Indonesian Journal Economic Review (IJER)
It's a biannual refereed journal concerned with economic research and analysis in Indonesia and broader regional contexts. It provides a forum for academics, practitioners, and policy makers to explore issues and reflect on practices relating to economic development, policy, and theory. This journal is a peer-reviewed online journal dedicated to the publication of high-quality research focused on Indonesian economic issues and comparative economic studies. To submit your article to Indonesian Journal Economic Review (IJER), you can access the manuscript format from the author guidelines. → Download Template (English)
Divisi Riset, Lembaga Mitra Solusi Teknologi Informasi (L-MSTI)
The Influence of Financial Literacy and Digital Payment Use on Generation Z’s Consumptive Behavior: Evidence from Kopi Kenangan in Surabaya
Indonesia's financial literacy index has risen sharply, yet Generation Z—the largest user segment of digital financial services—still shows an uneven capacity to translate this progress into prudent spending, even as digital payment instruments such as QRIS and e-wallets increasingly reduce the psychological friction traditionally associated with spending cash. This study examines the effect of financial literacy and digital payment usage on the consumptive behavior of Generation Z users of the Kopi Kenangan application in Surabaya. Using a quantitative explanatory approach, data from 100 respondents obtained through purposive sampling were analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM). The results show that financial literacy has a significant positive effect on consumptive behavior, contrary to the negative effect initially hypothesized. This pattern suggests that financially literate individuals may overestimate their own capacity for self-control, an overconfidence effect that leaves them vulnerable to low-friction, gamified digital purchase triggers such as flash sales and tiered loyalty rewards. Digital payment usage, by contrast, shows a positive but statistically non-significant effect, indicating that payment convenience alone does not directly drive consumptive spending. Together, the two predictors explain only a small proportion of the variance in consumptive behavior, pointing to lifestyle, social-media influence, and self-control as more dominant factors warranting further study. These findings imply that digital platforms should consider responsible design features, such as spending-awareness nudges, rather than assuming that financial education alone will curb impulsive consumption among digitally native consumers.
Copyright (c) 2026 Alwiyah Alwiyah, Devinta Nur Arumsari https://creativecommons.org/licenses/by-nc-sa/4.0
The Effect of Instagram Content Quality of HL Outfit on Consumer Purchase Intention through Brand Image as a Mediating Variable
The rapid growth of digital marketing has made Instagram one of the most dominant channels for fashion brands to communicate with consumers, yet a large follower base does not automatically translate into a high engagement rate or purchase intention. This phenomenon is evident in the Instagram account of HL Outfit, a local Indonesian fashion brand with 292,000 followers whose engagement rate remains below the ideal standard despite consistent content uploads. While prior studies have largely examined the direct effect of social media content on purchase decisions, comparatively little attention has been paid to how brand image translates content quality into purchase intention for local fashion brands — a gap this study addresses. This study aims to examine the effect of Instagram content quality on consumer purchase intention, both directly and indirectly through brand image as a mediating variable. A quantitative approach was employed using Partial Least Square Structural Equation Modeling (PLS-SEM) with SmartPLS 3. Data were collected from 100 respondents selected through purposive sampling, consisting of personal Instagram account users who actively follow the HL Outfit account, using a five-point Likert-scale questionnaire distributed via Google Form. The results show that content quality has a positive and significant effect on purchase intention (β = 0.219; t = 3.017; p = 0.003) and on brand image (β = 0.498; t = 2.982; p = 0.003); brand image has a positive and significant effect on purchase intention (β = 0.444; t = 3.798; p = 0.000); and brand image partially mediates the effect of content quality on purchase intention (β = 0.221; t = 2.131; p = 0.034). The model explains 24.8% of the variance in brand image and 34.2% of the variance in purchase intention, indicating a weak-to-moderate predictive capability. These findings suggest that local fashion brands should pursue a two-track digital-marketing strategy: enhancing the informativeness, relevance, visual appeal, and interactivity of Instagram content, while deliberately curating brand-image cues — such as consistent visual identity and authentic product storytelling — since brand image functions as the primary conduit that converts content quality into purchase intention.
Copyright (c) 2026 Dewi Candrawati, Egan Evanzha Yudha Amriel https://creativecommons.org/licenses/by-nc-sa/4.0
The Influence of Business Capital, Financial Inclusion, and Intellectual Capital on MSME Performance (A Case Study of the Culinary Sector in Harjamukti District, Cirebon City)
Improving the performance of MSMEs is crucial for supporting economic growth and community welfare. This study aims to analyze the impact of business capital, financial inclusion, and intellectual capital on the performance of MSMEs in the culinary sector of Harjamukti District, Cirebon City. The study employs a quantitative approach using multiple linear regression analysis. The research population consists of 986 MSMEs, with a sample of 91 MSMEs determined using the Slovin formula. Data were collected via Likert-scale questionnaires. The results indicate that business capital and financial inclusion have a positive and significant effect on MSME performance, whereas intellectual capital does not have a significant effect. However, simultaneously, the three variables significantly influence MSME performance. These findings highlight the importance of strengthening business capital and financial inclusion to enhance MSME performance.
Copyright (c) 2026 Febiyanti Febiyanti, Rinni Indriyani, Muzayanah Muzayanah https://creativecommons.org/licenses/by-nc-sa/4.0
Implementation Of The Mobile Service Program For Electronic ID Card Issuance For Persons With Disabilities In Lhokseumawe City
The Mobile Service Program (Program Jemput Bola) represents an innovative public service initiative implemented by the Department of Population and Civil Registration of Lhokseumawe City to improve access to civil registration services for persons with disabilities. This study examines the implementation of this program for Electronic Identity Card (KTP-el) issuance and identifies the obstacles encountered. Utilizing a qualitative descriptive approach with case study design, data were collected through observation, in-depth interviews with nine purposively and accidentally selected informants, and documentation. Data validity was ensured through source and technique triangulation. Analysis followed Robert K. Yin's case study framework. The findings reveal that while the program has been implemented, it has not yet achieved optimal performance. Communication aspects remain inadequate, with socialization failing to reach all target groups and limited inter-agency coordination. Resources are constrained by insufficient human resources for field coverage, inadequate facilities (limited recording equipment and operational vehicles), and unstable internet connectivity. Disposition demonstrates strong commitment among implementers despite heavy workloads. Bureaucratic structure shows established procedures but suboptimal, inconsistent inter-agency coordination, with conflicting accounts between department and sub-district officials regarding coordination. Four categories of obstacles were identified: limited data on target beneficiaries, ineffective socialization and coordination, inadequate human resources, and insufficient supporting infrastructure. These constraints result in uneven service coverage, preventing full realization of the program's inclusive service objectives. Strengthening program implementation requires enhanced inter-agency coordination, expanded community outreach through village-level engagement, improved facilities, increased competent personnel, and consistent cross-sectoral collaboration.
