PROCEEDINGS Business Sustainability and Technology Innovation: Opportunities and Challenges January 22 23, 2015 Grand Inna Kuta Bali - Indonesia i
National Library of Indonesia: In the catalog Issue PROCEEDINGS INTERNATIONAL CONFERENCE FOR EMERGING MARKETS (ICEM 2015) Business Sustainability and Technology Innovation: Opportunities and Challenges Copyright Perbanas Institute First Printed, 2015 All Right Reserved Cover Designer Layout Designer : Suharyanto., S.Kom., MM : Fangki A. Sorongan., ST., MM Publisher Perbanas Institute Jl. Perbanas, Karet Kuningan, Setiabudi Jakarta, 12940 Telp (+6221) 5252533, 5222501-04 Fax (+6221) 5228460 www.perbanasinstitute.ac.id ISBN : 978-602-14666-1-2 xi + 300 pages, 21 cm x 29.7 cm Strictly Forbidden To Copy Or Reproduce Part Or All Of This Book Without The Written Permission Of The Publisher. ii
COMMITTEE STEERING COMMITTEE / REVIEWER Chairman : Prof. Dr. Ir. Marsudi Wahyu Kisworo Secretary : Patria Laksamana, S.E., M.B.A., Ph.D. Members : Imam Wahyudi, Ak., M.Com. Hons., Ph.D., CA Zaenal Abidin, S.E., M.B.M., Ph.D. Dr. Steph Subanidja, S.E., M.B.A. Dr. Umbas Krisnanto, S.E., M.M. Dr. Harya Damar Widiputra, S.T., M.Kom. Dr. Hidayat Sofjan, S.E., M.M. Dr. Endri, M.A., M.M. Dr. Wilfridus B. Elu, S.E., M.Si. ORGANIZING COMMITTEE Project Manager : Mardiana Purwaningsih, S.T., M.Kom. Secretary : Tifa Noer Amelia, S.E., M.Acc. Field Coordinator : Aiaz Rajasa, S.E., Ak., M.Acc. Fauzi, S.E. Program Coordinator : Pratiwi, M.Si. IT Support : Heryudi Ganesha, S.Sn., M.TI. Conference Material : Fangki Sorongan, S.T., M.M. Sponsorship : Indra Siswanti, S.E., M.M Publication Sponsorship : Suharyanto, S.Kom., M.M. Yohanes Ferry Cahaya, S.E., M.M. Finance : Fitri Astuti, S.E. iii
PREFACE Praise to Allah the Almighty God for all the grace and guidance that has been given to us all, so Proceeding of the International Conference for Emerging Markets (ICEM) Perbanas Institute 2015, on 22-23 January 2015 at the Grand Inna Kuta, can be realized. The Proceeding contains a number of research results of Banking and Finance, Marketing, Accounting, Strategic Management, and Information Technology that have submitted by many researchers, lecturers as well as practitioners in the relevant fields from various countries. On this occasion the committee would like to express their grattitude to: 1. The Rector of Perbanas Institute, Prof. Dr ir. Marsudi Wahyu Kisworo, who has facilitated all the activities of the ICEM Perbanas Institute 2015. 2. The Steering Committee and the Organizing Committee of ICEM Perbanas Institute 2015, who have contributed the their time, effort, and thoughts for the success of this activity. 3. STIKOM Bali and the organizers appointed who have helped this event so that it can be held properly. 4. The authors and the presenters who contributed and shared their excellent ideas. 5. And also to all sponsors that support this event. Hopefully this Proceeding can give benefit for all of us, in particular, for the development of the science of Banking and Finance, Marketing, Accounting, Strategic Management, and Information Technology. In the end, the committee would like to apologize if there is inconvenience related to the event. Suggestions and constructive criticism are expected for the perfection of the conferences and proceedings in the future. Jakarta, January 8, 2015 Mardiana Purwaningsih, ST, M.Kom Organizing Committee Chairwoman iv
