American Journal of Economic and Management Business (AJEMB)

The Effect of Digital Payments on Currency in Circulation Mediated by Digital Financial Inclusion

Dian Nofitri, Hakiman Thamrin — Wed, 07 Oct 2026 00:00:00 +0000

The rapid growth of digital payment systems has transformed Indonesia’s payment behavior; however, currency in circulation remains substantial despite the increasing adoption of cashless instruments. This study aims to examine the effect of digital payments, represented by Quick Response Code Indonesian Standard (QRIS), electronic money, and card-based payment instruments (APMK), on currency in circulation, both directly and indirectly through Digital Financial Inclusion as a mediating variable. This study employs a quantitative approach with a causal associative design using monthly time-series data from January 2020 to December 2025, consisting of 72 observations obtained from Bank Indonesia publications. The data were analyzed using the Autoregressive Distributed Lag (ARDL) model, Error Correction Model (ECM), and Sobel test to evaluate short-term, long-term, and mediation relationships. The results indicate that QRIS and electronic money significantly strengthen Digital Financial Inclusion in the long term, while APMK has a weaker contribution. However, Digital Financial Inclusion does not significantly mediate the relationship between digital payment instruments and currency in circulation. Electronic money shows a positive and significant long-term effect on currency circulation, indicating that digital payments have not replaced cash but continue to coexist within the payment ecosystem. The study concludes that Indonesia remains in a complementary cashless society phase, where digital payment development advances alongside the continued role of physical currency.

Indonesia’s Central Government Tax Revenue Dynamics Before and Since 2022: Growth, Composition, and the Tax-to-GDP Ratio

Heidy Pesik, Herman Karamoy, Heince Wokas, Robert Lambey — Fri, 23 Oct 2026 00:00:00 +0000

This study examined whether the growth in Indonesia's central government tax revenue since 2022 was accompanied by sustained improvements relative to nominal gross domestic product (GDP) and whether revenue increases were broadly distributed across tax categories. A quantitative descriptive-comparative approach was employed using official annual tax revenue and current-price GDP data for 2010–2025. The analysis compared three periods: the pre-pandemic baseline (2010–2019), the pandemic and initial recovery period (2020–2021), and the post-2021 period (2022–2025). The analytical indicators included annual revenue growth, tax-to-GDP ratios, tax category shares, descriptive tax buoyancy, and additive contributions to revenue growth. Endpoint and alternative-coverage sensitivity analyses were conducted to assess the robustness of the findings. Tax revenue increased by 31.44% in 2022, exceeding nominal GDP growth of 15.38%, with income tax contributing 19.48 percentage points to overall revenue growth. The tax-to-GDP ratio recovered from 8.32% in 2020 to 10.39% in 2022 but subsequently declined to 10.02% in 2025. The average ratio for 2022–2025 was 10.29%, remaining below the 2010–2019 average of 10.62%. Between 2022 and 2025, tax revenue increased by 17.34%, while nominal GDP expanded by 21.61%. In 2025, income tax and excise revenues declined despite an increase in aggregate tax revenue. The reported Other Taxes category contributed 4.06 percentage points to overall revenue growth of 3.35%, whereas excluding this category resulted in an alternative-coverage growth rate of ?0.71%. These descriptive findings did not establish causal relationships between specific tax reforms and revenue performance. Instead, they highlighted the importance of reconciling tax component classifications and evaluating fiscal performance through aggregate revenue growth, revenue composition, and tax collection relative to GDP.

The Influence of Experiential Marketing, Event Quality, and Social Media Engagement on the Loyalty of Prambanan Jazz Festival Visitors Through Satisfaction as a Mediation Variable

Siti Aulia Fadirah, Titik Kusmantini, Widhy Tri Astuti — Wed, 07 Oct 2026 00:00:00 +0000

The rapid growth of music festivals in Indonesia has transformed live events into experience-based industries where visitor loyalty becomes essential for long-term sustainability. Prambanan Jazz Festival, as a cultural music festival held at the Prambanan Temple complex, faces the challenge of maintaining visitor loyalty beyond temporary attraction from performers and social media trends. Experiential marketing, event quality, and social media engagement are considered important factors that shape visitor satisfaction and loyalty. This study aims to examine the effects of experiential marketing, event quality, and social media engagement on visitor loyalty at Prambanan Jazz Festival, with visitor satisfaction as a mediating variable. This research employed a quantitative approach with an explanatory design. Data were collected through online questionnaires from 180 visitors who had attended Prambanan Jazz Festival at least twice during 2024–2025. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings indicate that experiential marketing, event quality, and social media engagement significantly and positively affect visitor loyalty and satisfaction. Visitor satisfaction also significantly influences loyalty and partially mediates the relationships between the three independent variables and visitor loyalty. Social media engagement showed the strongest direct effect on loyalty, while event quality had the strongest effect on satisfaction. Visitor loyalty at Prambanan Jazz Festival is shaped by experiential, operational, and digital factors. Strengthening event quality, creating memorable experiences, and enhancing social media interaction are important strategies for sustaining visitor satisfaction and loyalty.