Copyright (c) 2026 Aulia Putri Sania Nasution, Mauludi Mauludi, Lisa Iryani, Aiyub Aiyub, Arinanda Arinanda https://creativecommons.org/licenses/by-nc-sa/4.0
Implementation of AI-Based TikTok Content Marketing to Increase Sales: A Study of MSMEs X
The rapid growth of the global edutech industry has encouraged MSMEs to strengthen digital marketing strategies. X Edutech, an MSME specializing in artificial intelligence education, previously relied mainly on paid Facebook Ads and had not utilized TikTok as a marketing channel. This study aimed to analyze the initial marketing condition, implement an AI-assisted TikTok content strategy, and evaluate its associated marketing and sales outcomes. A qualitative project-based applied research approach was employed using Pulizzi's (2014) six-stage content marketing framework. Data were collected through observation, semi-structured interviews, documentation, literature review, and open-ended questionnaires. SWOT analysis and the Value Proposition Canvas were used to identify marketing opportunities. The implementation involved developing a content strategy, establishing a TikTok account, creating a content calendar, and publishing 36 AI-assisted content pieces over two months. The implementation generated 538 followers, 32,877 views, 84 leads, 29 inquiries, and 55 sales attributed to TikTok. Transactions increased from 144 to 207, while revenue increased by 43.75%. These findings indicate an association between the implementation and improved marketing and sales indicators. However, the changes cannot be attributed solely to AI-assisted TikTok marketing because Facebook Ads, TikTok Ads, and other activities continued during the project.
Copyright (c) 2026 Athhar Malika Yudistira Prasetyo, Ratih Purbasari, Mas Rasmini https://creativecommons.org/licenses/by-nc-sa/4.0
The Influence of Social Media Marketing on Blind Box Purchase Interest among Generation Z at MINISO Suzuya, Lhokseumawe City
This study aims to determine the effect of social media marketing on purchase interest in blind box products among Generation Z at MINISO Suzuya, Lhokseumawe City. The study used a quantitative approach with a survey method and a simple linear regression technique. The sample consisted of 100 respondents, determined using the Lemeshow formula (95% confidence level, 10% margin of error) and drawn through non-probability purposive sampling. Data were collected through questionnaires using a five-point Likert scale, direct observation, and documentation, and analyzed with SPSS version 25 after validity, reliability, and classical assumption testing. The results show that social media marketing has a positive and significant effect on blind box purchase interest, indicated by a regression equation of Y = 2.717 + 0.752X, a t-count of 6.782 greater than the t-table of 1.985 with a significance value of 0.000 (p < 0.05), so that the alternative hypothesis is accepted. The correlation coefficient (R) of 0.565 indicates a moderate relationship, and the coefficient of determination (R²) of 0.319 shows that social media marketing explains 31.9% of the variation in purchase interest, while the remaining 68.1% is explained by variables outside this study, such as price, packaging design, word of mouth, and consumer psychological factors. TikTok was the platform most used by respondents (81%) to view blind box promotional content. These findings indicate that social media marketing activity is associated with higher purchase interest in blind box products among Generation Z, and that TikTok is the dominant channel through which respondents accessed such content in this sample.
Copyright (c) 2026 Rizki Aujan Fahri, Sufi Sufi, Nanda Ameliany, Cut Sukmawati, Sutriani Sutriani https://creativecommons.org/licenses/by-nc-sa/4.0
Waste Management Governance In Muara Satu District, Lhokseumawe City
Waste management remains a critical environmental challenge in Indonesian urban areas, with governance failures contributing to persistent issues including illegal dumping and inadequate infrastructure. This study examines waste management governance in Muara Satu District, Lhokseumawe City, analyzing implementation through five principles of good governance: participation, rule of law, transparency, responsiveness, and accountability, while identifying obstacles to effective management. A qualitative descriptive approach was employed, utilizing observation, in-depth interviews with eight purposively and accidentally selected informants, and documentation. Data analysis followed the Miles and Huberman interactive model, with data validity ensured through source and technique triangulation. The findings reveal that waste management governance has not achieved optimal implementation. Community participation remains transactional and limited to economic incentives. Rule of law enforcement is weak despite existing Qanun Number 9 of 2015, with inconsistent sanctions and persistent illegal waste sites. Transparency is partial, with program information available but budget information undisclosed. Responsiveness shows mixed results: while the Environmental Agency has developed innovative processing technologies, operational constraints limit timely service delivery. Accountability operates predominantly through vertical mechanisms, with limited horizontal accountability to communities. Two categories of obstacles were identified: structural constraints including inadequate fleet capacity (39 vehicles serving 133 tons daily waste), damaged equipment, limited storage sites, and insufficient human resources; and cultural constraints including low community awareness, limited participation, and entrenched habits. These obstacles are mutually reinforcing, creating a feedback loop that perpetuates governance weaknesses. Strengthening governance requires simultaneous investment in infrastructure, consistent enforcement, comprehensive transparency, proactive responsiveness, and systematic accountability mechanisms.
