Nomico is a peer-reviewed open access international journal with the aim of disseminating the results of research, study, and development in the economic and finance, particularly in the fields of (1) accounting, (2) management, (3) capital markets, (4) business law, (5) taxation, (6) information systems, as well as other areas of economics and finance. All submitted manuscripts will be reviewed by the editors and then evaluated by a minimum of two International Reviewers through a double-blind review process. This is to ensure the quality of manuscripts published in the journal. Journal title : Nomico Initials : NJ Frequency : 12 (twelve) times a year DOI : 10.62872 ISSN Online : 3046-6318 Editor in Chief : Olyvia Rosalia, S.E Managing Editor : Rosmaria Assistant Editor : Sefiani Dwi Azmi Publisher : PT. Anagata Sembagi Education Accreditation : Index Copernicus International
The Influence of Food Quality, Service Quality, and Service Recovery on Consumer Satisfaction at Geprek Assalam 99 Plaosan Magetan
The business world has quite a variety of problems, especially in terms of the quality of what is marketed by business actors, for that researchers conduct in-depth research in terms of consumer satisfaction. This study took the object of Assalam 99 Plaosan Magetan geprek consumers. The method used in this study is a quantitative method using multiple linear regression analysis, with hypothesis testing and assisted by determination analysis and instrument testing in the form of validity and reliability. This research uses primary data with a tool in the form of a questionnaire which is distributed directly to related objects in this scientific research. Research shows that food quality has a significant effect on consumer satisfaction. Service quality has a significant effect on customer satisfaction. Service recovery has a significant effect on customer satisfaction.
Copyright (c) 2024 Afif Sultoni, Sri Hartono, Wijianto (Author) https://creativecommons.org/licenses/by-sa/4.0
The Influence of Population Size, Economic Growth, and Regional Minimum Wage on the Unemployment Rate in the Regencies and Cities of Bakorwil 1 Madiun
A resident is someone who has lived in a country for a long time. The problem that often occurs in a country is about unemployment. Unemployment is a problem that has not yet been resolved. The role of the government is urgently needed in reducing the unemployment rate. Population numbers that are not resolved properly can cause economic development goals to not be achieved. Economic success is seen from improving economic growth and decreasing inequality in a region. This study aims to examine the effect of Population Number, Economic Growth and Regional Minimum Wage on Unemployment Levels in the Regency/City of the Bakorwil 1 Madiun Region. This study uses quantitative methods. , where the required data is obtained from BPS. The results showed that the Independent Variable Population (X1) had no partial and significant effect on the unemployment rate, economic growth (X2) had a partial and significant effect on the unemployment rate, and the regional minimum wage (X3) had no partial and significant effect on the unemployment rate. the unemployment rate in the Regency/City of the Bakorwil 1 Madiun Region.
Copyright (c) 2024 Handri Dona, Sri Hartono, Wijianto (Author) https://creativecommons.org/licenses/by-sa/4.0
Capital Market Volatility and Global Energy Crisis: A VAR and VECM Analysis
The recent increase in global capital market volatility is closely associated with the escalation of the global energy crisis, characterized by surging energy prices, supply disruptions, and geopolitical tensions. This study aims to examine the impact of the global energy crisis on capital market volatility by distinguishing short-run dynamics and long-run relationships between the variables. A quantitative time series approach is employed using Vector Autoregression and Vector Error Correction Model. The data represent indicators of the global energy crisis and stock market volatility across periods before, during, and after the energy crisis. The stationarity tests indicate that all variables are integrated of order one, while the Johansen cointegration test confirms the existence of a long-run equilibrium relationship between energy markets and capital markets. The VECM estimation reveals that capital market volatility adjusts significantly to deviations from long-run equilibrium following energy-related shocks. The impulse response analysis shows that stock market volatility responds positively to energy shocks in the short run, although the effects gradually diminish over time. Furthermore, the variance decomposition results indicate that the contribution of energy shocks to capital market volatility increases in the medium term. Overall, the findings support the hypothesis that the global energy crisis is a key determinant of capital market volatility and acts as a persistent source of macroeconomic uncertainty in financial markets
Copyright (c) 2026 Vidya Ramadhan Putra Pratama (Author) https://creativecommons.org/licenses/by-sa/4.0
Sustainable Finance as A Moral Objective: An Islamic Economic Philosophy Perspective On The Optimization Of Sharia Fintechsuhardi
Sustainable finance is frequently reduced to an instrument for risk management or compliance with Environmental, Social, and Governance (ESG) standards. This article seeks to reframe this perspective by positioning sustainable finance as a moral objective within the framework of Islamic economic philosophy, particularly in the development and optimization of Islamic Fintech. This study adopts a qualitative approach based on a literature review, employing the Foundation–Accelerator–Impact analytical framework. The findings indicate that Islamic Fintech does not merely serve to enhance efficiency and financial inclusion, but also represents the implementation of Maqashid Shariah values. At the foundational level, sustainable finance is grounded in the principles of Tawhid and Khilafah, which affirm humanity’s role as trustees in the management of resources. At the accelerator level, financial technology facilitates the advancement of social justice and equitable economic distribution. At the impact level, the digitalization of Islamic finance is directed toward preventing fasad, ensuring environmental sustainability, and strengthening distributive justice. Accordingly, the optimization of Islamic Fintech within the sustainable finance paradigm underscores the orientation of Islamic economics toward not only economic growth, but also the comprehensive realization of moral and ethical objectives.
