Non-Performing Financing and Asset Quality: Evidence from Indonesian Islamic Banks

Tasya Aspirantia, Abdul Razak Abdul Hadib*, Ima Amaliahc, Ade Yunita Mafruhatd, a,c,dUniversitas Islam Bandung (Unisba), bUniversiti Kuala Lumpur Business School, Email: b*abdrazak@unikl.edu.my

The current development of Islamic banks in Indonesia is quite rapid, but unfortunately cases of non-performing financing (NPF) among these banks are also on the rise. Within the bank risk management (BRM) theoretical framework, this study aims to investigate the causal-effect analysis between NPF and bank-specific factors over both the short run and the long run. This study utilises quarterly financial data involving a group of 11 Islamic banks in Indonesia from June 2014 to January 2018. Also, the study deploys both Johansen-Juselius cointegration test and Vector Error Correction Model (VECM) as estimation tools. The empirical findings from Johansen-Juselius reveal the existence of cointegration between NPF and the tested variables. From the VECM analysis, the financing deposit ratio (FDR) model is the only credible model with long-run significant relationship. Interestingly, its Granger causality test shows a significant unidirectional causality running from return on assets (ROA) to FDR. It is now evident that bank’s profitability is of paramount importance in determining future growth of its financial assets. Pages 1 to 23




The Effect of the Rupiah Course and Rate of Inflation on Total of Indonesian Non-Oil and Gas Exports (Study of 2005–2015)

Desmintaria, Renea Shinta Amindab, aFaculty of Economics and Business, UPN "Veteran" Jakarta, bFaculty of Economics and Business, Universitas Ibn Khaldun, Email: adesmintari@yahoo.com, brenea_shinta@yahoo.com

This study aims to determine the development of non-oil and gas exports as well as the factors that affect Indonesia's non-oil and gas exports. The independent variable in this study is the dollar exchange rate against the rupiah (X_1), and the inflation rate (X_2), with the dependent variable as non-oil and gas exports (Y). The type of research used is explanatory research, with a quantitative approach. The data for this study are non-oil and gas exports in Indonesia over the period 2005–2015. The data used is obtained from the official website of the Indonesian Statistics Agency and Bank Indonesia. The data analysis used is multiple linear regression statistical analysis. Simultaneous test results (F test), show that the Inflation Rate and dollar exchange rate against rupiah simultaneously have a significant effect on Indonesia's non-oil and gas exports. Then the exchange rate variable also shows a significant effect on Indonesia's non-oil and gas exports at 95% significance as well as the inflation level variable that has a significant effect on Indonesia's non-oil and gas exports. Pages 24 to 38




 Persistence of the Duwaa Kaja: Medical Implications of an Ancestral Rite

Francis C. Jumalaa, aWestern Mindanao State University, Zamboanga City, Philippines, Email: afcjumala@yahoo.com

In the Southern Philippines, the practice of an ancestral rite called pagkaja is seen to permeate the lives of some members of Tausug society. This rite is a homage to the ancestors, a mechanism for the removal of misfortunes and illnesses believed to be caused by the ancestors, and a fulfilment of a traditional pact called janji. This study presents the nature, performance, and persistence of pagkaja, and argues that its persistence is deeply rooted in tradition and is difficult to breach. This study also argues that the polygynous Tausug marriage perpetuates the rite, the fear of ancestors’ wrath construed in a phenomenon called sukut, as a vehicle for the continuative performance of the rite, and finally the medical benefits derived which contribute to its continuance. Pages 39 to 56




Student Performance in Michael Halliday’s Seven Language Functions: Lesson Guides for Teaching/Learning English Discipline

Junior K. Ahamada, Abdulhalim H. Jauharib, Suharto A. Luddinc, Allan J. Abdurahmand, a,b,c,dTawi-Tawi Regional Agricultural College, Bongao, Tawi-Tawi, Philippines, Email: aaahamadjuniork@gmail.com,  bbjjau153@gmail.com