Copyright (c) 2026 Maya Rahma Yanti Siregar, Akmal Akmal, Risna Dewi, Sufi Sufi, Asrul Fahmi https://creativecommons.org/licenses/by-nc-sa/4.0
The Effect Of Pricing Strategy On Customer Satisfaction In Conditional Buffet Business Kitchen Bar Bar By Kak Mir East Aceh
Competition in the culinary business requires business actors to implement appropriate pricing strategies to increase customer satisfaction. This study aims to determine the effect of pricing strategies on customer satisfaction at the conditional buffet business Dapur Bar Bar by Kak Mir, East Aceh. Conditional buffet businesses are culinary businesses that implement a buffet system with certain conditions, such as price options based on presentation methods and limitations in choosing menus. This study uses a quantitative approach with a descriptive type. The population in this study were customers of Dapur Bar Bar by Kak Mir with a sample of 100 respondents obtained using a purposive sampling technique. Data were collected through a questionnaire with a Likert scale and analyzed using the SPSS program version 25. The results showed that pricing strategies have a positive and significant effect on customer satisfaction. This is evidenced by the calculated t value of 8.848> t table 1.984 and a significance value of 0.000 (<0.05). Meanwhile, the coefficient of determination (R²) value of 0.444 indicates that pricing strategies are able to explain 44.4% of customer satisfaction, while the remaining 55.6% is influenced by other factors outside the study. These findings indicate that the application of affordable prices, in accordance with product quality, the benefits obtained, and competitiveness can support the creation of customer satisfaction in conditional buffet businesses.
Copyright (c) 2026 Dilla Nazatul Amira, Lisa Iryani, Maisyura Maisyura, Sufi Sufi, Teuku Zulkarnaen https://creativecommons.org/licenses/by-nc-sa/4.0
The Effect Of Brand Equity On Purchasing Decisions (Study at PT. X in 2025)
The increasing competition in the gold jewelry industry encourages companies to establish strong brand equity to influence consumers’ purchasing decisions. PT. X has implemented various brand equity enhancement strategies through improving brand awareness, brand association, perceived quality, and brand loyalty. Therefore, it is important to examine the extent to which these factors are associated with consumers’ purchasing decisions. This study aims to analyze the effect of brand equity on the purchasing decisions of PT. X products in 2025. This research employed a quantitative cross-sectional survey design. Primary data were collected through a Likert-scale questionnaire distributed to 100 respondents who had purchased PT. X products in 2025 using a purposive sampling technique. The data were analyzed using descriptive statistics, classical assumption tests, simple linear regression, the coefficient of determination, and the t-test. The results indicate that both brand equity and purchasing decisions are categorized as high. Furthermore, brand equity has a positive and statistically significant relationship with all dimensions of purchasing decisions (brand choice, distribution channel selection, purchase quantity, purchase timing, and payment method selection), with coefficients of determination (R²) ranging from 10.9% to 21.4% (the highest variance explained being payment method selection at 21.4%). These findings suggest that brand equity plays a meaningful role in supporting consumers’ purchasing decisions. Accordingly, the company is recommended to continuously strengthen its brand equity to maintain competitiveness and support sustainable purchasing behavior.
Copyright (c) 2026 Nathania Rendyasti Cahyaningtyas, Anang Muftiadi, Zaenal Muttaqin https://creativecommons.org/licenses/by-nc-sa/4.0
Analysis of Clean Water Supply Service Quality at PDAM Tirta Tawar in Kemili Village, Central Aceh Regency
Clean water is an essential public need, and its provision at the local level is carried out by the Regional Water Supply Company (PDAM). In Kemili Village, Bebesen Subdistrict, Central Aceh Regency, customers of PDAM Tirta Tawar frequently experience service problems, including prolonged water outages, poor water quality, pipe blockages caused by sediment, and slow responses to customer complaints. Of the 268 registered customers in the village, only 90 remain active, while 178 are inactive, despite the overall growth of PDAM customers in Central Aceh Regency from 8,476 in 2020 to 9,035 in 2024. This study aims to analyze the quality of PDAM Tirta Tawar's clean water supply services in Kemili Village and identify the barriers affecting service delivery. A descriptive qualitative approach was employed, with data collected through in-depth interviews, observation, and documentation involving twelve informants from PDAM, village government, community leaders, NGOs, academics, and customers. The findings reveal that the quality of service has not met community expectations in terms of physical evidence, reliability, responsiveness, and empathy. Major problems include aging pipeline infrastructure installed in the late 1980s, sediment accumulation and pipe corrosion, an unscheduled rotational water distribution system, a shortage of field technicians, and ineffective communication with customers. The barriers identified consist of technical constraints, such as damaged pipelines and inadequate filtration; human resource limitations, including insufficient training and lack of written procedures; and institutional issues, such as weak coordination, limited infrastructure funding, and ineffective oversight mechanisms. The study recommends establishing a publicly accessible water distribution schedule, developing a digital complaint system, increasing transparency in service fees, and allocating government funding for pipeline replacement and sustainable PDAM oversight.
Copyright (c) 2026 Dayana Fitri, Mauludi Mauludi, Teuku Alfiady, M. Akmal, Syamsyuddin Syamsyuddin https://creativecommons.org/licenses/by-nc-sa/4.0
The Impact of Zakat, Infak, and Sedekah Distribution, Gross Regional Domestic Product, Open Unemployment Rate, and Gini Index on Poverty in 34 Provinces of Indonesia from 2015 to 2025
Poverty is a persistent multidimensional development issue in Indonesia. This study aims to analyze the impact of the distribution of Zakat, Infak, and Sedekah (ZIS), Gross Regional Domestic Product (GRDP), Open Unemployment Rate (OUR), and Gini Index on poverty in 34 provinces of Indonesia during the period of 2015–2025. Using secondary panel data (N = 338), all independent variables were transformed with a one-period lag (t-1) to capture the delayed effects of policies and to reduce (but not eliminate) potential endogeneity. Based on the testing results, the Fixed Effect Model (FEM) with a Robust Variance Covariance Estimator (Robust VCE) approach was chosen to address violations of classical assumptions. The findings indicate that the previous period's ZIS has a positive and significant effect on the number of poor people (coefficient 0.238; p = 0.000), while GRDP, OUR, and the Gini Index do not have a significant effect. These results should not be interpreted as evidence that ZIS causes poverty, but rather as an association reflecting the targeting effect (funds following the poverty map), the dominance of consumptive distribution patterns, and the small scale of ZIS collection compared to the magnitude of the problem. With these characteristics, and based on supporting data and previous research, ZIS is interpreted as a palliative instrument that alleviates the depth and severity of poverty but has not yet succeeded in lifting beneficiaries above the poverty line, resulting in no decrease in the number of poor people.
