Sigit Wibowo | University of Indonesia (original) (raw)

Papers by Sigit Wibowo

SSRN Electronic Journal, 2000

Bulletin of Indonesian Economic Studies, 2015

SSRN Electronic Journal, 2000

apiems.net

Abstract–Indonesia has been stricken by so many disasters in the last decade. To name a few of th... more Abstract–Indonesia has been stricken by so many disasters in the last decade. To name a few of the major disasters that happened in Indonesia are the Tsunami in Aceh in 2004, earthquake in Yogyakarta in 2006 and the recent earthquakes in southern Java and ...

Value-at-Risk (VaR) is the most popular tool for risk measurement in ban- king and finance indust... more Value-at-Risk (VaR) is the most popular tool for risk measurement in ban- king and finance industry today. The study estimates the volatility for mar- ket risk measurement to calculate diversified VaR. Using Multivariate GARCH BEKK proposed by Engle and Kroner (1993) and variance-covariance matrix methods, this paper compares both methods in generating volatility forecast to estimate diversified VaR particularly for market risk. The paper examines three exchange rates: GBP/USD, USD/JPY, and USD/SGD, from the period of 2000 to 2005. The empirical result shows that GARCH BEKK model performs better, though has more sophisticated specification, than variance-covariance matrix method in estimating the volatility. The estimation results are as follows: VaR estimation generated by GARCH BEKK is 0.1388% which leads to capital charge of 5.2063%; while estimation generated by variance-covariance matrix is 0.1982% which leads to capital charge of 7.433%. The results also show that the volatility changes significantly every 125 observations or at least once in three months. This concludes that volatility forecast should be evaluated at least every three months.

Credit loan is very essential for household economies which is mainly used for consumption smooth... more Credit loan is very essential for household economies which is mainly used for consumption smoothing to cope with income changes or other shocks. Households who are marginalised from financial systems find themselves have limited or no access to financial services to get credit loans. In understanding the different category of credit rationing, I use A2F survey data which covers adequate information about Indonesian households' financial behaviour. This nationwide survey carefully select households in order to ensure representativeness by using multistage random sampling based. Using DEM method as proposed by Boucher et al. (2009), I classify households according to their status towards credit market. The classification between constrained and unconstrained households is based on the loan supply and households' demand for loans. Using DEM approach, the classification can be brought into operational concept in household survey such as A2F survey. The effects of the constraints are investigated further by estimating the welfare loss. The results show that the credit constraints have negative impact where welfare costs occur between Rp. 6 millions and Rp. 24.5 millions in terms of annual household income.

This study investigates the productivity in forty state universities over the period 2001 to 2005... more This study investigates the productivity in forty state universities over the period 2001 to 2005 using a non-parametric frontier approach, data envelopment analysis (DEA) Malmquist methodology. The output included in the analysis is the ratio of the number of undergraduate completions to the number of student entered the university, while the inputs consist of ratio of lecturer per student; ratio of the number of text book collection per student; and the ratio of class room area per students. The resulting Malmquist Total Factor Productivity (TFP) index is then decomposed to consider changes in technical efficiency and technological components. The results indicate that the annual productivity decline averaged 11 per cent, and mostly due to technological regression of 5.4 per cent. However, in overall, these universities had increased their managerial efficiency by 4.5 per cent during the observation periods. This study also found that twenty out of forty universities experienced productivity growth; eighteen universities operated in declining productivity, the rest of the universities had a constant productivity performance. Finally, using Pearson's correlation, we found that TFP change was not related to the size, age, and location of the universities.

This paper aims to introduce an alternative way to benchmark the efficiency of 30 Indonesian coop... more This paper aims to introduce an alternative way to benchmark the efficiency of 30 Indonesian cooperatives at the provincial level from 2000 to 2007. A balanced panel data was used to determine the total factor productivity (TFP) and identify the main drivers to technical efficiency. A stochastic frontier analysis (SFA) was used to determine the influence of environmental variable such locations to technical efficiency of the cooperatives. Furthermore, based on this specification the efficiency frontiers are computed using data envelopment analysis (DEA). The efficiency of each cooperative was then ranked and compared to check for consistency. The study found that on average, cooperatives are 19.4 percent away from the production frontier. The panel data allows for the calculation of productivity change based on Malmquist index. Results found that on average, TFP increased by 8 percent during the observation periods which driven much by 13.6 percent increased in innovation.