Copyright (c) 2026 Arif Rahman Hakim, Wahyu Amru Rofiqhoh, Nur siamah (Author) https://creativecommons.org/licenses/by-sa/4.0
SDGs-Based Economic Performance Measurement in the Green Tourism Sector
The growth of the tourism sector as an economic driver has increasingly been accompanied by environmental and social pressures, highlighting the need for sustainable green tourism approaches. However, sustainability claims in tourism are often not supported by structured economic performance evaluation frameworks aligned with sustainable development objectives. This study aims to analyze the economic performance of the green tourism sector using the Sustainable Development Goals (SDGs) as an evaluative framework. The study adopts a qualitative descriptive–analytical approach by examining the alignment between SDG-based economic indicators, green tourism policies, and implementation practices. The analysis is conducted through mapping relevant SDG economic indicators, reviewing tourism policy documents and official reports, and identifying gaps between economic performance outcomes and sustainability principles. The findings indicate that the SDGs framework enables a more comprehensive evaluation of green tourism economic performance than conventional approaches, particularly in assessing the quality and sustainability of economic impacts. The study also reveals misalignments between economic growth orientation and the achievement of sustainability goals in green tourism practices. This study concludes that SDGs provide a critical analytical framework for evaluating and guiding green tourism development toward sustainable economic outcomes.
Copyright (c) 2025 Yudhi Anggoro, Sarlotha Selan, Mahyadi Mahyadi (Author) https://creativecommons.org/licenses/by-sa/4.0
Platform Economics and Marketplace Dominance: Analysis of Marketplace Business Models in Global Competition
The expansion of the platform economy has fundamentally transformed global market competition by introducing new forms of dominance driven by data control, algorithms, and network effects. Digital platforms no longer operate merely as transaction intermediaries but function as market infrastructures that regulate access, value distribution, and economic behavior across industries. This study aims to examine how platform business models construct market dominance and how such dominance reshapes global competitive structures. The research adopts a qualitative approach through a systematic literature review and critical conceptual analysis of leading academic publications. Data were collected from high-impact international journals and analyzed using thematic synthesis and comparative interpretation. The findings reveal that platform dominance is produced through the interaction of subsidy wars, network effects, ecosystem integration, data ownership, and global expansion strategies. These mechanisms generate high entry barriers, intensify economic dependency on platforms, and weaken conventional competition mechanisms. The study concludes that the platform economy demands a new competition policy paradigm and digital market governance framework to ensure that technological innovation remains aligned with competitive fairness and long-term economic sustainability.
Copyright (c) 2025 Oktaviani Oktaviani (Author) https://creativecommons.org/licenses/by-sa/4.0
Circular Economy and Resource Efficiency in Industrial Competitiveness
The transition toward a low-carbon economy has pushed industries to adopt circular economy and resource efficiency not merely as environmental initiatives, but as strategic drivers of competitiveness. However, academic studies examining the relationship between circular economy, resource efficiency, and industrial competitiveness remain fragmented and report inconsistent findings. This study aims to systematically analyze the contribution of circular economy and resource efficiency to industrial competitiveness and to identify the key mechanisms underlying this relationship. A systematic literature review was conducted using an evidence-based industrial sustainability approach, synthesizing peer-reviewed journal articles published between 2020 and 2025 and selected through the PRISMA process. The findings indicate that circular economy enhances industrial competitiveness primarily through improvements in resource efficiency, leading to cost reduction, supply stability, productivity gains, and process innovation. Resource efficiency emerges as a critical mediating mechanism translating circular practices into measurable competitive advantages. Nevertheless, the strength of evidence varies across industrial sectors, firm sizes, and institutional contexts. This study concludes that circular economy and resource efficiency act as strategic enablers of industrial competitiveness when implemented systematically and contextually, rather than as universally applicable solutions.
