Sudarso Kaderi Wiryono

Factors influencing the price of housing in Indonesia

Purpose - – This study aims to address the factors or attributes that would influence the price of residential products in Jakarta Metropolitan Region. Design/methodology/approach - – In total, 202 respondents from all across Jakarta Metropolitan Region participated in the questionnaire for this study. Demographic questions are categorized into age, gender and preferences for real estate locations. The questionnaire was made based on the author’s previous studies. Of the total respondents, 127 were males and 75 were females with age ranging from 18 to 56 years old. For data analysis, the authors utilized factor analysis, Cronbach’ a test and analysis of correlation to reach the conclusion of this study. Findings - – The findings suggested that from the initial three factors groups, there are five new groups that emerge as influencing factors for housing prices. Cronbach’ a score were verified (a = 0.906). Correlation study result suggested that the initial three factors groups produce a significant correlation between each of them, except for the factor of “overall location” and “located near family.” After factor analysis, the research results show that there are two new additional groups of factors that emerge as influences to housing prices. There are significant scores of differences between gender and real estate location preference toward the groups of factors. Research limitations/implications - – This study shows how physical qualities, concept and location factors influence the housing price perception of their consumers. The result shows to be relatively reliable and valid. Originality/value - – The study is the first to analyze the relationship between the factors for preferences on residential products and housing price in Indonesia. This paper is also intended to be the first to pioneer the study on factors of preferences on residential products in Indonesia. The findings will be useful to develop pricing models for housing product in Indonesia.

Exploring implicit and explicit attitude toward saving at Islamic bank

Purpose – The purpose of this paper is to explore the implicit and explicit attitude toward Islamic bank and how it influences desire to saving at an Islamic bank. Although the Islamic bank system has been experiencing rocket growth worldwide, but the development in Indonesia is still unsatisfying. The penetration is very low compared to the conventional bank system. Consumer attitude is one of the most important variables that need to be understood to develop effective intervention. Although extensive research has been carried out on consumer attitude in the Islamic bank context, no single study adequately elaborates on implicit attitude. Design/methodology/approach – A sample of 423 respondents was taken to represent the middle-class employee segment. A set of questionnaires consisting of four sections was administered to respondents. The first section is a paper-based implicit attitude test, which collected data using a face-to-face interview, and the rest was self-reported. Data were analyzed using de...

Comparison of the property practitioners and consumer preferences on housing prices in the Jakarta metropolitan region

Purpose - – The purpose of this paper is to compare the different preferences between property practitioners and residential consumers on housing prices in the Jakarta Metropolitan Region. Design/methodology/approach - – The Jakarta Metropolitan Region as the largest metropolitan city in Indonesia was selected as the main sample city for this study. This study comprises 134 respondents from property practitioners and 277 respondents from residential consumers. Data were collected from all regions in Jakarta Metropolitan Region and their respective satellite cities. Descriptive analysis, the correlation study, Wilcoxon Findings - – The results of this research provide an analysis on the different decisive attributes for each group, disparities on the correlation between attributes in housing consumers and property practitioners and disagreements among each group on the attribute preferences influencing housing prices in the Jakarta Metropolitan Region. Research limitations/implications - – In conclusion, the study provides valid and dependable evidence on different consumers and property practitioners attribute preferences for housing products in the Jakarta Metropolitan Region. Originality/value - – This research is the first to compare the attribute preferences for housing products between housing consumers and property practitioners in Indonesia. In addition, this study is one of the first to reaffirm preference attributes influencing housing product prices in Indonesia.

Measuring Islamic Business Ethics Within Indonesia Islamic Banks

The business characteristic of Islamic banks is the implementation of Islamic business ethics. Parallel with the trend of increasing preference to ethical institution, Islamic banks should put this as its competitive edge toward its competitor conventional competitor banks. However, only few previous studies discussed about the implementation of Islamic business ethics within Islamic banks and none suggested how to measure such implementation. This paper is a study of the literature on ethics and Islamic business ethics as the first step in developing a measurement tool of Islamic business ethics implementation within Islamic banks. This paper synthesizes the dimensions of Islamic business ethics that is excavated from the Quran and Sunna, being proposed by previous studies. There are seven dimensions, namely unity of God, benevolence, justice and equity, sincere, equilibrium, trusteeship and responsibility. Subsequently, this paper outlines these dimensions into 21 items. The opportunity of future empirical study is recommended at the end of this paper.