This descriptive correlational research attempted to determine the communicative performance of students at two colleges. The two colleges were the Tawi-Tawi Regional Agricultural College (TRAC), and the Mindanao State University Tawi-Tawi College of Technology and Oceanography (MSU-TCTO). Michael Halliday’s seven functions of language methodology was used. Specifically, this study purported to: (1) determine the students’ level of oral and written performances in the seven functions of language, to wit: instrumental, regulatory, interactional, personal, imaginative, heuristic, and informative; (2) determine whether significant difference in the oral and written performances of the respondents existed; (3) determine whether significant relationships existed between the oral and written performances of the respondents; and (4) propose lesson guides in the functional English second foreign language discipline. As disclosed, all respondents obtained a marginal mark in the various communicative tasks. Hence, they were deficient in all the functions of language. In terms of their communicative level in written performance, the respondents from TRAC had better performance than the respondents from MSU-TCTO as manifested by their mean score. Empirically, an expectation for graduates of an academic institution, like the latter, to achieve better performance compared to an agricultural institution in Tawi-Tawi, is unwarranted. The oral communicative performance in the seven functions of language revealed significant differences. However, the respondents from MSU-TCTO had high mean scores than TRAC. Only task 1 (instrumental function) and task 3 (interactional function) of the written performance of the respondents revealed significant difference. Other language functions communicatively explained the same marginal linguistics performance.  With regard to the relationship between the students’ communicative oral and written performances, results conclusively divulged a significant relationship. Pages 57 to 75




How Readiness to Implement the K-12 Curriculum Influences Academic Performance in High Schools in the Philippines

Junior K. Ahamada, Abdulhalim H. Jauharib, Suharto A. Luddinc, Allan J. Abdurahmand, a,b,c,dTawi-Tawi Regional Agricultural College, Bongao, Tawi-Tawi, Philippines, Email: aahamadjuniork@gmail.com,  bjjau153@gmail.com   

Twenty-first century education occurs amidst a proliferated global technological networking environment. Its great challenge is to equip senior high students across cultural education disciplines with enriched teaching pedagogy, for lifelong learning efficiency and excellence, globally. As part of broader efforts to address deteriorating education in the Third World, Asian-wide, the Philippines’ K+12 curriculum program is now reforming education. Therefore, this descriptive correlational survey research was set at Tawi-Tawi Regional Agricultural College. It determined the influence of Pre-Post Diagnostic Learning Assessments, of the K-12 Enhanced Basic Education Curriculum Implementation Readiness, on Academic Performance Efficiency among Senior High Instructors and Grade Eleven (11) Senior High students. The respondents were the classroom instructors/teachers and teaching school heads. The Academic Performance Efficiency among Senior High Instructors and of Grade Eleven (11) Students in English and Math Curricula offered at Tawi-Tawi Regional Agricultural College both revealed a good correlation. The significant influence of the Learning Assessments of the K-12 Enhanced Basic Education Curriculum Implementation Readiness on the Academic Performance Efficiency among Senior High Instructors and of Grade Eleven (11) students registered as significant. Pages 76 to 123




An Analysis of Error Production among Chavacano Spanish Learners

Joseline S. Alvareza, aWestern Mindanao State University, Zamboanga City, Philippines, Email: ajts_72@yahoo.com

Chavacano is widely considered to be one of the world's oldest creoles. It is influenced by Spanish, so it is expected that Chavacano learners are error-free in the Spanish language. Since there has been no study on this aspect, the current study is imperative. This study investigated the errors committed by Chavacano learners in learning Spanish as a foreign language in a conversational context, and determining which errors are more persistent. The study employed the descriptive-qualitative method, through the use of the Spanish articles and conjugation-based approach to structurally distinguish the verb's stem and its inflectional affix, as in comer (you eat) in which "com" is the stem and "o, es, e, emos, eis, en" is the inflection. Ten Chavacano speakers were purposively selected from Mass Communication students as informants. A set of pictures adopted from Tendero (2012) and an audio recorder were used. The data were transcribed and analyzed. Results showed that the informants committed the deviation language forms (omission, addition, misformation, and misordering). This study would provide research-based insight among Spanish teachers to anticipate error production among Chavacano learners. 124 to 136




PentaHelix Synergy on Tourism Development in Batu, East Java

Willy Tri Hardiantoa*, Sumartonob, M.R. Khairul Mulukc, Fefta Wijayad, aStudent of the Doctoral Program of Administration in Brawijaya University, b,c,dLecturer Doctoral Program of Administration Science, Brawijaya University, Email: a*willytrihardianto4@gmail.com

Tourism in Batu, a city in East Java, has developed rapidly and requires involvement from various stakeholders. This research related to the actual implementation of tourism development, using exploratory studies of the ‘Penta Helix’ concept, defined below, which was carried out to compile a complete picture of the idea. A qualitative approach deepened archival understanding and developed observations and interviews with field actors. PentaHelix involves synergies, in this case to develop the tourism sector. There is a ‘PentaHelix’ or collaboration of five elements; namely government, academia, private, media and environmental institutions. However, several weaknesses were found in this synergy, namely the role of academics and environmental institutions. They are called weak points due to a lack of synergy in maximising their roles. The realization of the desired tourism development is a model of synergising tourism development with ‘inter-helix’ cooperation. Academics and environmental institutions need to increase their performance, to synergise tourism development with a PentaHelix perspective in Batu. Moreover, they can build symbiosis between tourism and a PentaHelix perspective in general, to develop tourism itself through the synergy of various elements in the helix. This research provides a new course, to preserve cultural heritage through a PentaHelix collaboration to develop tourism. Pages 137 to 149