Copyright (c) 2025 Marieska Lupikawaty (Author) https://creativecommons.org/licenses/by-sa/4.0
The Contribution of Sharia Investment Instruments to Economic Development in Indonesia: Opportunities and Challenges of Precious Metals
Global economic developments and increasing public awareness of halal finance are driving the growth of Islamic investment instruments in Indonesia. This study aims to analyze the contribution, opportunities, and challenges of Islamic investment instruments, including Islamic stocks, sukuk, Islamic mutual funds, and precious metal commodities, in the development of the Muslim economy. The research method used is a qualitative descriptive approach supported by quantitative data through documentation studies, content analysis, descriptive quantitative analysis, and SWOT analysis. The results indicate that Islamic investment instruments have a strategic role in strengthening the real sector, increasing financial inclusion and literacy among Muslims, and maintaining economic stability through the principles of justice, transparency, and sustainability in accordance with the maqasid al-shariah. Specifically, precious metals, especially gold, contribute as a hedging instrument, provide access to non riba financing, and strengthen the microeconomic resilience of the Muslim community. However, the development of Islamic investment instruments still faces challenges such as low Islamic financial literacy, limited product innovation, global market fluctuations, and suboptimal synergy among stakeholders. Therefore, strengthened regulations, public education, Islamic governance, and inclusive product innovation are needed so that Islamic investment instruments can function optimally as a driving force for equitable and sustainable Islamic economic development in Indonesia.
Copyright (c) 2025 Rukiah Rukiah (Author) https://creativecommons.org/licenses/by-sa/4.0
Research Title: The Effect of Financial Risk on the Profitability of Manufacturing Companies Listed on the IDX in 2020-2024
This study analyzes the effect of financial risk, as measured by the Debt to Asset Ratio and Debt to Equity Ratio, on profitability (Return on Assets - ROA) in manufacturing companies listed on the Indonesia Stock Exchange during the 2020-2024 period. Using multiple linear regression with SPSS software on 95 observations, descriptive statistics show an average DAR of 0.3686, DER of 0.8498, and ROA of 0.0953. The results of the simultaneous test (F test) show a Sig. value of 0.000, indicating that DAR and DER together have a significant effect on ROA. The coefficient of determination (Adjusted R Square) of 0.289 indicates that 28.9% of the variation in ROA is explained by the model. Partially (t-test), DAR (X1) has a negative and significant effect (Sig. 0.000, coefficient -0.325) on ROA, while DER (X2) has a positive and significant effect (Sig. 0.000, coefficient 0.074) on ROA. These findings highlight the complexity of the relationship between financial risk and profitability in the manufacturing sector.
Copyright (c) 2025 Kharimah Murni, Achmad Hizazi, Ratih Kusumastuti (Author) https://creativecommons.org/licenses/by-sa/4.0
The Impact of Environmental Externalities on Commodity Price Stability: GARCH (Generalized Autoregressive Conditional Heteroskedasticity) Volatility Analysis
Crude oil is a highly strategic global commodity whose price is extremely sensitive to external dynamics and economic shocks. This study aims to analyze the effect of environmental externalities on crude oil price volatility by applying the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model. Secondary data consisting of daily West Texas Intermediate (WTI) crude oil prices from January 2015 to December 2024 were examined using the ADF test, ARCH–LM test, model selection based on AIC and BIC, and parameter estimation of GARCH(1,1). The results indicate that environmental externalities have a positive and significant effect on crude oil price volatility, as evidenced by the γ coefficient of 0.227 and the α + β value of 0.905, demonstrating long-term volatility persistence. These findings show that crude oil price stability is determined not only by traditional supply and demand factors but also by global environmental regulations, emission policies, and energy transition dynamics. This study provides empirical contributions to energy economics research and practical insights for policymakers in developing energy security strategies that are adaptive to the sensitivity of global commodity prices.
Copyright (c) 2025 Eki Dudi Darmawan (Author) https://creativecommons.org/licenses/by-sa/4.0
Green Economy and Carbon Investment: Business Strategies for Facing the Global Energy Transition
The global energy transition has reshaped business dynamics and capital markets through the rise of the green economy and carbon investment as the new foundation of corporate competitiveness. This study analyzes how companies in Indonesia formulate green business strategies while optimizing carbon investment to sustain competitive advantage during the global energy shift. A Systematic Literature Review (SLR) following PRISMA guidelines was employed to identify, screen, and synthesize 24 relevant scientific articles published between 2018 and 2025. The findings reveal that corporate sustainability strategies rely not only on low-carbon technological innovation, energy efficiency, and supply-chain transformation but also on the implementation of carbon investment, participation in carbon credit markets, and access to ESG-based financing. The integration of green economy and carbon investment enhances corporate market reputation, reduces regulatory risks, lowers capital costs, and creates new revenue opportunities through carbon asset monetization. This study concludes that the success of Indonesian companies in navigating the global energy transition is determined by their ability to position the green economy and carbon investment as the core of their long-term business strategies.