FACING THE ASIAN AGE When the going gets tough, the tough gets going When the going gets tough, the tough gets ready I got something to tell you I got something to say I'm gonna put this dream in motion Never let nothing stand in my way (When the going gets tough, the tough gets going, Song by oleh Billy Ocean) Assalamu alaykum warahmatullah wa barakatuh, Om swastiastu, may God bless us all History has shown that in the 7 th century, Indonesia archipelago experienced the golden era when the Kingdom of Sriwijaya supremacy was respected from Hawai in the east up to India in the west. Seven centuries after the fall of Sriwijaya, the Archipelago again entered the golden era when the Great Majapahit Empire was led by Emperor Hayam Wuruk and Gajah Mada as his Prime Minister. The influence of Majapahit even detered the largest empire in history, the Mongolian, who conqured almost three fourth of the world. This largest Mongolian Empire which destroyed big kingdoms of India, Persia, and even demolished the Great Empire of Abbassyiah in Baghdad was afraid to send their army south as they had bad experience of being defeated by Raden Wijaya, the founder of Majapahit Empire. If this 7 centuries cycle repeats, then it is in this 21 st century Indonesia will again enter its golden era. Indonesia is now one of the most vibrant democracies that has emerged as a confident middle-income country. Today Indonesia is the 10 th largest economy in the world with a size of US$ 867 billion, the income per capita of around US$ 3475 and growth of around 6%, the highest growth in the world second only to China. World known research institute McKinsey predicts that in the year of 2030, Indonesia will become the 6 th or 7 th largest economies in the world. Even more, extrapolated to the year of 2050 assuming that the growth maintained, Indonesia together with China, India, Japan, and yhe United States will become big five of world economies. The development of Indonesia, simultanously together with the progression of other Asian countries such as China, India, Japan, South Korea, Vietnam, Laos, Kambodja, and Myanmar will lead into a new Asian economy era. This year marks a new beginning of Indonesia economic relationship with other ASEAN member countries. Indonesia, together with the other 9 ASEAN member countries will merged into ASEAN Economic Community (AEC) as the platform of economic integration where there is free flow of goods, free flow of services, free flow of investments, and free flow of people. Jacques Attali, a French philosopher, in his book Millennium: Winners and Losers in the Coming World Order argues the coming new order will be based on its ability to manage violence. Unlike previous orders, however, which first ruled by religion, and then by military force, the new order will manage violence largely by economic power and that competition among nations will divide into two classes of v
nations, namely the winners and the losers. He says, In the coming world order, there will be winners and there will be losers. The losers will outnumber the winners by an unimaginable factor. They will yearn for the chance to live decently, and they are likely to be denied that chance. They will encounter rampant prejudice and fear. They will find themselves penned in, asphyxiated by pollution, neglected through indifference. The horrors of the twentieth century will fade by comparison. The winner are nations that have comprehensive capacity and quality to compete and fight openly while the losers are the nations with low quality and low competition capacity. The 2 nd International Conference on Emerging Markets an international conference conducted by Perbanas