12,72 6,71 Persen ,2007,Statistik Keuangan Pemerintah Daerah Contribution Agriculture Kabupaten/Kota di Indonesia,Badan Pusat Statistik Agricultur 36,63 % Sector 35,59 % Daerah Tingkat I Jawa Timur,Surabaya. Agriculture Agriculture ,2009,Statistik Keuangan Pemerintah Daerah Trading LQ Funance Kabupaten/Kota di Indonesia,Badan Pusat Statistik BASIS Building, Contruction Daerah Tingkat I Jawa Timur,Surabaya. Finance Services Basri, 1995, Perekonomian Indonesia Menjelang Abad XXI (Distorsing,Peluang dan Kendala),Penerbit Multiplier effect 2,2 2,1 Erlangga,Jakarta. Kwadran IV. Kwadran II Tipologi Under Develop Bastian,2001,Manual Akuntasi Keuangan Pemerintah

Region Daerah 2001,Penerbit BPFE ,Yogyakarta. Income percapita Rp.12..529,017, Rp10.729.490 Dasril,Henry & Hessel,2004,Kebijakan & Manajemen Population 824.597 875.600 Keuangan Daerah,Penerbit YPAPI,Yogyakarta Apendix : While the two regions together agricultural potential, but Elmi,Bchrul,2002,Keuangan Pemerintah Daerah Otonom better in Sragen is the type of area to grow, but depressed di Indonesia.Penerbit Universitas Indonesia (UI (quadrant II), Ngawi including the types of disadvantaged Press),Jakarta areas and less developed (Quadrant IV) Fuad,2004,Analisis Faktor-Faktor Yang Mempengaruhi

Pendpatan Asli Daerah di Jawa CONCLUSIONS Timur,Skripsi,Fakulias Ekonomi Universitas 1. GRDP district bordering the province of East Pembanggunan Nasional “Veteran”Jawa Java to Central Java GRDP larger districts in Timur,Surabaya. East Java, except Karanganyar greater Ibnu Syamsi,1993, Dasar-Dasar Kebijaksanaan Keuangan Negara ,cetakan kedua, Penerbit than Magetan caused the greatest contribution PT.Bina AksaramJakarta. of the industrial sector. Khusaini,2006,Ekonomi Publik,Desentralisasi Fiskal dan 2. Pertumbuhan districts in East Java economy is Pembangunan Daerah,Penerbit BPFE UNIBRAW,Malang. greater than Blora higher than Bojonegoro Kuncoro, Mudrajad, 2004, Otonomi & Pembangunan therefore Blora regency have more leading Daerah Reformasi, Perencanaan, Strategi, dan sectors. Peluang, Jakarta : Penerbit Erlangga 3. The contribution of the sector to districts in East Mahmudi, 2010, Manajemen Keuangan Daerah, Penerbit Erlangga, Jakarta Java and Central Java is still based on Riduansyah, 2003, Kontribusi Pajak Daerah dan agriculture, except Bojonegoro and Tuban rely Restribusi Daerah Terhadap Pendapatan Asli Daerah (PAD) dan Anggaran Pendapatan dan

150 International Seminar for Research Month Innovation, Development and Utilization of Research and Community Service November 15th, 2016, Surabaya, Indonesia

Belanja Daerah(APBD) guna Mendukung Saragih,Panglima,2003,Desentralisasi Fiskal dan Pelaksanaan Otonomi daerah, Keuangan Daerah Dalam Otonomi,Jakarta www.ekonomirakyat.org ;Penerbit Ghalia Indonesia

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