Copyright (c) 2025 Hamdani Hamdani, Firayani Firayani (Author) https://creativecommons.org/licenses/by-sa/4.0
Strategic Customer Engagement and Conditional Loyalty in Herbal E-Commerce: An Ethical SDL Perspective
Indonesia’s herbal e-commerce market presents a distinctive paradox: while exhibiting steady annual growth of 6.2% within the global wellness economy, the ecosystem grapples with a structural trust deficit stemming from the prevalence of product adulteration. Through the lens of Service-Dominant Logic (SDL), this qualitative interpretive study investigates how strategic engagement shapes loyalty within this high-risk context. Drawing on in-depth interviews with 18 consumers and sellers, the analysis demonstrates that successful market actors navigate this deficit not through transactional efficiency, but through Ethical Resource Integration establishing regulatory compliance as a moral value proposition—and Developmental Engagement, a mechanism that elevates consumer health literacy. This interaction fosters heteropatric value co-creation, culminating in a distinct state of Conditional Loyalty: a vigilant adherence where emotional attachment is contingent upon continuous safety validation. Theoretically, this study extends SDL by positioning ethical capabilities as critical antecedents to engagement in regulated health markets. From a managerial perspective, the findings suggest that sustainable value arises less from price competition and more from the seller's evolution into an ethical health advisor within a multi-actor governance ecosystem
Copyright (c) 2025 Abdul Rohman, Andreas Cahya U.R.P Saragih, Sosidah Sosidah, Selamet Riyadi (Author) https://creativecommons.org/licenses/by-sa/4.0
The Impact of Financial Inclusion on MSME Growth in Developing Countries: A Regional Comparative Study
This study aims to analyze the impact of financial inclusion on MSME growth in Bali, Indonesia, and Malaysia. Using Structural Equation Modeling (SEM), the study examines the relationship between financial inclusion, measured by access to financial services, financial literacy, and government policies, and MSME growth, measured by revenue, number of employees, and business expansion. The results show that financial inclusion positively impacts MSME growth in both countries, with a greater effect in Malaysia. In Bali, although financial inclusion has a positive effect, the impact is smaller due to lower financial literacy and limited access to financial services. In Malaysia, more advanced financial inclusion policies and broader fintech access contribute significantly to MSME growth. This study suggests that to foster MSME growth, more structured financial inclusion policies, as well as improving financial literacy and access to financial services, should be a primary focus
Copyright (c) 2025 Ida Ayu Putu Megawati, Made Ratih Nurmalasari, Putu Putri Prawitasari, Ni Putu Ari Krismajayanti, Ni Nengah Rupadi Kertiriasih (Author) https://creativecommons.org/licenses/by-sa/4.0
Sensing without Seizing: The Institutional Barriers to AI Adoption in Indonesian MSMEs
Despite strong policy support, the adoption of Artificial Intelligence (AI) among Indonesian Micro, Small, and Medium Enterprises (MSMEs) remains critically low, creating a notable "digital paradox." This study investigates the "gap between sensing and seizing," defined as the disparity between awareness of AI opportunities and deployment capability. Integrating Dynamic Capabilities Theory and Institutional Theory, we examine how internal organizational capabilities intersect with contextual barriers. Utilizing an interpretivist approach based on the Gioia Methodology, data were analyzed from 28 MSMEs in the Special Region of Yogyakarta through indepth interviews, focus group discussions, and document analysis. The analysis reveals that while sensing capability is widespread, it relies heavily on informal peer networks and is constrained by a cognitive mismatch regarding the relevance of AI for small businesses. Seizing capability is hampered less by financial constraints than by weak absorptive capacity and challenges in assessing return on investment. Transforming capabilities among early adopters are incremental and highly dependent on external ecosystem support. The study concludes that this adoption gap reflects institutional voids, specifically infrastructure inequality and regulatory uncertainty, rather than a lack of entrepreneurial will. These findings refine the theoretical understanding of technology adoption in developing economies and offer strategic guidance for policymakers and technology providers.
Copyright (c) 2025 Dadet Sugiarto, Eryco Muhdaliha, Jemmy Jemmy, Selamet Riyadi (Author) https://creativecommons.org/licenses/by-sa/4.0
The Role of Brand Image in Mediating Sales Promotion and Perceived Ease of Use Toward Purchase Decisions for Fashion Products Among Zalora Marketplace Consumers in Jember
This study aims to analyze the influence of sales promotion and perceived ease of use on purchasing decisions of fashion products among Zalora consumers in Jember, with brand image as a mediating variable. This research employs a quantitative approach by distributing questionnaires to respondents who have made purchases through the Zalora platform. Data were analyzed using Partial Least Square (PLS) to examine both the structural model and measurement model, enabling evaluation of direct and indirect relationships among the research variables. The results indicate that sales promotion and perceived ease of use have a positive and significant influence on purchasing decisions. Furthermore, sales promotion and perceived ease of use are found to positively affect brand image. The findings also show that brand image significantly influences purchasing decisions. Mediation testing confirms that brand image mediates the relationship between sales promotion and perceived ease of use on purchasing decisions, demonstrating the strategic role of brand image in strengthening the impact of marketing stimuli and digital platform experience on consumer purchasing decisions on Zalora in Jember.
