Articles

The Role of Relationship between Money Supply and Exports in the Context of Economic Development through Increasing the Resilience of Foreign Exchange Reserves: Evidence from Selected Asian Countries

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The importance of building foreign exchange reserve performance is the main requirement in safeguarding the economy in the global order from potential risks and threats originating from the external sector. This has become an important discussion in recent times, but several previous studies have not answered the urgency in building sustainable economic resilience, especially in countries that have economic experience with economic shocks caused by potential risks originating from the external sector. Ordinary-Least Square (OLS) analysis chosen to prove impact of financial stability and international trade on the growth and resilience of foreign exchange reserves as external liquidity for several countries in Asia during 1990 – 2020.

The results of this research show that in the long term, both the money supply variable and exports as an independent variable have a positive and significant influence in increasing the resilience of the external liquidity performance of selected Southeast Asian countries. Our policy recommendations emphasize the importance of maintaining the resilience of foreign exchange reserves as external liquidity in order to increase economic resilience in the global economic arena. The government should provide the main focus in increasing policies by increasing the role of the external sector itself through international cooperation.

From Farm to Table: Transforming The Shrimp Industry through Food Traceability and Business Differentiation Strategies at PT. Udang Maju Sejahtera

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This thesis investigates the development of a food traceability system for the shrimp export industry at PT. Udang Maju Sejahtera (UMS). The primary objective was to enhance the transparency and accountability of the shrimp supply chain, thereby improving product quality and consumer trust.

The study employed a three-pronged approach: formulating a robust business strategy, innovating product development, and restructuring the organization into a cross-functional team. The business strategy focused on aligning the company’s operations with the emerging demands for food traceability in the export market. The product development innovation involved the creation of a traceability system that leverages advanced technology to track and record the journey of shrimp from farm to consumer.

The restructuring into a cross-functional team aimed to streamline the decision-making process and accelerate the development cycle. The results indicated that while PT. UMS’s strategy aligns with the industry’s direction towards increased traceability, the development process was time-consuming and required organizational restructuring.

The study concludes that the integration of a cross-functional team within PT. UMS could expedite the development and implementation of the traceability system, thereby enhancing the company’s competitiveness in the shrimp export industry. Recommendations for PT. UMS include enhancing innovation management, investing in advanced technology, collaborating with external partners, and adopting a culture of continuous improvement. Future research should explore the long-term impacts of these recommendations on the company’s performance and the traceability system’s effectiveness.

A Study of Export Barrier in Garut Leather Tannery Industry

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The economic development of a country currently cannot be separated from the condition of global economy. Economic relations between country is an influencing factor for the development of both country involved. Therefore, export activity of an industry is very important for the development of a country’s economy. Based on data obtained through the Ministry of Trade of the Republic of Indonesia, export distribution in the form of footwear is 86%, leather finished goods are 13%, and leather is 1%. According to these data, it can be seen that the contribution of the leather tanning industry which is included in Leather Goods is very small in the total export distribution of leather. Meanwhile, by carrying out export activities, the leather industry will benefitted because it will open access to new customers who will have the potential to increase revenue and long-term growth. The data for this research was collected through 52 factory owners in this industry. After the data has been collected, an exploratory factor analysis was conducted to see how many factors become the barrier of exporting in Garut leather tannery industry. The result of this research is there are three factors that become the barrier to do export in Garut leather tannery industry, namely functional, international and governmental barriers. Meanwhile the result of descriptive analysis shows that Garut leather tannery industry perceive high cost of capital to finance exports, difficulties in organizing promotional activities abroad, and lack of financial resources to conduct market research in overseas markets as the barrier to do export activities. The findings suggest that the government should support both the knowledge and infrastructure regarding export for all the business owners in Garut leather tannery industry, meanwhile the business owners should also be active in searching for business opportunities in international market. For future studies, it was suggested to consider management’s entrepreneurship capabilities as a factor that can hinder exports.

Proposed Business Strategy for PT Aneka Tambang TBK for Market Development in Order to Increase Export of Ferronickel

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PT Aneka Tambang (ANTAM) Tbk is part of the SOE’s Holding Mining Industry which vertically integrated, export-oriented, diversified mining and metals company. ANTAM has two big commodities which are gold sectors and nickel sectors. Nickel based products consist of Nickel Ore, Ferronickel, Bauxite, and Alumina. Ferronickel is a high-grade product of nickel downstream which contains 20% – 25% of nickel and mostly consumed by stainless steel companies. ANTAM is the only company in Indonesia that can produce Ferronickel. In the nickel market, many companies produce the substitute product of Ferronickel which is Nickel Pig Iron (NPI). Ferronickel and NPI are serving the same market while NPI itself contain lower of nickel and cheaper than Ferronickel. Government of Indonesia supported the development of downstream industries in Indonesia. The growth of battery industries is escalating resulted high demand for it. Technology is currently improving the process to transform Ferronickel and NPI into Nickel Mattes (Ni Mattes) which used to be an intermediate component to produce electric vehicles (EV). Based on the demand of global market, there are many demands for Ferronickel supplies in the worldwide. However, the capacity exports of Ferronickel in ANTAM are still far behind. This study analyzes business problems using several tools to identify the external environment and internal environment of ANTAM. SWOT analysis is used to capture the strength, weakness, opportunity, and threat that affects the business of the company. The Root Cause Analysis is used to define problems that happened in ANTAM and needed to be solved. Data and information were obtained from various sources such as interviews with the internal of ANTAM, observation, and study from the literature. The study found that ANTAM has lower export sales caused by the limited market scope, lack of promotion, and no product development. To overcome the problems that faced by ANTAM, the author proposes a business strategy for ANTAM for market development to increase export of Ferronickel by using the Strategy Diamond Framework and Ansoff Matrix as the strategy that will be implemented in ANTAM. The stages in this strategy were concerned more with the issues and provide solutions to increase the export of Ferronickel. Therefore, ANTAM should focus on market development to reach the widen market and fulfill the demand of Ferronickel in the global market.

Developing Vietnamese Agricultural Exports to the United States

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The study aimed at analyzing the current status of Vietnam’s agricultural exports to the United States by focusing on some key agricultural products like coffee, vegetables, cashew, and rice. The Vietnamese export value of these items is relatively high, but in the period 2017-2020, export scale and value tend to decrease. Based on that study, the author has offered some solutions to develop Vietnam’s agricultural exports to the United States.