Copyright (c) 2026 Rifqy Bayu Laksana, Laila Masruro Pimada https://creativecommons.org/licenses/by-nc-sa/4.0
Operational Interaction Framework for Enhancing Public Service Performance in Integrated Urban Transportation Systems
The consistent implementation of public transportation services poses a significant governance challenge in rapidly growing metropolitan areas. Jakarta's integrated public transportation system, JakLingko, is expected to provide accessible, reliable, and responsive services to passengers. This study analyzes the implementation of public services on JakLingko Route 88 (Ancol Barat–Tanjung Priok Terminal) by proposing an operational mechanism that includes service provision, information delivery, and facility management, illustrating how policy objectives are translated into daily operations. While prior research has focused on service quality, passenger satisfaction, and collaborative governance, there has been limited exploration of the mechanisms underlying public service implementation in practice. Most studies assess service outcomes or governance structures but lack insight into how implementation occurs through interactions among operational actors and communication processes. This highlights the need for a process-oriented analysis of public service implementation at the operational level. Using a qualitative descriptive approach, data were collected through observations, in-depth interviews, and documentation from one operational manager, two drivers, and two passengers selected via purposive and snowball sampling. The analysis followed the interactive model of Miles, Huberman, and Saldaña, involving data condensation, display, and conclusion drawing. Findings reveal that effective public service implementation relies on the interaction between operational coordination, adaptive communication, and supporting facilities in response to dynamic urban traffic conditions. This study enriches the implementation perspective of Hill and Hupe and emphasizes the importance of adaptive coordination, integrated digital systems, and preventive facility management to enhance urban public transportation resilience.
Copyright (c) 2026 Agung Syukroni Pinandita, Onny Fitriana Sitorus, Camelia Safitri https://creativecommons.org/licenses/by-nc-sa/4.0
A Review of Employee Retention Strategies in Travel Companies
Employee retention presents a significant challenge within human resource management, particularly in the travel industry, characterized by intense competition in the labor market, ongoing digital transformation, and shifting employee expectations. This study aims to analyze and synthesize the existing literature on strategies for employee retention by evaluating the roles of training, reward systems, and work-life balance, as well as their interrelations with work motivation and organizational commitment. A qualitative approach was adopted utilizing a Systematic Literature Review (SLR) methodology. Relevant articles published between 2019 and 2025 were identified, screened, evaluated, and synthesized in accordance with PRISMA guidelines. The findings reveal that competency-based training, equitable reward systems, and effective work-life balance policies are essential strategic practices that enhance employee motivation, bolster organizational commitment, and improve retention rates. Moreover, work motivation and organizational commitment act as critical psychological mechanisms elucidating how strategic human resource management practices influence employees' decisions to remain with an organization. This study proposes a conceptual model that integrates the Resource-Based View (RBV), Strategic Human Resource Management (SHRM), and Social Exchange Theory (SET) to offer a more comprehensive understanding of employee retention within the travel industry. The findings contribute to the advancement of human resource management literature and provide practical insights for organizations aiming to design sustainable employee retention strategies that enhance competitiveness and long-term performance.
Copyright (c) 2026 Bambang Gunarto, Alfath Sandjaya, Willy Arafah, Wahyuningsih Santosa, Agustinus Sri Wahyudi https://creativecommons.org/licenses/by-nc-sa/4.0
The Effect of Inflation and Interest Rate Spread on Real Sector Investment in Banda Aceh City: An ARDL Approach
Real sector investment plays a crucial role in generating employment, expanding production capacity, and strengthening regional economic structures. However, the impact of monetary indicators on investment can vary across regions, influenced by local business structures and financing characteristics. Banda Aceh City has an economic structure primarily dominated by trade, services, and small and medium enterprises, which may lead to an investment response to inflation and interest rate spread that does not align with national trends. This study investigates the effect of inflation and interest rate spread on real sector investment in Banda Aceh City during the 2010–2024 period. A quantitative approach is employed, utilizing 15 annual observations analyzed through the Autoregressive Distributed Lag (ARDL) model. The estimation results of ARDL (1,0,1) indicate that real sector investment exhibits a strong dependence on the value of investment from the previous period. Inflation and interest rate spread do not have a statistically significant effect, either in the short term or the long term. The F-Bounds results reveal the presence of a long-term relationship among the model's components. However, the adjustment coefficient is positive and not significant, indicating that the adjutment mechanism toward long-term equilibrium cannot be statistically confirmed. These findings imply that the variation in real sector investment in Banda Aceh City may also be influenced by structural and non-monetary factors not captured in the model, such as local demand conditions, access to financing, government spending, ease of licensing, and the overall business climate. Consequently, regional investment enhancement policies should focus more on improving the business climate, expanding access to financing, and supporting business actors, while maintaining inflation stability and banking intermediation efficiency as essential conditions. Future research is recommended to adopt a longer observation period and incorporate additional regional economic variables.
