The objectives of this paper are to estimate technical efficiency in rice production and to assess the effect offarm-specific socio-economic factors on the technical efficiency using survey data from 15 provinces inIndonesia, collected in 2008. A stochastic frontier production function model is used to estimate the technicalefficiency of rice farms in each province, and using the model, the influence of socio-economic factors onefficiency is also measured. This study finds that there is a sizeable degree of variation of inefficiency betweenthe 15 provinces. It also finds that factors like land size, income and source of funding are influentialdeterminants of technical efficiency. In terms of age, it also found that younger farmers tend to be more efficient.Expanding the agricultural area, especially outside Java and Sumatera Islands, improving farmers’ income andgiving an incentive to young people to work in the agricultural sector will enhance technical efficiency and thusproductivity, as well as the overall rice output.

This study examines the influence of export promotion programs (EPPs) in Indonesia on companies' resources, capabilities, strategies, and competitiveness, and whether such programs positively impact export performance and finances. Using data from 204 exporting companies in Indonesia and the structural equation model for analysis, this study finds that participation in EPPs reinforces the organizational resources and exporting capabilities needed for developing successful export strategies. This allows for the creation of competitive advantages in export costs, product superiority, and effective distribution, which in turn increases performance in terms of market share and finance. The results also indicate that the effect of EPPs is relatively more significant on small companies and those with more export experience. They confirm that EPPs have the most significant impact on firms' resources and capabilities, and that assistance programs that aim to improve organizational capabilities are needed to enhance marketing strategies. While innovative capabilities and business intelligence offer great potential to support export performance, EPP-type assistance programs have not been adequately developed in Indonesia.

This paper examines the impact of special tariffs between China and the United States (US) on their indirect trade partners via spillover effects. We applied a Value-Added Real Effective Exchange Rate (VA-REER) index to simulate how an increase in tariffs induces changes in demand for goods from Indonesia and selected Asian partners. We used the Input–Output Database (WIOD) to simulate the spillover effects across partners via the Global Value Chain (GVC) using data from 2000 to 2014. The results suggest that demand is doubly more responsive to prices (tariffs) when value-added (VA-REER) index is used instead of the conventional REER index (gross trade). We found that US tariffs on Chinese goods have a negative spillover impact on Indonesia’s exports. Meanwhile, the Chinese tariffs on American goods lead to small increased demand for Indonesian exports. We also found that US and China become equally crucial for Indonesia under the Value-Added REER scheme, concluding that the conventional REER approach may have underestimated the impact of US tariffs on Chinese goods. Finally, we found that Indonesia would be at risk to trade shocks if the US applies tariffs on China, Asian partners (Japan and South Korea), and the European Union (EU).

This article calculates the real exchange rate misalignment (RERM) of the rupiah to examine the role of misalignment in exchange rate crises in Indonesia. The article does this by employing an autoregressive regime-switching model and behavioural equilibrium exchange rate (BEER) approach. The findings are as follows. First, net foreign assets and the relative productivity differential between sectors significantly influence the equilibrium exchange rate, indicating that external and internal balance determine the behaviour of the rupiah in the long run. Second, the BEER approach can properly predict misalignment of the rupiah, especially through explaining the overvaluation periods of the rupiah before the Asian financial crisis. The regime switching model performs well in identifying episodes of stability and volatility in the rupiah. Third, of the 17 crisis episodes experienced in Indonesia in 1981-2012, 10 were preceded by high RERM.

The issue of global warming has become increasingly documented as a major problem facing the world. The present study adopted the autoregressive distributed lag (ARDL) model to check the validity of the EKC hypothesis under the moderating role of industrialization on CO₂ emissions, and to assess the relationship between CO₂ emissions, energy consumption, industrialization, economic growth, and financial development in Indonesia in the long and short term, in three separate models employing data spanning the period 1983–2018. The results of the bounds approach prove the presence of a cointegration relationship between CO₂ emissions, economic growth, economic growth square, energy consumption, industrialization, and financial development. In Model 1, the empirical outcomes demonstrate that a rise in economic growth leads to higher CO₂ emissions. On the contrary, a rise in economic growth squared impedes CO₂ emissions in the long run. This result proves the validity of the environmental Kuznets curve hypothesis. Moreover, Model 2 reveals that economic growth and energy consumption foster higher CO₂ emissions. Higher financial development decreases the associated CO₂. Model 3 shows that industrialization as a moderator factor shows a reverse consequence of economic growth and economic growth squared on CO₂. Economic growth shows a significant negative impact on CO₂, while economic growth squared is linked positively with CO₂ emissions, which does not validate the EKC hypothesis under the moderating role of industrialization. This study recommends that industries’ transition from reliance on excessive non-renewable energy sources to knowledge-based industrialization will reduce CO₂ emissions and improve environmental quality.

This study aims to determine the dynamic relationship between energy consumption, FDI, and economic growth in developing countries in the Asian Region by adding other control variables. This study uses a panel data model approach and a dynamic GMM panel with a dataset of 21 developing countries in the Asian Region from 2000-2019. The results of the panel data model report that FDI and energy consumption can significantly increase economic growth. However, poverty and interest rates can reduce economic growth. On the other hand, the dynamic GMM approach states that FDI and energy consumption can increase economic growth with a significant positive relationship. However, poverty, interest rates, and inflation have a negative and significant relationship to economic growth in developing countries in the Asian Region. In line with the study findings, these findings are of more interest to policymakers in this country. Therefore policy recommendations are made to increase the economic growth of developing countries in the Asian Region.