Implementation of Good Corporate Governance on Financial Performance Coal Companies Moderated by Capital Structure

Coal mining companies is built to serve and maintain the stability of domestic coal supply, especially at PLTU so that large economics of scale can be achieved, in order for this to happen, it is necessary to have good corporate governance in order to create economic value added for the growth and development of the company. This study aims to determine how much capital structure could moderated relationship between good corporate governance and economic value added of the coal companies. The research method used is a quantitative descriptive. This study samples are coal mining company listed at indonesian exchange stock between 2015 and 2019. Moderated regression analysis was used in this study to analyze the data. The result showed that with capital structure as moderate variable, board size committee audit that has a positive significant effect on economic value added and managerial ownership has a negative significant effect. While, size board of director hasn’t significant effect Keywords: capital structure, financial performance, good corporate governance.

Risk-Based Virtual Energy Storage System Service Strategy for Prosumers

The high cost of an energy storage system (ESS) is a barrier to its use. This paper proposes a risk-based virtual ESS (VESS) service strategy for prosumers. The basic concept of the VESS service is to logically refer to a physical ESS by multiple users. The VESS service can install ESS with a larger capacity compared to the case of installing ESS individually. Therefore, the VESS reduces the cost barrier through economies of scale. Moreover, ESS is not always being utilized at its maximum in the VESS service. Considering the risk, a VESS can offer a greater capacity than an installed ESS capacity. In this paper, the VESS service model suggested considers not only the economic benefit of increasing the VESS installation capacity but also the value at risk arising from servicing a greater capacity. The VESS service problem is formulated as a convex problem according to the VESS installation capacity and service price by applying stochastic approximation and is optimally solved using the gradient descent method in an iterative manner. The simulation results demonstrate that, when the proposed service strategy is used, the service provider that considers the risk achieves a significantly greater economic benefit of around 30% for the 128-prosumer pair case as compared to the one that does not consider risk. The benefit of the prosumer is increased by approximately 3.5% for the 128-prosumer pair case because the mismatched quantity is reduced during the peer-to-peer energy transaction. In addition, it is discussed how the proposed VESS service strategy achieves benefit through unit ESS cost reduction by the economics of scale and achieves increased service capacity with the multi-user diversity gain of participants.

Determinant of Indonesian Banking Profitability: Case Study Dual Banking System

Islamic banking is considered as the perfect alternative of the current conventional financial system. However, there is still a huge amount of criticisms in terms of its practice, with many claims that Islamic banking and finance simply replaces conventional banking terminology and offers near-identical services to its clients but at a higher cost. The objective of this study is to make a comparative empirical assessment on the determinants of profitability between the Islamic and conventional banks in Indonesia. The panel data regression is applied to analyze the relationship between profitability indicators and both industry and country level characteristics. As far as the author knows, only few studies compare the profitability of Indonesian Islamic banks and conventional banks, especially in using econometrics approach. From the empirical result in the combined model, it is known that conventional banks are more profitable than Islamic banks. Compared to the combined regression, there is no significant difference in terms of significance of the independent variables and its relationship with the dependent variable for the conventional bank regression. Conventional banks are more familiar for the community due to the long operation compared to Islamic banks. Socialization needs to be done with some approach starting from mosques and Islamic schools. The development of supporting industries such as halal industry and halal tourism are also important to increase the demand for Islamic banking product. Beside increasing the demand, efforts to increase the economics of scale is also important with various efforts such as merger or acquisition.

Do we need a second engine for Entrepreneurship? How well defined is intrapreneurship to handle challenges during COVID-19?

Changing domains of economic mobility has brought in perspectives of innovation which are quite different from the earlier traditions in the so-called readings of Schumpeterian ways of innovative thinking. The new pandemic has taught us lessons that multidisciplinary innovation is not constrained to some mystical black box of innovation but should be elastic and accessible based on necessity and choices. Human beings are not always rational. Cognitive biases and nudges arising out of crisis globally has shown behavioral functionalities which changes the way human beings react and succumb to decision-making. This particular paper is based on extensive literature reviews and global cases arising out of extregencies and the subsequent development of field experiments which study the effects of various factors on innovation within the company. The filed experiments conducted were at national level in cooperation with national chamber of commerce wherein both intrinsic and extrinsic values of economics of scale was studied statistically using advanced techniques to not only analyze the results but infer on earlier research gaps in factors influencing the innovation blackbox of intrapreneurship which takes into account the psychology of economic decision making inside the corporate bandwagon. The rational choice behind measuring intrapreneurship in this study is impactful for learning the trends of human actions and behavior in a firm, which can be a yardstick for future academicians and policymakers to implement directly for aggravating the incubation indices.

Fishermen’s Behavior of Multi Ethnic Community in Adapting Climate Change in Small Island

In a development perspective, small islands have limited economic access and opportunities, especially related to the economics of scale. Furthermore, the common problem such as climate change impact requires appropriate behavior of local inhabitant in order to survive in gaining to the economic access. Multi-ethnic society has different socio-cultural background that implies special characteristics and strategies to overcome climate change impacts. This study was conducted in Masalembu Island which consist of Madurese, Mandar, Bugis and Javanese ethnic. The aims of this study are to describe negative impact of climate change to the fisherman and to describe fisherman’s behavior for adapting climate changes. Theanalysis method is mixed method between the descriptive quantitative and qualitative analysis. The results show climate change causes fluctuating fish production, extending fishing ground to be more off-shore, uncertainty schedule for fishing and invasion from outer fisherman. Meanwhile, fishermen's behavior in overcoming the impacts of climate change consist of active response by Group of Fishermen, apply autonomous adaptation and apply adaptation behavior technologically, sociologically and regulatory. Based on these results, it is necessary to improve planned adaptation trough aquaculture, applying modern but friendlytechnology fishing gear and enhancing participation as well as cooperation among fisherman without ethnic consideration.