Institute together with STIKOM Bali as a forum to discuss new ideas and research findings related with the emerging of the market and the new era, the Asian Era. 43 research papers from 3 countries will be presented in the Conference. I would like to extend my gratitude to all fellow researchers who participate in this Conference. I would like also to thank to all keynote speakers and panel sessions speakers. I would also like to express my appreciation to all members of steering committee and organizing committee who have work hard to prepare the Conference. Wassalamu alaykum warahmatullah wa barakatuh, Om santi santi santi om. May God bless us all. Prof. Marsudi Wahyu Kisworo, ir(itb), MSc(Curtin), PhD(Curtin) Rector/Vice Chancelor, Perbanas Institute vi
TABLE OF CONTENTS : BANKING FINANCE (BF) BF01 THE PERFORMANCE ANALYSIS WITH THE FINANCIAL RATIO, BENEISH M-SCORE AND F-SCORE AS WARNING ON THE POSSIBILITY OF DEVIATION Maria Oktaviane Wijayanti Irawan, Elisabeth Stefany Manalu... 1 BF02 BF03 BF04 BF05 BF06 BF07 BF08 BF09 STABILITY AND PREDICTABILITY OF BETA IN LQ-45 STOCKS INDEX BASED ON DUAL BETA MODEL Ferikawita M. Sembiring... 11 BETA ANALYSIS ON STOCK RETURN PROPERTY COMPANY ON INDONESIA STOCK EXCHANGE Paulina Yuritha Amtiran... 17 WORKING CAPITAL MANAGEMENT AND PROFITABILITY IN INDONESIA STOCK EXCHANGE CASES OF MANUFACTURING INDUSTRIES FACED THE GLOBAL CRISIS IN EMERGING MARKET Petrus Emanuel de Rozari... 21 IMPACT ANALYSIS OF INTEREST AND SBI TENOR TO SYSTEMATIC RISK AND ITS IMPLICATIONS TO SYSTEMIC RISK Hasril Hasan... 30 INVESTMENT DECISION: TO HOLD, TO BUY OR TO SELL STOCKS THE IMPLEMENTATION OF PRICE MULTIPLE MODEL IN BANKING INDUSTRY Sodikun and A D Marsono... 44 BUSINESS SUSTAINABILITY AND TECHNOLOGY INNOVATION OPPORTUNITIES AND CHALLENGES Paul C.G. Gwee... 51 COMPARISON OF GROWTH AND CHANNELING CHARACTERISTICS OF CREDIT IN CONVENTIONAL BANK AND FINANCING IN SYARIAH BANK IN INDONESIA Puji Hadiyati, Ridarmelli... 55 THE PREDICTION OF BANKRUPTCY WITH ALTMAN Z SCORE IN INDONESIA S BANK UMUM SHARIA PERIOD 2007-2011 Willy. Sri. Yuliandhari, Dudi Pratomo... 60 vii
MARKETING (MT) MT01 IMPACT OF FOREIGN BANK PENETRATION ON BANKING COMPETITION AND EFFICIENCY IN INDONESIA DURING 2000-2011 Bahtiar Usman, Syofriza Syofyan... 68 MT02 THE INFLUENCE OF ENTREPRENEURIAL MINDSET TOWARDS PRODUCT INNOVATION: (Case Study On Mom s Bakery In Bandung) Laura Lahindah, Siska Purnama Manurung... 76 MT03 THE INFLUENCE OF ADVERTISING APPEALS, THE QUALITY OF ADVERTISING MESSAGE, AND THE ADS FREQUENCY TOWARDS BRAND AWARENESS of SEDAAP CUP NOODLES WITH CELEBRITY ENDORSER RADITYA DIKA (Case Study On Students Of Ithb And Stie-Hb Bandung) Siska Purnama Manurung, Maria Debora, Rachmat Tri Yuli Yanto... 83 MT04 MEASUREMENT OF RETURN ON MARKETING INVESTMENT (ROMI) IN MANUFACTURING COMPANIES Khusnul Khotimah... 90 MT05 TRACKING OF TRANSMISSION MECHANISM ON INFLATION TARGETING Sriyono... 97 MT06 EVALUATING BUSINESS PERFORMANCE OF PAY TV OPERATOR IN INDONESIA: BUILDING COMPETITIVE ADVANTAGE THROUGH MARKET ATTRACTIVENESS, CORE COMPETENCE AND VALUE CREATION Firsan Nova... 105 MT07 EVALUATION OF CUSTOMER SATISFACTION IN INTERNET ERA Umbas Krisnanto... 112 ACCOUNTING (AC) AC01 THE RELATIONSHIP BETWEEN ENVIRONMENTAL REPORTING AND DISCLOSURE AND INTELLECTUAL CAPITAL AND ITS IMPLICATION ON THE QUALITY OF EARNINGS Nera Marinda Machdar... 118 AC02 ANALYSIS ON THE IMPACT OF TAX BILLING COMPLIANCE AND CORPORATE TAXPAYERS AT KANTOR PELAYANAN PAJAK PRATAMA KEBAYORAN BARU TIGA Tiolina Evi... 125 viii