Sustaining Baba-Nyonya Cultural Heritage Products: Malacca as a Case Study

Albattat Ahmada*, Mariam-Aisha Fatimab, Alia Alic, Nisyrin Apandid, Muhammad Kamarudine, aPostgraduate Centre, Management and Science University, University Drive, Off Persiaran Olahraga, Section 13, 40100, Selangor, Malaysia, bResearch Management Centre, Management and Science University, University Drive, Off Persiaran Olahraga, Section 13, 40100, Selangor, Malaysia, c,d,eSchool of Hospitality and Creative Arts, Management and Science University, University Drive, Off Persiaran Olahraga, Section 13, 40100, Selangor, Malaysia, Email: a*ahmad_rasmi@msu.edu.my

The Baba-Nyonya people have contributed immensely to the culture, cuisine, fashion, and arts of Malaysia. This study aims to identify strategies to sustain the market for cultural heritage products of the Baba-Nyonya in Malacca. Qualitative research in the form of face-to-face interviews was conducted at the Baba-Nyonya Heritage Museum and Straits Chinese Jewellery Museum in Malacca. Data were subsequently analysed using thematic analysis. Results showed that the key to sustainability lies in promoting interest in and appreciation for the culture of the Baba-Nyonya among local visitors, tourists, and especially the next generation. Their unique products should be displayed in museums and antique shops, as well as advertised on social media platforms. Other venues for marketing include traditional Baba-Nyonya celebrations featuring performances, games, and food tasting events, which can be organized and supported by Peranakan associations. Pages 150 to 162




Senior High School Students’ Different Cognitive Styles and Their Thinking Processes in Solving Mathematical Problems with Scaffolding

Lambertusa*, Muhammad Sudiab, La Misuc, Nikolaus Pasassungd, La Dayae, a,b,cUniversitas Halu Oleo, Jl. H.E.A. Mokodompit No. 1, Kendari 93231 Indonesia, dUniversitas Sulawesi Tenggara, Kendari 93212, eAlumni of Masters in Mathematics Education at Universitas Halu Oleo, Email: a*lambertus_59@yahoo.co.id

The aim of this study was to reveal the thinking process of two students of Public Senior High School 1 Raha, Indonesia. One student had an impulsive cognitive style and the other a reflective cognitive style, in solving mathematical problems through the provision of scaffolding based on Polya stage. This was an explorative study using a descriptive-qualitative approach. The main instrument of the study was the researchers, and the auxiliary instrument consisted of three respondents to a cognitive style test, problem-solving task, and interview. Data were analyzed through three stages, namely: data reduction, data presentation, and conclusion. The study found that: (1) at the problem-solving stage, the two subjects tended to think conceptually, but only the impulsive subject provided with scaffolding could really understand the problem well; (2) at the stage of planning problem-solving, the impulsive subject’s thinking types tended to be semi-conceptual, and the reflective one tended to think conceptually, but only the former was provided with scaffolding; (3) at the stage of problem-solving plan implementation, the impulsive subject’s thinking types tended to lead to semi-conceptual thinking, and solved the problem in a hurry that the solution tended to be wrong, but with scaffolding, he solved the problems correctly; whereas the reflective subject tended to think conceptually and solved problems correctly without scaffolding; (4) at the stage of re-examination of the results of problem solving, the impulsive subject tended to think computationally, whereas the reflective one tended to think conceptually. Pages 163 to 174




Innovation Management Models - A Literature Review

Jhon Wilder Zartha Sossaa, José Luis Solleiro Rebolledob, Juan Manuel Montes Hincapiéc, Raúl Hernández Zartad, aUniversidad Pontificia Bolivariana. School of Engineering, Faculty of Agroindustrial Engineering. PhD in Administration, bUniversidad Nacional Autónoma de México. PhD in Technical Sciences, cUniversidad de Medellín. PhD in Administration, dCEIPA Business School. Master in Innovation in Agribusiness, Email: . ajhon.zartha@upb.edu.co, bsolleiro@unam.mx, cjmontes@udem.edu.co,  draul.hernandez@ceipa.edu.co