Copyright (c) 2026 Ulin Nur Arifah, Lidyana Dinda https://creativecommons.org/licenses/by-nc-sa/4.0
The Effect of Government Information Technology Utilization (E-Government), Human Resource Capacity, and the Government Internal Control System (SPIP) on the Accountability of Regional Financial Management
Regional financial management accountability is a fundamental principle of good governance. Despite the Central Bengkulu Regency Government consistently receiving an Unqualified Opinion (WTP) on its financial statements, audit findings from the Audit Board of the Republic of Indonesia (BPK) continue to reveal weaknesses in financial management and internal control. This situation indicates that a favorable audit opinion does not necessarily reflect optimal financial accountability, underscoring the need to examine the factors influencing regional financial management accountability. This study aims to analyze the effects of government information technology utilization (e-government), human resource capacity, and the Government Internal Control System (SPIP) on regional financial management accountability in the Regional Apparatus Work Units (SKPD) of Central Bengkulu Regency. A quantitative approach was employed using a census (total sampling) technique involving all 40 SKPD, represented by 40 Financial Management Officers (PPK-SKPD). Data were collected through questionnaires and analyzed using multiple linear regression with IBM SPSS Statistics. The results indicate that human resource capacity and the Government Internal Control System (SPIP) have a positive and significant effect on regional financial management accountability, whereas the utilization of e-government has no significant effect. These findings provide empirical support for Stewardship Theory, emphasizing that competent human resources and effective internal control systems play a more substantial role in enhancing financial accountability than technology utilization alone. The findings also imply that local governments should prioritize strengthening employee competence and improving the effectiveness of SPIP while optimizing the implementation of e-government to achieve better regional financial management accountability.
Government Internal Control System (SPIP)
Regional Financial Management Accountability
Copyright (c) 2026 Indarsi, Baihaqi, E. Novita Sari https://creativecommons.org/licenses/by-nc-sa/4.0
AI-Driven Personalization and Purchase Intention: The Mediating Role of Algorithmic Fairness Perception
Artificial intelligence (AI)-driven personalization has revolutionized digital commerce by enabling platforms to provide highly tailored recommendations, customized content, and adaptive shopping experiences. Although prior research has established that AI personalization positively influences consumer responses through dimensions such as trust, usefulness, and satisfaction, there has been limited exploration of how consumers assess the fairness of algorithmic decision-making prior to forming purchase intentions. Furthermore, few studies have integrated AI-driven personalization, brand experience, perceived value, and social proof into a cohesive framework that elucidates consumer behavior through the lens of algorithmic fairness perception. To address this gap, the present study examines the mediating role of algorithmic fairness perception in elucidating how AI-enabled marketing stimuli affect purchase intention. A quantitative cross-sectional survey was conducted involving 400 consumers with experience using AI-enabled e-commerce platforms, and the proposed model was analyzed utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that AI-driven personalization, brand experience, perceived value, and social proof significantly enhance algorithmic fairness perception. Additionally, AI-driven personalization, brand experience, perceived value, and algorithmic fairness perception substantially increase purchase intention, while social proof does not exhibit a significant direct effect. Nevertheless, algorithmic fairness perception serves as a significant mediator in the relationships between all antecedent variables and purchase intention. The originality of this study lies in positioning algorithmic fairness perception as the central psychological mechanism that translates AI-enabled marketing strategies into consumer purchase intention within a Stimulus–Organism–Response (SOR) framework. These findings contribute to the growing body of literature on AI marketing by shifting the analytical focus from technological effectiveness to ethical algorithmic evaluation, offering practical guidance for the development of transparent, responsible, and consumer-oriented AI systems that promote sustainable customer relationships.
Copyright (c) 2026 Roby Nur Akbar, Kamaluddin, Nirwana, Adi Suprayitno https://creativecommons.org/licenses/by-nc-sa/4.0
The UTAUT Model in the Continuance Intention of E-Wallets (QRIS) by MSMEs: With the Moderating Effect of Security Risk
The post-COVID-19 shift toward a cashless economy in Indonesia has accelerated MSME adoption of digital wallets and QRIS; however, sustaining long-term technology retention remains challenging amid rising cyber threats. Integrating the UTAUT and ECM frameworks, this study examines how performance expectancy, effort expectancy, social influence, and facilitating conditions affect QRIS continuance intention among MSMEs, with perceived security risk as a moderator. This quantitative study collected survey data from 134 active MSME operators in Bengkulu City, Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results reveal that all four UTAUT constructs significantly and positively impact QRIS continuance intention. Crucially, perceived security risk acts as a robust negative moderator, systematically weakening the positive effects of these determinants on long-term retention. Theoretically, this research extends the UTAUT model into a post-adoption business context. Practically, it underscores that sustaining digital payment ecosystems requires a collaborative approach: platform providers must enhance security, regulators must enforce consumer protection, and merchants must elevate digital literacy.
Copyright (c) 2026 Tri Yulita Sari, Baihaqi, Irwansyah https://creativecommons.org/licenses/by-nc-sa/4.0
The Effect of Internal Control, Organizational Commitment, and Utilization of Information Technology on the Quality of Financial Statements with Organizational Culture as a Moderating Variable
This study examines the effects of internal control, organizational commitment, and information technology (IT) utilization on the quality of financial statements, with organizational culture as a moderating variable. Grounded in stewardship and task-technology fit theories, survey data were collected from 120 financial personnel across 40 Regional Work Units (SKPD) in Central Bengkulu Regency and analyzed using PLS-SEM. The results indicate that internal control (β=0.231, p=0.004), organizational commitment (β=0.272, p=0.004), and IT utilization (β=0.320, p=0.001) significantly and positively affect the quality of financial statements. Furthermore, organizational culture acts as a pure moderator that significantly strengthens the impact of internal control (β=0.242, p=0.012), organizational commitment (β=0.231, p=0.003), and IT utilization (β=0.315, p=0.002). The model accounts for 88.9% of the variance in financial statement quality (R²=0.889). These findings imply that technical systems and behavioral factors produce optimal reporting outcomes when embedded within an accountability-driven institutional culture.