Indonesia is considered as a disaster-prone country. Many disasters, natural or man-made disaster... more Indonesia is considered as a disaster-prone country. Many disasters, natural or man-made disasters, have occurred in Indonesia in the recent years, such as the earthquakes in West Java and West Sumatra provinces in 2009. Besides earthquake, many areas in Indonesia also hit by Tsunami, landslide, flood, forest fire and drought.

Disaster management involves plans, structures, and arrangements established to engage the normal endeavors of governments, voluntary and private agencies in a comprehensive and coordinated way to respond to the whole spectrum of emergency needs. The disaster management cycle consists of four stages, namely mitigation, preparedness, response and rehabilitation. Effective logistics management is one of the critical success factors in disaster management.

Relief (humanitarian) logistics aims at rapidly providing the appropriate emergency supplies to disaster survivors and at minimizing human suffering and death. Logistics plays an important role in disaster management because it accounts for eighty percent of the relief operations.

This research is concerned with a survey to understand the disaster survivors' perspectives on relief logistics activities and to study the relief logistics networks of parties involved in disaster relief operations in Indonesia, such as The National Agency for Disaster Management (BNPB), Ministry of Health, Ministry of Social, the Indonesian Red Cross (PMI), and Non-governmental Organizations (NGOs). Based on the result of the survey, we determine the critical success factors of relief logistics activities in Indonesia.

The Indonesian workforce is dominated by workers in the informal sector, complicating the task of... more The Indonesian workforce is dominated by workers in the informal sector, complicating the task of providing social security to workers nation-wide. The vast majority of these people have neither a plan to fund their retirement, nor income, health or life insurance coverage to protect them. From the year 2030, the Indonesian population will, collectively, be an aging one. The need to begin post-retirement planning of the informal workforce is therefore urgent. The Indonesian government passed a law (No.40/2004) on on social security, but fulfilling the aim of universal pension scheme coverage remains distant. The International Labor Organization (ILO) has identified micro-insurance schemes as a viable solution for workers not covered by state social security.

A number of pilot micro-insurance projects have been undertaken by private insurance companies in Indonesia already. Although promising, challenges to expanding these projects remain. On the supply side, the highly dispersed distribution of informal workers creates economy of scale barriers for insurance companies in marketing products and providing services. Meanwhile, informal workers are often wary of insurance, put off by issues of trust, affordability or non comprehension.

However, mobilizing social networks can overcome the supply side issues, while improving financial literacy of the informal sector can help reduce perceptions of product complexity. Overcoming these barriers will require a coordinated approach
involving insurance companies, central and local governments,
industry associations, and the local social organizations.

Books by Sigit Wibowo

Most areas in Indonesia are prone to natural disasters. After the Aceh Tsunami in 2004, various o... more Most areas in Indonesia are prone to natural disasters. After the Aceh Tsunami in 2004, various organizations in Indonesia became interested in disaster management. The disaster management cycle consists of four stages, namely mitigation, preparedness, response and rehabilitation. One of the critical success factors in a successful disaster management is effective logistics management. The objective of relief logistics is to rapidly provide the appropriate emergency supplies to the affected people and to minimize human suffering and deaths. Logistics is very important because it accounts for 80 % of the relief operational costs. In order to quickly respond to a disaster, organization, such as governmental ministries and agencies, Non-Governmental Organizations (NGOs) and the Indonesia Red Cross have already setup their own relief logistics network of facilities. This research is concerned with analyzing the existing relief logistics network owned by the aforementioned organizations and the development of models to design relief logistics network for a country as geographically disperse as Indonesia archipelago during the response stage. The models are applied to analyze relief logistics network owned by the Ministry of Social Welfare during the 2007 Jakarta flood.

This study investigates the productivity in forty state universities over the period 2001 to 2005... more This study investigates the productivity in forty state universities over the period 2001 to 2005 using a non-parametric frontier approach, data envelopment analysis (DEA) Malmquist methodology. The output included in the analysis is the ratio of the number of undergraduate completions to the number of student entered the university, while the inputs consist of ratio of lecturer per student; ratio of the number of text book collection per student; and the ratio of class room area per students. The resulting Malmquist Total Factor Productivity (TFP) index is then decomposed to consider changes in technical efficiency and technological components. The results indicate that the annual productivity decline averaged 11 per cent, and mostly due to technological regression of 5.4 per cent. However, in overall, these universities had increased their managerial efficiency by 4.5 per cent during the observation periods. This study also found that twenty out of forty universities experienced productivity growth; eighteen universities operated in declining productivity, the rest of the universities had a constant productivity performance. Finally, using Pearson’s correlation, we found that TFP change was not related to the size and age of the universities.