Copyright (c) 2025 Ardini Manzilatun Nikmah, Raden Andi Sularso, Bambang Irawan (Author) https://creativecommons.org/licenses/by-sa/4.0
Circular Economy Practices and Profitability in Indonesian Manufacturing: Structural Enablers, Barriers, and Sectoral Divergence
The shift toward a circular economy has become increasingly important for Indonesia’s manufacturing industry as firms face rising material costs, environmental pressures, and global competitiveness demands. However, evidence on the profitability implications of circular practices remains fragmented and sector-dependent. This study examines how circular economy implementation influences profitability in Indonesian manufacturing firms through a Systematic Literature Review guided by the PRISMA 2020 protocol. Forty-two relevant studies were synthesized to evaluate the economic effects of practices such as recycling, remanufacturing, industrial symbiosis, eco-design, and service-based business models. The findings indicate that circular adoption enhances profitability mainly through cost efficiency, reduced reliance on virgin materials, operational stability, and new revenue creation. Nevertheless, profitability outcomes diverge across sectors and firm types, shaped by technological readiness, supply chain maturity, access to capital, regulatory certainty, and human capital capability. This review contributes by clarifying the structural conditions under which circular economy practices translate into financial gains in emerging manufacturing contexts.
Copyright (c) 2025 Fitria Husnatarina (Author) https://creativecommons.org/licenses/by-sa/4.0
Fiscal Efficiency and Public Service Innovation in the Era of Digitalization of Indonesian Government
This study examines how digital transformation influences fiscal efficiency and public service innovation in Indonesia by integrating global evidence with national policy analysis. Using a mixed method approach that combines conceptual frameworks with secondary data on Indonesia’s digital governance initiatives, the study finds that digital transformation contributes to fiscal optimization through administrative simplification, improved transparency, automated workflows and enhanced data integration. Innovations such as e procurement, online licensing and digital budgeting demonstrate measurable reductions in transaction costs and increased accountability in several regions. However, the effectiveness of these initiatives is constrained by structural barriers including unequal digital infrastructure, limited human resource capacity, fragmented interoperability, cultural resistance and inconsistent leadership commitment across administrative levels. Governance dynamics within Indonesia’s decentralized system produce variations in digital readiness, which in turn shape the extent of efficiency gains and service improvements. The study concludes that digital transformation can significantly enhance fiscal performance when supported by coordinated regulatory frameworks, strengthened institutional capacity, standardized data governance and sustained investment. These findings highlight the need for integrated national strategies that combine technological development with organizational reform to ensure inclusive and long term public sector modernization.
Copyright (c) 2025 Muh. Nur (Author) https://creativecommons.org/licenses/by-sa/4.0
The Effect of Corporate Social Responsibility Disclosure, Leverage, and Company Size on Company Value with Profitability as a Moderating Variable (Case Study of Energy Sector Companies Listed on the IDX in 2020-2023)
This study aims to determine the effect of Corporate Social Responsibility (CSR), leverage, and company size on firm value, with profitability as a moderating variable. The study population comprised energy sector companies listed on the Indonesia Stock Exchange (IDX) in 2020-2023. This study employed a quantitative method with secondary data in the form of company annual reports. The results show that CSR has a positive effect on firm value. Leverage has a negative effect on firm value. Company size has a positive effect on firm value. Profitability moderates the influence of CSR, leverage, and company size on firm value
Copyright (c) 2025 Riska Huliawati , Netty Herawaty, Wiwik Tiswiyanti (Author) https://creativecommons.org/licenses/by-sa/4.0
Evaluation of the Effectiveness of Post-Pandemic MSME Tax Incentives on Local Economic Performance
This study evaluates the effectiveness of post-pandemic tax incentives for micro, small, and medium enterprises in Indonesia and examines their impact on local economic performance. Using a combined conceptual and policy analysis approach, the research assesses how behavioural, structural, and institutional factors mediate the ability of MSMEs to convert tax relief into meaningful economic outcomes. The findings indicate that MSME responses to tax incentives are strongly influenced by business formality, liquidity constraints, digital readiness, sectoral composition, and information accessibility. Regions with stronger administrative capacity, higher digitalization, and greater purchasing power demonstrate more substantial improvements in employment recovery, business reopening rates, and local consumption. Structural factors such as regulatory clarity, financial inclusion, supply chain integration, human capital quality, and infrastructure development further shape the sustainability of tax incentive impacts. The study concludes that while tax incentives play an important role in supporting MSME recovery, their long-term effectiveness depends on broader institutional reforms that enhance administrative capability, promote digital access, strengthen financial systems, and improve local governance. Strengthening these structural conditions will expand the capacity of MSMEs to benefit from fiscal incentives and contribute to more resilient and inclusive local economic growth.