Asset Allocation Strategy under Rate of Return, Rate of Inflation and Credit Spread Rate in Finite-Time Horizon

The global financial crisis has given a very tremendous financial market chaos in the world. Beside the reason that it caused mostly by the bubble economic, it also caused by the ignorance of default risk from bond derivatives such as CDO, CDS and SWAP. Those portfolio of bond ignored the risk of the low rating bonds, which gives a very high risk of having default. This research aims to find an optimal solution for dynamic portfolio in finite-time horizon under defaultable assets. Defaultable assets mean that the assets has a chance to be liquidated in a finite time horizon, e.g stock and corporate bond. The assets that will be used here are limited to the equity, corporate bond and money account. In this study, beside for having the risk of default, the investor will also consider the risk of market such as inflation into her investment. The indirect utility function will be used as the reference for investment decision. Further the asset allocation will be obtained by maximizing the total expected discounted utility in the time span during the investment is executed.To determine the financial defaulty assets, there are two methods that can be used, namely the reduced form and the structural methods. The first method is more applicable because the assets price can be linked with the market risk and credit risk and the latter method. The interest rate and the rate of inflation will be allowed as a representation of market risk, while the credit spread will be used as a representation of credit risk. Furthermore, the dynamic of asset prices can be derived analytically by using Ito Calculus in the form of the movement of the three risk factors above.The dynamic process of investor wealth will be derived from the dynamics of asset prices and budget constraints, which will be linked with portfolio composition. This problem will be solved using the stochastic dynamic programming method. Depending on the chosen utility function, the optimal solution of the portfolio composition can be found explicitly in the form of feedback control. The closed form solution will give the proportion of wealth between bond and money account. Furthermore, the composition of the portfolio will be given as the result. The complicated equation of bond pricing will follow recovery market value (RMV) methods. The finding model is later simulated with different possible values of the parameters. The result shows that the optimal asset allocation will depend on various parameters such as correlation between the risks, the chosen utility function and also recovery rate.

The efficacy of the model of goal directed behavior in explaining Islamic bank saving

Purpose The purpose of this paper is to test the efficacy of model of goal-directed behavior (MGB) to explain and predict savings at Islamic bank behavior. The importance of understanding consumer intention to develop good strategy to accelerate consumer saving at Islamic bank is inevitable. One of the most popular theories explaining behavioral intention was the MGB. Although it has been validated and tested in a variety of contexts, this theory has never been applied in behavior related to Islamic banks. Design/methodology/approach The present study used a combination of qualitative and quantitative data. Qualitative data obtained from 31 in-depth interviews were used to develop behavioral beliefs components and a control beliefs component, while quantitative data obtained from a survey of 316 respondents were used to test the model. Structural equation modeling was the main data analysis technique. Findings The result shows that MGB has good indicators of fit, which implies that it can be used to explain and predict intention to save at Islamic bank. This research also reveals several behavioral and control beliefs that positively contribute to intention. Originality/value This paper contributes to behavior prediction literature by exploring the possibility of the application of the MGB in the Islamic bank context. It also gives a deeper understanding of the Indonesian Islamic bank consumer market that has great potential for development in the future.

Optimal portfolio in discrete-time under HARA utility function

In this study we are going to discuss about optimal dynamic portfolio strategy given the new information of the market to the investor. The objective is to find the optimal strategy that maximizes the expected total hyperbolic absolute risk aversion (HARA)-utility of investor weight portfolio over finite life time. There are two assets that take place in to the dynamic portfolio model, risky asset and risk-free bond with constant interest rate. The underlying stock price is obtained under binomial process of Markov chain approximation of diffusion process. The stochastic dynamic programming is used as the approach to solve the problem. In contrast to the continuous-time counterpart, the optimal trading strategies are found to be time-dependent in recursive manners. Sufficient conditions for short selling are given in terms of physical and martingale probabilities of the stock price.