The Effect of Career Path on Employee Performance through Sustainable Leadership and Work Engagement as Mediating Variables among Employees of Contact Center PLN 123 Site Jakarta

Desi Prihastutik, Parwoto Parwoto — Wed, 14 Oct 2026 00:00:00 +0000

Declining employee performance in demanding contact center environments underscores the importance of structured career development and supportive leadership practices. This study examined the relationship between career paths and employee performance, with sustainable leadership and work engagement serving as individual and serial mediators among employees at Contact Center PLN 123 Site Jakarta. A quantitative explanatory research design employing a cross-sectional survey was adopted. A total of 160 customer service officers were selected from a population of 194 employees using purposive sampling. Data were collected through a 37-item questionnaire using a five-point Likert scale and analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4 and 5,000 bootstrap resamples. All 11 hypotheses were supported, demonstrating positive and statistically significant direct and indirect relationships. Career paths exhibited a positive and significant direct relationship with employee performance (? = 0.242, p = 0.002), while work engagement demonstrated the strongest direct relationship with employee performance (? = 0.370, p < 0.001). The serial mediating effect of sustainable leadership and work engagement was statistically significant (? = 0.112, p < 0.001), indicating complementary partial mediation. The model explained 66.1% of the variance in employee performance. These findings were consistent with the motivational process proposed by the Job Demands–Resources (JD-R) model, highlighting the importance of career development, sustainable leadership, and work engagement in enhancing employee performance. Integrating transparent career advancement pathways, sustainable leadership practices, and employee engagement initiatives may provide an effective strategy for improving employee performance and service quality in contact center environments.

Analysis of the Factors Causing Damage to Public Street Lighting Lights in Binjai City, North Sumatra Province

Dasar Martinus Sembiring, Abdi Sugiarto, Feby Milanie — Fri, 23 Oct 2026 00:00:00 +0000

Public street lighting (Penerangan Jalan Umum, PJU) is essential infrastructure that supports public safety, security, and economic activities in Binjai City, North Sumatra Province, Indonesia. However, numerous streetlights have experienced operational failures, including complete outages and reduced illumination, compromising the quality of public services. This study aimed to identify the factors contributing to public street lighting failures, determine the most significant causes, and propose preventive measures to improve system reliability. A descriptive qualitative approach was employed, with data collected through direct field observations, in-depth interviews with representatives of the Housing and Settlement Areas Office, technical maintenance personnel, and local residents, as well as document reviews. Data were analyzed through data reduction, data display, and conclusion drawing. The findings indicated that street lighting failures resulted from a combination of technical factors, including component aging and inadequate material quality; environmental factors, such as extreme weather conditions and vegetation interference; budgetary constraints; and external factors, including vandalism and theft. Inadequate preventive maintenance emerged as the most significant contributing factor, characterized by the absence of a regular maintenance schedule and a predominantly reactive repair system dependent on public complaints. Recommended measures included establishing a scheduled preventive maintenance program, implementing technology-based monitoring systems, using components that meet applicable technical standards, increasing maintenance budget allocations, and strengthening community participation in protecting public lighting infrastructure. These measures were expected to improve the reliability, operational efficiency, and sustainability of public street lighting services in Binjai City.

Digital Payments, Monetary Conditions, and Household Consumption: Evidence from Indonesia

