Phuket, Thailand—Since its establishment in 2009, IPIEF has been seeking to equip its students with the international experiences by sending them in conferences, workshops and student exchange programs. it is proven by recent success of two teams from IPIEF students in achieving Good Paper Award in the 21st Asian Forum on Business Education (AFBE), an international conference that has annually been organized in different countries. This year, such an annual conference was hosted by Thakhsin University and has taken place in Phuket from January 15-16th, 2018. Since there were 8 (eight) countries, namely USA, Canada, Australia, Germany, French, Thailand, Malaysia and Indonesia, participating in this conference, it can be said that such a conference was the prestigious one.
Two teams of IPIEF who earned Good Paper in this conference: The first team consisted of Farhan Fabillah (Batch of 2014) and Resty Tamara Utami (Batch of 2015) who wrote the paper entitled “Competitiveness of Indonesia agriculture commodities as a Specialization Strategy in ASEAN-5 to World Market Share using Revealed Comparative Advantage and Constant Market Share Methods”, while the second team comprised of Adilah Chemat (Batch of 2014) analyzed the share return in banking company listed in stock exchange of Thailand. Meanwhile, another team consisting of Hafifah and Dedy Fahrul Rahman has also presented their paper in this conference, focusing their study on Islamic Capital Market.
The research undertaken by first team has a chief purpose for analyzing the competitiveness of Indonesia agriculture commodities as well as the other four countries in ASEAN. When asked about the main background which prompted them to investigate empirically that issue, Farhan emphasized, saying: “There are several facts that should be considered that motivate us to conduct this research, including (1) ASEAN countries generally produce raw goods, commodities as a result of their production; (2) the main problem to be a single market; (3) the similar geographical conditions of countries; (4) A country will import goods which, if produced domestically, are inefficient or less profitable and the last is about specialization object.”
To fulfill the aim of the research which was to analyze the potential of competitiveness and to identify and map the products of each ASEAN-5 and to explore in detail the competitiveness of commodities in the agricultural sector in ASEAN-5, their paper employed Revealed Comparative Advantage (RCA) and Constant Market Share (CMS) method. Explaining the main results of this study, Farhan said:” Specialization has made the economic development of ASEAN countries growing rapidly. Generally, all ASEAN countries produce natural commodities, and have a vast world market share. More importantly, Indonesia has a significant opportunity to increase its market share when the AEC has been implemented in ASEAN and therefore the value of competitiveness of each Indonesian commodity becomes the basis for Indonesia to be the main actor in AEC.”
In addition, Adilah Chemat as a second team attempted to investigate empirically the effect of Return on Asset (ROA), Net Profit Margin (NPM) and Earning per Share (EPS) on Stock Returns by using common methodology. This research demonstrated while ROA and EPS gave a significant on Stock return, another variable (NPM) did not affect significantly the stock return in Thailand.
Resting upon Islamic economics perspective, the seminal paper by Hafifah and Dedy also sought to examine whether monetary sector (represented by Fed rate and gold price) and real sector as can be seen from world oil price and economic growth condition may affect the performance of Jakarta Islamic Index (JII). Of those four variables, both economic growth and world oil price as the proxy of real sector variables have proven to be capable of enhancing the JII performance, yet the monetary sector variables did not impact JII significantly.
Dimas Bagus Wiranatakusuma, SE., M.Ec, Director of IPIEF greatly appreciated the international achievement which was attained by IPIEF students, stressing: “We will support many academic agendas not restricted to those conducted at national level but also at international level as it is in agreement with our vision to be the reputable International program on Islamic Economics, banking and finance in ASEAN. [Aw]