Andi Aswan

The study aims to examine the financing profitability optimization as recorded by Sharia Business Unit of Regional Development Banks (RDBs) in Indonesia. The profitability measured by Net Operating Margin (NOM) and predicted variables were tested with the ratio of Operational Cost to Operational Income (BOPO), Non-Performing Financing (NPF) and Profit Sharing Financing (PSF). On the basis of the literature review conducted, the study proposed five path coefficients to impact NOM, of which the constructed direct path to NOM was three and two for indirect paths. Time series data used were obtained from annual reports and publication reports. Using Pearson Correlation and Path Analysis, the study has found that BOPO, PSF, and NPF contributed to impact to NOM directly, and PSF impacted NOM indirectly through BOPO. Interestingly, PSF recorded a negative impact on NOM, suggesting inefficiency matters faced by SBU of RDBs not contributed from PSF. Another interesting finding, NPF was found insignificant to BOPO, indicating loan default is not a major matter for inefficiency issue, but could be a tight financing policy.

This study aims to examine the marketing channel optionsavailable for corn producers in South Sulawesi, the production center in Indonesia, as well as impact of such a choice on their income level. The target group was corn producers and corn traders. The total sample comprised 150 people, consisting of 120 corn producers and 30 corn intermediary traders within South Sulawesi Province. The results showed that three marketing channels accessed by producers are zero-level, one-level, and two-level channels. The net profit margin obtained by intermediary traders per kg is different by types for each marketing channel due to different marketing activities leading to different costs spent. The most efficient marketing channel is the zero-level channel that conducts direct selling to breeders. It followed by the one-level channel (from farmers to collectors and consumers). Finally, the two-level channel (from producers to merchant traders) showed the lowest efficiency. It should be mentioned that the zero-level channel offers a slight price increase for producers compared to other channels. Its consumers only buy limited number of products so that it does not have a wide impact on producer’s welfare. The study also found high input costs spent to cultivate corn due to land rent, fertilizers, and pesticides.

Acknowledgment
The welfare of corn producers and marketing channel choice is part of an internal research grant project from Hasanuddin University. The research involves the regional government at village and sub-district level, and farmer groups in villages within the Province of South Sulawesi.

Small food and beverage business is considered highly contributing to the economy as it has a close linkage with local micro and small businesses, both upstream and downstream. However, this business group faces challenges; many of them are unable to survive, grow, and compete with large ones. This study is intended to analyze internal factors affecting the performance of small food and beverage businesses in Indonesia. With the use of 100 samples of small businesses, the study applied OLS multiple regression to examine the four internal factors, which are entrepreneurial characteristics, marketing strategies, business capital, and innovation activity. The study results show that marketing strategies, business capital, and innovation activities have a positive and significant effect on the performance of small food and beverage businesses. These findings indicate that small businesses depend mostly on those three factors with different levels of intensity for different business locations. Businesses located in universities and hospital areas are likely to have low intensity compared to those located in office areas or crowded places. Differently, entrepreneurial characteristics do not affect performance. Likely, small entrepreneurs did not have a strong business interest, still expecting to work in government organizations and companies. They established a business due to family encouragement and economic needs.

Acknowledgment
The study on the small businesses in food and beverage sector is part of a research grant project from Hasanuddin University conducted by LP2M (Institute for Research and Community Services Institute of Hasanuddin University). In carrying out this study, the involvement of a number of agencies cannot be ignored: Cooperatives and Small and Medium Size Regional Office of South Sulawesi Province and Cooperatives and Small and Medium Size Regional Office of Makassar City.

Small wooden furniture businesses in East Indonesia feel pressure from the furniture businesses of the West Indonesia, in particular from Jepara, due to a fierce international rivalry. The study is intended to analyze the effect of market orientation and entrepreneurial orientation on competitiveness with innovation as an intervening variable. The study distributed 189 questionnaires to the small wooden furniture producers in the South and West Sulawesi Provinces. The collected data were analyzed by structural equation modeling using maximum likelihood approach. The study found that market orientation, entrepreneurial orientation, and innovation contributed to leveraging the competitiveness of small furniture producers. With this model, market orientation is found to have a positive and significant effect on innovation and competitiveness, both with a small-medium effect. Interestingly, the relationship between entrepreneurial orientation and innovativeness shows a positive, significant, and the most dominant of all structural causal relationships in the model, with a small-high effect. In contrast, the relationship between entrepreneurial orientation and competitiveness has a positive and significant effect with a smaller path coefficient. The study also found that innovation shows a positive and significant effect on competitiveness with a relatively small impact.

Acknowledgment
The case of small wooden furniture businesses of Indonesia is part of collaborative research between the research teams from Hasanudd in University and Universiti Kebangsaan Malaysia. In carrying out this study, the involvement of a number of agencies cannot be ignored: the Cooperative and Small and Medium Size Regional Office of South and West Sulawesi Province and Cooperatives and the Small and Medium Size Regional Office of Makassar City.

This study aims to analyze how two different types of investments (local domestic and foreign direct investments at the provincial level) and revenues (booked by the provincial governments, general allocation funds, special allocation funds, local taxes, and retribution) affect investment loan decisions by local government banks in Indonesia. The study uses panel data applying ordinary least squares and multiple linear regression. Thus, 144 data were sampled from 2013 to 2021 from 16 local government banks out of Java Island in 21 provinces in Indonesia. The study found that local domestic investment at the provincial level affects investment loan decisions by local government banks. In contrast, foreign direct investment did not affect lending decisions, indicating that local domestic investment contributes to the real local economy at the provincial level. Different results were found in provincial revenues in the form of general and special allocation funds, which negatively affected loan investment decisions, possibly due to provincial revenues utilized to cover the financial deficit and capital expenditure spent chiefly on imported goods. Additionally, local taxes at the provincial level also negatively affect investment loan decisions, possibly due to fluctuations in local tax collection during COVID-19. However, the study found that local retribution contributes to predicting loan investment decisions, suggesting revenue collection by the governments considering local economic conditions. The study findings suggest that provincial governments should direct investments that can impact the local economy and spend their revenues on goods and services that can drive local economic growth.

Acknowledgment
The investment loan made by local government banks, which is associated with local investment and revenue, is part of a research grant project from the Economics and Business Faculty of Hasanuddin University. This project is a result of collaboration with national and international researchers. In carrying out this research, some inputs from people working in local government banks, financial service authorities, and provincial and regency governments are addressed.
Thanks to Ahmadi Usman for secondary data and Syahidah Ulhaq for some application programs enabling mapping literature, as well as Israa Natiq Jabar for supervising the result and applied some inputs in the section of research method.