SSRN Electronic Journal, 2000

Bulletin of Indonesian Economic Studies, 2015

SSRN Electronic Journal, 2000

apiems.net

Abstract–Indonesia has been stricken by so many disasters in the last decade. To name a few of th... more Abstract–Indonesia has been stricken by so many disasters in the last decade. To name a few of the major disasters that happened in Indonesia are the Tsunami in Aceh in 2004, earthquake in Yogyakarta in 2006 and the recent earthquakes in southern Java and ...

Value-at-Risk (VaR) is the most popular tool for risk measurement in ban- king and finance indust... more Value-at-Risk (VaR) is the most popular tool for risk measurement in ban- king and finance industry today. The study estimates the volatility for mar- ket risk measurement to calculate diversified VaR. Using Multivariate GARCH BEKK proposed by Engle and Kroner (1993) and variance-covariance matrix methods, this paper compares both methods in generating volatility forecast to estimate diversified VaR particularly for market risk. The paper examines three exchange rates: GBP/USD, USD/JPY, and USD/SGD, from the period of 2000 to 2005. The empirical result shows that GARCH BEKK model performs better, though has more sophisticated specification, than variance-covariance matrix method in estimating the volatility. The estimation results are as follows: VaR estimation generated by GARCH BEKK is 0.1388% which leads to capital charge of 5.2063%; while estimation generated by variance-covariance matrix is 0.1982% which leads to capital charge of 7.433%. The results also show that the volatility changes significantly every 125 observations or at least once in three months. This concludes that volatility forecast should be evaluated at least every three months.

Credit loan is very essential for household economies which is mainly used for consumption smooth... more Credit loan is very essential for household economies which is mainly used for consumption smoothing to cope with income changes or other shocks. Households who are marginalised from financial systems find themselves have limited or no access to financial services to get credit loans. In understanding the different category of credit rationing, I use A2F survey data which covers adequate information about Indonesian households' financial behaviour. This nationwide survey carefully select households in order to ensure representativeness by using multistage random sampling based. Using DEM method as proposed by Boucher et al. (2009), I classify households according to their status towards credit market. The classification between constrained and unconstrained households is based on the loan supply and households' demand for loans. Using DEM approach, the classification can be brought into operational concept in household survey such as A2F survey. The effects of the constraints are investigated further by estimating the welfare loss. The results show that the credit constraints have negative impact where welfare costs occur between Rp. 6 millions and Rp. 24.5 millions in terms of annual household income.

This study investigates the productivity in forty state universities over the period 2001 to 2005... more This study investigates the productivity in forty state universities over the period 2001 to 2005 using a non-parametric frontier approach, data envelopment analysis (DEA) Malmquist methodology. The output included in the analysis is the ratio of the number of undergraduate completions to the number of student entered the university, while the inputs consist of ratio of lecturer per student; ratio of the number of text book collection per student; and the ratio of class room area per students. The resulting Malmquist Total Factor Productivity (TFP) index is then decomposed to consider changes in technical efficiency and technological components. The results indicate that the annual productivity decline averaged 11 per cent, and mostly due to technological regression of 5.4 per cent. However, in overall, these universities had increased their managerial efficiency by 4.5 per cent during the observation periods. This study also found that twenty out of forty universities experienced productivity growth; eighteen universities operated in declining productivity, the rest of the universities had a constant productivity performance. Finally, using Pearson's correlation, we found that TFP change was not related to the size, age, and location of the universities.

This paper aims to introduce an alternative way to benchmark the efficiency of 30 Indonesian coop... more This paper aims to introduce an alternative way to benchmark the efficiency of 30 Indonesian cooperatives at the provincial level from 2000 to 2007. A balanced panel data was used to determine the total factor productivity (TFP) and identify the main drivers to technical efficiency. A stochastic frontier analysis (SFA) was used to determine the influence of environmental variable such locations to technical efficiency of the cooperatives. Furthermore, based on this specification the efficiency frontiers are computed using data envelopment analysis (DEA). The efficiency of each cooperative was then ranked and compared to check for consistency. The study found that on average, cooperatives are 19.4 percent away from the production frontier. The panel data allows for the calculation of productivity change based on Malmquist index. Results found that on average, TFP increased by 8 percent during the observation periods which driven much by 13.6 percent increased in innovation.