Copyright (c) 2025 Loso Judijanto (Author) https://creativecommons.org/licenses/by-sa/4.0
The Implications of the Global Minimum Tax on the Tax Strategies of Multinational Companies in Indonesia
This study analyzes the implications of the Global Minimum Tax for the tax strategies of multinational enterprises operating in Indonesia. Using a mixed conceptual policy approach, the research integrates doctrinal analysis of the Global Anti-Base Erosion framework with an economic evaluation of multinational behavioral responses. The findings show that the Global Minimum Tax fundamentally reshapes incentives for profit shifting, tax arbitrage, and the use of preferential regimes. Multinational enterprises are expected to revise strategies related to intellectual property placement, intra-group financing, and transfer pricing as low-tax structures lose effectiveness under top-up tax mechanisms. For Indonesia, the policy impact is substantial: traditional tax incentives such as holidays and special economic zone benefits become less attractive, prompting a shift toward expenditure-based and non-tax incentives. The study further reveals that Indonesia must strengthen regulatory certainty, administrative capacity, and digital tax infrastructure to implement the Global Minimum Tax effectively. Strategic adjustments are also required in investment policy, emphasizing infrastructure quality, human capital, and institutional stability as key competitiveness drivers. The research concludes that the Global Minimum Tax presents both opportunities and challenges for Indonesia, offering potential revenue gains while demanding comprehensive structural reforms to maintain investment attractiveness and align with global tax standards.
Analysis of Factors Affecting Tax Aggressiveness in Public Companies
This study analyses the factors that influence tax aggressiveness in public companies by examining the interaction between company financial characteristics, governance structure, and institutional environment. Using a quantitative panel data research design, this study evaluates 84 firm-year observations from Indonesia and Malaysia using fixed effects and random effects models to test how leverage, profitability, company size, ownership concentration, and governance quality influence tax aggressiveness as measured by cash effective tax rate and book-tax differences. The findings show that higher leverage and profitability increase tax aggressiveness, while greater board independence and better audit quality decrease it. Institutional factors such as regulatory enforcement, legal clarity, and audit intensity moderate corporate behaviour and shape the level of tax aggressiveness. The results of the study reveal that tax aggressiveness is not driven by a single variable, but is the result of a combination of financial incentives and institutional opportunities. Companies operating in a weak regulatory environment exhibit higher tax aggressiveness, confirming the role of institutional quality in shaping compliance. This study concludes that reducing tax aggressiveness requires comprehensive reforms that integrate the strengthening of corporate governance with improvements in law enforcement and regulatory clarity. These findings contribute by offering a multidimensional analysis that combines internal and external determinants of tax behaviour
Evaluation of Double Taxation Agreements (DTAs) in Preventing Double Taxation in the Digital Economy Era
This study analyzes the determinants of tax aggressiveness in public companies by examining the interaction between firm-level financial characteristics, corporate governance structures, and institutional environments. Employing a quantitative panel-data design, the study evaluates 84 firm-year observations from Indonesia and Malaysia, using fixed-effects and random-effects models to test how leverage, profitability, firm size, ownership concentration, and governance quality influence tax aggressiveness measured through cash effective tax rates and book-tax differences. The findings indicate that higher leverage and profitability significantly increase tax aggressiveness, while stronger board independence and higher audit quality reduce it. Institutional factors, including regulatory enforcement, legal clarity, and audit intensity, moderate firm behavior and shape the extent of aggressive tax practices. The results reveal that tax aggressiveness is not driven by isolated variables but emerges from combined financial incentives and institutional opportunities. Firms in weaker regulatory environments exhibit higher aggressiveness, demonstrating the role of institutional quality in shaping compliance. The study concludes that reducing tax aggressiveness requires comprehensive reforms that integrate improvements in corporate governance with strengthened enforcement and regulatory clarity. The findings contribute to the literature by offering a multidimensional analysis that bridges firm-level and institutional determinants of tax behavior
The Impact of Thin Capitalisation Rules on Corporate Tax Burden: Evidence from the Emerging Market
This study examines the impact of thin capitalization rules on corporate tax burdens in emerging markets, focusing on firm-level behavioural responses and policy effectiveness in Indonesia and Malaysia. Using a panel dataset of 78 firm-year observations drawn from 2015 to 2022, the study applies fixed-effects and random-effects regression models to assess changes in leverage, interest expenses, effective tax rates, and book tax differences following the implementation of thin capitalization rules. The findings indicate that the regulations significantly reduce corporate leverage and related-party interest expenses, consequently increasing cash effective tax rates among heavily leveraged firms. The results further show that firms engage in substitution toward non-debt tax planning channels when interest deductions are restricted, highlighting behavioural adaptability in response to regulatory pressure. Differences in regulatory effectiveness between Indonesia and Malaysia underscore the importance of enforcement capacity and administrative consistency in shaping compliance outcomes. The study concludes that thin capitalization rules contribute meaningfully to reducing debt-based profit shifting but require complementary tax governance reforms to maximize their impact. The results provide empirical insights relevant for policymakers seeking to strengthen corporate tax bases in emerging markets.
