Articles

Analysing Risk & Return Profiles: A Comparative Study of the Indonesian Stock Market against International Benchmarks

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The Indonesian stock market, also known as IDX, has emerged as a prominent player in the financial landscape of Southeast Asia. It has attracted the interest of investors who regard it as a potential source of massive returns. Nevertheless, empirical research has consistently demonstrated that developing nations’ stock markets tend to exhibit a notable degree of volatility. This volatility is well recognised for its propensity to amplify risk levels for domestic investors, potentially leading to a decrease in the demand for stock market investments. The observed phenomenon in Indonesia reveals a very low degree of stock market engagement when compared to benchmark nations. This suggests that the high volatility in the market may be a contributing factor.

Understanding the risk-return characteristics of the IDX in comparison to recognised benchmark indexes is crucial for making educated investment decisions. This study will conduct a comparative analysis of the risk-return attributes of the IDX in comparison to six well recognised benchmark indexes, specifically the S&P 500 Index, the Straits Times Index, the FTSE 100 Index, the Shanghai Stock Exchange Composite, the BSE Sensex, and the BOVESPA Index. The study employs several risk and return measures, such as standard deviation, coefficient of variation, and the Sharpe ratio, to assess the relative performance of the IDX.

The objective of this study is to evaluate the comparative appeal of the Indonesian stock market when compared to international benchmarks, with a specific focus on risk and return. The aim is to determine the optimal level of stock market involvement and the inclination towards risk aversion or risk-seeking behaviour among retail investors in Indonesia.

Business Strategy to Improve Business Incubation Services for Science Techno Park

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Science Techno Park is a facility in the form of an area specially prepared to initiate and flow knowledge and technology between R&D institutions, universities and industry. STP facilitates the growth and development of innovative start-ups through incubation activities and spin off processes. The main objective of STP is to encourage economic growth through the development of innovation potential. Science Techno Park was initiated in 2014 under PT Bogor Life Science and Technology (BLST) as a holding company owned by Bogor Agricultural University (IPB).

This study aims to identify and improve the Science Techno Park business incubation services for inwall tenants and startup companies that are fostered based on the problems that occur and are expected to increase other income from the Science Techno Park business. The method used in this study uses primary data derived from quantitative and qualitative methods obtained from questionnaires and interviews with inwall tenants and startup companies that are undergoing the Science Techno Park business incubation program. Secondary data analysis uses company reports and literature from various sources.

The conceptual framework used in this study begins with an analysis of customers of Science Techno Park business incubation service. Then analyze the external environment using general environmental analysis, industry analysis, and competitor analysis. For internal environmental analysis using resources, capabilities, and core competencies. All the results of the analysis are summarized in a SWOT analysis. From the results of the analysis, the researcher provides solutions and business strategies to solve problems experienced by Science Techno Park in fostering inwall tenants and startup companies and provide business alternatives to earn other income besides business incubation services.

The strategy proposed based on research results is a strategy of business diversification and cost leadership. In addition, a functional strategy is provided to improve company performance in the area of marketing, finance, and internal management. The researcher provide implementation plans by mapping the potential users of business incubation services and the roadmap for the development of Science Techno Park to improve business incubation services and develop other business services.

Oil Palm Expansion in Farmers Perspective

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Studies on oil palm plantation expansion have been widely conducted and still debatable. This condition is caused by the increase in the oil palm land expansion every year. It cannot be separated from the role of investors/private companies, the state, and smallholders. This paper focuses on the farmer perspective on the oil palm plantations expansion with the purpose of describing the expansion of oil palm plantations from the farmer perspective in economy, income diversification and working time. This study used a qualitative and quantitative approach with the types of data used in this study were secondary data and primary data. The farmers feel the benefit in the economic side, increasing income and welfare levels. On the other hand, the presence of oil palm has led to the diversification of livelihoods in farmer, it makes easy in to borrow formal and non-formal institutions.

Proposed Marketing Strategy to Enter Methanol Market as Diversification for National Gas Company

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Methanol is a key material used as feedstock in the chemical industry which is mainly produced from natural gas and coal. Indonesia is well-known for its natural resources including the large reserves of natural gas which become the third largest in the Asia-Pacific. However, Indonesia and even Asia are having gaps between production and demand that need to be fulfilled. Indonesia only has one methanol producer and still importing a large amount of it despite the increasing demand. A national natural gas company is considering the possibility to produce methanol in order to fulfill the gaps as well as diversification to give adding value to natural gas and also commercialize the oversupply of natural gas from the termination of the export contract. The objective of this research is to find the best business strategy for the company considering various challenges and opportunities. The methodology used in this research is qualitative and quantitative methods using secondary data and primary data. The primary data is collected through a qualitative questionnaire that involved companies that confirm the obstacles in sourcing methanol. The collected data is used to conduct external and internal analysis through PESTEL, Porter’s Five Forces, Customer Analysis, and VRIO Framework. The identified opportunities and challenges are then used to generate strategy through TOWS Matrix and 4P Marketing Mix. As a result, it is recommended for the company that will become a methanol supplier to set a competitive product price, choose a strategic place with high access to resources, promote the sustainability impact and multiplier effect to attract stakeholders and shareholders, and utilize the existing customer channel of natural gas to commercialize the new product.

A Model Examining the Effect of Generative Learning on the Relationship between Diversification and Financial Performance

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Organizations are trying to attain and sustain competitive advantage in the highly competitive business world settings. It is argued that one of the strategies to achieve competitive advantage is to form learning organizations. Diversification strategies of organizations are important growth decisions managers need to make. In this paper, organizational learning, learning organization, fundamental diversification strategies and the link between learning and diversification in the literature were discussed shortly. Then, the link between them was revisited considering the literature with a schema. At last, a causal model was introduced. Model suggested that When a company decides to expand its operations by adding new products related to existing product line, with the aim of exploiting its existing knowledge base, this company can reach superior financial performance  (financial performance means profitability) through generative learning. When a company decides to grow by adding a new product line irrelevant to existing product lines, with the aim of exploring new knowledge, then through generative learning, this company can introduce or develop new technologies in forms of new products/services, in other words make innovation. Unrelated diversification does not directly provide high financial performance. But gradually, as the innovation gain awareness, it brings in superior financial performance more than related diversification can bring in.