Indonesia is considered as a disaster-prone country. Many disasters, natural or man-made disaster... more Indonesia is considered as a disaster-prone country. Many disasters, natural or man-made disasters, have occurred in Indonesia in the recent years, such as the earthquakes in West Java and West Sumatra provinces in 2009. Besides earthquake, many areas in Indonesia also hit by Tsunami, landslide, flood, forest fire and drought.

Disaster management involves plans, structures, and arrangements established to engage the normal endeavors of governments, voluntary and private agencies in a comprehensive and coordinated way to respond to the whole spectrum of emergency needs. The disaster management cycle consists of four stages, namely mitigation, preparedness, response and rehabilitation. Effective logistics management is one of the critical success factors in disaster management.

Relief (humanitarian) logistics aims at rapidly providing the appropriate emergency supplies to disaster survivors and at minimizing human suffering and death. Logistics plays an important role in disaster management because it accounts for eighty percent of the relief operations.

This research is concerned with a survey to understand the disaster survivors' perspectives on relief logistics activities and to study the relief logistics networks of parties involved in disaster relief operations in Indonesia, such as The National Agency for Disaster Management (BNPB), Ministry of Health, Ministry of Social, the Indonesian Red Cross (PMI), and Non-governmental Organizations (NGOs). Based on the result of the survey, we determine the critical success factors of relief logistics activities in Indonesia.

The Indonesian workforce is dominated by workers in the informal sector, complicating the task of... more The Indonesian workforce is dominated by workers in the informal sector, complicating the task of providing social security to workers nation-wide. The vast majority of these people have neither a plan to fund their retirement, nor income, health or life insurance coverage to protect them. From the year 2030, the Indonesian population will, collectively, be an aging one. The need to begin post-retirement planning of the informal workforce is therefore urgent. The Indonesian government passed a law (No.40/2004) on on social security, but fulfilling the aim of universal pension scheme coverage remains distant. The International Labor Organization (ILO) has identified micro-insurance schemes as a viable solution for workers not covered by state social security.

A number of pilot micro-insurance projects have been undertaken by private insurance companies in Indonesia already. Although promising, challenges to expanding these projects remain. On the supply side, the highly dispersed distribution of informal workers creates economy of scale barriers for insurance companies in marketing products and providing services. Meanwhile, informal workers are often wary of insurance, put off by issues of trust, affordability or non comprehension.

However, mobilizing social networks can overcome the supply side issues, while improving financial literacy of the informal sector can help reduce perceptions of product complexity. Overcoming these barriers will require a coordinated approach
involving insurance companies, central and local governments,
industry associations, and the local social organizations.

Most areas in Indonesia are prone to natural disasters. After the Aceh Tsunami in 2004, various o... more Most areas in Indonesia are prone to natural disasters. After the Aceh Tsunami in 2004, various organizations in Indonesia became interested in disaster management. The disaster management cycle consists of four stages, namely mitigation, preparedness, response and rehabilitation. One of the critical success factors in a successful disaster management is effective logistics management. The objective of relief logistics is to rapidly provide the appropriate emergency supplies to the affected people and to minimize human suffering and deaths. Logistics is very important because it accounts for 80 % of the relief operational costs. In order to quickly respond to a disaster, organization, such as governmental ministries and agencies, Non-Governmental Organizations (NGOs) and the Indonesia Red Cross have already setup their own relief logistics network of facilities. This research is concerned with analyzing the existing relief logistics network owned by the aforementioned organizations and the development of models to design relief logistics network for a country as geographically disperse as Indonesia archipelago during the response stage. The models are applied to analyze relief logistics network owned by the Ministry of Social Welfare during the 2007 Jakarta flood.

This study investigates the productivity in forty state universities over the period 2001 to 2005... more This study investigates the productivity in forty state universities over the period 2001 to 2005 using a non-parametric frontier approach, data envelopment analysis (DEA) Malmquist methodology. The output included in the analysis is the ratio of the number of undergraduate completions to the number of student entered the university, while the inputs consist of ratio of lecturer per student; ratio of the number of text book collection per student; and the ratio of class room area per students. The resulting Malmquist Total Factor Productivity (TFP) index is then decomposed to consider changes in technical efficiency and technological components. The results indicate that the annual productivity decline averaged 11 per cent, and mostly due to technological regression of 5.4 per cent. However, in overall, these universities had increased their managerial efficiency by 4.5 per cent during the observation periods. This study also found that twenty out of forty universities experienced productivity growth; eighteen universities operated in declining productivity, the rest of the universities had a constant productivity performance. Finally, using Pearson’s correlation, we found that TFP change was not related to the size and age of the universities.