Digital Financial Risk Control: Challenges and Innovation In The Modern Financial System
The rapid expansion of Indonesia’s digital financial ecosystem has significantly advanced financial inclusion and innovation through the growth of fintech platforms, digital payments, and crypto-asset adoption. However, this transformation introduces multifaceted risks, including cyber threats, data breaches, digital fraud, regulatory uncertainty, and money-laundering vulnerabilities associated with crypto-assets and decentralized finance. This study employs a systematic literature review to examine the challenges and innovations in digital financial risk control within Indonesia’s fintech and digital asset sectors. Findings indicate that effective risk mitigation relies heavily on regulatory coordination, advanced supervisory technology, consumer digital literacy, and robust data protection practices. RegTech and SupTech innovations powered by artificial intelligence support real-time risk monitoring and enhance compliance with global standards such as FATF recommendations. Nevertheless, successful digital financial governance also requires algorithmic accountability and ethical technology deployment. This study underscores that safeguarding stability, trust, and consumer protection is essential to achieving a secure and inclusive digital financial system while enabling responsible innovation.
Copyright (c) 2025 Supiati Supiati (Author) https://creativecommons.org/licenses/by-sa/4.0
The Application of Blockchain Technology in Stock Trading Efficiency
Indonesia’s stock market has grown rapidly in volume and retail participation, creating increasing pressure on market infrastructures to deliver faster, more transparent, and more secure end-to-end processes. This study examines the potential of blockchain technology to enhance the efficiency of stock trading processes, covering trade execution at the Indonesia Stock Exchange, clearing performed by the Indonesia Clearing and Guarantee Corporation, and settlement and asset recording conducted by the Indonesian Central Securities Depository. Using a systematic literature review, the study synthesizes evidence from reputable academic databases and institutional publications through a structured selection approach and critical appraisal. The findings indicate that blockchain introduces substantial opportunities to accelerate transaction processing, strengthen data integrity, streamline clearing workflows, enable near real-time settlement, and automate corporate actions through smart contracts. Nevertheless, the study also reveals significant challenges, including limitations in scalability, infrastructure investment requirements, regulatory gaps, governance complexity, and the need for high-level technical readiness among market institutions. The study concludes that blockchain can serve as a transformative infrastructure for Indonesia’s capital market, provided its implementation follows a phased approach supported by rigorous pilot testing and clear regulatory frameworks.
Copyright (c) 2025 Vidya Ramadhan Putra Pratama (Author) https://creativecommons.org/licenses/by-sa/4.0
Financial Risk Management in Facing the Economic Crisis in Bangka Belitung Province
This research article discusses the importance of financial risk management in facing the economic crisis in Bangka Belitung Province, this region has great economic potential, especially in the mining and tourism sectors, but is also vulnerable to the global economic crisis, this study aims to analyze the condition of financial risk management in Bangka Belitung Province and identify the types of financial risks faced by companies and financial institutions. This study uses a case study method and secondary data analysis from provincial economic reports, the results of the study indicate that Bangka Belitung Province has relatively stable economic growth, but still faces significant financial risks, therefore effective financial risk management is needed to face the economic crisis. Effective financial risk management can help companies and financial institutions in Bangka Belitung Province to identify, measure and manage financial risks effectively, this can be done by developing appropriate risk management strategies, improving credit quality and strengthening the stability of the financial system. Thus, this study can contribute to the development of financial risk management in Bangka Belitung Province and help companies and financial institutions to face the economic crisis better, this study can also be a reference for local governments and related institutions in developing policies to improve the economic resilience of Bangka Belitung Province
Copyright (c) 2025 Suhardi Suhardi (Author) https://creativecommons.org/licenses/by-sa/4.0
Consumer Behavior toward Digital Transactions Using QRIS: A Technology Acceptance Model (TAM) Approach
This study aims to analyze consumer behavior toward digital transactions using the Quick Response Code Indonesian Standard (QRIS) through the Technology Acceptance Model (TAM) framework. A quantitative descriptive approach was applied to examine the relationships among perceived usefulness (PU), perceived ease of use (PEOU), attitude toward use (ATU), and behavioral intention (BI) in determining consumer acceptance of QRIS. Data were collected from active users of digital payment systems in Indonesia and analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The findings reveal that perceived usefulness and perceived ease of use significantly influence users’ positive attitudes toward QRIS, which subsequently enhance their behavioral intention to use. Trust and perceived security also play crucial roles in reinforcing the relationship between attitude and intention. Theoretically, this research confirms the robustness of the TAM framework within the context of financial technology adoption in developing economies. Practically, the study provides strategic implications for monetary authorities and digital payment providers to increase QRIS adoption through user experience enhancement, digital literacy programs, and stronger regulatory measures for transaction security.