Copyright (c) 2026 Fariz Akbar, Fachruzzaman, Lismawati https://creativecommons.org/licenses/by-nc-sa/4.0
The Impact of Performance Reporting Pressure and Information Asymmetry on Earnings Quality
Earnings quality serves as a crucial indicator of the credibility of financial reporting, significantly influencing investors' decision-making, corporate valuation, and capital market efficiency. Nevertheless, the escalating pressure to meet financial performance targets, coupled with persistent information asymmetry between managers and external stakeholders, may undermine the reliability of reported earnings. This study aims to investigate the effects of performance reporting pressure and information asymmetry on earnings quality among companies listed on the Indonesia Stock Exchange (IDX). Grounded in Agency Theory and Signaling Theory, the research employs a quantitative explanatory design utilizing secondary data sourced from audited annual reports and financial statements. The sample comprises non-financial firms selected through purposive sampling during the observation period from 2021 to 2025. Panel data regression analysis is utilized to evaluate the proposed hypotheses following the necessary diagnostic and model selection tests. This research is anticipated to provide empirical evidence regarding the extent to which organizational reporting pressure and information asymmetry affect the quality of corporate earnings in an emerging market context. The findings are expected to enrich the accounting literature by enhancing the understanding of earnings quality determinants and offering practical implications for regulators, investors, auditors, and corporate managers in improving financial reporting transparency and mitigating opportunistic reporting behavior.
Copyright (c) 2026 Bintang Alexander Hermawan Bintang, Aprih Santoso, Sri Hastutik, Rudianto Hermawan, Dipa Teruna Awaludin https://creativecommons.org/licenses/by-nc-sa/4.0
Determinants of Post-Training Performance at PT Sinergi Unggul Berdikari: The Impact of Competence, Motivation, and Work Discipline
This study aims to analyze the effects of competence, motivation, and work discipline on the performance of post-training participants at PT Sinergi Unggul Berdikari (Inera Learning Center). A quantitative associative approach was employed using a survey method. The sampling technique applied was saturated sampling, which included 60 alumni respondents from the technical guidance program conducted between July and December 2025. Primary data were collected through questionnaires and analyzed using Multiple Linear Regression techniques with statistical software. The statistical results indicate that, individually, motivation has a positive and significant impact on performance, with a t-count exceeding the t-table value (2.256 > 2.003). Work discipline also demonstrates a significant effect, emerging as the most dominant variable, with a t-count greater than the t-table value (3.549 > 2.003). Conversely, competence does not show a significant individual effect on performance (t-count -0.139 < t-table 2.003), which can be attributed to structural barriers stemming from bureaucratic inertia within the respondents' home institutions. Collectively, competence, motivation, and work discipline significantly influence performance, contributing 32.5% to the variance. This underscores the necessity for institutions to design training programs that enhance intrinsic motivation and to foster an innovative environment supported by institutional leaders, enabling alumni to optimally apply their technical competencies for superior performance.
Copyright (c) 2026 Sigit Perdana Kusuma, Yuni Pratikno, Kemal Taufik, Iwan Kurniawan https://creativecommons.org/licenses/by-nc-sa/4.0
The Effect of Interest Rates, Inflation, and Money Supply on Economic Growth through Exchange Rate Transmission in Indonesia
Understanding monetary transmission mechanisms is critical for emerging open economies navigating external volatility. This study investigates the direct and indirect impacts of interest rates, inflation, and money supply on Indonesia's economic growth from 2014 to 2024, examining the mediating role of the Rupiah-to-USD exchange rate. Utilizing a quantitative explanatory design with annual time-series data from Bank Indonesia and BPS, the research applies Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4. Empirical results demonstrate a high coefficient of determination for the exchange rate (R² = 0.939) and economic growth (R² = 0.359). Findings reveal that interest rates exert a significant direct effect on growth (coef = 0.417, p = 0.003) but have an insignificant impact on the exchange rate. Inflation positively influences growth (coef = 0.650, p = 0.001) while negatively affecting the exchange rate (coef = -0.313, p = 0.007). The money supply significantly impacts both exchange rates (coef = 0.791, p = 0.000) and economic growth (coef = -0.390, p = 0.025). Crucially, the exchange rate acts as a potent mediating channel (coef = 0.894, p = 0.000), transmitting shocks to real output. The findings underscore that monetary policy must integrate exchange rate stability and liquidity management alongside interest rate adjustments.
Copyright (c) 2026 Anugrah Tri Saputra, Sri Astuty, Irwandi, Regina, Citra Ayni Kamaruddin https://creativecommons.org/licenses/by-nc-sa/4.0
Digital Readiness and Sustainable Digital Finance Adoption among MSMEs in Mebidang: The Role of Business Innovation Orientation
Digital readiness determines the ability of micro, small, and medium enterprises (MSMEs) to convert access to digital financial services into sustained business value. This study analyzes the effects of digital literacy, digital infrastructure readiness, and security and privacy awareness on sustainable digital finance adoption (SDFA), as well as the subsequent impact of SDFA on business innovation orientation (BIO) among MSMEs in Mebidang, North Sumatra. Survey data from 320 MSME owners or managers in Medan, Binjai, and Deli Serdang were analyzed using partial least squares structural equation modeling with 5,000 bootstrap subsamples. The results indicate that digital literacy (β = 0.312, p < 0.001), digital infrastructure readiness (β = 0.374, p < 0.001), and security and privacy awareness (β = 0.246, p < 0.001) positively influence SDFA. Digital infrastructure readiness is identified as the strongest antecedent. SDFA significantly impacts BIO (β = 0.681, p < 0.001). The model explains 64.2% of the variance in SDFA and 46.4% of the variance in BIO. This study distinguishes sustainable adoption from sporadic digital finance usage by emphasizing continuity, efficiency, transparency, trust, recordkeeping, and responsible financial behavior. The findings suggest that regional MSME programs should integrate infrastructure support, practical digital literacy, cybersecurity capabilities, and the integration of digital finance with bookkeeping and business decision-making.