Tria Widiawati, Hakiman Thamrin — Wed, 14 Oct 2026 00:00:00 +0000

The rapid expansion of digital payments in Indonesia has generated growing interest in understanding how payment digitalization and monetary conditions are associated with household consumption. This study aims to examine the short- and long-run relationships among Quick Response Code Indonesian Standard (QRIS) transactions, inflation, Bank Indonesia's policy interest rate (BI-Rate), the velocity of money, and household consumption. A quantitative approach was employed using 48 monthly observations from January 2022 to December 2025, obtained from Bank Indonesia and Statistics Indonesia (BPS). Annual household consumption and nominal gross domestic product (GDP) data were disaggregated into monthly series using the Denton temporal disaggregation method. The data were analyzed using an autoregressive distributed lag (ARDL) model, bounds testing, and an error correction model (ECM) in EViews. The results indicate that QRIS transactions and the velocity of money exhibit positive and statistically significant relationships with household consumption in both the short and long run. Inflation exhibits a positive and statistically significant long-run relationship but is not statistically significant in the short run. The BI-Rate is not statistically significant in the long run, although positive relationships are observed at specific short-run lags. The bounds test supports the existence of a cointegrating relationship, with an estimated speed of adjustment of approximately 22.2% per month. These findings suggest that payment digitalization and the velocity of money are consistently associated with household consumption, whereas the relationships between monetary conditions and consumption vary across time horizons. The study highlights the importance of coordinating digital payment development with monetary policies aimed at sustaining household purchasing power.

Financial Leverage and Stock-Price Volatility in an Emerging Market: Evidence from Indonesian Consumer Non-Cyclicals

Fri, 23 Oct 2026 00:00:00 +0000

Consumer non-cyclicals are often considered defensive investments; however, differences in capital structure may expose their stocks to substantial price volatility. This study examined the relationships between profitability, financial leverage, firm size, and stock-price volatility among Indonesian consumer non-cyclical firms from 2022 to 2024. A quantitative observational research design was employed using a balanced panel of 30 firms, comprising 90 firm-year observations. Stock-price volatility was measured using the natural logarithm of Parkinson's range-based variance estimator, calculated from annual high and low stock prices. A random-effects panel regression model incorporated year fixed effects and firm-clustered standard errors, supplemented by robustness checks involving a logarithmic transformation of leverage, a price-source subsample analysis, and the exclusion of highly leveraged observations. Financial leverage was positively and significantly associated with stock-price volatility (coefficient = 0.2427; p = 0.002), whereas profitability exhibited no statistically significant association (p = 0.499). Firm size demonstrated a negative association that was marginally significant at the 10% significance level (p = 0.062). The positive association between financial leverage and stock-price volatility remained robust following the logarithmic transformation and within the subsample using issuer-linked price sources. However, this association became statistically insignificant after excluding observations with debt-to-equity ratios exceeding 3 (p = 0.771). These findings suggest that the estimated average association was substantially influenced by highly leveraged observations, consistent with the proposition that debt financing may amplify equity risk. The study concludes that financial leverage may serve as a useful indicator for investment screening within traditionally defensive sectors, particularly among highly indebted firms. Nevertheless, the observational nature of the evidence does not establish a causal relationship or identify a statistically validated leverage threshold.

Revitalization of the Historical Values of the Langkat Sultanate in the Development of Culture-Based Tourism (Cultural Tourism) in Tanjung Pura District, Langkat Regency

Zulkifli Zulkifli, Abdiyanto Abdiyanto, Abdi Sugiarto — Fri, 23 Oct 2026 00:00:00 +0000

This study aimed to analyze strategies for revitalizing the historical and cultural heritage of the Langkat Sultanate to support the development of cultural tourism in Tanjung Pura District, Langkat Regency, Indonesia. Employing a descriptive qualitative approach, the research examined existing conditions, tourism potential, development constraints, and stakeholder involvement through field observations, interviews, and document analysis. The findings indicated that Tanjung Pura District possessed substantial tangible and intangible cultural heritage resources. Tangible heritage included the Azizi Mosque and the royal tomb complex, while intangible heritage encompassed Malay customs, traditions, and cultural practices that remained part of local community life. However, these heritage resources had not been optimally managed for tourism development because of several challenges, including the physical deterioration of historical sites, limited cultural awareness among younger generations, inadequate tourism promotion, and insufficient supporting infrastructure. Furthermore, coordination among government institutions, local communities, and private sector stakeholders remained fragmented, limiting the effectiveness of heritage tourism management. Accordingly, the study proposed an integrated revitalization strategy encompassing the conservation of historical buildings, safeguarding and promotion of intangible cultural heritage, development of innovative cultural tourism packages, improvement of tourism accessibility and supporting facilities, and empowerment of local communities through the establishment of Tourism Awareness Groups (Kelompok Sadar Wisata, Pokdarwis). The analysis further demonstrated how the deterioration of tangible heritage assets, insufficient promotion of Malay cultural traditions, and weak stakeholder coordination collectively constrained tourism development despite the area's considerable historical and cultural resources. These findings emphasized the importance of integrated heritage conservation, community participation, and collaborative tourism governance in promoting sustainable cultural tourism grounded in local cultural values.