Optimizing equipment efficiency: An application of SMED methodology for SMEs

Competitiveness in the era of globalization is tougher than ever before. Most of small medium-sized enterprises, especially in the manufacturing sector, are easily vulnerable due to lack of opportunities and resources to harness the economics of scale as well as business activities in research and development. To drive business competitiveness, the small and medium-sized enterprises (SMEs) must make use of resource efficiency in production processes and optimize the overall equipment effectiveness (OEE). The method of single minute exchange of dies (SMED) appears to be an effective approach, which does not require financial investments but only utilizes the current human resource, to improve and maximize the OEE. The paper describes the step-by-step approach to apply SMED and shows its results in the increase of 18% OEE in a semi-auto cutting machine.

Factors affecting capital size of enterprises in Dak Nong Province

The research focused on analyzing factors affecting capital size of enterprises in Dak Nong Province using multivariate regression model. Results show that business sector, import-export business, type of business registration, production and business location, age and share by other organizations in the capital structure of enterprises are determinants of capital size of enterprises in Dak Nong Province. Accordingly, the study proposes recommendations to local government so as to support enterprises, including: (i) promulgating and implementing priority policies for the development of agricultural sector and import-export business; (ii) encouraging private and one-member limited liability companies to expand their capital to gain the economics of scale; (iii) promoting investment in transport development, rural infrastructure to support enterprises; (iv) speeding up the implementation of the investment process and licensing progress for enterprises; and (v) calling for investment from the large organizations, enterprises and investors.

Trade Barrier Elimination, Economics of Scale and Market Competition: Computable General Equilibrium Model

The ASEAN and its dialogue partner countries agreed to reduce trade barriers in the services sector, one of which is sea transport services. The purpose of this study is to estimate the equivalent tax of non-tariff barriers in the sea transport services. Besides that, this study is going to analyze the economic impacts of the regulatory barriers elimination in the sea transport services of ASEAN and its dialogue partner countries. Using the gravity model, it can be identified that trade barriers of sea transport services sector of ASEAN and dialogue partner countries are still relatively high. Additionally, by adopting IC-IRTS model in Global CGE Model (GTAP), the simulation results show consistent results with the theory of pro-competitive effects. The greater gain from trade is obtained in the CGE model assuming IC-IRTS compared to PC-CRTS. China gains a greater benefit that is indicated by the highest increase in welfare and GDP followed by Japan and AustraliaDOI: 10.15408/sjie.v6i2.5279

How Much Polymer Should Be Injected During a Polymer Flood? Review of Previous and Current Practices

Summary This paper provides an extensive review of the polymer concentrations, viscosities, and bank sizes used during existing and previous polymer floods. On average, these values have been substantially greater during the past 25 years than during the first 30 years of polymer-flooding field activity. Reasons for the changes are discussed. Even with current floods, a broad range of polymer viscosities are injected, with substantial variations from a base-case design procedure. Extensive discussions with operators and designers of current polymer floods revealed substantial differences of opinion for the optimum design of polymer floods. This paper examines the validity of arguments that are commonly given to justify deviations from the base-case design. For applications involving viscous oils (e.g., 1,000 cp), the designed polymer viscosities have sometimes been underestimated because of insufficient water injection while determining relative permeabilities; reliance on mobility ratios at a calculated shock front; and overestimation of polymer resistance factors and residual resistance factors. In homogeneous reservoirs, the ratio of produced-oil value to injected-fluid cost is fairly insensitive to injected-polymer viscosity (up to the viscosity predicted by the base-case method), especially at low oil prices. However, reservoir heterogeneity and economics of scale associated with the polymer-dissolution equipment favor high polymer viscosities over low polymer viscosities, if injectivity is not limiting. Injection above the formation-parting pressure and fracture extension are crucial to achieving acceptable injectivity for many polymer floods, especially those using vertical injectors. Under the proper circumstances, this process can increase fluid injectivity, oil productivity, and reservoir-sweep efficiency, and also reduce the risk of mechanical degradation for polyacrylamide solutions. The key is to understand the degree of fracture extension for a given set of injection conditions so that fractures do not extend out of the target zone or cause severe channeling. Many field cases exist with no evidence that fractures caused severe polymer channeling or breaching of the reservoir seals, in spite of injection above the formation-parting pressure. Although at least one case exists (Daqing, China) where injection of very-viscous polymer solutions (i.e., more viscous than the base-case design) reduced Sor to less than that for waterflooding, our understanding of when and how this occurs is in its infancy. At this point, use of polymers to reduce Sor must be investigated experimentally on a case-by-case basis. A “one-size-fits-all” formula cannot be expected for the optimum bank size. However, experience and technical considerations favor use of the largest practical polymer bank. Although graded banks are commonly used or planned in field applications, more work is needed to demonstrate their utility and to identify the most-appropriate design procedure.