Copyright (c) 2025 R. Suprono Wahyujatmiko (Author) https://creativecommons.org/licenses/by-sa/4.0
Corporate Social Responsibility (CSR) as an Instrument of Economic Justice
This study examines Corporate Social Responsibility (CSR) as a strategic instrument for achieving economic justice in the context of global corporate transformation. The research adopts a qualitative descriptive approach focusing on the economic institutional framework to analyze how CSR contributes to redistributive mechanisms, economic empowerment, and inclusive growth. Data were collected through semi-structured interviews with CSR managers from multinational companies in the energy, mining, and manufacturing sectors, complemented by secondary data from sustainability reports and global policy documents such as those by the OECD, UNDP, and GRI. The findings reveal that CSR has shifted from philanthropic activities toward a strategic economic mechanism capable of reducing inequality and fostering social inclusion. Firms that integrate CSR into their core economic strategy exhibit higher levels of supply chain resilience, stakeholder trust, and community welfare. The study also highlights that empowerment-based CSR programs, particularly those supporting local entrepreneurship and inclusive digitalization, significantly improve community income and business performance. Furthermore, CSR is found to drive long-term corporate transformation through sustainability-oriented innovation and stakeholder capitalism, aligning business profitability with distributive justice and institutional resilience. In conclusion, CSR functions not only as a moral obligation but also as a redistributive economic policy tool essential for achieving sustainable and equitable growth in the global economy.
Copyright (c) 2025 Berilian Ayu Kusuma, Sri Wahyuni Jumadi, Pramidazzura Alifa Rifqi (Author) https://creativecommons.org/licenses/by-sa/4.0
QRIS-Based Digital Marketing: Collaborative Strategies between Merchants and Financial Service Providers
This study aims to analyze the implementation of the Quick Response Code Indonesian Standard (QRIS) as a collaborative digital marketing strategy between merchants and financial service providers in Indonesia. Using a descriptive qualitative approach, this research explores the relationship between QRIS adoption, business collaboration, and its impact on transaction efficiency and MSME competitiveness in the digital economy. Data were collected through semi-structured interviews with MSME owners from the retail, culinary, and service sectors, as well as representatives from financial institutions involved in the QRIS ecosystem. The findings reveal that QRIS integration enhances transaction efficiency, strengthens consumer trust, and expands market access for small businesses. The collaboration between merchants and financial providers creates shared value through the utilization of transaction data as a foundation for marketing decision-making. Moreover, QRIS contributes to accelerating financial inclusion and reducing digital inequality across regions. Nonetheless, challenges remain, particularly in addressing limited digital literacy and infrastructure in rural areas. This study concludes that QRIS functions not only as a financial innovation but also as a strategic instrument for developing an inclusive, efficient, and sustainable digital marketing ecosystem for MSMEs in Indonesia.
Copyright (c) 2025 waqiah, Misfah Muslimawati, Farhatun Zaidah (Author) https://creativecommons.org/licenses/by-sa/4.0
Upper and Lower Auto Rejection (ARA-ARB) Policy on the Indonesia Stock Exchange: an Analysis of its Compliance with the Principles of Islamic Economic Law
High stock price volatility can trigger market instability and increase the risk of investor losses. To manage such fluctuations, the Indonesia Stock Exchange (IDX) implements the Auto Rejection Upper and Lower (ARA–ARB) policy as a daily price movement limit. In the context of the Islamic capital market, it is essential to examine whether this policy aligns with Islamic economic law and the objectives of maqāṣid al-sharī‘ah, particularly in promoting justice (‘adl), avoiding excessive uncertainty (gharar), and ensuring public welfare (maslahah). This study aims to analyze the conformity of the ARA–ARB mechanism with these principles. The research employs a normative-doctrinal approach through document analysis of regulatory texts, including IDX Board of Directors’ Decrees, OJK regulations, and DSN-MUI Fatwas, complemented by literature review and synthesis of empirical studies from 2020 to 2023. The findings indicate that, from a normative perspective, the ARA–ARB policy is consistent with maqāṣid al-sharī‘ah as it helps reduce extreme volatility, minimizes gharar, ensures fairness and transparency, and is free from elements of riba. Empirically, ARA–ARB provides positive signals toward abnormal returns under certain conditions, although often followed by a short-term decline in trading volume. This implies a trade-off between price stability and market liquidity. The study recommends regular sharia compliance evaluations, enhanced involvement of the Sharia Supervisory Board, and improved transparency and investor literacy to ensure that the implementation of ARA–ARB remains consistent with Islamic principles while supporting a stable and resilient capital market in Indonesia.
Copyright (c) 2025 Muflih Adi Laksono (Author) https://creativecommons.org/licenses/by-sa/4.0