Copyright (c) 2026 Anggi Pratiwi Sitorus, Salman Munthe, Muammar Rinaldi, Rossy Pratiwy Sihombing https://creativecommons.org/licenses/by-nc-sa/4.0
Digital Financial Readiness and Sustainable Economic Resilience of MSMEs: The Mediating Role of Islamic Sustainable Business Practices (ISBP) in Medan City
Digital financial capability has become increasingly vital for the sustainability of micro, small, and medium enterprises (MSMEs). However, the contribution of this capability to resilience may depend on the governance and utilization of digital resources. This study investigates the impact of Digital Financial Readiness (DFR) on Sustainable Economic Resilience (SER), both directly and indirectly through Islamic Sustainable Business Practices (ISBP), among MSMEs in Medan City. A quantitative survey was conducted involving 320 MSME owners and managers selected through purposive sampling. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with 5,000 bootstrap subsamples. The results indicate that DFR positively influences ISBP (β = 0.612, p < 0.001) and SER (β = 0.287, p < 0.001), while ISBP also has a positive effect on SER (β = 0.498, p < 0.001). Furthermore, ISBP significantly mediates the relationship between DFR and SER (indirect effect β = 0.305, p < 0.001), suggesting partial mediation. The model accounts for 59.6% of the variance in SER and demonstrates predictive relevance. These findings suggest that digital financial readiness enhances MSME resilience not only through improved financial and operational capabilities but also through Sharia-compliant, ethical, socially responsible, and environmentally sustainable business practices. The study offers context-specific implications for local government, financial institutions, and MSME development agencies in Medan City to integrate digital financial capacity building with Islamic sustainability-oriented business support.
Copyright (c) 2026 Salman Munthe, Anggi Pratiwi Sitorus, Shintami Oktavia, Loranty Folia Simanjuntak https://creativecommons.org/licenses/by-nc-sa/4.0
Analysis of the Financial Performance of the Aceh Besar Regency Government (2019–2024) Based on Local Government Financial Ratios
This study aims to analyze the financial performance of the Aceh Besar Regency Government for the period 2019–2024 based on local government financial ratios. The research employs a descriptive quantitative method using secondary data in the form of the Realization Report of the Government Budget (LRA) of Aceh Besar Regency, which was obtained through documentation techniques. The analysis utilizes ratios of independence, effectiveness, efficiency, growth, and activity. The research results indicate that the independence ratio is in the very low category, the effectiveness ratio is classified as sufficiently effective, the efficiency ratio falls into the inefficient category, the growth ratio shows fluctuating conditions, and the activity ratio indicates that the allocation of local spending is still dominated by operational expenditures compared to capital expenditures. Therefore, the financial performance of the Aceh Besar Regency Government during the 2019–2024 period is not optimal, particularly in enhancing fiscal independence, budget management efficiency, and balanced allocation of local spending.
Copyright (c) 2026 Fairus Athirah, Agustina https://creativecommons.org/licenses/by-nc-sa/4.0
Job Satisfaction as a Mediating of ShopeeFood Driver Performance in Semarang
In 2024, ShopeeFood recorded a transaction value of IDR 16 trillion in Indonesia, compared to IDR 31.1 trillion for GoFood and IDR 41.8 trillion for GrabFood, indicating the necessity for enhancing driver performance to strengthen service competitiveness. This study aims to analyze the impact of work flexibility, work-life balance, and compensation on the performance of ShopeeFood drivers in Semarang City, with job satisfaction serving as a mediating variable. A quantitative approach was employed, utilizing a sample of 105 drivers selected through purposive sampling, and analyzed using SmartPLS 4. The findings reveal that work flexibility does not have a direct effect on performance; however, it positively influences job satisfaction and mediates performance improvement. Work-life balance exerts a direct positive effect on performance but does not significantly affect job satisfaction. Compensation shows a significant positive impact on both job satisfaction and performance. Furthermore, job satisfaction significantly enhances performance, thereby acting as a mediator in the relationship between work flexibility and compensation with performance. These findings offer practical implications for ShopeeFood management in designing more effective work flexibility and compensation policies to improve drivers' job satisfaction and performance. Academically, this study contributes to the literature on the role of job satisfaction as a mediating variable in enhancing driver performance within the platform-based economy.
Copyright (c) 2026 Noor Abthal Muqaffi, Tito Aditya Perdana, Artha Febriana, Masitha Fahmi Wardhani https://creativecommons.org/licenses/by-nc-sa/4.0
Strategic Management Planning For The Digitalization Of The Sp2d Process At Pt Bank Sumut, Lubuk Pakam Branch
Digital transformation in regional financial governance is a fundamental necessity to enhance efficiency, accountability, and transparency. However, the issuance process of the Surat Perintah Pencairan Dana (SP2D) at PT Bank Sumut, Lubuk Pakam Branch, still relies heavily on manual and semi-digital procedures, leading to delays, administrative errors, and limited real-time monitoring capabilities. This study aims to design a strategic management plan for the digitalization of the SP2D process through the alignment of business strategy, technological infrastructure, and organizational readiness to support the financial governance of the Deli Serdang Regency Government. A qualitative case study approach was employed, conducting in-depth interviews with Bank Sumut employees, BPKAD officials, and operational staff; direct observation of the SP2D workflow; and document analysis of SOPs, transaction data, and related systems. The purposive sampling technique focused on individuals directly involved in the SP2D processing cycle. Data were analyzed using thematic analysis, complemented by Root Cause Analysis (fishbone diagram) to map barriers across human, process, technology, and environmental dimensions. The Strategic Alignment Model was utilized to identify gaps between business strategy and IT strategy. The study identified four main root problems: low digital competence among employees, misalignment of SOPs between the bank and BPKAD, the absence of system integration between SIPD/SIMDA and Bank Sumut’s core banking system, and cultural resistance toward digitalization. The proposed SP2D digitalization model includes: (1) two-way integration between SIPD and the core banking system; (2) the implementation of a maker–checker–realiser mechanism; (3) a real-time monitoring dashboard; (4) strengthened IT infrastructure; and (5) continuous development of digital competencies. The implementation of this model is expected to accelerate processing time, enhance data accuracy, minimize administrative errors, and strengthen transparency for stakeholders. This study offers a theoretical contribution to the digitalization of regional financial services and a practical strategic model that can be adopted by Bank Sumut and other regional development banks to modernize SP2D services and improve inter-agency integration in line with e-government standards.