AC03 ACTION REASERCH ON ACCOUNTING INFORMATION SYSTEM OF INDONESIAN NATIONAL POLICE HEADQUARTERS Devi Dwi Erina, Tifa Noer Amelia... 131 INFORMATION TECHNOLOGY IT01 INDONESIA WEB DEFACEMENT ATTACKS ANALYSIS FOR ANTI WEB DEFACEMENT IGN Mantra... 136 IT02 IT03 IT04 IT05 IT06 IT07 IT08 IT09 IT10 THE MODEL SUPPORT VECTOR MACHINE WITH PARAMETER OPTIMIZATION USING GENETIC ALGORITHM FOR INFLATION PREDICTION IN INDONESIA Mercurius Broto Legowo, Budi Indiarto, Leo Agung Ignatius Sukirno.. 140 DATA SECURITY IMPROVEMENT WITH CROPPING SELECTION PSEUDORANDOM ENCRYPTION METHOD Pratiwi, Dwi Atmodjo Wismono Prapto... 147 DECISION SUPPORT SYSTEM OF GRANTING KREDIT USAHA RAKYAT (KUR) WITH PROMETHEE METHOD Riska Hanifah, Puji Rahayu... 151 EXTRACTION AND ANALYSIS ASSOCIATION RULE ON THE DATA INDONESIA STOCK EXCHANGE WITH THE APRIORI ALGORITHM Deden Prayitno, Riska Hanifah... 159 A CONCEPT MODEL OF E-KTP AUTHENTICATION FRAMEWORK IN TAX REPORTING Puji Rahayu, Riska Hanifah... 165 GREEN ICT: HOW TO DELIVER VALUE TO YOUR BUSINESS Mardiana Purwaningsih... 171 THE IMPACT OF CRM STRATEGY AND SOCIAL CRM ON CUSTOMER LOYALTY Adele B.L. Mailangkay, Edhi Juwono... 179 IT PROFESSIONALS PREPAREDNESS FOR ESTABLISHMENT OF SMART CITY Wahyuningdiah Trisari Harsanti Putri, Retno Hendrowati... 184 GENETIC ALGORITHM FOR COIN PROBLEM SOLVING: AN APPLICATION ON ATM MACHINE Elliana Gautama, Nani K. Tachjar... 190 ix
IT11 CUSTOMER RELATIONSHIP MANAGEMENT SOFTWARE SELECTION ( Case Study at Customer Goods Company ) Yulius Denny Prabowo, Soelistyo Rudi Sanjaya... 197 STRATEGIC MANAGEMENT (SM) SM01 SM02 SM03 SM04 SM05 SM06 SM07 SM08 SPIRITUALITY LEADERSHIP TO CREATE TRANSFORMATIONAL LEADERSHIP: REFERRING TO LEADERSHIP VALUES IN CHRISTIANITY IN INDONESIA Rolland Epafras FanggidaE... 203 THE INFLUENCE OF THE TOP MANAGEMENT TEAM DIVERSITY ON INDONESIA REGIONAL BANK DEVELOPMENT PERFORMANCE Joy Elly Tulung... 209 LEADER S INNOVATION ON LEARNING ORGANIZATION AS A STRATEGIC POSITIONER ( Study on Bank BJB Using Soft Systems Methodology based on Action Research ) Stefanus MS Sadana, Ign. Septo Pramesworo... 217 THE ROLE OF BRANCH MANAGER IN TRAINING AND DEVELOPMENT FRONTLINERS PT BANK BTN (Qualitative Study of the Action Research Approach Based Soft Systems Methodology) M.M. Tri S. Mildawani, Stefanus M.S. Sadana, Ign. Septo Pramesworo... 230 THE INFLUENCE OF WORK MOTIVATION, JOB SATISFACTION, AND COMPENSATION TO EMPLOYEES PERFORMANCE AT PT BANK DKI MAIN BRANCH JUANDA Elisa Ballqis Effendy, Pamela Magdalena... 238 THE MEANING OF ROLE, MANAGEMENT, AND KEY COMPONENT IDENTIFICATION INTELLECTUAL CAPITAL IN PHARMACY COMPANY Sigit Hermawan... 244 INDONESIA S PHOTOGRAPHY INDUSTRY SHIFTING FROM HOBY TO BUSINESS Joseph M.J.Renwarin... 250 THE IMPACTS OF KNOWLEDGE BASED RESOURCES AND ENTREPRENEURSHIP ORIENTATION ON BUSINESS PERFORMANCE: A CASE IN MICRO AND SMALL SCALE ENTREPRISES IN JEMBER Hadi Paramu... 258 x
SM09 SM10 SM11 SM12 DIVERSITY MANAGEMENT AND THE ROLE OF HUMAN RESOURCE MANAGEMENT IN ORGANIZATIONS Wolter Boeky & Lieli Suharti... 266 THE CONSUMER BEHAVIOUR ANALYSIS OF POOR PEOPLE ( Case Study In Suwung, Denpasar City ) Made Wahyu Adhiputra... 275 POTENTIAL BUSINESS INNOVATION TO INCREASE LOCAL REVENUE BASED ON LOCAL WISDOM IN THE WEST SUMATERA PROVINCE Armida. S, Budiwirman... 283 THE INFLUENCE OF CUSTOMER SATISFACTION OF E CHANNEL, PERCEPTION OF QUALITY, THE COST OF MOVING SERVICES, AND THE SELECTION OF BANKS TO THE CUSTOMER LOYALTY IN PT. BANK C Luki Karunia, Bambang Irawan... 289 SM13 CORPORATE SOCIAL RESPONSIBILITY COMMUNICATION AND LEGITIMACY IN INDONESIA ISLAMIC BANKING Adi Susilo Jahja... 294 xi