Indonesian Economics

Indonesia’s financial sector is highly dominated by the banking industry than the non-bank. It controlled almost 74% of Indonesia’s financial assets in 2014. After post-crisis restructuration, the banking sector has become stronger, with a higher capital adequacy ratio and profitability. While, the non-bank financial industry is expected to solve the problems in the Indonesian economy, as well as becoming one of the long-term economic instruments. The purpose of this study is to test and analyse the effect of financial performance and the implementation of corporate governance on the non-bank financial industry stock prices on the Indonesia Stock Exchange in 2012-1016. The research population includes the non-bank financial industry listed in IDX, as many as 37 companies. This study found the probability, managerial ownership, institutional ownership and the composition of the independent commissioner partially and simultaneously does not significantly influence the stock price of the non-bank financial industry.

This study aims to analyze whether economic growth in Indonesia is driven by physical or human c apital using panel data analysis consisting of all provinces over the last nine years. The estimation result s sho w that the Indonesian economy is more likely to be driven by physical than human capital. The formatio n o f human capital that has a significant positive effect on economic growth is health. However, the educ at ion variable represented by the mean years schooling has no significant ef fec t o n ec on omic growt h when including the control variable in the research model. To improve the quality of education, the state requires the government to provide substantial educational spending. However, the budget has no t been used optimally so that the expected achievements of graduates are not achieved. In addit ion, educ at ion spending has not met the criteria for quality spending. In contrast to education spending, an i nc rease i n health spending will increase economic growth by improving the quality of health and life expec tanc y. A healthier society will have a high level of productivity that impacts the regional and national economy.