Copyright (c) 2026 Augina Amelia Putri, Endang Sulistya Rini, Beby Karina Fawzeea Sembiring https://creativecommons.org/licenses/by-nc-sa/4.0
The Influence of Corporate Governance on The Quality of Financial Reports In Banking Companies Listed on The Indonesia Stock Exchange (IDX) For The Period 2021-2024
This study aims to analyze the effect of Corporate Governance proxied by Transparency, Accountability, and Independence-on Financial Statement Quality. In this study, financial statement quality is measured using timeliness. Meanwhile, the proxies for the independent variables include Transparency, measured by the disclosure index; Accountability, measured by the frequency of audit committee meetings; and Independence, measured by the proportion of inindependent commissioners. The population for this study consists of alla banking companies listed on the Indonesia Stock Exchange (IDX) during the 2021-2024 period. Sampling was conducted using purposive sampling, resulting in 22 banking companies that met the study criteria. The data analysis technique used was panel data regression analysis with the assistance of EViews software. The results show that Accountability has a positive and significant effect on Financial Statement Quality, while Transparency and Independence do not have a significant effect on Financial Statement Quality.
Copyright (c) 2026 Imelda Fisianca Lubis, Halomoan S. Sihombing, Mei Hotma Mariati Munte https://creativecommons.org/licenses/by-nc-sa/4.0
Accrual-Based Earnings Management under External Pressure: Evidence from FAST and PZZA Using the Modified Jones Model
This observe objectives to research warning signs of accrual-primarily based profits management at PT fast meals Indonesia Tbk (rapid) and PT Sarimelati Kencana Tbk (PZZA) all through the 2020–2024 length, while both businesses confronted outside pressures within the shape of the COVID-19 pandemic and consumer boycott sentiment. This examine employs a quantitative method the usage of secondary facts inside the form of the organizations’ annual monetary statements for the 2020–2024 duration. profits control turned into measured using the changed Jones model by way of calculating general accruals, non-discretionary accruals, and discretionary accruals. The consequences suggest that each groups skilled a discrepancy among internet earnings and running cash go with the flow, as meditated in terrible general accruals throughout the observation period. notwithstanding facing exceedingly similar outside pressures, fast constantly exhibited high quality discretionary accruals starting from 0.3296 to 0.3416 (suggest ±0.338), while PZZA constantly exhibited bad discretionary accruals starting from -0.3742 to -0.3209 (mean ±-0.343). these findings indicate that speedy tended to interact in income-growing accruals, even as PZZA tended to have interaction in profits-decreasing accruals all through the remark period. moreover, the results display that even though both groups faced tremendously comparable outside pressures, their responses in terms of discretionary accruals did not comply with a uniform sample. The response to outside pressures thru discretionary accruals became extra stimulated by using business enterprise characteristics and the particular situations faced by way of each enterprise. additionally, the modified Jones model used on this take a look at served as an indicative device for figuring out discretionary accruals.
Accrual-Primarily Based Earnings Control
Copyright (c) 2026 Maya Ismayanti, Ali Jufri, Ernanto Ernanto https://creativecommons.org/licenses/by-nc-sa/4.0
False Recovery in Financial Distress Prediction: Evidence from Altman Z″-Score EMS at PT Supra Boga Lestari Tbk 2022-2025
Financial distress prediction models remain vulnerable to misclassification when firms report significant non-recurring income that obscures deteriorating operational fundamentals. In order to determine whether a 2024 improvement in the Altman Z-Score Emerging Market Scoring (EMS) signal truly reflects operational recovery or is distorted by transitory income, this study examines a false recovery phenomenon in PT Supra Boga Lestari Tbk (RANC), an Indonesian premium retailer undergoing digital transformation. The study calculates annual Z-Score values and does a what-if restatement analysis using audited financial data from the Indonesia Stock Exchange covering 2022–2025 using a quantitative descriptive single-case design. The findings verify that RANC spent the entire time in the financial difficulty zone. Crucially, the apparent improvement in 2024 was accompanied by a 42.7 percent drop in operating cash flow, which was caused by a non-recurring disposal gain of Rp110.7 billion that concurrently inflated total assets and earnings. A paradoxical Z-Score of 2.1546 (grey zone) was obtained from a what-if restatement that excluded this gain. This revealed a structural conundrum in which, when transient revenue is present, the model's component interactions generate noise rather than trustworthy diagnostic signals. These results show that gains in Z-Score may be a deceptive recovery signal that is unrelated to actual operational health. It is recommended that investors and analysts add operating cash flow analysis and earnings quality screening to distress model results, especially for companies going through post-acquisition digital transformation.
Copyright (c) 2026 Siti Sumayyah, Ali Jufri, Ernanto Ernanto https://creativecommons.org/licenses/by-nc-sa/4.0
The Effect Of SPIP Maturity, APIP Capability, and Risk Management On Corruption Prevention In Local Governments Of Bengkulu Province During 2021–2024
Corruption remains a major challenge in local government administration because it can reduce the quality of governance, public trust, and regional development. Therefore, corruption prevention efforts are essential to support good governance. This study aims to examine the effect of Government Internal Control System (SPIP) maturity, Government Internal Supervisory Apparatus (APIP) capability, and risk management implementation on corruption prevention in district and city governments in Bengkulu Province. This research uses a quantitative approach with secondary data obtained from the Performance Reports of the Financial and Development Supervisory Agency (BPKP) for the period 2021–2024. The sample consists of 10 district/city governments, resulting in 40 observations. Data were analyzed using multiple linear regression. The results show that SPIP maturity has a positive and significant effect on corruption prevention. Meanwhile, APIP capability and risk management do not have a significant effect on corruption prevention. These findings indicate that strengthening internal control systems plays a more important role in supporting corruption prevention efforts than improving supervisory capability and implementing risk management that is still focused on administrative compliance. The results support the Fraud Triangle Theory, particularly in explaining the importance of reducing opportunities for corruption through effective internal control systems.
Copyright (c) 2026 Putri Deviana Naibaho, Robinson Robinson, E. Novita Sari https://creativecommons.org/licenses/by-nc-sa/4.0