This paper deepens the innovation process model and innovation management model. It states that the latter contains management variables not analyzed in depth, in the literature on innovation models. It also presents six proposals on models of innovation management in companies and sectors. The methodology was based on an in-depth review of 73 documents obtained via Scopus which contained the search terms “innovation management” and “model”. These documents were analyzed using Vantage Point software. The majority of authors are in agreement about innovation models and their emphasis on the “process of innovation”. However, a similar consensus was not to be found regarding “innovation management models”. This represents a barrier to theoretical analysis. Yet it is also an opportunity to propose best practices, identify patterns, and establish theories that may become the basis of future models. Pages 175 to 194




 Misuse of Bankruptcy Petitions by Creditors: The Case of Indonesia

M. Hadi Shubhana, aUniversitas Airlangga, Indonesia. Email: hadisubhan.unair@gmail.com

This study aims to examine the principles and practices of Indonesian bankruptcy law. It is crucial for investors who will put their capital in Indonesia, so that they do not become subject to the misuse of bankruptcy law instruments in Indonesia. Indonesia bankruptcy law  has a number of weaknesses that allow creditors to misuse bankruptcy instruments for their own benefit at the expense of debtors. The weakness is twofold. First, there is no minimum debt limit that can trigger an application for bankruptcy. Second, insolvency tests before the bankruptcy request is made, are absent. Some misuse of bankruptcy laws has led to solvent companies acting as bankrupt debtors. Pages 195 to 207




Does SMES Funding Influence Exports? (Evidence from the Footwear Industry in Indonesia)

Herlitaha, Muhammad Fawaiqb, aUniversitas Negeri Jakarta, bMinistry of Trade Republic of Indonesia, Email; aherlitah@unj.ac.idbmuhammadfawaiq@yahoo.co.id

This study examines the effectiveness of SME funding to support exports (in the footwear sector in Indonesia). It aims to examine the direction of the long-term causality relationship of each variable in the study. The variables to be tested in this study are SME funding in the industrial sector (FUND), commercial bank interest rates for working capital (R), the rupiah exchange rate against the USD (KURS) and the export value of footwear products (XAK). Based on the type of data, this study uses monthly time series data for the period 2011 - 2017. The results show that FUND, KURS, and R have a significant impact on encouraging the long-term export of Indonesian footwear. In addition, in the short term, funding has significantly increased the export of footwear. This also occurs on the independent interest rate variable which is also significant and relates negatively to footwear exports. Pages 208 to 223




 The Role of Women in the Growth and Development of Fisheries in Banate Bay, in the Philippines

Michael Bracamonte Dizona, aIloilo State College of Fisheries, Barotac Nuevo, Iloilo 5007 Philippines, Email: anozidmichael@gmail.com

The degree of participation of women in fisheries reflects the cultures, laws, and priority given by the state to ensure gender equity. This study assesses participation by women in managing and sustaining fisheries in Banate Bay, in the Philippines. The respondents were 712 women fisherfolk chosen through a convenience sampling. The researchers conducted site visits, 32 Focused Group Discussions (FGD) and in-depth interviews with selected Key Informant (KI) beneficiaries, particularly project implementers and partners. A large number of women is employed in the fisheries sector; about 54% are employed by municipal fishing and 62% by commercial fishing. In particular, women are engaged in economic activities such as mangrove planting and other community and environmental-based initiatives. Deficiencies in fishing equipment, lack of information, slowdown catch of fish, climate conditions, and transportation are obstacles for the sectoral participation of women. However, despite women’s involvement in many areas in the fisheries sector, their participation is still underestimated and ignored. Productivity enhancement and marketing development programs need to be initiated to promote their participation in the management of fisheries resources. Pages 224 to 233




The Herding Effect of Domestic Investors on Foreign Investors: Evidence from the Iraq Stock Exchange

Mohammed Faez Hasana, Noor Sabah Al-Dahanb*, a,bFaculty of Administration and Economics, University of Karbala, Karbala, Iraq, Email: b*nooraldahan855@gmail.com

Financial market participants show biases over time. Herding is still one of the well-known biases. In developing or emerging financial markets, herding increases for domestic investors in relation to foreign investors’ behaviour. We study this effect on the Iraqi Stock Exchange. We found that local investors follow or ‘herd’ on foreign investors in many situations like forming portfolios, buy and sell signals, and in imitating their behaviour when less information is available for investments. Reasons behind that go back to domestic investors thinking foreign investors have enough skills and knowledge to make a better prediction about securities futures, because foreign investors have improved their experience from investments in developed countries, in addition to their enormous financial resources. Pages 234 to 245